STATE OF MICHIGAN FISCAL YEAR 2014-15 Appropriations Summary and Analysis Mary Ann Cleary, Director JULY 2014 HOUSE FISCAL AGENCY GOVERNING COMMITTEE Joe Haveman Rashida Tlaib Jase Bolger Tim Greimel Jim Stamas David Rutledge MICHIGAN HOUSE OF REPRESENTATIVES APPROPRIATIONS COMMITTEE Joe Haveman, Chair Jim Stamas Al Pscholka, Vice Chair Rob VerHeulen Jon Bumstead John Walsh Anthony Forlini Rashida Tlaib, Minority Vice Chair Nancy Jenkins Terry Brown Eileen Kowall Brandon Dillon Matt Lori Fred Durhal Peter MacGregor Pam Faris Greg MacMaster Andrew Kandrevas Michael McCready Sean McCann Paul Muxlow Sarah Roberts Earl Poleski Sam Singh Phil Potvin Adam Zemke Bill Rogers John Olumba (I) Mike Shirkey STATE OF MICHIGAN HOUSE OF REPRESENTATIVES HOUSE FISCAL AGENCY MARY ANN CLEARY, DIRECTOR GOVERNING COMMITTEE P.O. BOX 30014 LANSING, MICHIGAN 48909-7514 JOE HAVEMAN, CHAIR RASHIDA TLAIB, VC PHONE: (517) 373-8080 FAX: (517) 373-5874 JASE BOLGER TIM GREIMEL www.house.mi.gov/hfa JIM STAMAS DAVID RUTLEDGE July 2014 TO: Members of the Michigan House of Representatives FROM: Mary Ann Cleary, Director This FY 2014-15 Appropriations Summary and Analysis summarizes the enacted FY 2014-15 state budget. A Glossary, following the table of contents, explains terms used throughout this report to describe Michigan’s budget. The Director’s Overview provides information on resources used in the enacted FY 2014-15 budget; summary tables of appropriated funds and fund sources are also included. Budget Detail pages note major budget and boilerplate changes for each department/ agency. The last section of the report provides an overview of consensus revenue estimates. When analyzing the budget, it is important to note the following: Adjusted Gross is the amount to use when measuring the total amount of funding included in the state budget (including spending from federal sources). State Spending From State Sources is the amount to use when measuring the amount of state resources collected from taxpayers to finance state spending. General Fund/General Purpose (GF/GP) is the amount to use when measuring unrestricted state resources available for legislative allocation to various state programs. Information in the Budget Detail section was provided by HFA Analysts; report production was coordinated by Kathryn Bateson, Administrative Assistant. House Fiscal Agency staff and their areas of responsibility are listed on the inside back cover of this publication. Please feel free to contact them, or me, if you have questions or need further information. TABLE OF CONTENTS OVERVIEW Director’s Overview ........................................................................................................................... 2 Resources Used in FY 2014-15 Year-to-Date Budget .................................................................. 3-4 Charts: FY 2014-15 Enacted General Fund/General Purpose (GF/GP) Appropriations .................... 5 FY 2014-15 Enacted Adjusted Gross Appropriations ............................................................. 5 FY 2014-15 GF/GP Distribution .............................................................................................. 6 FY 2014-15 Adjusted Gross Sources ...................................................................................... 6 FY 2014-15 Appropriations Summary Tables .............................................................................7 -13 BUDGET DETAIL Agriculture and Rural Development................................................................................................ 16 Community Colleges ....................................................................................................................... 21 Community Health (includes Medicaid, Public Health, Mental Health, and Aging) ....................... 23 Corrections ...................................................................................................................................... 31 Education (Department) .................................................................................................................. 37 Environmental Quality ..................................................................................................................... 40 General Government Totals ........................................................................................................... 43 Attorney General ..................................................................................................................... 45 Civil Rights .............................................................................................................................. 47 Executive Office ...................................................................................................................... 49 Legislative Auditor General ..................................................................................................... 50 Legislature ............................................................................................................................... 51 State (Department) .................................................................................................................. 52 Technology, Management, and Budget .................................................................................. 54 Treasury .................................................................................................................................. 59 Treasury – Michigan Strategic Fund ............................................................................................. 63 Higher Education ............................................................................................................................ 67 Human Services (Department) ....................................................................................................... 70 Insurance and Financial Services ................................................................................................... 78 Judiciary .......................................................................................................................................... 80 Licensing and Regulatory Affairs .................................................................................................... 83 Military and Veterans Affairs ........................................................................................................... 90 Natural Resources .......................................................................................................................... 96 School Aid ..................................................................................................................................... 100 State Police ................................................................................................................................... 107 Transportation ............................................................................................................................... 115 CONSENSUS REVENUE ESTIMATES ................................................................................................ 122 GLOSSARY Frequently Used State Budget Terms STATE BUDGET TERMS Gross Appropriations (Gross): The total of all applicable appropriations (statutory spending authorizations) in a budget bill. Adjusted Gross Appropriations (Adjusted Gross): The net amount of all gross appropriations after subtracting interdepartmental grants (IDGs) and intradepartmental transfers (IDTs). Lapses: Appropriation amounts that are unspent/unobligated at the end of a fiscal year; appropriations are automatically terminated at the end of a fiscal year unless otherwise provided by law. Work Project: A statutorily-authorized account which allows a spending authorization to be carried over from one fiscal year to a succeeding fiscal year or years—i.e., allows funds to be spent over a period of years. APPROPRIATION BILL TERMS Line Item: Specific funding amount in an appropriation bill which establishes spending authorization for a particular program or function (may be for a single purpose or for multiple purposes). Boilerplate: Specific language sections in an appropriation bill which direct, limit, or restrict line item expenditures; express legislative intent; and/or require reports. REVENUE SOURCES General Fund/General Purpose (GF/GP): Unrestricted General Fund revenue available to fund any activity accounted for in the General Fund; unused GF/GP revenue lapses to the General Fund at the end of a fiscal year. State Restricted (Restricted): State revenue restricted by state law or outside restriction that is available only for specified purposes; at year-end, unused restricted revenue remains in the restricted fund. Federal Revenue: Federal grant or matchable revenue dedicated to specific programs. Local Revenue: Revenue from local units of government. Private Revenue: Revenue from nongovernment entities: rents, royalties or interest payments; payments from hospitals or individuals; and gifts and bequests. Interdepartmental Grant (IDG): Funds received by one state department from another state department (usually for a service provided by the receiving department). Intradepartmental Transfer (IDT): Transfers of funds being provided from one appropriation unit to another in the same department. MAJOR STATE FUNDS Budget Stabilization Fund (BSF): The Countercyclical Economic and Budget Stabilization Fund; also known as the “rainy day” fund. School Aid Fund (SAF): A restricted fund; the primary funding source for K-12 schools and Intermediate School Districts. General Fund: The General Fund (funded from taxes and other general revenue) is used to account for the ordinary operations of a governmental unit that are not accounted for in another fund. FY 2014-15 Budget Detail DIRECTOR’S OVERVIEW Overview Resources Used in Enacted Budget Summary Tables OVERVIEW FY 2014-15 DIRECTOR’S OVERVIEW Summary and Analysis The enacted state budget for Fiscal Year (FY) 2014-15, year-to-date (YTD) at July 1, 2014, includes $52.3 billion in adjusted gross appropriations, funded from the following sources: $21.7 billion from federal funds. $0.5 billion from local and private sources. $20.0 billion from state restricted funds. $10.1 billion from General Fund/General Purpose (GF/GP) revenue. Compared to FY 2013-14 YTD appropriations (at July 1, 2014), the enacted budget provides an adjusted gross increase of 4.2% and a GF/GP increase of 6.9%. The current FY 2014-15 GF/GP appropriation total reflects an increase of $647.4 million. A portion of the GF/GP increase is attributed to the State reinstating the Medicaid managed care use tax to cover the shortfall in Health Insurance Claims Assessment (HICA) collections. The School Aid appropriations reflect an increase of $548.0 million or 4.1%. In addition to appropriated funds, there is a one-time deposit of $94.0 million into the Budget Stabilization Fund (BSF). The budget incorporates the May 2014 Consensus Revenue Estimating Conference revenue estimates and accounts for projected revenue losses and costs associated with the August 2014 Personal Property Tax (PPT) ballot proposal. The enacted budget does not include any fee increases—only the extension of sunsets on existing fees. See page 13. Appropriation comparison tables for individual budget areas in the Budget Detail section of this report generally reflect FY 2013-14 year-to-date amounts as of February 5, 2014 (rather than July 1, 2014) to reflect FY 2013-14 budget amounts appropriated when the FY 2014-15 Executive Budget was originally released. The figures shown in the Budget Detail tables include both standard line item appropriation totals and funds appropriated for purposes designated as one-time only. FY 2014-15 APPROPRIATIONS SUMMARY AND ANALYSIS PAGE 2: OVERVIEW HOUSE FISCAL AGENCY: JULY 2014
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