FY 2008-09 CAPITAL OUTLAY BUDGET H.B. 5803: GOVERNOR'S RECOMMENDATION


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House Bill 5803 (as introduced)
Committee: Appropriations

FY 2007-08 Year-to-Date Gross Appropriation*	$244,826,600
Changes from FY 2007-08 Year-to-Date: *Note: There is no enacted annual FY 2007-08 budget for Capital Outlay. The Governor submitted a recommendation for FY 2007-08 on January 14, 2008. This analysis uses the Governor's FY 2007-08 recommendation as a base for comparison purposes related to analyzing the FY 2008-09 recommendation.
1. State Building Authority (SBA) Projects. For FY 2007-08, the Governor recommended $100 line item authorizations for projects that would result in the issuance of $561.8 million in new State Building Authority debt. No SBA projects are included in the Governor's recommendation for FY 2008-09.	(2,900)
2. Department of Military Affairs. Adjustments included $40.0 million (all Federal) for a Military Operations on Urban Terrain Training Course at Camp Grayling, $500,000 (State Restricted) for DMA Land Acquisitions, and $900,000 ($450,000 Federal/$450,000 GF/GP) for repairs at various Armories. Other changes included a $3.0 million reduction based on available Federal funds and a reduction of $11,500,000 related to FY 2007-08 projects.	26,900,000
3. DNR - Parks and Forest Roads. The Governor included $1.5 million for State park repair and maintenance based on private fund raising efforts and a net increase of $800,000 for forest roads, bridges, and facilities based on available restricted revenue.	2,300,000
4. DNR - Waterways Boating Program. Adjustments included $500,000 for Port Austin site improvements, $300,000 for Phase V of the Mackinaw City Marina, $2.4 million for Metro Beach Metropark dock replacements and other upgrades, $500,000 for land acquisitions, a reduction of $4,699,400 associated with FY 2007-08 projects and a reduction of $2,185,000 related to available Federal and State restricted revenue.	(3,184,400)
5. Department of Transportation - Buildings and Facilities. Adjustments included $1,915,000 to relocate the Port Huron Transportation Service Center (this change reflects Phase 1 of $21.1 million in improvements related to enhanced border security) $945,000 for the Fennville Maintenance Garage Expansion Project, $1,922,000 for salt storage buildings, containment control systems, and miscellaneous special maintenance, and a reduction of $9,955,000 associated with one-time FY 2007-08.	(5,173,000)
6. Department of Transportation - Airport Improvement Programs. Adjustments for FY 2008-09 based on projects and available revenue included a reduction of $29,843,000 in Federal funds (from $162,867,600 to $133,024,600), a reduction of $1,321,400 in State Restricted Aeronautics Fund (from $5,114,300 to $3,792,900), and an increase of $15,464,800 in local aeronautics match (from $15,209,400 to 30,674,200).	(15,699,600)
Total Changes	$5,140,100
FY 2008-09 Governor's Recommendation	$249,966,700

FY 2008-09 CAPITAL OUTLAY BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2007-08 Year to Date:

1. Buy American Intent Language. Prohibited use of funds for purchase of foreign goods or services if competitively priced and comparable quality American goods or services are available. Also provided that preference should be given to goods and services manufactured or provided by Michigan businesses if they are competitively priced and of comparable quality. The Governor modified this section by also including a preference for businesses owned and operated by veterans, which is consistent with most appropriation bills. (Sec. 204)

2. Internet Reports. Required use of the Internet to fulfill reporting requirements unless otherwise specified. The Governor modified this section by removing the condition "unless otherwise specified" from the section. (Sec. 205)

3. Deprived and Depressed Communities. Required director of each department receiving funds in Part 1 to take all reasonable steps necessary to ensure that businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies. (Sec. 206)

4. One-time Sections. The Governor eliminated sections related to her FY 2007-08 Capital Outlay recommendation that were one-time in nature, including reprogramming authorizations in P.A. 530 of 2002 and P.A. 297 of 2005, language related to the Wayne County Community College Northwest Campus Replacement, and language delineating the alternative energy incentive tied to FY 2007-08 SBA recommendations.

Date Completed: 2-11-08 Fiscal Analyst: Bill Bowerman Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. HIcap_gr