FY 2007-08 LABOR AND ECONOMIC GROWTH BUDGET S.B. 234 (CR-1): CONFERENCE REPORT


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Amount Over/(Under) GF/GP Target: $ 0
Changes from FY 2006-07 Year-to-Date:
  Items Included by the Senate and House
1. Job, Education, and Training (JET). The Governor recommended $13,476,700 in FY 2007-08 and 62.0 FTEs for Statewide expansion of JET. The Senate, House and Conference Report concurred. 13,476,700
2. Career Education. Executive Order 2007-4 transferred the Career Education program to the Department of Education. The Senate, House, and Conference Report concurred. (32,820,100)
3. Economic Adjustments. The Governor, Senate, House, and Conference Report concurred. 14,746,600
Conference Agreement on Items of Difference
4. Workforce Training Subgrantees. The Governor included additional Federal funds and added $40.0 million GF/GP for the proposed No Worker Left Behind program. The Senate did not include the GF/GP increase. The House concurred with the Governor. The Conference Report concurred with Senate and reduced by an additional $4,350,000 GF/GP. 20,635,100
5. Michigan Nursing Corps. The Governor recommended $15.0 million to increase numbers of nurses and nurse faculty. The Senate included a $100 placeholder. The House included $2,228,500. The Conference Report included $1.5 million. 1,500,000
6. Bureau of Fire Services Fund Shift. The Governor proposed a fund shift to $3,121,500 from corporation and securities fees to increased liquor license fees. The Senate did not include the liquor license fees, instead added $3,121,500 GF/GP and increased by another $299,900 GF/GP. The House concurred with the Governor. The Conference Report included $3,121,500 GF/GP. 0
7. Fire Protection Grant Fund Shift. The Governor recommended reducing GF/GP by ($3.7 million) and replacing it with $1.9 million of increased liquor license fees and $1.8 million from the Fire Protection Fund. The Senate did not include the liquor license fees, but increased the Fire Protection Fund revenue by $3.2 million and reduced the Liquor Revolving Fund by $1.3 million. The House concurred with the Governor and added $1.8 million GF/GP. The Conference Report concurred with the Senate. 0
8. Bureau of Commercial Services. The Governor's revised recommendation reduced restricted funds by ($3,042,300), due to reductions in a database project. The Senate concurred and added 1.0 FTE and $50,000 in restricted funds for auctioneer regulation. The House concurred with Revised Governor. The Conference Report concurred with the Senate. (3,042,300)
9. Budgetary Savings. The Senate created this new line. The House did not include. The Conference Report concurred with the House. 0
10. Other Changes. The Governor recommended adjustments in Federal and restricted funds, DIT economics, Human Resources Optimization Charges, and other items. The Senate did not include the proposed increase in construction code fees. The House concurred with the Governor. The Conference Report concurred with Revised Governor and added authority for Private Training Grants and interest payment on Federal loans for unemployed claims. (10,720,300)
11. Land Bank. The House increased restricted spending authority for demolition and maintenance of tax reverted properties. The Conference Report concurred. 400,000
12. Housing and Commercial Development Fund. The House included $2,228,500 in this new line item. The Conference Report reduced by ($65,100). 2,163,400
Total Changes $6,479,100
  FY 2007-08 Conference Report Gross Appropriation $1,301,230,700
FY 2007-08 LABOR AND ECONOMIC GROWTH BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2006-07 Year to Date:
  Items Included by the Senate and House
1. JET Statewide Expansion. The Governor recommended new language placing a contingency on the appropriation in part 1 until savings can be documented in FY 2006-07 in 50.0% of the State. The Senate, House and Conference Report concurred. (Sec. 430)
Conference Agreement on Items of Difference
2. Report on Implementation of Legislation; Limitation on Rules. The Senate added a report on policy changes made to implement legislation, and prohibited use of funds for administrative rules, unless rules reduce the disproportionate impact on small businesses. The House did not include. The Conference Report concurred with the Senate. (Sec. 215)
3. Contingency Funds. The Governor and House included contingency fund language. The Senate did not include. The Conference Report concurred with the House. (Sec. 218)
4. Efficiency Improvement. The House added language requiring the Department to implement continuous efficiency improvement mechanisms and report on savings. The Senate did not include. The Conference Report concurred with the House. (Sec. 222)
5. Professional Employment Organizations (PEOs). The Governor and House deleted the prohibition on regulating these organizations more strictly than statute requires. The Senate retained. The Conference Report concurred with the House. (Sec. 319)
6. Credit Scoring. The Governor and House deleted the prohibition on the use of funds to prevent using credit scoring for insurance premiums. The Senate retained. The Conference Report concurred with the Senate. (Sec. 337)
7. Ergonomics. The Governor and House deleted, and the Senate retained, a prohibition on using funds for ergonomics rules more stringent than the Federal voluntary guidelines. The Conference Report concurred with the Senate. (Sec. 355)
8. Aggregate Industry Allocation. The Governor and House deleted, and the Senate retained, a $40,000 allocation for training to nonprofit organizations representing the aggregate industry. The Conference Report concurred with the Senate. (Sec. 357)
9. MSHDA Blight Elimination. The Governor recommended that MSHDA allocate funds to eliminate blight in eligible Cities of Promise. The Senate changed this to a report and intent language that $750,000 be allocated to Saginaw for building demolition. The House did not include. The Conference Report modified the intent language to include $750,000 allocations to Flint and Saginaw. (Sec. 370)
10. Workers' Compensation Voluntary Pay. The Senate added language prohibiting the Agency from using funds to change the voluntary pay system currently in place. The House did not include. The Conference Report concurred with the House. (Sec. 372)
11. Low Income Energy Efficiency Fund. The Senate added an accelerated schedule for proposals and grant awards for low-income energy efficiency fund grants. The House did not include. The Conference Report concurred with the Senate. (Sec. 375)
12. Liquor Reports. The Senate added new language requiring a report on estimated State revenue foregone to illegal resale and transportation of liquor and the cost of additional law enforcement. The House did not include. The Conference Report concurred with the Senate and added exploration of technology that would prevent illegal sales. (Sec. 376)
13. Michigan Nursing Corps. The Governor and House added language establishing guidelines for the recipients of this scholarship program. The House made licensed hospitals eligible for funding for clinical nurse instructors. The Senate changed to intent language for two pilot projects. The Conference Report concurred with the House, specified that independent colleges and universities are eligible, and made technical changes. (Sec. 431)
14. No Worker Left Behind. The Governor recommended this new grant program to provide free tuition for up to two years to displaced workers for training that will lead to new careers. The Senate changed to allow for the program. The House limited the program to Federal funds. The Conference Report changed the section to a reporting requirement. (Sec. 432)
15. After School Partnership. The Senate added new language permitting up to $25,000 to be used for this program (Sec. 434) and a section for Before and After School programs (Sec. 436). The House did not include. The Conference Report concurred with the Senate on Sec. 434 and with the House on Sec. 436.
Date Completed: 10-25-07 Fiscal Analyst: Maria Tyszkiewicz Elizabeth Pratt Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hileg_cr.doc