FY 2007-08 MILITARY AND VETERANS AFFAIRS BUDGET S.B. 235 (P.A. 126): ENACTED


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FY 2006-07 Year-to-Date Gross Appropriation	$123,762,000
Changes from FY 2006-07 Year-to-Date:
Items Included by the Senate and House
1. The House passed version of S.B. 235 contained only zero appropriations for all line items, creating points of difference on every line.
Conference Agreement on Items of Difference
2. Regional Training Institute. The operational funding of a new Regional Training Institute in Battle Creek using restricted (revolving) funds.	1,500,000
3. Military Retirement Pay Increase. GF/GP funds added to pay for anticipated payments to retirees.	78,900
4. Veterans Homes' Administrative Reductions. GF/GP administrative reductions for the Grand Rapids home ($629,000) and the D.J. Jacobetti Home ($172,000).	(801,000)
5. Veterans Homes' Fund Shift. A shift from GF/GP of $907,400 to available restricted and Federal funding.	0
6. Armory Maintenance. The elimination of four vacant armory maintenance mechanics positions for a GF/GP savings.	(300,000)
7. Federal Support for Facilities. Additional Federal support for Headquarters and Armories ($600,000) and training sites and logistical facilities ($2,175,000).	2,775,000
8. Human Resources Optimization. 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. 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. Adjustment for Executive Order 2007-3 Reductions, P.A. 17 and P.A. 41 of 2007.	(859,400)
11. Placeholder Increases. The Senate added $1,000 to several line items which the Conference Report did not include.	0
12. Budgetary Savings. The Senate added a GF/GP reduction unit, not included in the Conference Report.	0
13. Economic Adjustments. Adjustments include a GF/GP total of $1,723,900.	3,295,700
14. Other Changes. Increases 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
15. Special Maintenance. The Conference Report shifted $500,000 GF/GP from the Guard Tuition Program to a special maintenance program for armories.	0
Total Changes	$5,668,700
FY 2007-08 Enacted Gross Appropriation	$129,430,700

FY 2007-08 MILITARY AND VETERANS AFFAIRS BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2006-07 Year to Date:

Items Included by the Senate and House

1. 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)

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

Conference Agreement on Items of Difference

3. Hiring Freeze. The Senate added a revised version of current-year language requiring a Civil Service hiring freeze. The Conference Report included a new version provided by Leadership.(Sec. 205)

4. Legal Services. The Senate added a new section limiting the hiring of any legal services which could be performed by the Attorney General. The Conference Report included a compromise version provided by Leadership. (Sec. 228)

5. Policy Change Reports. The Senate added new language requiring the reporting of any policy changes made to implement enacted legislation be made to the Legislature. The Conference Report included a compromise version provided by Leadership. (Sec. 231)

6. Budgetary Reduction. The Senate added new language requiring reductions made via the budgetary reduction unit be accomplished by Legislative transfer not included in the Conference Report. (Sec. 232)

7. Buy American. The Senate added a revised version of current-year language requiring a priority be given to American/Michigan businesses when State purchases are made by adding a priority to those owned and operated by veterans included in the Conference Report. (Sec. 209)

8. Contingency Funds. The Conference Report included language allowing for the legislative transfer of up to $5.0 million Federal, $2.0 million Restricted, $100,000 Private, and $100,000 Local Funds. (Sec. 232)

9. Post, Posthumous Funds. The Conference Report included language requiring 30-day notification prior to the Department altering the spending plan of the Board of Managers at a veteran's home. (Sec 604)

10. Efficiency Report. The House-passed bill included an efficiency report requirement not included in the Conference Report. (Sec. 231)

Date Completed: 11-02-07 Fiscal Analyst: Bruce Baker Bill Analysis @ http://www.senate.michigan.gov/sfa himil_en.doc