FY 2006-07 AGRICULTURE BUDGET S.B. 1080 (CR-1): CONFERENCE REPORT







Amount Over/(Under) GF/GP Target: $ 0
FY 2005-06 Year-to-Date Gross Appropriation $121,052,400
Changes from FY 2005-06 Year-to-Date:
  Items Included by the House and Senate
1. Economic Adjustments. Included standard economic adjustments. 2,545,200
2. Equine Industry Survey. Both House and Senate included Equine Fund revenue for an equine industry survey. 50,000
3. Fruit and Vegetable Inspections. Both House and Senate included additional GF/GP funds for seasonal fruit and vegetable inspections. 300,000
4. Other Changes. Reduction in Federal funds for emerald ash borer ($10.0 million), administrative savings of $100,000, statistical report service reduction ($35,000), HR optimization reduction ($72,400); Conservation Reserve Enhancement Program GF/GP increase ($350,000); funds for horse racing audits ($240,000), migrant labor housing inspections ($150,000), emergency management ($57,600); a shift of Restricted to GF/GP funding for food and dairy; a shift of $40,000 from GF/GP to Restricted in Agriculture Development and a funding adjustment reduction of $453,600. A reduction adjustment of $1,874,000 is also made to reflect FY 2005-06 supplemental appropriations from P.A. 153 of 2006. (11,737,800)
Conference Agreement on Items of Difference
5. Export Market. House added $450,000 GF/GP for export marketing. Not included by the Conference Committee. 0
6. Local Conservation Grants. House added $83,200 GF/GP over current year ($159,000 over Governor), Senate maintained current year funding level ($75,800 over Governor). The Conference Committee concurred with the Senate. 0
7. Racing Commissioner. House added $100,000 in Equine Fund revenue. Not included. 0
8. Diesel Fuel Inspections. House created line with $100 GF/GP funding. Not included. 0
9. Agriculture Development. House added GF/GP funding of $500,000. Not included. 0
10. Animal Health and Welfare. House added $250,000 GF/GP. Not included. 0
11. Bovine TB. House added $100,000 GF/GP. Not included. 0
12. Food Safety and Quality Assurance. House added $1.0 Million GF/GP. The Conference Committee included $475,000. 475,000
13. Food Safety and Quality Assurance. Senate added $150,000 Federal to reflect supplemental appropriations from P.A. 153 of 2006. The Conference Committee concurred. 150,000
14. Laboratory Services. Senate added $543,000 Federal to reflect supplemental appropriations from P.A. 153 of 2006. The Conference Committee concurred. 543,000
15. Groundwater and Freshwater Protection. Senate added $250,000 to reflect supplemental appropriations from P.A. 153 of 2006. The Conference Committee concurred. 250,000
-------------Total Changes ($7,424,600)
  FY 2006-07 Conference Report Gross Appropriation $113,627,800
FY 2006-07 AGRICULTURE BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2005-06 Year to Date:
  Items Included by the House and Senate
1. Equine Survey. Required survey of equine industry in Michigan. (Sec. 305)
2. Agriculture Development Report. Required annual report of activities and grants of agriculture and export market programs. (Sec. 706)
Conference Agreement on Items of Difference
3. MSU Pavilion. Directed Department, with other interested parties, to work toward the expansion of the Michigan State University Pavilion for Agriculture and Livestock Education. Senate. The Conference Committee concurred. (Sec. 225)
4. Budget Reduction Plan. Requires a proposed GF/GP budget reduction (7.93%) plan by October 15, 2006, as a contingency should the K-16 Ballot Initiative be adopted. Senate. The Conference Committee did not include. (Sec. 226)
5. Return on Investment. Requires a report on the return on investment of each of the Department's programs. Senate. The Conference Committee concurred. (Sec. 227)
6. Motor Fuel Inspections. The Senate added language requiring a report on inspection activities and results. The Conference Committee concurred. (Sec. 304)
7. Food Safety Education. The Conference Committee added language requiring expenditures for consumer and industry food safety education. (Sec. 404)
8. Fruit and Vegetable Inspections. Required $1.0 million to be used for inspections with not less than $600,000 being GF/GP funds. House. The Conference Committee did not include. (Sec. 501)
9. Diversity. Required diversity of agriculture when awarding development grants. House. The Conference Committee concurred. (Sec. 707)
10. Receipt and Expenditure. Allowed receipt and expenditure of funds from Agriculture Development Fund. House. The Conference Committee concurred. (Sec. 708)
11. Grape and Wine Council. Required report. House. The Conference Committee concurred. (Sec. 709)
12. Select Michigan. Required $250,000 for Select Michigan Program and $975,000 to Cherry Marketing Institute. House. The Conference Committee did not include. (Sec. 710)
13. Matching Funds. The Conference Committee added language permitting matching of exterior funds for agriculture marketing. (Sec. 710)
14. Racing Days. Specifies minimum racing days for horse racing. House earmarks $100,000 for this purpose, Senate omits earmarking language. The Conference Committee did not include. (Sec. 902)

Date Completed: 7-17-06 Fiscal Analyst: Bruce Baker Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hiagr_cr.doc