FY 2006-07 SUPPLEMENTAL S.B. 220 (CR-1): CONFERENCE REPORT
Senate Bill 220 (Conference Report (CR-1))
Sponsor: Senator Ron Jelinek
Committee: Appropriations
Date Completed: 5-17-07
CONTENT
The conference committee on Senate Bill 220 is considering a conference report to resolve the differences between the Senate and the House of Representatives on the bill. Senate Bill 220 provides for supplemental appropriations for FY 2006-07. The conference report contains positive supplemental appropriations to address funding shortfalls in several State departments. These funding shortfalls are a result of caseload and expenditure adjustments and adjustments to reflect the actual levels of Federal and State restricted revenue. The positive supplemental appropriations in the conference report total $73.5 million of Gross appropriations and $209.2 million of General Fund/General Purpose (GF/GP) appropriations, and include the appropriation of State funds for the implementation of a new business tax plan.
The conference report for Senate Bill 220 also contains a significant number of appropriation reductions to State departments, the Legislature, and the Judiciary. These appropriation reductions total $196.0 million of Gross appropriations and $158.4 million of GF/GP appropriations. The appropriation reductions address a significant portion of the projected FY 2006-07 GF/GP budget deficit. Following is a brief summary of the major appropriations contained in Senate Bill 220. Attachment A provides a department-by-department summary of the appropriations contained in the conference report.
Community Colleges: The conference report includes a delay in the funding of the second half of the August 2007 payment to community colleges until FY 2007-08. The first half of the August 2007 payment was delayed in Executive Order 2007-3. This funding delay equals $12.9 million.
Community Health: The conference report includes appropriation increases of $125.4 million GF/GP to reflect unrealized savings included in the original budget and fund source adjustments. The major appropriation reductions include a $3.2 million reduction in Healthy Michigan Fund programs and a 3.0% reduction to all Medicaid providers except hospitals.
Corrections: The conference report includes appropriation increases of $26.6 million GF/GP to cover funding shortfalls in the Department.
Executive Office: The conference report includes a 4.0% funding reduction for the Executive Office.
Higher Education: The conference report includes a delay in the funding of the second half of the August 2007 payment to universities until FY 2007-08. The first half of the August 2007 payment was delayed in Executive Order 2007-3. This funding delay equals
$69.4 million. The conference report also reduces the operations appropriations to universities by $25.9 million. This reduction is implemented by a proportional reduction in the amount of the operations increase received by each university in the fiscal year.
History, Arts, and Libraries: The conference report includes a $3.6 million GF/GP funding reduction for arts and cultural grants.
Human Services: Appropriation increases of $66.0 million to cover funding shortfalls in the Department are included in the conference report.
Judiciary: The conference report includes a 4.0% funding reduction for the judicial branch.
Legislature: The conference report includes a 4.0% funding reduction for the legislative branch.
State Police: The conference report includes a $1.2 million GF/GP supplemental appropriation designed to eliminate the layoff of 29 at-post State troopers.
Treasury: The conference report contains a $10.0 million GF/GP appropriation for the implementation of the new business tax to replace the repealed single business tax.
The negotiations leading to the conference report on Senate Bill 220 also included several recommendations to transfer State Restricted funds to the GF/GP budget. These transfers are outlined in Attachment A. The State Restricted fund transfers to the GF/GP budget total $167.9 million. These transfers include $35.0 million from the Convention Facilities Fund, $70.0 million from the Refined Petroleum Fund, $30.0 million from the 21st Century Jobs Fund, $20.0 million from the Michigan Conservation Corps Endowment Fund, $7.2 million from the State Campaign Fund, and $5.3 million from the Comprehensive Transportation Fund. These transfers are not included in Senate Bill 220 as separate statutory changes will be required to implement the transfers.
Fiscal Analyst: Gary S. Olson
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb220/0708