Under the Dome

Capitol Update, February 9-April 18, 2008

Cynthia Paul

1. Mark your Calendar; SEIU Local 517 Lobby Day is scheduled for May 15 starting at 8:30 AM. Issues will include: Public Service Accountability (PSA), Funding for local municipalities and schools and ergonomics. This will also include a press conference on PSA.

2. Electronic letter writing campaign (get active) to stop Aramark from raping and pillaging the Detroit Public School system. Please take action at http://seiuaction.org/campaign/protectdetroitschoolfunding

3. Electronic Letter writing campaign (get active) to protect state and school retiree healthcare from the House Committee on Healthcare Reforms. Please take action at http://seiuaction.org/campaign/standupforstateretirees

4. Electronic letter writing campaign (get active) to encourage Congress to enact a moratorium on implementation of CMS Medicaid regulations that will cost MI $700 million in year one and $3.9 billion over the next five years. Please take action at http://seiuaction.org/campaign/protectmimedicaid

E.O. OKs State Employee Political Contribution to Union PAC -Governor Granholm issued an executive order clarifying the power of the Civil Service Commission to allow state worker unions to implement a check off system for political contributions to their PAC, EO 2008-3.

Granholm Signs Booster Seat Legislation- Requiring children between the ages of four and eight and shorter than four feet nine inches in height to sit in a car booster seat starting July, SB 82, PA 43. The current mandates only require children under the age of four to be seated in an infant or child car seat.

Granholm Signs Immigrant License Bill- Legislation to allow foreign residents living legally, but temporarily, in the United States to get a driver’s license was signed.
HB 4505, PA 7.

Granholm Signs Boarder Crossing id cards-Michigan driver’s licenses and identification cards could be used as identification at international boarder crossings under legislation signed into law (SB 654, PA 31; SB 966, PA 32; HB 5535, PA 24, HB 5536, PA 23) it adopts changes required to meet federal standards for the border crossing cards now required in lieu of a passport at the Canadian and Mexican borders. Licenses under the bills still would not meet the federal Real ID Act requirements, which must be in place by December 2009 but which states have protested because of the costs to implement.

Mortgage Package Signed by Governor- Bill Package number two on this issue, provides borrowers greater protections from mortgage fraud along with increasing licensing requirements for mortgage brokers. Including the following:

· HB 4596, PA 72, that allows for regulation of mortgage loan officers;
· HB 5288, PA 59, that revises compensation provisions for mortgage loan officers;
· HB 5289, PA 61, that requires notice when a mortgage loan officer is terminated from his or her employment;
· HB 5290, PA 62, that clarifies the state’s authority over mortgage loan officers and revises the administrative procedures concerning revocation or suspension of a person’s registration as a loan officer;
· HB 5291, PA 63, that revises the procedures for investigations by the Office of Financial and Insurance Services into a loan officer;
· SB 826, PA 64, which creates a mortgage advisory board;
· SB 827, PA 65, that sets sentencing guidelines for violating the mortgage company act;
· SB 828, PA 66, which actually requires registration of mortgage loan officers;
· SB 829, PA 67, setting licensing fees for mortgage brokers and lenders;
· SB 831, PA 69, setting rules of the surrender or revocation or the suspension of a broker or lender;
· SB 832, PA 70, outlawing some activities by lenders; and
· SB 833, PA 71, which also outlaws some activities by brokers and lenders.

HB 5443, PA 53 HOMES (Tobocman) Provides waiver for bonds issued to refinance single family homes.
SB 951, PA 54 REFINANCING (Thomas) Allows refinancing of single family houses by housing development authority.
SB 950, PA 55 HOUSING FINANCE (Clarke) Establishes a housing development authority recapture fund.
HB 5446, PA 56 HOUSING DEVELOPMENT (Schuitmaker) Extends issuance date for limitation on aggregate principal amount of notes and bonds.
SB 948, PA 57 REFINANCING (Hunter) Allows housing development authority to offer refinancing.
SB 1133, PA 58 M.S.H.D.A.. LOAN ELIGIBILITY (Richardville) Increases income qualifier for financing loans from Michigan State Housing Development Authority.

Film Package-Introduced, passed both the House and Senate and Signed by the Governor , which includes the following:

· HB 5841and SB 1168 provide a 42 percent credit against the Michigan Business Tax for direct production expenditures in core communities and a 40 percent credit for expenditures accumulated outside of core communities. To qualify, a production would have to spend at least $50,000 in the state.
· HB 5842 and SB 1169 repeal the current sales tax credit for motion picture companies effective December 31, 2009. HB 5843 and SB 1170 allows for disclosure of certain information if it’s necessary for the administration of the sales tax or business tax credit.
· HB 5844 and SB 1171 allow production companies to claim a credit against the income tax equal to that available for the MBT bills, but would not allow a company to receive both credits.
· HB 5845 and SB 1172 provide an income tax deduction for all or a portion of a gain from the original equity investment of $25,000 or more if a company engages in more than one production in the state within two years.
· HB 5846 and SB 1173 provide a MBT credit for an investment of $250,000 or more for a film or digital media infrastructure project.
· HB 5847 and SB 1174 include film and media production businesses among those eligible for Michigan Economic Growth Authority tax incentives.
· HB 5848 and SB 1175 deal with loan programs through the Michigan Strategic Fund. The bills allow eligible production companies to receive a loans from the Small Business Access Program, create the Michigan Film and Digital Media Investment Loan Program as a separate part of the established Loan Enhancement Program and establish the Choose Michigan Film and Digital Media Loan Fund with a minimum loan amount of $500,000 and a maximum term of 10 years.
· HB 5849 and SB 1176 provide a MBT credit for production companies engaged in job training expenditures to provide on-the-job training for Michigan residents and film crews.
· HB 5850 and SB 1177 transfer the Michigan Film Office to the Strategic Fund, create a Michigan film commissioner and establish a fund for the Michigan film promotion.
· HB 5851, HB 5852, HB 5853, HB 5854, HB 5855, SB 1178, SB 1179, SB 1180, SB 1181 and SB 1182 allow film productions to use state and local government property free of charge.
· HB 5856 and SB 1183 remove the film office from the Department of History, Arts and Libraries.

Granholm Signs Tourism Promotion Bills- Governor Granholm signed a package of bills to promote and increase tourism in Michigan, SB 1223 (PA 98), SB 1224 (PA 99), HB 5865 (PA 100), HB 5866 (PA 101) and HB 5867 (PA 102).

IRS 115 Trusts Taken up in the House Retiree Health Reforms Committee-HB 5913, testimony was taken in committee and a workgroup has met on this bill which will require the retirement benefit systems for state employees, public school employees, judges, lawmakers and state troopers be placed into separate trusts where the state would have the option of prefunding health care benefitsand includes health reimbursement accounts. This legislation is very problematic and we have a letter writing campaign against it, please visit http://seiuaction.org/campaign/standupforstateretirees to take action.

Pay Equity Moves the House February 9, 2008 57-50- Creating a pay equity commission under HB 4627 furthers the discussion of bringing women up to the same pay grade as men.

Election Reform Passes Out of Committee and the House Floor- They allow all adult citizens to register to vote at any county, city or township clerk’s office, rather than requiring them to register at the clerk’s office in their home community. In addition to allowing persons to register at any clerk’s office, the bills permit those who register by mail to then appear at any clerk’s office to have their identification verified. HB 4774 (99-7) and HB 5739 (101-5).

Background Checks for Current Nursing Home and Adult Foster Care Employees- Grand parented in people-compliance was extended to April 09, SB 1161 and House Bill 5894. Each bill has cleared one house.

Parole Changes Voted out of House Judiciary Committee-Extending parole eligibility for certain drug crimes, expanding on revisions to the law made in 2002, when the state’s mandatory minimum sentences for certain drug offenses were eliminated, HB 5829, HB 5830 and HB 5831. The legislation includes several revisions, including shortening the time served before parole eligibility for people convicted for attempting to commit a violation of the Public Health Code’s ban on manufacturing, delivering or possessing Schedule 1 or 2 narcotics and cocaine. For people who violated the law, involving 25 to 999 grams of banned substances, before March 1, 2003 (when the 2002 revisions took effect) they would now be subject to the revised parole criteria under HB 5829. Parole eligibility would also be extended to prisoners who have served 15 years of a life sentence for violating, or attempting or conspiring to violate, the ban on substances involving a Schedule 1 or 2 narcotic or cocaine of 50 to 999 grams. People convicted with substance amounts of 1,000 grams or more before March 1, 2003, would be eligible for parole after serving 20 years. HB 5830 repeals enhanced penalties and sentences for certain drug crimes, as well as life sentences without the possibility of parole for second or subsequent convictions involving Schedule 1 or 2 narcotics or 50 to 999 grams of cocaine. HB 5831 also deals with life probation, as it existed before March 1, 2003.

Food Stamps Twice a Month-Passed by the Senate and House-The Department of Human Services would have to give people receiving more than $100 a month in food assistance two payments each month instead of one under this legislation.

Hire Michigan Workers First- Requires companies receiving state and local government economic development incentives would be given preference if they agreed to hire Michigan workers under a 12-bill package was voted out of the House (HB 5780, HB 5781, HB 5782, HB 5783, HB 5784, HB 5785, HB 5786, HB 5787, HB 5788, HB 5789, HB 5790 and HB 5791).

The House Moves Energy Package-House Bill (HB) 5524 would reform PA 141, the main law governing energy policy in the state of Michigan. This bill would return Michigan to a quasi-regulated market, allowing 10 percent of the energy load in the state to buy electricity from an alternative electric supplier, while giving regulated utilities (DTE and CMS) the guaranteed rate base they say they need to obtain financing from Wall Street to build a new base load plant. Currently, only about three percent of the electric market uses an alternative electric supplier, down from a high of about 20 percent. In addition, HB 5524 requires the Public Service Commission (PSC) to eliminate over five years the current 15 percent surcharge on commercial customers, and the smaller surcharge on industrial customers, that subsidizes residential rates. House Bill 5525 would require utilities to create energy efficiency programs for each of its customer classes. The programs would focus on energy efficiency with consumers, targeting their behavior and incorporating new equipment such as energy efficient light bulbs. Meanwhile, HB's 5548 and 5549 would require an electrical provider to have 10 percent of their annual electricity sales come from renewable resources by 2015, which is termed their Renewable Portfolio Standard (RPS). The bills require an interim RPS of 4 percent in 2012.

Ballot Initiative Reform Passes Senate Campaign and Election Oversight Committee- A substitute to SJR K- Adds provisions requiring signatures of at least 100 voters in each of at least 42 counties, with a minimum of one signature in the remaining counties. Additionally, the provision blocking referendum votes on bills containing appropriations would be made specific to cover general appropriations acts that substantially fund departments or to meet deficiencies. The requirement for collecting signatures in several counties would be in addition to the Constitution’s minimum requirements, based on the total votes cast for governor in the most recent election, of a total number of at least 8 percent for initiative acts and 5 percent for referendum petitions. The committee also approved SB 1087, which provides a longer time frame prior to an election to certify a proposed constitutional amendment or special question to the ballot. Currently, the secretary of state must certify the proposal at least 49 days prior to the election; the bill would change that to 60 days. It would also change provisions regarding circulators of petitions, which now allows them to be qualified voters only at the time of circulating a petition. The substitute requires circulators to be qualified voters, and specifies that their eligibility to circulate petitions is maintained even if they move to a different city/township during the circulation process.

House Transportation Public Transit Subcommittee -
Some of the recommendations on the table include:
· A constitutional amendment to protect the share of fuel taxes going to public transit;
· Dedicating use taxes on leased vehicles to public transit (worth an estimated $16 million-$20 million a year);
· Possible local funding options;
· A public transit commission;
· Create a regional transit authority in Southeastern Michigan;
· Making airports more accessible to public transit systems;
· Greater involvement of the Michigan Economic Development Corporation in transit by directing its programs to firms that work in advanced transit technology and transit projects that boost the economy;
· Incentives to boost transit use, such as tax credits.

Day Care Revisions- Dems Proposal
A week after the Department of Human Services told House lawmakers that it has overpaid day care providers by some $11 million since the 2005-06 fiscal year, House Democrats said they will introduce legislation to crack down on day care fraud and to require more training for providers. The proposed bills, include the following:

· Requiring parents or guardians to document their work, school or other activities that qualify them for state day care subsidies four times a year.
· Mandating DHS conduct sample testing to monitor time and attendance records.
· Requiring the department to decide whether a child is eligible for day care coverage every six months, instead of on an annual basis.
· Mandating DHS pursue the lost funds to the state because of fraud and encourage prosecution of those cases.
· Limiting day care payments to providers living in the child’s home.
· Allowing the department access to enhanced and uniform background check information on day care providers.
· Establishing training requirements for day care providers, which they would have to complete within three months.
· Restricting the number of children one provider can care for.
· Mandating providers complete health and safety checklists and allowing the department to make unexpected visits to check the lists if a complaint is filed.
· Requiring DHS to give qualified parents direct assistance and/or counseling when choosing child care and education resources for their child.

Dillon recall efforts, injunction orders out district residents to stop collecting signatures-Wayne Circuit Court Chief Judge William Giovan issued an injunction Friday to stop out-of-district residents from collecting recall petition signatures. The state Democratic Party had argued recall organizers were breaking the law by using out-of-district residents to collect signatures “overwhelming evidence” of that occurring led the judge to issue the injunction.

Appointments-
Scott Bowen’s appointment as Michigan State Lottery Director.

James Farrell, directed the Civil Service Commission office, and the Department of Civil Service, for the past three and a half years announced he is leaving to join a business consulting company, EquaTerra.

Audit of the DOC Healthcare-Found that the Department of Corrections effectively delivers dental services to prisoners, but failed to provide chronic medical care to half of the patients who required it, said a report by Auditor General Thomas McTavish. The performance audit of DOC’s Bureau of Health Care Services covered medical and dental care services performed during the period from October 2003 through July 31, 2006. Auditors said that the department’s lack of proper screening risked missing serious problems before they worsened, potentially increasing the cost of treatment, and the risk to the patient and the rest of the prison population.

Corrections Facility to Close- Department of Corrections intends to close the Scott Correctional Facility and move the women incarcerated there to the Huron Valley Center The department announced late Tuesday that it was planning to close the prison in Plymouth and move its 859 inmates to the Ypsilanti facility in May 2009. The switch will also mean moving the 525 men housed at Huron Valley to another facility.

Marijuana Ballot Initiative Has Enough Signatures- The Michigan Coalition for Compassionate Care had far more signatures than was needed to qualify legalization of medicinal marijuana for the November ballot. The Legislatures 40 days to either adopt the measure or offer its own alternative expired Sunday, April 13, 2008. Thus, it will be on November's ballot and proposal #1. The proposal allows patients with certain illnesses to grow and possess enough marijuana for personal use. Those prescribed marijuana would carry an identification card that would protect them from state arrest. The possession would still carry federal penalties.

Supplemental budgets for the 07-08 Year- Passed the House and Senate. Changes made by the Senate to both HB 5344 (General Fund) and HB 5531 (School Aid) were voted down by the House sending both bills to Conference Committee, conference report passes House and Senate and presented to the Governor

Senate changes to HB 5344 totals $134.7 million, with $39.1 million, in general funds. HB 5344 (General Fund)- A major portion of the budget goes to the Department of Community Health to repay the federal government over a dispute on school-based clinics. Another $11 million is added to the Department of Environmental Quality as a funding shift, $1-million for Department of Natural Resources to cover the holes left in these budgets due to fee increases that had not passed. It also includes $2-million to keep open the Sterling Heights and Marquette crime labs in the Department of State Police. The budget also includes $10 million to pay for the January 15 presidential primary. The Senate required the Department of Treasury to develop a new cigarette tax stamp program using digital stamps. The Senate also cut money for items like a forestry program in the Department of Agriculture, specialized care in the Department of Community Health, and day care provider rate increases in the Department of Human Services. The Senate added funding for veterans service organizations, the Michigan State University Bio-energy grant and the Law Enforcement Information Network (LEIN), and transferred more money to the Transportation Economic Development Fund. HB 5531 (School Aid)- Senate changes reduce overall spending by $108.4 million, $105.1 million from the School Aid Fund, because of lower student population counts. It does include an extra $4.7 million to ensure that districts receive at least their prior-year funded amounts for school readiness programs, $3.3 million to create an assessment item test bank, $2 million for school bond loan fund debt service and $1.3 million for grants to sparsely populated, rural districts. The Senate rejected a series of amendments to boost spending for early childhood education. Senate cuts in education spending also targeted robotics, mathematics and science programs, which the House had singled out for funding.

Conference Committee Report voted out of the House and Senate and presented to the Governor. It includes the $11-million for DEQ, $1-million for DNR and $2-million for the state Police.

Federal Level:

Immediate Action Needed on "Protecting the Medcaid Safety Net Act (HR 5613)"- Sponsor, Dingell.-During the past year, the U.S. Department of Health and Human Services (HHS) has issued a number of regulations that would reverse long-standing Medicaid policies, eliminating federal payments for a variety of critical Medicaid functions. Eliminating the following payments to: public safety net institutions; coverage of rehabilitation services for people with disabilities; outreach and enrollment in schools as well as specialized medical transportation to school for children covered by Medicaid; graduate medical education payments; coverage of hospital clinic services; case management services that allow people with disabilities to remain in the community; state provider tax laws; and appeals filed through HHS. In December 2007, Congress enacted temporary moratoria on some, but not all, of these regulations. However, all moratoria would expire May 2008. Congressman Dingell, has introduced H.R. 5613, the “Protecting the Medicaid Safety Net Act of 2008," to place a one-year moratorium on seven these Administration-imposed Medicaid regulations that would make significant cuts to the program over the next five years. According to the Congressional Budget Office (CBO), nearly $20 billion in funding is at stake during this five-year period. It is estimated that these regulations will reduce Michigan's Medicaid funding by $700 million in the first year and $3.9-billion over a 5-year period. Please take action at http://seiuaction.org/campaign/protectmimedicaid.

Budgets-That Have Cleared the House of Representatives and Sent to the Senate:

Department of Agriculture (HB 5807)-totals $105 million ($34.5 million general fund), which is $3.4 million, or 3.2 percent less than the appropriation for FY 2007-08. The budget does however appropriate $3.3 million more, or 10.6 percent, in general funding for the department. But the budget reflects a 30 percent reduction in federal funds totals $6.4 million, the majority of which comes from cuts in the emerald ask borer program. The budget spends $2 million more in general funds than the governor’s executive budget, with that money going to the Cooperative Resources Management Initiative program, which deals with the forestry services, and building and track improvements for county and state fairs.

Department of History, Arts and Libraries (HB 5804)- totals $57 million ($44 million in general funds), which is a 13 percent increase ($5 million) in general fund spending compared to the current fiscal year. Gross spending is up 15.3 percent, or $7.6 million. The budget is also higher than the governor’s recommendation by $4.3 million, all in general funds. The bulk of that money would boost spending for libraries and arts grants.

Judiciary Budget (HB 5810)-totals $262 million ($160 million in general funds). That represents a $2.6 million increase in gross spending, or 1 percent, and a $1.9 million general fund increase from the current fiscal year, or 1.2 percent. It mirrors the dollar amounts requested by the governor, but allocates that money somewhat differently. A mental health court pilot project would receive $700,000, all general fund, with $100,000 going to training court and law enforcement personnel. The money will be distributed along with $2.25 million proposed for the Department of Community Health budget. The governor had recommended a $1 million appropriation for the project and $100,00 for the training. The project funding was scaled back to meet the needs of the Court of Appeals and State Appellate Defender Office, which received $673,500 in additional funding under the budget. The Supreme Court operational budget also had to be cut back by $526,500 in order to facilitate the mental health court pilot project.

Military and Veterans Affairs (HB 5812)- totals $130.6 million ($40.3 million GF). That represents a $1.2 million, or 0.9 percent, increase above current year funding levels, but a $48,600, or 0.1 percent, general fund reduction. The House version spends $217,000 more in general funds than the governor’s recommendation. Included in the version approved by the committee is $100,000 for the rehabilitation of the War Veteran’s Memorial located at the state fairgrounds. It also contains a 3 percent increase, $117,300, for veterans’ service organizations, above the governor’s proposal. Both budgets contain a federal cost of living increase for military retirements, but it’s paid for with $169,500 in general funds. The budget includes new boilerplate language stating it’s the intent of the Legislature to create incentives for all counties to fund at least one, full-time veteran’s counselor and provide assistance to veterans with checking their claims status online or by telephone.

The State Police (HB 5811)- totals $530 million ($286 million GF). That represents a $36 million, or 6.3 percent, reduction in gross spending compared to the current fiscal year, but a $12.5 million boost, or 4.6 percent, increase in general fund appropriations. The funding reductions to the budget come from a 35.2 percent, or $51.5 million, loss in federal assistance for the department. The cuts will be for hazardous materials, traffic safety and anti-drug programs. It includes $1 million, from the State Services Fee Fund, to go toward reimbursements for technology costs for Law Enforcement Information Network subscribers. It also includes a $100 placeholder for the city of Detroit’s forensic sciences unit. Both the governor and committee’s budget restores $2 million in general fund spending to avoid closing labs in Sterling Heights and Marquette. The department would also get $2.5 million ($1 million GF) to add palm prints to the Automated Fingerprint Identification System. The budget also includes an additional $7.3 million in general funds for a 100-student recruit trooper school. However, the House committee version includes boilerplate directing the department to come up with a plan for operation of smaller trooper recruit schools on an annual or biannual basis.

Transportation (HB 5808)- totals $3.4 billion, none of which comes from the general fund. The budget recommendation is just $40,000 above the governor’s budget recommendation, which proposed no new programs or revenue, but $64 million above current year funding levels, which represents a 1.9 percent increase. However, state restricted funds that account for $2 billion of the gross total are down 2.4 percent, or $50 million, from the current fiscal year. Local dollars are also down $1.9 million, or 4.4 percent. The state is getting more federal funds, however, than it currently is receiving by $116 million, or 9.7 percent. Still, the budget reflects a reduction in 21 full-time equivalent employees. The $40,000 increase in the subcommittee budget goes solely for trunk turnoffs. The budget spends $47 million – a $1.8 million increase – on grants to other state departments, including $20 million for the Department of State to collect transportation fund revenues and $7.2 million for the Department of Treasury to do the same. The Treasury interdepartmental grant is reduced $653,800 from the current year funding level. State trunkline maintenance will receive $6.1 million additional dollars in the 2008-09 budget, with gross spending at $279 million. State trunkline road and bridge construction funding is down $27 million in restricted funds compared to the current fiscal year, but up $118 million in federal funds for a gross appropriation of $952 million (up $92 million from the current fiscal year). Transportation fund distribution to local road agencies will take a $39 million hit in restricted fund support, putting gross spending at $971 million. The Transportation Economic Development Fund will receive $13 million in new dollars compared to the current fiscal year, which reflects the end of a current fiscal year agreement to transfer the money collected from drivers’ license fees to the general fund. Rail passenger service and local bus transit operating assistance will receive no increase. And bus capital is down $12 million from the current fiscal year ($10 million reduction in federal funds), bringing gross spending to $46 million. Boilerplate language restricting the department from studying the Detroit River International Cross (DRIC) was not included in the subcommittee’s recommendation. SEIU worked with Rep. Gonzales to get Public Service Accountability language added to the boilerplate.

Department of Labor and Economic Growth (HB 5809)-totals $1.4 billion ($95 million general fund) in the recommendation, which is just $1.5 million more than what the governor recommended. The total budget is $63 million, or 4.9 percent, above current year spending by the department, and the general fund portion would grow by $48.9 million, or 106.2 percent because of a $40 million appropriation for the No Worker Left Behind program. While the committee agreed to the additional spending for NWLB, which already receives $50.6 million (all federal dollars), boilerplate language was included in the budget to specify that $30 million of that general fund appropriation has to go toward worker training in high demand fields, that $5 million go for adult basic education, remedial education and other training for people not ready for post-secondary training and that $5 million be allocated for capacity building at community colleges and other public, associate-degree granting institutions. It also includes the governor’s $8.5 million general fund boost for the Nursing Corps Program (gross appropriation is $10 million in the bill), which is used to train nursing faculty and to recruit displaced workers with bachelor's degrees in science for nursing accreditation. The budget also includes the governor’s recommendation for an added $1 million (in restricted funds) for fire protection grants, which go to municipalities that have state buildings. The budget also removes the hiring freeze for the Public Service Commission related to possible changes in the state’s electric utility structure.

General Government budget (HB 5816)- totals $3.1 billion ($659 million GF). That represents a $28 million gross increase in spending above current year levels, or 0.9 percent, but the general fund portion is reduced by $1.6 million, or 0.2 percent. Restricted and federal funds are higher in the budget than in the current year by a combined $23 million. The general government budget covers the Departments of Attorney General, Civil Rights, Information Technology, Management and Budget, State and Treasury, as well as the executive office, Legislature and legislative auditor general.

The House version is $2 million above the governor’s proposal because it includes $1.3 million appropriation for the Legislative Corrections Ombudsman in the Legislative Council and $500,000 for the council’s Sentencing Guidelines Commission, both funded by an interdepartmental grant from the Department of Corrections. The budget mirrors the governor’s statutory revenue sharing increase of 4 percent for cities, villages and some townships that received that payment in the current fiscal year. It also includes revenue sharing for a handful of counties that are coming back onto the system next year.

It increases funding to the Department of Treasury by $966,000, the majority of which will go toward operations, city-university partnership grants and energy efficiency grant programs and also allotted $51,000 in additional general funds to pay annual dues to the National Conference of Commissioners on Uniform State Laws.

It retains up to $250,000 for the attorney general to investigate and prosecute antitrust and consumer protection cases and $25,000 for staff, insurance and other costs for the auditor general.

Like the executive budget, it includes a $684,000 increase in Treasury’s budget to the Gaming Control Board to move its operations closer to the Detroit casinos and into state-owned buildings.

Department of Human Services (HB 5814)- Totals $4.6 billion ($1.3 billion in general funds). The committee budget is $37 million, or 0.8 percent, above current year funding levels, with general fund spending up $16.8 million, or 1.3 percent. However, the budget is below the governor’s recommendation by $44 million gross, $51.4 million in general funds (the subcommittee budget spends more in restricted and federal funds, but less in local dollars). The budget would cut 60 staff positions in juvenile justice facilities (30 from the state’s medium security facility, 20 from central staff in the Bureau of Juvenile Justice and 10 from the Flint House community juvenile justice center, which the department has already planned to close). The action would net savings to the general fund totaling $4.1 million, with gross savings of $6.2 million. Savings from those staffing reductions will go toward hiring employees in other parts of the DHS budget. That would include 64 new DHS field staff, three new staff in the interstate compact unit (which oversees interstate child placements) and five new staff in the foster care and adoption contract monitoring division. Hiring those new people will cost $5.4 million gross, $3.2 million of that in general funds. It also includes the hiring of 12 new licensing staff to the bureau that handles background checks, which is higher than the governor’s recommended five new employees. Those hirings will cost $1.3 million gross, $1 million in general funds. It also includes a Family Independence Program benefit increase of $3 per person, per month, so an average family of three would receive $498 each month. That was one of the governor’s budget recommendations. Many low-income families received a benefit increase in 2006 due to a revision in payment standard tables, but this would be the first general increase in the program since 1990. Increasing the cash assistance offered would add $7.5 million in general fund costs to the program, making total spending each $374 million. People receiving state disability assistance benefits would also see more funding under the governor’s and House’s budget, which adds $5 per person, per month, to the program at a cost of $1.3 million ($1 million general fund). Those individuals would receive $269 a month, which is a 2 percent increase from current year funding levels. The governor’s and House committee budgets differ in their anticipated caseloads for FIP and day care services, with the latter expecting lower assistance needed (3,300 less FIP cases, 4,000 less day care). The House budget therefore saves $14.9 million gross, $13.4 million GF, for FIP, and $29.7 million gross and GF for day care. It builds off of the governor’s recommendation to increase the FIP children’s clothing allowance from $43 per child to $75, with the House recommendation of $100 per child at a cost of $7 million in general funds. Day care providers would also see a boost under both the governor’s and House’s budgets. But the House provides a $15 million appropriation to be applied across-the-board to all providers, while the governor included some funding for day care program administration. Licensed day care providers would get additional state support – a $5.6 million or 4 percent – in an effort to spur more facilities into getting licensed. Both the governor and House committee budget anticipate a $5.3 million general fund savings from a change in federal law regarding FIP child support pass-through. Savings of $4.3 million in general funds is also expected in both budgets because of a change in state policy regarding retroactive Supplemental Security Income payments with the state retaining some of the payments as reimbursement for previous FIP support. Both budgets also redirect $7.3 million that paid for FIP clients under Michigan Rehabilitation Services. That money instead would cover 63 new FIP caseworkers and 20 related administrative positions at a general fund savings of $1.4 million. The House committee budget departs from the executive recommendation by providing more money for indigent burials ($1.4 million GF) and $3 million (all GF) for facility improvements at Maxey Training School and property development at Adrian Training School. The House version also differs from the governor’s in terms of Title IV-E funding assumptions, which were also built into the current year budget. The governor’s budget eliminates anticipation of all of those fiscal savings, while the House version partially restores those savings to $3.2 million in general funds, $8.6 million gross, compared to the current fiscal year. It also incorporates $1 million ($200,000 GF) in additional spending for a program that assists older youth who are transferring out of the child welfare system. This has been voted out of the full appropriations committee, but still remains on the House floor.

Budgets that have passed out of the Senate-

Department of Community Health budget ( SB 1094)- totals $12.48 billion, more than $400 million larger than the current year’s budget. General funds total not quite $3.1 billion. Complaints that the Governor's proposed budget contained approximately $100 million in holes, which were largely plugged by pulling Medicaid funding for 19- to 20-year-olds and by halving funding for the state’s Healthy Michigan program (and rolling it all into one line so the administration could decide how best to spend it). It adds funding for local public health departments, provides additional funding for traumatic brain injuries, and creates a way for all pregnant women on Medicaid to be in a health maintenance organization. It also includes an increase in the reimbursement rate for primary care physicians. Eliminated funding for mental health courts proposed in the Governor's budget. Senator Cherry unsuccessfully tried to add $30 million into the Older Michiganians’ Act to help ensure that individuals can stay in their homes rather than go into nursing homes or other institutional care.

Higher Education (SB 1099)- Michigan’s 15 four-year universities would each see a 3 percent increase in their base funding under the budget which was approved on a 37-1 vote. The budget totals $1.79 billion, $1.67 billion in general funds. The budget is actually $96 million less than the current year’s budget, but most of that difference is accounted for in the elimination of a one-time payment to the universities to make up for a delay in payments in the 2006-07 fiscal year. The budget passed the Senate by a 37-1 vote.

Community Colleges (SB 1093)- totals $302 million, all of it in general funds, for the state’s community colleges. The allocations of the community colleges totals a 3 percent increase; the formula in the budget provides increases from 2.4 percent to 3.9 percent. The budget is $16 million less than the current budget, again to reflect the elimination of a one-time payment to make up for a delay in payments during the 2006-07 fiscal year. It passé the Senate by a vote of 37-0.

Departement of Education (SB 1096)- totals $94.2 million, $2 million less than the current year, and the Senate version is $500,000 less than the amount recommended by Governor Granholm.
It included a provision to spend $300,000 to conduct performance audits of the Detroit Public School system. It is funded mostly through federal monies. General funds account for $7.9 million. Among the biggest changes in the budget is $1.4 million for a state testing item bank that would include funding for test development. It passed by the Senate by a 36-1 vote.

School Aid (K12) Budget (SB 1106)- totals $13.375 billion The K-12 budget is $369.5 million more than the current year’s budget. It does not include several of Governor Granholm’s proposals including spending for all-day kindergarten and funding for urban districts, where larger high schools are not meeting federal adequate yearly progress requirements, to create smaller high schools. The bill grants $71 increases to districts with per-pupil allocations of $8,433 or higher and up to $142 for districts that get less than that. The bill does not provide funding for smaller high schools but it does take the $32 million Governor Granholm had proposed for that purpose to create an infrastructure grant program that would be available to all school districts on an application basis. Under the grant, a district could get funds amounting to between $19-$20 per student to help pay off current debt, add to a sinking fund or pay for immediate repairs. It marks the first time that the state would provide funds for infrastructure needs in the K-12 budget. It adds $4.9 million in school readiness funds. It added $100 as a placeholder for programs that are part of separate legislation to ensure the young students are reading at grade level before they leave the third grade. It passed the Senate 36-2 after many hours of debate.

Department of Corrections (SB 1095)- Totals $2.05 billion, $1.978 billion in general funds. The budget is about $20 million less than the current year. It chops more than $9 million from the department’s central administration. Senator Cropsey argues that the Governor forwarded him a budget that had a $34 million holes in it and upset because of the state's failure to implement and provide adequate reports for the prisoner re-entry program. It does include funding to restore the legislative ombudsman’s position that has not existed for a number of years. It includes an increase in the community corrections, the first one in a decade. It adds another $14 million for a variety of prisoner health care provisions, including expanding testing for hepatitis C.

Department of Natural Resources (SB 1106)- Totals $274.6 million budget, $13.4 million in general funds. The budget is about $13.6 million smaller than the current year’s budget. The major change in the budget is more than $14 million in payments in lieu of taxes to local governments was transferred from DNR to the Department of Treasury. It also cuts $2.5 million from state park operations. The Senate unanimously this budget.