Appropriations: Summary and Analysis, FY 2014-15

136 Pages·2014·1.59 MB·English

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: [phone]  FAX: [phone] 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