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: Conference Committee* *From FY 2006-07 YTD*
	FY 2006-07 YTD	Executive	Senate Passed	House Appropriations Committee	Conference Committee	*Amount*	%
IDG/IDT	$1,664,600	$1,680,900	$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	56,187,500	2,879,700	5.4
Local	1,253,100	1,283,900	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	1,463,300	22,000	1.5
Restricted	26,796,000	28,428,600	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	40,386,500	1,087,300	2.8
Gross	$123,762,000	$127,861,700	$126,999,700	$129,979,000	$129,430,700	*$5,668,700*	*4.6*
FTEs	1,022.0	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	Conference Committee Change
*1. Military Training Sites and Support Facilities – Additional Federal Authorization* House Appropriations Committee adds $2.0 million in Federal funds recently authorized for use by the department for Military Training Sites and Support Facilities. Conference Committee concurs.	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. House Appropriations Committee concurs with House Subcommittee. Conference Committee maintains current funding.	Gross GF/GP	$3,912,300 $3,912,300	$0 $0	$0 $0
*3. Special Maintenance – State Fund Shift* Conference Committee shifted $500,000 GF/GP from the National Guard Tuition Assistance Program in the Military Training Sites and Support Facilities line to the Special Maintenance – State line to match additional Federal funds available for armory maintenance, resulting in up to $1.5 million in Federal funds.	Gross GF/GP	$151,200 $151,200	$0 $0	$500,000 $500,000
*4. 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. House Appropriations Committee concurs. Conference Committee concurs.	Gross Restricted	$0 0	$1,500,000 1,500,000	$1,500,000 1,500,000
*5. 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. House Appropriations Committee Concurs. Conference Committee Concurs.	Gross Federal	$0 0	$832,000 832,000	$832,000 832,000
6. *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. House Appropriations Committee concurs. Conference Committee reduces $259,000 GF/GP to meet target number agreement. This reduction will not result in any layoffs.	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)	($673,500) 630,300 0 (22,800) ($1,281,000)
*7. 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. House Appropriations Committee concurs. Conference Committee reduces $172,000 GF/GP to meet target number agreement. This reduction will not result in any layoffs.	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)	($172,800) (182,300) 0 459,700 ($450,200)
*8. Economic Adjustments* Provides funding for employee economic adjustments. Also includes economic adjustments for Information Technology. House Subcommittee concurs. House Appropriations Committee concurs. Conference Committee 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
*9. Headquarters and Armories – Vacancies* Elimination of four armory maintenance mechanic vacancies. House Subcommittee concurs. House Appropriations Committee concurs. Conference Committee 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)
*10. Military Retirement – Cost of Living Increase* Provides $74,200 GF/GP for a federal 3.3% cost of living increase. House Subcommittee concurs. House Appropriations Committee concurs. Conference Committee 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

Conference Committee

Change

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

House Appropriations Committee adds $2.0 million in

Federal funds recently authorized for use by the

department for Military Training Sites and Support

Facilities. Conference Committee concurs.

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. House Appropriations Committee concurs

with House Subcommittee. Conference Committee

maintains current funding.

Gross

GF/GP

$3,912,300

$3,912,300

3. Special Maintenance – State Fund Shift

Conference Committee shifted $500,000 GF/GP from

the National Guard Tuition Assistance Program in the

Military Training Sites and Support Facilities line to the

Special Maintenance – State line to match additional

Federal funds available for armory maintenance,

resulting in up to $1.5 million in Federal funds.

Gross

GF/GP

$151,200

$151,200

$500,000

$500,000

4. 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. House Appropriations Committee concurs. Conference Committee concurs.

Gross

Restricted

$1,500,000

1,500,000

$1,500,000

1,500,000

5. 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. House Appropriations Committee Concurs. Conference Committee Concurs.

Gross

Federal

$832,000

832,000

$832,000

832,000

6. 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. House Appropriations Committee concurs. Conference Committee reduces $259,000 GF/GP to meet target number agreement. This reduction will not result in any layoffs.

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)

($673,500)

630,300

(22,800)

($1,281,000)

7. 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. House Appropriations Committee concurs. Conference Committee reduces $172,000 GF/GP to meet target number agreement. This reduction will not result in any layoffs.

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)

($172,800)

(182,300)

459,700

($450,200)

8. Economic Adjustments

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

9. Headquarters and Armories – Vacancies

Elimination of four armory maintenance mechanic vacancies. House Subcommittee concurs. House Appropriations Committee concurs. Conference Committee 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)

10. Military Retirement – Cost of Living Increase

Provides $74,200 GF/GP for a federal 3.3% cost of living increase. House Subcommittee concurs. House Appropriations Committee concurs. Conference Committee 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. 205. Hiring Freeze* Conference Committee concurred with new Senate language requiring additional provisions for a civil service hiring freeze.
*Sec. 209. Buy American* Conference Committee concurred with new Senate language giving preference to state purchases made from businesses owned by veterans.
*Sec. 228. Attorney General Legal Services* Conference Committee concurred with new Senate language prohibiting departmental spending for legal services that are the responsibility of the Attorney General.
*Sec. 229.* *Regional* *Training* *Center* *Revolving Account* Conference Committee concurred with new Executive 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.
*Sec. 230.* *Regional* *Training* *Center* *Availability* Conference Committee concurred with new Executive 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.
*Sec. 231. Policy Change Report* Conference Committee added new language requiring the reporting of policy changes for implementing legislation to the Legislature.
*Sec. 232. Contingency Funds* Conference Committee concurs with new Executive 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.
*Sec. 604. Post and Posthumous Funds Spending Plan Report* Conference Committee added new language requiring the department to report to the appropriations committees within 30 days any plans to alter the spending plan for the post and posthumous funds by the board of managers of the two state veterans homes.

Major Boilerplate Changes From FY 2006-07

Sec. 205. Hiring Freeze

Conference Committee concurred with new Senate language requiring additional provisions for a civil service hiring freeze.

Sec. 209. Buy American

Conference Committee concurred with new Senate language giving preference to state purchases made from businesses owned by veterans.

Sec. 228. Attorney General Legal Services

Conference Committee concurred with new Senate language prohibiting departmental spending for legal services that are the responsibility of the Attorney General.

Sec. 229. Regional Training Center Revolving Account

Conference Committee concurred with new Executive 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.

Sec. 230. Regional Training Center Availability

Conference Committee concurred with new Executive 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.

Sec. 231. Policy Change Report

Conference Committee added new language requiring the reporting of policy changes for implementing legislation to the Legislature.

Sec. 232. Contingency Funds

Conference Committee concurs with new Executive 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.

Sec. 604. Post and Posthumous Funds Spending Plan Report

Conference Committee added new language requiring the department to report to the appropriations committees within 30 days any plans to alter the spending plan for the post and posthumous funds by the board of managers of the two state veterans homes.