5884: HOUSE-PASSED (Date Completed: 4-12-10) - FY 2010-11 ENERGY, LABOR, AND ECONOMIC GROWTH BUDGET

FY 2010-11 ENERGY, LABOR, AND ECONOMIC GROWTH BUDGET H.B. 5884 (H-2): HOUSE-PASSED

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House Bill 5884 (H-2 as passed by the House)
Committee: Appropriations

Changes from FY 2009-10 Year-to-Date:
1. Federal Funds Adjustments. Governor and House added Federal spending authority: $57,000,000 for Trade Adjustment Assistance, $13,400,000 for Unemployment Insurance Administration, $10,860,000 for Housing Choice Vouchers, and $1,030,000 for Commission for the Blind, and removed one-time Federal funds of ($39,240,000).	43,050,000
2. No Worker Left Behind. Governor and House eliminated GF/GP funding for this program.	(4,500,000)
3. Michigan Nursing Corps. Governor replaced the current funding of $300,000 GF/GP with $5,000,000 of Federal Workforce Investment Act funds. House did not fund the program	(300,000)
4. Welfare-to-Work. Governor reduced funding by ($2,609,800) GF/GP and ($7,600,000) in Temporary Assistance to Needy Families (TANF) funding. House reduced by additional ($210,000) General Fund.	(10,209,800)
5. Office of Financial and Insurance Regulation (OFIR). Governor and House provided $646,500 and 10.0 FTEs for examinations of broker-dealers and investment advisors per P.A. 551 of 2008.	1,646,500
6. Michigan State Housing Development Authority. Governor and House increased funding for administration and IT costs by $7,340,000 from MSHDA restricted funds, the State Historic Preservation Office increased by $943,000 in restricted and Federal funding, and expenditure authority for Lighthouse Preservation was increased by $56,500 due to increased license plate revenue.	8,339,500
7. Fire Service Fees. Governor recommended additional fees for fire safety inspections to reduce reliance on GF/GP by ($2,600,000). House included Fireworks Safety Act fee funding.	0
8. Jobs, Education, and Training (JET). Governor eliminated the DELEG portion of this program for eligible Family Independence Program clients to obtain services from Michigan Rehabilitation Services, a reduction of ($15,553,900) in the IDG from the Department of Human Services and (57.0) FTEs.	(15,553,900)
9. Homeowner Construction Lien Fund. Governor and House eliminated this fund due to insolvency.	(1,846,500)
10. GF/GP Reductions. House reduced workers compensation by ($1,200,000) and welfare-to-work line by ($210,000).	(1,410,000)
11. Budgetary Savings. House made unspecified cuts of ($71,500) GF/GP.	(71,500)
12. Economic Adjustments. Governor and House funded standard economic increases.	23,285,300
13. Other Changes. Fund source adjustments and DIT economics.	(13,617,300)
Total Changes	$28,812,300
FY 2010-11 House-Passed Gross Appropriation	$1,495,462,300

FY 2010-11 ENERGY, LABOR, AND ECONOMIC GROWTH BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2009-10 Year to Date:

1. Deleted Reports. Governor and House deleted the following reports: Policy changes (Sec. 215), elevator fee revenue (Sec. 303), revenue from sale of customized listings (Sec. 304), report on internet filings for unemployment insurance (Sec. 333), State Office of Administrative Hearings and Rules (SOAHRs) report on teacher tenure cases (Sec. 352), tax tribunal fee study (Sec. 372), OFIR expenditures (Sec. 405), JET report on cases, enrollment and referrals to MRS (Sec. 803), permissive language on use of TANF for a statewide noncustodial parent program (Sec. 804).

2. Deleted Sections. Governor and House deleted sections including: Hiring freeze (Sec. 205), prohibition on disciplining employees for communication with the Legislature (Sec. 219), limit training travel to one employee per out-of-state conference (Sec. 224), timeline for Unemployment Insurance Agency computer rewrite (Sec. 332), limitations and report on ergonomics rules (Sec. 341), intent language on State Office of Administrative Hearings and Rules (SOAHRs), vetoed section on agricultural economic development (Sec. 364), use of credit scoring for insurance rates (Sec. 406), vocational rehabilitation local match limit (Sec. 603), vetoed language for afterschool partnership (Sec. 704), intent language on career preparation program (Sec. 814), intent language on WIA allocation for gang diversion activities and at-risk youth services in Wyoming, Benton Harbor, Saginaw, and Detroit (Sec. 817), use of No Worker Left Behind GF/GP funding (Sec. 831).

3. House Retained. Governor deleted and House retained the following: Receipt of grant for privately funded project such as training, meeting, or technical consulting services (Sec. 225), GF/GP lapse estimates (Sec. 226), bureau of commercial services licensing data (Sec. 368), local government report of expenditures from Liquor Law Enforcement Grants and local liquor-related fees (Sec. 370), boilerplate appropriation of WIA carryforward (Sec. 712), authorization for Michigan Works! agencies to support local libraries as access points for underserved areas (Sec. 715).

4. Deleted Earmarks. Governor deleted the following earmarks: MIOSHA $40,000 for aggregate industry (Sec. 342), $200,000 for West Michigan Team (Sec. 813), Focus: HOPE allocation of $5,860,200 in Federal WIA funds (Sec. 816), $150,000 West Michigan Center for Arts and Technology (Sec. 818). House retained the Federal funds for Focus:HOPE (Sec. 716).

5. Federal Pass-Through Funds. Governor authorized the carry forward of Federal pass-through funds for local governments where no additional State match is required and appropriated in Part 1 any Federal pass-through funds received in addition to those. (Sec. 220)

6. Budgetary Savings. House specified that budgetary savings shall be allowed to line items by legislative transfer. (Sec. 230)

7. FTE Transparency and Expenditure Report. House added a report on the number of State employees by civil service class and required internet posting of expenditures including ARRA spending and limited cost of this project to $10,000. (Sec. 231 and 290)

8. Fire Service Fees. Governor proposed use of the State Fire Services Fund proposed in H.B. 4026 to support the Bureau of Fire Services. House changed to the proposed fireworks safety fees. (Sec. 302a)

9. Customized Career Center. House added permissive language to allocate funding to enhance the current Talent Bank by creating a Customized Career Center serviced by a Michigan-based customer service center. (Sec. 719)

10. Michigan Nursing Corps. Governor permitted use of funds for grants to healthcare research or training agencies for development of virtual education methods and required use of Nursing Corps funds in accordance with the WIA. House did not include funds for Nursing Corps. (Sec. 721)

11. Community College Reports. Governor and House added reports formerly in the Community College budget but completed by DELEG staff. (Sec. 733, 734, and 735)

12. Capital Outlay Project. Governor and House included language on use and three-year carry-forward of $870,000 in private funds for renovations at the Michigan Commission for the Blind Training Center in Kalamazoo. (Sec. 801 and 802)

13. WIA Youth. House added new language allowing grants to nonprofits offering programs for eligible youth focusing on entrepreneurship and job readiness skills. Providers must be able to provide programs in urban areas and include participation of local business partners. (Sec. 710a)

Date Completed: 4-12-10 Fiscal Analyst: Elizabeth Pratt and Maria Tyszkiewicz Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations.