0404: FLOOR ANALYSIS (4-19-07) - SUPPLEMENTAL APPROPRIATION BILL

SUPPLEMENTAL APPROPRIATION BILL S.B. 404 (S-1): FLOOR ANALYSIS

Senate Bill 404 (Substitute S-1 as reported)
Sponsor: Senator Ron Jelinek
Committee: Appropriations

CONTENT
The Senate Appropriations Committee on April 18, 2007, reported Senate Bill 404 (S-1). This bill would make supplemental appropriations for the fiscal year ending September 30, 2007. The supplemental appropriations contained in Senate Bill 404 (S-1) 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 will lead to potential layoffs of State employees or a delay in payments to eligible recipients. The appropriations contained in Senate Bill 404 (S-1) total $73.9 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 (S-1).

Capital Outlay

Shiawassee Armory Replacement Project: Recommended by OSB on November 22, 2006. The appropriation would increase the total cost of this armory project from $5.7 million to $6.4 million. The cost increase would 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 would offset 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 would recognize 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 would 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 would be funded with a combination of Federal, local, and private funds. The appropriation would provide the funding for 45.0 full-
time equated positions in Human Services field offices. These workers would be placed in community agencies in order to help clients achieve success in reaching independence.

Department of Labor and Economic Growth Low Income Energy Assistance: Recommended by OSB on February 27, 2007, and March 15, 2007. The appropriation would provide $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. There is language that allocates these funds to the Department of Human Services to support their low income energy assistance programs.

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

Workforce Development: Recommended by OSB on March 15, 2007. This appropriation of $4.7 million in Federal funds is designed to assist workers whose jobs are affected by foreign trade.

Department of State Police At-Post Troopers: Recommended by OSB on April 11, 2007. The appropriation would provide $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 will occur at that time unless additional funding is authorized.

FISCAL IMPACT
Senate Bill 404 (S-1) would make supplemental appropriations for the fiscal year ending September 30, 2007. The appropriations contained in the bill total $73.9 million of Gross appropriations and $0.0 million of General Fund/General Purpose (GF/GP) appropriations.

Date Completed: 4-19-07 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