EXECUTIVE BUDGET Fiscal Years 2015 and 2016 - State of Michigan

EXECUTIVE BUDGET Fiscal Years 2015 and 2016

State of Michigan Rick Snyder, CPA, Governor John E. Nixon, CPA, State Budget Director

This publication was produced and printed by the Department of Technology, Management and Budget. The purpose of the publication is to inform state and local officials and residents about Governor Snyder’s recommended budget for fiscal year 2015 and projections for fiscal year 2016. This document is required by law MCLA 18.1363 and by the Michigan Constitution, Article V, Section 18.

FISCAL YEARS 2015 AND 2016 EXECUTIVE BUDGET TABLE OF CONTENTS Page

Budget Overview .......................................................................

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Department Detail......................................................................

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Background Information...........................................................

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Web site address for this document: http://www.michigan.gov/budget

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Budget Overview

FUELING MICHIGAN’S FUTURE – THE COMEBACK CONTINUES

Executive Budget Recommendation for Fiscal Years 2015 and 2016

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Back on Track

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OVERVIEW

Fiscal Years 2015 and 2016 Executive Budget Recommendation

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Budget Recommendation in Totality

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Building a Brighter Future for Our Children

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Investing in People – Health and Human Services

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Driving Michigan Forward: Investing in Infrastructure and Job Creation

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Battle Creek Enquirer, Jan. 29, 2013

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Making Michigan Safer

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Protecting and Enhancing Our Natural Resources

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Investing in Local Communities

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Responsible Government, Not Big Government

B

HFDXVHRIKLVGHHSEDFNJURXQGLQDFFRXQWLQJ*RY6Q\GHULVGHGLFDWHGWRHQVXULQJWKDWWKH VWDWH·VEXGJHWLVERWKÀVFDOO\VRXQGDQGUHVSRQVLEOH7KHJRYHUQRUEHOLHYHVLQDSSURDFKLQJWKH VWDWHEXGJHWWKHVDPHZD\DIDPLO\ZRXOGFDUHIXOO\WDNHFDUHRIEDODQFLQJWKHLUEXGJHW²SD\WKH ELOOVSD\GRZQGHEWVHWDVLGHVDYLQJVDQGPDNHWDUJHWHGLQYHVWPHQWVWKDWEXLOGDVWURQJIXWXUH 7KHJRYHUQRUEHOLHYHVWKDWUHVSRQVLEOHJRYHUQPHQWPHDQVVPDUWHUPRUHHIÀFLHQWJRYHUQPHQW ,QDGGLWLRQWRSURSHUO\IXQGLQJPDLQWHQDQFHRIVWDWHIDFLOLWLHVDQGXSGDWLQJOHJDF\V\VWHPVWKH VWDWHZRUNIRUFHLVDOVROHDQHUWRGD\WKDQLWZDV\HDUVDJR7KH6WDWHRI0LFKLJDQZRUNIRUFH KDVGHFUHDVHGIURPHPSOR\HHVLQWRLQDQGWKHVWDWHKDVVXFFHVVIXOO\ HOLPLQDWHGPLOOLRQVTXDUHIHHWRIOHDVHGVSDFHVLQFHUHVXOWLQJLQVLJQLÀFDQWVDYLQJV $VLPSHUDWLYHDVLWLVWRPDLQWDLQWKHVWDWH·VWUDQVSRUWDWLRQV\VWHPLWLVDOVRLPSRUWDQWWRSURSHUO\ IXQGPDLQWHQDQFHRIVWDWHIDFLOLWLHVDQGDVVHWV7RKHOSDYRLGIXWXUHXSNHHSWKDWZRXOGEH VLJQLÀFDQWO\PRUHFRVWO\WKHJRYHUQRU·VEXGJHWUHFRPPHQGDWLRQLQFOXGHVDWRWDORIPLOOLRQLQ LQFUHDVHGLQYHVWPHQWVIRUPDLQWHQDQFHRIVWDWHIDFLOLWLHV

OVERVIEW

A-8


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Providing Tax Relief for Michiganders

0

ichigan has turned the corner IURPWKHHFRQRPLFWXUPRLOWKDWSODJXHGWKHVWDWHIRUQHDUO\ DGHFDGH)RU\HDUVDQG\HDUVUHYHQXHHVWLPDWLQJFRQIHUHQFHVKHOGE\WKHVWDWHSURMHFWHG GLVPDOQHZVDQGDVKRUWIDOORIUHYHQXH7KDWKDVFKDQJHGDQGZKDWZHKDYHGRQHKDVZRUNHG 6LQFHUHYHQXHHVWLPDWHVKDYHWXUQHGWRWKHSRVLWLYH)RUHFDVWVKDYHLPSURYHGDQGUHYHQXH VWUHDPVKDYHVWDUWHGWRÁRZDJDLQ:LWKQHDUO\ELOOLRQLQDGGHGUHYHQXHWKHVWDWHLVLQDPXFK VWURQJHUÀVFDOSRVLWLRQDSRVLWLRQWKDWDIIRUGVQRWRQO\PDNLQJVWUDWHJLFLQYHVWPHQWVEXWRIIHULQJ WD[UHOLHIIRUKDUGZRUNLQJIDPLOLHVDFURVV0LFKLJDQ 7KHJRYHUQRUUHFRPPHQGVH[SDQVLRQRIWKHH[LVWLQJ+RPHVWHDG3URSHUW\7D[FUHGLWWRSURYLGH PLOOLRQRIDGGLWLRQDOSURSHUW\WD[UHOLHISULPDULO\WRORZWRPLGGOHLQFRPHZRUNLQJ IDPLOLHVVHQLRUVDQGSHRSOHZLWKGLVDELOLWLHV

OVERVIEW


A-9

&XUUHQWO\WKHJHQHUDO+RPHVWHDG3URSHUW\7D[&UHGLWLVDYDLODEOHWRKRPHRZQHUVDQGUHQWHUVZLWK LQFRPHVXSWR,WLVFDOFXODWHGE\VXEWUDFWLQJSHUFHQWRIWKHWD[SD\HU·VLQFRPHIURPWKH DPRXQWRISURSHUW\WD[HVRQWKHWD[SD\HU·VKRPHDQGPXOWLSO\LQJWKDWUHVXOWE\SHUFHQW$Q HQKDQFHGFUHGLWLVDYDLODEOHIRUORZLQFRPHVHQLRUVDQGWKRVHZLWKGLVDELOLWLHV5HQWHUVFDOFXODWH WKHLUFUHGLWXVLQJSHUFHQWRIUHQW %HJLQQLQJZLWKWD[\HDUWKHJRYHUQRUSURSRVHVWZRVLJQLÀFDQWFKDQJHVWRWKHFDOFXODWLRQ RIWKH+RPHVWHDG3URSHUW\7D[&UHGLW)LUVWWKHJRYHUQRUSURSRVHVWRFKDQJHWKH+RPHVWHDG 3URSHUW\7D[&UHGLWLQFRPHSHUFHQWDJHIURPSHUFHQWWRSHUFHQWDOORZLQJDJUHDWHUSHUFHQWDJH RISURSHUW\WD[HVWREHUHIXQGHG6HFRQGWKHJRYHUQRUSURSRVHVH[WHQGLQJWKHFUHGLWWRWD[SD\HUV ZLWKLQFRPHVXSWR 7KHSURSRVHGFKDQJHVZLOOSURYLGHDGGLWLRQDOSURSHUW\WD[UHOLHIDQGLQFUHDVHGWD[UHIXQGVWR DQHVWLPDWHGPLOOLRQWD[SD\HUV8QGHUWKHJRYHUQRU·VSURSRVDOWD[SD\HUVZKRTXDOLI\IRUDQG FODLPWKHH[LVWLQJFUHGLWZLOOEHLVVXHGDVXSSOHPHQWDOUHIXQGFKHFNLQWKHVXPPHURIIRUWKH WD[\HDU1HZO\HOLJLEOHWD[SD\HUVZLOOQHHGWRÀOHDFUHGLWFODLPLQRUGHUWRUHFHLYHDUHIXQG ,QIXWXUH\HDUVHOLJLEOHWD[SD\HUVZLOOVLPSO\FODLPWKHFUHGLWE\ÀOLQJD+RPHVWHDG3URSHUW\7D[ Credit return.

Conclusion

:

KLOHWKHUHLVQRGRXEWWKDW0LFKLJDQLVWKHFRPHEDFNVWDWHWKHUHLVVWLOODJUHDWGHDORI ZRUNWREHGRQHEHIRUHWKHVWDWHPDNHVDIXOOHFRQRPLFUHFRYHU\*RY6Q\GHU·VEXGJHW UHFRPPHQGDWLRQLVGHVLJQHGWRDGGUHVVWKRVHDUHDVZKHUHLPSURYHPHQWLVQHHGHGDQGWR FRQWLQXHWRDGYDQFH0LFKLJDQ·VUHLQYHQWLRQ7KLVWZR\HDUEXGJHWSODQEXLOGVRQWKHSULRULWL]HG LQYHVWPHQWVRIWKHSDVWWKUHH\HDUVZKLOHUHPDLQLQJIRFXVHGRQ0LFKLJDQ·VIXWXUH $GRSWLRQRI*RY6Q\GHU·VUHVSRQVLEOH EXGJHWUHFRPPHQGDWLRQIRUÀVFDO “,Q0LFKLJDQ*RY5LFN6Q\GHUKDVKHOSHGEULQJDERXW \HDULVWKHULJKWDQVZHUIRU reforms that have reduced government interference and 0LFKLJDQGHUV*RY6Q\GHUDQGKLV FUHDWHGPRUHFHUWDLQW\IRUEXVLQHVVHV” DGPLQLVWUDWLRQDUHUHDG\WRZRUNLQ SDUWQHUVKLSZLWKWKHPHPEHUVRI The Midland Daily News, Feb. 13, 2013 WKH0LFKLJDQ6HQDWHDQG+RXVHRI 5HSUHVHQWDWLYHVWRHQDFWDÀVFDO\HDU EXGJHWWKDWZLOOKHOSIXHORXU IXWXUHDQGFRQWLQXH0LFKLJDQ·VFRPHEDFN

OVERVIEW

A-10


Department Detail Agriculture and Rural Development Attorney General Civil Rights Community Colleges Community Health Corrections Education Environmental Quality Executive Office Higher Education Human Services Insurance and Financial Services Judiciary Legislature Licensing and Regulatory Affairs Military and Veterans Affairs Natural Resources Revenue Sharing School Aid State State Police Technology, Management and Budget Transportation Treasury

B B B B B B B B B B B B B B B B B B B B B B B B

1 5 9 13 17 23 27 31 35 37 41 45 47 51 53 55 59 63 65 69 71 75 79 83

Department of Agriculture and Rural Development

T

he Department of Agriculture and Rural Development (MDARD) provides services to Michigan residents as well as the food and agriculture sector through a variety of food safety, consumer protection, environmental protection, and animal and plant health programs. 7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUVDQGUHFRPPHQGVRQJRLQJIXQGLQJRI PLOOLRQRIZKLFKPLOOLRQLVJHQHUDOIXQG,QDGGLWLRQRQHWLPHIXQGLQJRIPLOOLRQJHQHUDOIXQGLV UHFRPPHQGHGIRUÀVFDO\HDU

Funding Protects Public Health and the Environment Food and Dairy 20%

Laboratory Program 16%

Animal Industry 11%

Environmental Stewardship 16%

Administration 8% Agriculture Development 9%

Fairs & Horse Racing 4% Pesticide and Plant Pest Management 16%

Total: $82.5 million

Highlights of Governor’s Budget Recommendation

)XQGLQJIRUFRUHSURJUDPVRIWKHGHSDUWPHQWLVPDLQWDLQHGLQFOXGLQJIRRGVDIHW\DQG consumer protection programs as well as plant and animal health, and disease response.

7KHUHFRPPHQGDWLRQLQFOXGHVDQDGGLWLRQDOPLOOLRQJHQHUDOIXQGWRHQKDQFHWKH food and dairy inspection and safety programs designed to ensure a safe and healthy IRRGVXSSO\DQGUHGXFHWKHULVNRIIRRGERUQHLOOQHVVHV)XQGLQJZLOOLQFUHDVHWKHFXUUHQW compliance rate for routine inspection in food establishments and keep up with the JURZLQJGHPDQGVIURPWKHH[SDQGLQJGDLU\SURGXFWLRQLQGXVWU\E\WKHDGGLWLRQRIQHZ staff. (MDARD metric FDD-01)

7KHJRYHUQRUVXSSRUWVFRQWLQXDWLRQIXQGLQJLQWKHDPRXQWRIPLOOLRQJHQHUDOIXQG IRUWKHTXDOLÀHGIRUHVWSURJUDPWRDVVLVWODQGRZQHUVLQWKHPDQDJHPHQWRIWKHLUSULYDWH IRUHVWODQGZKLOHDOVRSURYLGLQJDQHFRQRPLFEHQHÀWWRWKHVWDWHE\HQFRXUDJLQJPDQDJHG harvests on non-industrial private forest land. (0'$5'PHWULF(6') AGRICULTURE AND RURAL DEVELOPMENT


B-1

0'$5'LVUHVSRQVLEOHIRULVVXLQJFHUWLÀFDWHVWRHQVXUH0LFKLJDQ·VDJULFXOWXUDOSURGXFWV such as fruits and vegetables, agriculture seed, and nursery stock are exported free of H[RWLFSHVWVWRPRUHWKDQFRXQWULHVZRUOGZLGH$QDGGLWLRQDOJHQHUDOIXQG LVSURYLGHGWRLQFUHDVHSURFHVVLQJRIH[SRUWFHUWLÀFDWHUHTXHVWVLQDWLPHO\PDQQHU thereby expediting export shipments and stabilizing commitments to the industry for agriculture product inspections. These resources will also assist in the promotion of export opportunities to potential new markets. (MDARD metrics PPPM-11 and PPPM-15)

2QHWLPHIXQGLQJRIPLOOLRQJHQHUDOIXQGLVSURYLGHGIRUWKH)RRGDQG$JULFXOWXUH ,QGXVWU\*URZWK,QLWLDWLYHDJUDQWSURJUDPVWDUWHGLQÀVFDO\HDU IRFXVHGRQ UHPRYLQJEDUULHUVDQGOHYHUDJLQJRSSRUWXQLWLHVLGHQWLÀHGE\IRRGSURFHVVRUVDJUL business, and those in agricultural production as critical to business development and JURZWK7RWDOÀVFDO\HDUIXQGLQJIRUWKHSURJUDPLVPLOOLRQ6LPLODUWRWKHFXUUHQW ÀVFDO\HDUDQDGYLVRU\ERDUGFRQVLVWLQJRIIRRGDQGDJULFXOWXUHLQGXVWU\UHSUHVHQWDWLYHV will identify criteria for grant funding. Grant recipients will be required to identify program outcomes and performance metrics. (MDARD metric AgD-02)

7KHGHSDUWPHQWZLOOEHSDUWRIDFRRUGLQDWHGLQYDVLYHVSHFLHVLQLWLDWLYHKRXVHGLQWKH Department of Natural Resources, and will focus on terrestrial invasive species.

AGRICULTURE AND RURAL DEVELOPMENT

B-2


Governor's Recommendation Department of Agriculture and Rural Development ($ in Thousands) FY2014 Current Law

GF/GP

FY2015 Recommendation

All Funds

GF/GP


All Funds

GF/GP

All Funds

Ongoing Funding

$37,180.3

$76,783.3

$42,876.2

$80,494.3

$42,876.2

$80,494.3

One-Time Funding

$3,400.0

$3,400.0

$2,000.0

$2,000.0

$0.0

$0.0

$40,580.3

$80,183.3

$44,876.2

$82,494.3

$42,876.2

$80,494.3

Ongoing Funding

15.3%

4.8%

0.0%

0.0%

One-Time Funding

-41.2%

-41.2%

-100.0%

-100.0%

Total Funding

10.6%

2.9%

-4.5%

-2.4%

$11,602.2

$16,582.8

$11,602.2

$16,582.8

Laboratory Program

$2,210.4

$13,090.9

$2,210.4

$13,090.9

Environmental Stewardship

$5,840.3

$13,081.5

$5,840.3

$13,081.5

Pesticide and Plant Pest Management

$5,611.3

$12,828.5

$5,611.3

$12,828.5

Animal Industry

$8,063.4

$8,886.6

$8,063.4

$8,886.6

Administration

$6,004.3

$6,968.0

$6,004.3

$6,968.0

Agriculture and Rural Development

$3,242.7

$5,587.1

$3,242.7

$5,587.1

$301.6

$3,468.9

$301.6

$3,468.9

$42,876.2

$80,494.3

$42,876.2

$80,494.3

Food and Agriculture Industry Growth Initiative

$2,000.0

$2,000.0

$0.0

$0.0

Total One-Time Recommendation

$2,000.0

$2,000.0

$0.0

$0.0

TOTAL RECOMMENDATION

$44,876.2

$82,494.3

$42,876.2

$80,494.3

Total Funding

% Change from Previous Year

Programs

Food and Dairy

Fairs and Horse Racing Awards

Total Ongoing Recommendation



B-3


%


Attorney General

T

KH$WWRUQH\*HQHUDO$* VHUYHVDVWKH6WDWHRI0LFKLJDQ·VFKLHIODZHQIRUFHPHQWRIÀFHUDQG XSKROGVDQGSUHVHUYHVWKHVWDWH·VOHJDOLQWHUHVWV7KH$WWRUQH\*HQHUDOSURYLGHVOHJDODGYLFH DQGUHSUHVHQWDWLRQWRVWDWHRIÀFLDOVDQGDJHQFLHVDQGZKHQZDUUDQWHGLQLWLDWHVOHJDODFWLRQRQ EHKDOIRIWKHUHVLGHQWVRI0LFKLJDQ7KH$WWRUQH\*HQHUDODOVRUHFHLYHVDQGLQYHVWLJDWHVFRQVXPHU FRPSODLQWVDQGHQIRUFHVFKLOGVXSSRUWRUGHUV7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUVDQG 2016 recommends total funding of $91 million, of which $35.5 million is general fund.

$148 Million in Child Support Has Been Collected since 2004 due to Attorney General Actions $20 $17M

$18M $18M

$19M

$15M $16M $15M

$15

Millions

$12M $11M

$10 $7M

$5

$2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


7KH([HFXWLYH5HFRPPHQGDWLRQSURYLGHVPLOOLRQIRU$WWRUQH\*HQHUDOFRUHSURJUDPV DQGVXSSRUWVHUYLFHVLQFOXGLQJIXQGLQJIRUDWWRUQH\VZKRSURYLGHDZLGHDUUD\RIOHJDO VHUYLFHVFRQFHUQLQJFKLOGDEXVHDQGQHJOHFWFDVHVKHDOWKFDUHIUDXGFRQVXPHUSURWHFWLRQ DQGOLWLJDWLRQRQEHKDOIRIWKHVWDWH

7KH&KLOG6XSSRUW(QIRUFHPHQW'LYLVLRQZLOOUHFHLYHRYHUPLOOLRQWRHQIRUFHFKLOG VXSSRUWRUGHUV7KHGLYLVLRQIRFXVHVRQSURVHFXWLQJWKRVHSDUHQWVZKRKDYHWKHDELOLW\WR SD\WKHLUFRXUWRUGHUHGREOLJDWLRQVEXWIDLOWRGRVRAG Child Support Enforcement metric 1)

2YHUPLOOLRQLVUHFRPPHQGHGIRUWKH3URVHFXWLQJ$WWRUQH\V&RRUGLQDWLQJ&RXQFLODQ DXWRQRPRXVDJHQF\WKDWSURYLGHVWUDLQLQJDXWRPDWLRQVXSSRUWDQGOHJDOUHVHDUFKIRUORFDO SURVHFXWRUVWKURXJKRXWWKHVWDWH

ATTORNEY GENERAL


B-5

7KHEXGJHWFRQWLQXHVIXQGLQJLQLWLDWHGLQWRLQFUHDVHSURVHFXWLRQVDQGLQFDUFHUDWLRQ RIRIIHQGHUVDQGWRUHGXFHEDFNORJVIRURXWVWDQGLQJZDUUDQWVLQKLJKULVNXUEDQDUHDV7KLV IXQGLQJLVRQHFRPSRQHQWRIWKHJRYHUQRU·VSXEOLFVDIHW\LQLWLDWLYHZKLFKLVWDUJHWHGDW FULPHUHGXFWLRQLQPDMRUXUEDQDUHDVLQ0LFKLJDQ

7KH0LFKLJDQ&RPPLVVLRQRQ+XPDQ7UDIÀFNLQJZDVFRQYHQHGLQ0DUFKDQG LQFOXGHGPHPEHUVRIWKHVWDWHOHJLVODWXUHODZHQIRUFHPHQWVWDWHJRYHUQPHQWDQGDQWL WUDIÀFNLQJDFWLYLVWV7KHFRPPLVVLRQ·VÀQDOUHSRUWDVVHVVHGWKHWKUHDWKXPDQWUDIÀFNLQJ SRVHVWR0LFKLJDQUHVLGHQWVDQGPDGHSROLF\UHFRPPHQGDWLRQVWRSURPRWHLWVH[SRVXUH DQGSUHYHQWLRQ7KH$WWRUQH\*HQHUDOZLOOUHFHLYHJHQHUDOIXQGWROHDGWKLV LQLWLDWLYH

ATTORNEY GENERAL

%


Governor's Recommendation Department of Attorney General ($ in Thousands) FY2014 Current Law

GF/GP Ongoing Funding

All Funds

GF/GP


All Funds

GF/GP

All Funds

$34,481.3

$89,139.9

$35,467.1

$91,022.3

$35,467.1

$91,022.3

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$34,481.3

$89,139.9

$35,467.1

$91,022.3

$35,467.1

$91,022.3

One-Time Funding Total Funding


% Change from Previous Year Ongoing Funding

2.9%

2.1%

0.0%

0.0%

One-Time Funding

0.0%

0.0%

0.0%

0.0%

Total Funding

2.9%

2.1%

0.0%

0.0%

$33,181.4

$85,471.2

$33,181.4

$85,471.2

$867.0

$3,445.0

$867.0

$3,445.0

$1,418.7

$2,106.1

$1,418.7

$2,106.1

$35,467.1

$91,022.3

$35,467.1

$91,022.3

None

$0.0

$0.0

$0.0

$0.0


$0.0

$0.0

$0.0

$0.0

$35,467.1

$91,022.3

$35,467.1

$91,022.3

Programs Attorney General Operations Child Support Enforcement Prosecuting Attorneys Coordinating Council



ATTORNEY GENERAL


B-7

ATTORNEY GENERAL

%


Department of Civil Rights

T

he Michigan Department of Civil Rights (MDCR) works to prevent discrimination through educational initiatives that promote voluntary compliance with civil rights laws. The department also investigates and resolves discrimination complaints. The Civil Rights Commission, appointed by the governor, leads the effort to integrate the work of the department. The Department of Civil Rights also provides support for the Women’s Commission, the Hispanic/ /DWLQR&RPPLVVLRQRI0LFKLJDQDQGWKH$VLDQ3DFLÀF$PHULFDQ$IIDLUV&RPPLVVLRQThe JRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUVDQGUHFRPPHQGVWRWDOIXQGLQJRIPLOOLRQRI ZKLFKPLOOLRQLVJHQHUDOIXQG

Streamlined Procedures are Reducing Complaint Investigation Timeframes 350

300

300

277

271 250

247 211

200

150

100

50

0 FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

Average Number of Days to Complete an Investigation


7KHJRYHUQRU·VUHFRPPHQGDWLRQVXSSRUWVFRQWLQXDWLRQRIWDUJHWHGLQLWLDWLYHVGHVLJQHGWR strengthen outreach and educational efforts in local communities. One such effort is the Advocates and Leaders for Police and Community Trust (ALPACT) which brings state, federal and local law enforcement leaders together with community and religious leaders to address trust issues between police and communities they serve. Successful operation of ALPACT is underway in Detroit, Flint, Saginaw, Grand Rapids, and Benton Harbor. The ÀVFDO\HDUEXGJHWSURYLGHVJHQHUDOIXQGWRH[SDQGWKH$/3$&7LQLWLDWLYHWR additional cities.

CIVIL RIGHTS


B-9

$GGLWLRQDOIXQGLQJRILVSURYLGHGIRUWKH0LFKLJDQ$OOLDQFH$JDLQVW+DWH&ULPHV (MIAAHC). MIAAHC is a statewide coalition of federal, state, and local law enforcement agencies, civil rights organizations, community-based groups, educators and anti-violence advocates working to ensure an effective response to hate crimes and bias incidents. The organization is currently focused on developing community response systems throughout the state.

7KHGHSDUWPHQWVXSSRUWVDQWLEXOO\LQJHIIRUWVLQHLJKWFRPPXQLWLHVDURXQGWKHVWDWH 7KHJRYHUQRUUHFRPPHQGVDQLQFUHDVHRIWRH[SDQGWKHVHHIIRUWVWRDGGLWLRQDO communities. 0'&5PHWULF/DQG/

7KH([HFXWLYH5HFRPPHQGDWLRQDGGVJHQHUDOIXQGWRH[SDQGWKHFXVWRPHULQWDNH unit. These funds will enhance services for all initial customer contacts, while continuing to improve the timeliness of investigations. 0'&5PHWULF&DQG&

7KHJRYHUQRUUHFRPPHQGVWUDQVIHUULQJJHQHUDOIXQG IRUWKH$PHULFDQV with Disabilities Act state coordinator and staff from the Department of Technology, 0DQDJHPHQWDQG%XGJHWWRWKH'HSDUWPHQWRI&LYLO5LJKWV7KLVRIÀFHVHUYHVDVWKHVWDWH·V primary monitoring agent and liaison with state agencies to ensure compliance with state and federal disability rights laws.

CIVIL RIGHTS

B-10


Governor's Recommendation Department of Civil Rights ($ in Thousands) FY2014 Current Law



All Funds

GF/GP


All Funds

GF/GP

All Funds

$12,337.5

$15,198.3

$13,573.2

$16,769.2

$13,573.2

$16,769.2

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$12,337.5

$15,198.3

$13,573.2

$16,769.2

$13,573.2

$16,769.2

Ongoing Funding

10.0%

10.3%

0.0%

0.0%

One-Time Funding

0.0%

0.0%

0.0%

0.0%

Total Funding

10.0%

10.3%

0.0%

0.0%

$12,912.5

$16,093.5

$12,912.5

$16,093.5

$660.7

$675.7

$660.7

$675.7

$13,573.2

$16,769.2

$13,573.2

$16,769.2

None

$0.0

$0.0

$0.0

$0.0


$0.0

$0.0

$0.0

$0.0

$13,573.2

$16,769.2

$13,573.2

$16,769.2



Programs

Civil Rights Operations Information Technology



CIVIL RIGHTS


B-11

CIVIL RIGHTS

B-12


Community Colleges

A

key component of Michigan’s education system, Michigan’s 28 community colleges provide over 449,000 students with affordable access to postsecondary education opportunities. These institutions are integral to attaining the governor’s goal of ensuring that at least 60 percent of Michigan residents have high-quality skills training, a degree or other credential by 2025. 7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUUHFRPPHQGVWRWDOIXQGLQJ RIPLOOLRQRIZKLFKPLOOLRQLVJHQHUDOIXQG7KHUHFRPPHQGDWLRQIRUÀVFDO\HDULV $390.2 million, of which $192.6 million is general fund. Highlights of Governor’s Budget Recommendation

&RPPXQLW\FROOHJHVUHFHLYHDQLQFUHDVHRISHUFHQWLQWRWDOIXQGLQJRYHUÀVFDO\HDU 6LQFH*RYHUQRU6Q\GHUFDPHLQWRRIÀFHFRPELQHGRSHUDWLRQVDQGUHWLUHPHQW funding for community colleges Community Colleges Funding ($ in thousands) has increased by over $72 Community FY14 FY15 Percent million, an increase of almost 25 College Payments Payments* Increase percent. Alpena Bay de Noc Delta Glen Oaks Gogebic Grand Rapids Henry Ford Jackson Kalamazoo Valley Kellogg Kirtland Lake Michigan Lansing Macomb Mid Michigan Monroe County Montcalm Mott Muskegon North Central MI Northwestern MI Oakland St. Clair County Schoolcraft Southwestern MI Washtenaw Wayne County West Shore Total:

$5,236.5 5,279.3 14,063.5 2,441.5 4,330.3 17,454.9 21,060.0 11,758.2 12,122.5 9,522.0 3,055.7 5,178.1 30,023.7 31,931.2 4,517.9 4,342.6 3,121.2 15,247.1 8,653.5 3,064.4 8,825.3 20,483.1 6,860.1 12,112.2 6,404.3 12,610.8 16,194.3 2,349.8 $298,244.0

$5,390.7 5,419.5 14,498.9 2,516.1 4,451.4 17,947.5 21,623.8 12,087.3 12,503.1 9,813.5 3,167.7 5,342.9 30,877.6 32,816.6 4,682.0 4,492.9 3,226.7 15,686.1 8,901.0 3,172.4 9,078.8 21,123.3 7,061.6 12,513.7 6,576.4 13,077.3 16,727.6 2,414.9 $307,191.3

2.9% 2.7% 3.1% 3.1% 2.8% 2.8% 2.7% 2.8% 3.1% 3.1% 3.7% 3.2% 2.8% 2.8% 3.6% 3.5% 3.4% 2.9% 2.9% 3.5% 2.9% 3.1% 2.9% 3.3% 2.7% 3.7% 3.3% 2.8% 3.0%

7KLVSURSRVHGEXGJHWLQYHVWV an additional $8.9 million general fund in community college operations funding, a 3 percent average increase that brings total operations funding to $307.2 million. The increase is distributed through the funding IRUPXODDGRSWHGLQWKHÀVFDO \HDUEXGJHWSURYLGLQJ long-term planning stability to community colleges. The formula distributes half of new funding as an across-the-board increase. The other half of new funding is distributed based on the following performance metrics: weighted degree DQGFHUWLÀFDWHFRPSOHWLRQV enrollment, administrative costs as a percentage of core expenditures, and best practices that enhance local strategic value. In order to receive this * Assumes all colleges qualify for performance funding additional funding, community and local strategic value funding. colleges will be required to limit any tuition increases to 3.2 SHUFHQWRUOHVVGRXEOHWKHUDWHRILQÁDWLRQ(Michigan Education Dashboard)

COMMUNITY COLLEGES


B-13

$VSDUWRIUHFHQWUHIRUPVLQWKH0LFKLJDQ3XEOLF6FKRRO(PSOR\HHV5HWLUHPHQW6\VWHPWKH community college contribution rate for unfunded accrued liabilities was capped at the ÀVFDO\HDUOHYHO7KHVWDWHSD\VWKHDPRXQWRYHUWKHFDS7RIXUWKHUOHVVHQWKHEXUGHQ of retirement costs on community colleges, the governor proposes an additional reduction in the amount community colleges will contribute by increasing the state’s contribution. The budget increases the state’s payments for retirement liabilities by $27.7 million, bringing the total state support for the community colleges’ retirement obligations to $60.8 PLOOLRQLQÀVFDO\HDU7KHÀVFDO\HDUEXGJHWDVVXPHVDQDGGLWLRQDOLQFUHDVHRI PLOOLRQIRUDWRWDORIPLOOLRQ

6WDWH%XLOGLQJ$XWKRULW\UHQWSD\PHQWVRIPLOOLRQDOOJHQHUDOIXQGVXSSRUWGHEW service for recently constructed community college building projects.

COMMUNITY COLLEGES

B-14


Governor's Recommendation Community Colleges ($ in Thousands) FY2014 Current Law

GF/GP Ongoing Funding One-Time Funding Total Funding

School Aid


All Funds

GF/GP

School Aid


All Funds

GF/GP

School Aid

All Funds

$137,263.5

$197,614.1

$334,877.6

$173,910.8

$197,614.1

$371,524.9

$192,610.8

$197,614.1

$1,100.0

$0.0

$1,100.0

$0.0

$0.0

$0.0

$0.0

$0.0

$390,224.9 $0.0

$138,363.5

$197,614.1

$335,977.6

$173,910.8

$197,614.1

$371,524.9

$192,610.8

$197,614.1

$390,224.9


26.7%

0.0%

10.9%

10.8%

0.0%

5.0%

-100.0%

0.0%

-100.0%

0.0%

0.0%

0.0%

25.7%

0.0%

10.6%

10.8%

0.0%

5.0%

$102,363.5

$195,880.5

$298,244.0

$111,310.8

$195,880.5

$307,191.3

$59,100.0

$1,733.6

$60,833.6

$77,800.0

$1,733.6

$79,533.6

Community College Performance Funding

$8,947.3

$0.0

$8,947.3

$0.0

$0.0

$0.0

Renaissance Zone Tax Reimbursements

$3,500.0

$0.0

$3,500.0

$3,500.0

$0.0

$3,500.0

$173,910.8

$197,614.1

$371,524.9

$192,610.8

$197,614.1

$390,224.9

None

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0


$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$173,910.8

$197,614.1

$371,524.9

$192,610.8

$197,614.1

$390,224.9


Programs

Community College Operations MPSERS Retirement Contributions



COMMUNITY COLLEGES


B-15

COMMUNITY COLLEGES

B-16


Department of Community Health

T

he Department of Community Health (DCH) is responsible for health policy and management of the state’s publicly funded health care systems. These programs include Medicaid health coverage for those with limited incomes; mental health services for people who have a mental illness or developmental disability; services for individuals who need substance abuse treatment; and services provided through local public health programs. The department also provides services to promote the independence and preserve the dignity of Michigan’s elderly through the 2IÀFHRI6HUYLFHVWRWKH$JLQJ7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUUHFRPPHQGVWRWDO funding of $17.4 billion, of which $2.9 billion is general fund. This includes one-time funding of $14.1 PLOOLRQJHQHUDOIXQG7KHUHFRPPHQGDWLRQIRUÀVFDO\HDULVELOOLRQRIZKLFKELOOLRQLVJHQHUDO fund.

Medicaid makes up 90% of the DCH budget Medicaid & NonMedicaid Behaviorial Health Services 18%

Public Health / Maternal and Child Health Services 4% Administration & Information Technology 2% Children's Special Health Care Services 1% Aging / Crime Victim Services 1%

Medicaid 74%

Total: $17.4 billion

Improving Michigan’s Health Care System 7KH+HDOWK\0LFKLJDQ3ODQ0LFKLJDQ·V0HGLFDLGUHIRUPZLOOEHHIIHFWLYH$SULOVW:LWK VXSSRUWIURPWKHOHJLVODWXUHWKLVVLJQLÀFDQWJXEHUQDWRULDOLQLWLDWLYHZLOOSURYLGHKHDOWKFDUH WRRYHULQGLYLGXDOVZKRDUHFXUUHQWO\XQLQVXUHG7KHVHLQGLYLGXDOVZLOOKDYHDFFHVVWR routine and preventive medical care improving health outcomes and reducing uncompensated costs for health care providers.

Healthy Michigan Plan recipients will participate in their health care through various cost-sharing arrangements including health savings accounts. Cost-sharing will promote personal investment in health care decisions and outcomes and are a key component of Michigan’s Medicaid reform initiative.

Federal approval of the waiver required to carry out the Healthy Michigan Plan was JUDQWHGRQ'HFHPEHU7KLVZDLYHUDOORZV0LFKLJDQWRLPSOHPHQWWKHLQQRYDWLYH and individualized features of this important health care initiative. COMMUNITY HEALTH


B-17

0LFKLJDQZLOOUHDOL]HJHQHUDOIXQGVDYLQJVRIPLOOLRQLQÀVFDO\HDUEHFDXVH Healthy Michigan will cover expenses that are currently paid by the state for individuals ZKRDUHQRW0HGLFDLGHOLJLEOH7KHJRYHUQRUUHFRPPHQGVWKDWKDOIRIWKHVHVDYLQJV PLOOLRQ EHUHVHUYHGLQD+HDOWK6DYLQJV6XEIXQGRIWKH%XGJHW6WDELOL]DWLRQ)XQGWRKHOS cover state health care costs in future years.

Strengthening Mental Health Services The governor’s continuing support for providing and coordinating mental health services is UHÁHFWHGLQÀVFDO\HDUEXGJHWLQLWLDWLYHVWKDWLPSOHPHQWWKHÀQGLQJVRIWKH0HQWDO+HDOWK DQG:HOOQHVV&RPPLVVLRQDQGWKH'LYHUVLRQ&RXQFLO7KHSHUVRQDODQGVRFLHWDOORVVHVIURP undiagnosed and untreated mental health disorders are costly and unnecessary. Implementing these recommendations will contribute to integrated and coordinated mental health services that are consumer-friendly and readily available.

7KH0HQWDO+HDOWKDQG:HOOQHVV&RPPLVVLRQFDOOVIRUDQLQWHJUDWHGV\VWHPRIPHQWDO health services that are coordinated, easily accessible and adequately staffed. The JRYHUQRU·VÀVFDO\HDUEXGJHWLQYHVWVPLOOLRQJHQHUDOIXQGLQWKH'HSDUWPHQW of Community Health to begin implementation of these important recommendations in SDUWQHUVKLSZLWKWKHGHSDUWPHQWVRI+XPDQ6HUYLFHV&RUUHFWLRQV(GXFDWLRQ0LOLWDU\DQG 9HWHUDQV$IIDLUVWKH0LFKLJDQ6WDWH+RXVLQJ'HYHORSPHQW$XWKRULW\DQGWKH0LFKLJDQ 6WUDWHJLF)XQG'&+PHWULF,PSURYH3RSXODWLRQ+HDOWK)

The Diversion Council action plan supports funding to divert individuals with serious mental illness or developmental disabilities from the criminal justice system. These individuals can be served more effectively and at less cost when they are not incarcerated. 7KH'HSDUWPHQWRI&RPPXQLW\+HDOWKEXGJHWIRUÀVFDO\HDULQFOXGHVPLOOLRQ general fund to support crisis intervention teams, in-jail mental health treatment and data collection and analysis. Funding to provide additional Diversion Council recommended services is included in the budgets for the Department of Corrections and the Judiciary. ('&+PHWULF7UDQVIRUP6\VWHPRI&DUH)

Enhancing Senior Services 2OGHU$PHULFDQVUHSUHVHQWWKHIDVWHVW “… one of the things we want to do is create independence for our growing segment of our population. VHQLRUVDOORZWKHPWRVWD\DWKRPH«ZH·UHQRWKHOSLQJZLWKWKDW ,Q0LFKLJDQSHUFHQWRIWKH VLWXDWLRQEHFDXVHZHKDYHZDLWLQJOLVWV«ZKHQ,GRP\EXGJHW PHVVDJH,·PJRLQJWRDVNIRUDGGLWLRQDOUHVRXUFHVVRZHFDQPDNH SRSXODWLRQLV\HDUVDQGROGHU Michigan a no-wait state for in-home services for our seniors.” LQFUHDVLQJWRSHUFHQWE\ Providing services to help seniors Governor Rick Snyder, State of the State Address, maintain their health and well-being in January 16, 2014 the least restrictive living arrangement is a priority for this administration. ,QYHVWPHQWVLQWKHÀVFDO\HDU budget to support senior services include funding for the following programs. COMMUNITY HEALTH

B-18


7KHJRYHUQRU·VEXGJHWVXSSRUWVPLOOLRQJHQHUDOIXQGWRHOLPLQDWHWKHZDLWLQJOLVWIRU seniors who qualify for home-delivered meals and in-home services. These services are FRRUGLQDWHGDQGGHOLYHUHGE\$UHD$JHQFLHVRQ$JLQJWKURXJKRXWWKHVWDWH%HFRPLQJD “no wait state” will provide meals-on-wheels and in-home support services to an estimated VHQLRUVRQWKHFXUUHQWZDLWLQJOLVWV7KLVLQYHVWPHQWZLOOLPSURYHQXWULWLRQDQG provide services for Michigan’s vulnerable seniors and allow them to live at home. ('&+ PHWULF,PSURYH3RSXODWLRQ+HDOWK)

7RKHOSSUHYHQWHOGHUDEXVHPLOOLRQJHQHUDOIXQGLVLQFOXGHGLQWKH([HFXWLYH Recommendation. These funds will provide education to increase awareness of physical DQGÀQDQFLDODEXVHLVVXHVDQGSURYLGHWUDLQLQJWRPHGLFDODQGÀQDQFLDOSURIHVVLRQDOVRQ identifying and reporting elder abuse. ('&+PHWULF,PSURYH3RSXODWLRQ+HDOWK)

7RVXSSRUWYXOQHUDEOHVHQLRUVLQWKHLURZQKRPHVPLOOLRQPLOOLRQJHQHUDO IXQG LVWUDQVIHUUHGIURPQXUVLQJKRPHIXQGLQJDQGLQYHVWHGLQWKH3URJUDPIRU$OO ,QFOXVLYH&DUHIRUWKH(OGHUO\3$&( &XUUHQW3$&(VLWHVDUHLQ:D\QH.HQW0XVNHJRQ &DOKRXQ%HUULHQDQG:DVKWHQDZFRXQWLHV7KHJRYHUQRU·VUHFRPPHQGDWLRQH[SDQGV 3$&(WRDGGLWLRQDOVLWHVLQ0XVNHJRQFRXQW\DQGQHZFRXQW\VLWHVLQ*HQHVHH6DJLQDZ DQG,QJKDP3$&(SURYLGHVVHUYLFHVWRWKRVHRUROGHUZKRQHHGQXUVLQJFDUHZKLOH DOORZLQJWKHPWRUHPDLQRXWRIQXUVLQJKRPHVDWDORZHUFRVW6XSSRUWLQJ3$&(ZLWK nursing home savings incurs no additional cost to the state. ('&+PHWULF,PSURYH3RSXODWLRQ +HDOWK)

7KH0,&KRLFHZDLWLQJOLVWLVHOLPLQDWHGZLWKDQLQYHVWPHQWRIPLOOLRQPLOOLRQ general fund). MIChoice is a home-based program that provides services to those who are nursing home eligible while they remain in their own homes or community based settings. 7KLVH[SDQVLRQSURYLGHVSURJUDPFDSDFLW\IRUDQDGGLWLRQDOLQGLYLGXDOV

Michigan's Medicaid Caseload has Leveled Off the Healthy Michigan Plan will Cover an Additional 400,000 Individuals 2,400,000

Healthy Michigan Plan Population

2,200,000

450,000

400,000 2,000,000

Current Medicaid Caseload

214,000

1,800,000 1,600,000 1,400,000 1,661,400 1,200,000

1,840,800

1,800,400

1,841,700

1,874,900

1,817,700

1,823,700

1,766,800

1,563,100

1,000,000 2008

2009

2010

2011

2012

2013

2014 est

2015 rec

2016 rec

COMMUNITY HEALTH


B-19

Other Highlights of the Governor’s Budget Medical Services

The governor continues strong support for Michigan’s health care safety net in his budget UHFRPPHQGDWLRQ7KH'HSDUWPHQWRI&RPPXQLW\+HDOWKEXGJHWUHFRPPHQGVELOOLRQ ELOOLRQJHQHUDOIXQG IRUPHGLFDOVHUYLFHVDQGELOOLRQPLOOLRQJHQHUDO IXQG IRUWKHORQJWHUPFDUHSRUWLRQRIWKH0HGLFDLGSURJUDP7KLVUHSUHVHQWVDSHUFHQW LQFUHDVHRYHUÀVFDO\HDUGXHWRFDVHORDGLQFUHDVHVXWLOL]DWLRQDQGLQÁDWLRQVSHFLDO provider payments and funding for actuarial soundness. Medicaid provides health care VHUYLFHVIRURQHRXWRIHYHU\ÀYH0LFKLJDQUHVLGHQWV'&+PHWULF,PSURYH3RSXODWLRQ +HDOWK)

Michigan’s success in improving dental care and oral health outcomes for children is FRQWLQXHGE\LQYHVWLQJPLOOLRQJURVVPLOOLRQJHQHUDOIXQG LQWKHH[SDQVLRQRI +HDOWK\.LGV'HQWDOWRFKLOGUHQLQ.DODPD]RRDQG0DFRPEFRXQWLHV:LWKWKLV H[SDQVLRQRYHUFKLOGUHQZLOOEHFRYHUHGLQRXWRIFRXQWLHV)XOOVWDWHZLGH SKDVHLQZLOOEHFRPSOHWHGZLWKLQWKHQH[WVHYHUDO\HDUV+HDOWK\.LGV'HQWDOLQFUHDVHV provider reimbursement rates, encourages provider participation and insures that children receive good dental care. ('&+PHWULF+HDOWK2XWFRPHV)

7KH'HSDUWPHQWRI&RPPXQLW\+HDOWKEXGJHWLQYHVWVPLOOLRQPLOOLRQJHQHUDO fund) to support Medicaid reimbursement rates to primary care physicians. These funds help insure provider access and contribute to achieving positive health outcomes for Medicaid recipients. ('&+PHWULF,PSURYH3RSXODWLRQ+HDOWK)

$QLQYHVWPHQWRIPLOOLRQJHQHUDOIXQGWR0LFKLJDQ6WDWH8QLYHUVLW\:HVWHUQ0LFKLJDQ 8QLYHUVLW\DQG(DVWHUQ0LFKLJDQ8QLYHUVLW\VXSSRUWVDXWLVPSURJUDPVDQGVHUYLFHV These funds will be used to increase the number of trained service providers so that autism services are more readily available. ('&+PHWULF+HDOWK2XWFRPHV)

Public Health Services/Crime Victim Services

7KHJRYHUQRU·VEXGJHWLQFOXGHVPLOOLRQJHQHUDOIXQGWRH[SDQGWKH0LFKLJDQ+RPH 9LVLWDWLRQ,QLWLDWLYHLQWRUXUDODUHDVLQWKH8SSHU3HQLQVXODDQGQRUWKHUQ/RZHU3HQLQVXOD 7KLVH[SDQVLRQZLOOWDUJHWSUHJQDQWZRPHQDQGIDPLOLHVZLWKFKLOGUHQDJHDQG\RXQJHU at risk for poor birth and health outcomes. ('&+PHWULF,PSURYH3RSXODWLRQ+HDOWK)

$&KLOGDQG$GROHVFHQW+HDOWK6HUYLFHVSLORWSURJUDPLVVXSSRUWHGZLWKPLOOLRQJHQHUDO fund. This pilot will work with existing school clinics to develop satellite locations that focus on providing nursing and behavioral health services. ('&+PHWULF,PSURYH3RSXODWLRQ +HDOWK)

7KHJRYHUQRU·VEXGJHWLQFOXGHVDQDGGLWLRQDOPLOOLRQJHQHUDOIXQGLQ&ULPH9LFWLP·V 5LJKWVJUDQWVWREHGLVWULEXWHGWRSURVHFXWLQJDWWRUQH\RIÀFHVWKURXJKRXWWKHVWDWH7KHVH funds will be used to reduce backlogs for crime victim services and increase the number of people served by the program.

COMMUNITY HEALTH

B-20


Governor's Recommendation Department of Community Health ($ in Thousands) FY2014 Current Law



GF/GP

All Funds

GF/GP

$2,904,972.1

$15,355,409.4

$2,924,876.5

$17,360,475.5

$2,978,509.7

$17,516,114.6

($157,388.5)

$1,579,144.2

$14,092.3

$14,092.3

$0.0

$0.0

$2,747,583.6

$16,934,553.6

$2,938,968.8

$17,374,567.8

$2,978,509.7

$17,516,114.6

Ongoing Funding

0.7%

13.1%

1.8%

0.9%

One-Time Funding

-109.0%

-99.1%

-100.0%

-100.0%

7.0%

2.6%

1.3%

0.8%

Medicaid

$1,544,200.5

$12,808,692.9

$1,597,833.7

$12,964,332.0

Behavioral Health / Substance Abuse Services

$1,025,956.6

$2,919,463.7

$1,025,956.6

$2,919,463.7

Public Health / Maternal and Child Health Services

$73,342.4

$614,399.1

$73,342.4

$614,399.1

Administration / Information Technology

$87,479.5

$401,663.2

$87,479.5

$401,663.2

State Psychiatric Hospitals / Forensic Center

$67,152.3

$280,707.4

$67,152.3

$280,707.4

Children's Special Health Care Services

$90,933.4

$202,058.5

$90,933.4

$202,058.5

Office of Services to the Aging

$35,811.8

$99,492.6

$35,811.8

$99,492.6

$0.0

$33,998.1

$0.0

$33,998.1

$2,924,876.5

$17,360,475.5

$2,978,509.7

$17,516,114.6

Mental Health Commission Recommendations

$5,000.0

$5,000.0

$0.0

$0.0

Dental Clinic Program

$4,092.3

$4,092.3

$0.0

$0.0

University Autism Programs

$3,000.0

$3,000.0

$0.0

$0.0

Child and Adolescent Health Services

$2,000.0

$2,000.0

$0.0

$0.0

$14,092.3

$14,092.3

$0.0

$0.0

$2,938,968.8

$17,374,567.8

$2,978,509.7

$17,516,114.6

Ongoing Funding One-Time Funding Total Funding

All Funds

GF/GP

All Funds


Total Funding

Programs

Crime Victim Services Commission




COMMUNITY HEALTH


B-21

COMMUNITY HEALTH

B-22


Department of Corrections

T

he Department of Corrections (MDOC) contributes to public safety by providing custody and care for incarcerated felons while maintaining oversight and supervision of parolees and felony probationers. 7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUDQGUHFRPPHQGVWRWDO funding of $2.05 billion of which $1.99 billion is general fund. The governor also recommends $26.5 million LQRQHWLPHVSHQGLQJLQÀVFDO\HDU

Nearly 80% of Corrections Costs are in Prison Operations

Administration 7%

Prison Operations 78%

Parole, Probation & Community Services 15%

Total: $2 billion

Highlights of the Governor’s Budget Recommendation

7KH([HFXWLYH%XGJHWLQFOXGHVELOOLRQWRRSHUDWHDVDIHDQGVHFXUHSULVRQV\VWHPWKDW FXUUHQWO\KRXVHVSULVRQHUV2YHUDOOWKHGHSDUWPHQW·VEXGJHWUHPDLQVÁDWGHVSLWH increases in collectively bargained employee costs. Governor Snyder remains committed to tightly controlling corrections costs.

,PSOHPHQWDWLRQRIWKH+HDOWK\0LFKLJDQ3ODQLQ$SULOZLOOLPSURYHDFFHVVWRKHDOWK FDUHIRUORZLQFRPHUHVLGHQWV8QGHUWKH+HDOWK\0LFKLJDQ3ODQLWLVDQWLFLSDWHGWKDW most inpatient hospitalization for prisoners will be covered by Medicaid. Certain services for mentally ill and medically fragile parolees, along with some services for re-entry DVVHVVPHQWVZLOODOVREHFRYHUHG)XOO\HDUJHQHUDOIXQGVDYLQJVRIPLOOLRQDUH LQFOXGHGLQWKH([HFXWLYH5HFRPPHQGDWLRQIRUÀVFDO\HDU

7KHJRYHUQRU·VEXGJHWLQFOXGHVPLOOLRQLQIXQGLQJIRUSDUROHSUREDWLRQDQG community programs that provide cost-effective local alternatives to more costly incarceration in the state’s prison system. The department supervises more than 47,000 RIIHQGHUVRQIHORQ\SUREDWLRQDQGPRUHWKDQRIIHQGHUVRQSDUROH)RUSDUROHDQG probation agents, focusing more work time in the community on a daily basis contributes WRVDIHUFRPPXQLWLHV7KH([HFXWLYH5HFRPPHQGDWLRQLQFOXGHVWKHDGGLWLRQRIPLOOLRQ RIZKLFKLVRQHWLPHWRGHSOR\GHYLFHVVXFKDVVPDUWSKRQHVWDEOHWVDQGODSWRSV WRPRELOL]HVWDIILQ'HWURLW3RQWLDF6DJLQDZDQG)OLQWMDOC metric 04, 10) CORRECTIONS


B-23

7KHGHSDUWPHQWZRUNVWRFRQWLQXRXVO\LPSURYHSULVRQHUUHHQWU\SURJUDPVWRKHOS FRQWULEXWHWRVXFFHVVIXOUHWXUQVWRWKHFRPPXQLW\7KH([HFXWLYH5HFRPPHQGDWLRQ LQFOXGHVDQLQYHVWPHQWRIPLOOLRQRIZKLFKPLOOLRQLVRQHWLPHWRHQKDQFHSULVRQHU education services. This new initiative will institute demand-driven vocational programs to prepare parolees to enter the workforce in areas in need of skilled workers. This initiative will also provide employment counselors to work with employers, implement curricula and training, and connect trained offenders with employers prior to release. The program will also work with local colleges to provide instruction inside prison. (MDOC metric 06, FOA-OPPS-06)

Prison Population Has Stabilized in the Last Three Years 55,000 51,500 50,200

50,000

49,400

48,700

48,600

45,500

45,000

44,100 42,900

43,600

43,700

2012

2013

40,000

35,000

30,000 2004

2005

2006

2007

2008

2009

2010

2011

2YHUGHSDUWPHQWVWDIIZRUNLQWKHÀHOGVRIKHDOWKFDUHPHQWDOKHDOWKFDUHGHQWLVWU\ DQGRSWRPHWU\7KHJRYHUQRU·VEXGJHWDGGVWRHQKDQFHSURIHVVLRQDOGHYHORSPHQW DQGWUDLQLQJIRUDOOKHDOWKFDUHVWDII$GGLWLRQDOWUDLQLQJZLOOLPSURYHSDWLHQWKHDOWK outcomes while also improving staff morale and retention. (MDOC metric BHCS-01, BHCS-06)

*RYHUQRU6Q\GHUFUHDWHGWKH0HQWDO+HDOWK'LYHUVLRQ&RXQFLOWRLPSURYHHIIRUWVWRGLYHUW individuals with mental illness from criminal justice involvement to appropriate treatment. Several state agencies, including the Department of Corrections, will contribute to these HIIRUWV7KH([HFXWLYH5HFRPPHQGDWLRQLQFOXGHVDQLQYHVWPHQWRIPLOOLRQJHQHUDOIXQG for the department to contract for a pilot program in a local jail to arrange for appropriate mental health services when jail inmates return to the community.

CORRECTIONS

B-24


'HVSLWHRYHUDOOGHFOLQHVLQSULVRQSRSXODWLRQWKHQXPEHURIHOGHUO\LQPDWHVKRXVHGE\ WKHGHSDUWPHQWKDVLQFUHDVHGE\SHUFHQW*RYHUQRU6Q\GHUSURSRVHVDFDSLWDORXWOD\ VXSSOHPHQWDOLQÀVFDO\HDUWRFRPPHQFHSODQQLQJIRUUHIXUELVKPHQWRIWKH*5REHUW Cotton Correctional Facility in Jackson to provide specialized housing units for older and medically fragile inmates. The conversion will require the renovation of three housing units to meet requirements for accessibility, mobility, and medical care for this inmate population. The department proposes housing elderly and medically fragile inmates at WKLVIDFLOLW\IRUFORVHDFFHVVWRWKHGHSDUWPHQW·V'XDQH:DWHUV+HDOWK&HQWHUDVZHOODV SUR[LPLW\WRVHFXUHKRVSLWDOXQLWVORFDWHGLQ-DFNVRQDQG/DQVLQJ+RXVLQJWKLVSRSXODWLRQ centrally will help control costs while providing a high level of care. (MDOC metric BHCS01)

CORRECTIONS


B-25

Governor's Recommendation Department of Corrections ($ in Thousands) FY2014 Current Law


$1,973,233.3


All Funds

GF/GP

$2,047,614.3

($15,179.7) $1,958,053.6


($15,179.7) $2,032,434.6


All Funds

GF/GP

All Funds

$1,963,712.5

$2,023,435.8

$1,963,712.5

$2,023,435.8

$26,485.9

$26,485.9

$0.0

$0.0

$1,990,198.4

$2,049,921.7

$1,963,712.5

$2,023,435.8

-0.5%

-1.2%

0.0%

0.0%

% Change from Previous Year Ongoing Funding One-Time Funding

N/M

N/M

-100.0%

-100.0%

Total Funding

1.6%

0.9%

-1.3%

-1.3%

$1,562,390.3

$1,600,915.5

$1,562,390.3

$1,600,915.5

$301,388.4

$310,183.9

$301,388.4

$310,183.9

$99,933.8

$112,336.4

$99,933.8

$112,336.4

$1,963,712.5

$2,023,435.8

$1,963,712.5

$2,023,435.8

$25,000.0

$25,000.0

$0.0

$0.0

$1,045.3

$1,045.3

$0.0

$0.0

$440.6

$440.6

$0.0

$0.0

$26,485.9

$26,485.9

$0.0

$0.0

$1,990,198.4

$2,049,921.7

$1,963,712.5

$2,023,435.8

Programs Prison Operations Parole, Probation, and Community Services Administration

Total Ongoing Recommendation Neal Lawsuit Settlement - Final Payment Prisoner Education Enhancement Mobilize Parole / Probation Staff


TOTAL RECOMMENDATION CORRECTIONS

B-26


Department of Education

L

eadership for Michigan’s public education system is vested by the state Constitution in the elected members of the State Board of Education and the Superintendent of Public Instruction. 7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUUHFRPPHQGVWRWDORQJRLQJIXQGLQJRIPLOOLRQRI ZKLFKPLOOLRQLVJHQHUDOIXQG7KHJRYHUQRUDOVRUHFRPPHQGVLQRQHWLPHVSHQGLQJLQÀVFDO \HDU7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUUHFRPPHQGVWRWDORQJRLQJIXQGLQJRI PLOOLRQRIZKLFKPLOOLRQLVJHQHUDOIXQG

Over 55 Percent of the Department Budget Supports Early Childhood Programs Library Services 9%

Leadership and Administration 10%

Michigan Schools for the Deaf and Blind 4%

School Support Services 14% Student Assessment 6%

Office of Great Start Early Childhood Programs 57%



%DVHGRQUHFRPPHQGDWLRQVGHYHORSHGE\WKH0LFKLJDQ&RXQFLOIRU(GXFDWRU(IIHFWLYHQHVV WKHJRYHUQRU·VEXGJHWSURYLGHVPLOOLRQRQJRLQJDQGRQHWLPHJHQHUDOIXQGWR implement educator evaluations for teachers and administrators across the state. Along ZLWKVWDIÀQJIXQGLQJLQWKHGHSDUWPHQWEXGJHWZLOOEHXVHGIRUFRPSOLDQFHPRQLWRULQJ DQGLQIRUPDWLRQWHFKQRORJ\V\VWHPVPRGLÀFDWLRQV

7KH([HFXWLYH%XGJHWLQFOXGHVJHQHUDOIXQGLQWKH'HSDUWPHQWRI(GXFDWLRQ EXGJHWLQWDQGHPZLWKPLOOLRQJHQHUDOIXQGLQWKH'HSDUWPHQWRI7UHDVXU\EXGJHW WRHVWDEOLVKDQHZÀQDQFLDOLQGHSHQGHQFHWHDP7KLVLQWHUDJHQF\WHDPZLOOEHWDVNHG ZLWKLPSOHPHQWLQJHDUO\ZDUQLQJV\VWHPVWRLGHQWLI\VFKRROVWKDWDUHLQQHHGRIÀQDQFLDO DWWHQWLRQDQGSURYLGLQJWKHH[SHUWLVHDQGUHVRXUFHVQHHGHGWRDGGUHVVSUREOHPVEHIRUH WKHUHLVDFULVLV,QDGGLWLRQWKHJRYHUQRU·VEXGJHWSURYLGHVJHQHUDOIXQGIRU resources to help the lowest achieving schools improve their academic programs.

EDUCATION


B-27

,QWKHJRYHUQRUHVWDEOLVKHGWKH0LFKLJDQ2IÀFHRI*UHDW6WDUWWRFUHDWHDVLQJOH XQLÀHGRIÀFHIRUWKHVWDWH·VHDUO\FKLOGKRRGSURJUDPV7KH([HFXWLYH%XGJHWLQFOXGHV IXQGLQJIRUWKH2IÀFHRI*UHDW6WDUWRIPLOOLRQPLOOLRQJHQHUDOIXQG LQFOXGLQJPLOOLRQWRLQFUHDVHWKHPD[LPXPQXPEHURIUHLPEXUVDEOHKRXUVLQWKH &KLOG'HYHORSPHQWDQG&DUHSURJUDPDQGPLOOLRQWRUHLPEXUVHKLJKTXDOLW\FKLOGFDUH providers at higher hourly rates.

7KHJRYHUQRUDOVRUHFRPPHQGVJHQHUDOIXQGIRUDGGLWLRQDOUHVRXUFHVWR DGPLQLVWHUWKH*UHDW6WDUW5HDGLQHVV3URJUDPZKLFKLVVODWHGWRH[SDQGE\DQDGGLWLRQDO PLOOLRQLQÀVFDO\HDU0'(PHWULF&

$VSDUWRIUHIRUPVLQWKH0LFKLJDQ3XEOLF6FKRRO(PSOR\HHV·5HWLUHPHQW6\VWHP036(56 WKHJRYHUQRUSURSRVHVPLOOLRQJHQHUDOIXQGLQÀVFDO\HDUIRUSD\PHQWVWROLEUDULHV to pay the amount over the capped employer’s contribution rate for unfunded accrued OLDELOLWLHVLQFUHDVLQJWRPLOOLRQLQÀVFDO\HDU

EDUCATION

%


Governor's Recommendation Department of Education ($ in Thousands) FY2014 Current Law



All Funds

GF/GP


All Funds

GF/GP

All Funds

$70,893.9

$298,366.0

$84,039.0

$325,676.1

$84,639.0

$326,276.1

$0.0

$0.0

$900.0

$900.0

$0.0

$0.0

$70,893.9

$298,366.0

$84,939.0

$326,576.1

$84,639.0

$326,276.1

Ongoing Funding

18.5%

9.2%

0.7%

0.2%

One-Time Funding

0.0%

0.0%

-100.0%

-100.0%

Total Funding

19.8%

9.5%

-0.4%

-0.1%

$40,617.7

$187,820.5

$40,617.7

$187,820.5

School Support Services

$9,343.7

$45,345.1

$9,343.7

$45,345.1

Leadership and Administration

$6,490.4

$32,646.0

$6,490.4

$32,646.0

$22,301.7

$27,908.7

$22,901.7

$28,508.7

$5,285.5

$18,746.2

$5,285.5

$18,746.2

$0.0

$13,209.6

$0.0

$13,209.6

$84,039.0

$325,676.1

$84,639.0

$326,276.1

$900.0

$900.0

$0.0

$0.0

$900.0

$900.0

$0.0

$0.0

$84,939.0

$326,576.1

$84,639.0

$326,276.1



Programs Early Childhood Development Programs

Library Services Student Assessment Michigan Schools for the Deaf and Blind

Total Ongoing Recommendation Educator Evaluations



EDUCATION


%

EDUCATION

%


Department of Environmental Quality

F

unding for the Department of Environmental Quality (DEQ) supports environmental stewardship programs that restore and enhance Michigan’s environment and preserve our natural resources while supporting economic growth. 7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUV 2015 and 2016 recommends ongoing funding of $501.6 million, of which $38.4 million is general fund. In DGGLWLRQRQHWLPHIXQGLQJRIPLOOLRQJHQHUDOIXQGLVUHFRPPHQGHGIRUÀVFDO\HDU

Almost $16 Million in New Funding to Enhance the Environment and Support Economic Development Drinking Water Loan Program $2,500,000

Electronic Document Management $2,500,000

Cleanup Activities $3,014,500 Recycling Initiative $1,000,000

Compliance Assistance $1,000,000

Water Quality Initiative $3,977,200

Hazardous Waste Management Program $1,900,000



7KHÀVFDO\HDU([HFXWLYH5HFRPPHQGDWLRQIRFXVHVRQWKHJRYHUQRU·VFRPPLWPHQW to assuring Michigan’s water quality, supporting compliance assistance to minimize environmental risks, and promoting redevelopment of contaminated sites.

7KHJRYHUQRU·VUHFRPPHQGDWLRQLQFOXGHVJHQHUDOIXQGLQWKHDPRXQWRIPLOOLRQIRU support of a new water quality initiative with DEQ coordinating - in partnership with state agencies, regional communities and various stakeholders – a comprehensive water VWUDWHJ\GHVLJQHGWREXLOGKHDOWK\HFRV\VWHPV7KHIRFXVRIWKLVQHZVWUDWHJ\ZLOOLQFOXGH enhancement of a water use assessment tool, permit process improvements, provision of real-time beach monitoring, and various water quality monitoring efforts. (DEQ metric S04-12 and S02-12)

$QDGGLWLRQDOPLOOLRQJHQHUDOIXQGLVUHFRPPHQGHGIRUDVWDWHZLGHUHF\FOLQJLQLWLDWLYH 7KHGHSDUWPHQWZLOOSDUWQHUZLWKVWDNHKROGHUVLQDQHIIRUWWRLQFUHDVHWKHQXPEHURI counties providing convenient access to recycling by encouraging regional collaboration, increasing education and outreach, providing technical assistance, developing a measurement system and sustaining Michigan’s commitment to recycling. (DEQ metric C06-13) ENVIRONMENTAL QUALITY


B-31

6XSSRUWIRUHQYLURQPHQWDOFRQWDPLQDWLRQFOHDQXSZRUNDWOHDNLQJXQGHUJURXQGVWRUDJH WDQNVLWHVLVHQKDQFHGYLDDQDGGLWLRQDOPLOOLRQRIUHÀQHGSHWUROHXPIXQGV)XQGLQJLV DYDLODEOHE\UHSODFLQJPLOOLRQLQUHÀQHGSHWUROHXPIXQGFXUUHQWO\IXQGLQJGHEWVHUYLFH SD\PHQWVLQWKH'HSDUWPHQWRI7UHDVXU\ZLWKDQHTXDODPRXQWRIJHQHUDOIXQG:LWKWKH additional funding support, there will be an increase in the percentage of orphan sites that meet risk reductions goals. (DEQ metric S15-13)

)XQGLQJLVSURYLGHGWRH[SDQGFRPSOLDQFHDVVLVWDQFHHIIRUWVLQFOXGLQJSURYLGLQJVXSSRUW DQGWHFKQLFDODVVLVWDQFHWREXVLQHVVDQGLQGXVWU\WKURXJKRXWWKHVWDWH$QDGGLWLRQDO million general fund supports this effort. (DEQ metric C01-12 and C02-14)

7KHJRYHUQRULQFOXGHVPLOOLRQJHQHUDOIXQGWRPDLQWDLQWKHH[LVWLQJKD]DUGRXVZDVWH management program. Funding will allow the department to continue to oversee the licensing, compliance, cleanup, and closure of sites operated as hazardous waste treatment and disposal facilities along with the licensing of hazardous waste transporters. (DEQ metric S12-13)

$QDGGLWLRQDOPLOOLRQJHQHUDOIXQGLVUHFRPPHQGHGDVVWDWHPDWFKWRREWDLQIHGHUDO JUDQWGROODUVIRUWKHGULQNLQJZDWHUUHYROYLQJIXQGSURJUDP7KHDGGLWLRQDOIXQGLQJZLOO provide infrastructure loans to public water suppliers enabling an increased percentage of FRPPXQLWLHVWREHLQFRPSOLDQFHZLWKKHDOWKEDVHGVWDQGDUGVFRQWDLQHGLQWKH)HGHUDO6DIH 'ULQNLQJ:DWHU$FWDEQ metric S08-12)

7KHJRYHUQRUUHFRPPHQGVPLOOLRQRIRQHWLPHJHQHUDOIXQGVXSSRUWIRUDGHSDUWPHQW ZLGHHOHFWURQLFGRFXPHQWPDQDJHPHQWV\VWHPWKDWZLOOSURYLGHHIÀFLHQWDQGHIIHFWLYH access to department records resulting in improved customer service. (DEQ metric C03-13)

)LQDOO\WKHGHSDUWPHQWZLOOEHSDUWRIWKHFRRUGLQDWHGLQYDVLYHVSHFLHVLQLWLDWLYHKRXVHG LQWKH'HSDUWPHQWRI1DWXUDO5HVRXUFHVDQGZLOOIRFXVRQSUHYHQWLRQGHWHFWLRQDQG monitoring of aquatic invasive species.

ENVIRONMENTAL QUALITY

B-32


Governor's Recommendation Department of Environmental Quality ($ in Thousands) FY2014 Current Law

GF/GP


All Funds

GF/GP


All Funds

GF/GP

All Funds

Ongoing Funding

$28,104.5

$516,168.8

$38,375.9

$501,591.8

$38,375.9

$501,591.8

One-Time Funding

$1,000.0

$1,000.0

$2,500.0

$2,500.0

$0.0

$0.0

$29,104.5

$517,168.8

$40,875.9

$504,091.8

$38,375.9

$501,591.8

Total Funding


36.5%

-2.8%

0.0%

0.0%

One-Time Funding

150.0%

150.0%

-100.0%

-100.0%

Total Funding

40.4%

-2.5%

-6.1%

-0.5%

$5,000.0

$188,548.0

$5,000.0

$188,548.0

$0.0

$106,648.2

$0.0

$106,648.2

$17,944.0

$63,540.2

$17,944.0

$63,540.2

Administration

$4,524.3

$33,723.3

$4,524.3

$33,723.3

Air Quality

$4,589.2

$26,093.2

$4,589.2

$26,093.2

Municipal Assistance

$1,288.7

$22,517.0

$1,288.7

$22,517.0

Waste Management

$2,900.0

$21,300.3

$2,900.0

$21,300.3

$891.1

$19,696.9

$891.1

$19,696.9

$0.0

$12,031.9

$0.0

$12,031.9

$1,238.6

$7,492.8

$1,238.6

$7,492.8


$38,375.9

$501,591.8

$38,375.9

$501,591.8

Elecronic Document Management

$2,500.0

$2,500.0

$0.0

$0.0


$2,500.0

$2,500.0

$0.0

$0.0


$40,875.9

$504,091.8

$38,375.9

$501,591.8

Programs Local Grants and Loans Remediation and Redevelopment Water Resources

Office of the Great Lakes Oil, Gas and Mineral Services Environmental Assistance



B-33


B-34


([HFXWLYH2IÀFH

T

KH([HFXWLYH2IÀFHLVWKH2IÀFHRIWKH*RYHUQRU7KHEXGJHWSURYLGHVIXQGLQJIRU WKHJRYHUQRUDQGKLVLPPHGLDWHVWDIIZKRDVVLVWKLPLQH[HFXWLQJKLVFRQVWLWXWLRQDO UHVSRQVLELOLWLHVDVFKLHIH[HFXWLYHRIWKH6WDWHRI0LFKLJDQ7KH([HFXWLYH2IÀFHDOVRLQFOXGHV IXQGLQJIRUWKHOLHXWHQDQWJRYHUQRU·VRIÀFH7KHOLHXWHQDQWJRYHUQRUSHUIRUPVJXEHUQDWRULDO IXQFWLRQVLQWKHJRYHUQRU·VDEVHQFHSUHVLGHVRYHUWKH6HQDWHVHUYHVRQWKH6WDWH$GPLQLVWUDWLYH %RDUGDQGUHSUHVHQWVWKHJRYHUQRUDWVHOHFWHGORFDOVWDWHDQGQDWLRQDOPHHWLQJV7KH([HFXWLYH 2IÀFHDOVRFRQWDLQVWKH&RQVWLWXHQW6HUYLFHV'LYLVLRQZKLFKVHUYHVDVDUHVRXUFHIRUWKHUHVLGHQWV RI0LFKLJDQWRFRPPXQLFDWHWKHLUFRQFHUQVDQGRSLQLRQVGLUHFWO\WRWKHJRYHUQRUThe governor’s SURSRVHGEXGJHWIRUÀVFDO\HDUVDQGUHFRPPHQGVWRWDOIXQGLQJRIPLOOLRQ Highlights of Governor’s Budget Recommendation

7KH([HFXWLYH%XGJHWSURYLGHVRYHUPLOOLRQIRUWKH2IÀFHRIWKH*RYHUQRUWKH OLHXWHQDQWJRYHUQRU·VRIÀFHDQGWKH&RQVWLWXHQW6HUYLFHV'LYLVLRQ

,QKLV6WDWHRIWKH6WDWH DGGUHVVWKHJRYHUQRUDQQRXQFHG WKHFUHDWLRQRIWKH0LFKLJDQ 2IÀFHIRU1HZ$PHULFDQV7KLV LQLWLDWLYHLVGHVLJQHGWRDWWUDFW HQWUHSUHQHXUVDQGWKHLUIDPLOLHV IURPDURXQGWKHZRUOGWROLYHDQG ZRUNLQ0LFKLJDQ$FXUUHQW\HDU VXSSOHPHQWDOUHTXHVWRI JHQHUDOIXQGDQGDÀVFDO\HDU UHTXHVWRIJHQHUDOIXQG ZLOOHQDEOHLPSOHPHQWDWLRQRIWKLV LPSRUWDQWSURJUDP

“We need to focus on legal immigration and make sure

people know Michigan is the most welcoming place, and ,·PLQWHQWRQPRYLQJIRUZDUGZLWKWKDW,IVRPHRQHKDV WKHRSSRUWXQLW\WRFRPHWRRXUFRXQWU\OHJDOO\OHW·VKROG RXUDUPVRSHQDQGVD\¶&RPHWR0LFKLJDQWKLVLVWKH SODFHWREH·µ Governor Rick Snyder, State of the State Address, January 16, 2014

EXECUTIVE OFFICE


B-35

Governor's Recommendation Executive Office ($ in Thousands) FY2014 Current Law



All Funds

GF/GP


All Funds

GF/GP

All Funds

$5,370.0

$5,370.0

$5,916.1

$5,916.1

$5,916.1

$5,916.1

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$5,370.0

$5,370.0

$5,916.1

$5,916.1

$5,916.1

$5,916.1

10.2%

10.2%

0.0%

0.0%

% Change from Previous Year Ongoing Funding One-Time Funding

0.0%

0.0%

0.0%

0.0%

Total Funding

10.2%

10.2%

0.0%

0.0%

$5,531.1

$5,531.1

$5,531.1

$5,531.1

$385.0

$385.0

$385.0

$385.0

$5,916.1

$5,916.1

$5,916.1

$5,916.1

None

$0.0

$0.0

$0.0

$0.0


$0.0

$0.0

$0.0

$0.0

$5,916.1

$5,916.1

$5,916.1

$5,916.1

Programs

Executive Office Operations Office for New Americans


TOTAL RECOMMENDATION EXECUTIVE OFFICE

B-36


Higher Education

T

he Higher Education budget provides operating support to the state’s 15 public universities DQGDOVRIXQGVVWXGHQWÀQDQFLDODLGSURJUDPV6WDWHXQLYHUVLWLHVDUHHVVHQWLDOWRWKHJRYHUQRU·V goal of ensuring that at least 60 percent of Michigan residents possess a high-quality degree or RWKHUFUHGHQWLDOE\7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUVDQGUHFRPPHQGVWRWDO funding of $1.5 billion, of which $1.2 billion is general fund. Highlights of Governor’s Budget Recommendation

KHJRYHUQRU·V([HFXWLYH%XGJHWLQYHVWVDQDGGLWLRQDOSHUFHQWRUPLOOLRQLQ 7 VWDWHXQLYHUVLW\RSHUDWLRQVDOOJHQHUDOIXQG7KLVLVWKHODUJHVWSHUFHQWDJHLQFUHDVHIRU XQLYHUVLWLHVVLQFHÀVFDO\HDUDQGSURYLGHVQHDUO\ELOOLRQLQRSHUDWLQJIXQGV

7KHXQLYHUVLW\LQFUHDVHLVGLVWULEXWHGXVLQJDPRGLÀHGYHUVLRQRIWKHSHUIRUPDQFH IXQGLQJIRUPXODDGRSWHGLQWKHEXGJHWSURYLGLQJORQJWHUPSODQQLQJVWDELOLW\WR VWDWHXQLYHUVLWLHV+DOIRIWKHQHZIXQGLQJLVGLVWULEXWHGSURSRUWLRQDOWRHDFKXQLYHUVLW\·V ÀVFDO\HDURSHUDWLRQVIXQGLQJSDUWLDOO\UHVWRULQJUHGXFWLRQVPDGHLQÀVFDO\HDU 7KHPHWULFVXVHGIRUWKHUHPDLQLQJKDOIRIQHZIXQGLQJDUHZHLJKWHGXQGHUJUDGXDWH FRPSOHWLRQVLQFULWLFDOVNLOOVDUHDVUHVHDUFKH[SHQGLWXUHV\HDUJUDGXDWLRQUDWHVWRWDO FRPSOHWLRQVDGPLQLVWUDWLYHFRVWVDVDSHUFHQWDJHRIFRUHH[SHQGLWXUHVDQGDQHZPHWULF RQWKHQXPEHURIVWXGHQWVUHFHLYLQJ3HOO*UDQWVMichigan Education Dashboard)

QLYHUVLWLHVZLOOEHUHTXLUHGWROLPLWDQ\WXLWLRQLQFUHDVHVWRSHUFHQWRUOHVVLQRUGHU 8 WRUHFHLYHDQ\QHZSHUIRUPDQFHIXQGLQJSURYLGHGLQWKLVUHFRPPHQGDWLRQ7KLVFDS UHSUHVHQWVGRXEOHWKHOHYHORIH[SHFWHGLQÁDWLRQ FY 2015 State University Funding ($ in Thousands) Operations Performance Percent University Funding Funding Increase Central Michigan University $73,540.1 $5,743.3 7.8% Eastern Michigan University 67,275.4 4,631.4 6.9% Ferris State University 45,636.5 3,554.7 7.8% Grand Valley State University 57,823.5 5,473.0 9.5% Lake Superior State University 12,231.0 568.1 4.6% Michigan State University 249,597.8 15,279.4 6.1% Michigan Technological University 43,473.8 2,523.3 5.8% Northern Michigan University 41,741.4 2,612.4 6.3% Oakland University 45,651.6 2,794.5 6.1% Saginaw Valley State University 25,991.0 1,668.1 6.4% University of Michigan - Ann Arbor 279,232.7 16,422.9 5.9% University of Michigan - Dearborn 22,510.4 1,214.5 5.4% University of Michigan - Flint 19,938.2 1,441.8 7.2% Wayne State University 183,398.3 7,336.6 4.0% Western Michigan University 97,279.0 5,628.0 5.8% Total:

$1,265,320.7

$76,892.0

6.1%

HIGHER EDUCATION


B-37

RQVLVWHQWZLWKWKHRSHUDWLRQVLQFUHDVHWKHJRYHUQRUDOVRSURSRVHVDSHUFHQWLQFUHDVH & RUDFRPELQHGPLOOLRQIRU0LFKLJDQ6WDWH8QLYHUVLW\$J%LR5HVHDUFKDQG([WHQVLRQ DOOJHQHUDOIXQG7KLVEULQJVWRWDOIXQGLQJIRUERWKSURJUDPVWRPLOOLRQ

RUÀVFDO\HDUWKHDSSURSULDWLRQIRUWKH7XLWLRQ,QFHQWLYH3URJUDP7,3 VWXGHQW ) ÀQDQFLDODLGSURJUDPLQFUHDVHVE\PLOOLRQDOOJHQHUDOIXQGEULQJLQJWRWDOIXQGLQJ IRUDOOVWXGHQWJUDQWDQGÀQDQFLDODLGSURJUDPVWRPLOOLRQ

WDWH%XLOGLQJ$XWKRULW\UHQWSD\PHQWVRIPLOOLRQDOOJHQHUDOIXQGVXSSRUWGHEW 6 VHUYLFHIRUUHFHQWO\FRQVWUXFWHGXQLYHUVLW\EXLOGLQJSURMHFWV

HIGHER EDUCATION

B-38


Governor's Recommendation Higher Education ($ in Thousands) FY2014 Current Law


School Aid

$1,132,981.4

$200,465.7


All Funds $1,430,573.5

GF/GP $1,214,902.0

School Aid $200,465.7


All Funds $1,512,494.1

GF/GP $1,214,902.0

School Aid $200,465.7

All Funds $1,512,494.1

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$1,132,981.4

$200,465.7

$1,430,573.5

$1,214,902.0

$200,465.7

$1,512,494.1

$1,214,902.0

$200,465.7

$1,512,494.1


7.2%

0.0%

5.7%

0.0%

0.0%

0.0%

One-Time Funding

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Total Funding

7.2%

0.0%

5.7%

0.0%

0.0%

0.0%

University Operations

$1,065,301.2

$200,019.5

$1,265,320.7

$1,142,193.2

$200,019.5

$1,342,212.7

Student Financial Aid

$6,000.0

$0.0

$103,126.4

$6,000.0

$0.0

$103,126.4

University Performance Funding

$76,892.0

$0.0

$76,892.0

$0.0

$0.0

$0.0

MSU AgBioResearch and Extension Activities

$59,722.3

$0.0

$59,722.3

$59,722.3

$0.0

$59,722.3

Statewide Programs

$4,986.5

$0.0

$4,986.5

$4,986.5

$0.0

$4,986.5

MPSERS Retiree Health Care Reimbursement

$2,000.0

$446.2

$2,446.2

$2,000.0

$446.2

$2,446.2

$1,214,902.0

$200,465.7

$1,512,494.1

$1,214,902.0

$200,465.7

$1,512,494.1

None

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0


$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$1,214,902.0

$200,465.7

$1,512,494.1

$1,214,902.0

$200,465.7

$1,512,494.1

Programs



HIGHER EDUCATION


B-39

HIGHER EDUCATION

B-40


Department of Human Services

T

KH'HSDUWPHQWRI+XPDQ6HUYLFHV'+6 KHOSVIDPLOLHVDQGLQGLYLGXDOVPHHWÀQDQFLDO PHGLFDODQGVRFLDOVHUYLFHQHHGV'HSDUWPHQWRI+XPDQ6HUYLFHVSURJUDPVSURYLGHÀQDQFLDO DVVLVWDQFHDQGPHGLFDODVVLVWDQFHWR0LFKLJDQ·VORZLQFRPHSRSXODWLRQPRYHSHRSOHWRZDUG VHOIVXIÀFLHQF\WKURXJKHPSOR\PHQWDQGWUDLQLQJVHUYLFHVZRUNWRSUHYHQWDEXVHQHJOHFWDQG H[SORLWDWLRQRIFKLOGUHQDQGYXOQHUDEOHDGXOWVWKURXJKGLUHFWVHUYLFHVDQGUHJXODWHDQGOLFHQVH DGXOWDQGFKLOGFDUHDJHQFLHVIDFLOLWLHVDQGKRPHV6HUYLFHVDUHSURYLGHGWKURXJKDQHWZRUNRI FRXQW\EDVHGRIÀFHV7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUVDQGUHFRPPHQGVWRWDO IXQGLQJIRUHDFK\HDURIELOOLRQRIZKLFKELOOLRQLVJHQHUDOIXQG7KHJRYHUQRUDOVRUHFRPPHQGV PLOOLRQPLOOLRQJHQHUDOIXQG LQRQHWLPHVSHQGLQJIRUÀVFDO\HDU

Over Half of the Department Budget Provides Basic Living Assistance to Low-Income Families Other Services 6%

Administration and Field Operations 20%

Food Assistance Program 43%

Child Support Operations 3% Total: $5.6 billion

Children's Services 18%

Other Public Assistance Programs 10%


7KHVXFFHVVRI3DWKZD\VWR3RWHQWLDOFRQWLQXHVZLWKDQHZLQYHVWPHQWRIPLOOLRQ JHQHUDOIXQG LQÀVFDO\HDU7KLVLQQRYDWLYHDQGHIIHFWLYHVHUYLFHGHOLYHU\ model locates Department of Human 6HUYLFHV·VWDIILQORFDOSXEOLFVFKRROVZKHUH “$SURJUDPSXWWLQJVWDWHVRFLDOZRUNHUVLQ WKH\ZRUNGLUHFWO\ZLWKFOLHQWVDQGWKHLU 'HWURLW)OLQW3RQWLDFDQG6DJLQDZSXEOLF FKLOGUHQWRDGGUHVVWKHIDPLOLHV·QHHGV VFKRROVSRWHQWLDOO\FRXOGVHUYHDVDPRGHOIRU DQGEDUULHUVWRVXFFHVVLQFOXGLQJKRXVLQJ H[SDQVLRQLQFOXGLQJRWKHUVWDWHVHUYLFHVLQRWKHU IRRGHGXFDWLRQDQGHPSOR\PHQW7KHVH ORFDWLRQVµ VWDIIDUHORFDWHGLQVFKRROVWKURXJKRXW WKHVWDWH,QDGGLWLRQWRSXEOLFVFKRROV The Associated Press, January 23, 2013 WKHVHQHZUHVRXUFHVZLOOSURYLGHIXQGLQJ WRORFDWHHOLJLELOLW\ZRUNHUVLQKRVSLWDOV HUMAN SERVICES


B-41

ORQJWHUPFDUHIDFLOLWLHVFRPPXQLW\PHQWDOKHDOWKDJHQFLHVDQGSULYDWHHPSOR\HUV $GGLWLRQDOO\WKHIXQGVZLOODLGZLWKVXFFHVVIXOSULVRQHUUHHQWU\SURJUDPVDW'HSDUWPHQW RI&RUUHFWLRQVIDFLOLWLHV2XWFRPHVLQFOXGHLPSURYHGVFKRRODWWHQGDQFHLQFUHDVHG HPSOR\PHQWDQGLPSURYHGIDPLO\IXQFWLRQLQJDQGLQGHSHQGHQFH'+6PHWULFV33 33DQG33)

7RSURYLGHZRUNHUUHOLHIDQGLPSURYHWKHHOLJLELOLW\GHWHUPLQDWLRQSURFHVVPLOOLRQ PLOOLRQJHQHUDOIXQG ZLOODXWRPDWHWKHUHYLHZDQGDVVHVVPHQWRIDVVHWVIRU SXEOLFDVVLVWDQFHDSSOLFDQWV7KLVVHUYLFHZLOOLQFUHDVHWKHWLPHOLQHVVDQGDFFXUDF\RIWKH DSSOLFDWLRQUHYLHZSURFHVV'+6PHWULFV5DQG))

7KHJRYHUQRUUHFRPPHQGVDGGLWLRQDOIXQGLQJRIPLOOLRQPLOOLRQJHQHUDOIXQG LQ2IÀFHRI,QVSHFWRU*HQHUDOÀHOGDJHQWVWRHQKDQFHIUDXGSUHYHQWLRQGHWHFWLRQDQG UHFRXSPHQW7KHVHUHVRXUFHVZLOOVXSSRUWHIIRUWVWRUHGXFHIUDXGXOHQWDVVLVWDQFHFODLPV WKURXJKH[SDQGLQJWKHVXFFHVVIXOIURQWHQGHOLJLELOLW\SURJUDP'+6PHWULFV)) and R2)

Children’s Services

7KHJRYHUQRU·VEXGJHWFRQWLQXHVVXSSRUWIRU0LFKLJDQ·VFKLOGZHOIDUHV\VWHPE\ LQYHVWLQJPLOOLRQPLOOLRQJHQHUDOIXQG LQWKHVHYLWDOSURJUDPV&KLOGZHOIDUH LPSURYHPHQWVDUHDQHVVHQWLDOFRPSRQHQWRIWKLVV\VWHPDQGFRQWLQXHWREHDSULRULW\LQ WKHJRYHUQRU·VEXGJHW,QÀVFDO\HDU0LFKLJDQZLOOLQYHVWFRQWLQXDWLRQIXQGLQJRI PLOOLRQPLOOLRQJHQHUDOIXQG WRHQKDQFHFKLOGZHOIDUHVHUYLFHVIRUDEXVHG DQGQHJOHFWHGFKLOGUHQ7KHVHIXQGVVXSSRUWFKLOGSURWHFWLYHVHUYLFHVIRVWHUFDUHDQG DGRSWLRQ$GGLWLRQDOIXQGVRIPLOOLRQPLOOLRQJHQHUDOIXQG IRUÀVFDO\HDU VXSSRUWIXQGLQJIRUSHUIRUPDQFHEDVHGFRQWUDFWVDQGRXWFRPHVLQIRVWHUFDUHVHUYLFHV DQGDSLORWWRKHOSLPSURYHZRUNHUHIÀFLHQF\DQGSURGXFWLYLW\WKURXJKWKHXVHRIWDEOHW FRPSXWHUV7RJHWKHUWKHVHLPSURYHPHQWVWRWKHFKLOGZHOIDUHV\VWHPKHOSNHHSFKLOGUHQ VDIHLQWKHLURZQKRPHVDQGZKHQQHFHVVDU\VXSSRUWDOWHUQDWLYHOLYLQJDUUDQJHPHQWV LQFOXGLQJIRVWHUFDUHDQGDGRSWLRQ'+6PHWULFV06$WKUX06$)

)RVWHUFDUHSD\PHQWVIRUFKLOGUHQLQRXWRIKRPHFDUHDUHVXSSRUWHGZLWK PLOOLRQPLOOLRQJHQHUDOIXQG 7KHVHSD\PHQWVSURYLGHFDUHDQGVXSHUYLVLRQXQWLO FKLOGUHQDUHUHWXUQHGWRWKHLUSDUHQWVRUDUHDGRSWHG7KHIRVWHUFDUHFDVHORDGKDVGHFOLQHG DQGWKHQVWDELOL]HGGXHWRWKHGHSDUWPHQW·VHIIRUWVWRÀQGSHUPDQHQWKRPHVIRUFKLOGUHQ ZKRKDYHEHHQDEXVHGRUQHJOHFWHG'+6PHWULFV06$DQG06$)

7KH$GRSWLRQ6XEVLG\SURJUDPVXSSRUWVDEXVHGRUQHJOHFWHGFKLOGUHQLQSHUPDQHQW KRPHV$GRSWLRQVXEVLGLHVDUHIXQGHGDWPLOOLRQPLOOLRQJHQHUDOIXQG IRUDGRSWHGFKLOGUHQ7KHQXPEHURIFKLOGUHQEHQHÀWLQJIURPWKLVSURJUDPLV DQLQGLFDWLRQRIWKHGHSDUWPHQW·VVXFFHVVDWÀQGLQJDQGVXSSRUWLQJDGRSWLRQV'+6 PHWULF06$)

HUMAN SERVICES

B-42


Income Assistance Programs

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7KH)DPLO\,QGHSHQGHQFH3URJUDPSURYLGHVÀQDQFLDOVXSSRUWIRUIDPLOLHVDWDFRVW RIPLOOLRQPLOOLRQJHQHUDOIXQG 'HSDUWPHQWSROLFLHVHQFRXUDJHHPSOR\PHQW DQGVHOIVXIÀFLHQF\DQGKDYHFRQWULEXWHGWRUHFHQWFDVHORDGGHFOLQHV'+6PHWULF3DWK)

+HDWLQJDVVLVWDQFHSURJUDPVDUHIXQGHGZLWKPLOOLRQLQIHGHUDODQGVWDWHUHVWULFWHG IXQGV,QFOXGHGLQWKH'HSDUWPHQWRI+XPDQ6HUYLFHVEXGJHWLVPLOOLRQLQIHGHUDO IXQGVIRUWKHKRPHKHDWLQJFUHGLWHQHUJ\UHODWHGFULVLVSD\PHQWVDQGZHDWKHUL]DWLRQ IRUORZLQFRPHKRPHRZQHUV7KH0LFKLJDQ(QHUJ\$VVLVWDQFH3URJUDP0($3 DGPLQLVWHUHGE\WKH3XEOLF6HUYLFH&RPPLVVLRQ36& LVIXQGHGZLWKPLOOLRQDQG SURYLGHVKHDWLQJDVVLVWDQFHWRORZLQFRPHIDPLOLHVDQGVHQLRUV'+6PHWULF($3)

Child Support

7RKHOS0LFKLJDQFKLOGUHQREWDLQÀQDQFLDOVXSSRUWIURPDEVHQWSDUHQWVPLOOLRQ PLOOLRQJHQHUDOIXQG LVSURYLGHGIRUWKHFKLOGVXSSRUWSURJUDP,QÀVFDO\HDU ELOOLRQLQFKLOGVXSSRUWZDVFROOHFWHGDQGGLVWULEXWHGIRUFKLOGUHQDQGWKHLUIDPLOLHV &KLOGVXSSRUWHQIRUFHPHQWZLOOEHHQKDQFHGZLWKDQLQYHVWPHQWRIPLOOLRQPLOOLRQ JHQHUDOIXQG WRGHYHORSDZHEEDVHGHPSOR\HUSRUWDODQGLQIRUPDWLRQGDWDEDVH

Adult Services

$V0LFKLJDQ·VSRSXODWLRQDJHVVHUYLFHQHHGVDUHLQFUHDVLQJIRUVHQLRUVDQGSHRSOHZLWK GLVDELOLWLHV7KHJRYHUQRU·VEXGJHWLQYHVWVPLOOLRQJURVVPLOOLRQJHQHUDO IXQG LQ$GXOW6HUYLFHVSURJUDPVWRDVVLVWWKHHOGHUO\DQGWKHGLVDEOHGWROLYHLQWKHOHDVW UHVWULFWLYHVHWWLQJIUHHIURPDEXVHDQGH[SORLWDWLRQ

HUMAN SERVICES


%

Governor's Recommendation Department of Human Services ($ in Thousands) FY2014 Current Law



GF/GP

All Funds

GF/GP

Ongoing Funding

$1,000,960.4

$6,014,883.4

$1,006,736.4

$5,614,413.7

$1,006,736.4

$5,614,413.7

One-Time Funding

$2,039.6

$3,500.0

$4,900.0

$6,900.0

$0.0

$0.0

$1,003,000.0

$6,018,383.4

$1,011,636.4

$5,621,313.7

$1,006,736.4

$5,614,413.7

Ongoing Funding

0.6%

-6.7%

0.0%

0.0%

One-Time Funding

140.2%

97.1%

-100.0%

-100.0%

0.9%

-6.6%

-0.5%

-0.1%

$0.0

$2,388,475.2

$0.0

$2,388,475.2

Administration and Field Operations

$401,764.3

$1,120,810.8

$401,764.3

$1,120,810.8

Children's Services

$394,323.1

$1,019,809.9

$394,323.1

$1,019,809.9

Other Public Assistance

$153,673.5

$537,336.8

$153,673.5

$537,336.8

Adult and Family Services

$22,451.7

$184,641.3

$22,451.7

$184,641.3

Child Support Operations

$24,248.9

$179,851.5

$24,248.9

$179,851.5

$3,664.1

$110,332.4

$3,664.1

$110,332.4

$0.0

$44,248.7

$0.0

$44,248.7

$6,610.8

$28,907.1

$6,610.8

$28,907.1

$1,006,736.4

$5,614,413.7

$1,006,736.4

$5,614,413.7

Child Support IT Initiatives & Operational Support

$2,000.0

$4,000.0

$0.0

$0.0

Michigan Rehabilitation Services

$2,400.0

$2,400.0

$0.0

$0.0

$500.0

$500.0

$0.0

$0.0

$4,900.0

$6,900.0

$0.0

$0.0

$1,011,636.4

$5,621,313.7

$1,006,736.4

$5,614,413.7

Total Funding

All Funds

GF/GP

All Funds


Total Funding

Programs Food Assistance

Disability Determination Services Community Action and Economic Opportunity Licensing (Adult Foster Care, Children's Foster Care and Child Day Care)


Catholic Charities Center for Hope Project


TOTAL RECOMMENDATION HUMAN SERVICES

B-44


Department of Insurance and Financial Services

T

KH'HSDUWPHQWRI,QVXUDQFHDQG)LQDQFLDO6HUYLFHVUHJXODWHVWKHLQVXUDQFHDQGÀQDQFLDO services industries in order to protect consumers, strengthen the state’s business climate, and position these industries for economic growth. 7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUVDQG 2016 recommends total funding of $65.3 million ($150,000 general fund).

Department D epartment R Regulates egulates FFinancial inancial IInstitutions nstitutions aand nd IInsurance nsurance Companies Companies Insurance and Consumer Finance Licensing 16%

Financial Institutions & Insurance Evaluation 49%


Department Services 21%

Enforcement and Consumer Protection 14%


7KHJRYHUQRUUHFRPPHQGVIXQGLQJRIPLOOLRQIRULQVXUDQFHDQGÀQDQFLDOLQVWLWXWLRQV DGPLQLVWUDWLRQPLOOLRQIRUFRQVXPHUSURWHFWLRQDQGUHJXODWRU\FRPSOLDQFHDQG PLOOLRQIRUGHSDUWPHQWVHUYLFHVDQGLQIRUPDWLRQWHFKQRORJ\

1HZIXQGLQJRIJHQHUDOIXQGLVUHFRPPHQGHGIRUDQDO\VLVRIWKHLPSDFWRIWKH +HDOWK\0LFKLJDQ3ODQRQSULYDWHPDUNHWLQVXUDQFHUDWHV

2YHUPLOOLRQUHPDLQVXQH[SHQGHGLQWKH$XWLVP&RYHUDJH)XQGDQGLVDYDLODEOHWR reimburse additional claims. For that reason, the governor’s budget includes no additional deposits into the fund.

INSURANCE AND FINANCIAL SERVICES


B-45

Judiciary

T

he Michigan Constitution vests the judicial power of the state exclusively in a court system composed of the Supreme Court, the Court of Appeals, the Circuit Court (which is the trial court of general jurisdiction, including the Family Court division), the Probate Court, and courts of limited jurisdiction such as the District Court and municipal courts. The statewide court system is administered by the Supreme Court Justices through the State Court Administrative Office. The governor’s proposed budget for fiscal years 2015 and 2016 recommends ongoing funding of $288.5 million, of which $187.2 million is general fund. The governor also recommends $1 million in one-time spending in fiscal year 2015.

Over 60% of Budget Supports Court Operations

Judicial Operations 48%

Court of Appeals Operations 8% Specialty Courts and Performance Innovation 6% Indigent Defense 6%


Justices' and Judges' Compensation 32%

Highlights of Governor’s Budget Recommendation •

As a continuing part of his Public Safety Initiative, the governor recommends $11 million gross, of which $5.4 million is general fund, to maintain drug treatment courts. The courts improve public safety by reducing drug and alcohol convictions. (Judiciary metrics: Court Metrics and Evidence-Based Practices, Sobriety and Drug Court Recidivism Rates)

•

Mental health courts are funded with $4.1 million general fund. This funding will maintain nine existing mental health courts. Mental health courts serve as a valuable community alternative to more costly local and state criminal justice sanctions. An additional $1.7 million general fund for assisted outpatient treatment, post booking probation services, housing, travel, and court coordination and review hearings brings total mental health court and jail diversion support to $5.8 million. (Judiciary metrics: Court Metrics and Evidence-Based Practices)


judiciary

B-47

•

The governor recommends a one-time investment of $1 million general fund for the Trial Court Performance Innovation Fund. Established in fiscal year 2014 with $1 million onetime general fund, this fund provides seed money to Michigan’s trial courts for innovative projects designed to improve efficiency and effectiveness of trial court operations such as automated income tax garnishment, smart phone apps for court access, peacemaking courts, human trafficking courts, effective use of social media, and an online educational hub. (Judiciary metrics – Performance: Court metrics and Evidence-Based Practices)

•

An investment of $4.1 million general fund is included to continue the implementation of a unified case management information system, Michigan Court System (MiCS), in trial courts throughout the state. The MiCS uses modern technology to enhance business processes and to improve interactions with the public. Combined with $2.5 million onetime general fund recommendation in fiscal year 2014, the governor has recommended a total investment of nearly $7 million in this important multi-year initiative. (Judiciary metrics –Technology: Supporting Timeliness, Efficiency, Access)

•

Recognizing passage of P.A. 93 of 2013 which establishes a new sixteen member Michigan Indigent Defense Commission, the governor recommends $1 million general fund for the commission operations. The commission will propose minimum standards for the local delivery of indigent defense services.

•

The executive recommendation includes $350,000 general fund for the State Appellate Defender Office (SADO) to replace expiring federal funds. This investment will help ensure that SADO can successfully manage 25 percent of indigent appellate defense cases, which is consistent with the statutory requirement.

judiciary

B-48

Fueling Michigan’s Future ― The Comeback Continues

Governor's Recommendation Department of Insurance and Financial Services ($ in Thousands) FY2014 Current Law



All Funds

GF/GP


All Funds

GF/GP

All Funds

$11,000.0

$75,335.5

$150.0

$65,284.7

$150.0

$65,284.7

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$11,000.0

$75,335.5

$150.0

$65,284.7

$150.0

$65,284.7

-98.6%

-13.3%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

-98.6%

-13.3%

0.0%

0.0%

$0.0

$51,875.8

$0.0

$51,875.8

$150.0

$11,141.2

$150.0

$11,141.2

$0.0

$2,267.7

$0.0

$2,267.7

$150.0

$65,284.7

$150.0

$65,284.7

None

$0.0

$0.0

$0.0

$0.0


$0.0

$0.0

$0.0

$0.0

$150.0

$65,284.7

$150.0

$65,284.7


% Change from Previous Year Ongoing Funding One-Time Funding Total Funding

Programs Insurance and Financial Services Regulation Department Services Information Technology


TOTAL RECOMMENDATION INSURANCE AND FINANCIAL SERVICES

B-46


Governor's Recommendation Judiciary ($ in Thousands) FY2014 Current Law


All Funds

GF/GP


All Funds

GF/GP

All Funds

$178,950.6

$278,923.4

$187,242.9

$288,483.1

$187,242.9

$288,483.1

$4,490.7

$4,490.7

$1,000.0

$1,000.0

$0.0

$0.0

$183,441.3

$283,414.1

$188,242.9

$289,483.1

$187,242.9

$288,483.1




4.6%

3.4%

0.0%

0.0%

-77.7%

-77.7%

-100.0%

-100.0%

2.6%

2.1%

-0.5%

-0.3%

Judicial Operations

$49,514.7

$133,478.1

$49,514.7

$133,478.1

Justices' and Judges' Compensation

$91,053.8

$94,041.9

$91,053.8

$94,041.9

Court of Appeals Operations

$22,708.2

$22,708.2

$22,708.2

$22,708.2

Specialty Courts

$11,717.3

$17,312.8

$11,717.3

$17,312.8

Indigent Defense

$8,123.9

$16,817.1

$8,123.9

$16,817.1

Michigan Court System Implementation

$4,125.0

$4,125.0

$4,125.0

$4,125.0

$187,242.9

$288,483.1

$187,242.9

$288,483.1

$1,000.0

$1,000.0

$0.0

$0.0

$1,000.0

$1,000.0

$0.0

$0.0

$188,242.9

$289,483.1

$187,242.9

$288,483.1


Programs

Total Ongoing Recommendation Trial Court Performance Innovation Fund



JUDICIARY


B-49

JUDICIARY

B-50


Legislature

T

he Michigan Constitution vests the state’s lawmaking power in a two-house legislature consisting of a 38-member Senate and a 110-member House of Representatives. The legislature is an independent branch of state government with the authority to enact laws that regulate the actions of the government and protect the interests of the people. The governor’s proposed budget IRUÀVFDO\HDUVDQGUHFRPPHQGVWRWDOIXQGLQJRIPLOOLRQRIZKLFKPLOOLRQLV JHQHUDOIXQG

Legislative Budget Supports Elected Officials and Their Staff Legislative Retirement System 3% Legislative Council 9%

Legislative Auditor General 14% State Capitol Historic Site 4%

Senate 27% House of Representatives 43% Total: $153.3 million


7KH([HFXWLYH%XGJHWSURYLGHVPLOOLRQIRUWKHOHJLVODWXUHLQFOXGLQJWKH6HQDWHWKH +RXVHRI5HSUHVHQWDWLYHVDQGVXSSRUWLQJHQWLWLHV

1HDUO\PLOOLRQLVUHFRPPHQGHGIRUWKH2IÀFHRI$XGLWRU*HQHUDODFRQVWLWXWLRQDOO\ UHTXLUHGIXQFWLRQWRFRQGXFWÀQDQFLDODQGSHUIRUPDQFHDXGLWVRIVWDWHJRYHUQPHQW operations.

7KH([HFXWLYH%XGJHWUHFRPPHQGVPLOOLRQIRUWKH6WDWH&DSLWRO+LVWRULF6LWHZKLFK will be used to maintain and preserve Michigan’s State Capitol and the surrounding grounds.

LEGISLATURE


B-51

Governor's Recommendation Legislature ($ in Thousands) FY2014 Current Law



All Funds

GF/GP


All Funds

GF/GP

All Funds

$136,220.8

$144,773.7

$141,598.0

$153,329.3

$141,598.0

$153,329.3

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$136,220.8

$144,773.7

$141,598.0

$153,329.3

$141,598.0

$153,329.3

Ongoing Funding

3.9%

5.9%

0.0%

0.0%

One-Time Funding

0.0%

0.0%

0.0%

0.0%

Total Funding

3.9%

5.9%

0.0%

0.0%

House of Representatives

$65,711.2

$65,711.2

$65,711.2

$65,711.2

Senate

$40,934.6

$40,934.6

$40,934.6

$40,934.6

Auditor General Operations

$14,537.3

$21,758.8

$14,537.3

$21,758.8

Legislative Council

$13,590.5

$13,990.5

$13,590.5

$13,990.5

State Capitol Historic Site

$3,217.2

$6,217.2

$3,217.2

$6,217.2

Legislative Retirement System

$3,607.2

$4,717.0

$3,607.2

$4,717.0

$141,598.0

$153,329.3

$141,598.0

$153,329.3

None

$0.0

$0.0

$0.0

$0.0


$0.0

$0.0

$0.0

$0.0

$141,598.0

$153,329.3

$141,598.0

$153,329.3



Programs


TOTAL RECOMMENDATION LEGISLATURE

B-52


Department of Licensing and Regulatory Affairs

T

he Department of Licensing and Regulatory Affairs (LARA) serves as the state’s primary business regulatory and employment services agency. 7KHJRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO years 2015 and 2016 recommends total ongoing funding of $509.5 million ($25 million general fund). The JRYHUQRU·VSURSRVHGEXGJHWDOVRUHFRPPHQGVPLOOLRQLQRQHWLPHVSHQGLQJLQÀVFDO\HDU

LARA Supports Employment and Business Regulatory Services Michigan Administrative Hearing System 8%

Employment Services 27%

Administration and Information Technology 15%

Licensing, Regulation, and Safety 50%

TOTAL: $531.9 million


&RQVLVWHQWZLWK*RYHUQRU6Q\GHU·VHIIRUWVWRLPSURYHDQGVWUHDPOLQHWKHIXQFWLRQVRI state government, the budget recommendation includes $700,000 for process engineering HIIRUWVWRLPSURYHVWDWHJRYHUQPHQWSURJUDPVUHVXOWLQJLQLQFUHDVHGHIÀFLHQFLHVDQG improved customer service. (LARA metric 12)

*RYHUQRU6Q\GHUKDVLQFOXGHGRQHWLPHVWDWHUHVWULFWHGIXQGLQJRIPLOOLRQWR maintain customer service “It’s important that we open up this dialogue statewide so levels in the Unemployment that we can identify problems and make improvements in Insurance Agency (UIA) in the face of declining federal revenues. the regulatory areas that really matter.” The governor’s budget also Lt. Governor Brian Calley, November 22, 2013 LQFOXGHVPLOOLRQLQRQH time state restricted funding for WKHGHYHORSPHQWRIDVRIWZDUH DSSOLFDWLRQWKDWZLOOHQDEOH8,$ FODLPDQWVWRÀOHFODLPVUHPRWHO\YLDPRELOHGHYLFHVLARA metric 19)

7KHJRYHUQRU·VEXGJHWDGGVPLOOLRQWRWKH%XUHDXRI&RQVWUXFWLRQ&RGHVWR streamline permitting processes, monitor safety standards on construction sites, and IDFLOLWDWHDQRQJRLQJSDUWQHUVKLSZLWKWKH'HWURLW/DQG%DQN$XWKRULW\WRH[SHGLWH demolition of blighted buildings in the city. (LARA metric 12) LICENSING AND REGULATORY AFFAIRS


B-53

Governor's Recommendation Department of Licensing and Regulatory Affairs ($ in Thousands) FY2014 Current Law

GF/GP


All Funds

GF/GP


All Funds

GF/GP

All Funds

Ongoing Funding

$22,864.6

$500,778.4

$25,033.8

$509,460.8

$25,033.8

$509,460.8

One-Time Funding

$2,140.3

$2,140.3

$0.0

$22,400.0

$0.0

$0.0

$25,004.9

$502,918.7

$25,033.8

$531,860.8

$25,033.8

$509,460.8

Ongoing Funding

9.5%

1.7%

0.0%

0.0%

One-Time Funding

-100.0%

946.6%

0.0%

-100.0%

0.1%

5.8%

0.0%

-4.2%

Employment Services

$9,752.8

$143,543.4

$9,752.8

$143,543.4

Occupational Regulation

$9,288.5

$125,156.0

$9,288.5

$125,156.0

Michigan Administrative Hearing System

$1,489.1

$43,005.2

$1,489.1

$43,005.2

$65.2

$41,795.2

$65.2

$41,795.2

Departmental Administration

$1,573.7

$38,924.2

$1,573.7

$38,924.2

Michigan Occupational Safety and Health Administration

$2,170.9

$35,831.2

$2,170.9

$35,831.2

$693.6

$30,917.5

$693.6

$30,917.5

Public Service Commission

$0.0

$30,786.7

$0.0

$30,786.7

Liquor Control Commission

$0.0

$19,501.4

$0.0

$19,501.4

$25,033.8

$509,460.8

$25,033.8

$509,460.8

Unemployment Insurance Agency

$0.0

$18,000.0

$0.0

$0.0

Mobile Claim Filing Application

$0.0

$2,400.0

$0.0

$0.0

Liqour Control Commission IT Upgrades

$0.0

$2,000.0

$0.0

$0.0


$0.0

$22,400.0

$0.0

$0.0

$25,033.8

$531,860.8

$25,033.8

$509,460.8

Total Funding


Total Funding

Programs

Information Technology

Department Grants


TOTAL RECOMMENDATION LICENSING AND REGULATORY AFFAIRS

B-54


Department of Military and Veterans Affairs

T

he Department of Military and Veterans’ Affairs (DMVA) primary mission is military and emergency preparedness, as well as service to veterans. The department is a key partner with the federal government in defending sovereign interests of the United States globally and protects the lives and property of Michigan residents during times of natural disaster and civil unrest. There are approximately 11,290 members of the Michigan National Guard; approximately 174 are currently deployed with an additional 265 scheduled to be deployed through December 2014. The JRYHUQRU·VSURSRVHGEXGJHWIRUÀVFDO\HDUVDQGUHFRPPHQGVRQJRLQJIXQGLQJRIPLOOLRQ RIZKLFKPLOOLRQLVJHQHUDOIXQG2QHWLPHIXQGLQJRIPLOOLRQJHQHUDOIXQGLVDOVRUHFRPPHQGHG IRUÀVFDO\HDU

Almost Half of Funding Supports Services to Veterans Maintenance at Armories 13%

National Guard Operations and Outreach 38%

Veterans Outreach and Services 9%

Veterans Homes 40%



7KHEXGJHWLQFOXGHVPLOOLRQPLOOLRQJHQHUDOIXQG LQIXQGLQJIRU1DWLRQDO Guard operations and outreach, representing the Michigan National Guard’s traditional mission of state and national defense and homeland security, as well as community programs including the Military Family Relief Fund.

$VVWDWH1DWLRQDO*XDUGXQLWVFRPSHWHIRUIHZHUIHGHUDOGROODUVLWLVFULWLFDOWRPDLQWDLQ SHUVRQQHOUHDGLQHVVOHYHOVQHDUSHUFHQW1HZIXQGLQJRIPLOOLRQJHQHUDOIXQGLV recommended to support a state tuition assistance program for Michigan Air and Army National Guard service members to improve recruitment and retention in order to achieve necessary readiness levels. (DMVA metric 10 and 11)

9HWHUDQVDUHVHUYHGZLWKPLOOLRQLQWRWDOIXQGLQJLQFOXGLQJQHZIXQGLQJRI PLOOLRQJHQHUDOIXQGLQÀVFDO\HDUIRUWKH0LFKLJDQ9HWHUDQV·$IIDLUV$JHQF\7KH new funding will support the full year costs of the agency, establish regional coordinators in conjunction with the governor’s Regional Prosperity Initiative, and support grants to local units of government to assist in providing veteran services. MILITARY AND VETERANS AFFAIRS


B-55

This funding will continue the efforts of the Michigan Veterans’ Affairs Agency to DVVLVWYHWHUDQVDQGWKHLUGHSHQGHQWVLQDFFHVVLQJWKHEHQHÀWVWKH\DUHHQWLWOHGIURPWKH 8QLWHG6WDWHV'HSDUWPHQWRI9HWHUDQV$IIDLUVDVZHOODVKHOSUHWXUQLQJYHWHUDQVÀQG HPSOR\PHQW,QDGGLWLRQYHWHUDQVVHUYLFHRUJDQL]DWLRQVZLOOFRQWLQXHWRUHFHLYH PLOOLRQLQVWDWHIXQGHGJUDQWVWRFRXQVHOYHWHUDQVDQGDVVLVWWKHPLQUHFHLYLQJEHQHÀWV and services for which they are eligible. (DMVA metric 3 and 6)

7KH)LVFDO