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Under the Dome

Capitol Upate, April 7 thru June 30th, 2009

Cynthia Ann Paul

Lobby Day May 8th, 2009- Press Conference w/ Rep. Roberts and Miller and State Senator Hansen Clarke on the Public Service Accountability legislation that had just been introduced the day before, HB 4892.
The Local 517M members lobbied on the following issues:
1) Public Service Accountability, take action at http://seiuaction.org/campaign/lobbydaypsa;
2) Allow non-instructional school employees the right to negotiate the issues of contracting out, take action at  http://seiuaction.org/campaign/restorefairness2009 ,
3) Increasing revenue sharing, take action at  http://seiuaction.org/campaign/localfundingincrease2009 . 
Local 1 members lobbied on the following issues:
1) justice for janitors, take action at  http://seiuaction.org/campaign/justiceforjanitors;
2) End  Redlining, End Discrimination, take action at  http://seiuaction.org/campaign/redlining
Lunch we had 39 state legislators join us along with Jerome Marks from the Governor’s office and Butch Holowell, the insurance Czar.

Non-Instructional School Employees Allowed to Negotiate Contracting Out- House Bill 4219, Sponsored by Rep. Miller that removes the issue of contracting out for non-instruction school employee jobs from the prohibited subjects of bargaining under the Public Employees Relation Act (PERA) to allow them once again to negotiate over the issues of privatization, was reported out of House Labor Committee on May 20, 2009, along party lines. 

UI Extension and Increase signed into law- The House approved HB 4668, HB 4669,and HB 4670 on votes of 108-0, while the Senate approved SB 399, SB 400 and SB 401 on votes of 37-0. The legislation allows people who are unemployed to receive an additional seven weeks of benefits beyond the 13 the state already provides.  Providing a total of 79 weeks an individual can collect UI benefits.  Cost of those extended benefits would be paid for through the federal stimulus. UI benefits were also increased by $25 under this package.  Signed into law April 13th as PA 18, 19 and 20.

Granholm signs mortgage foreclosure package- The (HB 4453, HB 4454 and HB 4455, PA 29, PA 30, PA 31) gives homeowners an extra 90 days to work out a mortgage modification plan with their lenders. It also requires lenders to notify homeowners in writing that the mortgage is in default and who to contact to resolve the problem.

Re-training and Part-time Employee UI Benefit Bills (AKA UI Modernization Bills) (HB 4785  and HB 4786)- this package provides benefits to persons who are not actively seeking employment but who are enrolled in job training programs and to some part-time workers.  This package  has passed the House along party lines and currently remains in the Senate despite pressure to move it.  We have a get active letter writing campaign on this issue at http://seiuaction.org/campaign/unemploymentmodact

Worker Freedom Act (HB 4467) - Prohibits employers from mandating employees attend meetings in which they expose their political or religious beliefs employers  (inlcuding unionization) they would also be prohibited from penalizing employees for reporting any violation of the proposed law.  This passed the House 68-42.

Hate Crime Legislation Passes House- Bills that would provide harsher penalties for perpetrators of crimes that are bias-motivated passed out of the House, HB 4835 and HB 4836 . As passed, a person is guilty of a bias-motivated crime if he or she specifically targets a victim based on disability, gender or gender identity, national origin, ethnicity, race, religion, sexual orientation, age or status as a veteran, whether or not the perpetrator’s belief of the characteristic is true.  It passed the House on a nearly partisan vote of 66-43.

Autism Mandate- Mandates several treatments for the disorder, including speech therapy, physical therapy, applied behavioral analysis  HB 4183 and HB 4476.  Opponents argue that it would increase the health care costs for small businesses and individuals at a time when the state can least afford it.  HB 4183 passed the House (84-25) and HB 4476 passed the House (83-25).

Mental Health Parity- Under this legislative package  (HB 4597,  HB 4598, HB 4599 and HB 4600), insurers could not put more limitations on mental health and substance abuse treatment than they do for medical services.  This would apply to group and individual insurance contracts after January 2010, it does not require coverage for mental health or substance abuse treatment.

Failing Schools Legislation- HB 4787, HB 4788 and HB 4789 targets about 30-35 schools across the state that have received scores of 30 percent or less in proficiency for math and science, failing to make adequate yearly progress, for four consecutive years.  If the school were in the process of enacting its own reforms, the state superintendent would have to monitor the school’s progress.  If a school were not in the process of doing its own reforms, the superintendent would hire a reform officer who would then make recommendations on how to improve the school. The school would enter into a memorandum of understanding to enact changes, with input from the union and district, by January 31 of the school year. Staff would remain in the school under the memorandum, and base benefits and wages would stay the same.  The bills leave room for re-negotiation of work rules, building policies and progress benchmarks under the memorandum of understanding.  However, if a school didn’t make progress after that, the reform officer could authorize a turnaround school or the state could takeover the school. Both require a subsequent five year performance contract.  HB 4787 passed the House (70-38), HB 4788 passed the House (68-41) and HB 4789  passed the House (69-39).

Prisoner Deportation Bill Clears DOC Sub-Committee- A measure that would allow the Department of Corrections to release prisoners subject to deportation to the U.S. Immigration and Customs Enforcement Agency was reported by a House subcommittee on a party-line vote (HB 4130) .  State officials said there are currently 156 prisoners with deportation orders, the state might save as much as $9 million if the prisoners are removed from the state.

Prison Closures- Eliminates 6,400 prison beds, 1,000 staff positions and $120 million in spending for the 2009-10 fiscal year.  The eight facilities would be closed and any remaining inmates moved by October 1.
The plan calls for closing Hiawatha Correctional Facility in Kincheloe, Muskegon Correctional Facility and Standish Maximum Correctional Facility, Camp Cusino in Shingleton, Camp Kitwen in Painesdale, Camp Lehman in Grayling, Camp Ottawa in Iron River and Camp White Lake, a women’s facility, in White Lake. 

Contracting Out all of DOC Services-SB 476- This legislation that would require the Department of Corrections to bid out all goods and services drew questions and some challenges before a Senate Judiciary  but the committee  held off action.  Please take action at http://seiuaction.org/campaign/sb476threatenssafety

Early Out for Covered Employees- MCO and the Michigan State Council Launched a letter writing campaign on HB 5197 that introduced on June 30th by Representative Gary McDowell (D-107th District), which would allow for a 70pt. Early Out Retirement option for covered employees in the Defined Benefit plan.   This will ease the number of layoffs of state employees in the Department of Corrections.  http://seiuaction.org/campaign/supporthb5197earlyout
Probation Package- The chamber also signed off on a four-bill package that allows certain prisoners sentenced to life in prison for certain drug offenses to be eligible for parole. The bills target a select group of prisoners who were not encompassed during sentencing reforms from 2002.  HB 4918 passed the House (109-0), HB 4919  passed the House (107-2), HB 4920 passed the House (109-0) and HB 4921 passed the House (109-0).

Guv Granholm Invites Guv Schwarzenegger to Send their Prisoners Here- As a way to resolve that state’s budget issues, Guv. Granholm sent a letter to Guv. Schwarzenegger, offering to use some of Michigan’s Correctional facilities to House CA prisoners, stating, “It would allow California to address some of its immediate needs for additional prison beds and prisoner preparation for release and would permit some of Michigan’s very talented correctional and program staff to continue working as they face the likelihood of layoff.”  Ms. Granholm also touted the Michigan Prisoner Re-Entry Initiative as an option for preparing the California prisoners to return home.  Two facilities mentioned to hold these CA prisoners are the Standish and Muskegon facilities. Standish is set to close by the end of July and Muskegon by September.  California officials visited the state to tour these and other facilities. 

 DEQ Regulatory Package- Passes the Senate.
• SB 436- Applicants for permits through the Department of Environmental Quality could have a private engineer review the application before submitting it to the agency and have half the fee waived under legislation and the department would have to further speed its review of all permits- this would privatize a lot of out L. 517M members who issue different permits and would gut DEQ’s funding. 
• SB 435- All state departments would have to review all of their administrative rules every five years under this legislation. 
• SB 434 prohibits any state dept. from implementing rules or regs. stricter than the feds- this is not only an attack on DEQ, but also MIOSHA and their efforts to pass ergonomics regulations. 
• SB 438 and SB 439 both add additional reporting and oversight requirements to any state department that performs routine inspections under the Natural Resources and Environmental Protection Act, which essentially includes the DEQ and the Department of Natural Resources. The first bill requires departments to use a stratified random sampling process to select who does inspections and to submit an annual report to the Legislature of its numbers and methods used to comply and locations of the random inspections. - This bill package is intended to mire the DEQ in red tape with many duplicative processes.

No Reason Absenteeism Voting Passes the House- HB 4367 allows voters who want an absentee ballot could do so without giving an excuse under legislation that passed the House on a 79-30 vote.
   
Youth Early Registering- Youth between the ages of 16 and 17-and-a-half, who are U.S. citizens with a graduated driver’s license or state identification card could preregister to vote under two bills passed by the House,  HB 4261 passed the House  (92-18) and HB 4337 passed the House  (94-16).

Hire Michigan First Senate Passed Version Legislation- that would give a state preference in contracts to those companies that hire state residents or individuals wanting to move to Michigan passed the Senate with Democrats delighted that a top priority of theirs had passed and Republicans saying the package of bills helped show how the administration of Governor Jennifer Granholm had failed to meet its own goals. Democrats also complained the package did not go as far as the initial package passed by the House.  Efforts they made to amend the individual bills so they were closer to the House versions failed. Most of the bills passed unanimously.  Approved were SB 290, SB 293, SB 295, SB 539, HB 4083, HB 4089, HB 4092, HB 4093 and HB 4094.  The measures also outlaw a company getting state financial assistance, including tax breaks, unless it stipulates in writing it will not employ individuals unauthorized to work in the United States.  One provision Democrats argued against was that allowing individuals who intended to become state residents to be eligible under the preferences.  They also objected to allowances for individuals living in bordering states. They left out the prevailing wage language and protections.

Utility Shut-Off Package- has passed the House and is currently before the Senate Energy and Technology Committee:
HOUSE BILL 4384 (SCRIPPS) - Requires a regulated provider to comply with any rules adopted by the Public Service Commission (PSC) regarding shut-off protections for seniors and low-income customers. Passed 106-3.
HOUSE BILL 4385 (Moore) - Requires all utility providers to include the Department of Human Services or 2-1-1 phone number on shut-off notices. Passed 108-1
HOUSE BILL 4386 (JOHNSON) - This bill codifies into law, for municipally owned utilities, portions of the PSC rules for shut-off and restoration of service.  The bill details how to restore service as well as specific provisions for those with a medical emergency. Passed 103-6
HOUSE BILL 4387 (SCRIPPS) - Requires any shut-off fines for regulated utilities under these new laws to go to the Low Income & Energy Efficiency Fund (LIEEF). The purpose of LIEEF is to provide shut-off and other protections for low-income customers and to promote energy efficiency by all customer classes. Passed 106-4
HOUSE BILL 4388 (LeBlanc) - Requires a regulated provider to comply with any rules adopted by the PSC regarding shut-off protections for customers with medical conditions and customers with a billing dispute.  Passed 103-7
HOUSE BILL 4390: (MAYES) - Prevents the use of limiters for all utilities until the PSC sets up rules on how to use them.  Also bans limiters permanently for seniors and those with medical emergencies. Passed 103-7
HOUSE BILL 4391 (T. BROWN) - Waives all inappropriate fees that a utility may charge a customer if the utility service has been shut off improperly.   Passed 110-0
HOUSE BILL 4392 (ROBERTS) - Requires all utilities to contact a senior twice within 3 days of his/her service being shut-off, or once if done in person at the time of shut off, to let him/her know how to turn their power back on.  Passed 110-0
HOUSE BILL 4649: (Horn) - Requires DHS to share with all utilities information concerning applicants for and recipients of public assistance to link these clients with assistance programs.  Passed 110-0
HOUSE BILL 4650 (SPADE) - Requires (DHS) to operate an electronic payment process with utilities to provide for the payment of low income customer bills that are about to be shut-off.  Passed 110-0
HOUSE BILL 4655: (W. Schmidt) - Requires a municipally owned utility to report to the PSC when there is a serious injury or death related to a shut-off.  The PSC may investigate, and then forward on its investigative report to the Attorney General.  Passed 109-1
HOUSE BILL 4656 (H-2): (MAYES) - Allows the Attorney General, any customer of a utility, or the PSC in the case or serious injury or death to commence a civil action for relief if a municipally owned utility fails to meet the requirements of this act.  Any fines levied under this section would go into the Low Income & Energy Efficiency Fund (LIEEF). The purpose of LIEEF is to provide shut-off and other protection for low-income customers and to promote energy efficiency by all customer classes.  Passed 104-6
HOUSE BILL 4657 (H-1): (Stamas) - Requires the PSC to work with all providers and DHS to make recommendations to the legislature every two years on how to eliminate barriers to assisting seniors and those eligible for assistance, as well as changes in shut off procedures.  Passed 109-1
HOUSE BILL 4658 (H-2): (NEUMANN) - The bill requires that in the ordinary course of business, a municipally owned utility shall make an effort to identify senior citizen customers.  Passed 104-6
HOUSE BILL 4659 (SHELTROWN) - This bill would codify into law for municipally owned utilities, portions of the PSC rules for shut-off and restoration of service, as well as for energy assistance and shut-off protection programs that only apply to regulated utilities.  Passed 104-6
HOUSE BILL 4660: (Schuitmaker) - Allows a customer to designate a third party to receive shut-off notices from the provider on the customer's behalf.  Passed 108-2
HOUSE BILL 4661: (COULOURIS) - The bill requires that in the ordinary course of business a regulated provider shall make an ongoing effort to identify senior citizen customers.  Passed 109-1
HOUSE BILL 4662: (MELTON) - Requires all utilities to provide to all customers, twice a year, info on assistance and protection programs.  Passed 107-3
HOUSE BILL 4673: (MAYES) - This bill codifies into law for municipally utilities what is already current law for regulated utilities detailing when a utility can not shut off service.  (Prevents shut-offs for nonpayment during the heating season for senior citizens or for customers that pay the utility a monthly amount and can demonstrate that they have applied for heating assistance.)  Passed 104-6

Transportation Funding (TF2 Package)- A package of 13 bills were introduced that would implement the recommendations of the Transportation Funding Task Force, including taxes on the wholesale price of fuel, increases in registration fees and local revenue options.   The proposed gas tax would provide an initial slight cut in fuel taxes and would raise less than the task force had recommended, though it did not quantify how much less that would be.  But the diesel tax would be designed to provide parity with the gas tax rate. The new percentage tax would be effective in January 2010 and would provide the equivalent of a .5 cent per gallon tax cut. Annual increases in the tax, regardless of spikes in gasoline prices, would be capped at 5.5 cents per gallon in 2010 and 3 cents per gallon thereafter.  It would also be capped at the equivalent of 34 cents a gallon at the end of seven years. Aviation fuel would also change to a percentage tax, moving from 3 cents per gallon to 2.5 percent of the wholesale price. Vehicle registrations would nearly double over five years, increasing 10 percent in 2010 and 20 percent a year through 2014 under the proposal.  New cars would also have fewer different fees by expanding the price bands to $3,000 from the current $1,000.  Those renewing registrations would continue to see 10 percent cuts in their registration fee the first three years, offsetting those increases. The proposals would also require anyone purchasing a used vehicle to pay a prorated portion of the registration fee to cover the part of the year they will own it before the renewal is due. The Department of Transportation would be authorized to develop public/private partnerships for its projects and local agencies would be able to use tax increment financing to support projects under the package. The state-level partnerships could encompass tolls, operating or maintaining a transportation facility, and researching, planning, studying, designing, developing, financing, acquiring and constructing a facility.  The Transportation Fund would be amended to accept tolls as well as motor fuel taxes and registration fees. Counties would be able to enhance their funding with a $25 fee on driver’s licenses ($35 on chauffeur’s licenses). But the bills would also provide incentives for counties to collaborate on highway planning and transit programs by providing planning grants and additional funding. Transit funding will also shift to concentrate on rapid and rail transit from the current emphasis on local bus service. Sources indicated the legislation would be introduced yet this week.  SEIU, AFSCME and UAW have expressed grave concerns over this package because the public-private partnership bills allow the state to contract out all of our DOT members’ jobs and UAW has expressed concerns that this shifts the entire cost of our roads unfairly to consumers.  We are involved in a work-group on this bill package.

Committee on Govt. Efficiency- Preliminary recommendations - The commission essentially concluded state government has no choice but to make major structural changes since even an economic recovery would not cure the overriding structural issues the state confronts.  Some of the major recommendations are
to eliminate the Michigan Promise Grant, and cut back on spending on the Healthy Michigan Fund and on non-Medicaid community health programs. Other preliminary proposals:
• Reallocating $300 million in School Aid Fund spending to community colleges to save general fund money.
• Seeking incentives to encourage as many as 10,000 school employees to retire.
• Giving the state superintendent of public instruction the ability to order consolidation of school districts.
• Increasing Medicaid co-pays and making greater use of health savings accounts.
• Enrolling MiChild beneficiaries in managed care.
• Requiring Medicaid recipients who smoke to either quit or contribute to their care.
• Making a greater investment in prisoner re-entry programs to reduce recidivism.
• Establishing a new sentencing guidelines commission to look at changes in the system.
• Re-establishing prisoner phone charges.
• Increasing local government taxing authority to make up for losses in revenue sharing.
• Encouraging governments to share services.
• Requiring five-year workforce supply and demand forecasting.
• Looking at a mutual gains approach to collective bargaining.
• Negotiating contracts with preferred vendors.
• Conducting a major review of the state’s health care insurance system and consider requiring teachers and other public school employees to be part of the system.

Cherry Restructuring Efforts Hit the Road- Governor Jennifer Granholm issued a directive that the state operate with no more than eight departments, down from the current 18.  The  core functions identified by a workgroup led by Mr. Cherry include:
• Public safety
• Education (from early childhood through adult);
• Public systems (transportation, recreation, water/waste, utilities and information technology);
• Well-being (people should be free from hunger and have access to medical care and safe shelter);
• Sustainability (protect land, air, ecosystems and water);
• Economic opportunity and prosperity (stimulate entrepreneurship and promote the state’s existing and emerging industries);
• Efficiency and effectiveness.

There are looking to hold half  a dozen hearings on these issues through the months of June, July and August. Including one on June 16 (Flint), another one on (Grand Rapids).  Please check out the Lieutenant Governor's web page for additional locations.

Civil Rights Closing Offices and Laying off- The Department of Civil Rights is laying off as many as 23 employees to meet its required cuts under a recent executive order and is closing four of its nine regional offices as part of its longer-term budget cutting efforts.  The regional offices in Benton Harbor, Kalamazoo, Saginaw and Traverse City will close effective June 5, with the staff from those offices transferred among the remaining offices where possible.  Offices remain open in Detroit, Flint, Grand Rapids, Lansing and Marquette.

Dueling Healthcare Plans (or BCBS+)- In mid May, both the state House and the state Senate introduced health care reform legislation. The House bills (HB 4934–4943) were introduced by Representative Marc R. Corriveau on May 11and the Senate bills (SB 579–582) were introduced  by Senator Tom George, R–Kalamazoo on May 14. The intent of both sets of bills is to make affordable coverage available to residents who are uninsured, relieve the health care industry of the increasing burden of uncompensated care, and dramatically increase the number of people who have access to affordable coverage, and therefore, health care services. When the Legislature was unable to arrive at a compromise
in the last legislative session on changes related to individual insurance market reform, a task force was established to review and consider ways to provide a more comprehensive solution including making insurance more affordable and accessible for individuals, small businesses, and others struggling with the high and rising cost of health care coverage.  Highlights of the House and Senate packages of bills follow.  The Senate Fiscal Agency analysis of the individual Senate bills can be found at http://www.legislature.mi.gov/documents/ 2009-010/bill analysis/Senate/pdf/2009-SFA-0579-S.pdf.
House Fiscal Agency analysis of the House bills has not yet been posted.
Public and Private Solutions — Both plans propose a combination of public and private solutions. The House plan  calls for an expansion of MIChild, the state’s children’s health coverage program for those who are low income and not eligible  for Medicaid, from its current eligibility level of 200 percent  of the federal poverty level to 300 percent of the federal poverty level ($66,200 for a family of four). The House plan calls for the development of ‘‘basic and basic enhanced’’ plans by
insurance carriers, with subsidies being provided for the basic plan to those with incomes up to 300 percent of the federal poverty level. The services included in each type of plan would be determined by the newly-created administrative board. The House proposal also includes subsidies for senior citizens with incomes up to 300 percent of the federal poverty level to assist with their costs for Medigap policies. The Senate plan calls for a Medicaid waiver to expand coverage for adults with incomes up to 200 percent of the federal poverty level (children would already be eligible under Medicaid or MIChild at this income level). For those with incomes between 200 and 300 percent of the federal poverty level, individuals would be eligible for a sliding scale subsidy to allow them to purchase an insurance product in the private market through the newly created entity called MI-Health. The benefit would be limited and could include cost sharing (deductibles and/or copays), with specific services determined by an administrative board.
Benefits Package — Neither package of bills specifies the exact benefits that would be included in the new products to be offered, deferring instead to the newly created governance/administrative boards.
Catastrophic Fund — Both proposals include the creation of a catastrophic fund from which insurance companies would be reimbursed for an individual’s claims that exceed $25,000 in a year.
Governance Structures — The House proposal creates a new board to administer the catastrophic fund. The Senate proposal includes the creation of two new boards—the ‘‘Cover Michigan Board’’ which would determine the benefits to be included in the insurance products and the ‘‘Michigan Claims Board’’ which would determine the amount of assessments the private health insurers would be required to pay.
Financing — Both proposals rely on financing that does not come from the state’s general fund. Funding for the House proposal to cover expanded populations would come from: Blue Cross Blue Shield in an amount equal to the value of their tax exempt status (House estimate—about $100 million), the tax-exempt value from other nonprofits (about $60 million), while funding for the catastrophic fund would come from assessments based on the market share of insurance companies.
The House proposal assumes that the $160 million would be used to match federal Medicaid funds, increasing the available health care dollars to $450 million. The Senate proposal also assumes an assessment on Blue Cross Blue Shield up to the value of their tax exempt status (Senate estimate—about $120 million), as well as an increase in the Medicaid hospital provider tax (about $180 million), and up to a 1.8 percent assessment on all private paid claims, providing an estimated $329 million per year. The combination of these funds, just over $600 million, would be used to the degree possible to match federal Medicaid funds to provide the expanded coverage and subsidies included in the Senate proposal. The catastrophic fund would be financed from surcharges on the plans offered through MI-Health.
Insurance reforms — Numerous reforms are proposed in the two packages of bills which are intended to provide consumer access and protections in the individual and small insurance markets. Both packages of bills limit pre-existing condition exclusions to six months, as well as limiting policy cancelations for technical reasons. In addition, the catastrophic fund is intended to level the playing field among Blue Cross and other carriers, as other carriers will no longer be allowed to insure only ‘‘healthy’’ applicants.  Among other reforms in the House proposal are: a guaranteed access to coverage  requirement that insurance companies must cover people with pre-existing conditions (insurance companies can no longer select only healthy people to cover), a requirement that insurance companies cannot raise rates on people who become ill, an end to gender discrimination against women, a reduction in dramatic renewal increases for small businesses by ending experience rating, and a requirement that discounts for good health and adherence to healthy lifestyles be offered.
The Senate bills, while not guaranteeing issuance, do guarantee renewal, and insurers are prohibited from raising rates at renewal for those who become ill. In addition, Blue Cross Blue Shield is allowed to charge rate differentials based on body mass index (BMI), tobacco use and adherence to health screenings and participation in covered wellness programs.
Initiatives — The House bills include a number of initiatives, among them: a mandate that prescriptions be electronically transmitted, the creation of a bulk prescription drug purchasing cooperative and drug program for the uninsured and underinsured, the mandated creation of a health assessment Website to promote healthy behaviors, and the requirement that a statewide  advance health care directive registry be  developed by the Secretary of State.

Executive Order 2009-22 Cutting State Budgets- The two legislative Appropriations Committees approved an executive order that will cut the 2008-09 budgets by $350 million.  The Senate Appropriations Committee approved EO 2009-22 on a 15-2 vote.  The House Appropriations Committee voted 27-4 to approve it.   The House Fiscal Agency noted the net general fund savings total $294.5 million. The Senate Fiscal Agency noted the general fund savings, after a negative supplemental is taken out, would total just over $200 million.  The remaining $127.4 million will come in cuts from federal and restricted funds.  Exempted from the cuts are higher education and community colleges, because these cuts would threaten the availability of federal stimulus funds.  The state will have to shut down most of its functions for a period of six days during the remainder of the fiscal year.  That shutdown will be required because virtually all workers will take six days of furloughs and the state wants to maximize the savings by closing down state offices.  It also includes the layoff of some 300 state workers, including 100 State Police troopers.  Most those troopers being laid off will be those who recently completed trooper training.  The order also calls for savings of $3.8 million in laboratory operations though that cut should be supplemented with a transfer from the State Services Fee Fund.  Another $2.2 million will come in fleet leasing.  While most of that will accrue from savings in fuel costs, Mr. Munoz said the state will institute mileage restrictions on vehicles that could affect some patrol activities.  The state is cutting $41.5 million in revenue sharing.  Under the cut, each locality will receive essentially the same revenue sharing payments they received in the 2007-08 fiscal year. 

DCH will see the largest overall cut at $57.7 million, $53.1 million in general funds.  The department will see 55 specific cuts- $10 million to community mental health non-Medicaid services.  4 percent reductions in payments to Medicaid health care provides, which will total more than $5 million, as well as a $7.6 million in an adjustment to the Medicaid Health Plan Services.  Cuts to the optional services will total $3.3 million and include cuts the chiropractic services, podiatric services, non-emergency services, optometric services, hearing aids and dental services.  Cuts $3.8 million from the state’s Healthy Michigan Fund, as well as cutting $2.1 million in the state’s four single point of entry programs.  Also cut is $1.1 million in health information technology initiatives funding, $1.5 million in local public health operations and $1.5 million in community substance abuse prevention programs.

Under DHS the largest total cut is $23.4 million to reflect the general fund reductions as part of overall federal program reductions. Also cut is $16.7 million to reflect savings from the stimulus child support payments.  Another $14 million is cut from the jobs, education and training plus program, $10.4 million in employment and training programs, $9.9 million in Supplemental Security Income payments, $5.7 million in child day care quality assurance savings, $4 million in the community protection and permanency program, almost $4 million in the subsidized guardianship program,. $3 million in the Bureau of Child and Adult Licensing, $2.3 million in reduced local office allocations, $2.2 million in before and after school grants, $2 million in the strong families/safe children, $1.8 million in family independence program incentives, $1.7 million in food stamp reinvestments, $1.65 million in a 1.25 percent child day care rates, $1.3 million in teenage parent counseling, $1.1 million in family preservation administration, slightly more than $1 million in indigent burials and cuts of $1 million in adoption support services.

Other cuts include:

• Energy, Labor and Economic Growth will be cut $27.1 million, $13.1 million in general funds, with a $7.8 million cuts to No Worker Left Behind.
• Agriculture will be cut $11.1 million, $3.4 million in general funds, with $3.8 million cut from the Office of Racing Commissioner and $2.4 million cut to the Agriculture Equine Industry Development Fund.  Also cut will be $1.5 million from the bovine TB program.
• Corrections will be cut $10.5 million, all but $1 million of the cut will come from employee furloughs.
• K-12 school aid will be cut $7 million in general funds in the 21st Century Schools Program that Ms. Granholm had wanted to begin the process of creating newer, smaller high schools.
• In Transportation, $12 million in restricted funds will be cut in the Transportation Economic Development Funding.
• Besides revenue sharing, which is paid through Treasury, the department will see $22 million in transfers from the 21st Century Jobs Trust Fund to the general fund.
• While college operational funding is not cut, $5 million in Michigan Promise Grant funding will be transferred to DCH.
• Ms. Granholm’s executive office will have to lay off as many as five workers as that office will cut spending by $279,200.
• The Legislature will make reductions totaling $3.5 million, which will likely include some layoffs.
• The judiciary will make total cuts amounting $2.8 million.

Furlough Days-State employees The days – Friday, June 19; Monday, July 6; Friday, July 24; Friday, August 7; Friday, August 21; and Friday, September 4 – are part of cuts under the executive order above.

19th Senate Seat-  On the Republican side, former Rep. Mike Nofs (R-Battle Creek) will face off against Sandstone Township Trustee C. James Wellman.  And on the Democratic side, Rep. Martin Griffin (D-Jackson) will face organic farmer Sharon Renier of Munith.

Census Committee, EO 2009-34- Governor Granholm has created a committee to help promote participation in Michigan’s 2010 census, and put Lt. Governor John Cherry in charge of its operations. The Complete Count Committee also includes the directors of all state departments  The directive to the committee is to:
• Develop, recommend and assist in operating an outreach action plan to identify areas or groups that are isolated by geography, race, language or other factors and difficult to count;
• Develop and be involved in distribution by state and local agencies and other groups of promotional material regarding the census and the importance of participation; and
• Identify barriers that interfere with full participation in the census and develop strategies to overcome the barriers.

Stimulus fund Board, EO 2009-35- The governor also formally created the Economic Recovery Office as well as an advisory board to oversee the use of several billion dollars in federal stimulus funds that Michigan will receive over the next two years. Earlier this year, Ms. Granholm had appointed Leslee Fritz as director of the office, this office is broadly charged with coordinating reports on how the money is used, ensuring the state uses the money in accordance with federal guidelines, reviewing criteria for grants and developing procedures for oversight and for collection of reports. The office has already created a website to allow the public to track the use of the funds. The new six-member oversight board is to monitor the allocation of the stimulus funds, review procedures to comply with federal requirements, review reports and solicit testimony on how the state complied with the federal law.

Revenue Estimating Conference- Chrysler and GM and the impact of a good or bad bankruptcy.
While there are hints a national recession may be drawing to a close, uncertainty surrounding what the recovery will be like and whether the domestic auto industry will rebound cast a gloomy picture for state revenues as members of the Revenue Estimating Conference downgraded the budget outlook by $1.7 billion for the fiscal year beginning October 1.

Monica Conyers Resigns from Detroit City Council- Detroit City Council member Monica Conyers officially resigned Monday, though the resignation takes effect July 6, after pleading guilty Friday of accepting bribes related to a city contract.

The School Lunch Reauthorization-  This will allow Michigan to get additional funding from the feds. (a total of 1-billion between 7 states) for our school lunch program by implementing specific standards to the contracted out school lunch workers, in particular, our state pay them the Service Contract Act rate (MI-$11.45), paid sick leave, worker protection and increased training programs.

Public School Contractor Accountability- This mirror the public service accountability act, except it includes school contractor requirements.  Please let me know if you want a copy of this draft legislative idea.

 

Budgets-

General Summary-House has set targets to cut $525 million out of the budgets for next year the Senate does not agree and wants to cut $1.3-billion out of the budgets and have cut every budget by 15%. Changing every line item, making everything an issue in conference committees.  All of the 2009-210 budget bills, except for the Department of Corrections Budget (HB 4437) and the Department of State Police (SB 253), have been sent to conference committee with nearly everything at issue.

Senate Action on Bills-

The Department of Corrections (HB 4437) - The Senate version totals $1.938 billion. It includes a grant of $12.5 million to the Michigan State Police (with no specific intent tied to the grant, though it could be used to keep on staff 100 troopers now scheduled for layoffs).  The budget includes full funding for the state’s prisoner re-entry program, along with funding for a high-risk probationary project and full funding for the state’s community corrections program. The budget includes $18.78 billion in general funds, and compared to other budgets, which have included major and much larger cuts, is just $20 million less than Governor Jennifer Granholm’s proposal.  The budget already includes anticipated savings from closing a total of 11 prisons this year and the reduction of more than 4,000 prisoners.  The budget will require the department to find savings of 3 percent in the cost of housing and caring for prisoners.  A savings of just $801 a year  per prisoner would amount to $38 million a year in savings.   The budget cut 10 percent from the central staff’s budget.  The House concurred with the Senate recommendations 109/0 and this has been the only budget not sent to conference committee.

The Department of State Police (SB 253)- Passed the Senate 29/9. The Senate version totals $540,461,200 and is $1,933,200 Gross over and $11,215,300 GF/GP under the Governor's recommendation. It includes a Uniform Services Savings, Governor and Senate recommended $3.4 GF/GP attrition savings from 66.0 FTEs (troopers) expected to retire in FY10, a reduction in trooper and specialty teams overtime ($2,327,400 GF/GP), MSP Post lease reductions ($600,000 GF/GP), a reduction in CSS&M ($600,000 GF/GP) and a savings in Fleet Leasing of ($1.0 million GF/GP).  Federal Stimulus Funds for Troopers, The Senate reduced At-Post Troopers by an additional $8,425,000 GF/GP, but added $8.0 million in Federal COPS funds from the American Recovery and Reinvestment Act of 2008 to avoid Trooper layoffs. Forensic Sciences-Detroit Caseloads, the Governor and Senate included additional GF/GP ($4,232,600) and restricted revenue ($789,000) for costs associated with taking over forensic casework form the closure of the City of Detroit Crime Lab. Senate added a $100 place holder for municipal reimbursement. IDG Increases from Corrections, the Senate added IDG funds in support of Forensic Sciences ($3.0 million), secondary road patrol grants ($1.0 million), and for county prosecutors ($500,000).  New Headquarters Rent, the Senate reduced the Governor's recommendation for rental costs for the new State Police Headquarters down to only one month of rent ($408,300).  Marquette Forensic Lab Closure was included, the Senate included a placeholder of $100.  Eliminate Capitol Security Guards, the Governor recommended ending the program., but the Senate retained it.  The House has not acted on the State Police budget, nor has the funding to retain the 100 troopers (cut in the E.O.) been restored.

The Military Affairs budget (SB 250)- passed 20-15, there was an effort to restore the funding levels to veteran service organizations.  The budget totals $148.8 million, nearly $50.2 million less than the current year.  Much of that difference though is through a $38.4 million cut in capital outlay projects that have been completed.  The general fund portion is $39 million, a $400,000 cut under Ms. Granholm’s proposal.

The Department of Judiciary budget (SB 249)- passed 25-10, was first moved back to general orders where an amendment was adopted  to allow local governments to hold open some judicial vacancies for two years was removed.  The budget totals $258.5 million, about $500,000 less than the current year.  Of that $154 million is in general funds, about $4.5 million less than Ms. Granholm’s recommendation.

Department of Human Services (SB 248)- The Senate version cuts welfare grants and day care rates and slashes more than $200 million out of general fund allocation spent on the department this fiscal year. The budget in terms of overall spending is nearly $1 billion more than the current year’s budget, from $4.95 billion in the current year to $5.83 billion in 2009-10.  Virtually all that increase comes through additional federal money for food assistance in the state, $1.5 billion.  But that increase is offset by a series of major cuts, totaling better than $600 million in both general fund and total spending. The general fund portion of the budget would total $793 million, down from the more than $1 billion allocated this fiscal year. Among the cuts is a $10 a month cut in Family Independence Program grants  (which now average $490 a month per family), which would save an estimated $24 million.  Also cut would be the $75 clothing allowance that recipients can use to get school clothing for their children, which should save $5.6 million.  Child day care rates would be cut, saving $38.4 million, and the hours the state would pay for day care would also be cut by $15.5 million.  Also cut, saving $29.8 million, would be supplementation payments under supplemental security income.  The budget would also cut nearly 150 staff in the department.

The Transportation Budget (SB 254)- passed 24-12, totals $3.24 billion.  None of that money is in general funds, and the budget overall is $23.5 million below Ms. Granholm’s proposal.  The budget drew controversy because it transferred $23.5 million to the general fund.  Of that $11.5 million would come from the comprehensive transportation fund that would include cuts of $4.3 million in bus operating funds, $2 million in the Amtrak subsidy and $3 million in the bus capital fund.  Democrats argued those cuts would hurt individuals who rely on the buses to get to work or older people who rely on the buses simply to get around town.  The budget also requires the state to complete a study on the proposed Detroit River International Crossing by next March

The Department of Agriculture Budget (SB 237)- Passed on a 28-5 vote,  totals $86.4 million, down more than $18.4 million from the current year’s appropriation.  The general fund total of $30.6 million is nearly 10 percent less than the governor’s proposal.  The budget focused on food safety, animal health and core programs.  One big change in the budget is a cut of $800,000 to the Office of Racing Commissioner.  Democrats criticized cuts in the budget to the state’s surplus food program, which distributes extra produce to needy families, at a time when the state’s economy is reeling, and to funds used to inspect migrant worker housing.

Department of Environmental Quality (SB 244)-The Senate Appropriations Environmental Quality Subcommittee approved its version of the department’s budget that includes a $6 million across-the-board general fund cut, representing 18 percent of that funding source for the department. The contents of the Senate bill will be substituted into HB 4439 when that budget comes over from the House and then be sent to conference committee, he said.
He said fee changes, and other changes to the budget, could also come from discussions going on between the department and the business community.  There is a one hundred dollar placeholder for the wetlands program to keep the dollar amount for this program an item of difference between the two versions of this budget.

Senate Combined DEQ and DNR Budgets (SB 251)- Appropriates spending for the new Department of Conservation, which theoretically includes everything under the former DEQ and DNR budgets and  pulls out History, Arts and Library programs at a savings to the budget of $10 million.  Governor Jennifer Granholm putting Mackinac Island back under the DNR’s control in her budget.  Overall the subcommittee recommendation is $623.9 million; of that $36.5 million is general fund and $184.3 million is federal, with no stimulus.  That’s compared to the executive budget for the DNR of $299 million and for DEQ at $341.6 million.  While the budget is about $13.9 million less than the governor’s recommendation for general fund, she included Mackinac Island State Park Commission, so once that is budgeted for at $6 million, the actual net difference is about $7.2 million, said Senate Fiscal Agency analysts.  The Senate saw savings by implementing an across the board cut to DEQ programs of $6 million and saved $800,000 on the consolidation with rent and through other means.  The bill also increases air emission fee revenue by $938,300 and realizes other reductions for total Senate adjustments of more than $16.6 million. The only staffing changes acknowledged in the bill come from the 94 full-time equivalent employees from transferring HAL programs out of the departments.  The measure also includes Ms. Granholm’s budget recommendation, to end the state’s oversight of wetlands and turn that over to the U.S. Army Corps of Engineers, but includes a $100 placeholder for the program.

The Department of Community Health (HB 4436)- The Senate version totals $12.859 billion in gross appropriations that is actually an increase of $364.6 million over the current year’s appropriation.  But the general fund portion of the budget would be $2.267 billion, down a total of $736.6 million from the current year and $533 million from Governor Jennifer Granholm’s proposed total.  The Senate's version includes $5 million for healthy Michigan programming.  All other programs – smoking cessation, diabetes education, immunization agreements and management, Alzheimer’s outreach, infant mortality programs and the like – were wiped out.  The cuts total $18 million. The largest individual overall general fund cut is $484.7 million and is actually part of a consensus adjustment to reflect expected federal increased Medicaid spending as part of the stimulus package.  Outside of that the largest individual program cut is $94.9 million with an 8 percent cut to Medicaid providers.  Also cut is $54.3 million in community mental health non-Medicaid funding.  On the Senate floor a series of amendments were adopted to hold open the chance that some programs could continue if funding for the measures could be found. And the chamber did adopt some amendments to use the $5 million remaining for the Healthy Michigan Fund, down some $23 million from its current allocation, to continue a poison control center as well as an immunization records center. But that did not restore funding for Medicaid providers, community mental health, school health programs and other issues.  The budget also includes an 8 percent cut in Medicaid reimbursements to health care providers.  That represents an additional 4 percent cut on top of the 4 percent cut the state adopted last month with executive order cuts.  Those cuts will save $94.9 million.

Community Colleges (HB 4435)- The Senate version is nearly $100 million smaller than the House recommendation, while still maintaining the current level of funding for schools.  Most of the difference between the House and  Senate version lies in a $97 million federal stimulus grant for worker training programs, which the House included and the Senate committee did not.  One way the budget reflects that is by concurring with the House in restoring language that the Legislature intends to have any state increases to four-year public universities accompanied by similar increases to community colleges, language the governor struck.  Also in opposition to the executive budget, the committee removed funding for renaissance zone reimbursements, making the Senate recommendation $3.48 million below the governor’s recommendation, which was $299.4 million.  The reimbursements, which both the executive and House called for, would have benefited 23 colleges, with amounts ranging from a high of $727,000, at Wayne County Community College to a low of nearly $5,000 to go to Alpena College, according to the Senate Fiscal Agency.  The House redistributed $936,500 to colleges based on three-year averages for Indian Tuition Waivers, resulting in decreased reimbursements for 16 schools and increases for 12 others, the Senate did not agree with changing the program and instead left the reimbursement program as is.  The Senate also differed from both other budget proposals by not including any language that directs community colleges to restrain tuition costs.

Higher Education (HB 4441) -The Senate version totals $1.61 billion and just over $1.5 billion in general funds, making it about 8.5 percent less than the current year appropriation. The committee’s budget was $109.7 million lower than the executive recommendation and $216.3 million lower than the House version.  The executive and the House added $59.5 million to next year’s Michigan Promise Grant to reflect anticipated costs of $140 million to the program, the Senate version, eliminated the merit based program altogether, saving $80.5 million.  Besides the Promise Grants, the subcommittee also axed three needs-based financial aid programs: work-study, part-time independent grants and the Michigan Educational Opportunity Grant, programs that in 2008, when combined, helped more than 15,500 college students pay for school.  The committee kept funding for three other programs aimed at low-income students but with cuts as high as 95 percent.  Competitive scholarships, which nearly 28,000 students used last year, would see $16.3 million, a 54 percent reduction from the current year, while tuition grants, which had more than 35,500 participants in 2008, would be funded at $31.7 million, about a 40 percent cut. Nursing grants, which were funded at $4.5 million and saw 1,595 participants in 2008, would be funded at $200,000 in 2009-10.  Merit Awards, which were being phased out in favor of the Promise Award, according were given a $100 placeholder.   Universities also saw a direct hit as a result of less stimulus money going to higher education than originally anticipated, with .4 percent reduction across the board for operations.

School Aid Budget  (HB 4447)- The Senate version of the K-12, School Aid budget reduced the foundation allowance by $110 per pupil with the chair adding that it is his intention to use federal stimulus money to help schools offset foundation cuts, at least until that money runs out in 2010.  The subcommittee’s version also eliminated several programs and reduced funding for others in order to find gross savings of $410.4. Among the eliminated programs are early childhood, school readiness, declining enrollment, Michigan Virtual University and small high school grants. Vocational education and adult education would see 10 percent cuts. Compared to the current year-to-date appropriation of $13.38 billion, the $12.75 billion budget, $31.8 million of which is general fund, appropriates $625.3 million less.  At risk programs took a small hit, getting a total appropriation under the Senate recommendation of $304.9 million, compared to the current year level of $320.3 but faired well relative to other programs.  Democrats took issue with a $2.125 million elimination of the zero-to-three program (labeled “interagency early childhood” on the list of stricken programs) and the elimination of funding for ISD zero-to-five early childhood programs at $5 million. Other points of interest in the bill:

• On the issue of required hours/versus days of schooling, the Senate bill requires students to attend at least 165 days of school beginning with 2010-11 and 170 days of school in 2012-13 but not fewer days than attended in 2008-09. However, the Senate didn’t define a school day.
• The Senate returned to the 2008-09 language that kindergartens can operate half days to get a full foundation allowance
• The Senate didn’t use a bidding system for adult education, as the executive budget had recommended, but did reduce funding by 10 percent to $21.6 million and per student allocations to $2,550. It also eliminated earmarks for prisons and eligible community colleges and called for a study on whether a House recommended assessment would be prudent.

The Department of Education Budget (HB 4438)- The Senate version of  this budget had about the same level of funding as the current year. The biggest difference in dollars, though it does not affect programs, was removing Department of History, Arts and Libraries and library grant funds to reflect the Senate’s decision to buck the administration and House move to eliminate HAL.   The gross appropriation totaled $95.1 million, compared to $95 million last year, a $72,300 reduction, with $6.8 million in general fund.  Compared to the executive recommendation, the Senate’s bill was $24.8 million lower and $19.6 million lower in general fund.  For a total savings of $435,800, the Senate reduced special education operations by $115,000; school improvement operations by $313,800 and school finance/school law operations by $7,000. The Senate also concurred with House and executive changes to make some administrative efficiencies, which amounted to $247,400 in savings, as well as $113,300 in other adjustments.  On the cost side, internal fund shifts to replace federal money used up $47,700 in general funds and standard economic adjustments took another $821,100 slice out of the budget, of which, $57,100 was from the general fund.

House Action on Budgets-

House Combined DEQ/DNR (HB 4446)- The 2009-10 budget would create the Department of Natural Resources and Environmental Protection (a Senate panel has created the Department of Conservation).  The budget totals $626.6 million, of which $38.3 million is paid for with general funds. That represents a 10.2 million or 21 percent cut in general fund support for the departments.  The appropriation also reflects the loss of $248 million in one-time federal stimulus money for water and sewer projects.  So the gross appropriation is 30.7 percent lower than the current fiscal year, or $277.6 million.  Both the House and Senate versions of the budget are less than the governor’s proposed $640.6 million appropriation. The Senate version spends $623.9 million. While the departments would be combined, the budget only includes a savings of $288,400 in administrative functions. Both legislative budgets would remove the state’s wetlands program and transfer authority to the federal government.  Closing it saves $4 million ($2.1 million general fund).  The House subcommittees’ budget includes general fund shifts to various restricted funding sources totaling $5.4 million. But it also cuts $2 million in the drinking water revolving fund match, $897,000 for pollution prevention workshops and eliminates the $600,000 on-site wastewater program and the $400,0000 aquifer protection program.  The DNR portion of the budget removed any transfer of services from the Department of History, Arts and Libraries, which is still a political football between lawmakers and the administration. The governor has proposed eliminating the department.  The Game and Fish Protection Fund is expected to lose revenue, so the programs funded by it were reduced in the budget.  The appropriation did see an increase of funding, although federal, with $1.8 million in national recreational trails grants.   Boilerplate in the DNR portion of the budget also directs the administration to resolve issues regarding the timber sale bidding process by March 2010. The House version also sets the threshold for timber harvest at 58,000 acres.  The Senate and governor had deleted the threshold for harvest from the budget.   The Senate supplemented its recommendations in (SB 251) including a $200 placeholder for the wetlands program and sent it back to the House, which was not concurred in and has been sent to conference committee for the DNR and DEQ budgets.

Department of Transportation Budget (SB 254)- House version of the Transportation budget assumes increase in money through adoption of the TF2 package and without those changes the Transportation FY 2009-10 budget adopted by the panel will mean ongoing cuts to local governments that are struggling as it is to maintain their roads and other infrastructure, said a House fiscal analyst. The House version is $3.26 billion gross, $1.23 billion of that in federal money and nothing in general funds. That would be a 9.5 percent cut than the current year to date appropriation of $3.61 billion. The Senate recommended a budget of $3.24 billion and the executive budget recommendation was $3.27 billion.  Bill Hamilton, analyst with the House Fiscal Agency, said because of continuing revenue declines, counties and municipalities will see fewer dollars in the current year and in 2009-10 then are appropriated to them.  The House version concurs with the Senate and executive version in several areas including funding for the State Trunkline, for which it appropriated $203.13 million, a $63.88 million increase over the current year; funding for county road commissions, which were appropriated $568.9 million, a $29.2 million reduction over the year and funding for cities and villages, which got $317.2 million, a $16.3 million reduction over the current year.  The House version also agreed with the executive budget in appropriating a $454,900 increase to business support services, but disagreed with the Senate, which appropriated an increase of $429,500 to the current amount of $17.17 million.  There were also several areas where the governor or the Senate had rolled up or unrolled budget areas and the House reversed that move.

Department of History Arts and Libraries (SB 247)- The House version agrees with all of the executive recommendations, except the transfer of programs to other departments, and applies a 10 percent general fund across the board. The budget totals $47.9 million; of that $35 million is general fund, which is an 11 percent reduction from the current year. That's compared to the Senate version, which is $40.9 million and $28.1 general fund with no funding for administration or operation of the department. The House version includes about $500,000 gross and $400,000 general fund for salary and other costs; eliminates $1.3 million gross and $379 million general fund one-time appropriations from the current year budget and reduces several other funds from the current year budget to find savings. Rep. Bob Genetski (R-Saugatuck) said with firefighters in his district having to take a pay cut, he doesn’t see why the state should fund things people may “want but not need.” To that point, he introduced two amendments: one that would have eliminated the state archeology office and five positions at a savings of $457,000 and another that would have eliminated the state preservation office at a savings of $500,000.  He said he sees the value in science and has even taught it himself but thinks the services could be done at a university or somewhere private at a time when the state can’t afford it.  While the 10 percent cut keeps the department alive, layoffs may still follow as officials decide if layoffs are one way to achieve savings from the cut.

The General Government Budget (SB 245)- The House version of this budget is $2.99 billion, of which $647.6 million in general funds.  While the budget is 5.2 percent less than the current year, it is still slightly higher than the Senate’s recommendation of $2.98 billion, ($687 million in general funds) which included a 10 percent cut to many departments.  The executive recommendation was $3.19 billion, including $665 in general funds. Major highlights of the budget include that it would fund the State Fair in Detroit, despite the Senate and executive budgets eliminating $6.6 million and 10 FTE’s for the program, which has been in operation since the turn of the 19th Century. 

• The Treasury Budget, The department’s total budget, including revenue sharing, is $1.576 billion, $152.2 million less than the current year.  But $1.3 billion of that is in revenue sharing. The budget totals $153.7 billion in general funds, $18.5 million less than the current year. While revenue sharing numbers remained somewhat comparable to other recommendations, counties came out better in the House version. The House recommended a cut to constitutional revenue sharing to cities, villages and townships of $53.9 million, nearly the same as Senate. The cut would come off the year-to-date appropriation of $675.9, which is somewhat misleading because it is based on revenue estimates that continue to slide but it is the number that the lawmakers used to draft the bill. As for statutory revenue sharing, which only about 240 of the 1200 or so townships still receive,  the House reduced revenue by $108.9 million compared to the Senate recommendation to cut revenues by $97.3 million. That would reduce the current YTD gross appropriation of $406.9 million.  Because of all of the revenue decreases, it’s likely local governments will end up receiving about $298 million under statutory revenue sharing. After several years with no revenue sharing and this year’s $2.3 million, counties were funded at approximately $63 million by the committee.  The Senate recommended $54 million and the governor recommended $46.8 million.

• The Attorney General Budget- Overall the $73.7 million House committee budget is about $200,00 less than the Senate version, which is $73.9 million and $28.8 general funds. The budget, $28.8 million of which is general fund, is 3 percent less than the current year.  It’s also less than the executive, which is $75.9 million, $31.6 million in general funds. It concurs with both other budgets in reducing operations for the department by $160,000 and in increasing funding by $80,000 for software implementation. The House doesn’t concur with the Senate in increasing federal authorization for the PACC in anticipation of additional revenue, which takes $100,000 out of the budget.  The House also reduces funding in operations by $3,165,900, child support enforcement by $67,500 and IT by $85,800 totaling $3.32 million in savings, compared to the Senate, which found barely $3.2 million in savings with lesser reductions in the same programs.

• The Civil Rights Budget- The House budget of $13.16 million, $11.1 million in general funds, is about 8 percent lower than the current year appropriation and about few thousand higher than the Senate’s version at $13.15 million and 11.1 in general funds.  The executive budget recommendation is $14.4 million and $12.3 million in general funds. The House concurred with most of the changes made by the Senate, except the general fund support for operations. The Senate suggested reductions of 10.4 percent and the House recommended 10.3 percent, changing the cut from $1.232 million on the Senate side to $1.223 million on the House side.

• The Executive Office-The House budget of $4.82 million is all general fund and 9.3 percent less than the current year. The Senate recommended $4.82 million, just slightly less than the House and the executive recommended $5.31 million.  The House recommended reducing operations by $493,000, compared to the Senate’s reduction of $493,600.

• Information Technology- $421.8 million budget is zero general fund and 2.2 percent less than the current year.  The Senate recommendation is $404.1 million and the executive is $431.4 million, neither with general funds.  The House concurred with most of the changes made by the Senate and executive budgets.

• The Legislature- The House gave itself and the higher chamber $106.2 million ($104.7 million GF), about $1 million more than the Senate had approved but still a 7.2 percent gross and 7.3 percent general fund cut from current year.  Most of the difference was additional funding the House provided for the Legislative Council and operations of the House Office Building and the Farnum Building.

• The Auditor General-The House cut a little more from the auditor general than had the Senate, providing $14.57 million gross, $11.23 million GF.  That is an 8.3 percent gross, 10.5 percent GF, cut from current year.  The cuts come largely from field staff, though both chambers cut $63,000 in one-time funding from last fiscal year.

• The Management and Budget- The proposal would allocate $564.1 million, $14 million more than the current year, with $307.7 million in general funds.  The biggest change is the elimination of the funding for the State Fair.

• The Department of  State- A total of $211 million would be appropriated to the department, $3.3 million under the current year, with $25.6 million in general funds, a $530,000 cut.   The biggest overall changes are in funding to implement the Help American Vote Act and in overall operational cuts.

The Judiciary Budget (SB 249)- Was be scaled back by $2.3 million, with a placeholder for keeping mental health court pilot projects intact, under a 2009-10 house version of the budget. The House version totals $257.5 million, $154.2 million in general funds. The $2.3 million hit would result in a 1.5 percent reduction compared to the current fiscal year. Gross spending in the budget is down .6 percent, or $1.5 million. Cuts to the budget would be spread out across various administrative areas, but the largest is $2.9 million from the Court Equity Fund, which reimburses counties for trial court operations.  The Supreme Court Administration would be reduced $228,200, followed by $175,500 for the Supreme Court Administrative Office.  Both the House and Senate budgets put a placeholder appropriation for mental health court pilot projects, which Governor Granholm proposed eliminating, which would save $523,500 in general funds.  Both chambers also include a placeholder for a pilot project to train criminal defense attorneys who take on court-appointed juvenile abuse and neglect cases.  But the House s did not include a nearly $1 million interdepartmental grant from the Department of Corrections for an intensive probation pilot program the Senate had recommended.

Department of Energy, Labor and Economic Growth (SB 243)-The House version totals $1.4 billion, of which $45.8 million is paid for with general funds. That’s a 23 percent reduction in general fund support from the current fiscal year and the budget is below what both the Senate and governor recommended.  Debate over whether or not the budget will rely some more on liquor license fees, from 4 a.m. or Sunday morning.

Department of Agriculture (SB 237)- As substituted, the House version totals $87 million, $30.5 million of which is paid for with general funds. The budget is slightly more in gross spending than what the Senate has passed and above what the governor recommended. But the appropriation is less than what the department is receiving in the current fiscal year, including $3.5 million lighter in general funds.  The House budget would use $5.2 million in the state services fee fund to support county fairs and the Office of Racing Commissioner, which the governor’s budget did not include, as well as federal funding for specialty crop grants, which is why its gross appropriation is more than the other two budgets.  It added higher milk inspection fees.  The Department of Energy, Labor and Economic Growth would provide an interdepartmental grant to Agriculture totaling $400,000 under an amendment added to the budget.

Military and Veterans Affairs (SB 250)- Skipped subcommittee, a 27 percent cut to veteran’s service organizations topped off steep cuts in the budget for the Department of Military and Veterans Affairs. The House version totals $145.6 million, $35.9 million in general funds. That’s a $3.6 million cut compared to the governor’s proposed budget and $3.2 million below the Senate’s.  On top of the service organization cuts, military training sites and support facilities would be reduced $1.1 million, along with a $1.1 million administrative reduction in headquarters and armories.  While the Senate had added $100,000 for special maintenance above the governor’s recommendation, the House cut out funding for the program.

Department of Human Services (SB 248)- The House zeroed out the budget for the Department of Human Services but not without Republicans attempting to substitute in the Senate’s version of the bill, which would cut nearly $200 million in general funds compared to the current fiscal year.

The State Fair (SB 596)- Conveys the state’s property for the Upper Peninsula Fair to Delta County for $1. The legislation requires the property to remain in use as a fairground in order for the conveyance to continue. Upper Peninsula lawmakers said a multi-county regional authority plans to run the fair, which has been proposed for elimination in the 2009-10 Agriculture budget.