NATURAL RESOURCES & ENVIRONMENTAL PROTECTION

HB 4446, CR-1

Summary: FY 2009-10 Conference Committee

Analyst: Kirk Lindquist

		FY 2009-10	FY 2009-10	FY 2009-10	FY 2009-10	*Difference: Conference* *From FY 2008-09 YTD*
	FY 2008-09 YTD	Executive	House	Senate	Conference	*Amount*	%
IDG/IDT	$22,515,600	$11,235,800	$11,235,800	11,235,800	12,322,900	($10,192,700)	(45.3)
Federal	432,090,700	186,869,600	184,113,000	184,363,000	253,070,700	(179,020,000)	(41.4)
Local	0	0	0	0	0	0	0
Private	4,881,500	6,040,000	5,927,400	5,927,400	6,040,000	1,158,500	23.7
Restricted	392,007,100	392,506,000	385,294,000	385,903,300	389,180,100	(6,103,800)	(1.6)
GF/GP	48,471,600	51,573,600	42,679,200	36,488,500	43,674,400	(4,797,200)	(9.9)
Gross	$899,966,500	$648,225,000	$629,249,400	$623,918,000	$704,288,100	*($195,678,400)*	*(21.7)*
FTEs	3,700.6	3,751.6	3,578.4	3,592.6	3,712.0	11.4	0.3

Note: FY 2008-09 figures reflect supplementals and Executive Order (EO) actions throughJune 12, 2009.

Overview

The budgets for the Departments of Environmental Quality and Natural Resources are included in this appropriations bill.

General Sections of Boilerplate

Sec. 223. Rule Promulgation– DELETED

Requires a report on any policy changes made to implement a public act; DEQ is not allowed to adopt a rule that will apply to a small business if it has a disproportionate economic impact.

Sec. 226. Out-of-State State Employee Training– DELETED

Stipulates that only one state employee may participate in training seminars or professional development conference, unless paid by non-state funds or multiple issues outside of a participants area of expertise are addressed.

Sec. 227. Obsolete Database Systems– DELETED

Requires a plan and cost estimate to replace obsolete or failing computer or database systems.

Sec. 228. Expenditure Reports: FY 2008-09– DELETED

Requires a report of DEQ expenditures in a publicly accessible internet site including the purpose for which the expenditures were made, if funding is available.

Sec. 230. MuskratLake Water Levels– DELETED

Requires the issuance of permits to construct a lake level control structure onMuskrat Lake in Clinton County.

Sec. 231. Pending Permits– NEW

Any permit application pending after a period of 2 years shall be considered administratively complete onJanuary 1, 2010.

Sec. 237. Best Available Retrofit Technologies– NEW

Requires the department to use Best Available Retrofit Technology (BART) standards in actions taken on air pollution permits. Department to pay if a feasibility study of BART is required.

Sec. 238. Program Comparisons With Other States– NEW

Requires Department to compare its regulatory programs with similar activities in other Great Lakes States.

Sec. 240. Permit Program Efficiencies– NEW

Requires Department to study its permit program and report steps to create program efficiencies.

Sec. 241. Beverage Container Fraud– NEW

Requires department to implement 2008PA389.

House Fiscal Agency 9/29/09

ENVIRONMENTAL QUALITY

HB4439, CR-1

Summary: FY 2009-10 Conference Committee

Analyst: Kirk Lindquist

		FY 2009-10	FY 2009-10	FY 2009-10	FY 2009-10	*Difference: Conference* *From FY 2008-09 YTD*
	FY 2008-09 YTD	Executive	House	Senate	Conference	*Amount*	%
IDG/IDT	$18,843,900	$7,433,600	$7,433,600	$7,433,600	$8,520,700	($10,323,200)	(54.8)
Federal	378,433,600	129,599,300	129,349,300	129,599,300	180,218,200	(198,215,400)	(52.4)
Local	0	0	0	0	0	0	0
Private	555,700	658,900	658,900	658,900	658,900	103,200	18.6
Restricted	171,070,700	176,232,300	170,716,000	171,454,300	172,641,300	1,570,600	0.9
GF/GP	38,579,700	33,127,900	33,127,900	26,927,900	26,950,500	(11,629,200)	(30.1)
Gross	$607,483,600	$347,052,000	$341,285,700	$336,074,000	$388,989,600	($218,494,000)	*(36.0)*
FTEs	1,532.7	1,480.7	1,480.7	1,480.7	1,496.1	(36.6)	(2.4)

Note: FY 2008-09 figures reflect supplementals, transfers, and Executive Order (EO) actionsthrough September 18, 2009.

Overview

The Department of Environmental Quality (DEQ) supports environmental protection, conservation, and cleanup and redevelopment programs and regulatory efforts established to protect, restore, and reuseMichigan’s air, water, and land resources. More than half of Department’s annual revenue is collected from permits and licenses.

Major Budget Issues

· Fund Shifts to Restricted Fees ($3,914,500):

Cleanup Revitalization Program (GF/GP to Environmental Protection Fund)

Storage Tank Cleanup Programs (GF/GP to Refined Petroleum Fund)

Solid Waste Programs (GF/GP to Solid Waste Program Fees)

· Drinking Water Revolving Fund Match eliminated ($2,062,500)

· Smaller program reductions/eliminations ($2,703,800):

Aquifer protection, asbestos removal inspections, air program education/outreach, water quality monitoring, lab certification, radiological protection, treatment plant operator certification & training

· Necessary Legislation: Air Renewable Operating Permit Fee changes and increases, sunsets for storm water and NPDES Fees, Wetlands regulations,Marina operating permits, Aquifer Protection Program

· One-time Federal Stimulus Grant funding deleted: ($248,600,000).

· New Federal Program Added: Great Lakes Restoration Initiative: $50,000,000.

Major Budget Changes From FY 2008-09 YTD Appropriations	FY 2008-09 YTD	Conference Change From YTD
*1. Wetlands Regulatory Program: Turn back to the Federal Govt.* Extends funding for a partial year (full year support depends on provisions in yet to be passed implementing legislation). Current year funding levels: Field Permitting $2.5 million Great Lakes Shorelands.............................................................. $0.7 million Water Management $0.7 million Information Technology................................................................ $0.1 million	FTE Gross Federal Restricted GF/GP	30.0 $4,000,000 0 1,900,000 $2,100,000	0.0 ($2,154,600) 406,900 (461,500) ($2,100,000)
*2. Baseline and Full year FY 2008-09 Executive Order Reductions* General Fund supported programs reduced in FY 2008-09 are reduced. Reductions reflect the continuation of General Fund reductions included in EO 2009-22	Gross IDG/IDT Federal Private Restricted GF/GP	$607,483,600 18,843,900 478,433,600 555,700 171,070,700 $38,579,700	($2,469,900 0 0 0 0 ($2,469,900)
*3. Contaminated Site Cleanup Program* Revenue collected from a 2008 settlement is appropriated from the Environmental Response Fund for site clean up and remediation. Funding from the Cleanup Redevelopment Fund is reduced: $6,000,000.	Gross Private Restricted GF/GP	$22,973,700 155,700 20,788,500 $2,029,500	$0 0 0 $0
*4. Environmental Protection Fund Funding Shifts* GF/GP reduced and replaced by appropriations from the Environmental Protection Fund. Appropriations are made in boiler plate, shifting $1,000,000 from the Cleanup and Redevelopment Trust Fund, and $1,000,000 from the Community Pollution Prevention Fund to the Environmental Protection Fund.	Gross Private Restricted GF/GP	$23,973,700 155,700 20,788,500 $2,029,500	$0 0 2,000,000 ($2,000,000)
*5. Waste and Hazardous Materials Funding Shifts* GF/GP support for the Above Ground Storage Tank, and Underground Storage Tank Programs reduced and replaced with Refined Petroleum Fund (1,400,000). The Solid Waste Management Fund Staff Account (500,300) was reduced and replaced with funding from the perpetual care fund.	Gross Federal Restricted GF/GP	$18,768,900 4,027,500 10,588,900 $4,152,500	$0 0 1,900,300 ($1,900,300)
*6. Drinking Water Revolving Fund Match* Reduces funding for Drinking Water Revolving Fund.	Gross Federal Restricted GF/GP	$85,139,200 71,543,000 11,400,000 2,196,200	($2,062,500) 0 0 ($2,062,500)
*7. Air Quality: Asbestos and Technical Assistance/Outreach* Technical Assistance program for asbestos remediation eliminated.	FTE Gross Federal Restricted GF/GP	236.5 $25,962,000 6,201,100 12,334,200 $7,426,700	(3.0) ($998,000) 0 (100,000) ($898,000)
*8. Pollution Prevention Workshops* Compliance Assistance Workshop programs eliminated.	FTE Gross Federal Restricted GF/GP	48.0 $4,992,600 507,400 3,575,000 $910,200	(5.0) ($897,100) 0 0 ($897,100)
*9. On-site Wastewater Program* Program eliminated.	Gross Federal Restricted GF/GP	$16,176,600 11,788,500 1,386,300 $3,001,800	($600,000) 0 0 ($600,000)
*10. Oil and Gas Regulatory Fund Funding Shifts* Inspection fee revenue for various programs in the Office of Geological Survey replaced by Oil and Gas permit fee revenue, reflecting reassignment of program staff to permit inspections and regulatory support ($780,000).	Gross Restricted	$780,000 $780,000	$0 $0
*11. Aquifer Protection Program* Programeliminated: revenue insufficient to support program.	Gross Restricted	$400,000 400,000	($400,000) (400,000)
*12. Retired Engineers Technical Assistance Program: DELEG* Program transferred to the Department of Energy, Labor and Economic Growth.	Gross Restricted	$1,474,300 $1,474,300	($1,474,300) ($1,474,300)
*13. SoutheastMichigan* Diesel Emissions Reduction Grant** Grant funding forWayne County diesel emissions reduction projects, including busses operated by the Detroit Public Schools. Matching funds provided by Marathon Oil Company.	Gross Federal Private	NA	$500,000 200,000 $300,000
*14. Radiological Protection* Program funding reduced.	Gross IDG/IDT Federal GF/GP	$1,407,100 742,900 274,500 $389,700	($200,000) 0 0 ($200,000)
*15. Air Quality Fees: Renewable Operating Permit Program* Restricted fee would continue the current year GF/GP offset related to Executive Order 2008-21	Gross Restricted	NA	$130,000 $130,000
*16. Economic Adjustments* Provides an adjustment to cover the cost of the 1% salary increase to be provided in FY 2009-10.	Gross Federal Private Restricted GF/GP	N/A N/A N/A N/A N/A	$2,852,500 607,000 3,200 1,613,900 $628,400

Major Budget Changes From FY 2008-09 YTD Appropriations

FY 2008-09 YTD

Conference Change

From YTD

1. Wetlands Regulatory Program: Turn back to the Federal Govt.

Extends funding for a partial year (full year support depends on provisions in yet to be passed implementing legislation).

Current year funding levels:

Field Permitting $2.5 million

Great Lakes Shorelands.............................................................. $0.7 million

Water Management $0.7 million

Information Technology................................................................ $0.1 million

FTE

Gross

Federal

Restricted

GF/GP

30.0

$4,000,000

1,900,000

$2,100,000

0.0

($2,154,600)

406,900

(461,500)

($2,100,000)

2. Baseline and Full year FY 2008-09 Executive Order Reductions

General Fund supported programs reduced in FY 2008-09 are reduced. Reductions reflect the continuation of General Fund reductions included in EO 2009-22

Gross

IDG/IDT

Federal

Private

Restricted

GF/GP

$607,483,600

18,843,900

478,433,600

555,700

171,070,700

$38,579,700

($2,469,900

($2,469,900)

3. Contaminated Site Cleanup Program

Revenue collected from a 2008 settlement is appropriated from the Environmental Response Fund for site clean up and remediation. Funding from the Cleanup Redevelopment Fund is reduced: $6,000,000.

Gross

Private

Restricted

GF/GP

$22,973,700

155,700

20,788,500

$2,029,500

4. Environmental Protection Fund Funding Shifts

GF/GP reduced and replaced by appropriations from the Environmental Protection Fund.

Appropriations are made in boiler plate, shifting $1,000,000 from the Cleanup and Redevelopment Trust Fund, and $1,000,000 from the Community Pollution Prevention Fund to the Environmental Protection Fund.

Gross

Private

Restricted

GF/GP

$23,973,700

155,700

20,788,500

$2,029,500

2,000,000

($2,000,000)

5. Waste and Hazardous Materials Funding Shifts

GF/GP support for the Above Ground Storage Tank, and Underground Storage Tank Programs reduced and replaced with Refined Petroleum Fund (1,400,000). The Solid Waste Management Fund Staff Account (500,300) was reduced and replaced with funding from the perpetual care fund.

Gross

Federal

Restricted

GF/GP

$18,768,900

4,027,500

10,588,900

$4,152,500

1,900,300

($1,900,300)

6. Drinking Water Revolving Fund Match

Reduces funding for Drinking Water Revolving Fund.

Gross

Federal

Restricted

GF/GP

$85,139,200

71,543,000

11,400,000

2,196,200

($2,062,500)

($2,062,500)

7. Air Quality: Asbestos and Technical Assistance/Outreach

Technical Assistance program for asbestos remediation eliminated.

FTE

Gross

Federal

Restricted

GF/GP

236.5

$25,962,000

6,201,100

12,334,200

$7,426,700

(3.0)

($998,000)

(100,000)

($898,000)

8. Pollution Prevention Workshops

Compliance Assistance Workshop programs eliminated.

FTE

Gross

Federal

Restricted

GF/GP

48.0

$4,992,600

507,400

3,575,000

$910,200

(5.0)

($897,100)

($897,100)

9. On-site Wastewater Program

Program eliminated.

Gross

Federal

Restricted

GF/GP

$16,176,600

11,788,500

1,386,300

$3,001,800

($600,000)

($600,000)

10. Oil and Gas Regulatory Fund Funding Shifts

Inspection fee revenue for various programs in the Office of Geological Survey replaced by Oil and Gas permit fee revenue, reflecting reassignment of program staff to permit inspections and regulatory support ($780,000).

Gross

Restricted

$780,000

$780,000

11. Aquifer Protection Program

Programeliminated: revenue insufficient to support program.

Gross

Restricted

$400,000

400,000

($400,000)

(400,000)

12. Retired Engineers Technical Assistance Program: DELEG

Program transferred to the Department of Energy, Labor and Economic Growth.

Gross

Restricted

$1,474,300

$1,474,300

($1,474,300)

($1,474,300)

13. SoutheastMichigan Diesel Emissions Reduction Grant

Grant funding forWayne County diesel emissions reduction projects, including busses operated by the Detroit Public Schools. Matching funds provided by Marathon Oil Company.

Gross

Federal

Private

$500,000

200,000

$300,000

14. Radiological Protection

Program funding reduced.

Gross

IDG/IDT

Federal

GF/GP

$1,407,100

742,900

274,500

$389,700

($200,000)

($200,000)

15. Air Quality Fees: Renewable Operating Permit Program

Restricted fee would continue the current year GF/GP offset related to Executive Order 2008-21

Gross

Restricted

$130,000

$130,000

16. Economic Adjustments

Provides an adjustment to cover the cost of the 1% salary increase to be provided in FY 2009-10.

Gross

Federal

Private

Restricted

GF/GP

N/A

N/A

$2,852,500

607,000

3,200

1,613,900

$628,400

Major Boilerplate Changes From FY 2008-09
*Sec. 223. Rule Promulgation* – DELETED Requires a report on any policy changes made to implement a public act; DEQ is not allowed to adopt a rule that will apply to a small business if it has a disproportionate economic impact.
*Sec. 226. Out-of-State State Employee Training– DELETED* Stipulates that only one state employee may participate in training seminars or professional development conference, unless paid by non-state funds or multiple issues outside of a participants area of expertise are addressed.
*Sec. 227. Obsolete Database Systems– DELETED* Requires a plan and cost estimate to replace obsolete or failing computer or database systems.
*Sec. 228. Expenditure Reports: FY 2008-09– DELETED* Requires a report of DEQ expenditures in a publicly accessible internet site including the purpose for which the expenditures were made, if funding is available.
*Sec. 230. MuskratLake* Water Levels– DELETED** Requires the issuance of permits to construct a lake level control structure onMuskrat Lake in Clinton County.
*Sec. 231. Pending Permits– NEW* Any permit application pending after a period of 2 years shall be considered administratively complete onJanuary 1, 2010.
*Sec. 237. Best Available Retrofit Technologies– NEW* Requires the department to use Best Available Retrofit Technology (BART) standards in actions taken on air pollution permits. Department to pay if a feasibility study of BART is required.
*Sec. 238. Program Comparisons With Other States– NEW* Requires Department to compare its regulatory programs with similar activities in other Great Lakes States.
*Sec. 240. Permit Program Efficiencies– NEW* Requires Department to study its permit program and report steps to create program efficiencies.
*Sec. 241. Beverage Container Fraud– NEW* Requires department to implement 2008PA389.
*Sec. 301. Intent to Fully Fund the Wetlands Program– NEW* Legislature intends to enact a supplemental budget to fully fund the wetland regulatory program with restricted revenues.
*Sec. 501. WMU Geologic Core Research Laboratory– DELETED* States legislative intent that the Office of Geological Survey work withWestern Michigan University to maintain theMichigan basin core research laboratory and to collaborate on other cooperative projects.
*Sec. 301. Wetlands Protection Program Supplemental– NEW* Gives legislative intent to address funding needs for the wetlands regulatory program if amendatory legislation eliminating the program is not passed byOctober 1, 2009.
*Sec. 702. Peer-Reviewed Site Cleanup Criteria– DELETED* Directs DEQ to include cleanup criteria in remedial action plans derived from peer-reviewed risk assessments.
*Sec. 703. Refined Petroleum Cleanup Site List– DELETED* Lists cleanup projects funded through the refined petroleum cleanup program.
*Sec. 304. Restricted Fund Transfer:Cleanup and Redevelopment Trust Fund* – NEW** Transfers $1,000,000 from the Cleanup and Redevelopment Trust Fund to the Environmental Protection Fund.
*Sec. 305. Restricted Fund Transfer: Community Pollution Prevention Fund* – NEW Transfers $1,000,000 from the Community Pollution Prevention Fund to the Environmental Protection Fund.
*Sec. 401. Restricted Fund Transfer: Solid Waste Management Fund* – NEW Transfers $1,500,000 from the Solid Waste Management Fund to the Solid Waste Management Fund Staff Account.
*Sec. 801. Construction Permit Site Review Board– DELETED* States legislative intent that approval by the Site Review Board represents the final approval for construction permit applications referred by DEQ.
*Sec. 901 (current year) Water Quality Enforcement Report– DELETED* Requires report on enforcement and program activities funded from National Pollution Discharge Elimination System Fund.
*Sec. 902. Contaminated* *Lake* *and River Sediments Cleanup Funding– DELETED* Re-appropriates Clean Michigan Initiative funding for theContaminatedLake and River Sediments Cleanup program.
*Sec. 903.* *Michigan* *Agriculture Environmental Assurance Program* –DELETED States legislative intent that DEQ and Department of Agriculture should proportionally reduce their programs if federal funding is less than that received in FY 2007-08.
*Sec. 1102. Scrap Tire Fire Suppression Costs– DELETED* Provides $100,000 for grants to communities for scrap tire suppression costs, provided that owner liability bonds and other available funding sources have been exhausted.
*Sec. 1103. Real-Time Water Quality Monitoring– DELETED* Provides grant toMacomb County and St. Clair County to support real-time water quality monitoring programs in the St. Clair watershed.

Major Boilerplate Changes From FY 2008-09

Sec. 223. Rule Promulgation – DELETED

Requires a report on any policy changes made to implement a public act; DEQ is not allowed to adopt a rule that will apply to a small business if it has a disproportionate economic impact.

Sec. 226. Out-of-State State Employee Training– DELETED

Sec. 227. Obsolete Database Systems– DELETED

Requires a plan and cost estimate to replace obsolete or failing computer or database systems.

Sec. 228. Expenditure Reports: FY 2008-09– DELETED

Requires a report of DEQ expenditures in a publicly accessible internet site including the purpose for which the expenditures were made, if funding is available.

Sec. 230. MuskratLake Water Levels– DELETED

Requires the issuance of permits to construct a lake level control structure onMuskrat Lake in Clinton County.

Sec. 231. Pending Permits– NEW

Any permit application pending after a period of 2 years shall be considered administratively complete onJanuary 1, 2010.

Sec. 237. Best Available Retrofit Technologies– NEW

Requires the department to use Best Available Retrofit Technology (BART) standards in actions taken on air pollution permits. Department to pay if a feasibility study of BART is required.

Sec. 238. Program Comparisons With Other States– NEW

Requires Department to compare its regulatory programs with similar activities in other Great Lakes States.

Sec. 240. Permit Program Efficiencies– NEW

Requires Department to study its permit program and report steps to create program efficiencies.

Sec. 241. Beverage Container Fraud– NEW

Requires department to implement 2008PA389.

Sec. 301. Intent to Fully Fund the Wetlands Program– NEW

Legislature intends to enact a supplemental budget to fully fund the wetland regulatory program with restricted revenues.

Sec. 501. WMU Geologic Core Research Laboratory– DELETED

States legislative intent that the Office of Geological Survey work withWestern Michigan University to maintain theMichigan basin core research laboratory and to collaborate on other cooperative projects.

Sec. 301. Wetlands Protection Program Supplemental– NEW

Gives legislative intent to address funding needs for the wetlands regulatory program if amendatory legislation eliminating the program is not passed byOctober 1, 2009.

Sec. 702. Peer-Reviewed Site Cleanup Criteria– DELETED

Directs DEQ to include cleanup criteria in remedial action plans derived from peer-reviewed risk assessments.

Sec. 703. Refined Petroleum Cleanup Site List– DELETED

Lists cleanup projects funded through the refined petroleum cleanup program.

Sec. 304. Restricted Fund Transfer:Cleanup and Redevelopment Trust Fund – NEW

Transfers $1,000,000 from the Cleanup and Redevelopment Trust Fund to the Environmental Protection Fund.

Sec. 305. Restricted Fund Transfer: Community Pollution Prevention Fund – NEW

Transfers $1,000,000 from the Community Pollution Prevention Fund to the Environmental Protection Fund.

Sec. 401. Restricted Fund Transfer: Solid Waste Management Fund – NEW

Transfers $1,500,000 from the Solid Waste Management Fund to the Solid Waste Management Fund Staff Account.

Sec. 801. Construction Permit Site Review Board– DELETED

States legislative intent that approval by the Site Review Board represents the final approval for construction permit applications referred by DEQ.

Sec. 901 (current year) Water Quality Enforcement Report– DELETED

Requires report on enforcement and program activities funded from National Pollution Discharge Elimination System Fund.

Sec. 902. Contaminated Lake and River Sediments Cleanup Funding– DELETED

Re-appropriates Clean Michigan Initiative funding for theContaminatedLake and River Sediments Cleanup program.

Sec. 903. Michigan Agriculture Environmental Assurance Program –DELETED

States legislative intent that DEQ and Department of Agriculture should proportionally reduce their programs if federal funding is less than that received in FY 2007-08.

Sec. 1102. Scrap Tire Fire Suppression Costs– DELETED

Provides $100,000 for grants to communities for scrap tire suppression costs, provided that owner liability bonds and other available funding sources have been exhausted.

Sec. 1103. Real-Time Water Quality Monitoring– DELETED

Provides grant toMacomb County and St. Clair County to support real-time water quality monitoring programs in the St. Clair watershed.

NATURAL RESOURCES

HB 4446, CR-1

Summary: FY 2009-10 Conference Committee

Analyst: Kirk Lindquist

		FY 2009-10	FY 2009-10	FY 2009-10	FY 2009-10	*Difference: House* *From FY 2008-09 YTD*
	FY 2008-09 YTD	Executive	House	Senate	Conference	*Amount*	%
IDG/IDT	$3,671,700	$3,802,200	$3,802,200	3,802,200	3,802,200	130,500	3.6
Federal	53,657,100	57,270,300	54,763,700	54,763,700	72,852,500	19,195,400	35.8
Local	0	0	0	0	0	0	0
Private	4,325,800	5,381,100	5,268,500	5,268,500	5,381,100	1,056,100	24.4
Restricted	220,936,400	216,273,700	214,578,000	214,449,000	216,538,800	(4,397,600)	(2.0)
GF/GP	9,891,900	18,445,700	9,551,300	9,560,600	16,723,900	6,832,000	69.1
Gross	$292,482,900	$301,173,000	$287,963,700	$287,844,000	$315,298,500	*$22,815,600*	*7.8*
FTEs	2,173.9	2,170.9	2,114.9	2,111.9	2,215.9	42.0	1.9

Note: FY 2008-09 figures reflect supplementals, transfers, and Executive Order (EO) actions throughSeptember 18, 2009.

Overview

The Department of Natural Resources (DNR) manages, conserves, and protectsMichigan’s resources. Programs include forest management, land and minerals management, wildlife and fisheries management, conservation law enforcement, and state parks and forest campgrounds.

Major Budget Issues

· Recommends Consolidation with Department of Environmental Quality

· New Federal Program Added: Great Lakes Restoration Initiative: $15,000,000

· Programs transferred from the Dept. of History, Arts and Libraries in Executive are included: $10,991,200

· Game and Fish Protection Fund programs reduced to reflect reduced revenue: ($8,964,200)

· Federal grant increase for trail development: $1,800,000

· Snowmobile trail easement purchases: $700,000

· Capital Outlay: Parks, Forestry, Waterways: $2,798,200 increase; Gross: $16,991,200

· State Park Motor Vehicle Permit Increase (no increase in appropriation)

· Rebase funded full time positions: Reduced Exec. Rec. by 59.0 FTE

Major Budget Changes From FY 2008-09 YTD Appropriations	FY 2008-09 YTD	Conference Change From YTD
*1. Consolidation with Department of Environmental Quality* The Departments of Natural Resources and Environmental Quality are to be merged. Administrative savings of $350,000 is assumed and will be implemented through the legislative transfer process. Any additional General Fund savings realized through realignment and field office consolidation is to be lapsed at year end. This recommendation is contingent upon issuance and legislative acceptance of a facilitating executive order.	Gross IDG/IDT Federal Private Restricted GF/GP	$292,482,900 3,671,700 53,657,100 4,325,800 220,936,400 $9,891,900	($350,000) 0 0 0 0 ($350,000)
*2. Historic and Museum Programs: Transferred from DHAL* Historical programs are transferred from the Department of History, Arts and Libraries: Mackinac Island State Park.......................................................... $3.4 million State Museum $3.2 million Museum Stores.............................................................................. $0.5 million Heritage Publications.................................................................... $1.0 million Freedom Trail $0.03 million Thunder Bay Underwater Preserve............................................ $0.2 million Mann House $0.1 million State Rent (BOC)............................................................................ $0.9 million Information Technology................................................................ $0.5 million	FTE Gross Private Restricted GF/GP	NA	101.0 $10,991,200 112,600 3,030,7000 $7,847,900
*3. Game and Fish Protection Fund Supported Programs: Reduced* Several programs reduced to reflect expected revenue shortfalls in the Game and Fish Protection Fund-General Purpose: Administrative Units (Various)......................................................... $955,000 Land and Facilities............................................................................ $400,000 Wildlife Management..................................................................... $1,700,000 Fish Production $700,000 Fisheries Resource Management.............................................. $2,200,000 Forestry: Coop. Resource Programs............................................. $220,700 Forest Management Initiatives........................................................... $38,500 Law Enforcement............................................................................ $2,550,000 Inland Fisheries Grants.................................................................... $200,000	Gross Restricted	$64,513,700 $64,513,700	($8,964,200) ($8,964,200)
*4. Baseline and Full year FY 2008-09 Executive Order Reductions* General Fund supported programs reduced in FY 2008-09 are reduced. Reductions reflect the continuation of General Fund reductions included in EO 2009-22 and an additional 10% cut in programs transferred from DHAL. Reductions include Cooperative Resource Programs (101,100), Forest Recreation (100,000), Historical Administration (141,700), and Heritage Publications (345,900).	Gross IDG/IDT Federal Private Restricted GF/GP	$294,528,400 3,802,200 53,802,100 4,745,000 222,287,200 $9,891,100	($1,180,900) 0 0 0 0 ($1,180,900)

*5. National Recreational Trails Grants* TheMichigan share for this grant program for trail development and maintenance is increased. Funds are awarded through a competitive application process.	Gross Private Federal	$2,150,000 50,000 2,100,000	$1,800,000 0 1,800,000
*6. State Parks Funding: Park Endowment Fund Increase* Funding from the State Parks Endowment Fund is increased to make up for deficient revenues from motor vehicle permits and other user fees.	Gross Federal Private Restricted	$44,654,200 120,300 363,900 $44,170,000	$1,000,000 0 0 $1,000,000
7. *State* *Forest* *Management* Revenueincreases, generated during FY 2007-08 through timber harvest activities, are added to the forest management program.	Gross Federal Private Restricted	$15,423,900 922,600 822,800 $13,678,500	$750,000 0 0 $750,000
*8. Snowmobile Trail Easements* Funding, realized through the recently approved fee increase, will be used to purchase or lease easements to lengthen or create snowmobile trails.	Gross Restricted	$0 $0	$700,000 $700,000
*9. Capital Outlay* Proposed funding for FY2009-10 would support state park, forestry, and waterways construction and infrastructure maintenance projects. State Park Endowment Fund support replaces Park Improvement revenue ($2,000,000).	Gross Federal Private Restricted	$14,193,000 1,293,000 1,500,000 $11,400,000	$2,798,200 3,774,100 500,000 ($1,475,900)
*10. Economic Adjustments* Provides an adjustment to cover the cost of the 1% salary increase to be provided in FY 2009-10.	Gross Federal Private Restricted GF/GP	NA	$4,150,100 528,800 23,500 3,393,100 $204,700

Major Budget Changes From FY 2008-09 YTD Appropriations

FY 2008-09 YTD

Conference Change

From YTD

1. Consolidation with Department of Environmental Quality

The Departments of Natural Resources and Environmental Quality are to be merged. Administrative savings of $350,000 is assumed and will be implemented through the legislative transfer process. Any additional General Fund savings realized through realignment and field office consolidation is to be lapsed at year end. This recommendation is contingent upon issuance and legislative acceptance of a facilitating executive order.

Gross

IDG/IDT

Federal

Private

Restricted

GF/GP

$292,482,900

3,671,700

53,657,100

4,325,800

220,936,400

$9,891,900

($350,000)

($350,000)

2. Historic and Museum Programs: Transferred from DHAL

Historical programs are transferred from the Department of History, Arts and Libraries:

Mackinac Island State Park.......................................................... $3.4 million

State Museum $3.2 million

Museum Stores.............................................................................. $0.5 million

Heritage Publications.................................................................... $1.0 million

Freedom Trail $0.03 million

Thunder Bay Underwater Preserve............................................ $0.2 million

Mann House $0.1 million

State Rent (BOC)............................................................................ $0.9 million

Information Technology................................................................ $0.5 million

FTE

Gross

Private

Restricted

GF/GP

101.0

$10,991,200

112,600

3,030,7000

$7,847,900

3. Game and Fish Protection Fund Supported Programs: Reduced

Several programs reduced to reflect expected revenue shortfalls in the Game and Fish Protection Fund-General Purpose:

Administrative Units (Various)......................................................... $955,000

Land and Facilities............................................................................ $400,000

Wildlife Management..................................................................... $1,700,000

Fish Production $700,000

Fisheries Resource Management.............................................. $2,200,000

Forestry: Coop. Resource Programs............................................. $220,700

Forest Management Initiatives........................................................... $38,500

Law Enforcement............................................................................ $2,550,000

Inland Fisheries Grants.................................................................... $200,000

Gross

Restricted

$64,513,700

$64,513,700

($8,964,200)

($8,964,200)

4. Baseline and Full year FY 2008-09 Executive Order Reductions

General Fund supported programs reduced in FY 2008-09 are reduced. Reductions reflect the continuation of General Fund reductions included in EO 2009-22 and an additional 10% cut in programs transferred from DHAL. Reductions include Cooperative Resource Programs (101,100), Forest Recreation (100,000), Historical Administration (141,700), and Heritage Publications (345,900).

Gross

IDG/IDT

Federal

Private

Restricted

GF/GP

$294,528,400

3,802,200

53,802,100

4,745,000

222,287,200

$9,891,100

($1,180,900)

($1,180,900)

5. National Recreational Trails Grants

TheMichigan share for this grant program for trail development and maintenance is increased. Funds are awarded through a competitive application process.

Gross

Private

Federal

$2,150,000

50,000

2,100,000

$1,800,000

1,800,000

6. State Parks Funding: Park Endowment Fund Increase

Funding from the State Parks Endowment Fund is increased to make up for deficient revenues from motor vehicle permits and other user fees.

Gross

Federal

Private

Restricted

$44,654,200

120,300

363,900

$44,170,000

$1,000,000

$1,000,000

7. State Forest Management

Revenueincreases, generated during FY 2007-08 through timber harvest activities, are added to the forest management program.

Gross

Federal

Private

Restricted

$15,423,900

922,600

822,800

$13,678,500

$750,000

$750,000

8. Snowmobile Trail Easements

Funding, realized through the recently approved fee increase, will be used to purchase or lease easements to lengthen or create snowmobile trails.

Gross

Restricted

$700,000

$700,000

9. Capital Outlay

Proposed funding for FY2009-10 would support state park, forestry, and waterways construction and infrastructure maintenance projects. State Park Endowment Fund support replaces Park Improvement revenue ($2,000,000).

Gross

Federal

Private

Restricted

$14,193,000

1,293,000

1,500,000

$11,400,000

$2,798,200

3,774,100

500,000

($1,475,900)

10. Economic Adjustments

Provides an adjustment to cover the cost of the 1% salary increase to be provided in FY 2009-10.

Gross

Federal

Private

Restricted

GF/GP

$4,150,100

528,800

23,500

3,393,100

$204,700

Major Boilerplate Changes From FY 2008-09
*Sec. 205. State Hiring Freeze* – DELETED Imposes a state-wide hiring freeze in all departments, and provides process for approvals of position vacancies.
*Sec. 207. Restricted Fund Revenue, Expenditures, and Fund Balances* – REVISED Requires report of revenue, spending, and estimated year-end balance for each restricted fund appropriated. House added requirement to recalculate the number of fundedFTE positions onOctober 15, 2009.
*Sec. 222.* *FTE* *Monthly Report* – NEW Requires a bi-monthly report of the number of departmentFTE positions by classification.
*Sec. 223. Detailed Allotment Information* – NEW Requires report with detailed allotment detail by item of expense for each line item
*Sec. 223 (Current Law)* *DNR* *Funding Workgroup* – DELETED States legislative intent to implement recommendations of the work group on department long term funding.
*Sec. 226 (Current Law) MuskratLakeWater* *Control* – DELETED Requires report on the status of permit applications and efforts to maintain water levels ofMuskrat Lake in Clinton County.
*Sec. 229.* *DNR/DEQ Department Consolidation*– NEW** Legislative intent to re-combine the Department of Environmental Quality and the Department of Natural Resources.
*Sec. 706. Payments in Lieu of Taxes: Report to Department of Treasury* –REVISED DirectsDNR to provide billing information related to payments in lieu of taxes to Michigan Department of Treasury within 10 days of receipt.
**Sec. 802. Bovine TB Eradication Efforts –REVISED** Requires semi-annual reports on enforcement actions taken to eradicate bovine TB, relevant scientific studies and the number of deer found to be infected.
*Sec. 603. (Current Law) Fish Hatchery Operations* – DELETED Requires thatDNR operate six fish hatcheries.
*Sec. 1002. State Park Campground Closures* – REVISED Requires notice ifDNR intends to reduce operations or reduce recreation opportunities at any state park or recreation area.
**Sec. 1203. Timber Marking –REVISED** DirectsDNR, subject to forest certification process, to mark for harvest, 58,000 acres at an average rate of 12.5 to 15.0 cords per acre; be responsive to changes in regional markets for timber products; impact of timber harvest on wildlife habitat and recreation uses to be considered; requires quarterly report.
*Sec. 1207. TimberSale* Bidding Process – NEW** Suggests that the department should address and resolve timber sale bidding problems beforeMarch 31, 2010.
*Sec. 902.* *Island* *LakeShootingRange* *Concession Contract* – DELETED Requires public notice of the expiration date or adoption of amendments to the concession contract to operate theIslandLakeShootingRange.
*Sec. 1601. Federal Historic Preservation Grants: Work Project Designation* – NEW Provides work project status to federal grants for local historic preservation projects.
*Sec. 1602.* *Michigan* *Heritage Fund* –NEW Revenues collected through the Michigan Heritage Fund are appropriated, and available for expenditure upon receipt.
*Sec. 1603. Museum Store Revolving Fund* – NEW Contract expenditures for the Museum Store are exempt from the Management and Budget Act.
*Sec. 1604. Freedom Trail Funding Intent* – NEW Legislative intent regarding the use of appropriated funds for the Freedom Trail Commission.
*Sec. 1605. Proceeds from Artifact Auctions, Sales, or Transfers* – NEW Funds received through the excess of unneeded artifacts by theHistoricalMuseum are appropriated for the purpose of other items desired for the historical collection of theState Historical Museum.

Major Boilerplate Changes From FY 2008-09

Sec. 205. State Hiring Freeze – DELETED

Imposes a state-wide hiring freeze in all departments, and provides process for approvals of position vacancies.

Sec. 207. Restricted Fund Revenue, Expenditures, and Fund Balances – REVISED

Requires report of revenue, spending, and estimated year-end balance for each restricted fund appropriated. House added requirement to recalculate the number of fundedFTE positions onOctober 15, 2009.

Sec. 222. FTE Monthly Report – NEW

Requires a bi-monthly report of the number of departmentFTE positions by classification.

Sec. 223. Detailed Allotment Information – NEW

Requires report with detailed allotment detail by item of expense for each line item

Sec. 223 (Current Law) DNR Funding Workgroup – DELETED

States legislative intent to implement recommendations of the work group on department long term funding.

Sec. 226 (Current Law) MuskratLakeWater Control – DELETED

Requires report on the status of permit applications and efforts to maintain water levels ofMuskrat Lake in Clinton County.

Sec. 229. DNR/DEQ Department Consolidation– NEW

Legislative intent to re-combine the Department of Environmental Quality and the Department of Natural Resources.

Sec. 706. Payments in Lieu of Taxes: Report to Department of Treasury –REVISED

DirectsDNR to provide billing information related to payments in lieu of taxes to Michigan Department of Treasury within 10 days of receipt.

Sec. 802. Bovine TB Eradication Efforts –REVISED

Requires semi-annual reports on enforcement actions taken to eradicate bovine TB, relevant scientific studies and the number of deer found to be infected.

Sec. 603. (Current Law) Fish Hatchery Operations – DELETED

Requires thatDNR operate six fish hatcheries.

Sec. 1002. State Park Campground Closures – REVISED

Requires notice ifDNR intends to reduce operations or reduce recreation opportunities at any state park or recreation area.

Sec. 1203. Timber Marking –REVISED

DirectsDNR, subject to forest certification process, to mark for harvest, 58,000 acres at an average rate of 12.5 to 15.0 cords per acre; be responsive to changes in regional markets for timber products; impact of timber harvest on wildlife habitat and recreation uses to be considered; requires quarterly report.

Sec. 1207. TimberSale Bidding Process – NEW

Suggests that the department should address and resolve timber sale bidding problems beforeMarch 31, 2010.

Sec. 902. Island LakeShootingRange Concession Contract – DELETED

Requires public notice of the expiration date or adoption of amendments to the concession contract to operate theIslandLakeShootingRange.

Sec. 1601. Federal Historic Preservation Grants: Work Project Designation – NEW

Provides work project status to federal grants for local historic preservation projects.

Sec. 1602. Michigan Heritage Fund –NEW

Revenues collected through the Michigan Heritage Fund are appropriated, and available for expenditure upon receipt.

Sec. 1603. Museum Store Revolving Fund – NEW

Contract expenditures for the Museum Store are exempt from the Management and Budget Act.

Sec. 1604. Freedom Trail Funding Intent – NEW

Legislative intent regarding the use of appropriated funds for the Freedom Trail Commission.

Sec. 1605. Proceeds from Artifact Auctions, Sales, or Transfers – NEW

Funds received through the excess of unneeded artifacts by theHistoricalMuseum are appropriated for the purpose of other items desired for the historical collection of theState Historical Museum.