SB0831: SENATE-PASSED (Date Completed: 05-3-22)

FY 2022-23 STATE BUDGET S. B.831 (S-2): SENATE-PASSED

Senate Bill 831 (S-2 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..............................................................	1,586.0	1,309.0	(277.0)	(17.5)
GROSS..........................................................................	252,164,300	255,196,700	3,032,400	1.2
Less:
Interdepartmental Grants Received.........................	20,000,000	20,000,000	0	0.0
ADJUSTED GROSS....................................................	232,164,300	235,196,700	3,032,400	1.3
Less:
Federal Funds...........................................................	1,460,000	1,460,000	0	0.0
Local and Private.......................................................	50,100	50,100	0	0.0
TOTAL STATE SPENDING.........................................	230,654,200	233,686,600	3,032,400	1.3
Less:
Other State Restricted Funds..................................	218,218,600	221,007,300	2,788,700	1.3
GENERAL FUND/GENERAL PURPOSE...................	12,435,600	12,679,300	243,700	2.0
PAYMENTS TO LOCALS...........................................	1,343,800	1,417,200	73,400	5.5

*As of April 12, 2022.

	Gross	GF/GP
FY 2021-22 Year-to-Date Appropriation.................................................	$252,164,300	$12,435,600

Changes from FY 2021-22 Year-to-Date:
1. Mobile Office Expansion. The Governor included 1.1 million in GF/GP funding and 10.0 FTEs to expand staffing to increase services for its seven mobile offices across the state. These mobile offices provide Secretary of State services to vulnerable populations in congregate facilities, COVID-sensitive populations, and rural areas. Senate did not include.	0	0
2. Enhanced Driver License (EDL) Processing Costs. The Governor/Senate increased restricted funding authorization by $1.0 million to support the increase in the number of EDLs being issued due to the upcoming implementation of REAL ID requirements.	1,000,000	0
3. State Contracted Security Services. The Governor/Senate included additional funding due to increased contract costs for DTMB-contracted security for state buildings.	300,000	0
4. CSB Revenue Adjustments. The Governor/Senate reduced authorizations across five line items to more accurately align restricted revenues with the decline in revenue receipts for the following: State Lottery fund ($1.0 million); Reinstatement Fees ($487,600); Vehicle Theft Prevention Fund ($396,600); Parking Ticket Court Fines ($358,500); Driver Improvement Course Fund ($308,200); and Child Support Clearance Fees ($163,600).	(2,730,300)	0
5. Unclassified Salaries. The Governor/Senate included a $39,100 increase in unclassified salaries.	39,100	39,100
6. Look-Up Fee Increase. The Governor included a $4 increase in the Look-Up fee from $11 to $15. The increased fee would generate an estimated $19.0 million in TACF revenue, the major funding source for the Department of State. The increase is shown as zero here as it is included in the individual line items that comprise the Gross increase from FY 2021-22 to the Executive Recommendation for FY 2022-23. Senate did not include this fee increase but funded line items at Governor’s recommendation with existing fee revenue.	0	0
7. Transportation Administration and Collection Fund (TACF) Restoration. The Governor/Senate restored $18.0 million of one-time FY 2021-22 authorization from the Transportation Administration Support Fund (TASF) back to the TACF. This fund shift affects several line items in four funding units and nets to zero as both funds are restricted funds.	0	0
8. FTE Reduction. The Senate reduced FTEs by a total of 277.0 across several line items to reflect FTE levels reported for the First Quarter FY 2022.	0	0
9. Economic Adjustments. Includes $4,423,600 Gross and $204,600 GF/GP for total economic adjustments, of which an estimated negative $1,470,800 Gross and negative $76,200 GF/GP is for legacy retirement costs (pension and retiree health).	4,423,600	204,600
10. Comparison to Governor's Recommendation. The Senate is $1,067,300 Gross and GF/GP under the Governor’s recommendation.

Total Changes......................................................................................	$3,032,400	$243,700
FY 2022-23 Senate Passed Appropriation...........................................	$255,196,700	$12,679,300

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

1. Governor: Moved boilerplate from the FY 2020-21 general sections that applied to all General Government budgets to the Article for the Department of State. Changes to those items can be found in the highlight sheet for the General Sections.

2. Contingency Funds. The Governor increased funding for contingency funds for Federal, State restricted funds, local funds, and private funds. The Federal funds limit increased from $500,000 to $2.0 million; the State restricted funds limit increased from $500,000 to $7.5 million; the Local funds limit increased from $25,000 to $50,000; and the Private funds limit increased from $50,000 to $100,000. Senate did not include this section. (Sec. 701)

3. Record Look-Up Fees. The Governor increased the look-up fee from $11 per record to $15 per record. The increased fee is estimated to bring in additional revenues totaling $19.0 million annually. Senate did not include this fee increase. (Sec. 703)

4. Branch Office Closure Notification. The Governor deleted all language requiring the Department to give at least a 180-day notice to the Legislature before any branch offices are closed, relocated, or consolidated. Senate retained. (Sec. 714)

5. In-Person Services at Branch Offices. The Governor deleted language stating that the funds provided in Part 1 for Branch Operations must be used to provide adequate in-person services as defined in section 1a of the Michigan Vehicle Code. Senate retained. (Sec. 718)

6. Election Mailings. The Governor deleted language requiring a notice to Legislative leadership before the Secretary of State sends any election-related materials to 20% or more of the electorate unless the secretary of state is exercising supervisory authority over the administration of local elections under applicable state law. Senate revised and retained. (Sec. 720)

7. NEW. Report on Notices Sent by the Secretary of State. Senate added new language requiring the Secretary of State to submit a report to the legislature regarding the sending of notices by clerks to electors and the results of those mailings. (NEW Sec. 720a)

8. DELETED. Redistricting Commission Report. The Governor/Senate deleted the report detailing the Department's expenditures associated with the role of the Secretary of State serving as the secretary of the Commission. (Sec. 721)

9. Voter Registration Report. The Governor deleted the report required detailing the Department's expenditures associated with voter registrations. Senate retained. (Sec. 721a)

10. Legacy System Replacements. The Governor deleted language requiring the Department to modernize and expand the entire system and remove existing programs from the legacy mainframes. Senate retained. (Sec. 722)

11. Legacy Cost Estimates. The Governor/Senate provided the following Legacy Costs estimates for FY 2022-23: Total legacy costs estimated at $28,229,500. Of that total, $17,139,000 is for pension-related legacy costs and $11,090,500 is for retiree health care legacy costs for the fiscal year ending September 30, 2022. (Sec. 725)

Date Completed: 05-3-22 Fiscal Analyst: Joe Carrasco, Jr.

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.