MILITARYAND VETERANS AFFAIRS

HB 5885

Summary: FY 2010-11 Conference Committee

Analyst: Jan Wisniewski

	FY 2009-10 YTD	FY 2010-11	FY 2010-11	FY 2010-11	FY 2010-11	*Difference: Conference Committee from YTD*
	as of9/9/10	Executive	House Passed	Senate Passed	Conference Committee	*Amount*	%
IDG/IDT	$1,686,500	$1,154,700	$1,154,700	$1,152,900	$1,152,900	($533,600)	(31.6)
Federal	81,189,400	82,203,800	82,203,800	82,203,800	82,203,800	1,014,400	1.2
Local	1,289,500	653,200	1,295,100	645,400	645,400	(644,100)	(49.9)
Private	1,471,200	1,422,200	1,422,200	1,382,700	1,382,700	(88,500)	(6.0)
Restricted	27,980,700	28,660,400	28,660,400	28,233,400	28,233,400	252,700	0.9
GF/GP	36,245,000	36,951,100	35,413,300	36,432,900	36,424,700	179,700	0.5
Gross	$149,862,300	$151,045,400	$150,149,500	$150,051,100	$150,042,900	*$180,600*	*0.1*
FTEs	992.0	977.0	977.0	977.0	977.0	(15.0)	(1.5)

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.

	Major Budget Changes From FY 2009-10 YTD Appropriations	FY 2009-10 YTD (as of 9/9/10)
*1. Headquarters and Armories Administrative Reduction* Exec. Rec.maintains current year funding. Conference Committee concurs with Exec. Rec. but also decreases $8,200 GF/GP as an administrative reduction.	FTEs Gross Federal Restricted GF/GP	0.0 ($8,200) $0 $0 ($8,200)
*2. Capital Outlay - Land Acquisitions and Appraisals* Exec. Rec. increases $500,000 in restricted funds for land acquisition atCampGrayling. Conference Committee concurs with Exec. Rec.	Gross Federal Restricted	$500,000 0 $500,000
*3. 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. Conference Committee concurs with Exec. Rec.	Gross GF/GP	$176,300 $176,300
*4. Special Maintenance - State* Exec. Rec. eliminates the Special Maintenance - State line, which provides $651,200 GF/GP in FY 2009-10 for state armory maintenance. Conference Committee retains this line with $500,000 GF/GP from the Grand Rapids Veterans' Home and $151,200 GF/GP from Information Technology Services and Projects.	Gross GF/GP	$0 $0
*5. Military Training Sites and Support Facilities - Administrative Reductions* Exec. Rec. decreases $84,000 GF/GP in the Departmentwide Accounts line for various administrative reductions. Conference Committee concurs with Exec. Rec.	Gross Federal GF/GP	($84,000) 0 ($84,000)
*6. 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. Conference Committee concurs with Exec. Rec.	Gross GF/GP	$0 $0
*7. 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. Conference Committee concurs with Exec. Rec.	FTEs Gross IDG Federal Local Private	(15.0) ($596,900) (531,800) 625,800 (641,900) ($49,000)
*8. Economic Adjustments* Exec. Rec. provides funds for economic adjustments; includes economic adjustments for information technology. Conference Committee provides a 3% reduction for salary costs which will likely require additional revisions.	Gross IDG Federal Private Local Restricted GF/GP	$3,464,000 800 2,181,100 15,900 3,100 583,400 $679,700
*9. Grand Rapids Veterans’ Home* Exec. Rec. increases $1.0 million in available federal funds. Conference Committee concurs with Exec. Rec. but also decreases $500,000 GF/GP to retain the Special Maintenance - State line.	Gross Federal Restricted GF/GP	$500,000 1,000,000 0 ($500,000)
*10. D.J. Jacobetti Veterans’ Home* Exec. Rec. increases $1,050,000 in available federal funds and decreases $750,000 in restricted funds. Conference Committee concurs with Exec. Rec.	Gross Federal Restricted GF/GP	$300,000 1,050,000 (750,000) $0
*11. Veterans' Affairs Directorate* Exec. Rec. decreases $83,000 GF/GP in administrative reductions in the Veterans' Affairs Directorate Administration line. Conference Committee concurs with Exec. Rec.	Gross GF/GP	($83,000) ($83,000)
*12. 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. Conference Committee concurs and also transfers $151,200 GF/GP to the Special Maintenance - State line.	Gross Federal Restricted GF/GP	($182,400) (400) (400) ($181,600)

Major Budget Changes From FY 2009-10 YTD Appropriations

FY 2009-10 YTD

(as of 9/9/10)

Conference Committee Change from YTD

1. Headquarters and Armories Administrative Reduction

Exec. Rec.maintains current year funding. Conference Committee concurs with Exec. Rec. but also decreases $8,200 GF/GP as an administrative reduction.

FTEs

Gross

Federal

Restricted

GF/GP

0.0

($8,200)

($8,200)

2. Capital Outlay - Land Acquisitions and Appraisals

Exec. Rec. increases $500,000 in restricted funds for land acquisition atCampGrayling. Conference Committee concurs with Exec. Rec.

Gross

Federal

Restricted

$500,000

$500,000

3. 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. Conference Committee concurs with Exec. Rec.

Gross

GF/GP

$176,300

$176,300

4. Special Maintenance - State

Exec. Rec. eliminates the Special Maintenance - State line, which provides $651,200 GF/GP in FY 2009-10 for state armory maintenance. Conference Committee retains this line with $500,000 GF/GP from the Grand Rapids Veterans' Home and $151,200 GF/GP from Information Technology Services and Projects.

Gross

GF/GP

5. Military Training Sites and Support Facilities - Administrative Reductions

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

Gross

Federal

GF/GP

($84,000)

($84,000)

6. 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. Conference Committee concurs with Exec. Rec.

Gross

GF/GP

7. 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. Conference Committee concurs with Exec. Rec.

FTEs

Gross

IDG

Federal

Local

Private

(15.0)

($596,900)

(531,800)

625,800

(641,900)

($49,000)

8. Economic Adjustments

Exec. Rec. provides funds for economic adjustments; includes economic adjustments for information technology. Conference Committee provides a 3% reduction for salary costs which will likely require additional revisions.

Gross

IDG

Federal

Private

Local

Restricted

GF/GP

$3,464,000

800

2,181,100

15,900

3,100

583,400

$679,700

9. Grand Rapids Veterans’ Home

Exec. Rec. increases $1.0 million in available federal funds. Conference Committee concurs with Exec. Rec. but also decreases $500,000 GF/GP to retain the Special Maintenance - State line.

Gross

Federal

Restricted

GF/GP

$500,000

1,000,000

($500,000)

10. D.J. Jacobetti Veterans’ Home

Exec. Rec. increases $1,050,000 in available federal funds and decreases $750,000 in restricted funds. Conference Committee concurs with Exec. Rec.

Gross

Federal

Restricted

GF/GP

$300,000

1,050,000

(750,000)

11. Veterans' Affairs Directorate

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

Gross

GF/GP

($83,000)

($83,000)

12. 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. Conference Committee concurs and also transfers $151,200 GF/GP to the Special Maintenance - State line.

Gross

Federal

Restricted

GF/GP

($182,400)

(400)

($181,600)

Major Boilerplate Changes From FY 2009-10

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. Conference Committee concurs with Exec. Rec. to delete a subsection regarding the grant distributions to the individual VSOs but retains all remaining current language.

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. Conference Committee concurs with Exec. Rec.