0404: ENROLLED SUMMARY (5-4-07) - SUPPLEMENTAL APPROPRIATION BILL

SUPPLEMENTAL APPROPRIATION BILL S.B. 404: ENROLLED SUMMARY

Senate Bill 404 (as enrolled) PUBLIC ACT 7 of 2007
Sponsor: Senator Ron Jelinek
Senate Committee: Appropriations
House Committee: Appropriations

Date Completed: 5-4-07

CONTENT

The Senate on May 3, 2007, enrolled Senate Bill 404, and the Governor signed the bill on May 4, 2007. This bill makes supplemental appropriations for the fiscal year ending September 30, 2007. Most of the supplemental appropriations contained in Senate Bill 404 are appropriations recommended by the Office of State Budget (OSB) that involve pressing time issues. Failure to approve these supplemental appropriations in a timely manner would have led to potential layoffs of State employees or a delay in payments to eligible recipients. The appropriations contained in Senate Bill 404 total $77.5 million of Gross appropriations and $0.0 million of General Fund/General Purpose (GF/GP) appropriations. The following is a brief summary of the supplemental appropriation items contained in Senate Bill 404.

Capital Outlay

Shiawassee Armory Replacement Project: Recommended by OSB on November 22, 2006. The appropriation increases the total cost of this armory project from $5.7 million to $6.4 million. The cost increase will be funded with Federal and State Restricted funding. This construction project was authorized in Public Act 193 of 2003 and Public Act 109 of 2005.

Department of Community Health Health Information Technology Initiative: Recommended by OSB on February 8, 2007. The appropriation of $7.3 million of State Restricted funding is for financing the health information technology project. This funding offsets a GF/GP appropriation reduction contained in Executive Order 2007-3.
Dental Sealants: Recommended by OSB on March 15, 2007. The appropriation of $250,000 of private funds recognizes a private grant from Delta Dental that will provide dental sealants for low-income children.

Department of Environmental Quality Fund Shifts: Recommended by OSB on November 27, 2006. There is a shift of $150,000 from Federal funds to State Restricted revenue in the Air Quality Program, and a shift of $737,000 from Federal funds to State Restricted revenue in the Land and Water Management Program. Enacting the fund shifts will avoid the layoff of 20 employees scheduled to take effect May 7, 2007.

Department of Human Services Donated Funds Positions: Recommended by OSB on December 6, 2007. The appropriation of $3.7 million of Gross appropriations will be funded with a combination of Federal, local, and private funds. The appropriation provides the funding for 45.0 full-time equated positions in Human Services field offices. These workers will be placed in community agencies in order to help clients achieve success in reaching independence.

Central Support Accounts: Recommended by OSB on December 6, 2007. This is a $171,000 appropriation reduction in rental payments. The reduction is made up of a combination of Federal and GF/GP funding. The savings result from the cancellation of leases on unoccupied local offices in Lincoln Park and Detroit. Section 401 of the bill is boilerplate language dealing with these lease cancellations.

Public Assistance: Not recommended by OSB. The House inserted $63,000 of GF/GP appropriations for the Family Independence Program.

Department of Labor and Economic Growth Low Income Energy Assistance: Recommended by OSB on February 27, 2007, and March 15, 2007. The appropriation provides $22.0 million of State Restricted funding for low-income energy assistance programs. These funds result from payments to the State by Detroit Edison and Consumers Energy from electricity rate increases approved by the Public Service Commission. Section 501 of the bill allocates these funds to the Department of Human Services to support its low-income energy assistance programs.

Job Training Grants: Recommended by OSB on February 27, 2007. The appropriation provides $35.0 million of Federal funding for employment and workforce training programs. The majority of the funding will be allocated to local Michigan Works agencies.

Workforce Development: Recommended by OSB on March 15, 2007. This appropriation of $6.4 million in Federal funds is designed to assist workers whose jobs are affected by foreign trade.

Workforce Development: Recommended by OSB on February 27, 2007. This appropriation of $2.0 million of Federal funds is for workforce training programs.

Department of State Police At-Post Troopers: Recommended by OSB on April 11, 2007. The appropriation provides $400,000 of private funds for at-post troopers. The funding is from a private donation from the Michigan State Police Troopers Association and is expected to delay the layoff of 29 troopers until June 2007. The layoff of these troopers would have occurred at that time unless additional funding was authorized. Section 1101 of the bill also repeals a requirement that a State Police trooper training school be held in August 2007.
FISCAL IMPACT
Senate Bill 404 makes supplemental appropriations for the fiscal year ending September 30, 2007. The appropriations contained in the bill total $77.5 million of Gross appropriations and $0.0 million of General Fund/General Purpose (GF/GP) appropriations.

Fiscal Analyst: Gary 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. sb404/0708