EXECUTIVE BUDGET BILL
February 23, 2010, Introduced by Rep. LeBlanc and referred to the Committee on Appropriations.
A bill to make appropriations for the department of military
and veterans affairs for the fiscal year ending September 30, 2011;
to provide for the expenditure of the appropriations; to provide
for certain powers and duties of the department of military and
veterans affairs, other state agencies, and local units of
government related to the appropriations; and to provide for the
preparation of certain reports related to the appropriations.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this bill,
the amounts listed in this part are appropriated for the department
of military and veterans affairs for the fiscal year ending
September 30, 2011, from the funds indicated in this part. The
following is a summary of the appropriations in this part:
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
APPROPRIATION SUMMARY
Full-time equated unclassified positions.......... 7.0
Full-time equated classified positions.......... 970.0
GROSS APPROPRIATION.................................... $ 151,045,400
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 1,154,700
ADJUSTED GROSS APPROPRIATION........................... $ 149,890,700
Federal revenues:
Total federal revenues................................. 82,203,800
Special revenue funds:
Total local revenues................................... 653,200
Total private revenues................................. 1,422,200
Total other state restricted revenues.................. 28,660,400
State general fund/general purpose..................... $ 36,951,100
Sec. 102. HEADQUARTERS AND ARMORIES
Full-time equated unclassified positions.......... 7.0
Full-time equated classified positions.......... 110.0
Headquarters and armories--85.0 FTE positions.......... $ 11,336,700
Unclassified military personnel........................ 665,000
Military appeals tribunal.............................. 900
Michigan emergency volunteers.......................... 5,000
State active duty...................................... 100,100
Challenge program--25.0 FTE positions.................. 4,140,100
Homeland security...................................... 1,000,000
Military family relief fund............................ 600,000
GROSS APPROPRIATION.................................... $ 17,847,800
Appropriated from:
IDG, challenge grant................................... 154,700
IDG, community health.................................. 100,000
IDG, state police...................................... 900,000
Federal revenues:
DOD-DOA-NGB............................................ 6,519,800
Special revenue funds:
Local - school aid fund................................ 653,200
Private donations...................................... 882,200
Rental fees............................................ 346,400
Mackinac Bridge authority.............................. 70,000
Military family relief fund............................ 600,000
State general fund/general purpose..................... $ 7,621,500
Sec. 103. MILITARY TRAINING SITES AND SUPPORT FACILITIES
Full-time equated classified positions.......... 181.0
Military training sites and support
facilities--181.0 FTE positions...................... $ 25,380,900
Military training sites and support facilities test
projects............................................. 100,000
GROSS APPROPRIATION.................................... $ 25,480,900
Appropriated from:
Federal revenues:
DOD-DOA-NGB............................................ 23,988,400
Special revenue funds:
Test project fees...................................... 100,000
State general fund/general purpose..................... $ 1,392,500
Sec. 104. DEPARTMENTWIDE APPROPRIATIONS
Departmentwide accounts................................ $ 1,860,800
Special maintenance - federal.......................... 5,300,000
Military retirement.................................... 3,584,100
Counter narcotic operations............................ 50,000
Starbase grant......................................... 2,322,000
GROSS APPROPRIATION.................................... $ 13,116,900
Appropriated from:
Federal revenues:
DOD-DOA-NGB............................................ 9,288,100
Federal counternarcotic revenues....................... 50,000
Special revenue funds:
State general fund/general purpose..................... $ 3,778,800
Sec. 105. VETERANS ADVICE, ADVOCACY AND ASSISTANCE
Veterans advice, advocacy and assistance grants........ 3,029,600
GROSS APPROPRIATION.................................... $ 3,029,600
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 3,029,600
Sec. 106. GRAND RAPIDS VETERANS' HOME
Full-time equated classified positions.......... 513.0
Grand Rapids veterans' home--513.0 FTE positions....... $ 51,972,300
Board of managers...................................... 665,000
GROSS APPROPRIATION.................................... $ 52,637,300
Appropriated from:
Federal revenues:
DVA-VHA................................................ 17,609,600
HHS, Medicaid.......................................... 164,300
HHS, Medicare.......................................... 2,561,500
Special revenue funds:
Private - veterans' home post and posthumous funds..... 415,000
Income and assessments................................. 15,982,800
Military family relief fund............................ 250,000
Lease revenue.......................................... 12,200
State general fund/general purpose..................... $ 15,641,900
Sec. 107. D.J. JACOBETTI VETERANS' HOME
Full-time equated classified positions.......... 158.0
D.J. Jacobetti veterans' home--158.0 FTE positions..... $ 16,718,000
Board of managers...................................... 275,000
GROSS APPROPRIATION.................................... $ 16,993,000
Appropriated from:
Federal revenues:
DVA-VHA................................................ 5,924,400
HHS, Medicare.......................................... 589,200
HHS, Medicaid.......................................... 10,800
Special revenue funds:
Private - veterans' home post and posthumous funds..... 125,000
Military family relief fund............................ 150,000
Income and assessments................................. 5,229,400
State general fund/general purpose..................... $ 4,964,200
Sec. 108. VETERANS' AFFAIRS DIRECTORATE
Full-time equated classified positions............ 8.0
Veterans' affairs directorate administration---2.0
FTE positions........................................ $ 205,800
Veterans' trust fund administration---6.0 FTE
positions............................................ 1,302,800
Veterans' trust fund grants............................ 3,746,500
GROSS APPROPRIATION.................................... $ 5,255,100
Appropriated from:
Special revenue funds:
Michigan veterans' trust fund.......................... 5,049,300
State general fund/general purpose..................... $ 205,800
Sec. 109. INFORMATION TECHNOLOGY
Information technology services and projects........... $ 1,184,800
GROSS APPROPRIATION.................................... $ 1,184,800
Appropriated from:
Federal revenues:
DOD-DOA-NGB............................................ 130,400
DVA-VHA................................................ 356,800
HHS, Medicare.......................................... 10,500
Special revenue funds:
Income and assessments................................. 370,300
State general fund/general purpose..................... $ 316,800
Sec. 110. CAPITAL OUTLAY
Land acquisitions and appraisals........................ $ 500,000
Special maintenance, remodeling and additions........... 15,000,000
GROSS APPROPRIATION.................................... $ 15,500,000
Appropriated from:
Federal revenues:
DOD-DOA-NGB............................................ 15,000,000
Special revenue funds:
Michigan national guard construction fund............... 500,000
State general fund/general purpose...................... $ 0
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state resources
under part 1 for fiscal year 2010-2011 is $65,611,500.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2010-2011 is $120,000.00. The itemized
statement below identifies appropriations from which spending to
local units of government will occur:
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
MILITARY TRAINING SITES AND SUPPORT FACILITIES
Payments in lieu of taxes.............................. $ 70,000
MICHIGAN VETERANS' TRUST FUND
County counselor education and training expenses....... $ 50,000
TOTAL................................................... $ 120,000
Sec. 202. The appropriations authorized under this bill are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this bill:
(a) "Department" means the department of military and veterans
affairs.
(b) "Director" means the director of the department of
military and veterans affairs.
(c) "DOD" means the United States department of defense.
(d) "DOD-DOA-NGB" means the DOD department of the army,
national guard bureau.
(e) "DVA" means the United States department of veterans
affairs.
(f) "DVA-VHA" means the DVA veterans health administration.
(g) "FTE" means full-time equated.
(h) "HHS" means the United States department of health and
human services.
(i) "IDG" means interdepartmental grant.
(j) "Large veterans service organization" means a VSO that can
certify that its membership exceeds 30,000 individuals.
(k) "Medium veterans service organization" means a VSO that
can certify that its membership is between 2,500 and 30,000
individuals.
(l) "Small veterans service organization" means a VSO that can
certify that its membership is between 1,000 and 2,499 individuals.
(m) "VSO" means veterans service organization.
Sec. 204. The civil service commission shall bill departments
and agencies at the end of the first fiscal quarter for the charges
authorized by section 5 of article XI of the state constitution of
1963. Payments shall be made for the total amount of the billing by
the end of the second fiscal quarter.
Sec. 208. The department receiving appropriations in part 1
shall use the Internet to fulfill the reporting requirements of
this bill. This requirement may include transmission of reports via
electronic mail to the recipients identified for each reporting
requirement, or it may include placement of reports on an Internet
or Intranet site.
Sec. 209. Funds appropriated in part 1 shall not be used for
the purchase of foreign goods or services, or both, if
competitively priced and of comparable quality American goods or
services, or both, are available. Preference shall be given to
goods or services, or both, manufactured or provided by Michigan
businesses, if they are competitively priced and of comparable
quality. In addition, preference should be given to goods or
services, or both, that are manufactured or provided by Michigan
businesses owned and operated by veterans, if they are
competitively priced and of comparable quality.
Sec. 210. The director shall take all reasonable steps to
ensure businesses in deprived and depressed communities compete for
and perform contracts to provide services or supplies, or both. The
director shall strongly encourage firms with which the department
contracts to subcontract with certified businesses in depressed and
deprived communities for services, supplies, or both.
Sec. 221. From the funds appropriated in part 1 for
information technology, departments and agencies shall pay user
fees to the department of technology, management, and budget for
technology-related services and projects. Such user fees shall be
subject to provisions of an interagency agreement between the
departments and agencies and the department of technology,
management, and budget.
Sec. 225. (1) Due to the current budgetary problems in this
state, out-of-state travel shall be limited to situations in which
1 or more of the following conditions apply:
(a) The travel is required by legal mandate or court order or
for law enforcement purposes.
(b) The travel is necessary to protect the health or safety of
Michigan citizens or visitors or to assist other states in similar
circumstances.
(c) The travel is necessary to produce budgetary savings or to
increase state revenues, including protecting existing federal
funds or securing additional federal funds.
(d) The travel is necessary to comply with federal
requirements.
(e) The travel is necessary to secure specialized training for
staff that is not available within this state.
(f) The travel is financed entirely by federal or nonstate
funds.
(2) Not later than January 1 of each year, each department
shall prepare a travel report listing all travel by classified and
unclassified employees outside this state in the immediately
preceding fiscal year that was funded in whole or in part with
funds appropriated in the department's budget. The report shall be
submitted to the senate and house of representatives standing
committees on appropriations, the senate and house fiscal agencies,
and the state budget director. The report shall include the
following information:
(a) The name of each person receiving reimbursement for travel
outside this state or whose travel costs were paid by this state.
(b) The destination of each travel occurrence.
(c) The dates of each travel occurrence.
(d) A brief statement of the reason for each travel
occurrence.
(e) The transportation and related costs of each travel
occurrence, including the proportion funded with state general
fund/general purpose revenues, the proportion funded with state
restricted revenues, the proportion funded with federal revenues,
and the proportion funded with other revenues.
(f) A total of all out-of-state travel funded for the
immediately preceding fiscal year.
Sec. 228. Funds appropriated in part 1 shall not be used by a
principal executive department, state agency, or authority to hire
a person to provide legal services that are the responsibility of
the attorney general. This prohibition does not apply to legal
services for bonding activities and for those activities that the
attorney general authorizes.
Sec. 232. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $10,000,000.00 for
federal contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in this bill under section 393(2) of the management and budget act,
1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $2,000,000.00 for state
restricted contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in this bill under section 393(2) of the management and budget act,
1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000.00 for local
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this bill
under section 393(2) of the management and budget act, 1984 PA 431,
MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000.00 for private
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this bill
under section 393(2) of the management and budget act, 1984 PA 431,
MCL 18.1393.
HEADQUARTERS AND ARMORIES
Sec. 302. (1) The funds appropriated in this bill for private
donations to the challenge program shall be considered state
restricted revenue, and unexpended funds remaining at the close of
the fiscal year shall not lapse to the general fund but shall be
carried forward to the subsequent fiscal year.
(2) The department may charge a parent or guardian of a
participant in the challenge program a fee for participating in the
program if the participant is a member of a family with an income
that exceeds 200% of the federal poverty guidelines as published by
the United States department of health and human services. The
amount charged the parent or guardian shall not exceed the per-
student state share cost of administering the program. The parent
or guardian shall be notified of any charge to be assessed under
this subsection prior to enrollment of the child in the program.
(3) The department shall take steps to recruit candidates to
the challenge program from economically disadvantaged areas,
including those with low-income and high-unemployment backgrounds.
Sec. 304. The department will partner with the department of
human services to identify youth who may be eligible for the
challenge program from those youth served by department of human
services programs. These eligible youth shall be given priority for
enrollment in the program.
VETERANS ADVICE, ADVOCACY, AND ASSISTANCE
Sec. 501. (1) The department shall develop and operate a
program which will provide benefits counseling and representation
to veterans of this state for the purpose of assisting veterans to
obtain United States department of veterans affairs health,
financial, and memorial benefits for which they are eligible. The
department shall work to maximize the coordination between veterans
service organizations and any other organization which assists
veterans.
(2) The department shall create a 5-member veterans advisory
board to assist in matters pertaining to veterans advice, advocacy,
and assistance, including recommendations concerning disbursement
of any grant money. The department shall request that the state
commanders group name candidates serving as president/commander
from 2 large veterans service organizations, 2 medium veterans
service organizations, and 1 small veterans service organization to
serve on the advisory board. The veterans advisory board shall meet
no less than twice a year, without reimbursement by the department.
(3) The duties of the veterans advisory board shall include,
but are not limited to, the following:
(a) Serving as a liaison between grant recipients, the
department, and the legislature.
(b) Assisting in recognizing any deficiencies in the grant
process and performance.
(c) Providing a forum regarding veterans issues.
(d) Suggesting changes in department programs that would help
keep pace with changing veterans needs.
(e) Providing a direct contact with the veterans
administration regarding updates on procedures.
(f) Creating an awareness to make sure that grant recipients
are performing the services intended.
(g) Representing a voice for veterans service organizations.
(h) Providing for a sounding board for grant recipients.
(i) Assisting the department in establishing criteria for
grant awards.
(j) Assisting the department in developing plans, reviewing
service delivery, and identifying goals to better assist veterans
in applying for and receiving benefits from the federal, state, and
local governments.
(k) Providing testimony, if requested, to legislative
committees.
(4) Money used for grants to veterans service organizations
shall be used only for salaries, wages, related personnel costs,
in-state training, and equipment for accredited veteran service
advocacy officers and necessary support and managerial staff.
Training shall be provided for service advocacy officers and shall
be conducted by accredited advocacy officers.
(5) To receive a grant from the money appropriated in part 1,
a veterans service organization or a veterans service organization
which is part of a combination of organizations receiving a grant
shall meet the following eligibility requirements:
(a) Be congressionally chartered by the United States
Congress.
(b) Be an active participating member of the Michigan veterans
organizations' rehabilitation and veterans service committee and
abide by its rules, guidelines, and programs.
(c) Demonstrate the receipt of monetary or service support
from its own organization.
(d) Comply with the department's and the legislature's
requirements of accounting audits, service work activity,
accounting of recoveries, listing of volunteer hours, budget
requests, and other requirements specified in subsection (3). Each
veterans service organization receiving a grant from the money
appropriated in part 1 shall provide a copy of the most recent
audit report to the department not later than May 1, 2011.
(e) For a veterans service organization founded after
September 30, 1989, be in operation and providing service to
Michigan veterans for not less than 2 years before receiving an
initial state grant. During this 2-year period of time, the
organization shall file a listing of service work activity and an
accounting of recoveries with the department, the senate and house
fiscal agencies, the senate and house of representatives
appropriations subcommittees on military affairs, and the state
budget office on forms as prescribed by the department.
(6) A veterans service organization receiving a grant from the
money appropriated in part 1 shall file with the department an
accounting of its expenditures, audited and certified by a
certified public accountant, within 120 days after the
organization's fiscal year end. Each veterans service organization
shall provide 5 copies of a listing of all service activity, an
accounting of recoveries, and a listing of volunteer hours for the
fiscal year ending September 30, 2010 to the department by January
31, 2011. Each organization shall include a listing of expenditures
by spending category, including a listing of individual salaries of
each officer and administrative staff. The listing of volunteer
hours shall include the hours, services, and donations provided to
residents of the Grand Rapids veterans' home and the D.J. Jacobetti
veterans' home. Each veterans service organization shall provide a
copy of the most recent and completed internal revenue service form
990 to the department at the end of the fiscal year ending
September 30, 2010. A veterans service organization receiving a
grant from the money appropriated in part 1 shall use the forms
recommended by the Michigan veterans organizations rehabilitation
and veterans service committee for filing reports required by this
act. The department shall provide a report not later than June 1,
2011 to the senate and house fiscal agencies, the senate and house
appropriations subcommittees on state police and military and
veterans affairs, and the state budget office detailing the most
recent expenditure information provided by the veterans service
organizations. The department shall also provide within that report
specific notification whether any veterans service organization
receiving a grant from the money appropriated in part 1 failed to
comply with the reporting requirements of this section.
(7) The veterans service directors committee and the
department shall take steps to improve the coordination of veterans
benefits counseling in the state to maximize the effective and
efficient use of taxpayer dollars in this goal and to ensure that
every veteran is served.
(8) To accomplish the goal of subsection (7), the veterans
service directors committee and the department shall take steps to
increase their responsibility in the administration, management,
oversight, and outreach of the delivery of services to veterans.
The veterans service directors committee and the department shall
involve county veterans counselors and representatives from the
Michigan veterans trust fund to work in concert to identify,
implement, and evaluate steps to do all of the following:
(a) Increase the veterans service directors committee and the
department's role in working directly with the United States
department of veterans affairs to enhance the delivery of services
to Michigan veterans.
(b) Increase the number of initial claims filed with the
United States department of veterans affairs on behalf of veterans
for service-connected disability or pension benefits. The veterans
service directors committee and the department may work toward
either an absolute increase of approved claims or an increase in
the percentage of Michigan veterans with approved claims.
(c) Develop methods to increase rates of recovery paid by the
United States department of veterans affairs to Michigan veterans
either by an increase in compensation paid per approved claim or an
increase in compensation paid on a per capita basis.
(d) Expand training opportunities for veterans service
organization service officers.
(e) Increase either the number or percentage of Michigan
veterans enrolled in the veterans affairs health care system.
(f) Publicize the availability, benefit, and value of burial
in the Fort Custer and Great Lakes national cemeteries.
(g) Review each grant recipient's performance under the
program and require that performance be a major consideration in
the future funding of each grant recipient.
(h) Identify areas of redundancy which may exist among
services provided by veterans service organizations grantees,
Michigan veterans trust fund county committees, and county veterans
counselors and provide a proposal on how any redundancies may be
minimized and identify specific cost savings which could result.
(9) Each veterans service organization receiving a grant from
the money appropriated in part 1 shall file a report with the
department not later than May 1, 2011 detailing the following
information:
(a) Training completed by each veterans service officer
employed by or working on behalf of the veterans service
organization.
(b) A roster of the cases that each veterans service
organization is serving or processing, including if those cases
have been completed or are still pending, whether those cases have
been initiated and completed by the veterans service organization,
and which cases have been referred to and by county veterans
counselors, congressional or senate offices, or any other
organizations that serve veterans.
(10) The department shall record any additional administrative
costs for collecting and compiling the information from subsections
(6) and (9) and also provide this information with the reports
required under subsection (6).
(11) The veterans affairs directorate shall design and operate
an advocacy program to coordinate with other organizations which
assist veterans, including county counselors and other groups, to
ensure referrals between groups occur when warranted and to provide
the veterans of the state with the most cost-effective and
comprehensive counseling services possible. The department shall
also take steps to become certified with the United States
department of veterans affairs to assist in this task.
(12) The department shall issue performance standards to each
veterans service organization grant recipient. Compliance with
these performance standards shall be the basis for funding for
future years. Failure to meet any or all of the performance
standards may result in that organization losing funding in future
years, and the department shall forward to the senate and house of
representatives appropriations subcommittees on state police and
military and veterans affairs corrective action and penalty
recommendations.
VETERANS' HOMES
Sec. 603. The money appropriated in this bill for the boards
of managers may be expended for facility improvements, the purchase
and repair of equipment and furnishings, member services, and other
purposes that benefit the Grand Rapids veterans' home and the D.J.
Jacobetti veterans' home.
VETERANS' AFFAIRS DIRECTORATE
Sec. 703. By April 1, 2011, the department shall submit to the
senate and house of representatives appropriations subcommittees on
military affairs and the state budget office a detailed annual
report of the Michigan veterans' trust fund for fiscal year 2009-
2010. The report shall include information on grants provided from
the emergency grant program, including details concerning the
methodology of allocations, the selection of emergency grant
program authorized agents, and a detailed breakdown of trust fund
expenditures for that year. The report shall also provide an update
on the department's efforts to reduce program administrative costs
and restore the Michigan veterans' trust fund corpus to its
original amount of $50,000,000.00.
CAPITAL OUTLAY
Sec. 801. The appropriations in part 1 for the department of
military and veterans affairs design and construction projects are
contingent upon the availability of federal and state restricted
funds for financing.
Sec. 802. (1) The director shall allocate lump-sum
appropriations made in this bill consistent with statutory
provisions and the purposes for which funds were appropriated.
Lump-sum allocations shall address priority program or facility
needs and may include, but are not limited to, design,
construction, remodeling and addition, special maintenance, major
special maintenance, energy conservation, and demolition.
(2) The state budget director may authorize that funds
appropriated for lump-sum appropriations shall be available for no
more than 3 fiscal years following the fiscal year in which the
original appropriation was made. Any remaining balance from
allocations made in this section shall lapse to the fund from which
it was appropriated pursuant to the lapsing of funds as provided in
the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 803. The appropriations in part 1 for capital outlay
shall be carried forward at the end of the fiscal year consistent
with section 248 of the management and budget act, 1984 PA 431, MCL
18.1248.