0201: GOVERNOR'S RECOMMENDATION (Date Completed: 2-19-13) - FY 2013-14 AGRICULTURE AND RURAL DEVELOPMENT BUDGET

FY 2013-14 AGRICULTURE AND RURAL DEVELOPMENT BUDGET S.B. 201: GOVERNOR'S RECOMMENDATION

Senate Bill 201 (as introduced) Vehicle for Governor’s Recommendation line items is House Bill 4328

Committee: Appropriations

FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$76,953,000

Changes from FY 2012-13 Year-to-Date:
1. Agriculture Product Assurance and Export Assistance. The Governor recommended $1.0 million GF/GP to bolster inspection services for agriculture products and commodities to assist export requirements of Michigan goods.	1,000,000
2. Food and Agriculture Industry Growth Initiative. The Governor recommended $1.0 million GF/GP for a competitive grant program to research and find solutions to barriers to growth by processors, agri-business and agriculture production. An additional $2.0 million for this initiative was also recommended to come from the Michigan Strategic Fund.	1,000,000
3. Food Safety. The Governor recommended $250,000 GF/GP to add to the efforts of food wholesale inspections and lab testing.	250,000
4. Producer Security/Grain Dealer Program. The Governor’s budget included an additional $150,000 Restricted to adjust for actual regulatory fees received.	150,000
5. Farmland and Open Space Preservation Program. The Governor recommended adding $392,500 Restricted to provide more administrative support. Using these additional funds for this purpose would require a statutory amendment.	392,500
6. Private Forestry Initiative. The Governor included $600,000 GF/GP in a one-time expenditure for grants to conservation districts to provide landowners with advice on management of forestlands.	600,000
7. Information Technology. The Governor recommended adding $22,700 Gross ($20,400 GF/GP) to cover IT rate increases.	22,700
8. One-Time Appropriations for FY 2012-13. The Governor removed one-time FY 2012-13 appropriations for FY 2013-14, including $470,300 Gross ($235,300 GF/GP) for Lump Sum Payments, $600,000 GF/GP for Private Forestry, $900,000 GF/GP for Rural Development Value-Added Grants, and $500,000 GF/GP for New Food Safety Requirements.	(2,470,300)
9. Reductions to Reflect Actual Revenues Received. The Governor recommended reductions across several budget lines to reflect actual anticipated revenue, $2,669,000 Gross ($8,300) GF/GP.	(2,669,000)
10. Economic Adjustments. Includes $237,800 Gross and $126,300 GF/GP for OPEB and $1,526,600 Gross and $778,300 GF/GP for other economic adjustments.	1,764,400

Total Changes.....................................................................................................................	$40,300
FY 2013-14 Governor's Recommendation...........................................................................	$76,993,300

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.
FY 2013-14 AGRICULTURE AND RURAL DEVELOPMENT BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year-to-Date:

1. Civil Service Fees. The Governor removed language requiring Civil Service to bill MDARD for services. (Sec. 202)

2. Reporting Requirements. The Governor struck section requiring use of Internet/Email to fulfill reporting requirements. (Sec. 208)

3. Buy American. The Governor struck "buy American" goods and services requirement. (Sec. 209)

4. IT Work Projects. The Governor struck designation of IT projects as work projects. (Sec. 211)

5. Retain Reports. The Governor eliminated requirement for all reports be kept and retained by MDARD. (Sec. 212)

6. IT User Fees. The Governor struck language requiring charging of DTMB IT user fees to MDARD. (Sec. 214)

7. Disciplinary Action. Governor eliminated language prohibiting action against employee who communicates with Legislature. (Sec. 215)

8. Office Plan. The Governor removed requirement for MDARD to comply with statewide office plan. (Sec. 219)

9. Measurable Outcomes. The Governor removed a requirement to provide 10 outcomes from expenditures. (Sec. 231)

10. Scorecard. The Governor added NEW language requiring a website posting of key metrics performance. (Sec. 232)

11. Non Line-item grants. The Governor removed a prohibition that all non line-item grants to non-profits, governments, or schools not be granted without prior notice to Legislature. (Sec. 302)

12. Outbreak Report. The Governor eliminated a requirement for a report on food borne outbreaks. (Sec. 402)

13. Herd Testing. The Governor removed language requiring whole herd TB testing in modified accredited zones. (Sec. 451)

14. Animal Indemnification. The Governor removed a requirement providing for animal indemnification for certain instances of death by wild animals. (Sec. 453)

15. TB Free Status. The Governor removed requirement to work with Federal government to become TB-free. (Sec. 454)

16. Animal ID. The Governor removed prohibition of using electronic tags on anything other than cattle. (Sec. 456)

17. TB Progress Report. The Governor eliminated requirement for quarterly progress report on TB monitoring. (Sec. 457)

18. Aquaculture. The Governor eliminated requirement for inspections of aquaculture operations. (Sec. 458)

19. Third-party Inspections. The Governor eliminated requirement to development third-party inspections with fruit and vegetable industry and requires not less than $200,000 to be spent on export inspections. (Sec. 551)

20. Hazardous Disposal. The Governor removed language encouraging USDA work & Public Health for safe disposal of hazardous materials. (Sec. 552)

21. Environmental Stewardship. Governor removed requirement to support groundwater & freshwater pollution prevention. (Sec. 601)

22. Matching Funds. Governor eliminated requirement to find Federal matching funds for environmental quality incentives. (Sec. 606)

23. Intercounty Drains. The Governor eliminated legislative intent that intercounty drain support be provided by MDARD and the requirement that the Department work with districts to find needed funding for administrative costs. (Sec. 607)

24. Lake St. Clair. The Governor removed requirement that MDARD work to address water issues, including nonpoint source pollution. (Sec. 608)

25. Value-Added Grant Program. The Governor eliminated a section (5) designating program as a work project. (Sec. 701)

26. Development and Export Report. The Governor eliminated a requirement for an annual report on MDARD development and export activities. (Sec. 706)

27. Grape and Wine Report. Governor eliminated requirement for annual report on Grape and Wine Industry Council activities. (Sec. 709)

28. Equine Funds. The Governor removed requirement that equine funds only be spent for equine purposes. (Sec. 801)

29. Thoroughbred Purse Disbursement. The Governor eliminated language providing for disbursement of thoroughbred purse funds in the event no races are held. (Sec. 803)

30. Equine Regulatory Costs. Governor eliminated language which provided criteria for establishing equine regulatory costs. (Sec. 804)

31. County Fairs Grants. The Governor eliminated a section (5) designating program as a work project. (Sec. 805)

32. Lump-Sum Expenditures. The Governor eliminated a provision for lump-sum capital outlay payments. (Sec. 1002)

33. FY 2013-14 Appropriations. The Governor removed provisions for FY 2013-14 appropriations. (Sec. 1201)

Date Completed: 2-19-13 Fiscal Analyst: Bruce Baker

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.