FY 2006-07 SUPPLEMENTAL S.B. 436: ENROLLED SUMMARY
Senate Bill 436 (as enrolled)
Sponsor: Senator Ron Jelinek
Committee: Appropriations
Date Completed: 5-29-07
CONTENT
Senate Bill 436 provides for supplemental appropriations for FY 2006-07. The bill contains positive supplemental appropriations to address funding shortfalls in several State departments. These funding shortfalls are a result of caseload and expenditure adjustments and adjustments to reflect the actual levels of Federal and State restricted revenue. The positive supplemental appropriations in the bill total $73.5 million of Gross appropriations and $209.2 million of General Fund/General Purpose (GF/GP) appropriations, and include the appropriation of State funds for the implementation of a new business tax plan.
Senate Bill 436 also contains a significant number of appropriation reductions to State departments, the Legislature, and the Judiciary. These appropriation reductions total $153.6 million of Gross appropriations and $139.7 million of GF/GP appropriations. The appropriation reductions address a significant portion of the projected FY 2006-07 GF/GP budget deficit. Following is a brief summary of the major appropriations contained in Senate Bill 436. Attachment A provides a department-by-department summary of the appropriations contained in the bill.
Community Colleges: The bill includes a delay in the funding of the second half of the August 2007 payment to community colleges until FY 2007-08. The first half of the August 2007 payment was delayed in Executive Order 2007-3. This funding delay equals $12.9 million.
Community Health: The bill includes appropriation increases of $105.4 million GF/GP to reflect unrealized savings included in the original budget and fund source adjustments. The appropriation reductions include a $3.2 million reduction in Healthy Michigan Fund programs and an increase in hospital and nursing home Quality Assurance Assessment Program (QAAP) gainsharing revenue.
Corrections: The bill includes appropriation increases of $26.6 million GF/GP to cover funding shortfalls in the Department.
Executive Office: The bill includes a 4.0% funding reduction for the Executive Office.
Higher Education: The bill includes a delay in the funding of the second half of the August 2007 payment to universities until FY 2007-08. The first half of the August 2007 payment was delayed in Executive Order 2007-3. This funding delay equals $69.4 million. The bill also reduces the operations appropriations to universities by $25.9 million. This reduction is implemented by a proportional reduction in the amount of the operations increase received by each university in the fiscal year.
History, Arts, and Libraries: The bill includes a $3.6 million GF/GP funding reduction for arts and cultural grants.
Human Services: The bill includes an appropriation increase of $66.0 million to cover funding shortfalls in the Department.
Judiciary: The bill includes a 4.0% funding reduction for the judicial branch.
Legislature: The bill includes a 4.0% funding reduction for the legislative branch.
State Police: The bill includes a $1.2 million GF/GP supplemental appropriation designed to eliminate the layoff of 29 at-post State troopers.
Treasury: The bill contains a $10.0 million GF/GP appropriation for the implementation of the new business tax to replace the repealed single business tax. Boilerplate language directs $7.2 million in State Campaign Fund revenue to the State General Fund.
Fiscal Analyst: Gary S. 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. sb436/0708