HISTORY, ARTS, AND LIBRARIES FY 2008-09 BUDGET

Summary: House Bill 5804 (H-1) as reported from Committee

Analyst: Mark Wolf

		FY 2008-09	FY 2008-09	*Difference: House* *From FY 2007-08 YTD*		*Difference: House* *From Executive*
	FY 2007-08 YTD	Executive	House	*Amount*	%	*Amount*	%
IDG/IDT	$139,200	$668,600	$668,600	$529,400	380.3	$0	0.0
Federal	7,307,400	7,507,400	7,507,400	200,000	2.7	0	0.0
Local	0	200,000	200,000	200,000	N/A	0	0.0
Private	112,400	312,400	312,400	200,000	177.9	0	0.0
Restricted	2,645,600	3,979,800	3,979,800	1,334,200	50.4	0	0.0
GF/GP	39,298,300	40,111,700	44,390,700	5,092,400	13.0	4,279,000	10.7
Gross	$49,502,900	$52,779,900	$57,058,900	*$7,556,000*	*15.3*	*$4,279,000*	*8.1*
FTEs	236.0	233.0	233.0	(3.0)	(1.3)	0.0	0.0

Note: FY 2007-08 figures reflect supplementals and Executive Order (EO) actions throughFebruary 7, 2008.

Overview

The Department of History, Arts, and Libraries administers programs in four major areas: arts and cultural affairs, which includes administration of Michigan’s arts and cultural grants program; Mackinac Island State Park Commission, which oversees operational activities at the Mackinac Island State Park, the Michilimackinac State Park, and the Mill Creek State Park; historical program, which includes historical museum system, historical publications, archaeological, and lighthouse preservation activities; and library services, providing reference services to the public and Legislative, Executive, and Judicial branches of state government, as well as assisting public libraries statewide.

Major Budget Issues

Major Budget Changes From FY 2007-08 YTD	FY 2007-08 YTD	Exec Rec Change From YTD	House Change From YTD
*1. Arts and Cultural Affairs Grants* Adds GF/GP funding for arts and cultural grants and adjusts fund sources.	Gross Federal Restricted GF/GP	$7,754,000 700,000 0 $7,054,000	$242,000 (28,000) 20,000 $250,000	$2,496,000 (28,000) 20,000 $2,504,000
*2. Arts and Cultural Affairs Administration* Increases funding for MCACA administration through additional federal funds, as permitted by the NEA and realization ofHAL Fund revenue (arts grants application fees).	FTEs Gross Federal Restricted GF/GP	5.0 $434,400 0 0 $434,400	0.0 $95,800 28,000 80,000 ($12,200)	0.0 $95,800 28,000 80,000 ($12,200)
3. *Michigan* *History Day* Retains GF/GP funding for the Michigan History Day program.	Gross GF/GP	$25,000 $25,000	($25,000) ($25,000)	$0 $0
*4. State Aid to Libraries* Increases state aid to libraries	Gross GF/GP	$10,000,000 $10,000,000	$0 $0	$2,000,000 $2,000,000
*5. History, Arts, and Libraries Fund* Appropriates funds from theHAL Fund for various line items in part 1 of the bill. Previously, theHAL Fund has been appropriated in boilerplate.	Gross GF/GP	N/A N/A	$788,000 $788,000	$788,000 $788,000
*6. Museum Store Operations* Adds line item and deduct for the museum stores.	FTEs Gross Restricted	N/A N/A N/A	4.0 $501,500 501,500	4.0 $501,500 501,500
*7. Cultural Economic Development* Adds a new line item separating out funding for theHAL Office of Cultural Economic Development, previously included within the management services line.	FTEs Gross Restricted GF/GP	N/A N/A N/A N/A	2.0 $350,000 50,000 $300,000	2.0 $350,000 50,000 $300,000
8. *Records* *Center* *Relocation* AddsIDG revenue and utilizes savings on current leases for one-time costs for the relocation of the state records center. (The site was converted to use by the Department of Military and Veterans Affairs.) Adjusts building occupancy charges for new facility.	Gross IDG GF/GP	N/A N/A N/A	$1,473,400 551,300 $922,100	$1,473,400 551,300 $922,100
*9. Federal, Local, and Private Grants* Adds $600,000 in authorization to receive federal, local, and private grants	Gross Federal Local Private	N/A N/A N/A N/A	$600,000 200,000 200,000 200,000	$600,000 200,000 200,000 200,000
*10. Lighthouse Preservation* Adds $100,300 in revenue from the lighthouse specialty license plate for the lighthouse preservation program.	Gross Restricted	N/A N/A	$100,300 100,300	$100,300 100,300
*11. Human Resources Consolidation* Eliminates funding for human resources due to consolidation	Gross GF/GP	$226,200 $226,200	($226,200) ($226,200)	($226,200) ($226,200)
*12. Economic Adjustments* Makes adjustments for salaries/wages, insurances, workers compensation, and retirement and FICA.	Gross IDG Federal Private Restricted GF/GP	N/A N/A N/A N/A N/A	$62,300 (200) (400) 100 6,900 55,900	$62,300 (200) (400) 100 6,900 55,900

Major Budget Changes From FY 2007-08 YTD

FY 2007-08 YTD

Exec Rec Change

From YTD

House Change

From YTD

1. Arts and Cultural Affairs Grants

Adds GF/GP funding for arts and cultural grants and adjusts fund sources.

Gross

Federal

Restricted

GF/GP

$7,754,000

700,000

$7,054,000

$242,000

(28,000)

20,000

$250,000

$2,496,000

(28,000)

20,000

$2,504,000

2. Arts and Cultural Affairs Administration

Increases funding for MCACA administration through additional federal funds, as permitted by the NEA and realization ofHAL Fund revenue (arts grants application fees).

FTEs

Gross

Federal

Restricted

GF/GP

5.0

$434,400

$434,400

0.0

$95,800

28,000

80,000

($12,200)

0.0

$95,800

28,000

80,000

($12,200)

3. Michigan History Day

Retains GF/GP funding for the Michigan History Day program.

Gross

GF/GP

$25,000

$25,000

($25,000)

($25,000)

4. State Aid to Libraries

Increases state aid to libraries

Gross

GF/GP

$10,000,000

$10,000,000

$2,000,000

$2,000,000

5. History, Arts, and Libraries Fund

Appropriates funds from theHAL Fund for various line items in part 1 of the bill. Previously, theHAL Fund has been appropriated in boilerplate.

Gross

GF/GP

N/A

N/A

$788,000

$788,000

$788,000

$788,000

6. Museum Store Operations

Adds line item and deduct for the museum stores.

FTEs

Gross

Restricted

N/A

N/A

N/A

4.0

$501,500

501,500

4.0

$501,500

501,500

7. Cultural Economic Development

Adds a new line item separating out funding for theHAL Office of Cultural Economic Development, previously included within the management services line.

FTEs

Gross

Restricted

GF/GP

N/A

N/A

N/A

2.0

$350,000

50,000

$300,000

2.0

$350,000

50,000

$300,000

8. Records Center Relocation

AddsIDG revenue and utilizes savings on current leases for one-time costs for the relocation of the state records center. (The site was converted to use by the Department of Military and Veterans Affairs.) Adjusts building occupancy charges for new facility.

Gross

IDG

GF/GP

N/A

N/A

$1,473,400

551,300

$922,100

$1,473,400

551,300

$922,100

9. Federal, Local, and Private Grants

Adds $600,000 in authorization to receive federal, local, and private grants

Gross

Federal

Local

Private

N/A

N/A

$600,000

200,000

$600,000

200,000

10. Lighthouse Preservation

Adds $100,300 in revenue from the lighthouse specialty license plate for the lighthouse preservation program.

Gross

Restricted

N/A

N/A

$100,300

100,300

$100,300

100,300

11. Human Resources Consolidation

Eliminates funding for human resources due to consolidation

Gross

GF/GP

$226,200

$226,200

($226,200)

($226,200)

($226,200)

($226,200)

12. Economic Adjustments

Makes adjustments for salaries/wages, insurances, workers compensation, and retirement and FICA.

Gross

IDG

Federal

Private

Restricted

GF/GP

N/A

N/A

$62,300

(200)

(400)

100

6,900

55,900

$62,300

(200)

(400)

100

6,900

55,900

Major Boilerplate Changes From FY 2007-08
*Sec. 210. Policy Change Report –* DELETED Requires reporting to the Legislature on policy changes for implementing legislation.
**Sec. 216. History, Arts, and Libraries Fund–REVISED** Specifies that the HALF may receive and expend funds for providing census-related services and products, document and media services, conferences and other programs, use of specialized equipment, arts grant and other application fees, and other special services.
**Sec. 218. Supplemental Funding –DELETED** Expresses intent to explore supplemental funding sources for the Department.
**Sec. 219. Communication with Legislature –RETAINED Prohibits Department from taking disciplinary action against employees communicating with Legislature. The Executive deletes this section. The House** retains this section.
**Sec. 220. Film Advisory Commission Minutes -DELETED** Requires Department to post proposed and final minutes of Film Advisory Commission within 8 business days after the meeting and the meeting at which the minutes are approved.
**Sec. 227. Continuous Improvement Efficiency Mechanisms –RETAINED Requires Department to identify efficiency changes made to programs. The Executive deletes this section. The House** retains this section.
**Sec. 228. Receipt of Grants -NEW** Requires a report to fiscal agencies, SBO, and subcommittee when the Department receives a grant authorized under the Federal, Local, and Private Grants line.
**Sec. 404. Arts and Cultural Grants -REVISED The House** adds a provision that permits organizations applying for grants to provide a discounted rate on admissions and tickets to current and former members of theU.S. armed forces, police officers, fire fighters, and first responders.
*Sec. 506.* *Michigan* **Historical Museum Surplus Auctions –RETAINED Deletes requirement that Department notifyHAL subcommittee members at least one week prior to sale or auction of artifacts no longer suitable for the historical museum collection. The Executive deletes this provision. The House** retains this provision.
*Sec. 507.* *Michigan* *History Magazine Subscriber List* – DELETED Deletes requirement that the Department make the Michigan History magazine subscriber list available to the Historical Society of Michigan.
*Sec. 701.Mackinac Island* State Park Commission Infrastructure Improvements – DELETED** Appropriates $200,000 from the Mackinac Island Park Operations Fees Fund for maintenance projects.

Major Boilerplate Changes From FY 2007-08

Sec. 210. Policy Change Report – DELETED

Requires reporting to the Legislature on policy changes for implementing legislation.

Sec. 216. History, Arts, and Libraries Fund–REVISED

Specifies that the HALF may receive and expend funds for providing census-related services and products, document and media services, conferences and other programs, use of specialized equipment, arts grant and other application fees, and other special services.

Sec. 218. Supplemental Funding –DELETED

Expresses intent to explore supplemental funding sources for the Department.

Sec. 219. Communication with Legislature –RETAINED

Prohibits Department from taking disciplinary action against employees communicating with Legislature. The Executive deletes this section. The House retains this section.

Sec. 220. Film Advisory Commission Minutes -DELETED

Requires Department to post proposed and final minutes of Film Advisory Commission within 8 business days after the meeting and the meeting at which the minutes are approved.

Sec. 227. Continuous Improvement Efficiency Mechanisms –RETAINED

Requires Department to identify efficiency changes made to programs. The Executive deletes this section. The House retains this section.

Sec. 228. Receipt of Grants -NEW

Requires a report to fiscal agencies, SBO, and subcommittee when the Department receives a grant authorized under the Federal, Local, and Private Grants line.

Sec. 404. Arts and Cultural Grants -REVISED

The House adds a provision that permits organizations applying for grants to provide a discounted rate on admissions and tickets to current and former members of theU.S. armed forces, police officers, fire fighters, and first responders.

Sec. 506. Michigan Historical Museum Surplus Auctions –RETAINED

Deletes requirement that Department notifyHAL subcommittee members at least one week prior to sale or auction of artifacts no longer suitable for the historical museum collection. The Executive deletes this provision. The House retains this provision.

Sec. 507. Michigan History Magazine Subscriber List – DELETED

Deletes requirement that the Department make the Michigan History magazine subscriber list available to the Historical Society of Michigan.

Sec. 701.Mackinac Island State Park Commission Infrastructure Improvements – DELETED

Appropriates $200,000 from the Mackinac Island Park Operations Fees Fund for maintenance projects.