AGRICULTURE

Summary:  House Appropriations Committee Substitute

SB 222 (H-1)

FY 2007-08 Appropriations

FY 2007-08

FY 2007-08

FY 2007-08

FY 2007-08

Difference: House

From FY 2006-07 YTD

FY 2006-07 YTD

Executive

Senate

House Sub

Enacted

Amount

%

IDG/IDT

10,367,510

9,390,400

9,390,600

10,390,400

22,890

0.2

Federal

23,542,831

21,990,600

21,115,600

21,240,600

(2,302,231)

(6.8)

Local

0

0

0

0

0

0

Private

183,800

188,500

188,500

188,500

4,700

2.6

Restricted

47,803,959

45,423,700

49,671,800

46,902,400

(901,559)

(1.9)

GF/GP

28,333,900

29,337,400

28,798,200

30,104,200

1,770,300

6.1

Gross

$110,232,000

$106,330,600

$109,164,700

$108,826,100

($1,405,900)

(1.2)

FTEs

696.0

680.0

684.0

680.0

(16.0)

(2.3)

1.        Management Services – House substitute appropriates $100,000 GF/GP less than the Executive recommendation.  (The Senate substitute would appropriate $500,000 less than the Executive.)

FTEs

Gross

Restricted

GF/GP

34.0

$2,647,700

401,300

$2,246,400

(0.0)

($16,900)

17,300

($34,200)

2.      Agricultural Statistics

Current year was reduced by $130,700 GF/GP in EO 2007-3.

Reflects elimination of one-time $50,000 (AEIDF) equine survey.  The House appropriates $100,000 GF/GP more than the Executive recommendation.

FTEs

Gross

Restricted

GF/GP

4.0

$245,300

50,000

$195,300

(3.0)

($69,500) (50,000)

($19,500)

3.      Federal Grants

Executive had proposed a new $1.0 million line for unspecified federal grants which the department may obtain during the fiscal year.  This line is not included in the House substitute; the House does include contingency appropriations in boilerplate Section 228. 

Gross

Federal

$0

0

$0

0

4.      Food Safety and Quality Assurance (Food and Dairy)

House bill reflects economic increases ($486,000 gross, $411,500 GF/GP); end of 5-year sick leave payout ($12,800); and increase in civil penalty revenue ($222,300).  The House bill is $200,000 more than the Executive based on revised estimates of civil penalty revenue.  Unrolls Consumer and industry food safety education revenue as fund source. 

FTEs

Gross

Federal

Restricted

GF/GP

107.0

$11,932,100

388,100

2,735,600

$8,808,400

0.0

$695,500

19,200

277,600

$398,700

5.      Animal Heath and Welfare (Animal Industry)

Current year was reduced by $125,000 GF/GP in EO 2007-3.

House adopts Executive recommendation; reflects $250,000 GF/GP reduction in department baseline aquaculture and captive cervid programs (as compared to budget as originally enacted).  Also reflects $64,600 (gross) of economic adjustments; end of 5-year sick leave payout ($10,600).

FTEs

Gross

Federal

Restricted

GF/GP

22.5

$2,303,400

457,000

163,200

$1,683,200

(3.0)

($71,000)

12,300

2,900

($86,200)

6.      Bovine Tuberculosis (Animal Industry)

Reflects $131,900 (gross) in economic increases; end of 5-year sick leave payout ($1,600).  House retains $215,500 in AEIDF revenue which was not included in the Executive budget.

FTEs

Gross

Federal

Restricted

GF/GP

26.5

$5,577,400

713,200

2,340,900

$2,523,300

0.0

$130,300

17,600

0

$112,700

7.      Viral Hemorrhagic Septicemia Surveillance

House adds a new line item and related boilerplate, Sections 457 and 458.

Gross

GF/GP

$50,000

$50,000

$50,000

$50,000

8.      Pesticide and PlantPest Management (PPPM)

Current year was reduced by $266,000 GF/GP in SB 266, and by $100,000 (restricted) by 5/7/07 transfer to another line item.

House adopts Executive recommendation; reduces GF/GP support by $200,000 and 3 FTE field positions.  Reflects $348,700 (gross) economic increases; end of 5-year sick leave payout ($21,100).

FTEs

Gross

Federal

Private

Restricted

GF/GP

119.8

$13,060,000

3,744,600

143,800

4,567,300

$4,604,300

(3.0)

$493,600

97,600

3,900

221,700

$170,400

9.      Emerald Ash Borer Program

Reflects continuing reduction in federal support for this program.

FTEs

Gross

Federal

112.0

$13,782,000

13,782,000

(0.0)

($3,605,700)

(3,605,700)

10.    Environmental Stewardship

Current year was reduced by $234,700 GF/GP in EO 2007-3.

The Executive budget eliminated support for department intercounty drain activities under the Drain Code of 1956 ($469,300 GF/GP); reflects 50% cut in right-to-farm program ($150,000 GF/GP); anticipated elimination Freshwater Protection Fund funding ($89,900); and $92,400 (Gross) in economic increases; end of 5-year sick leave payout ($28,200).

The House substitute appropriates $150,000 GF/GP more than the Executive to support the intercounty drain program.

FTEs

Gross

IDG

Federal

Restricted

GF/GP

32.7

$2,920,600

262,100

225,700

82,900

$2,349,900

(5.0)

($253,300)

7,700

6,800

(82,900)

($184,900)

11.    Cooperative Resource Management Initiative

The Executive proposed elimination of line to reflect loss of DNR funding from Forest Development Fund.  House retains line and fund source.

Gross

IDG

$1,000,000

1,000,000

 $0

0

12.    Local Conservation Districts

Current year was reduced by $758,400 GF/GP in EO 2007-3.

The Executive had recommended elimination of this GF/GP grant program.

The House appropriates $916,800, $158,400 more than current-year-to-date, $600,000 less than original FY 2006-07 enacted.

Gross

GF/GP

$758,400

$758,400

$158,400

$158,400

13.    Migrant Labor Housing

Recognizes $25,000 from Migrant labor house fund established under 2005 PA 43.  House adds $250,000 (Federal) to recognize additional federal grants the department anticipates receiving.

Gross

Federal

Restricted

GF/GP

$150,100

150,000

0

$100

$275,000

250,000

25,000

$0

14.    Laboratory Services

House adopts Executive recommendation; eliminates $150,000 (GF/GP) from animal feed testing program; economic increases ($173,800 gross); end of 5-year sick leave payout ($2,300).

FTEs

Gross

IDG

Federal

Restricted

GF/GP

62.5

$6,239,900

189,100

916,200

2,107,400

$3,027,200

(2.0)

$21,500

0

0

89,600

(68,100)

15.    Consumer Protection Program

Line item supports motor fuel quality, weights and measures, and metrology laboratory.  Budget recognizes economic increases of $180,100.  House bill agrees with Executive recommendation.

FTEs

Gross

Restricted

GF/GP

67.5

$4,948,600

4,948,600

$0

0.0

$180,100

179,900

$200

16.    Agriculture Development

Current year was reduced by $15,000 GF/GP in EO 2007-3, and increased by $256,000 (restricted and federal) by transfer from other lines.

House bill eliminates $30,000 grant to the NW Michigan Horticulture Station; recognizes additional federal revenue, industry support funds, economic increases ($22,100), and end of 5-year sick leave payout ($2,400).  The Executive had proposed an additional $500,000 GF/GP for Buy Michigan program; House bill adds $150,000, $350,000 GF/GP less than the Executive proposal.

FTEs

Gross

Private

Federal

Restricted

GF/GP

5.0

$1,142,800

40,000

342,500

574,500

$185,800

0.0

$107,400

800

(68,100)

31,200

 $143,500

17.    Future Farmers of America/Michigan 4-H

Executive proposed to eliminate grant funding for FFA ($80,000) andMichigan 4-H, ($20,000), due to anticipated reduction in AEIDF revenue.  The House bill retains the lines.

Gross

Restricted

$100,000

100,000

$0

0

18.    Building and Track Improvement – County and State Fairs

Executive proposed to eliminate line due to anticipated reduction in AEIDF revenue.  The House bill retains the line.

Gross

Restricted

$963,200

963,200

$0

0

19.    Horse Industry Programs

House adopts Executive proposal and appropriates $10.2 million in AEIDF revenue for various horse programs/purses/awards; reduction from current year reflects reduction in estimated AEIDF revenue after completion of two permanentDetroit casinos, anticipated in 2007 and 2008.

Gross

Restricted

$12,881,600

12,881,600

($2,721,300)

(2,721,300)

20.    Economics

Provides $2.4 million (gross), $1.1 million (GF/GP) for economic increases, including salaries and wages, insurance, retirement contributions, and building occupancy.

Gross

IDG

Federal

Private

Restricted

GF/GP

N/A

N/A

N/A

N/A

N/A

N/A

$2,411,000

7,700

428,100

4,700

891,900

$1,078,600

Boilerplate Appropriations -- The House includes an additional $950,000 GF/GP appropriation contingent on the passage by the legislature of legislation to increase GF/GP revenue by not less than $1.0 billion.  The specific items are:

                Section 405:  Food and Dairy – $600,000 GF/GP

                Section 452:  Bovine TB Program – $200,000 GF/GP

                Section 608:  Environmental Stewardship/Right to Farm – $150,000 GF/GP

House Boilerplate Compared to FY 2006-07 YTD Appropriations

Sec. 201.  State Spending –MODIFIED

Standard section – updated to reflect Part 1.

Sec. 202.  Management & Budget Act –RETAINED

Standard section – reference to PA 431 of 1984.

Sec. 203.  Definitions –RETAINED

Sec. 204.  Civil Service Billing –RETAINED

Standard section – reference to Article XI of the Constitution.

Sec. 205.  Hiring Freeze –RETAINED

Standard section establishing restrictions on hiring classified civil service employees.

Sec. 208.  Internet Reports –RETAINED

Provides for Internet to fulfill reporting requirements.

Sec. 209.  Foreign Goods & Services –RETAINED

Directs the department to give priority to purchase ofMichigan goods and services.

Sec. 210.  Deprived & Depressed Communities –RETAINED

Requires department director to take reasonable steps to ensure that businesses in deprived/depressed communities compete for contracts.

Sec. 212.  Indemnification – RETAINED

Provides for indemnification under the Animal Industry Act, 1988 PA 466.

Sec. 214.  Grant Notification – RETAINED

Requires ten-day notice to House and Senate appropriations subcommittees on Agriculture when a grant is made from any line item other than a grant line item.

Sec. 219.  Information Technology as Work Projects –RETAINED

Provides for treatment of information technology projects as work projects.

Sec. 220.  Information Technology User Fees –RETAINED

Provides for user fees for information technology projects.

Sec. 223.  Out-of-State Travel –MODIFIED

Standard section – limitation on out-of-state travel, travel report.  House modifies date references.

Sec. 224.  Employee Discipline –RETAINED

Prohibits state departments or agencies from disciplining employees for communicating with the legislature.

Sec. 225.  Agriculture and Livestock Education Pavilion –RETAINED

Indicates legislative intent that Department explore opportunities to expand facilities and size of MSU Pavilion for Agriculture and Livestock Education.

Sec. 227.  Return on Investment – MODIFIED

Requires Department to provide summary report on real and potential return on investment for each of Department’s programs. House updates date references.

Sec. 228.  Contingency Funds – NEW

House provides for $5.0 million federal, $6.0 million state-restricted, $100,000 local, and $100,000 private contingency funds available only if transferred to a budgetary line item in accordance with the Management and Budget Act.

Sec. 301.  Commission and Boards– RETAINED

Sets the per diem rates for commodity boards.

Sec. 302.  Fee Revenue/Notification of Inspection Fee Changes – RETAINED

Authorizes use of certain fee revenue for department programs; provides for notification 30 days prior to proposing changes in fees authorized under Section 302 of the Market Conditions Act of 1915.  Retains reporting requirement.

Sec. 304.  Motor Fuel Quality – MODIFIED

House requires department to maintain same level of effort as in current fiscal year; eliminates specific $3.8 million designation for program in current law. 

Sec. 305.  Equine Industry –NOT INCLUDED

House does not include one-time survey of the equine industry inMichigan.

Sec. 401.  Restaurant Inspection and Licensing– RETAINED

Requires Department to monitor restaurant inspection and licensing activities conducted by locals and to report to Legislature.

Sec. 402.  Food Safety– RETAINED

Requires Department to provide reports on food-borne outbreaks and emergencies related to food safety.

Sec. 403.  Local Programs– RETAINED

Requires that local units of government obtain permission from the Department prior to moving or reallocating program funds appropriated in section 104.

Sec. 404.  Consumer and Industry Food Education Fund– RETAINED

Requires that not less than $150,000 from the fund be expended for purposes under Section 4114 of the Food Act of 2000.

Sec. 405.  Food Safety Contingency– NEW

The House includes an additional $600,000 GF/GP appropriation contingent on the passage by the legislature of legislation to increase GF/GP revenue by not less than $1.0 billion. 

Sec. 407.  Carry Forward for Food and Dairy E-inspector Program– NEW

Directs that funds from FY 2006-07 budget not lapse but be carried forward as a work project for the e-inspector program.

Sec. 450.  Bovine Tuberculosis (TB)– RETAINED

Requires Department to reimburse DNR for mutually-agreed-to bovine tuberculosis costs.

Sec. 451.  Bovine Tuberculosis(SplitState Status)– RETAINED

Requires Department to pay for all whole-herd and individual-animal testing costs to maintain split-state status.

Sec. 452.  Bovine TB Program Contingency– NEW

The House includes an additional $200,000 GF/GP appropriation contingent on the passage by the legislature of legislation to increase GF/GP revenue by not less than $1.0 billion. 

Sec. 456.  Electronic Animal ID Program– NEW

Prohibits funding for mandatory electronic ID program for any domestic animal other than cattle.

Sec. 457.  Aquaculture Carry-forward– NEW

Provides for carry forward of animal health and welfare program funds, from FY 2006-07 to FY 2007-08, to be used for acquaculture program.

Sec. 458.  Earmark for Aquaculture and VHS eradication programs

Identifies funding for Viral Hemorrhagic Septicemia Surveillance and sets department program requirements. 

Sec. 501.  Laboratory Services –NEW

House provides a "sufficient amount" from licensing and inspection fees to provide for animal feed testing programs.

Sec. 603.  Migrant Labor Housing– RETAINED

Requires Department to apply for any available federal funds to support the migrant labor housing program.

Sec. 604.  Local Conservation Districts– MODIFIED

Provides $11,600 for each of 79 local conservation districts.  This had been $19,200 in the current year, prior to Executive Order 2007-3.

Sec. 606.  Match for USDA Environmental Quality Initiative –NEW

Directs Department to search for all possible funding sources to match USDA environmental quality initiative funds.

Sec. 607. Inter-countyDrain Program –NEW

Indicates legislative intent that department continue its activities as provided under the Drain Code.

Sec. 608.  Right to Farm Contingency– NEW

The House includes an additional $150,000 GF/GP appropriation contingent on the passage by the legislature of legislation to increase GF/GP revenue by not less than $1.0 billion. 

Sec. 702.  Food Bank– RETAINED

Allows the Food Bank Council to expend unused funds for direct food purchase.

Sec. 703. Northwest Michigan Horticultural Research Station– NOT INCLUDED

House does not include $30,000 grant.

Sec. 704.  FFA – Indirect Costs – MODIFIED

Prohibits indirect costs from being charged against the grant to FFA; House requires that grant (up to $80,000) be matched by organization.

Sec. 705.  Export Market– RETAINED

Directs state funding to be used to leverage export marketing programs offered by the federal government.

Sec. 706.  Agricultural Development– MODIFIED

Requires Department to report on agricultural development and export market development activities; House updates date references.

Sec. 707.  Agricultural Development Fund -RETAINED

Requires Department, in awarding grants from the fund, to give due consideration to the diversity ofMichigan agriculture and its economic importance.

Sec. 708.  Agricultural Development Fund– RETAINED

Authorizes Department to receive and expend monies from the fund.

Sec. 709.  Grape and Wine Industry Council– MODIFIED

Requires Department to provide report describing activities of the council; House updates date reference.

Sec. 710.  Export Markets– RETAINED

Allows Department to match external funding for domestic and international marketing programs to develop new and enhance existing export markets forMichigan agricultural products.

Sec. 711.  4-H Foundation – RETAINED

House requires that grant (up to $20,000) be matched by organization.

Sec. 801.  State Simulcasting Tax Revenue Report– RETAINED

Requires Department to submit a monthly report on state simulcasting tax revenue and license fees.

Sec. 802.  Purses and Supplements - Licensed Tracks– MODIFIED

Identifies amounts to be used for state purse supplements at state licensed pari-mutuel tracks.  House concurs with Executive in reduction from $280,000, to $220,000 from the AEIDF.

Sec. 803.  Thoroughbred Program– MODIFIED

Provides funding from the Thoroughbred program line item to the Michigan United Thoroughbred Breeders and Owners Association to conduct a thoroughbred yearling show.  House concurs with the Executive in reduction from $30,500, to $23,500 from the AEIDF.

Sec. 804.  Thoroughbred Owners Awards– RETAINED

Provides funding for thoroughbred owners’ awards.

Sec. 805.  Agriculture Equine Fund Reduction Report– RETAINED

Requires Department to notify Legislature ten days prior to reductions in appropriations, allocations, or expenditures from the Agriculture Equine Industry Development Fund.

Sec. 806.  Fair Prizes and Awards– RETAINED

Requires fairs to publish rules and guidelines for exhibits eligible for state premiums; establishes grievance procedures.

Sec. 807.  Purse Supplements– RETAINED

Provides for overnight purse supplements.

Sec. 808.  Horse Show– RETAINED

Allocates $91,400 from premiums line for grants for large livestock and equine exhibitors; Michigan Horse Show Association’s Fall Youth Show.

 Sec. 809.  Youth in Agriculture– RETAINED

Allocates $40,000 from Premiums – county and state fairs for a grant to promote youth involvement in the animal agriculture industry; establishes guidelines for eligibility to receive grants.

Sec. 811.  Outstanding Unclaimed Tickets– RETAINED

Prohibits using funds for distribution of outstanding winning tickets until they are deposited in the Agriculture Equine Industry Development Fund.  Department is to provide ten-day notice before funds are spent.

Sec. 901.  Criminal Activity Information Rewards– RETAINED

Allows Racing Commissioner to pay rewards up to $5,800 to individuals who provide information on criminal activity involving the horse racing industry.

Sec. 902.  Thoroughbred Program "Escrow"– NEW

Directs that in the event that there is not live thoroughbred meet in 2008, all purse and program money appropriated in FY 2007-08 be held in escrow for a period not to exceed 18 months.