This week, several of the budget bills for the upcoming 2016-2017 Fiscal Year were reported from the Appropriations Committees.  All appropriations budgets have been reported from their subcommittees and are either waiting consideration from the full Appropriations Committees or have been reported to the House or Senate floor for consideration.  One major issues that arose after a subcommittee reported its budget came within the Department of Corrections budget.  The subcommittee has recommended the closure of two prisons (the department would choose the facilities), for a savings of $46.97 million.  Additionally, they’ve proposed leasing the North Lake Correctional Facility and have appropriated $31.6 million to lease and staff the facility.  That budget is before the full Senate Appropriations Committee for consideration.

The House Appropriations Committee reported the education omnibus budget, which provides appropriations for Higher Education, Community Colleges, and K-12 schools.  Highlights include:

Higher Education

• An increase to the operation funding by 3.4%, which is $13.5 million less than the executive recommendations.
• Half of the increased funding will be distributed based on each university’s share of operational funding appropriated in the 2010-2011 Fiscal Year.  The remainder will be allocated using the performance funding formula.
• Universities will be required to cap tuition increases at 4.8% or $500 –whichever is greater- to receive performance funding.
• An increase of $1.2 million to the tuition grant program and an additional $2 million to the tuition incentive program.
• A $100 placeholder for offsetting costs of the Indian Tuition Waiver program.

Community Colleges

• Operation funding was increased by 3.4%, using a revised performance funding formula. 
• An additional $3.7 million for the state’s portion of the unfunded liability of the Michigan Public School Employee’s Retirement System.

K-12 School Aid

• Increases the foundation allowance $60-$120 per pupil and makes changes to the pupil membership counts. 
• $10 million for funding several services for the City of Flint, including universal Early On testing, universal preschool, and additional school nurses and social works. 
• The House removed from the executive recommendations of $9 million to test school building water systems for lead.
• Removes a $10 million appropriated to provide for college admissions tests for students.

The Senate Appropriations Committee reported several departmental budget bills this week.  Highlights of the budgets as reported by the committee are below.

Community Colleges

• A requirement that universities and community colleges report to the legislature on how they are collaborating.

Department of Agriculture and Rural Development

• Establishment of the “Rural Development Fund Grant Program” and a $2 million appropriation to fund grants and/or loans to aid rural communities address energy, transportation, communications, and water and wastewater infrastructure issues.
• A one-time $200,000 grant for the Easter Market Food initiative.
• $100 placeholder for the Muskegon Farmers Market Food Incubator.

Department of Education

• A $3.5 million appropriation for reimbursement to schools for water testing.

Department of Environmental Quality

• $800,000 for the Clean Water Initiative – Clean Water Fund to increase the scope.
• An additional $2.9 million for the Drinking Water Revolving Fund program in order to draw down all available federal match dollars.
• A $5.4 million one-time appropriation for efforts related to Flint water issues.
• Removed a $1.5 million appropriation for the brownfield grant program.

Department of Natural Resources

• A one-time appropriation of $1 million to support research and development of an Asian carp barrier.
• $3,258,500 for projects at State and local harbors, docks, and boating access areas.
• $1.5 million additional appropriations to the Park Improvement Fund.

Department of Transportation

• Assumed within the budget is the forthcoming creation of the Roads and Innovation Fund to distribute additional revenue realized under the legislative package that increased infrastructure funding.
• The $100 million under the fund would be distributed in the following manner; $10 million to comprehensive transportation fund bonds, $35.2 million to the department, and $54.8 million to local road agencies.

Higher Education

• $59.8 million increase to university operations.
• Tuition restraint would be capped at 4.8%.
• Includes language that any university exceeding the tuition cap would not be eligible for a capitol outlay project during the next two fiscal years.

Judiciary

• An $8.5 million increased spending authority to the statewide electronic filing fund.
• $800,000 for a specialty court for the Swift-and-Sure Sanctions program.
• An increase of $800,000 to the Michigan Indigent Defense Commission.
• $700,000 increase to the State Appellate Defender Office’s staff to ensure compliance with the recent U.S. Supreme Court ruling regarding the retroactivity of juvenile life sentences.

K-12, School Aid

• The budget does not include $72 million to aid the Detroit Public Schools in retiring its debt, as called for in the executive recommendations.
• An additional $300 per pupil for districts who use the grant process to consolidate.
• Removal of the executive recommendations for $10 million to reimburse schools for educator evaluations and $9 million for districts testing lead levels in the water.
• A $5 million appropriation to nonpublic schools to cover the costs of state mandates.

Michigan State Police

• $9.8 million for a trooper school to provide an additional 100 troopers.
• $4 million for competitive grants dealing with school safety initiatives.
• An additional $2.2 million for cybercrimes enforcement.
• $1,463,500 to expand the secure cities program to include Muskegon Heights, Inkster, Hamtramck, Harper Woods, Highland Park, and Benton Harbor.

Military and Veterans Affairs

• An additional ten full time employees for the department to address problems with the Youth Challenge Program.
• A one-time capitol outlay funding of $5 million for renovations at the Grand Rapids Veterans Home

“With the budget bills that have been reported from the full appropriations committee, and considering that the remaining budgets should be reported in the next week, the legislature is moving at an accelerated pace to wrap up the 2016-2017 fiscal year budgets on-time or ahead of schedule.  While the new fiscal year doesn’t begin until October 1, over the past six years the legislature has set a self-imposed deadline to have budgets completed in June and they’ve always met that goal” stated Sean Mann of MLC.

Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.