UNDER THE DOME

Capitol Update, March 13th-April 6, 2009

Cynthia Ann Paul

Governor Proposes Giving Wetlands Back to the Feds- If implemented, approximately 33 SEIU Local 517M employees would be laid off. SEIU was involved in a press conference along with numerous environmental groups, Pat Lindemann (Ingham County Drain Commission) and Rep. Scripps to keep our wetlands program under state control. SEIU also provided testimony at the committee hearing held on the Wetlands program and we have a get active letter writing campaign on this issue. The beginning of April, MI DEQ gave the federal EPA notice of their intent to turn over the wetlands program to them. Please take action at http://seiuaction.org/campaign/wetlandsemployee_clone

SOCC Resolution Passes Senate and House- SCR 11 cuts the current pay scales for legislators, the governor, attorney general, secretary of state, Supreme Court justices and lieutenant governor were adopted in 2000 by 10 percent.

Foreclosure Package Passes House- Homeowners facing foreclosure would have 90 days to see if they could work out a modification to their loan with their lender under a legislative package passed out of the House, HB 4453 (73-34), HB 4454 (75-33) and HB 4455 (74-34). Upon receiving notice of a foreclosure, the homeowner would be provided information on how to contact a housing counselor. Lenders have problems with the bills, particularly requiring them to go through the more lengthy judicial foreclosure if a homeowner is eligible for a loan modification but is ultimately not offered one.

Earned Income Tax Credit Restriction Passes House- HB 4514 requires people to be residents of state for six months before being eligible for the earned income tax credit. The legislation was amended before being sent to the Senate to make the residency requirement affect tax returns in the current year as opposed to being retroactive to the 2008 tax year. The bill passed on a 106-3 vote.

Pregnant Police Officer Protection Passes the House- HB 4327 prohibits employers from treating a pregnant woman, or woman who just gave birth, any differently than employees affected by a different condition in terms of their ability or inability to work. It passed the House 99-11.

Firefighter Cancer Presumption Passes the House- HB 4473 provides that firefighters who contract certain cancers would qualify for worker’s compensation coverage if they had not smoked for at least five years prior to discovery of the disease. It passed the House 96-14.

Shut-Off Bill Package Passes the House- Utility consumers, especially senior citizens and those with low incomes, would be more protected from shut-offs under a legislative package that passed the House. Among the package’s provisions are bans on utility shut-offs between December 31 and March 31, requirements for utility providers to work with the state in identifying which customers receive public assistance and prohibitions on using electric limiting devices until the PSC adopts guidelines for their use. HB 4384, HB 4385, HB 4386, HB 4387, HB 4388, HB 4390, HB 4391, HB 4392, HB 4649, HB 4650, HB 4655, HB 4656, HB 4657, HB 4658, HB 4659, HB 4660, HB 4661, HB 4662 and HB 4673.

Pharmaceutical Accountability Bill Package Passes the House- The main bill (HB 4316) repeals the current law providing drug companies immunity if the FDA has approved the drug; HB 4318 moves pharmaceuticals to the Consumer Protection Act. HB 4317 would allow lawsuits under the new standards for incidents dating back to the 1996 passage of the current law. HB 4316 passed (61-48), HB 4317 passed (56-53) and HB 4318 passed (61-48).

Testimony Taken on Non-Citizens Kicked out of Our State's Prison System- HB 4130 will allow some prisoners that have deportation orders to go back to their country of origin after serving half of their sentence. Currently, there are about 155 prisoners that would be sent home under the bill, resulting in a $1 million savings to the state and about 55 more that could possibly qualify, depending on the status of their deportation orders, meaning the state could save up to $2 million and relieve some overcrowding issues. Rep. Alma Wheeler Smith is the Bill sponsor.

Spending on Peanut Recall- On top of deficits and cuts already announced for the fiscal year, add $423,311 for the Department of Agriculture the what the department has spent related to the national recall of peanuts and peanut butter from the Peanut Corporation of America, this amount could increase to more than $800,000 before the issue subsides.

Tax Cuts-

Senate Passed Property Tax Relief- This constitutional amendment that would protect homeowners against rising taxes when their property values are declining SJR H. State and local officials raised concerns, however, about the potential impact the proposal could have on their revenues and ability to provide services. Using some assumptions, the analysis said the revenue loss could reach $253 million overall, with $173.5 million of that from local governments. It failed the Senate 23-11, because two-thirds votes are required to pass. It then passed by 29-8 vote. This passed the House last legislative session.

Pop-Up Tax Relief- SB 346 provides that new home purchasers could get a property tax credit to guard against the effects of the “pop-up” tax under legislation that was unanimously approved by the Senate. It is anticipated to cost the state $21.3 million in 2010-11 fiscal year and $47.4 million in the 2011-12 fiscal year.

Auto Supplier Tax Cuts Pass the House- The House substituted HB 4126 (which originally repealed the Michigan Business Tax surcharge) to speed up the Michigan Economic Growth Authority credits going to auto suppliers. To get the MEGA credit, a company has to agree to retain at least 50 workers, invest in its facility and show it is at risk of closing without the state assistance. Providing those MBT credits by January 1, 2011 would cost the state’s general fund $250 million. This passed on a 106-3 vote after it was tie-barred to HB 4716, HB 4717, HB 4718, HB 4719 and HB 4720. These bills create an auto supplier job creation fund under the Michigan Strategic Fund and provide for related incentives.

Battery Tax Cuts Passes House, Senate and Signed by the Governor-f HB 4515 (PA 5) and SB 319 (PA 6) gives tax credits to manufacturers of advanced batteries was signed into law.

Rep. Vagnozzi Passed Away- Democratic Rep. Aldo Vagnozzi died of pancreatic cancer. He was 83. Mr. Vagnozzi, a former mayor, city council and school board member from Farmington Hills, left the Legislature last year due to term limits.

Switalski to Run Against Levin- Sen. Michael Switalski announced that he would run against U.S. Rep. Sander Levin in the 2010 Democratic primary.

Budgets-Senate:

STATE POLICE (SB 253): Totaled $539.2 million ($278.5 million in general funds) was one of the most anguished of the committee’s votes. Every member of the committee seemed to feel the State Police needed more funding, especially as officials worry that the state could slip below 900 troopers in a few years, and as the state has to take on more responsibilities because of the closure of the Detroit crime lab. One of the most difficult situations involved a proposed amendment to restore funding to the Michigan Council on Law Enforcement Standards. The budget takes $1.1 million from MCOLES and allocates it to the capital security service. Governor Jennifer Granholm had called for ending the capital security service to save funds, but Senate Majority Floor Leader Alan Cropsey (R-Dewitt) said he did not think the Lansing Police Department had the capacity to provide the police services needed for some 13 buildings in downtown Lansing. Still, lawmakers did not want to vote against adding money for MCOLES, which led finally to the amendment being held off in order to express the concern as boilerplate language. The budget also includes $3.4 million to cover rent in the new headquarters building under construction in downtown Lansing. It added $5 million to reflect the additional forensic casework the state has to take over with the closure of the Detroit lab and a $100 placeholder for the Marquette crime lab.

GENERAL GOVERNMENT (SB 245): One of the largest budgets the committee reported totals $3.2 billion (general funds total $681 million). The largest portion of the budget – which includes funding for the attorney general, the departments of Civil Rights, Information Technology, Management and Budget, State and Treasury, along with Executive Office, the Legislature and the auditor general – goes for revenue sharing to local governments. As the budget was reported, however, the focus came on two areas: the State Fair and the attorney general’s case awards. Sen. Michael Switalski attempted to add $100 as a placeholder to keep the State Fair (which Ms. Granholm has called for eliminating) in the budget. In part that was an effort to see if money could be found to maintain the event, the oldest of its kind in the nation, or to allow the state time to discuss transferring operations for the fair to a private entity.  Most discussion dealt with an attempt by Sen. Glenn Anderson to require civil awards won by the attorney general to be allocated to the general fund.

HUMAN SERVICES (SB 248): Again, efforts to restore funding for a variety of programs failed as the committee reported the Department of Human Services budget, totaling $4.7 billion. The proposed budget is slightly more than the current year’s appropriation, but the general fund total of slightly more than $1 billion is more than $190 less than the current year. Still, the budget restores funding to some programs that Ms. Granholm proposed eliminating, including after-school programs. But arguments to add money to things like the school clothing allowance failed because opponents said there simply wasn’t the money.  The budget does add $91.4 million to cover the requirements of the settlement reached in a lawsuit with a children’s advocacy group. However, to raise that funding and to provide for the additional case workers needed in child protection, the budget cuts the number of state workers by 290 employees in other areas.  The budget also includes cuts of $12.3 million to account for the closure of all state-operated secure juvenile facilities with the exception of the Maxey School in Livingston County.

TRANSPORTATION (SB 254): Discussion of the ongoing controversy over the Detroit River International Crossing did not dominate debate on the budget, which totals $3.3 billion (none of it in general funds). What drew the most discussion was an amendment directing the Department of Transportation to take steps to finish completing a limited access route of US 127 North until it meets with I-75. For several miles north of St. Johns, the road is a regular state highway with traffic stops and commercial activity. Over the years there have been a number of fatalities because motorists didn’t realize the road was no-longer limited access. Mr. Cropsey did say if the state had not spent money on the planning process for the DRIC it could have employed that money into making US 127 a limited access route all the way to I-75 and the Mackinac Bridge.

H.A.L. (SB 247): While Ms. Granholm wants to eliminate the Department of History, Arts and Libraries, the Senate budget maintains the department. The bill totals $44.2 million ($31.4 million in general funds) does not allocate funding for top level administrators, as the committee wanted to maintain the department until Ms. Granholm actually issues an executive order dismantling it. The budget also includes expressions that whatever happens with the structure of HAL, the state’s historical center and library remain under state authority within a state department. The committee did add a small placeholder, however, to keep alive the state’s book distribution center that otherwise would be ended.

D.E.L.E.G. (SB 243): The Department of Energy, Labor and Economic Growth budget totals $1.4 billion ($65 million in general funds) and the main issue in discussion had to do with restoring funds for several different worker-training programs. Included in that was money to restore the state’s No Worker Left Behind program up to its current funding, but Republicans argued that cutting some $15 million in state funding wouldn’t hurt the program since the state was bound to receive more than $200 million in federal money for worker assistance.

AGRICULTURE (SB 237): Totals $89.8 million (nearly $34 million in general funds), a substantial drop from the current year. However, the budget maintains spending for horse racing, which Ms. Granholm had largely tried to eliminate.

JUDICIARY (SB 249): The budget for state courts totals $263 million ($158.8 million in general fund), but committee members expressed concerns that attention had to be paid to areas such as the State Appellate Defender’s Office, which could find itself having to take on more cases because the closure of the Detroit Crime Lab could result in more cases be retried for botched evidence.

MILITARY & VETERAN AFFAIRS (SB 250): Totals $149.2 million ($39.5 million in general funds), which is a sizeable drop from the current $183.6 million being spent. However, $38.4 million in federal funds was cut recognizing the completion of a number of capital outlay projects.

Budgets- House:

DEPARTMENT OF CORRECTIONS (HB 4437)- The House Appropriations Corrections Subcommittee approved the budget on a party-line vote, matching the governor’s $1.96 billion in spending exactly, which represents a 2.8 percent, or $56.7 million, cut from the current fiscal year. General fund support for the budget totals $1.9 billion, which is 2.6 percent, or $49.7 million below current year funding levels. The budget concurs in the governor’s proposal to close more facilities, resulting in 3,500 less beds by October, as well as savings from the final closures of the Scott and Deerfield facilities, as well as Camp Branch. Reductions in costs related to those closures, including less money for new corrections officer training, hospital and specialty care, information technology, and worker’s compensation are also included in the budget. Rep. Proos unsuccessfully tried to amend the budget several times to provide other means of savings, such as cutting employee pay raises, reducing overtime, restoring telephone and store item fees for prisoners, along with privatizing some DOC functions. The budget was amended to reference legislation (HB 4710 and HB 4711) codifying the expansion of the parole board and to create a special board to oversee commutation, clemency and parole violation hearings. The budget includes spending $16.7 million for DOC to use beds at the W.J. Maxey Training School, as well as $4.4 million for adding 500 to 530 beds in current facilities, also known as double bunking. Prisons being consolidated into four complexes in Kincheloe, Carson City, St. Louis and Adrian will save the department $3.5 million. DOC will also see some partial-year savings of $3 million from contracting out for prisoner food service purchasing, portion control and nutritional services. The Michigan Prisoner Re-Entry Initiative will get $23.4 million more in general fund support to increase the number of parolees. That money would pay for programs such as residential services, substance abuse services and employment services. The budget adds $600,000 for the addition of five more parole board members. Global positioning system tethers would be added, along with 92 more parole agents under $16.9 million in spending. The tethers would go for 500 units of paroled sex offenders, as well as 1,500 additional units as paroles increase. Parole and probation supervision is also getting a $7.3 million bump to accommodate workload increases. The budget spends $1 million for a pilot community corrections residential program for high-risk, high-need probationers, which is aimed at thwarting those people from committing another crime or violating probation. The budget also includes $8 million for various mental health services and programs, including adding more outpatient treatment teams, expanding rehabilitation services and the crisis stabilization program and creating a 180-bed developmental disabilities unit. The county jail reimbursement program would receive an additional $775,000 under the budget. Prison store funding would be restored under the budget and the 10 percent surcharge on nonessential items charged to prisoners would be removed. The budget adds $4.2 million for Hepatitis C testing and treatment, along with increased funding for pharmaceuticals totaling $3.5 million. A new managed care contract with Prison Health Services Incorporated for hospital and physician care will receive an additional $1.9 million to meet increased costs. Sixty new “step down” beds, which offer sub-acute care for prisoners otherwise needing offsite hospitalization, will be added to Egeler’s Duane Waters Hospital at a cost of $1.1 million. The budget also spends $3.6 million for health care automation services, including electronic medical records and warehousing of prisoner health data. More nurses would be hired under the budget, which adds $2.1 million in spending. New boilerplate added by the subcommittee would require DOC to report on the number of prisoner suicides and the department’s response to those deaths, as well as the department’s continuous efforts to improve prisoner health care. Boilerplate was also added to lay out conditions for the food service contract, which includes a completion of a privatization project plan and cost benefit analysis. The analysis has to show at least a 5 percent savings with privatization and explain its impact on local Michigan vendors and growers.

K-12 SCHOOL AID (HB 4447)- Increases spending for both the current year and the 2009-10 fiscal year from what governor recommended, School Aid spending for the current year totals $13.289 billion, a .7 percent cut from what has already been appropriated, but $26 million more than Ms. Granholm’s recommendation. The cut is all School Aid funds, which would be down $158.8 million (1.3 percent) from current year. But the subcommittee added $1.5 million over the executive recommendation. The subcommittee matched the executive recommendation of $85 million general fund in the budget, which more than doubles the current-year allocation. The budget also includes $24.5 million in federal stimulus funds that had not been included in the executive recommendation. The federal stimulus money in the bill would be issued through grants to a consortia that included a high-need district, an intermediate school district and an organization specializing in on-line learning. Each group would have to develop plans to increase enrollment and graduation of at-risk students. The subcommittee restored the $7.7 million for the Center for Educational Performance and Information, which Ms. Granholm had proposed to cut by $1.5 million. For the coming fiscal year, the budget would total $13.133 billion, a $246.01 million cut from current year, but $169.3 million more than the executive recommendation. Most of the increase from the governor’s proposal, $219.79 million, is federal stimulus money. All of that was put into the funding formula to avoid cuts to the basic foundation allowance, which would remain at $8,489. Schools would also have to be open longer to receive the funding. The proposal requires 1,098 hours of instruction and at least 170 days of class. A class day would be a minimum of 5 hours of student contact time to avoid districts using half days to fill out the calendar. The subcommittee restored most of the grants the governor had proposed to eliminate, including such things as support to districts not receiving foundation allowance payments ($1.3 million), so-called isolated districts ($2 million), Great Parents Great Start program funding ($5 million) and advanced and accelerated grants ($285,000). But the subcommittee did cut some of the grants, like special at-risk funding for Dearborn and Baldwin school districts, by 25 percent. The subcommittee also calls on the Early Childhood Investment Corporation and the Department of Education to study the idea of consolidating all of the state’s early childhood education programs into a single process.The subcommittee also set aside $3 million to provide $50 per-pupil grant increases for any districts that complete a merger before July 1, 2010. The foundation allowance changes, which would essentially cut in half the foundation payments for half-day kindergarten, would apply to developmental kindergarten programs in 2011-12 and phase in for regular kindergarten beginning in 2012-13, two years after Ms. Granholm had proposed. The subcommittee kept the full $23.7 million for adult ed and the current method of distribution, though it eliminated carve-outs for Grand Rapids Community College and the Department of Corrections. In place of the competitive grants, the subcommittee plan would have the Department of Energy, Labor and Economic Growth develop an Adult Learning Planning Group to review the governor’s and other proposals for changing adult ed funding, with a final report due March 31, 2010.

DEPARTMENT OF EDUCATION (HB 4438)- Totals $120.26 million, a 26.7 percent increase from the current year and a $300,200 increase from the governor’s recommendation. General fund would see an even more substantial increase at $26.69 million from $7.44 million current year. Nearly all of the increase, $22.28 million ($16.7 million GF), is from the transfer of the Library of Michigan into the department. The subcommittee also restored $300,000 of the $360,000 Ms. Granholm had proposed to cut for book distribution centers run under the auspices of the library. Among the changes the subcommittee included was restoring funding for the assistance to teachers seeking national board certification (the state covers half the cost) and alternative certification programs at Central Michigan University and Wayne State University. The programs would cost an additional $300,000 in teacher certification funds. The subcommittee agreed to allowing the department to hire four additional staff, at a cost of $320,000, but redistributed those positions. The subcommittee took 1.5 of those FTEs from the small high schools program and gave one for a school nurse consultant and half to oversee the Blue Ribbon Exemplary Schools program.

COMMUNITY COLLEGES (HB 4435)- The subcommittee approved $396.36 million for the 28 community colleges, a 32.4 percent increase over both current year funding and Ms. Granholm’s recommendation. But all of the $97 million increase is federal stimulus money. And all of the stimulus money would be designated for workforce training programs at the schools. Schools receiving the funds also would have to hold tuition increases to no more than the consumer price index plus .5 percentage point. General fund support for the colleges would remain steady at $299.36 million.

HIGHER ED (HB 4441)- The budget for the state’s 15 public universities holds the schools harmless of the governor’s proposed 3 percent cut in aid . But it does so by cutting general fund support and replacing it with federal stimulus dollars. It totals $1.8 billion, $1.6 billion in general funds. Overall, schools would receive a 3.8 percent, or $66 million increase in appropriations compared to the current fiscal year. But general fund support for the colleges would decrease by $45 million, or 2.8 percent. The House Appropriations Committee amended the bill by adding $3.5 million for the Agricultural Experiment Station and Cooperative Extension services under Michigan State University and about $2 million in federal stimulus dollars to fully fund the Indian Tuition Waiver program.

DEQ HB (4439)- The state’s wetlands program would be transferred to the U.S. Environmental Protection Agency, as proposed by Governor Jennifer Granholm, under the budget unanimously reported out of the House Appropriations Environmental Quality Subcommittee. The subcommittee budget matches the governor’s recommendation, spending $341.3 million gross, $33.1 million general fund. That represents a $10.6 million reduction in general fund spending, or 24.3 percent. Overall spending for the department is down 6.2 percent, or $22.6 million, compared to the current fiscal year.  The budget is scaled down because of deletion of the state’s wetlands regulatory program, along with elimination of the drinking water revolving fund match. Transfer of the wetlands program will require legislation to implement. The budget is predicated on those savings, $2.1 million general fund, $4 million gross. But the subcommittee recommendation also includes a boilerplate provision that says the Legislature will address the funding needs for the wetlands program if lawmakers don’t approve the program transfer to the Environmental Protection Agency by October 1. The air quality fee increase would offset the cut in general fund support for the renewable operating permit program under Executive Order 2008-21, but that would require separate legislative action to fully implement. The state’s drinking water revolving fund would be cut by $2 million, as would $898,000 for asbestos remediation under the air quality program. The budget also calls for cutting $897,000 in general funds for pollution prevention workshops, eliminating the compliance assistance workshop. And the on-site wastewater program would be deleted, saving $600,000 in general funds. The aquifer protection program would be eliminated, saving $400,000 in restricted dollars. Another $200,000 in general funds would be saved from cutting the radiological protection program. But the cut means the state will not become an “agreement” state under the U.S. Nuclear Regulatory Commission authority’s 2009 deadline, according to the House Fiscal Agency. The environmental protection fund would see a $2 million general fund cut supplemented by $1 million from the cleanup and redevelopment trust fund and $1 million from the community pollution prevention fund. General fund support would also be scaled back for the above ground storage tank and underground storage tank programs by $1.9 million, but replaced with $1.4 million from the refined petroleum fund and $500,300 from the solid waste management fund. Other fund shifts in the budget include replacing inspection fee revenue in the Office of Geological Survey with oil and gas permit fees. Program staff was reassigned. Under the subcommittee budget, several boilerplate provisions dealing with various DEQ reports are deleted.

DCH- (HB 4436)-Department of Community Health budget cleared the House Appropriations Committee lighter in general fund support than the current fiscal year. The budget for fiscal year 2009-10, reported out on a party-line vote, totals about $13.4 billion (about $2.6 billion in general funds). That is about 14.2 percent lower than the general fund support for DCH’s current budget, although final figures on the spending were unavailable because of amendments added by the committee. The budget relies on $1.7 billion in additional federal funds for DCH, a 23.6 percent hike compared to the current fiscal year. There is an increase for direct care workers and poison control. The committee did add a requirement that the department post its spending online, but the panel rejected a GOP amendment requiring transparency that would have limited DCH’s spending on the list to $25,000. Democrats said their amendment makes sure privacy laws aren’t violated. Democrats did approve their own amendments, one of which would strike the clawback provision requiring hospitals to pay back Medicaid dollars at the end of the year. The provision was implemented through Executive Orders during the Engler administration. Mr. McDowell said that would cost about $45 million in gross appropriations. The panel also added about $60 million to $70 million gross, $23 million general fund to add hospitalization for adult waiver recipients. And a Democratic amendment broadening a study to be done on health care coverage for direct care workers was also added to the bill as it was sent to the full House. While the budget concurs with the governor’s proposals to eliminate the Office of Long-Term Care Supports and Services, close the Mount Pleasant facility, cut Senior Olympics funding and get rid of the Office of Drug Control Policy, for a savings of about $4.1 million in general funds. The budget also concurs with the executive on $44.2 million in expected general fund savings for permitting health plans to get federal pharmaceutical rebates for managed care Medicaid recipients. The proposal, which would reduce federal support by $120 million, requires a change in federal law. The panel put $100 placeholders for other cuts the governor backed, including eliminating $1.1 million nine mental health court pilot projects and $300,000 for traumatic brain injury pilot funding. But the committee did not concur in a $7.6 million cut for Community Mental Health Non-Medicaid Services, actually adding a 2 percent increase in current year spending at a cost of $6.5 million. The budget also does not eliminate multicultural services spending, $6.8 million Ms. Granholm had proposed cutting. The governor also had proposed reductions in spending for the Healthy Michigan Fund, but the committee kept spending for those programs and offset a loss of cigarette tax revenue for some programs with $3.6 million in general funds. The committee also dissented against most of the governor’s cuts to public health programs, as well as $2 million in cuts to senior community, nutrition and volunteer programs. Where the governor had added spending, the committee mainly agreed with, including a 1 percent wage increase for direct care workers in mental health setting, which would be retroactively effective February 1. But the committee added a 50 cent wage hike, at a cost of $10.9 million, which would begin October 1. The largest agreement between the two is in expecting more federal Medicaid dollars, saving the state’s general fund $929.5 million. Both the governor and committee added $5.3 million for an interdepartmental grant with the Department of Corrections for higher usage of mental health services. The budget also includes concurrence on using more federal dollars to expand the Children’s Special Health Care Services program to 4,000 more kids. Increased Medicaid caseloads and inflation, which would cost $129 million in general funds, was also added in both the executive and committee budget. The committee also added its own list of spending, including $4 million in added funding to the State Disability Assistance Program Substance Abuse Services. The budget also adds $24 million for various community substance abuse prevention and treatment, including $9 million for a 90-day intensive substance abuse treatment for some criminals and $300,000 for a clinic serving 25 counties. Free health clinics would get $250,000 more in funding, with clinics on Beaver, Drummond and Mackinac islands receiving $100,000 more. The committee added $5 million for local public health departments, as well as $21 million for graduate medical education. Primary care physicians would get a 1 percent increase under the committee budget, and the pharmacy dispensing fee would get 30 cents more per prescription for the use of e-prescriptions. The state’s Healthy Kids Dental program would be expanded to every county under the committee budget, which adds 22 counties at a cost of $20 million. Adult home help workers will see a 50 cent per hour wage increase under the budget, at a cost of $4.4 million. And the committee adds $98 million for preventative and ambulatory health services through county health plans. Major boilerplate changes include automatically enrolled a child in the MIChild program if they meet income eligibility for free breakfast, lunch or milk at school. The budget also requires DCH to come up with rates by January 2010 for people who are enrolled in both Medicare and Medicaid. The plans would have to maintain a Medicare Advantage Special Needs Plan certification. The new boilerplate also requires the department to recover money from drug companies that lost lawsuits regarding the safety of their product if people on Medicaid used that drug.

DNR -(HB 4446)-the Department of Natural Resources includes historic and museum state functions under a subcommittee’s recommendation. The House Appropriations Natural Resources Subcommittee budget is consistent with the governor’s recommendation in spending $308 million, of which $17.2 million is general funds. That represents a $6.8 million, or 64.5 percent, increase in general fund spending for the department. Gross spending would increase by 4.4 percent or $13 million under. Most of the general fund increase comes from $6.6 million in HAL programs, including Mackinac Island State Park and the State Museum, which would be transferred to the DNR. The subcommittee added $75,000 for cormorant control. The game and fish fund may be $10 million-$11 million short depending on how stock market investments go. It deleted the department’s hiring freeze, which the governor had recommended. The budget includes an increase in spending for trail development and maintenance as Michigan is receiving $1.8 million more in competitive grants compared to the current fiscal year. The subcommittee’s recommendation includes increasing funding for the state parks endowment fund by $1 million in restricted funds to cover insufficient revenues from motor vehicle permits and other user fees. The state’s forest management program would receive $750,000 more in restricted dollars that came in during the timber harvest in fiscal year 2007-08. Boilerplate revised by the subcommittee instructs the department to mark 58,000 acres for harvest, which is a spike above the 54,000 acres the state did last year. The subcommittee added boilerplate requiring the DNR to report on the number of full-time equivalent employees twice a month.

The chamber passed the budgets for community colleges (HB 4435), higher education (HB 4441), K-12 schools (HB 4447), and the departments of Education (HB 4438) and Corrections (HB 4437).

Left undone were budgets for the departments of Environmental Quality (HB 4439), Community Health (HB 4436) and Natural Resources (HB 4446).

Transportation Stimulus Funding Passes House, Senate and Signed by the Governor HB 4582- Spending for $873 million of the state’s transportation federal stimulus funds, which will support more than 130 projects around the state. The reason for the rush is that the state is required to let half of these highway, road, bridge and transit projects out for bid within 120 days of receiving the money. While that deadline is June 28, the governor needs to sign the measure by April 2 in order to meet the first letting date of the construction season, according to the Michigan Municipal League, which supported the bill along with the County Road Association of Michigan. State trunkline and road and bridge funding make up the largest share of the spending, $635 million. Local road and bridge construction would receive $211.8 million. Projects include repair and reconstruction of I-475 in Flint, I-94 in Ann Arbor, I-196 in Grand Rapids, as well as reconstruction and widening of M-59 in Pontiac and I-94 near Kalamazoo. Public transit agencies in non-urban parts of the state would see $21.9 million under the bill, while rural intercity bus services will receive $3.9 million. Any further discretionary dollars the state receives through the stimulus will be dealt with in a separate bill. The legislation appropriates spending through the already existent formula process, so local and state projects already in the pipeline will get financing first. The Governor signed this legislation the beginning of April, PA 3 of 2009.

House, Senate and Governor Passes Stimulus Supplemental HB 4258- Another chunk of the federal stimulus coming to Michigan would be spent on a variety of programs under a supplemental reported out of the House. The legislation spends approximately $1.2 billion on programs, $237 million of which would go to the drinking water revolving fund, which provides communities with loans to control water pollution, as well as $150 million for food assistance and $244 million for weatherization. Other large ticket items in the supplemental include $41.2 million for law enforcement grants through the Byrne Justice Assistance Grant Program, $26.7 million for energy efficiency and conservation block grants, $82.1 million in state energy program grants and nearly $180 million for activities related to Michigan Works! Agencies. The supplemental also appropriates $873 million for transportation projects, most of which, $847.2 million, would go for state highway infrastructure projects. The measure also includes $938.1 million for education and K-12 grants, which are distributed under the Title I-A formula. Contention was over $2 million for the state oversight of the federal stimulus, which would be done by four additional employees. The Governor signed this legislation, PA 7 2009.

Federal Level:

Both the U.S. House and Senate passed a version of President Obama's budget, both them include funding for reforming our healthcare system. Congressional Democrats overwhelmingly embraced President Obama's ambitious and expensive agenda for the nation yesterday, endorsing a $3.5 trillion spending plan that sets the stage for the president to pursue his most far-reaching priorities. Voting along party lines, the House and Senate approved budget blueprints that would trim Obama's spending proposals for the fiscal year that begins in October and curtail his plans to cut taxes. The blueprints, however, would permit work to begin on the central goals of Obama's presidency: an expansion of health-care coverage for the uninsured, more money for college loans and a cap-and-trade system to reduce gases that contribute to global warming. The measures now move to a conference committee where negotiators must resolve differences between the two chambers, a prelude to the more difficult choices that will be required to implement Obama's initiatives. While Democrats back the president's vision for transforming huge sectors of the economy, they remain fiercely divided over the details. The House voted 233 to 196 to support the Democratic budget proposal, with just 20 Democrats voting with Republicans in opposition. The Senate approved its blueprint 55 to 43, with all but two Democrats voting yes. The biggest dispute between the two chambers is whether to use a powerful procedural shortcut that could allow Obama's health, education and energy initiatives to pass the Senate with 51 votes rather than the usual 60, eliminating the need to win over any Republicans. The House yesterday voted to include the procedure, known as reconciliation, in its budget plan to speed health care and education legislation. The Senate, meanwhile, has soundly rejected reconciliation for Obama's cap-and-trade proposal, adopting an amendment to ban the maneuver by a vote of 67 to 31. The House budget does not include cap-and-trade in its reconciliation provisions. Other differences between the two chambers are comparatively minor. Both the House and Senate budget plans would authorize about $3.5 trillion in spending next year, about $100 billion less than Obama requested. Much of that reduction would come from lawmakers' decision not to budget another $250 billion for the Treasury's $700 billion bailout of the nation's financial system. That move would not prevent Obama from requesting the funds, however. Both chambers also trimmed Obama's request for government agencies with the Senate cutting $15 billion and the House cutting about $7 billion. But both budget plans would fully fund Obama's request for defense spending and authorize the administration to spend $130 billion on the wars in Iraq and Afghanistan next year. Both chambers have adopted Obama's plans to extend tax cuts for the middle class beyond their 2010 expiration date and to allow cuts for families making more than $250,000 a year to expire. But both chambers scaled back Obama's plan to protect millions of families from the alternative minimum tax and dropped his proposal to make permanent his signature $800 tax credit for working families.