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EXECUTIVE ORDER No.2003 - 23
IMPLEMENTATION OF EXPENDITURE REDUCTIONS UNDER SECTION 20 OF ARTICLE V OF THE MICHIGAN CONSTITUTION OF 1963
WHEREAS, under Section 20 of Article V of the Michigan Constitution of 1963 no appropriation is a mandate to spend, and the Governor, with the approval of the appropriating committees of the House of Representatives and the Senate, shall reduce expenditures authorized by appropriations whenever it appears that actual revenues for a fiscal period will fall below the revenue estimates on which appropriations for that period were based, and the reductions shall be made in accordance with procedures prescribed by law;
WHEREAS, it appears that actual revenues for the fiscal period beginning on October 1, 2003 and ending on September 30, 2004, will fall below the revenue estimates on which appropriations for that period were based, the estimates having been determined by the Legislature as required under Section 31 of Article IV of the Michigan Constitution of 1963;
WHEREAS, pursuant to Section 391 of the Management and Budget Act, 1984 PA 431, MCL 18.1391, on the basis of written information from the State Budget Director and the State Treasurer, it appears that actual revenue will fall below such revenue estimates;
WHEREAS, there is an unanticipated loss of funding that the departments and agencies of state government do not expect to obtain or make up during the current fiscal year;
WHEREAS, expenditure reductions totaling $231,930,172.00 general fund-general purpose and
$147,899,300.00 special purpose funds are necessary;
NOW, THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, pursuant to the authority vested in me by the Michigan Constitution of 1963 and Michigan law, and with the approval of a majority of members of each appropriations committee, order the following reductions:
A. Portions of general fund-general purpose appropriations amounting to $200,937,582.00 contained in the following public acts are hereby reduced. Where the expenditure reductions of general fund-general purpose appropriations in this order reduce the restricted portions of gross appropriations and sources of financing that will be earned, the amounts to be reduced shall be provided separately to the State Budget Director for approval and entry into the accounts.
Reduction
Public Act
Department
Amount
2003 PA 157
Agriculture
1,119,800
2003 PA 161
Attorney General
750,000
2003 PA
193
Capital Outlay
29,000,000
2003 PA 169
Career Development
371,726
2003 PA 161
Civil Rights
463,042
2003 PA 161
Civil Service
220,063
2003 PA 146
Community Colleges
12,434,500
2003 PA 159
Community Health
5,090,400
2003 PA 167
Consumer and Industry Services
704,382
2003 PA 154
Corrections
6,044,819
2003 PA 145
Education
332,800
2003 PA 171
Environmental Quality
3,135,525
2003 PA 172
Family Independence Agency
32,260,400
2003 PA 144
Higher Education
73,172,000
2003 PA 160
History, Arts and Libraries
583,100
2003 PA 161
Management and Budget
500,000
2003 PA 169
Michigan Strategic Fund
2,175,791
2003 PA 156
Military and Veterans Affairs
970,000
2003 PA 147
Natural Resources
712,000
2003 PA 161
State
288,249
2003 PA 149
State Police
12,876,271
2003 PA 161
Treasury
17,732,714
200,937,582
The Department of Information Technology shall reduce user charges to state agencies consistent with reductions in appropriations for information technology services and projects contained in Section B.
B. The reduction totals for the departments and agencies in Section A include the following appropriation items or are predicated upon the following actions:
1. Department of Agriculture
Appropriation Number
Item
Reduction Amount
01005
Commissions and boards
10,000
01070
Executive direction
85,000
01210
Management services
115,433
01250
Agriculture development, marketing and emergency management
120,200
02205
Pesticide and plant pest management
312,918
02320
Animal health and welfare
91,783
02490
Food safety and quality assurance
67,133
02530
Laboratory analysis program
86,433
03120
Environmental stewardship
170,000
03908
Local conservation districts
60,900
1,119,800
The amount in Section 604(a) of 2003 PA 157 for Local Conservation District training is reduced to
$20,300.00.
2. Department of Attorney General
Appropriation Number
Item
Reduction Amount
01040
Attorney general operations
722,100
05000
Prosecuting attorneys coordinating council
27,900
750,000
The amount in Section 307(3) of 2003 PA 161 for carryforward of unexpended funds is reduced to
$200,000.00.
3. Capital Outlay
Appropriation Number
Item
Reduction Amount
01738
State building authority rent - state agencies
13,342,700
01739
State building authority rent - department of corrections
7,118,900
01737
State building authority rent - universities
8,538,400
29,000,000
4. Department of Career Development
Appropriation Number
Item
Reduction Amount
03001
Administration
61,533
03012
Workers’ compensation
2,309
09520
Employment training services
218,378
09502
Michigan career and technical institute
34,966
07303
Career and technical education
20,344
07301
Postsecondary education
21,355
07302
Adult education
5,429
07304
Commission on Spanish-
7,412
speaking affairs
371,726
Expenditure reductions for the Department of Career Development include reductions for functions and programs transferred to the Department of Labor and Economic Growth effective December 7, 2003, pursuant to Executive Order 2003-18.
5. Department of Civil Rights
Appropriation Number
Item
Reduction Amount
01000
Civil rights operations
463,042
463,042
6. Department of Civil Service
Appropriation Number
Item
Reduction Amount
19200
Agency services
150,000
19300
Human resources/administrative support
70,063
220,063
7. Community Colleges
Appropriation Number
Item
Reduction Amount
07600
Alpena Community College
215,900
07605
Bay de Noc Community College
208,700
07610
Delta College
583,800
07620
Glen Oaks Community College
98,000
07625
Gogebic Community College
178,600
07630
Grand Rapids Community College
734,400
07635
Henry Ford Community College
895,000
07645
Jackson Community College
495,400
07650
Kalamazoo Valley Community College
505,500
07655
Kellogg Community College
397,100
07660
Kirtland Community College
120,500
07665
Lake Michigan College
213,700
07670
Lansing Community College
1,269,900
07675
Macomb Community College
1,355,000
07680
Mid Michigan Community College
180,800
07685
Monroe County Community College
175,900
07690
Montcalm Community College
127,200
07615
C.S. Mott Community
642,100
College
07695
Muskegon Community College
365,400
07700
North Central Michigan College
123,800
07705
Northwestern Michigan College
372,800
07710
Oakland Community College
854,800
07715
St. Clair County Community College
286,300
07720
Schoolcraft College
501,700
07725
Southwestern Michigan College
269,300
07730
Washtenaw Community College
509,900
07735
Wayne County Community College
659,100
07740
West Shore Community College
93,900
12,434,500
8. Department of Community Health
Appropriation Number
Item
Reduction Amount
01191
Departmental administration and management
373,500
01130
Mental health/substance abuse program administration
429,500
11230
Executive administration
30,000
11254
Vital records and health statistics
9,800
16753
Sexually transmitted disease control management and field support
58,300
16230
Laboratory services
86,500
15155
Epidemiology administration
11,500
14230
Community living, children, and families administration
67,200
14330
Children’s special health care services administration
15,600
22100
Drug control policy
38,500
46502
Office of services to aging administration
34,800
34010
Medical services administration
499,800
51601
Grants administration services
414,500
33550
Health plan services
1,000,000
04000
Center for forensic psychiatry
200,000
02999
Civil service charges
300,000
01755
Closed site, transition, and related costs
500,000
11232
Workers’ compensation program
1,000,000
01061
Community health advisory council
20,900
5,090,400
9. Department of Consumer and Industry Services
Appropriation Number
Item
Reduction Amount
06001
Adult foster care, children’s welfare and day care licensure
354,382
17001
Operations
350,000
704,382
Expenditure reductions for the Department of Consumer and Industry Services include reductions for functions and programs transferred to the Department of Labor and Economic Growth and the Family Independence Agency effective December 7, 2003, pursuant to Executive Order 2003-18.
10. Department of Corrections
Appropriation Number
Item
Reduction Amount
01070
Human resources
224,400
10370
DOJ, psychiatric plan - MDCH mental health services
1,150,000
10366
DOJ, psychiatric plan - MDOC staff and services
1,100,000
16381
Hospital and specialty care services
700,000
17530
Southeastern region clinical complexes
500,000
17520
Southwestern region clinical complexes
250,000
46002
Alger maximum correctional facility - Munising
1,900
47002
Baraga maximum correctional facility - Baraga
8,000
49002
Chippewa correctional facility - Kincheloe
131,619
50002
Kinross correctional facility - Kincheloe
13,300
54002
Newberry correctional facility - Newberry
200
52002
Oaks correctional facility
- Eastlake
13,200
55002
Ojibway correctional facility - Marenisco
2,700
56002
Pugsley correctional facility - Kinglsey
9,900
53002
Standish maximum correctional facility - Standish
5,400
35002
Cooper Street correctional facility - Jackson
400
79002
Gus Harrison correctional facility - Adrian
284,147
80002
Thumb correctional facility - Lapeer
1,024,500
48002
Carson City correctional facility - Carson City
50,600
76002
Florence Crane correctional facility - Coldwater
5,600
63002
Deerfield correctional facility - Ionia
1,300
64002
Riverside correctional facility - Ionia
502,719
69002
St. Louis correctional facility - St. Louis
64,934
6,044,819
11. Department of Education
Appropriation Number
Item
Reduction Amount
03801
Information technology operations
42,800
04801
School excellence operations
221,000
07501
Government services operations
49,900
07601
Safe schools operations
19,100
332,800
12. Department of Environmental Quality
Appropriation Number
Item
Reduction Amount
01345
Building occupancy charges
1,907,125
01346
Rent-privately owned property
128,400
01150
Information technology services and projects
1,100,000
3,135,525
13. Family Independence Agency
Appropriation Number
Item
Reduction Amount
11010
Salaries and wages
130,200
11040
Contractual services, supplies, and materials
157,500
11110
Commission on disability concerns
14,700
11210
Commission for the blind
7,700
11220
Youth low-vision program
18,200
11350
Demonstration projects
72,900
11820
Other unclassified salaries
11,000
12050
Travel
40,800
12060
Equipment
325,800
12070
Rent
118,000
12080
Payroll taxes and fringe benefits
144,800
12250
Grand tower facility reimbursement
426,600
14100
Disability determination operations
35,300
14200
Medical consultation program
110,400
16100
Information technology services and projects
250,000
16500
Child support automation
11,600,000
32550
Day care services
11,000,000
32580
State supplementation administration
131,000
47400
Juvenile justice operations
3,278,000
47700
Juvenile accountability incentive block grant
4,500
47800
Committee on juvenile justice administration
13,800
62040
Contractual services, supplies, and materials
612,500
62510
Volunteer services and reimbursement
63,000
62610
Field staff, salaries and wages
2,142,100
72040
Contractual services, supplies, and materials
26,600
72260
Family preservation and prevention services
2,100
72420
Youth in transition
72,700
72530
Child care fund administration
40,400
72540
Community support services
166,400
72760
Adoption support services
2,700
81010
Salaries and wages
167,300
81040
Contractual services, supplies, and materials
379,400
81550
Wage employment verification reporting
197,600
81700
Training and staff development
99,000
83100
Child support operations
328,700
83400
Child support distribution computer system
68,700
32,260,400
Expenditure reductions for the Family Independence Agency include reductions for functions and programs transferred to the Department of Labor and Economic Growth effective December 7, 2003, pursuant to Executive Order 2003-18.
The amount in Section 657(3) of 2003 PA 172 for before-or-after-school pilot programs is reduced to
$2,550,000.00.
14. Higher Education
Appropriation
Item
Reduction
Number
Amount
01001
Central Michigan University
4,077,100
01501
Eastern Michigan University
3,943,700
02001
Ferris State University
2,498,400
02501
Grand Valley State University
2,954,300
04001
Lake Superior State University
642,100
03001
Michigan State University
14,669,200
03501
Michigan Technological University
2,485,900
04501
Northern Michigan University
2,340,600
03201
Oakland University
2,454,400
05001
Saginaw Valley State University
1,333,700
05501
University of Michigan - Ann Arbor
16,360,300
05801
University of Michigan - Dearborn
1,259,700
05701
University of Michigan - Flint
1,083,100
06501
Wayne State University
11,414,000
06001
Western Michigan
5,655,500
University
73,172,000
The amount in Section 401 of 2003 PA 144 is reduced to $5,434,400.00.
15. Department of History, Arts and Libraries
Appropriation Number
Item
Reduction Amount
01100
Management services
25,000
05000
Information technology services and projects
99,000
03050
Library of Michigan operations
144,100
02001
Administration
31,300
04100
Historical administration and services
206,900
01400
Office of film and television services
5,000
07511
Mackinac Island state park operations
71,800
583,100
The amount in Section 505 of 2003 PA 160 for historical administration and services is reduced to
$49,700.00.
16. Department of Management and Budget
Appropriation Number
Item
Reduction Amount
12000
Administrative services
201,400
14000
Office of the state employer
61,100
00005
Information technology services and projects
237,500
500,000
The Department of Management and Budget shall reduce building occupancy general fund expenditures by $5,900,000.00. The State Budget Director is authorized to take any and all actions necessary to properly record expenditure reductions as part of the financial transactions for the fiscal year ending September 30, 2004.
17. Michigan Strategic Fund
Appropriation Number
Item
Reduction Amount
01100
Job creation services
654,891
01000
Administration
1,520,900
2,175,791
Expenditure reductions for the Michigan Strategic Fund include reductions for functions and programs transferred to the Department of Labor and Economic Growth effective December 7, 2003, pursuant to Executive Order 2003-18.
18. Department of Military and Veterans Affairs
Appropriation Number
Item
Reduction Amount
03016
Special maintenance – state
200,000
03500
Grand Rapids veterans’ home
570,000
03700
D.J. Jacobetti veterans’ home
200,000
970,000
19. Department of Natural Resources
Appropriation
Item
Reduction
Number
Amount
01001
Executive direction
25,000
01093
Unclassified salaries
22,100
01126
Human resources
56,900
01107
Office of financial services
150,000
01105
Program assistance and review
30,000
01104
Office of land and facilities
243,000
01103
Education and outreach
25,000
03116
General law enforcement
160,000
712,000
20. Department of State
Appropriation Number
Item
Reduction Amount
10920
Unclassified positions
5,000
19050
Customer services administration
42,221
19100
Branch operations
128,246
19200
Central records
30,429
45500
Information technology services and projects
82,353
288,249
21. Department of State Police
Appropriation Number
Item
Reduction Amount
11010
Executive direction
59,700
10950
Unclassified positions
20,000
51140
Fleet leasing
700,000
16010
Human resources
19,900
15010
Management services
32,600
22010
Training administration
55,800
37400
Communications
153,300
11210
State program planning and administration
10,071
41140
Traffic safety
17,600
42010
Laboratory operations
291,500
22210
Standards and training
18,100
27010
Fire marshal programs
176,500
28010
Emergency management planning and administration
36,700
32010
Uniform services
1,944,900
37100
Operational support
79,600
37300
Aviation program
39,800
34010
Criminal investigations
600,400
34160
Federal antidrug initiatives
9,900
36220
School bus inspection
9,900
32500
At-post troopers
8,600,000
12,876,271
22. Department of Treasury
Appropriation Number
Item
Reduction Amount
01301
Workers’ compensation insurance premium
32,714
01314
Travel
300,000
01308
Rent and building occupancy charges
100,000
01800
Finance and accounting
300,000
08340
Clean Michigan initiative
17,000,000
17,732,714
C. Portions of appropriations financed with special purpose revenue amounting to $147,899,300.00 contained in the following public acts are reduced as follows:
Reduction
Public Act
Department
Amount
2003 PA
169
Career Development
6,000,000
2003 PA
145
Education
6,100,000
2003 PA
172
Family Independence Agency
773,500
2003 PA
144
Higher Education
63,000,000
2003 PA
Treasury
72,025,800
161
147,899,300
D. The reduction totals for the departments and agencies in Section C include the following appropriation items or are predicated upon the following actions:
1. Career Development - Temporary Assistance for Needy Families - Federal Funds
Appropriation Number
Item
Reduction Amount
08230
Welfare-to-work programs
5,000,000
5,000,000
2. Career Development - Tobacco Settlement Trust Fund
Appropriation Number
Item
Reduction Amount
08221
Council of Michigan foundations
1,000,000
1,000,000
3. Education - Driver Fees Revenue
Appropriation Number
Item
Reduction Amount
03652
Driver education
6,100,000
6,100,000
4. Family Independence Agency - Child Support Enforcement System Penalty Refund Revenue
The amounts in Section 413 of 2003 PA 172 are reduced as follows:
Subsection (1)(a), community-based innovation grants is reduced to:
0
Subsection (1)(f), supervised parenting time centers is reduced to:
0
Subsection (1)(h), school-based demonstration project is reduced to:
0
Subsection (1)(i), at-risk males of color networks is reduced to:
0
Subsection (1)(o), teen pregnancy prevention project is reduced to:
0
5. Higher Education - Michigan Merit Award Trust Fund
Appropriation Number
Item
Reduction Amount
80000
Michigan merit award program
63,000,000
63,000,000
6. Treasury - Sales Tax Revenue
Appropriation Number
Item
Reduction Amount
09466
Statutory state general revenue sharing grants
72,025,800
72,025,800
E. The following general fund-general purpose amounts from work project or capital outlay accounts, totaling $30,992,590.00, are hereby reduced:
Appropriation Number (Appropriation Year)
Item
Reduction Amount
74306 (AY 98)
Capital Outlay: Major special maintenance and remodeling for department of management and budget
6,322
74404 (AY 99)
Capital Outlay: Major special maintenance and remodeling for department of management and budget
448,534
74418 (AY 99)
Capital Outlay: Major special maintenance of remodeling for state agencies
8,929,381
74527 (AY 01)
Capital Outlay: Major special maintenance and remodeling for department of management and budget
2,844,000
29507 (AY 02)
Department of Corrections: Capacity enhancements
7,300,984
19200 (AY 01)
Department of State: Implementation of Uniform Commercial Code standards
251,297
16500 (AY 03)
Family Independence Agency: Child support automation
4,838,400
16250 (AY 03)
Family Independence Agency: Data system enhancement
3,000,000
28180 (AY 01)
Department of State Police: Grants for disaster assistance
1,676,572
09470 (AY 01)
Department of Treasury: Tax increment finance authority
1,197,000
09470 (AY 02)
Department of Treasury: Tax increment finance authority
500,100
30,992,590
The State Budget Director is authorized to take any and all actions necessary to implement the provisions of this Order to reduce expenditures authorized by appropriations as specified above for the fiscal year beginning on October 1, 2003 and ending on September 30, 2004.
This Order is effective upon approval by the appropriations committees of the House of Representatives and the Senate, as provided under Section 391 of the Management and Budget Act, 1984 PA 431, MCL 18.1391.
Given under my hand and the Great Seal of the State of Michigan this 10th day of December, 2003.
JENNIFER M. GRANHOLM GOVERNOR
BY THE GOVERNOR:
SECRETARY OF STATE
