FY 2023-2024 SUPPLEMENTAL S.B. 749 (S-2):

SUMMARY OF SUBSTITUTE BILL

IN COMMITTEE

 

 

 

 

 

 

Senate Bill 749 (Substitute S-2)

Sponsor: Senator Sarah E. Anthony

Committee: Appropriations

 

Date Completed: 5-1-24

 


CONTENT

 

The supplemental appropriations bill would appropriate approximately $1.4 billion gross and a negative $15.7 million General Fund/General Purpose (GF/GP) across several State departments, the Legislature, and Judiciary, for fiscal year (FY) 2023-24. Appropriations for each department and branch of State government, by fund source, are detailed in Table 1.

 

Appropriations for FY 2023-24 are primarily items requested by the State Budget Office in Supplemental Request Letter 2024-2, which was submitted to the House and Senate Appropriations Committees on February 7, 2024, in conjunction with the Governor's Recommendation for the FY 2024-25 budget.

 

Items that would be funded under the bill include the following: $25.1 million gross, $24.5 million GF/GP for State employee lump-sum payments that were approved by the Civil Service Commission, which represents half the amount originally requested; $1.2 billion gross, $31.4 million GF/GP in various caseload adjustments for programs administered by the Department of Health and Human Services (DHHS); a $68.0 million fund shift from GF/GP to Federal funds available under the American Rescue Plan (ARP) State Fiscal Recovery Fund (SFRF) to support correctional facility operations; a $25.0 million GF/GP reduction for Renewable Ready Communities in the Department of Environment, Great Lakes, and Energy (EGLE); a $5.0 million GF/GP reduction for the Nature Awaits program in the Department of Natural Resources, and other items as detailed in Table 2.

 

Table 1

FY 2023-24 Supplemental Appropriations

Department

Gross

Federal

Other Funds

GF/GP

Agriculture and Rural Development

$390,000

0

0

$390,000

Attorney General

281,500

0

0

281,500

Civil Rights

104,700

0

0

104,700

Corrections

6,038,500

68,000,000

0

(61,961,500)

Education

154,600

0

0

154,600

Environ., Great Lakes, and Energy

11,844,400

35,007,000

1,336,000

(24,498,600)

Executive

84,000

0

0

84,000

Health and Human Services

1,309,597,700

536,558,000

723,365,800

49,673,900

Judiciary

534,400

0

0

534,400

Labor and Economic Opportunity

10,945,500

7,000,000

582,000

3,363,500

Legislature

3,331,200

0

0

3,331,200

Licensing and Regulatory Affairs

255,600

0

0

255,600

Military and Veterans Affairs

1,128,700

750,000

0

378,700

Natural Resources

(4,369,000)

0

0

(4,369,000)

State

6,921,700

5,720,000

1,146,500

55,200

State Police

10,622,000

0

0

10,622,000

Technology, Mgmt, and Budget

632,800

0

0

632,800

Transportation

4,186,800

0

0

4,186,800

Treasury

2,180,600

0

1,110,000

1,070,600

TOTAL

$1,364,865,700

$653,035,000

$727,540,300

($15,709,600)

 

FISCAL IMPACT

 

The bill would appropriate a total of $1.4 billion gross and negative $15.7 million GF/GP for FY 2023-24. Further detail on these appropriations is available in the CONTENT portion of this analysis, as well as Table 2, below.

 

Table 2

FY 2023-24 Supplemental Appropriation Details

Dept.

Item

Gross

GF/GP

MDARD

Employee lump-sum payments

390,000

390,000

AG

Employee lump-sum payments

281,500

281,500

DCR

Employee lump-sum payments

104,700

104,700

Corr.

Employee lump-sum payments

6,038,500

6,038,500

Corr.

GF/GP to ARP SRF fund shift

0

(68,000,000)

MDE

Employee lump-sum payments

154,600

154,600

EGLE

Employee lump-sum payments

501,400

501,400

EGLE

HD vehicles hydrogen fueling/Ag. renewable energy (2.0 FTEs)

22,663,000

0

EGLE

Methane emissions reduction program - IIJA

5,025,000

0

EGLE

Underground injection control class VI wells program - IIJA

1,930,000

0

EGLE

Water quality various Fed. grants; Aquifer Prot. Fund reapprop.

3,298,000

0

EGLE

Great Lakes remedial action plan grants - IIJA

992,000

0

EGLE

Diesel emission reduction projects

693,000

0

EGLE

Coastal zone management program IIJA/IRA

475,000

0

EGLE

Standish Twp. water connection support Fed. grant

1,267,000

0

EGLE

Renewable ready communities

(25,000,000)

(25,000,000)

Exec.

Employee lump-sum payments

84,000

84,000

DHHS

Behavioral health Medicaid caseload adjustments

59,623,600

21,000,000

DHHS

Physical health Medicaid caseload adjustments

2,433,318,400

5,691,600

DHHS

Child support navigator pilot

2,100,000

0

DHHS

Child support enforcement - incentive funding

6,413,900

0

DHHS

Children s special health care services caseload adjustment

19,998,800

13,638,200

DHHS

MIChild premiums elimination (partial year)

(600,000)

1,350,000

DHHS

Child welfare caseload adjustments

(28,549,900)

(6,720,800)

DHHS

Electronic visit verification penalty

0

14,680,500

DHHS

Public assistance caseload adjustments

(1,248,059,800)

2,230,000

DHHS

Nursing home screening costs PAS/ARR-OBRA

2,000,000

500,000

DHHS

Family support subsidy caseload adjustments

2,940,400

0

DHHS

Medicare buy-in compliance costs

(13,098,700)

(4,469,600)

DHHS

Federal Medicare pharmaceutical program error correction

(4,215,500)

0

DHHS

Federal authorization adjustments

37,879,800

0

DHHS

Medicaid state restricted revenue adjustments

0

(6,550,000)

DHHS

ARP - epidemiology and lab capacity genomic sequencing

3,308,800

0

DHHS

ARP - home and community-based funding -supportive housing

10,000,000

0

DHHS

ARP - strengthening US public health infrastructure - foundational capabilities

5,878,800

0

DHHS

ARP - strengthening US public health infrastructure - data modernization

1,919,800

0

DHHS

COVID-19 emerging infections programs

4,852,200

0

DHHS

COVID-19 immunization and vaccine grant reserve fund

1,858,700

0

DHHS

COVID-19 national wastewater surveillance system

3,704,400

0

DHHS

Preschool dental screenings

1,000,000

1,000,000

DHHS

Employee lump-sum payments

7,324,000

7,324,000

Jud.

Employee lump-sum payments

534,400

534,400

LEO

Employee lump-sum payments

363,500

363,500

LEO

Community and worker economic transition office (20.0 FTEs)

2,500,000

2,500,000

LEO

Bureau of services for blind persons Federal grants

5,000,000

0

LEO

State manufacturing leadership program Fed. grant to MSF

2,000,000

0

LEO

Education governance study reapprop. of existing grant

500,000

500,000

LEO

Radiation safety section (4.6 FTEs)

582,000

0

Leg.

Independent Citizens Redistricting Commission costs

3,331,200

3,331,200

LARA

Employee lump-sum payments

255,600

255,600

DMVA

Employee lump-sum payments

378,700

378,700

DMVA

Veteran suicide prevention grants - Federal

750,000

0

DNR

Employee lump-sum payments

281,000

281,000

DNR

Great Lakes consent decree retire commercial fishing license

1,150,000

1,150,000

DNR

Conservation officer pay parity reduction

(800,000)

(800,000)

DNR

Nature awaits reduction

(5,000,000)

(5,000,000)

State

Employee lump-sum payments

55,200

55,200

State

Contract with MDOC for license plate manufacture

1,146,500

0

State

Election security initiatives Help America Vote Act Fed. grant

5,720,000

0

MSP

Disaster and emergency contingency fund deposit

7,500,000

7,500,000

MSP

Employee lump-sum payments

2,622,000

2,622,000

MSP

Hazard mitigation assistance loan program

500,000

500,000

DTMB

Employee lump-sum payments

632,800

632,800

MDOT

Employee lump-sum payments

4,186,800

4,186,800

Treas.

Employee lump-sum payments (Treasury)

320,600

320,600

Treas.

Employee lump-sum payments (Lottery)

569,200

0

Treas.

Special election costs

750,000

750,000

Treas.

Lottery operations

540,800

0

 

TOTAL

$1,364,865,700

($15,709,600)

 

 

FY 2023-24 BOILERPLATE LANGUAGE SECTIONS - PART 2

 

Sec. 201. General. Records amount of total State spending and payments to local units of

government.

 

Sec. 202. General. Subjects appropriations and expenditures to the provisions of the Management and Budget Act.

 

Sec. 203. General. Requires appropriations to be spent consistent with Federal rules and regulations.

 

Sec. 204. General. Subjects appropriations to Federal audit and reporting requirements.

 

Sec. 205. General. Requires monthly reporting on spending related to COVID-19.

 

Sec. 206. General. Requires departments to spend funds appropriated for lump-sum payments for costs associated with those payments as approved by the Civil Service Commission. Allows departments to make accounting transactions necessary to effectuate the payments using SIGMA.

 

Sec. 301. Department of Corrections. Provides that revenue appropriated and collected for program and special equipment funds is considered State restricted revenue, and funding must be used for prisoner programming, special equipment, and security projects, with not less than 75% used for prisoner programming. Unspent funds do not lapse to the General Fund and are carried forward for spending in future years.

 


 

Sec. 401. Department of Environment, Great Lakes, and Energy. Establishes a work project for oil, gas, and mineral services ($5.0 million), for the portion of the program funded with Inflation Reduction Act revenue. The purpose is to assist owners to properly plug marginal conventional wells and reduce methane emissions.

 

Sec. 402. Department of Environment, Great Lakes, and Energy. Allows EGLE to hire 1.0 limited-term employee to implement the methane emission reduction program, using funds appropriated for oil, gas, and mineral services.

 

Sec. 403. Department of Environment, Great Lakes, and Energy. Establishes a work project for oil, gas, and mineral services ($1.9 million), for the portion of the program funded with Infrastructure Investment and Jobs Act revenue. The purpose is to assist the State in obtaining primacy of regulation of Class VI UIC wells and to protect underground sources of drinking water.

 

Sec. 404. Department of Environment, Great Lakes, and Energy. Allows EGLE to hire 1.0 limited-term employee to implement the UIC Class VI program, using funds appropriated for oil, gas, and mineral services.

 

Sec. 406. Department of Environment, Great Lakes, and Energy. Establishes a work project for water quality programs ($3.3 million) to address combined sewer overflows, sanitary sewer overflows, and stormwater management.

 

Sec. 407. Department of Environment, Great Lakes, and Energy. Establishes a work project for energy programs ($22.7 million) to support construction of hydrogen fueling stations for heavy-duty vehicles.

 

Sec. 501. Department of Health and Human Services. Establishes a work project for ARP home and community-based services ($10.0 million) to provide grants for permanent supportive housing services for eligible households.

 

Sec. 502. Department of Health and Human Services. Requires the Department to allocate $2.1 million for a pilot program designed to assist families served by the child support program with navigating the program and utilizing community resources. Establishes a work project for child support navigator project ($2.1 million).

 

Sec. 503. Department of Health and Human Services. Requires the Department to allocate $6.4 million in Federal child support incentive funding to support child support operations by improving access to, raising awareness of, and simplifying services. Establishes a work project for child support enforcement enhancements ($6.4 million).

 

Sec. 504. Department of Health and Human Services. Establishes a work project for ARP strengthening US public health infrastructure, workforce, and data systems ($5.9 million), to expand health equity strategies and communication coordination.

 

Sec. 505. Department of Health and Human Services. Establishes a work project for ARP strengthening US public health infrastructure, workforce, and data systems ($1.9 million), to improve the efficiency and capabilities of public health administration and data visualization systems.

 

Sec. 506. Department of Health and Human Services. Establishes a work project for Federal COVID immunization and vaccine grant ($1.9 million) to support the maintenance and operations of the Michigan Care Improvement Registry.

 

Sec. 507. Department of Health and Human Services. Establishes a work project for Federal COVID emerging infections programs ($4.9 million) to modernize public health research and laboratory surveillance activities and support staffing and operational costs for emerging infections programs.


Sec. 508. Department of Health and Human Services. Establishes a work project for COVID-19 national wastewater surveillance system ($3.7 million) to develop the capacity of State and local units of government to conduct and coordinate wastewater surveillance.

 

Sec. 509. Department of Health and Human Services. Establishes a work project for COVID influenza population-based hospitalization surveillance ($300,000) to invest in staffing and necessary equipment and supplies to support the Michigan influenza hospitalization surveillance project.

 

Sec. 510. Department of Health and Human Services. Establishes a work project for ARP epidemiology and lab capacity genomic sequencing ($3.3 million) to leverage new technologies to combat emerging and persistent disease threats in the State.

 

Sec. 503. Department of Labor and Economic Opportunity. Directs the digital workforce development grant in part 1 be allocated to a school district in Owosso City in Shiawassee County. The previous grant of the same name in article 9 of PA 119 of 2023 went to the Department.

 

Sec. 601. Department of Labor and Economic Opportunity. Allows the Department to hire employees and deploy capabilities to evaluate and address the impacts of economic transitions, using funds appropriated for the Community and Worker Economic Transition Office. Requires the Department to develop and submit an economic transition plan by December 31, 2025, and also to submit annual reports beginning February 13, 2025.

 

Sec. 602. Department of Labor and Economic Opportunity. Specifies that funds appropriated for an educational governance study be awarded to a research organization studying the efficacy and efficiency of educational governance. States intent that previous funds awarded for this purpose under Section 1006 of Article 9 of PA 119 of 2023 be lapsed.

 

Sec. 701. Department of State. Establishes a work project for Help America Vote Act funds ($5.7 million) to support election security initiatives.

 

Sec. 801. Department of State Police. Requires GF/GP funds appropriated for disaster and emergency contingency fund to be deposited into that restricted fund.

 

Sec. 802. Department of State Police. Creates the hazard mitigation assistance revolving loan fund in the State Treasury and specifies parameters for the Fund. Requires money spent from the Fund to be spent in accordance with the Safeguarding Tomorrow through Ongoing Risk Mitigation (STORM) Act. Money in the fund remains in the Fund and the end of the fiscal year and does not lapse to the General Fund.

 

Sec. 901. Department of Technology, Management and Budget. States the intent of the Legislature that the State Budget Director lapse any remaining work project authorization from two accounts: 1) Section 1094m(1)(a) of Economic Development and Workforce Grants funded under Article 5 of PA 166 of 2022, and 2) the Community Health Campus Pilot Project funded under Section 1996 of Article 6 of PA 166 of 2022.

 

Fiscal Analyst: Josh Sefton

 


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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.