FY 2008-09 AGRICULTURE BUDGET H.B. 5807 (S-1): FLOOR SUMMARY


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House Bill 5807 (S-1 as reported) Throughout this document Senate means Appropriations Committee.
Committee: Appropriations

Changes from FY 2007-08 Year-to-Date:
  1. Bovine Tuberculosis. The Governor recommended an increase in General Fund dollars for the effort to maintain split-state status and eradicate Bovine TB from the State. The House and Senate concurred. 1,700,000
2. Ag Equine Fund. The Senate moved $1,183,600 of appropriations from the Agriculture Equine Industry Development Fund from the Bovine TB eradication program to increase the purses and supplements for horse racing. 0
3. Cooperative Resources Management Initiative. The House added $1.0 million General Fund support for grants to local conservation districts to provide services to private foresters. The Senate included an IDG from the Natural Resources budget. 1,800,000
4. Building and Track Improvements. The House added $963,200 in General Fund dollars for building and track improvements at State and county fairs. The Senate included a placeholder. 100
5. PPPM Reduction. The Governor recommended a reduction in Federal appropriations for the Pesticide and Plant Pest Management program to reflect the anticipated loss of Federal funding. The House and Senate concurred. (1,400,000)
6. Cervidae Licensing Fees. The Senate added funding from cervidae licensing and inspection fees to support the captive cervidae health program. 75,000
7. Emerald Ash Borer Reduction. Due to an expected decline in the funding level, the Governor included a reduction in Federal funding for efforts to address the presence of Emerald Ash Borer in the State. The House and Senate concurred. (5,000,000)
8. FTE Adjustments. On a statewide basis, the Governor adjusted the appropriation of full-time equated positions to match the number that can be supported by dollar appropriations and to more accurately reflect program effort. This was a reduction of 100.0 FTEs for the Department of Agriculture. The House and Senate concurred. 0
9. Management Services Reduction. The Governor included a General Fund reduction to Management Services. The details of how this reduction will be implemented are not determined yet. The House and Senate concurred. (150,000)
10. Human Resources Consolidation. The budget completed consolidation of human resources function by transferring the funding and 5.0 FTEs to the Department of Management and Budget. (642,500)
11. Economic Adjustments. The budget included economic adjustments for salaries and wages, retirement, worker's compensation, rent, and utilities. 184,200
12. Other Changes. The budget includes changes for internal audit consolidation and adjustments to align appropriations with anticipated revenue. The Senate created a $100 placeholder for fruit and vegetable processing inspections. (81,000)
Total Changes ($3,514,300)
  FY 2008-09 Senate Appropriations Committee Gross Appropriation $104,855,000
FY 2008-09 AGRICULTURE BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2007-08 Year to Date:
  1. Sections Removed. The Governor, House, and Senate removed sections regarding per diem rates, PPPM reductions and fees, and building and track improvements.
2. Sections Retained. The House and Senate retained sections removed by the Governor related to notification to the Legislature of grants distributed, prohibition on disciplinary action, the MSU Pavilion, minimum number of employees in selected divisions, implementation of efficiency mechanisms, motor fuel quality inspections, agricultural statistics matching funds, hiring freeze exemptions, e-inspector carryforward funds, Bovine TB funds distribution, Bovine TB-free status, electronic animal ID tagging to sale yards, expansion of electronic tagging, VHS surveillance, Bovine TB vacancies, feed testing, Federal migrant labor housing funding, NRCS technical assistance match, environmental quality incentives program matching funds, inter-county drains, export program, agriculture diversity, diversity in grants, Agriculture Development Fund receipts, outstanding ticket winning revenue, and thoroughbred purse and program money in escrow. (Sections 214, 224, 225, 231, 232, 304, 306, 405, 407, 452, 454, 455, 456, 458, 459, 501, 603, 605, 606, 607, 705, 707, 708, 811, and 902)
3. Sections Retained. The Senate retained sections on the impact of enacted legislation, local public health funding, and specialty block grant funding. (Sections 229, 403, and 712)
4. Investment Return. The House modified a current report to require it address the impact of major department areas, comparing expenditures to economic impact. The Senate concurred. (Sec. 227)
5. Posting of Expenditures. The House directed the Department to post a list of all expenditures on an Internet site. The Senate concurred. (Sec. 233)
6. Attendance at Training Seminars. The Senate added language prohibiting more than one departmental employee to attend the same training seminar, unless the travel is paid by private or Federal funds and required for more than one person. (Sec. 234)
7. Sustainable Food Systems. The Senate authorized providing funds to the C.S. Mott Group for creating a matched savings tool for emerging farmers and to leverage Federal dollars. (Sec. 235)
8. Reports Retained. The House retained reports eliminated by the Governor on food-borne outbreaks, Bovine TB progress, the Agriculture Development Fund, activities of the Grape and Wine Council, and simulcast license fee revenues. The Senate concurred. (Sections 402, 457, 706, 709, and 801)
9. Indemnification Payments. The Governor removed the reporting requirement and removed the authorization to make indemnification payments for livestock loss due to wolves, coyotes, or cougars. The House and Senate retained the current year language. (Sec. 212)
10. Local Health Grants. The Governor removed the reporting requirement on monitoring local health departments for uniform standards and does not instruct the Director to seek additional funding for food-borne outbreak controls. The House and Senate retained the current year language. (Sec. 401)
11. Ag Equine Fund Reductions. If revenue to the Ag Equine Fund declines, the Senate required that the Bovine TB program take a proportional reduction in appropriations from that fund. (Sec. 460)
12. Agriculture Business Development. The Senate added intent language that the MI Strategic Fund collaborate with the Department to promote agriculture business development. (Sec. 711)
13. AEIDF Reporting. The Senate revised the report on the Agriculture Equine Industry Development Fund to require semiannual updates on spending targets. (Sec. 805)
14. Audit of Tracks. The Senate required the Office of Racing Commissioner to conduct financial audits of licensed pari-mutuel tracks and certified horseman's organizations. (Sec. 903)

Date Completed: 5-22-08 Fiscal Analyst: Jessica Runnels Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hiagr_fs.doc