MILITARYAND VETERANS AFFAIRS

FY 2010-2011

Summary of HB 5885 (H-1): As reported by the House Appropriations Committee

Analyst: Jan Wisniewski

	FY 2009-10 YTD	FY 2010-11	FY 2010-11	FY 2010-11	FY 2010-11	*Difference: House Appropriations Committee from Exec. Rec.*
	as of2/16/10	Executive	House Appropriations Committee	Senate	Enacted	*Amount*	%
IDG/IDT	$1,686,500	$1,154,700	$1,154,700			$0	0.0
Federal	77,347,300	82,203,800	82,203,800			0	0.0
Local	1,295,100	653,200	653,200			0	0.0
Private	1,471,200	1,422,200	1,422,200			0	0.0
Restricted	27,924,200	28,660,400	28,660,400			0	0.0
GF/GP	36,425,500	36,951,100	35,804,200			(1,146,900)	(3.1)
Gross	$146,149,800	$151,045,400	$149,898,500			*($1,146,900)*	*(0.8)*
FTEs	992.0	977.0	977.0			(15.0)	(1.5)

Note: FY 2009-10 appropriation figures do not reflect the impact of executive order, supplemental, or transfer adjustments made after the release of the FY 2010-11 Executive Budget on February 11.

Overview

The Department of Military and Veterans Affairs is responsible for the training and administration of Army and Air National Guard forces, providing combat-ready military forces during times of national emergency, and performing civil relief operations under the command of the Governor during state emergencies. The Department’s budget includes administrative and maintenance costs associated with these responsibilities as well as National Guard-related programs such as the Challenge Program. The Department has oversight over the following veterans-related programs: state-licensed nursing care at veterans homes in Grand Rapids and Marquette, grant funding to veterans service organizations, and the Michigan Veterans Trust Fund.

FY 2009-10 YTD (as of 2/16/10)	Exec. Rec. Change from YTD	House Appropriations Committee Change from Exec. Rec.
*1. Capital Outlay - Land Acquisitions and Appraisals* Exec. Rec. increases $500,000 in restricted funds for land acquisition at Camp Grayling. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.	Gross Federal Restricted	$15,000,000 15,000,000 $0	$500,000 0 $500,000	$0 0 $0
*2. Military Retirement Cost-of-Living Increase* Exec. Rec. provides $176,300 GF/GP for a federally-mandated cost-of-living increase. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.	Gross GF/GP	$3,407,800 $3,407,800	$176,300 $176,300	$0 $0
*3. Special Maintenance - State Elimination* Exec. Rec. eliminates the Special Maintenance - State line, which provides $651,200 GF/GP in FY 2009-10 for state armory maintenance. House Subcommittee retains this line with $500,000 GF/GP from the Grand Rapids Veterans' Home. House Appropriations Committee concurs with the Subcommittee.	Gross GF/GP	$651,200 $651,200	($651,200) ($651,200)	$500,000 $500,000
*4. Military Training Sites and Support Facilities - Administrative Reductions* Exec. Rec. decreases $84,000 GF/GP in the Departmentwide Accounts line for various administrative reductions. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.	Gross Federal GF/GP	$1,946,500 1,666,100 $280,400	($84,000) 0 ($84,000)	$0 0 $0
*5. Veterans Advice, Advocacy, and Assistance* Exec. Rec. maintains current year funding for the Veterans Service Organizations, but eliminates the individual VSO lines and places all funding in a new Veterans Advice, Advocacy, and Assistance Grants line. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.	Gross GF/GP	$3,029,600 $3,029,600	$0 $0	$0 $0
*6. Challenge Program* Exec. Rec. decreases total funding by $596,900 (increase of $625,800 in federal funds, decrease of $531,800 inIDG funds, decrease of $49,000 in private funds, and decrease of $641,900 in Local - School Aid funds). Additional federal revenue will allow the Challenge Program to continue operating with smaller classes of participants. Also decreases 15.0 FTEs. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.	FTEs Gross IDG Federal Local Private	40.0 $4,737,000 686,500 1,824,200 1,295,100 $931,200	(15.0) ($596,900) (531,800) 625,800 (641,900) ($49,000)	0.0 $0 0 0 0 $0
*7. Economic Adjustments* Exec. Rec. provides funds for economic adjustments; includes economic adjustments for information technology. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.	Gross IDG Federal Private Local Restricted GF/GP	NA NA NA NA NA NA NA	$4,434,500 2,600 2,181,100 55,400 10,900 986,600 $1,197,900	$0 0 0 0 0 0 $0
*8. Grand Rapids Veterans’ Home* Exec. Rec. increases $1.0 million in available federal funds. House Subcommittee concurs with Exec. Rec., but also decreases by $810,200 GF/GP as part of a 3% GF/GP reduction and also decreases $500,000 GF/GP to maintain funding for the Special Maintenance - State line. House Appropriations Committee concurs with the Subcommittee.	Gross Federal Restricted GF/GP	$48,767,300 18,472,600 15,316,900 $14,977,800	$1,000,000 1,000,000 0 $0	($1,310,200) 0 0 ($1,310,200)
*9. D.J. Jacobetti Veterans’ Home* Exec. Rec. increases $1,050,000 in available federal funds and decreases $750,000 in restricted funds. House Subcommittee concurs with Exec. Rec., but also decreases by $336,700 GF/GP as part of a 3% GF/GP reduction. House Appropriations Committee concurs with the Subcommittee.	Gross Federal Restricted GF/GP	$15,656,100 5,177,100 5,741,100 $4,737,900	$300,000 1,050,000 (750,000) $0	($336,700) 0 0 ($336,700)
*10. Veterans' Affairs Directorate* Exec. Rec. decreases $83,000 GF/GP in administrative reductions in the Veterans' Affairs Directorate Administration line. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.	Gross GF/GP	$276,700 $276,700	($83,000) ($83,000)	$0 $0
*11. Information Technology* Exec. Rec. decreases $400 in federal funds, $400 in restricted funds, and $400 GF/GP for Department of Technology, Management, and Budget consolidation savings and decreases $30,000 GF/GP in administrative reductions. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs with the Subcommittee. House Appropriations Committee concurs with the Subcommittee.	Gross Federal Restricted GF/GP	$1,154,300 472,900 351,800 $329,600	($31,200) (400) (400) ($31,200)	$0 0 0 $0

Major Budget Changes From FY 2009-10 YTD Appropriations

FY 2009-10 YTD

(as of 2/16/10)

Exec. Rec. Change from YTD

House Appropriations Committee Change from Exec. Rec.

1. Capital Outlay - Land Acquisitions and Appraisals

Exec. Rec. increases $500,000 in restricted funds for land acquisition at Camp Grayling. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.

Gross

Federal

Restricted

$15,000,000

15,000,000

$500,000

$500,000

2. Military Retirement Cost-of-Living Increase

Exec. Rec. provides $176,300 GF/GP for a federally-mandated cost-of-living increase. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.

Gross

GF/GP

$3,407,800

$3,407,800

$176,300

$176,300

3. Special Maintenance - State Elimination

Exec. Rec. eliminates the Special Maintenance - State line, which provides $651,200 GF/GP in FY 2009-10 for state armory maintenance. House Subcommittee retains this line with $500,000 GF/GP from the Grand Rapids Veterans' Home. House Appropriations Committee concurs with the Subcommittee.

Gross

GF/GP

$651,200

$651,200

($651,200)

($651,200)

$500,000

$500,000

4. Military Training Sites and Support Facilities - Administrative Reductions

Exec. Rec. decreases $84,000 GF/GP in the Departmentwide Accounts line for various administrative reductions. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.

Gross

Federal

GF/GP

$1,946,500

1,666,100

$280,400

($84,000)

($84,000)

5. Veterans Advice, Advocacy, and Assistance

Exec. Rec. maintains current year funding for the Veterans Service Organizations, but eliminates the individual VSO lines and places all funding in a new Veterans Advice, Advocacy, and Assistance Grants line. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.

Gross

GF/GP

$3,029,600

$3,029,600

6. Challenge Program

Exec. Rec. decreases total funding by $596,900 (increase of $625,800 in federal funds, decrease of $531,800 inIDG funds, decrease of $49,000 in private funds, and decrease of $641,900 in Local - School Aid funds). Additional federal revenue will allow the Challenge Program to continue operating with smaller classes of participants. Also decreases 15.0 FTEs. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.

FTEs

Gross

IDG

Federal

Local

Private

40.0

$4,737,000

686,500

1,824,200

1,295,100

$931,200

(15.0)

($596,900)

(531,800)

625,800

(641,900)

($49,000)

0.0

7. Economic Adjustments

Exec. Rec. provides funds for economic adjustments; includes economic adjustments for information technology. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs.

Gross

IDG

Federal

Private

Local

Restricted

GF/GP

$4,434,500

2,600

2,181,100

55,400

10,900

986,600

$1,197,900

8. Grand Rapids Veterans’ Home

Exec. Rec. increases $1.0 million in available federal funds. House Subcommittee concurs with Exec. Rec., but also decreases by $810,200 GF/GP as part of a 3% GF/GP reduction and also decreases $500,000 GF/GP to maintain funding for the Special Maintenance - State line. House Appropriations Committee concurs with the Subcommittee.

Gross

Federal

Restricted

GF/GP

$48,767,300

18,472,600

15,316,900

$14,977,800

$1,000,000

1,000,000

($1,310,200)

($1,310,200)

9. D.J. Jacobetti Veterans’ Home

Exec. Rec. increases $1,050,000 in available federal funds and decreases $750,000 in restricted funds. House Subcommittee concurs with Exec. Rec., but also decreases by $336,700 GF/GP as part of a 3% GF/GP reduction. House Appropriations Committee concurs with the Subcommittee.

Gross

Federal

Restricted

GF/GP

$15,656,100

5,177,100

5,741,100

$4,737,900

$300,000

1,050,000

(750,000)

($336,700)

($336,700)

10. Veterans' Affairs Directorate

Exec. Rec. decreases $83,000 GF/GP in administrative reductions in the Veterans' Affairs Directorate Administration line. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Gross

GF/GP

$276,700

$276,700

($83,000)

($83,000)

11. Information Technology

Exec. Rec. decreases $400 in federal funds, $400 in restricted funds, and $400 GF/GP for Department of Technology, Management, and Budget consolidation savings and decreases $30,000 GF/GP in administrative reductions. House Subcommittee concurs with Exec. Rec. House Appropriations Committee concurs with the Subcommittee. House Appropriations Committee concurs with the Subcommittee.

Gross

Federal

Restricted

GF/GP

$1,154,300

472,900

351,800

$329,600

($31,200)

(400)

($31,200)

Major Boilerplate Changes From FY 2009-10

Sec. 236. Director and Assistant Adjutant Generals' Salaries- NEW

House Subcommittee inserts new language providing legislative intent for the department director and the assistant adjutant generals to be paid at a level no higher than any other department director and deputy director beginning in January 2011. House Appropriations Committee concurs with the Subcommittee.

Sec. 205. Civil Service Hiring Freeze - DELETED

Exec. Rec. deletes hiring freeze requirement for agencies and departments. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 211. Report and Record Retention - DELETED

Exec. Rec. deletes requirement for departments to retain copies of reports funded from appropriations in part 1. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 213. Armory Closures and Consolidations - DELETED

Exec. Rec. deletes requirement for the Department to consult with the appropriations subcommittees for armory closures and consolidations. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 214. Military Cemeteries in Crawford and Dickinson Counties - DELETED

Exec. Rec. deletes legislative intent for appropriating funds for military cemeteries in Crawford and Dickinson counties if funds become available. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 223. Information Technology Work Projects - DELETED

Exec. Rec. deletes allowing information technology projects to be designated as work projects. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 226. Disciplinary Action Against Department Employees- DELETED

Exec. Rec. deletes prohibiting disciplinary actions against Department employees for communicating with the Legislature. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 227. Sale of Department Property- DELETED

Exec. Rec. deletes requirement for the Department to notify the appropriations subcommittees and the fiscal agencies 60 days prior to announcing the sale of Department property. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 233. GF/GP Lapse Estimates – DELETED

Exec. Rec. deletes requirement for a report by the Department for GF/GP lapse estimates at the close of the fiscal year. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 234. Unused GF/GP – DELETED

Exec. Rec. deletes requirement for any lapsed GF/GP funds to be transferred to the Special Maintenance - State line item for repairing and maintaining armories. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 235. Partnerships With Armed Forces Reserve Units – DELETED

Exec. Rec. deletes requirement for increased partnerships with reserve units concerning the use of facilities and other activities. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 301. Armory Rental Fees- DELETED

Exec. Rec. deletes allowing the Department to charge rental fees for armory rentals. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 501. Veterans Service Organizations – MODIFIED

Exec. Rec. deletes sections detailing how grant funds are to be distributed to the VSOs; deletes reporting requirement for efforts to provide more effective and efficient veterans' services. House Subcommittee concurs with Exec. Rec. to delete a subsection regarding the grant distributions to the individual VSOs but retains all remaining current language. House Appropriations Committee concurs with the Subcommittee.

Sec. 601. Veterans' Home Appropriations - DELETED

Exec. Rec. deletes mandating that funds appropriated for the two veterans' home only be used for veterans and their families. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 602. Veterans' Home Reporting Requirements - DELETED

Exec. Rec. deletes requirement for the Department and veterans' homes to provide a report to the appropriations subcommittees on various information involving the members of the two homes. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 605. Board of Managers Post and Posthumous Funds - DELETED

Exec. Rec. deletes the reporting requirement for the Department to notify the appropriations subcommittees 30 days prior to altering the Post and Posthumous funds spending plans. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 606. Grand Rapids Veterans’ Home Feasibility Study – DELETED

Exec. Rec. deletes requirement for the Department to prepare a feasibility study for increasing operational efficiencies. House Subcommittee concurs with the Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 704. County Veterans Counselors Training- DELETED

Exec. Rec. deletes requirement for the veterans' affairs directorate and the Michigan Veterans Trust Fund administration to assist county veterans' counselors with receiving training to execute their duties. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.

Sec. 705. Funding County Veterans' Counselors - DELETED

Exec. Rec. deletes legislative intent for the Department providing incentives for each county to fund at least one full-time county veterans counselor. House Subcommittee does not concur with Exec. Rec. House Appropriations Committee concurs with the Subcommittee.