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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, 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, 2008 and ending on September 30, 2009, 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 $133,952,600.00 general fund-general purpose and
$11,800,000.00 special purpose funds are necessary;
NOW, THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, by virtue of the power and authority vested in the Governor under 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 in expenditures:
A. Portions of general fund-general purpose expenditures authorized by appropriations amounting to $133,952,600.00 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
2008 PA 253 Agriculture $487,400
2008 PA 261 Attorney General 482,300
2008 PA 261 Civil Rights 186,300
2008 PA 246 Community Health 37,857,100
2008 PA 245 Corrections 26,404,000
2008 PA 212 Education 113,300
2008 PA 247 Environmental Quality 667,000
2008 PA 254 History, Arts, and Libraries 322,800
2008 PA 248 Human Services 63,261,000
2008 PA 251 Labor and Economic Growth 856,500
2008 PA 261 Management and Budget 1,026,300
2008 PA 214 Military and Veterans Affairs 632,300
2008 PA 252 Natural Resources 159,400
2008 PA 261 State 398,000
2008 PA 261 Treasury 1,098,900 TOTAL $133,952,600
B. The reduction totals for the departments in Section A include the following appropriation items or are predicated upon the following actions:
1. Department of Agriculture Appropriation
Number Item Reduction Amount
01420 Rent and building occupancy charges 240,000 02205 Pesticide and plant pest management 100,000
03120
Environmental stewardship
100,000
03250
Technical assistance match
47,400
487,400
2. Department of Attorney General
Appropriation
Number Item Reduction Amount 01040 Attorney general operations 482,300
482,300
3. Department of Civil Rights Appropriation
Number Item Reduction Amount 01000 Civil rights operations156,300
02100 Information technology services and projects 30,000 186,300
4. Department of Community Health Appropriation
Number Item Reduction Amount
01130 Mental health/substance abuse program administration 300,000 01191 Departmental administration and management 200,000
02965 Medicaid mental health services 299,200 04000 Center for forensic psychiatry1,000,000
14230 Family, maternal, and children’s health services administration 158,000
14355 Medical care and treatment 9,086,100
16230 Laboratory services 150,000
18330 Health systems administration 300,000
33500 Hospital services and therapy 3,123,500
33540 Pharmaceutical services 233,900
33550 Health plan services 3,258,900
33630 Single point of entry 1,000,000
33680 Long-term care services 18,340,900
34010 Medical services administration 406,600
37,857,100
5. Department of Corrections Appropriation
Number Item Reduction Amount 02072 New custody staff training 3,611,000
05083 Information technology services and projects 61,800 17520 Southwestern region clinical complexes 2,379,000
29005 MPRI education program 716,900
29511 Prison food service 3,158,500
29512 Transportation 111,100
74002 Michigan reformatory – Ionia10,555,500
77002 Lakeland correctional facility – Coldwater 5,810,200 26,404,000
6. Department of Education Appropriation
Number Item Reduction Amount
01605
Central support 37,500
01610
Terminal leave payments
15,000
01623 Building occupancy charges – property management services 17,300 07501 School finance and school law operations 43,500
113,300
7. Department of Environmental Quality Appropriation
Number Item Reduction Amount 01001 Executive direction 50,000
01093 Unclassified salaries 50,000
02808 Field permitting and project assistance 87,500 03326 Mineral wells management 1,500
04320 Pollution prevention and technical assistance 24,600
04541 Contaminated site investigation, cleanup, and revitalization 31,700 04620 Air quality programs 130,000
04706 Hazardous waste management program 18,000
04709 Radiological protection program 16,000
04715 Underground storage tank program 14,000
04718 Aboveground storage tank program 5,000
04726 Solid waste management program` 9,500
04918 Water withdrawal assessment program 166,000
06051 Water pollution control and drinking water revolving fund 63,200 667,000
8. Department of History, Arts, and Libraries Appropriation
Number Item Reduction Amount
01100 Management services 29,100
03050 Library of Michigan operations 202,900
04100 Historical administration and services 68,600
04180 Thunder Bay national marine sanctuary and underwater preserve 2,500 07511 Mackinac Island park operation 17,400
07516 Historical facilities system 2,300
322,800
9. Department of Human Services Appropriation
Number Item Reduction Amount
11040 Contractual services, supplies, and materials – Executive Operations 100,000 11400 Electronic benefit transfer EBT 100,000
12080 Payroll taxes and fringe benefits 7,494,100
15100 AFC, children’s welfare and day care licensure 3,300,000 16100 Information technology services and projects 102,300 16500 Child support automation 170,000
32500 Family independence program 23,287,200
32550 Day care services 12,113,400
47610 Medium security juvenile services 1,000,000 62610 Field staff, salaries and wages 10,647,400 72750 Adoption subsidies 4,746,600
81450 Employment and training support services 200,000 63,261,000
10. Department of Labor and Economic Growth Appropriation
Number Item Reduction Amount
06000 Workforce programs administration 150,000
11601 Administration 600,000
11603 Board of magistrates and appellate commission 31,500 27010 Fire marshal program 15,000
27120 Fire fighters training council 30,000
27130 Fire safety program 30,000
856,500
11. Department of Management and Budget Appropriation
Number Item Reduction Amount
00005 Information technology services and projects (Department of Management and Budget) 207,200
12000 Administrative services 3,800
13000 Budget and financial management 132,200 14000 Office of the state employer 22,600
16000 Business support services 74,900
19150 Information technology services and projects (Civil Service Commission) 46,100 19300 Executive direction 262,500
19900 Human resources operations 237,000
986,300
The Department of Management and Budget shall reduce building occupancy general fund expenditures by $40,000.00. 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, 2009.
12. Department of Military and Veterans Affairs Appropriation
Number Item Reduction Amount
01011 Headquarters and armories 75,000
02011 Military training sites and support facilities 57,800 03011 Departmentwide accounts 52,500
03500 Grand Rapids veterans’ home319,100
03700 D. J. Jacobetti veterans’ home 100,600
03800 Information technology services and projects 200
05525 Veterans’ affairs directorate administration 27,100
632,300
13. Department of Natural Resources Appropriation
Number Item Reduction Amount 01001 Executive direction 10,200
01005 Communications 6,600
01092 Commission 500
01093 Unclassified salaries 1,300
01105 Internal audit services 600
01106 Budget and support services 3,200
01107 Financial services 4,100
01108 Grants management 3,600
02020 Land and facilities 6,900
02129 Cooperative resource programs 14,000
02132 Wildfire protection 50,100
02207 Natural resources heritage 15,100
02302 Water withdrawal assessment program 28,100
03116 General law enforcement 15,100
159,400
14. Department of State Appropriation
Number Item Reduction Amount
3,70010000
Operations – Executive direction
3,800
14100
Operations – Department services
52,400
15100
Operations – Regulatory services
40,600
19100
Branch operations 183,700
19300
Central operations 113,800
45500
Information technology services and
projects
15.
398,000
Department of Treasury
Appropriation
Number Item Reduction Amount
01201 Treasury operations information technology services and projects 13,400
01308 Rent and building occupancy charges – property management services 250,000 03010 Economic development job training grants (Michigan Strategic Fund) 447,000 09517 Renaissance zone reimbursement 388,500
1,098,900
C. Portions of appropriations financed with special purpose revenue amounting to $11,800,000.00 contained in the following public acts are reduced as follows:
Reduction Public Act Department Amount
2008 PA 245 Corrections $1,800,000
2008 PA 213 Higher Education 10,000,000
TOTAL 11,800,000
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. Department of Corrections – Trooper Recruit School Fund Appropriation
Number Item Reduction Amount
29000 Trooper recruit school fund 1,800,000
1,800,000
The amount in Section 926(4) of 2008 PA 245 is reduced to $0.00.
2. Higher Education – Michigan Merit Award Trust Fund Appropriation
Number Item Reduction Amount
80100 Michigan promise grant program 10,000,000
10,000,000
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, 2008 and ending on September 30, 2009.
This Order is effective upon approval by the appropriations committees of the House of Representatives and the Senate, as provided under Section 20 of Article V of the Michigan Constitution of 1963 and 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, in the year of our Lord, two thousand and eight.
JENNIFER M. GRANHOLM
GOVERNOR
BY THE GOVERNOR:
SECRETARY OF STATE
