FY 2010-11 AGRICULTURE BUDGET H.B. 5875 (H-3): HOUSE-PASSED


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House Bill 5875 (Substitute H-3 as passed by the House)
Committee: Appropriations

Changes from FY 2009-10 Year-to-Date:
1. Michigan Agriculture Environmental Assurance Program (MAEAP) Transfer. The Governor recommended the transfer of the MAEAP for farmers to the Michigan State University Agricultural Experiment Station for a GF/GP and 5.0 FTE savings.	(586,500)
2. MAEAP Line Item. The House included a new line item.	100
3. Dairy Inspection Fees. The Governor recommended an increase in dairy inspection fees over those included in the FY 2009-10 budget. The additional revenue would offset a General Fund reduction of $500,000 in the program. The House rejected the fee revenue and kept the GF/GP.	0
4. Migrant Worker Housing Inspection Fee. The Governor recommended an increase in Migrant Worker Housing Inspection fees from the current year proposed $5.00 per worker to $30.00 per worker for FY 2010-11. The additional revenue would offset a General Fund reduction of $537,900 in the program. The House rejected the fee revenue and continued $400,000 in GF/GP.	(137,900)
5. Office of Racing Commissioner (ORC) Transfer. The budget reflects a restricted fund reduction as a result of the transfer of the ORC to the Department of Treasury's Gaming Control Board, per E.O. 2009-45. The transfer includes 10 FTEs.	(1,905,000)
6. Pesticide and Plant Pest Management. The Governor and House recommended a GF/GP reduction to the program, for a FY 2010-11 total of $13.4 million, $3.8 million GF/GP.	(379,400)
7. Right to Farm Program. The Governor and House recommended a GF/GP savings due to a plan for the program to work with the Department of Natural Resources and the Environment.	(150,000)
8. Animal Control Officers and Shelter Program. The Governor and House recommended removing funding for the program, which is to be assumed by local government, to save GF/GP.	(150,000)
9. Budgetary Savings. The House included a unit with an unspecified reduction of $347,100 GF/GP.	(347,100)
10. Adjustments for Actual Revenue Received. The Governor and House recommended a reduction to reflect the expected receipt of revenues from IDGs ($426,600), federal ($1,740,500), and restricted ($581,000).	(2,748,100)
11. Administrative Efficiencies. The Governor and House recommended GF/GP administrative efficiencies for Shelter Oversight ($70,400), Aquaculture ($20,000) Livestock Program ($10,200), Domestic Marketing ($27,300), DIT and DMB consolidation ($2,700), Grants to Shelters ($8,000) and Bodies of Dead Animals Program ($800).	(139,400)
12. Combining of Migrant Worker Programs. The Governor and House recommended the combining of two similar programs which would result in a slight program increase of $43,000 ($40,000 federal and $3,000 restricted).	43,000
13. Accounting Shift. The budget included an accounting staff shift of 8.0 FTEs and $878,300 to MDOT (in the form of an IDG) per consolidation ordered by E.O. 2007-32.	0
14. Economic Adjustments. The budget made adjustments for rent, building occupancy charges, salaries and wages, retirement benefits, workers' compensation, and utilities.	3,324,100
Total Changes	($3,176,100)
FY 2010-11 House-Passed Gross Appropriation	$77,192,900

FY 20010-11 AGRICULTURE BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2009-10 Year to Date:

Deleted Boilerplate Sections

1. DIT Project. Permits DIT appropriations to be designated as work projects. (Sec.220)

2. Disciplinary Action. Prohibits disciplinary action against Dept. employee for communicating with Legislature. (Sec. 224)

3. Efficiency Mechanism. Requires implementation of continuous improvement efficiency mechanisms. (Sec. 232)

4. C.S. Mott Funding. Permits funding to C.S. Mott Group for Sustainable Food Systems/Local Market Enhancement. (Sec. 235)

5. Dairy Inspections. Requires not less than $3,098,000.00 be spent for dairy inspections. (Sec. 407)

6. Bovine TB. Bovine TB guidelines, plans, reports and position authorization. (Sec. 455, 456, 457, 459)

7. Aquaculture. Requires aquaculture inspections and prohibits reductions for aquaculture programs. (Sec. 458, 460)

8. Environmental Stewardship. Environmental Stewardship language requiring no reductions to Right-to-farm Program, and guidelines for use of $130,000.00 for water withdrawal assessment. (Sec. 608, 610)

9. Agriculture Development. Agriculture development required guidelines, reports of activities, collaboration with Strategic Fund, earmark of $100,000.00 for export market development. (Sec. 705, 707, 713)

10. Migrant Worker Housing. Migrant worker housing inspection fee-the Gov. raised it from $5 to $30 per worker. (Sec 609)

Amended Boilerplate Sections

11. Indemnity. The Governor and House removed provision for livestock killed by wolf, coyote or cougar. (Sec. 212-2)

12. FTE Report. Requires bi-monthly report of FTEs in pay status. The House added internet posting of expenditures. (Sec. 238)

New Boilerplate Sections

13. Internet Posting. The House language limits cost of expenditure posting to $10,000. (Sec. 239)

14. Budget Savings. The House provided guidelines for use of budget savings units. (Sec. 240)

Date Completed: 4-1-10 Fiscal Analyst: Bruce Baker 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_hp.doc