FY 2022-23 AGRICULTURE AND RURAL DEVELOPMENT BUDGET                            S.B. 827 (S-1):  SENATE-PASSED

 

 

 

 

 

 

Senate Bill 827 (S-1 as passed by the Senate)

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2021-22 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2021-22

YEAR-TO-DATE*

FY 2022-23

SENATE-PASSED

AMOUNT

PERCENT

FTE Positions..............................................................

                     521.0

                     521.0

                         0.0

              0.0 

GROSS..........................................................................

          155,685,300

          142,245,100

          (13,440,200)

            (8.6)

Less:

 

 

 

 

   Interdepartmental Grants Received.........................

                 320,000

                 326,700

                     6,700

              2.1 

ADJUSTED GROSS....................................................

          155,365,300

          141,918,400

          (13,446,900)

            (8.7)

Less:

 

 

 

 

   Federal Funds...........................................................

            13,599,800

            19,670,900

              6,071,100

            44.6 

   Local and Private.......................................................

                   71,300

                   21,300

                 (50,000)

          (70.1)

TOTAL STATE SPENDING.........................................

          141,694,200

          122,226,200

          (19,468,000)

          (13.7)

Less:

 

 

 

 

   Other State Restricted Funds..................................

            44,327,300

            44,706,400

                 379,100

              0.9 

GENERAL FUND/GENERAL PURPOSE...................

            97,366,900

            77,519,800

          (19,847,100)

          (20.4)

PAYMENTS TO LOCALS...........................................

            11,800,000

            11,800,000

                            0

              0.0 

*As of April 12, 2022.


 

 

 

 

 

Gross

GF/GP

FY 2021-22 Year-to-Date Appropriation.................................................

$155,685,300

$97,366,900

 

Changes from FY 2021-22 Year-to-Date:

 

 

  1.  Economic Development for Food and Agriculture. The Governor recommended $30.0 million in GF/GP funding in support of Michigan’s agriculture processes including supply chain, infrastructure, workforce resources that have been affected because of the pandemic, and also to reduce environmental risks in food processing facilities and support domestic marketing programs. The Senate did not include.

0

0

  2.  Eastern Market Facility Upgrades, The Senate included $12.0 million GF/GP in one-time funding for facility improvements at Detroit's Eastern Market.

12,000,000

12,000,000

   3.  Office of Rural Development. The Governor recommended $10.0 million in GF/GP funding for grant assistance to rural communities faced with challenges in the areas of economic and workforce development, affordable housing, infrastructure, education, and high-speed internet connection. The Senate did not include.

0

0

  4.  Reforestation in Northern Lower Peninsula. The Governor and Senate recommended $5.4 million Federal funds to reforest 16,100 acres of private and State-owned land.

5,400,000

0

  5.  Food and Agriculture Preparedness, Readiness, and Response. The Governor recommended adding 4.0 FTEs and $1.6 million GF/GP for emergency management preparations. The Senate did not include.

0

0

  6.  Pesticide Safety. The Governor recommended 6.0 FTEs and $1,170,000 GF/GP funding to expand agriculture worker protection program to protect workers and pesticide environments from pesticide exposure. The Senate did not include.

0

0

  7.  Buy Michigan Campaign. The Governor and Senate (using "Select Michigan" as the campaign title) recommended funding $1,0 million GF/GP to create a buy local campaign for Michigan grown and raised products.

1,000,000

1,000,000

  8.  Local Conservation Districts. The Senate included $1.0 million GF/GP on-going to replace $1.0 million GF/GP in removed one-time funding and continue the total funding in FY 2022-23 at current year level of $3.0 million GF/GP.

1,000,000

1,000,000

  9.  Grants to Protein Processors. The Senate added $1.0 million GF/GP to the Food and Agriculture Investment Program for grants to new and expanding protein processors.

1,000,000

1,000,000

10.  Animal Welfare and Veterinary Care. The Governor recommended $650,000 GF/GP funding for support to Michigan registered animal shelters that have experienced adverse effects because of the pandemic. The Senate did not include.

0

0

11.  Animal Industry Federal Support - Chronic Wasting Disease. The Governor and Senate recommended $500,000 in Federal funds to implement a biological study on chronic wasting disease.

500,000

0

12.  Community Supported Agriculture Program. The Governor recommended $500,000 GF/GP to assist in bringing fresh fruits and vegetables to families facing food insecurities. The Senate did not include.

0

0

13.  Groundwater Monitoring. The Senate added a $100 GF/GP one-time placeholder appropriation for a groundwater monitoring project.

100

100

14.  Environmental Stewardship. The Senate reduced the Environmental Stewardship appropriation line by $100 to accommodate the one-time $100 appropriation for groundwater monitoring.

(100)

(100)

15.  Fund Shift. The Governor and Senate recommended a shift of $50,000 in funding from Private to Federal, to reflect funds received.

0

0

16.  Elimination of FY 2021-22 One-Time Funding. The Governor and Senate recommended the elimination of FY 2021-22 one-time funding of $36,055,000 GF/GP, including $25.0 million for Agriculture Nutrient Best Management Voluntary Practices Program, $3.2 million for Agriculture Equine Industry Development Fund, $3,180,000 for Farm Innovation Program, $1,950,000 for County Fairs, Shows, and Expositions, $1.1 million for Fair Food Network - Double Up Food Bucks, $1.0 million for Local Conservation Districts, $400,000 for Bovine TB Quarantine - Producer Reimbursement, and $225,000 for Farm Stress Program.

(36,055,000)

(36,055,000)

17.   Economic Adjustments. Includes $1,714,800 Gross and $1,207,900 GF/GP for total economic adjustments, of which an estimated negative $686,400 Gross and negative $476,200 GF/GP is for legacy retirement costs.

1,714,800

1,207,900

18.   Comparison to Governor's Recommendation. The Senate is $29,920,000 Gross and $29,920,000 GF/GP under the Governor.

 

 

 

Total Changes.....................................................................................

($13,440,200)

($19,847,100)

FY 2022-23 Senate-Passed Appropriation.............................................

$142,245,100

$77,519,800

 

FY 2022-23 Boilerplate Changes from FY 2021-22 Year-to-Date:

  1.   Acronyms and Definitions. The Governor removed definition of "Fiscal Agencies", "HHS", "LARA", "MDEGLE", and "subcommittee", terms currently used throughout FY 2020-21 boilerplate. The Senate retained current year language. (Sec. 203)

  2.  Reporting Requirements. The Governor removed a subsection that required notification when a report has been placed on the Department's website. The Senate retained current year language. (Sec. 204)

  3.  General Fund Lapse Report. The Governor amended the language to shift the due date of the report from no later than November 30 to December 30.The Senate retained current year language. (Sec. 209)

  4.  Contingency Fund Legislative Transfers. The Governor amended language to increase the maximum of Federal fund transfers from $3.0 million to $5.0 million, increase the maximum for Restricted funds from $2.0 million to $6.0 million, and keep the local and private funds limit that would be eligible for transfer at $100,000. The Senate did not include this section. (Sec. 210)

  5.  Web-Based Fiscal Status Reporting. The Governor amended language by changing it from the Department shall "cooperate with the SBO" to "shall report to SBO."  The Senate retained current year language. (Sec. 211)

  6.  Restricted Fund Balances Report. The Governor amended language by changing it from the Department shall "cooperate with the SBO" to "shall report to SBO". The Senate retained current year language. (Sec. 212)

  7.  Disciplinary Action. The Governor recommended elimination of this section, which prohibited action against an employee for communicating with legislative staff. The Senate retained current year language. (Sec. 215)

  8.  Quarterly Employee Status Reports. The Governor deleted this reporting requirement. The Senate retained current year language. (Sec. 216)

  9.  Work Project Expenditures. The Governor deleted this section, which required that, to the extent possible, appropriations in part 1 not be spent until all existing work project funds for that same purpose have been spent. The Senate retained current year language. (Sec. 217)

10.  Administrative Board Transfers. The Governor deleted this section, which allows the Legislature to transfer funds via resolution should the Administrative Board transfer funds. The Senate retained current year language. (Sec. 218)

11.  Retention of Reports. The Governor and Senate recommended elimination of this section, which requires the Department to receive and retain records. (Sec. 219)

12.  Policy Changes Made to Implement Public Acts. The Governor and Senate deleted language that required the Department to report annually on policy changes made to implement recent public acts. (Sec. 220)

13.  Severance Pay Report. The Governor deleted a requirement for a report on any severance pay spent by the Department. The Senate retained current year language. (Sec. 221)

14.  COVID-19 Requirements. The Governor and Senate deleted language prohibiting certain departmental requirements for COVID-19 vaccinations or testing. (Sec. 222)

15.  Authorization of Fees. The Senate added a section requiring that a commercial pesticide applicator fee shall not exceed $75.00 for a three-year testing period. (Sec. 301)

16.  Chronic Wasting Disease Testing. The Senate added new language requiring $200,000 from the appropriation for Animal Disease Prevention and Response to be used to provide reimbursement to licensed privately owned cervid facilities for the costs of required testing for chronic wasting disease and Bovine TB. (Sec.455)

17.  Farmland and Open Space Preservation Program. The Governor deleted language requiring timely processing of tax credits. The Senate retained current year language. (Sec. 610)

18.  Food and Agriculture Investment Program. The Governor removed language requiring project guidelines be approved by the Michigan Agriculture Commission and added that the estimated cost of the project would be $2,472,600.The Senate retained current year language and added a designation of $1.0 million shall be allocated to grants to new and expanding protein processors. (Sec. 701)


19.  Office of Rural Development. The Senate added new language which provides guideline and goals for the office and that projects funded shall be done in coordination with the Michigan infrastructure council. (Sec.702a)

20.  Unspent Industry Support Revenues. The Governor and Senate added new language allowing industry support funds to be carried forward into the following year and not lapse to the General Fund. (Sec. 707)

21.  County Fairs, Shows, and Expositions Grant Program. The Governor deleted language that stated "[a]ll grants will be distributed in accordance with this section and the grant guidelines published prior to the request for proposals" and added the cost of the project would be $500,000. The Senate retained current year language. (Sec. 805)

22.  Agriculture Nutrient Best Management Voluntary Practices Program. The Governor and Senate deleted this section referring to one-time appropriations for a water quality enhancement program. (Sec. 1001)

23.  Agriculture Equine Industry Development Fund (AEIDF). The Governor and Senate deleted this section referring to one-time appropriations to the AEIDF. (Sec. 1002)

24.  Bovine TB Quarantine Producer Reimbursement. The Governor and Senate deleted this section referring to one-time appropriations for financial assistance to livestock producers. (Sec. 1003)

25.  Farm Innovation Grant Program. The Governor and Senate deleted this section referring to one-time appropriations for grant assistance to farmers. (Sec. 1004)

26.  Farm Stress Program. The Governor and Senate deleted this section referring to one-time appropriations for behavioral healthcare assistance to farmers. (Sec. 1005)

27.  Office of Rural Development. The Governor recommended new language providing guidelines for distributing $10.0 million in grant funds proposed in part 1, to be used for enhancing broadband, housing, infrastructure, education, and workforce development. The Senate did not include. (Sec. 1-900)

28.  Economic Development for Food and Agriculture. The Governor recommended new language providing guideline for the expenditure of a $30.0 million program proposed in part 1, to support the food supply chain from Michigan farms and improve food safety and security. The Senate did not include. (Sec. 1-901)

 

Date Completed: 5-4-22                                                                                                     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.