SB0115: CONFERENCE REPORT (Date Completed: 5-28-15) - FY 2015-16 AGRICULTURE & RURAL DEVELOPMENT BUDGET

FY 2015-16 AGRICULTURE & RURAL DEVELOPMENT BUDGET S.B. 115 (CR-1*): CONFERENCE REPORT

			CHANGES FROM FY 2014-15 YEAR-TO-DATE
FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE	FY 2014-15 YEAR-TO-DATE	FY 2015-16 CONFERENCE	AMOUNT	PERCENT
FTE Positions..............................................................	446.0	454.0	8.0	1.8
GROSS.........................................................................	84,052,200	86,594,000	2,541,800	3.0
Less:
Interdepartmental Grants Received.....................	318,100	317,300	(800)	(0.3)
ADJUSTED GROSS..................................................	83,734,100	86,276,700	2,542,600	3.0
Less:
Federal Funds..........................................................	10,176,200	10,427,900	251,700	2.5
Local and Private....................................................	98,300	128,100	29,800	30.3
TOTAL STATE SPENDING.......................................	73,459,600	75,720,700	2,261,100	3.1
Less:
Other State Restricted Funds................................	28,143,400	32,647,100	4,503,700	16.0
GENERAL FUND/GENERAL PURPOSE..............	45,316,200	43,073,600	(2,242,600)	(4.9)
PAYMENTS TO LOCALS..........................................	4,750,000	4,750,000	0	0.0

FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$84,052,200

Changes from FY 2014-15 Year-to-Date:
Items Included by the Senate and House
1. Accounting Service Center. Governor recommended $50,000 GF/GP to fully fund the accounting service center. Senate and House concurred.	50,000
2. Commercial Forestry Audit Program. Governor recommended elimination of $150,000 GF/GP program. Senate and House added $150,000 GF/GP to bring FY 2015-16 appropriations to $300,000.	150,000
3. Removal of FY 2014-15 One-Time Funding. Governor, Senate, and House recommended the elimination of one-time GF/GP funding for Food and Agriculture Industry Growth Initiative ($2.0 million), Muskegon Farmers Market ($200,000), and Ottawa County Agriculture Incubator ($500,000).	(2,700,000)
4. Adjustment for FY 2014-15 Appropriations Actions. Includes Executive Order 2015-5 ($600,000) and $190,000 from contingency transfer 2015-2.	410,000
5. Economic Adjustments. Includes a negative $588,200 Gross and a negative $329,400 GF/GP for OPEB and $412,900 Gross and $228,900 GF/GP for other economic adjustments.	(167,400)
6. Other Changes. Governor, Senate, and House recommended non-GF/GP technical adjustments across various lines to reflect anticipated revenue and expenditure levels.	564,800
Conference Agreement on Items of Difference
7. Pesticide and Plant Pest Management Division Increase. Governor and House recommended an increase in registration and inspection fees totaling $1,220,000 restricted to enhance the surveillance of fertilizer and pesticide industry. Senate did not include. Conference concurred with House, which included $1.0 million additional in water quality fees.	2,220,000
8. Food Establishments. Governor and House recommended an increase in food establishment fees totaling $1,514,400 restricted and 8.0 FTEs to increase inspections in an effort to improve food establishment compliance to food safety regulations. Senate did not include. Conference concurred with House.	1,514,400
9. Commercial Feed Inspections. Governor and House recommended an increase in inspection fees totaling $521,400 to enhance inspection activity. The current FY 2014-15 appropriation authority level for this support is adequate for this increase in restricted revenue to be expended. Senate did not include and adjusted fund source for revenue expected. Conference concurred with House.	0
10. Geagley Laboratory Improvements. Governor recommended a one-time appropriation of $500,000 GF/GP to replace outdated and unsupported equipment at the lab. Senate did not include. House included $350,000; Conference, $150,000.	150,000
11. Rural Development Value-Added Grant Program. Governor and House recommended elimination of the grant program. Senate provided $250,000 for FY 2015-16. Conference concurred with Senate and merged strategic growth initiative program into the value-added program with a $1.2 million GF/GP appropriation.	(850,000)
12. County Fairs Capitol Improvement Grants. Governor and House recommended a reduction in funding for the program of $150,000 GF/GP, leaving the FY 2015-16 level at $170,000 GF/GP. Senate provided a funding level of $300,000 for FY 2015-16. Conference concurred with Senate.	(20,000)
13. Shows and Expositions Grants. Governor and House recommended the elimination of the $50,000 GF/GP grants to agricultural exhibitors. Senate provided $20,000 for FY 2015-16. Conference concurred with Senate.	(30,000)
14. Horse Racing Programs. Conference added $600,000 in restricted grant increase to racing grant recipients.	600,000
15. Fruit Tree Research. Conference added $500,000 GF/GP for research grants.	500,000
16. Qualified Forest Program. House, but not Senate, included $150,000 in additional restricted funding. Conference concurred with House.	150,000

Total Changes.....................................................................................................................	$2,541,800
FY 2015-16 Conference Report Ongoing/One-Time Gross Appropriation.............................	$86,594,000
Amount Over/(Under) GF/GP Target: $0

Boilerplate Changes from FY 2014-15 Year-to-Date:

Items Included by the Senate and House

1. Conservation Districts. Governor, Senate, and House eliminated Section which provided guidelines for the allocation of appropriations to conservation districts. (Sec. 603)

2. Funding Restriction. Governor, Senate, and House eliminated language prohibiting the use of any other funds for administration or implementation of the Michigan Agriculture Environmental Assurance Program other than what is provided in its line. (Sec. 605)

3. One-Time Basis Appropriations Only. Governor, Senate, and House eliminated language concerning FY 2014-15 one-time appropriations for the Food and Agriculture Industry Growth Initiative grant program. (Sec. 1101)

Conference Agreement on Items of Difference

4. Benchmarks. Senate replaced FY 2014-15 benchmark language with requirement that metrics be established to measure performance of new programs or program increases in excess of $500,000. House did not include. Conference concurred with Senate. (Sec. 205)

5. Thoroughbred Purse Disbursement. Governor and Senate eliminated language providing for disbursement of thoroughbred purse funds in the event no races are held. House included. Conference concurred with Senate. (Sec. 803)

6. Inter-County Drains. Indicates legislative intent that MDARD continue activities and seek fund sources. Included by Senate, not by House. Conference concurred with House. (Sec. 607)

7. Strategic Growth Initiative/Rural Development Value-Added Program. Conference combined Sec. 711 and Sec. 701 to reflect the merger of the two grant programs into the title of Rural Development Value-Added Program. (Sec. 701)

8. Online Licensing. House included language stating legislative intent that MDARD use technology to improve licensing and reporting efficiency. Not included by Senate. Conference concurred with House. (Sec. 303)

Date Completed: 5-28-15 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.