FY 2010-11 ENERGY, LABOR, AND ECONOMIC GROWTH BUDGET H.B. 5884 (S-1, Draft 1) SENATE SUBCOMMITTEE REC.

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House Bill 5884 (S-1, Draft 1 as reported)
Throughout this document Senate means Subcommittee.
Committee: Appropriations

Changes from FY 2009-10 Year-to-Date:
  1. Federal Funds Adjustments. Governor, House, & Senate 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 and Federal ARRA funds of ($46,565,400). 35,724,600
2. No Worker Left Behind. Governor, House, & Senate 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 funds. House did not fund the program. Senate included $1.0 million Federal funds. 700,000
4. Workforce Training Program Subgrantees. Governor reduced by $5.0 million WIA funding to support Nursing Corps. House restored. Senate reduced by $1.0 million for Nursing Corps. (1,000,000)
5. Welfare-to-Work. Governor reduced funding by ($2,609,800) GF/GP and ($7,600,000) in TANF funding. House reduced by additional ($210,000) General Fund. Senate concurred with Governor. (10,209,800)
6. Office of Financial and Insurance Regulation (OFIR). Governor, House, & Senate provided $1,646,500 and 10.0 FTEs for examinations of broker-dealers and investment advisors per P.A. 551 of 2008. Senate eliminated funding for Insurance Advocate ($124,500). 1,522,000
7. Michigan State Housing Development Authority. Governor, House, & Senate increased funding for administration and IT costs by $7,340,000, the State Historic Preservation Office increased by $943,000, and Lighthouse Preservation by $56,500 due to increased license plate revenue. 8,339,500
8. 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. Senate included $2.6 million GF/GP. 0
9. Jobs, Education, and Training (JET). Governor, House, & Senate eliminated the DELEG portion of this program which includes (57.0) FTEs. (15,553,900)
10. Homeowner Construction Lien Fund. Governor, House, & Senate eliminated this fund due to insolvency. (1,846,500)
11. GF/GP Reductions. House reduced workers compensation by ($1,200,000). Senate restored $1.0 million. (200,000)
12. Housing & Community Development Fund. Senate included GF/GP funding for this line item. 200,000
13. Budgetary Savings. House made unspecified cuts of ($71,500) GF/GP. Senate did not include. 0
14. 3% Reduction. Senate included 3% reduction by line item to reflect salary adjustments for State employees. (10,828,700)
15. Economic Adjustments. Governor, House, & Senate funded standard economic increases. 23,285,300
16. Other Changes. Fund source adjustments and DIT economics. (13,617,300)
Total Changes $12,015,200
  FY 2010-11 Senate Appropriations Subcommittee Gross Appropriation $1,485,990,600
FY 2010-11 ENERGY, LABOR, AND ECONOMIC GROWTH BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2009-10 Year to Date:
  1. Deleted Reports. Governor, House, & Senate deleted the following reports: Elevator fee revenue (Sec. 303), revenue from sale of customized listings (Sec. 304), 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 & House deleted sections including: Prohibition on disciplining employees for communication with the Legislature (Sec. 219), intent language on State Office of Administrative Hearings and Rules (SOAHRs), vetoed section on agricultural economic development (Sec. 364), use of No Worker Left Behind GF/GP funding (Sec. 831).
3. House and Senate Retained. Governor deleted; House & Senate 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. Senate Retained. Policy changes (Sec. 215), report on Internet filings for unemployment insurance (Sec. 333), hiring freeze (Sec. 205), limits for out-of-state conferences (Sec. 224), timeline for unemployment agency rewrite (Sec. 332), ergonomics (Sec. 341), credit scoring (Sec. 406), vocational rehabilitation local match (Sec. 603), after school partnership (Sec. 709), gang diversion in urban areas (Sec. 817).
5. 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). Senate retained all sections.
6. Federal Pass-Through Funds. Governor & House reinstated language allowing the carry forward of Federal pass-through funds for locals where no State match is required and appropriated additional Federal pass-through funds. Senate modified to include report. (Sec. 220)
7. Budgetary Savings. House specified that budgetary savings shall be implemented by legislative transfer. Senate did not include. (Sec. 230)
8. 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. Senate concurred. (Sec. 231 and 290)
9. 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. Senate did not include. (Sec. 302a)
10. Automobile and Home Insurance Advocate. Senate added language prohibiting expenditures in Part 1 to be used to support this position. (Sec. 408)
11. Centers for Independent Living. The Senate reinserts grant clarification language. (Sec. 604)
12. WIA Youth. House added new language allowing grants to nonprofits offering programs for eligible youth focusing on entrepreneurship and job readiness skills. Senate modified from may to shall. (Sec. 710a)
13. Customized Career Center. House added permissive language to allocate funding to enhance the current Talent Bank serviced by a Michigan-based customer service center. Senate capped allocation at $100,000. (Sec. 719)
14. 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. Senate reduced to $1.0 million, and concurred with Governor. (Sec. 721)
15. Community College Reports. Governor, House, & Senate added reports formerly in the Community College budget but completed by DELEG staff. (Sec. 733, 734, and 735)
16. Capital Outlay Project. Governor, House, & Senate 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 & 802)

Date Completed: 4-28-10 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.