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<TITLE>: HOUSE-PASSED (6-17-03) - FY 2003-04 AGRICULTURE BUDGET</TITLE>

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<p>FY 2003-04 <a name="2"></a>AGRICULTURE BUDGET - S.B. <a name="1"></a>288 (H-1): HOUSE-PASSED</p>

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<td class="table1column1" width="80%" style="border-right: none; border-left: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" valign="top"><p><span style="font-weight: bold">FY 2003-04 Senate-Passed Gross Appropriations<span>.&#160;.&#160;.&#160;.&#160;.&#160;.&a mp;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&# 160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;. &#160;.&#160;.&#160;</span></span></p>

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<td class="table1column2" width="20%" style="border-left: none; border-right: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" align="right" valign="top"><p><span style="font-weight: bold">$89,182,500</span></p>

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<td class="table1column1" width="80%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p><span style="font-weight: bold">House Changes to Senate-Passed:</span></p>

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<td class="table1column2" width="20%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p style="text-indent: 5.33333in; margin-left: -5.33333in">&#160;</p>

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<td class="table1column1" width="80%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;1.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Agricultural Enhancement Fund.</span> The House includes $2,600,000 in

revenue from the proposed Agricultural Enhancement Fund. This funding is

designated for market development ($1,000,000), bovine tuberculosis

($750,000), migrant labor housing grants ($600,000), local conservation

districts ($200,000), and future farmers of America ($50,000).</p>

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<td class="table1column2" width="20%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>2,600,000</p>

</td>

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<td class="table1column1" width="80%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;2.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Bovine TB.</span> The House rejects the Senate-proposed funding increase for

bovine TB. The House restores the redirected funding to the marketing

programs ($550,000) and the building and track improvements ($123,300) and

rejected the fund shift included in the food and dairy program ($100,000). The

House includes $500,000 from the Michigan Strategic Fund for this program.</p>

</td>

<td class="table1column2" width="20%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>400,000</p>

</td>

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<td class="table1column1" width="80%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;3.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Emerald Ash Borer.</span> The House includes additional Federal funding to

combat this plant pest.</p>

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<td class="table1column2" width="20%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>7,250,000</p>

</td>

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<td class="table1column1" width="80%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;4.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Market Development.</span> The House includes additional GF/GP funding for

market development activities. This funding is realized through increased

employee turnover savings and increased year-end transfer of Agriculture

Equine Industry Development Fund revenue to the General Fund.</p>

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<td class="table1column2" width="20%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>183,200</p>

</td>

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<td class="table1column1" width="80%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;5.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Distribution of Outstanding Winning Ticket Revenue.</span> The House

increases the &#8220;outs&#8221; distribution appropriation from $500,000 to $1,500,000 in

anticipation of increased wagering at the horse tracks associated with the

proposed &#8220;racino&#8221; package.</p>

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<td class="table1column2" width="20%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>1,000,000</p>

</td>

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<td class="table1column1" width="80%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;6.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Food Bank. </span> The House includes a General Fund boilerplate appropriation for

procurement and distribution of Michigan agricultural products to emergency

food providers.</p>

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<td class="table1column2" width="20%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>369,500</p>

</td>

</tr>

<tr>

<td class="table1column1" width="80%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;7.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Grants.</span> The House includes GF/GP grants for the NW Michigan Horticulture

Research Station ($29,700) and the SW Michigan Tourist Council ($10,000).</p>

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<td class="table1column2" width="20%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>39,700</p>

</td>

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<td class="table1column1" width="80%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;8.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Points of Difference.</span> The House includes various $100 points of difference

in horse racing-related programs, a $100 item for a proposed groundwater

dispute program, a $100 item for the Michigan state fair, and a $100 item for

the seed inspection program.</p>

</td>

<td class="table1column2" width="20%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>300</p>

</td>

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<tr>

<td class="table1column1" width="80%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;9.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Other.</span></p>

</td>

<td class="table1column2" width="20%" style="border-left: none; border-right: none; border-top: none; border-bottom: 0.0133333in solid" align="right" valign="top"><p>45,000</p>

</td>

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<td class="table1column1" width="80%" style="border-right: none; border-left: none; border-top: none" valign="top"><p>Total Changes<span>.&#160;.&#160;.&#160;.&#160;.&#160;.&#1 60;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.& amp;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.& #160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160; .&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&am p;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#16 0;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&a mp;#160;.&#160;.&#160;</span></p>

</td>

<td class="table1column2" width="20%" style="border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>$11,887,700</p>

</td>

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<td class="table1column1" width="80%" style="border-right: none; border-left: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" valign="top"><p><span style="font-weight: bold">FY 2003-04 House-Passed Gross Appropriation<span>.&#160;.&#160;.&#160;.&#160;.&#160;.&am p;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#16 0;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&a mp;#160;.&#160;.&#160;.&#160;.</span></span></p>

</td>

<td class="table1column2" width="20%" style="border-left: none; border-right: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" align="right" valign="top"><p><span style="font-weight: bold">$101,070,200</span></p>

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<br>

<p>FY 2003-04 <a name="3"></a>AGRICULTURE BUDGET - BOILERPLATE HIGHLIGHTS</p>

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<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: 0.04in double #7f7f7f" valign="top"><p><span style="font-weight: bold">Changes from FY 2003-04 Senate-Passed:</span></p>

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<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;1.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">Sec. 206.</span></span><span style="font-family: 'Arial', sans-serif"> Federal contingency fund authorization of $15,000,000.</span></p>

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<td class="table2column1" width="100%" style="border-bottom: none; height: 0.309167in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;2.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">Sec. 212. </span></span><span style="font-family: 'Arial', sans-serif">Indemnification payment authorization for apiarian (bees) loss caused by bears.</span></p>

</td>

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<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in">&#160;3.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">Sec. 219.</span></span><span style="font-family: 'Arial', sans-serif"> Requires the Department of Information Technology to establish a schedule of rates for

services provided to the Department.</span></p>

</td>

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<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in"><span style="font-family: 'Arial', sans-serif">&#160;4.<span>&#160;&#160;&#160;&#160;</s pan><span style="font-weight: bold">Sec. 223. </span>Appropriates the unexpended balances of FY 2002-03 appropriations to a special account

to encourage administrative efficiencies.</span></p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in"><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">&#160;</span></span><span style="font-family: 'Arial', sans-serif">5.<span>&#160;&#160;&#160;&#160;</span><s pan style="font-weight: bold">Sec. 225.</span> Designates the use of Agricultural Enhancement Fund and casino compact revenue of

the Michigan Strategic Fund above the $2,600,000 appropriation.</span></p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in"><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">&#160;</span></span><span style="font-family: 'Arial', sans-serif">6.<span>&#160;&#160;&#160;&#160;</span><s pan style="font-weight: bold">Sec. 301.</span> Allows per diem payments for commodity committees.</span></p>

</td>

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<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in"><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">&#160;</span></span><span style="font-family: 'Arial', sans-serif">7.<span>&#160;&#160;&#160;&#160;</span><s pan style="font-weight: bold">Sec. 453.</span> Appropriates $500,000 to bovine TB from casino compact revenue.</span></p>

</td>

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<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in"><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">&#160;</span></span><span style="font-family: 'Arial', sans-serif">8.<span>&#160;&#160;&#160;&#160;</span><s pan style="font-weight: bold">Sec. 706.</span> Appropriates an additional $369,500 GF/GP for procurement and distribution of Michigan

agricultural products to emergency food providers. (Note: This appropriation does not appear in the

line item section of the House recommendation.)</span></p>

</td>

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<td class="table2column1" width="100%" style="border-left: none; border-right: none; border-top: none; border-bottom: none" valign="top"><p style="text-indent: -0.341667in; margin-left: 0.341667in"><span style="font-weight: bold"><span style="font-family: 'Arial', sans-serif">&#160;</span></span><span style="font-family: 'Arial', sans-serif">9.<span>&#160;&#160;&#160;&#160;</span><s pan style="font-weight: bold">Sec. 810.</span> Limits expenditures for the Michigan State Fair to the amount appropriated. Prohibits the

Department from paying for any costs above the amount appropriated.</span></p>

</td>

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<p>Date Completed: <a name="5"></a>6-17-03 - Fiscal Analyst: <a name="4"></a>Craig Thiel</p>

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