FY 2007-08 LABOR AND ECONOMIC GROWTH BUDGET S.B. 234 (S-1): SENATE-PASSED


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Senate Bill 234 (S-1 as passed by the Senate)
Committee: Appropriations

Changes from FY 2006-07 Year-to-Date:
  1. Workforce Training Subgrantees. The Governor included additional Federal Workforce Investment Act funds and added $40.0 million GF/GP for the proposed No Worker Left Behind program which would provide two years of free tuition for displaced workers. The Senate did not include the GF/GP increase. 24,985,100
2. Michigan Nursing Corps. The Governor recommended $15.0 million to increase numbers of nurses and nurse faculty. The Senate included a $100 placeholder. 100
3. 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 concurred. 13,476,700
4. Bureau of Fire Services Fund Shift. The Governor removed $3,121,500 of corporate and securities fee revenue, replacing it with funds from the proposed increase in liquor license fee revenue. The savings in corporation and securities fees would lapse to the General Fund. The Senate did not include the increase in liquor license fee revenue, instead replacing the corporate and securities fee revenue with $3,121,500 GF/GP and increasing by another $299,900 GF/GP 299,900
5. Fire Protection Grant Fund Shift. The Governor recommended reducing General Fund support by ($3.7 million) and replacing it with $1.9 million from the proposed liquor license fee increase and $1.8 million from the Fire Protection Fund (Driver Responsibility Fees). The Senate did not include the proposed liquor license fee increase, but increased the Fire Protection Fund revenue by $3.2 million and reduced the Liquor Revolving Fund by $1.3 million. 0
6. Bureau of Commercial Services. The Governor's revised recommendation reduced restricted funds by ($3,042,300), reflecting in part cost reductions in a database project. The Senate concurred in the revised recommendation and added 1.0 FTE and $50,000 in restricted fund expenditure authority to implement auctioneer regulation. (3,042,300)
7. Career Education. Executive Order 2007-4 transferred the Career Education program to the Department of Education. (32,820,100)
8. Budgetary Savings. The Senate created this new line (213,700)
9. Centers for Independent Living. The Senate increased this line by $100. 100
10. MSHDA. The Governor's Revised Recommendation increased this by $2.3 million in restricted revenue to accommodate information technology projects and the Section 8 Federal Housing Voucher programs. The Senate concurred. 2,300,000
11. Economic Adjustments. The Governor and Senate concurred. 14,746,600
12. Other Changes. The Governor recommended adjustments in Federal and restricted funds, DIT economics, Human Resources Optimization Charges, and other items. The Senate does not include the proposed increase in construction code fees. (20,439,000)
Total Changes ($706,600)
  FY 2007-08 Senate Gross Appropriation $1,294,045,000
FY 2007-08 LABOR AND ECONOMIC GROWTH BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2006-07 Year to Date:
  1. Standard Language. The Governor reinstated contingency fund language. The Senate did not include. The Senate changed hiring freeze, added preference for veteran-owned businesses in Buy American (Sec. 209), and added new language requiring legislative transfer of Budgetary Savings (Sec. 225).
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. (Sec. 215)
3. Professional Employment Organizations (PEOs). The Governor deleted the prohibition on regulating these organizations more strictly than statute requires. The Senate retained. (Sec. 319)
4. Department Requirements. The Governor deleted the following requirements: 1) administrative law hearings be within 150 miles of the regulated entity; 2) MSHDA collaborate on senior-assisted housing; 3) $50,000 be allocated to print the real estate law and rules book (Red Book); 4) allocate $40,000 to nonprofit organizations from the aggregate industry from MIOSHA; 5) 21.3% limit on the local match requirement for vocational rehabilitation facilities; 6) prohibition on using funds for ergonomics rules more stringent than the Federal voluntary guidelines; and 7) allocate sufficient funds for the operational costs of the Michigan Works! Service Centers. The Senate concurred with deleting 1), 2), and 7). The Senate retained 3) as "up to $50,000" (Sec. 357), 4) (Sec. 365), 5) (Sec. 403), and 6) (Sec. 355).
5. Office of Financial and Insurance Services. The Governor deleted: The prohibition the use of funds to prevent using credit scoring for insurance premiums; providing HMO financial filings to the fiscal agencies; boilerplate transfer of $7.0 million from the consumer finance fees fund to the General Fund in FY 2006-07. The Senate retained credit scoring (Sec. 337) and HMO reports (Sec. 340) and concurred on Consumer Finance Fee deletion.
6. MSHDA Blight Elimination. The Governor recommended that MSHDA allocate $6,250,000 each year for four years to eliminate blight in eligible Cities of Promise. The Senate changed this to a report on the program and intent language that $750,000 be allocated to Saginaw for building demolition. (Sec. 370)
7. Fire Service Fees. The Senate added new intent language regarding a review of the fire services provided to public and State-owned buildings in relation to the fee structure in Sec. 310. (Sec. 371)
8. Workers' Compensation Voluntary Pay. The Senate added language prohibiting the Agency from using funds to change the voluntary pay system currently in place. (Sec. 372)
9. Low Income Energy Efficiency Fund. The Senate added an accelerated schedule for proposals and grant awards for low income energy efficiency fund grants. (Sec. 375)
10. Liquor Reports. The Senate added new language requiring a report on estimated State revenue foregone to illegal resale and transportation of liquor. (Sec. 376)
11. Disabled Veteran Outreach Specialist. The Governor changed requirement to assign a specialist to each Michigan Works! Agency either full- or part-time, allowing availability in person or by phone as resources permit. The Senate concurred but did not include "as resources permit". (Sec. 410)
12. 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 concurred. (Sec. 430)
13. Michigan Nursing Corps. The Governor added language establishing guidelines for the recipients of this scholarship program. The Senate changed the intent language for a program with two pilot projects. (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. Unexpended funds will be placed into a work project account until September 30, 2009. The Senate changed to allow for the program. (Sec. 432)
15. JET Report. The Senate added new reporting language on the JET Pilot and 50.0% expansion program. (Sec. 433)
16. After School Partnership. The Senate added new language allocating $25,000 from part 1 for this program (Sec. 434) and a section for Before and After School programs (Sec. 436).
17. School Eligibility for Workforce Training Funds. The Senate added language to require the department to ensure that school districts are an eligible provider for Workforce Investment Act and No Worker Left Behind programs. (Sec. 435)

Date Completed: 8-30-07 Fiscal Analyst: Elizabeth Pratt and Maria Tyszkiewicz 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_sp.doc