SB0144: SENATE-PASSED (Date Completed: 5-15-19) - FY 2019-20 MILITARY AND VETERANS AFFAIRS BUDGET

FY 2019-20 MILITARY AND VETERANS AFFAIRS BUDGET S.B. 144 (S-2): SENATE-PASSED

Senate Bill 144 (S-2 as passed by the Senate)

Committee: Appropriations

			CHANGES FROM FY 2018-19 YEAR-TO-DATE
FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE	FY 2018-19 YEAR-TO-DATE*	FY 2019-20 SENATE-PASSED	AMOUNT	PERCENT
FTE Positions..............................................................	912.5	924.5	12.0	1.3
GROSS..........................................................................	199,639,300	205,197,500	5,558,200	2.8
Less:
Interdepartmental Grants Received.........................	101,800	101,800	0	0.0
ADJUSTED GROSS....................................................	199,537,500	205,095,700	5,558,200	2.8
Less:
Federal Funds...........................................................	98,170,200	106,177,200	8,007,000	8.2
Local and Private.......................................................	2,175,400	630,000	(1,545,400)	(71.0)
TOTAL STATE SPENDING.........................................	99,191,900	98,288,500	(903,400)	(0.9)
Less:
Other State Restricted Funds..................................	23,279,500	23,908,600	629,100	2.7
GENERAL FUND/GENERAL PURPOSE...................	75,912,400	74,379,900	(1,532,500)	(2.0)
PAYMENTS TO LOCALS...........................................	2,242,400	4,515,000	2,272,600	101.3

*As of March 5, 2019.

	Gross	GF/GP
FY 2018-19 Year-to-Date Appropriation...............................................	$199,639,300	$75,912,400

Changes from FY 2018-19 Year-to-Date:
1. D.J. Jacobetti Home for Veterans CMS Certification Revenue Adjustment. Governor and Senate recommended a funding adjustment reflecting the impact of CMS certification for the D.J. Jacobetti Home for Veterans, allowing for an increase in $1.8 million in Federal support and a $900,000 reduction in required GF/GP support.	900,000	(900,000)
2. Selfridge Air National Guard Base Support Increase. Governor and Senate recommended appropriating GF/GP matching funds to support 12.0 FTEs for maintenance at Selfridge.	400,000	400,000
3. Land Purchases and Appraisals Increase. Governor and Senate recommended authorization of land acquisitions funds from anticipated Armory Construction Fund revenues from land sales.	400,000	0
4. IT/Desk Top Fee Increases. Governor and Senate recommended additional funds to cover impact of new user fee structure.	105,000	105,000
5. Michigan Youth Challenge Program Fund Shift. Governor and Senate recommended the removal of local school aid funds used for a Federal match for the program, to be supplanted by GF/GP.	0	1,557,800
6. Alignment of Federal/Restricted Authorization with Available Revenues. Governor and Senate recommended the alignment of Federal and Restricted funding levels across several budget lines to reflect actual funds received.	5,527,800	0
7. Operational Support for Military Training Sites and Support Facilities Reduction. Governor and Senate recommended an elimination of $1.5 million in appropriated GF/GP support provided under PA 618 of 2018.	(1,500,000)	(1,500,000)
8. Military Retirement Program Transfer from DTMB. Governor and Senate recommended transfer of retirement function from DTMB to the DMVA, with actuarial adjustment from $5,244,800 GF/GP down to $1.0 million GF/GP for FY 2019-20.	1,000,000	1,000,000
9. National Guard Tuition Assistance Program Reduction. Governor and Senate recommended a reduction in support of $2.5 million GF/GP for program, leaving a total of $6,509,900 GF/GP recommended for FY 2019-20.	(2,500,000)	(2,500,000)
10. County Veteran Service Fund. Governor recommended a reduction in support of $2.1 million GF/GP for program from the appropriation of $4.2 million GF/GP for FY 2018-19, leaving a total of $2.1 million GF/GP recommended for FY 2019-20. Senate rejected the reduction, and provided continued support of $4.2 million for FY 2019-20.	0	0
11. Veterans Benefit Eligibility Study. Senate added $100 for future study.	100	100
12. High School Reserve Office Training Corps (ROTC) Program Enhancement. Senate added placeholder of $100 in one-time funds to provide improvements to John J. Pershing High School ROTC Program.	100	100
13. Armory Maintenance. Governor recommended the elimination of FY 2018-19 one-time GF/GP appropriations of $1.0 million for armory maintenance projects. Senate continued the $1.0 million GF/GP, added $994,800 GF/GP, and shifted it to ongoing appropriations status.	994,800	994,800
14. Vietnam Veterans Outreach Project Elimination. Governor and Senate recommended the elimination of the one-time FY 2018-19 GF/GP appropriations of $600,000 GF/GP for a veterans outreach project.	(600,000)	(600,000)
15. Targeted Grants Program for County Veterans Service Officers Elimination. Governor and Senate recommended elimination of the $200,000 GF/GP project.	(200,000)	(200,000)
16. Grand Rapids Veterans Home for Veterans Video Monitoring Pilot Project. Governor and Senate recommended elimination of the one-time appropriation.	(275,000)	(275,000)
17. Unclassified Salaries. Governor and Senate recommended an increase from $1,497,700 GF/GP for FY 2018-19 to $1,558,300 GF/GP for FY 2019-20.	60,600	60,600
18. Economic Adjustments. Includes $1,244,800 Gross and $324,100 GF/GP for total economic adjustments, of which an estimated negative $1,137,000 Gross and $397,600 GF/GP is for legacy retirement costs (pension and retiree health).	1,244,800	324,100
19. Comparison to Governor's Recommendation. The Senate is $4,095,000 Gross and $4,095,000 GF/GP over the Governor.

Total Changes......................................................................................	$5,558,200	($1,532,500)
FY 2019-20 Senate-Passed Gross Appropriation...................................	$205,197,500	$74,379,900

Boilerplate Changes from FY 2018-19 Year-to-Date:

1. Contingency Funds Transfer Provision. Senate eliminated language allowing for special legislative contingency fund transfers for non-specifically appropriated federal, restricted, local, and private funds. (Sec. 210)

2. Quarterly Reporting to Legislature. Governor and Senate revised department reporting requirement regarding metrics, finances, from a quarterly to a biannual basis. (Sec. 216)

3. Unclassified Positions. Governor and Senate struck which lists the titles of unclassified employees. Senate retained language requiring notice if additional unclassified positions are created. (Sec. 301)

4. National Guard Armories. Governor and Senate revised language concerning the reporting of the status of armories from quarterly to biannually. (Sec. 302)

5. National Guard Tuition Assistance Program. Governor and Senate revised performance metric for program from increasing program participation to 1,100 during the fifth year of program to "National Guard members who have received a credential or are still enrolled in the program after their initial term of enlistment with a goal of 55% of program participants". Senate added language requiring a report on program participation, eligible training and educational institutions, and application denials. (Sec. 307)

6. Management and Oversight of State Homes for Veterans. Governor revised language to require homes to release resident member funds within 30 days of departure rather than within three business days and that a full accounting of deceased member's funds be provided with 30 calendar days, rather than 10 business days. Governor also deleted a requirement requiring a report on CMS and Medicaid certification efforts at homes and an earmark appropriation for a Grand Rapids Home for Veterans video monitoring project. Senate rejected the 30-day requirement for release of funds, and changed it to 15 calendar days. (Sec. 402)

7. Medicaid and Medicare Certification Standards for D.J. Jacobetti Home for Veterans. Governor and Senate eliminated Sec. 403 which directed the department to pursue CMS and Medicaid certification for the completion of certification by October 1, 2018. (Sec. 403)

8. Homes for Veterans Quality of Care. Governor and Senate eliminated Sec. 404 which required that CMS and Medicaid certification efforts result in higher level of care, including a quarterly report to the Legislature. (Sec.404)

9. Michigan Veterans Trust Fund. Governor and Senate revised language clarifying expense reporting to the Legislature and combining language concerning the program from current year Sec. 408. (Sec. 405)

10. Michigan Veterans Affairs Agency (MVAA). Governor and Senate revised language by adding a subsection which requires a report on the percentage of veterans contacted (with a goal of 100%); to coordinate "with" rather than simply coordinate, veteran benefit counselors throughout a region; requiring a report that rather than states the percentage of county counselors requesting training, but the number of percentage trained by the MVAA and the number and percentage received funding form the MVAA to attend training. Governor and Senate also struck a subsection outlining guidelines for targeted grants. (Sec. 406)

11. Veterans Service Organization (VSO) Grant Guidelines. Governor and Senate added language requiring no less than quarterly reports from VSOs, including the number and type of claims in their entity that the VSO submitted to the USDVA, the number and type of claims above which were initiated or begun by an organization other than the one submitting the claim to the USDVA, and specifying that "fully developed claims" are those that are thusly defined by the USDVA. (Sec. 407)

12. Michigan Veterans Trust Fund. Governor and Senate eliminated Sec. 408, combining FY 2018-19 Sec. 408 guideline language for the fund with FY 2019-20 language in Sec. 405. (Sec. 408)

13. Interagency Agreement with Michigan Department of Health and Human Services (DHHS). Senate added a new section outlining an agreement for the department to take measures to ensure those who have served in the military and found eligible for assistance by DHHS are connected to potential veterans benefits. (Sec. 409)

14. County Veterans Service Fund. Governor and Senate added a new section requiring GF/GP appropriations for the fund be deposited to the restricted County Veteran Service Fund created under PA 210 of 2018, adding the all funds in the fund are appropriated and available for expenditure to support County Veterans Service Grants. (Sec. 410)

15. Special Maintenance Appropriations Guidelines. Governor and Senate revised department reporting requirement from a quarterly to a biannual basis. (Sec. 502)