HISTORY, ARTS,AND LIBRARIES FY 2008-09 BUDGET

Summary: House Bill 5804 (S-1) as passed by the Senate

Analyst: Mark Wolf

	FY 2007-08	FY 2008-09	FY 2008-09	FY 2008-09	*Difference:* *Senate from YTD*
	YTD	Revised Exec	House	Senate	*Amount*	%
IDG/IDT	$139,200	$668,600	$668,600	$668,600	$529,400	380.3
Federal	7,355,700	7,507,400	7,507,400	7,757,400	401,700	5.5
Local	0	200,000	200,000	200,000	200,000
Private	112,400	312,400	312,400	312,400	200,000	177.9
Restricted	2,645,600	3,967,800	3,979,800	4,117,800	1,472,200	55.6
GF/GP	39,256,900	39,930,100	44,390,700	39,930,100	673,200	1.7
Gross	$49,509,800	$52,586,300	$57,058,900	$52,986,300	$3,476,500	7.0
FTEs	235.0	232.0	233.0	232.0	(3.0)	(1.3)

Note: FY 2007-08 year-to-date figures reflect supplementals, Executive Orders, and legislative transfers throughJune 6, 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. Public Act 75 of 2008 (SB 1177) transferred Film Office from the department to the Michigan Strategic Fund, effectiveMay 4, 2008. As a result the Revised Executive Recommendation and the Senate do not included funding for the film office. The House included the film office, because it passed the bill prior to the enactment of PA 75.

Major Budget Issues

Major Budget Changes From FY 2007-08 YTD	FY 2007-08 YTD	Exec Rec Change From YTD	House Change From YTD	Senate 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	$367,000 122,000 20,000 $225,000
*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)	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	$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	$0 $0
*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. The House is above the Revised Executive and the Senate because it included the film office, which was subsequently transferred to the Michigan Strategic Fund.	Gross GF/GP	N/A N/A	$776,000 $776,000	$788,000 $788,000	$776,000 $776,000
*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	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	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	$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	$600,000 200,000 200,000 200,000
*10. Lighthouse Preservation* The Revised Executive and House add $100,000 in revenue from the lighthouse specialty license plate for the lighthouse preservation program. The Senate increases funding by an additional $150,000.	Gross Restricted	N/A N/A	$100,000 100,000	$100,000 100,000	$250,000 250,000
*11. Local Historical Society Grants* The Senate creates a new line item to provide grants to local historical societies.	Gross GF/GP	N/A N/A	$0 $0	$0 $0	$25,000 $25,000
*12. Historic Preservation* The Senate increases the spending authorization from federal funds available from the Department of Interior for historic preservation. The Revised Executive and House appropriated levels ($850,000) are the FY 2007-08 enacted levels. The FY 2007-08 YTD appropriation includes an additional $48,300 to account for higher than anticipated funding from DOI.	Gross Federal	$898,300 898,300	($48,300) (48,300)	($48,300) (48,300)	$51,700 51,700
*13. 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)	($226,200) ($226,200)
*14. Economic Adjustments* Makes adjustments for salaries/wages, insurances, workers compensation, and retirement and FICA. The House is above the Revised Executive and the Senate because of the film office, which was subsequently transferred to the Michigan Strategic Fund.	Gross IDG Federal Private Restricted GF/GP	N/A N/A N/A N/A N/A N/A	$61,000 (200) (400) 100 6,900 $54,600	$62,300 (200) (400) 100 6,900 $55,900	$61,000 (200) (400) 100 6,900 $54,600

Major Budget Changes From FY 2007-08 YTD

FY 2007-08 YTD

Exec Rec Change

From YTD

House Change

From YTD

Senate 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

$367,000

122,000

20,000

$225,000

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)

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. The House is above the Revised Executive and the Senate because it included the film office, which was subsequently transferred to the Michigan Strategic Fund.

Gross

GF/GP

N/A

N/A

$776,000

$776,000

$788,000

$788,000

$776,000

$776,000

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

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

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

$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

$600,000

200,000

10. Lighthouse Preservation

The Revised Executive and House add $100,000 in revenue from the lighthouse specialty license plate for the lighthouse preservation program. The Senate increases funding by an additional $150,000.

Gross

Restricted

N/A

N/A

$100,000

100,000

$100,000

100,000

$250,000

250,000

11. Local Historical Society Grants

The Senate creates a new line item to provide grants to local historical societies.

Gross

GF/GP

N/A

N/A

$25,000

$25,000

12. Historic Preservation

The Senate increases the spending authorization from federal funds available from the Department of Interior for historic preservation. The Revised Executive and House appropriated levels ($850,000) are the FY 2007-08 enacted levels. The FY 2007-08 YTD appropriation includes an additional $48,300 to account for higher than anticipated funding from DOI.

Gross

Federal

$898,300

898,300

($48,300)

(48,300)

($48,300)

(48,300)

$51,700

51,700

13. 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)

($226,200)

($226,200)

14. Economic Adjustments

Makes adjustments for salaries/wages, insurances, workers compensation, and retirement and FICA. The House is above the Revised Executive and the Senate because of the film office, which was subsequently transferred to the Michigan Strategic Fund.

Gross

IDG

Federal

Private

Restricted

GF/GP

N/A

N/A

$61,000

(200)

(400)

100

6,900

$54,600

$62,300

(200)

(400)

100

6,900

$55,900

$61,000

(200)

(400)

100

6,900

$54,600

Major Boilerplate Changes From FY 2007-08
*Sec. 210. Policy Change Report –* RETAINED Requires reporting to the Legislature on policy changes for implementing legislation. The Executive and House delete this section. The Senate retains this section.
**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. The Executive, House, and Senate modify this section because to the fund is now appropriated in Part 1, rather than just in boilerplate as in previous years. oHouseHous**
*Sec. 217a. Out of State Travel Restriction* – NEW The Senate adds a section that prohibits out-of-state travel of more than one departmental employee to a specific professional development conference or training seminar. The section provides an exception for travel funded by federal or private sources and which requires more than one employee to attend.
**Sec. 218. Supplemental Funding –RETAINED Expresses intent to explore supplemental funding sources for the Department. The Executive and the House delete this section. The Senate** retains it.
**Sec. 219. Communication with Legislature –RETAINED Prohibits Department from taking disciplinary action against employees communicating with Legislature. The Executive deletes this section. The House and Senate** retain 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. The Executive, House, and Senate** delete this section.
**Sec. 229. Public Listing of Expenditures –NEW The House and Senate add a section requiring the department to maintain a listing on the Internet of all expenditures made by the department in the fiscal year. The Executive** does not include this section.
**Sec. 227. Continuous Improvement Efficiency Mechanisms –DELETED Requires Department to identify efficiency changes made to programs. The Executive and Senate delete this section. The House** retains this section.
**Sec. 228. Receipt of Grants –NEW Requires a report to fiscal agencies, SBO, and subcommittees when the Department receives a grant authorized under the Federal, Local, and Private Grants line. The Executive, House, and Senate** add this section.
**Sec. 505. Michigan Freedom Trail Commission –RETAINED Allocates $25,000 from the funds appropriated in Part 1 for historical administration and services to the Michigan Freedom Trail Commission. The Executive made the allocation permissive ("may"), The House and Senate** require ("shall") the allocation.
*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** and Senate retain this provision.
*Sec. 507.* *Michigan* *History Magazine Subscriber List* – RETAINED Deletes requirement that the Department make the Michigan History magazine subscriber list available to the Historical Society of Michigan. The Executive and House delete this section. The Senate retains it.
*Sec. 701.Mackinac Island* State Park Commission Infrastructure Improvements – DELETED Appropriates $200,000 from the Mackinac Island Park Operations Fees Fund for maintenance projects. The Executive, House, and Senate** delete this section.

Major Boilerplate Changes From FY 2007-08

Sec. 210. Policy Change Report – RETAINED

Requires reporting to the Legislature on policy changes for implementing legislation. The Executive and House delete this section. The Senate retains this section.

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. The Executive, House, and Senate modify this section because to the fund is now appropriated in Part 1, rather than just in boilerplate as in previous years. oHouseHous

Sec. 217a. Out of State Travel Restriction – NEW

The Senate adds a section that prohibits out-of-state travel of more than one departmental employee to a specific professional development conference or training seminar. The section provides an exception for travel funded by federal or private sources and which requires more than one employee to attend.

Sec. 218. Supplemental Funding –RETAINED

Expresses intent to explore supplemental funding sources for the Department. The Executive and the House delete this section. The Senate retains it.

Sec. 219. Communication with Legislature –RETAINED

Prohibits Department from taking disciplinary action against employees communicating with Legislature. The Executive deletes this section. The House and Senate retain 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. The Executive, House, and Senate delete this section.

Sec. 229. Public Listing of Expenditures –NEW

The House and Senate add a section requiring the department to maintain a listing on the Internet of all expenditures made by the department in the fiscal year. The Executive does not include this section.

Sec. 227. Continuous Improvement Efficiency Mechanisms –DELETED

Requires Department to identify efficiency changes made to programs. The Executive and Senate delete this section. The House retains this section.

Sec. 228. Receipt of Grants –NEW

Requires a report to fiscal agencies, SBO, and subcommittees when the Department receives a grant authorized under the Federal, Local, and Private Grants line. The Executive, House, and Senate add this section.

Sec. 505. Michigan Freedom Trail Commission –RETAINED

Allocates $25,000 from the funds appropriated in Part 1 for historical administration and services to the Michigan Freedom Trail Commission. The Executive made the allocation permissive ("may"), The House and Senate require ("shall") the allocation.

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 and Senate retain this provision.

Sec. 507. Michigan History Magazine Subscriber List – RETAINED

Deletes requirement that the Department make the Michigan History magazine subscriber list available to the Historical Society of Michigan. The Executive and House delete this section. The Senate retains it.

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

Appropriates $200,000 from the Mackinac Island Park Operations Fees Fund for maintenance projects. The Executive, House, and Senate delete this section.