MILITARY AND VETERANS AFFAIRS

Summary: House Appropriations Committee

SB 235

FY 2007-08

Analyst: Jan Wisniewski

		FY 2007-08	FY 2007-08	FY 2007-08	FY 2007-08	*Difference: House Appropriations Committee* *From FY 2006-07 YTD*
	FY 2006-07 YTD	Executive	Senate Passed	House Appropriations Committee	Enacted	*Amount*	%
IDG/IDT	$1,664,600	$1,680,900	$1,680,900	$1,680,900		$16,300	1.0
Federal	53,307,800	54,187,500	54,187,500	56,187,500		2,879,700	5.4
Local	1,253,100	1,283,900	1,283,900	1,283,900		30,800	2.5
Private	1,441,300	1,463,300	1,463,300	1,463,300		22,000	1.5
Restricted	26,796,000	28,428,600	28,428,600	28,428,600		1,632,600	6.1
GF/GP	39,299,200	40,817,500	39,955,500	40,934,800		1,635,600	4.2
Gross	$123,762,000	$127,861,700	$126,999,700	$129,979,000		*$6,217,000*	*5.0*
FTEs	1,022.0	1,022.0	1,022.0	1,022.0		0.0	0.0

Note: FY 2006-07 figures include the results of supplementals and Executive Order (EO) actions

throughJuly 31, 2007.

Overview

The Department of Military and Veterans Affairs is charged with the training and administration of Army and Air National Guard forces, providing combat-ready military forces during times of national emergency, and performing civil relief operations under the command of the governor during state emergencies. The Department’s budget includes administrative and maintenance costs associated with these responsibilities as well as several National Guard-related programs such as the Challenge Program and the National Guard Education Assistance Program. The Department has oversight over the following veterans-related programs: state-licensed nursing care at veterans homes in Grand Rapids and Marquette, grant funding to veterans service organizations, and the Michigan Veterans Trust Fund.

Major Budget Changes From FY 2006-07 YTD Appropriations	FY 2006-07 Original Appropriation	Executive Change	House Appropriation Committee Change
*1. Military Training Sites and Support Facilities – Additional Federal Authorization* House adds $2.0 million in Federal funds recently authorized for use by the department for Military Training Sites and Support Facilities.	Gross Federal Restricted GF/GP	$20,627,800 $18,011,000 $0 $2,616,800	$2,316,300 $735,600 $1,500,000 $80,700	$4,316,300 $2,735,600 $1,500,000 $80,700
*2. Veterans Service Organizations* Executive recommended no funding changes for grant funding for the VSOs. House Subcommittee recommends a 3% GF/GP increase for the VSO totaling $117,300.	Gross GF/GP	$3,912,300 $3,912,300	$0 $0	$117,300 $117,300
*3. Michigan Regional Training Institute* Authorization for charging fees for the use of the new Michigan Regional Training Institute at Fort Custer in Battle Creek. New boilerplate language establishes the MRTI and creates a fund for operations and maintenance of the MRTI facilities. Government agencies, educational institutions, and various clubs and organizations would pay a fee for use of the MRTI facilities. House Subcommittee concurs.	Gross Restricted	$0 0	$1,500,000 1,500,000	$1,500,000 1,500,000
*4. Federal Revenue Increases – Various* Provides $832,000 in funding increases from the Federal National Guard Bureau for communication and personnel costs, security contracts, and for expansion of the Starbase program to Fort Custer in Battle Creek. House Subcommittee concurs.	Gross Federal	$0 0	$832,000 832,000	$832,000 832,000
5. *Grand Rapids* *Veterans' Home – Various Adjustments* Offsets $163,600 GF/GP with Federal Veterans Health Administration funds; reduces $21,700 GF/GP from early retirement sick leave payouts; reduces $22,800 in lease revenue collections; offsets $466,700 GF/GP with Federal Medicare/Medicaid adjustments; reduces $370,000 GF/GP for contractual services, overtime, entertainment, and nurse on-call costs. House Subcommittee concurs.	Gross Federal Private Restricted GF/GP	$48,144,300 16,018,200 415,000 15,091,400 $16,619,700	($414,500) 630,300 0 (22,800) ($1,022,000)	($414,500) 630,300 0 (22,800) ($1,022,000)
*6. D. J. Jacobetti Veterans' Home – Various Adjustments* Reduces $800 GF/GP from early retirement sick leave payouts; offsets $190,700 in federal funds with restricted funds; offsets $8,400 GF/GP with Federal Medicare/Medicaid adjustments; offsets $269,000 GF/GP with restricted funds. House Subcommittee concurs.	Gross Federal Private Restricted GF/GP	$15,490,600 4,993,900 125,000 4,990,400 $5,381,300	($800) (182,300) 0 459,700 ($278,200)	($800) (182,300) 0 459,700 ($278,200)
*7. Economic Adjustments* Provides funding for employee economic adjustments. Also includes economic adjustments for Information Technology. House Subcommittee concurs.	Gross IDG Federal Private Local Restricted GF/GP	NA NA NA NA NA NA NA	$3,295,700 16,300 1,463,700 22,000 30,800 39,000 $1,723,900	$3,295,700 16,300 1,463,700 22,000 30,800 39,000 $1,723,900
*8. Headquarters and Armories – Vacancies* Elimination of four armory maintenance mechanic vacancies. House Subcommittee concurs.	Gross Federal Restricted GF/GP	$10,178,900 2,717,900 350,000 $7,111,000	($300,000) 0 0 ($300,000)	($300,000) 0 0 ($300,000)
*9. Military Retirement – Cost of Living Increase* Provides $74,200 GF/GP for a federal 3.3% cost of living increase. House Subcommittee concurs.	Gross GF/GP	$2,973,800 $2,973,800	$74,200 $74,200	$74,200 $74,200

Major Budget Changes From FY 2006-07 YTD Appropriations

FY 2006-07

Original Appropriation

Executive Change

House Appropriation Committee

Change

1. Military Training Sites and Support Facilities – Additional Federal Authorization

House adds $2.0 million in Federal funds recently

authorized for use by the department for Military

Training Sites and Support Facilities.

Gross

Federal

Restricted

GF/GP

$20,627,800

$18,011,000

$2,616,800

$2,316,300

$735,600

$1,500,000

$80,700

$4,316,300

$2,735,600

$1,500,000

$80,700

2. Veterans Service Organizations

Executive recommended no funding changes for grant

funding for the VSOs. House Subcommittee

recommends a 3% GF/GP increase for the VSO totaling

$117,300.

Gross

GF/GP

$3,912,300

$3,912,300

$117,300

$117,300

3. Michigan Regional Training Institute

Authorization for charging fees for the use of the new Michigan Regional Training Institute at Fort Custer in Battle Creek. New boilerplate language establishes the MRTI and creates a fund for operations and maintenance of the MRTI facilities. Government agencies, educational institutions, and various clubs and organizations would pay a fee for use of the MRTI facilities. House Subcommittee concurs.

Gross

Restricted

$1,500,000

1,500,000

$1,500,000

1,500,000

4. Federal Revenue Increases – Various

Provides $832,000 in funding increases from the Federal National Guard Bureau for communication and personnel costs, security contracts, and for expansion of the Starbase program to Fort Custer in Battle Creek. House Subcommittee concurs.

Gross

Federal

$832,000

832,000

$832,000

832,000

5. Grand Rapids Veterans' Home – Various Adjustments

Offsets $163,600 GF/GP with Federal Veterans Health Administration funds; reduces $21,700 GF/GP from early retirement sick leave payouts; reduces $22,800 in lease revenue collections; offsets $466,700 GF/GP with Federal Medicare/Medicaid adjustments; reduces $370,000 GF/GP for contractual services, overtime, entertainment, and nurse on-call costs. House Subcommittee concurs.

Gross

Federal

Private

Restricted

GF/GP

$48,144,300

16,018,200

415,000

15,091,400

$16,619,700

($414,500)

630,300

(22,800)

($1,022,000)

($414,500)

630,300

(22,800)

($1,022,000)

6. D. J. Jacobetti Veterans' Home – Various Adjustments

Reduces $800 GF/GP from early retirement sick leave payouts; offsets $190,700 in federal funds with restricted funds; offsets $8,400 GF/GP with Federal Medicare/Medicaid adjustments; offsets $269,000 GF/GP with restricted funds. House Subcommittee concurs.

Gross

Federal

Private

Restricted

GF/GP

$15,490,600

4,993,900

125,000

4,990,400

$5,381,300

($800)

(182,300)

459,700

($278,200)

($800)

(182,300)

459,700

($278,200)

7. Economic Adjustments

Provides funding for employee economic adjustments. Also includes economic adjustments for Information Technology. House Subcommittee concurs.

Gross

IDG

Federal

Private

Local

Restricted

GF/GP

$3,295,700

16,300

1,463,700

22,000

30,800

39,000

$1,723,900

$3,295,700

16,300

1,463,700

22,000

30,800

39,000

$1,723,900

8. Headquarters and Armories – Vacancies

Elimination of four armory maintenance mechanic vacancies. House Subcommittee concurs.

Gross

Federal

Restricted

GF/GP

$10,178,900

2,717,900

350,000

$7,111,000

($300,000)

($300,000)

($300,000)

($300,000)

9. Military Retirement – Cost of Living Increase

Provides $74,200 GF/GP for a federal 3.3% cost of living increase. House Subcommittee concurs.

Gross

GF/GP

$2,973,800

$2,973,800

$74,200

$74,200

$74,200

$74,200

Major Boilerplate Changes From FY 2006-07
*Sec. 207. Privatization* Executive eliminates Department requirement to report privatization plans to the appropriations subcommittees and the fiscal agencies. House Subcommittee does not concur.
*Sec. 211. Reporting Requirements* Executive eliminates requirement for receiving and retaining reports funded from appropriations in part 1 and for following federal guidelines and state laws regarding record retention. House Subcommittee does not concur.
*Sec. 213. Armory Closures* Executive eliminates Department requirement to consult with the Senate and House appropriations subcommittees regarding closure or consolidation of National Guard armories. House Subcommittee does not concur.
*Sec. 214. Military Cemeteries* Executive eliminates legislative intent for funding state military cemeteries in Crawford and Dickinson counties should funds become available. House Subcommittee does not concur.
*Sec. 226. Disciplinary Action Prohibition* Executive eliminates prohibition of Department from taking disciplinary action against department employees that communicate with the Legislature. House Subcommittee does not concur.
*Sec. 227.* *Sale* *of Department Property* Executive eliminates reporting requirement to the Senate and House subcommittees concerning the sale of any department property. House Subcommittee does not concur.
*Sec. 228. Contingency Funds* Executive adds new language appropriating $5.0 million in federal contingency funds, $2.0 million for state restricted contingency funds, $100,000 for local contingency funds, and $100,000 for private contingency funds. House Subcommittee concurs.
*Sec. 229.* *Regional* *Training* *Center* *Revolving Account* Executive adds new language creating a new revolving account from revenues generated from government agencies and various groups using the new Michigan Regional Training Center at Fort Custer in Battle Creek. House Subcommittee concurs.
*Sec. 230.* *Regional* *Training* *Center* *Availability* Executive adds language specifying the availability of the Regional Training Center to military personnel, various government agencies, educational institutions, nonprofit corporations, community service clubs, and other organizations. House Subcommittee concurs and adds language to subsection (h) that includes public safety related agendas.
*Sec. 301. Armory Usage Fees* Executive eliminates Department authorization to charge rental and equipment usage fees for armory rentals. House Subcommittee does not concur.
*Sec. 302. Challenge Program* Executive modifies language by eliminating language identifying alternative sources of funding other than general fund for the Challenge Program and adding language to provide 75% participation in the Challenge Program for members of families at or below 200% of the federal poverty level. House Subcommittee concurs with Executive except for including subsection (3) specifying 75% participation in the Challenge Program for members of families at or below 200% of the federal poverty level.
*Sec. 501. Veterans Service Organizations* Executive eliminates subsection requiring reports to the appropriations subcommittees concerning suggestions for enhancing veterans' benefits counseling programs. House Subcommittee does not concur.
*Sec. 601. Veterans' Home Appropriations* Executive eliminates requirement for the use of appropriations for the two veterans' homes in the state for any purpose other than for veterans and veterans' families. House Subcommittee does not concur.
*Sec. 602. Veterans' Home Reports* Executive eliminates Department report requirement containing census and financial information for the two homes to the appropriations subcommittees. House Subcommittee does not concur.
*Sec. 704.* *County* *Veterans* *Counselor Training* Executive eliminates requirement of the veterans affairs directorate and the Veterans' Trust Fund administration to train county veterans counselors. House Subcommittee does not concur.

Major Boilerplate Changes From FY 2006-07

Sec. 207. Privatization

Executive eliminates Department requirement to report privatization plans to the appropriations subcommittees and the fiscal agencies. House Subcommittee does not concur.

Sec. 211. Reporting Requirements

Executive eliminates requirement for receiving and retaining reports funded from appropriations in part 1 and for following federal guidelines and state laws regarding record retention. House Subcommittee does not concur.

Sec. 213. Armory Closures

Executive eliminates Department requirement to consult with the Senate and House appropriations subcommittees regarding closure or consolidation of National Guard armories. House Subcommittee does not concur.

Sec. 214. Military Cemeteries

Executive eliminates legislative intent for funding state military cemeteries in Crawford and Dickinson counties should funds become available. House Subcommittee does not concur.

Sec. 226. Disciplinary Action Prohibition

Executive eliminates prohibition of Department from taking disciplinary action against department employees that communicate with the Legislature. House Subcommittee does not concur.

Sec. 227. Sale of Department Property

Executive eliminates reporting requirement to the Senate and House subcommittees concerning the sale of any department property. House Subcommittee does not concur.

Sec. 228. Contingency Funds

Executive adds new language appropriating $5.0 million in federal contingency funds, $2.0 million for state restricted contingency funds, $100,000 for local contingency funds, and $100,000 for private contingency funds. House Subcommittee concurs.

Sec. 229. Regional Training Center Revolving Account

Executive adds new language creating a new revolving account from revenues generated from government agencies and various groups using the new Michigan Regional Training Center at Fort Custer in Battle Creek. House Subcommittee concurs.

Sec. 230. Regional Training Center Availability

Executive adds language specifying the availability of the Regional Training Center to military personnel, various government agencies, educational institutions, nonprofit corporations, community service clubs, and other organizations. House Subcommittee concurs and adds language to subsection (h) that includes public safety related agendas.

Sec. 301. Armory Usage Fees

Executive eliminates Department authorization to charge rental and equipment usage fees for armory rentals. House Subcommittee does not concur.

Sec. 302. Challenge Program

Executive modifies language by eliminating language identifying alternative sources of funding other than general fund for the Challenge Program and adding language to provide 75% participation in the Challenge Program for members of families at or below 200% of the federal poverty level. House Subcommittee concurs with Executive except for including subsection (3) specifying 75% participation in the Challenge Program for members of families at or below 200% of the federal poverty level.

Sec. 501. Veterans Service Organizations

Executive eliminates subsection requiring reports to the appropriations subcommittees concerning suggestions for enhancing veterans' benefits counseling programs. House Subcommittee does not concur.

Sec. 601. Veterans' Home Appropriations

Executive eliminates requirement for the use of appropriations for the two veterans' homes in the state for any purpose other than for veterans and veterans' families. House Subcommittee does not concur.

Sec. 602. Veterans' Home Reports

Executive eliminates Department report requirement containing census and financial information for the two homes to the appropriations subcommittees. House Subcommittee does not concur.

Sec. 704. County Veterans Counselor Training

Executive eliminates requirement of the veterans affairs directorate and the Veterans' Trust Fund administration to train county veterans counselors. House Subcommittee does not concur.