1089: CONFERENCE REPORT (7-12-06) - FY 2006-07 HISTORY, ARTS, AND LIBRARIES BUDGET

FY 2006-07 HISTORY, ARTS, AND LIBRARIES BUDGET S.B. 1089 (CR-1): CONFERENCE REPORT

Amount Over/(Under) GF/GP Target: $ 0

Changes from FY 2005-06 Year-to-Date:
Items Included by the House and Senate
1. Mackinac Island Park Operation. The Governor replaced $200,000 of GF/GP with new fee revenue. The Senate and House retained GF/GP support for the line.	0
2. Film Office. The Governor eliminated GF/GP funding for the office, relying on funding from the appropriation for the Michigan Film Office in the 21st Century Jobs package to operate the office. The House and Senate retained the GF/GP funding and increased the appropriation by $300.	300
3. Economic Adjustments.	982,600
4. Other. Includes fund source adjustments, base adjustment for building occupancy charges, and Department of Information Technology economics adjustments.	29,900
Conference Agreement on Items of Difference
5. Arts and Cultural Grants. The Governor did not continue supplemental funding, reducing grants by $315,900. The Senate reduced funding by $824,500. The House increased funding by $134,100. The Conference Committee funded at Governor.	(315,900)
6. State Aid to Public Libraries. The Governor increased the program by $315,900. The House increased the program by $265,900. The Senate combined cooperative libraries and public libraries in one line, increasing it by $4,457,000. The Conference Committee adopted the Governor's recommendation on funding and combined the cooperative libraries funding into this line item.	315,900
7. State Aid to Cooperative Libraries. The Governor and the House kept the appropriation at current year level. The Senate combined this appropriation into the line for State Aid to public libraries. The Conference Committee funded at the Governor's level and combined the funding into the line for State Aid to Public Libraries as it was in FY 2004-05.	0
8. Book Distribution Centers. The Governor and House continued current year funding. The Senate reduced the program by $20,000. The Conference Committee concurred with the House.	0
Total Changes	1,012,800
FY 2006-07 Conference Report Gross Appropriation	$54,863,700

FY 2006-07 HISTORY, ARTS, AND LIBRARIES BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2005-06 Year to Date:

Items Included by the House and Senate

1. Arts and Cultural Grants - Maximum to Any One Organization. The Governor left the maximum percentage of funding that could go to any one organization at 17.0% and deleted intent language that the percentage be reduced to 16.0% in FY 2006-07 and 15.0% in FY 2007-08. The House and Senate maintained the language, reducing the percentage to 16.0% in FY 2006-07 and including intent language to go to 15.0% in FY 2007-08. (Sec. 403(1))

2. Arts Grants Agreements. The House required the grant agreements to include the prohibitions and sanctions for objectionable displays. The Senate concurred. (Sec. 403(4))

Conference Agreement on Items of Difference

3. Deprived and Depressed Communities. The House deleted and the Senate retained language ensuring that businesses in deprived and depressed communities compete for Department contracts. The Conference Committee adopted the House position. (Sec. 210)

4. Affirmative Action. The House deleted and the Senate retained language that requires the Department to maintain affirmative active. The Conference Committee concurred with the Senate. (Sec. 211)

5. Film Office Intent Language. The Conference Committee added a statement of intent to explore the costs and benefits of marketing the State's film locations through satellite film offices. (Sec. 221)

6. Goals and Performance Standards. The House required the Department to develop goals, outcomes, and quantifiable performance standards for all programs, and a plan of action to achieve those goals. A report on the goals and a subsequent report on success in meeting the goals would be required. The Conference Committee deleted the new section; however, additional performance standards and reporting were added to the sections on Arts Grants. (Sec. 221/Sections 401, 405, and 406)

7. K-16 Ballot Initiative. The Senate included language requiring a report on GF/GP reductions that would reduce expenditures by 7.93% if the K-16 ballot initiative is passed. The Conference Committee did not include. (Sec. 222)

8. Arts and Cultural Grants - Limitations and Penalties. a) Ann Arbor Funding Prohibition. The House prohibited the Ann Arbor Film Festival from receiving funds for two fiscal years beginning October 1, 2006. The Senate did not include. The Conference Committee concurred with the Senate. (Sec. 401(2)(d)) b) Prohibited Displays. The House prohibited grant-funded activities from being displayed in conjunction with an event that includes a prohibited depiction. The Senate offered alternate language to prohibit grant funding from being used to create or promote a specific work that includes a display or depiction for which funding is prohibited. The Conference Committee concurred with the Senate. (Sec. 401(3)) c) Length of Disqualification. The House included a penalty for a violation of requirements on prohibited displays with a five-year disqualification from future grants. The Senate included a three-year disqualification period. The Conference Committee concurred with the Senate. (Sec. 401(6))

9. Multi-cultural Heritage Centers. The House required that at least $800,000 of the total grant amount be distributed for grants to organizations that operate and maintain multicultural heritage centers to support programs or facility maintenance. The Senate did not include the provision. The Conference Committee did not include any funding, but added cultural and ethnic heritage centers as an arts grant program and language that defines these centers, permits the Department to assign priority funding for this category, and permits the Department to extend the application deadline. (Sec. 408)

10. Historical Grants. The House and Senate concurred in the allocation of $100,000 for grants to State and local historical societies. The Conference Committee did not include. (Sec. 508)

11. Michigan History Day. The Senate allocated $5,000 from the line for historical administration and services to support Michigan History Day. The House did not include. The Conference Committee did not include (Sec. 509)

12. Reimbursement for Services. The Senate added language to require the Department of History, Arts, and Libraries (HAL) to reimburse the Michigan Strategic Fund (MSF) for services provided by MSF This mirrors language the Senate included in the MSF budget to require the MSF to reimburse HAL for services provided by HAL at the request of the MSF. The Conference Committee did not include the provision. (Sec. 510)

13. Book Distribution Center. The Senate added intent language allocating $20,000 from the General Fund balance at the end of FY 2005-06 to the book distribution centers. This would restore them to the level of the Governor's recommendation and current year funding. The Conference Committee did not include. (Sec. 608)

Date Completed: 7-12-06 Fiscal Analyst: Elizabeth Pratt and Maria Tyszkiewicz Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hihal_cr.doc