FY 2005-06 JUDICIARY BUDGET S.B. 275 (CR-1): CONFERENCE REPORT







Amount Over/(Under) GF/GP Target: $ 0
Changes from FY 2004-05 Year-to-Date:
  Items Included by the Senate and House
1. Justices' and Judges' Compensation. The budget recognizes a decrease in judgeships that took place in FY 2004-05, increased retirement costs for judges who are part of the defined contribution system, potential increases in social security costs for judges, and the increased costs of statutory changes converting two part-time probate judges to full-time judges in March 2005. 417,600
2. Drug Treatment Courts. Increased state restricted revenues from the 2003 judicial fee increases is used to replace $132,200 in GF/GP funds for drug courts and to increase the total appropriation for the line by $100,000. 100,000
3. Indigent Civil Legal Assistance. The budget recognizes $600,000 additional state restricted funds available from the 2003 judicial fee increases due to increased civil filings. 600,000
4. State Court Administrative Office. The budget recognizes $120,000 additional state restricted funds available from the 2003 judicial fee increases due to increased civil filings. 120,000
5. Federal Grant Reduction. The appropriation is decreased by $2,185,300 due to the elimination of three Federal grants which supported the development of the statewide judicial telecommunications network as well as Work First programs for non-custodial parents through local friend of the court offices. (2,185,300)
6. Court of Appeals Fees. Due to the extended sunset on certain fee increases for the Court of Appeals as well as increased collection of other fee revenue the line is increased by $62,500. 62,500
7. Office Rent/Lease Changes. The budget saves $10,800 in rent and lease changes. (10,800)
Conference Agreement on Items of Difference
8. Trial Court Operations. The Governor proposes using increased state restricted revenues from the 2003 judicial fee increases to replace $2,131,200 in GF/GP funds for Court Equity Fund Reimbursements as well as to increase the total appropriation by $1.5 million. The Conference Committee used the restricted revenue to reduce GF/GP by an additional $1.2 million from the Governor's recommendation. 300,000
9. Contract and Group Insurance Savings. The Conference Committee includes $373,400 in proposed savings from contracts and group insurances. (373,400)
10. FY 2004-05 Employee Concessions. The Governor recognizes the end of employee concessions and proposes restoring $1,496,900 to the base. The Conference Committee reduces this by $800,000. 635,900
Total Changes $2,165,200
  FY 2005-06 Conference Report Gross Appropriation $255,381,900
FY 2005-06 JUDICIARY BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2004-05 Year to Date:
  Items Included by the Senate and House
1. Privatization. The Governor, Senate, and House delete a required privatization plan and evaluation. (Section 207)
2. Personal Service Contracts. The Governor, Senate, and House delete a reporting requirement on personal service contracts awarded without competitive bidding and personal service contracts of $100,000 or more. (Section 211)
3. Buy American. The Governor proposes to eliminate language giving preference to American and Michigan goods and services if competitively priced and of comparable quality. The Senate and House retain it. (Section 214)
4. Contingency Funds. The Governor adds language allowing the transfer of contingency funds of up to $500,000 in Federal funds, $500,000 in State restricted funds, $100,000 in local funds, and $100,000 in private funds. The Senate and House delete this section. (Section 216)
5. Court of Appeals Delay Reduction. The Governor amends this section to delete the reference to fee revenue from fee increases which will statutorily sunset as of September 30, 2005. The Senate and House retain current language in anticipation of an extension of the fee increases. (Section 307)
6. Mental Health Courts. The bill does not include a section requiring that the State Court Administrative Office assist local courts in obtaining Federal funding for mental health courts if it were to become available. (Section 314)
7. Information Technology. The Governor, Senate, and House eliminate language encouraging communication between the Judiciary and Department of Information Technology on information technology activities. (Section 315)
8. Transcript Fee Reimbursement. The Governor deletes language requiring that funds appropriated for transcript fee reimbursement be disbursed to counties to compensate for costs incurred in the event of a statutory increase in court transcript fee maximums. The Senate and House retain this language. (Section 317)
Conference Agreement on Items of Difference
9. Communication with the Legislature. The Conference Committee adds standard language prohibiting the Judiciary from taking disciplinary action against an employee for communicating with a member of the legislature or their staff. (Section 204) 10. Report Retention. The Conference Committee deletes a requirement that the Judiciary follow Federal and State guidelines for retention of reports and records funded from appropriations in part 1. (Section 212)
11. Cooperation with Auditor General. The Conference Committee deletes a requirement that the Judiciary cooperate with the Auditor General regarding audits. (Section 304)
12. Account Status Reports. The Conference Committee deletes quarterly reporting requirements on the status of accounts in order to avoid over-expenditures. (Section 305)
13. Drug Court Evaluation. The Conference Committee moves a drug court evaluation status report date from June 1 to April 1. (Section 310)
14. Judicial Technology Improvement Fund (JTIF). The Conference Committee deletes the section describing appropriate expenditures of funds from the JTIF. (Section 313)

Date Completed: 9-22-05 Fiscal Analyst: Bethany Wicksall Bill Analysis @ http://www.senate.michigan.gov/sfa September 22, 2005 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hijud_cr.doc