0235: GOVERNOR'S RECOMMENDATION (2-16-07) - FY 2007-08 MILITARY AND VETERANS AFFAIRS BUDGET

FY 2007-08 MILITARY AND VETERANS AFFAIRS BUDGET S.B. 235: GOVERNOR'S RECOMMENDATION

Senate Bill 235 (as introduced)
Committee: Appropriations

FY 2006-07 Year-to-Date Gross Appropriation	$122,902,600
Changes from FY 2006-07 Year-to-Date:
1. Regional Training Institute. The Governor recommended the operational funding of a new Regional Training Institute in Battle Creek using restricted (revolving) funds.	1,500,000
2. Military Retirement/ Pay Increase. GF/GP funds are added to pay for anticipated payments to retired Michigan Army and Air National Guard per P.A.150 of 1967 ($74,000) and a Special duty Officer pay increase as provided by the National Defense Authorization Act ($4,700).	78,900
3. Grand Rapids Veterans Home Administrative Reductions. The Governor recommended a GF/GP administrative reduction for the Grand Rapids home.	(370,000)
4. Grand Rapids Veterans Home Fund Shifts. The Governor recommended a shift from GF/GP of $630,000 to available federal funding.	0
5. D.J. Jacobetti Veterans Home Fund Shift. The Governor recommended a shift from GF/GP of $277,400 to available restricted and Federal funding.	0
6. Armory Maintenance. The Governor recommended the elimination of four vacant armory maintenance mechanics for a GF/GP savings.	(300,000)
7. Federal Support for Facilities. The Governor recommended available additional Federal support for Headquarters and Armories ($600,000) and training sites and logistical facilities ($175,000).	775,000
8. Human Resources Optimization. The Governor recommended an adjustment to reflect increased user charges ($1,700) and removal of capitalization of hardware and software costs added in FY 2005-06 ($14,700).	(13,000)
9. Sick Leave Payouts. The Governor recommended the inclusion of non-DIT GF/GP savings related to the five year payout of sick leave for FY 2001-02 early retirees.	(43,100)
10. Economic Adjustments. Adjustments include a GF/GP total of $1,723,900.	3,295,700
11. Other Changes. The Governor recommended an increase for the Starbase program ($57,000), the Mackinac Bridge walk security costs ($5,000) and reductions for Information Technology ($3,600) and lease revenue from the Grand Rapids Home ($22,800).	35,600
Total Changes	$4,959,100
FY 2006-07 Governor's Recommendation	$127,861,700

FY 2007-08 MILITARY AND VETERANS AFFAIRS BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2005-06 Year to Date:

Deleted Boilerplate Sections

1. Privatization. Requires privatization plan notice. (Sec. 207)

2. Report Requirements. Requires Department to create and retain reports. (Sec. 211)

3. Armory Closing or Consolidation. Requires consultation with Legislature prior to armory closing or consolidation. (Sec. 213)

4. State Cemeteries. Requires Department to fund State military cemeteries in Crawford and Dickinson Counties should legislation and funding permit their construction (Sec. 214)

5. Disciplinary Action. Prohibits disciplinary action against employee for communicating with the Legislature. (Sec. 226)

6. Sale of Property. Requires 60-day notification prior to the sale of Department property. (Sec. 227)

7. Armory Rental. Allows for rental fees of Armories and equipment. (Sec. 301)

8. Veterans Homes' Expenditures. Prohibits expenditure for anything other than for veterans and veterans' families. (Sec. 601)

9. Veterans Homes' Report. Requires annual report of State veterans' homes. (Sec. 602)

10. County Counselor Assistance. Requires steps to assist county veterans' counselors to obtain training. (Sec. 704)

Amended Boilerplate Sections

11. Hiring Freeze. The Governor changed the interval of required hiring freeze reports to the Legislature from monthly to quarterly. (Sec 205)

12. Challenge Program. The Governor added a requirement that efforts be made to insure at least 75% of the program participants are from families at or below 200% of the Federal poverty level. (Sec. 302)

13. Veterans Service Organization Grants. The Governor deleted an efficiency report requirement. (Sec.501)

New Boilerplate Sections

14. Contingency Funds. The Governor included language allowing for the expenditure of certain funds listed in boilerplate by the transfer process. The list includes a total of $5.0 million Federal, $2.0 million restricted, $100,000 local and $100,000 in private funds. (Sec. 228)

15. Regional Training Institute (RTI) Creation. States creation and purpose of new training facility in Battle Creek with funding from a revolving account. Requires Legislative report. (Sec. 229)

16. Regional Training Institute (RTI) Guidelines for Usage. States availability for use by various entities of the RTI. (Sec. 230)

Date Completed: 2-16-07 Fiscal Analyst: Bruce Baker Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. himil_gr.doc