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EXECUTIVE ORDER No.2005 - 3
IMPLEMENTATION OF EXPENDITURE REDUCTIONS UNDERSECTION 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, must 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, 2004 and ending on September 30, 2005, 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 $218,860,000.00 general fund-general purpose and
$8,232,300.00 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 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 $218,860,000.00 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
2004 PA 353
Agriculture
971,000
2004 PA 327
Attorney General
451,000
2004 PA 327
Civil Rights
191,500
2004 PA 327
Civil Service
229,300
2004 PA 358
Community Colleges
4,919,600
2004 PA 349
Community Health
5,941,500
2004 PA 345
Corrections
18,685,700
2004 PA 346
Education
333,000
2004 PA 350
Environmental Quality
2,539,900
2004 PA 344
Family Independence Agency
33,276,200
2004 PA 352
Higher Education
27,551,000
2004 PA 340
History, Arts and Libraries
626,800
2004 PA 327
Information Technology
2,060,000
2004 PA 354
Labor and Economic Growth
1,051,700
2004 PA 327
Management and Budget
9,765,800
2004 PA 341
Military and Veterans Affairs
714,100
2004 PA 347
Natural Resources
383,300
2004 PA 518
School Aid
99,500,000
2004 PA 327
State
609,400
2004 PA 348
State Police
3,455,000
2004 PA 327
Treasury
5,604,200
Total
218,860,000
The Department of Information Technology shall reduce user charges to state agencies by
$4,340,000.00 to reflect 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
02320
Animal health and welfare
70,000
01210
Management services
47,400
02205
Pesticide and plant pest management
340,000
01070
Executive direction
88,400
02530
Laboratory services
135,000
01120
Statistical reporting service
6,600
01130
Emergency management
146,500
30000
Information technology services and projects
73,900
03908
Local conservation districts
63,200
971,000
The amount in Sec. 604(a) of 2004 PA 353, for local conservation districts is reduced to $19,200.00.
2. Department of Attorney General
Appropriation Number
Item
Reduction Amount
01040
Attorney general operations
379,500
06100
Information technology services and projects
71,500
451,000
3. Department of Civil Rights
Appropriation Number
Item
Reduction Amount
01000
Civil rights operations
155,800
02100
Information technology services and projects
35,700
191,500
4. Department of Civil Service
Appropriation Number
Item
Reduction Amount
19200
Agency services
20,000
19300
Human resources/administrative support
110,000
19500
Audit and compliance
74,100
19150
Information technology services and project
25,200
229,300
5. Community Colleges
Appropriation Number
Item
Reduction Amount
07600
Alpena Community College
85,400
07605
Bay de Noc Community College
82,600
07610
Delta College
231,000
07620
Glen Oaks Community College
38,800
07625
Gogebic Community College
70,700
07630
Grand Rapids Community College
290,500
07635
Henry Ford Community College
354,100
07645
Jackson Community College
196,000
07650
Kalamazoo Valley Community College
200,000
07655
Kellogg Community College
157,100
07660
Kirtland Community College
47,700
07665
Lake Michigan College
84,600
07670
Lansing Community College
502,400
07675
Macomb Community College
536,100
07680
Mid Michigan Community College
71,500
07685
Monroe County Community College
69,600
07690
Montcalm Community College
50,300
07615
C.S. Mott Community College
254,000
07695
Muskegon Community College
144,600
07700
North Central Michigan College
49,000
07705
Northwestern Michigan College
147,500
07710
Oakland Community College
338,200
07715
St. Clair County Community College
113,300
07720
Schoolcraft College
198,500
07725
Southwestern Michigan College
106,500
07730
Washtenaw Community College
201,700
07735
Wayne County Community College
260,800
07740
West Shore Community College
37,100
4,919,600
6. Department of Community Health
Appropriation Number
Item
Reduction Amount
01130
Mental health/substance abuse program administration
409,600
01161
Protection and advocacy services support
31,000
01191
Departmental administration and management
315,100
02991
CMHSP, purchase of state services contracts
2,330,000
11230
Executive administration
20,000
12263
Local public health operations
677,000
14230
Family, maternal, and children’s health services administration
75,000
14330
Children’s special health care services administration
80,000
15155
Epidemiology administration
75,000
16230
Laboratory services
134,000
16753
Sexually transmitted disease control management and field support
75,000
16778
Immunization local agreements
500,000
18330
Health systems administration
150,000
22100
Drug control policy
40,000
34010
Medical services administration
250,000
46502
Office of services to aging administration
49,800
80000
Information technology services and projects
730,000
5,941,500
7. Department of Corrections
Appropriation Number
Item
Reduction Amount
01050
Executive direction
235,900
01070
Human resources
392,600
02072
Training
368,100
03112
Worker's compensation
1,600,000
02070
Administrative services
217,800
22250
Field operations
3,592,800
24300
Electronic monitoring center
1,705,900
19335
Community corrections comprehensive plans and services
95,000
19337
Public education and training
16,000
16380
Health care administration
78,200
16381
Hospital and specialty care services
1,698,200
29507
Correctional facilities administration
183,300
46002
Alger maximum correctional facility - Munising
4,400
47002
Baraga maximum correctional facility – Baraga
5,600
49002
Chippewa correctional facility - Kincheloe
135,500
50002
Kinross correctional facility - Kincheloe
12,500
51002
Marquette branch prison - Marquette
1,049,800
54002
Newberry correctional facility - Newberry
5,900
52002
Oaks correctional facility - Eastlake
742,900
55002
Ojibway correctional facility - Marenisco
499,500
56002
Pugsley correctional facility - Kingsley
4,900
83002
Saginaw correctional facility - Freeland
7,600
53002
Standish maximum correctional facility - Standish
5,700
35002
Cooper Street correctional facility - Jackson
7,000
36002
G. Robert Cotton correctional facility - Jackson
8,900
32002
Charles E. Egeler correctional facility - Jackson
10,600
79002
Gus Harrison correctional facility - Adrian
10,800
89002
Macomb correctional facility - New Haven
6,300
87002
Mound correctional facility - Detroit
750,400
34002
Parnall correctional facility - Jackson
6,700
86002
Ryan correctional facility - Detroit
275,700
82002
Robert Scott correctional facility - Plymouth
4,500
33002
Southern Michigan correctional facility - Jackson
7,600
80002
Thumb correctional facility - Lapeer
1,369,200
23322
Special alternative incarceration program - Cassidy Lake
2,100
30522
Jackson area support and services - Jackson
720,900
67002
Bellamy Creek correctional facility - Ionia
593,100
72002
Earnest C. Brooks correctional facility - Muskegon
36,100
48002
Carson City correctional facility - Carson City
847,800
61002
Richard A. Handlon correctional facility – Ionia
6,800
62002
Ionia maximum correctional facility – Ionia
3,400
77002
Lakeland correctional facility - Coldwater
14,500
66002
Muskegon correctional facility - Muskegon
66,000
70002
Pine River correctional facility - St. Louis
54,600
64002
Riverside correctional facility - Ionia
207,600
69002
St. Louis correctional facility - St. Louis
49,100
05083
Information technology services and projects
967,900
18,685,700
8. Department of Education
Appropriation Number
Item
Reduction Amount
01605
Central support
50,000
05101
Early childhood education and family services operations
215,000
07501
School finance and school law operations
21,000
01404
State board/superintendent operations
15,000
03801
Information technology operations
32,000
333,000
9. Department of Environmental Quality
Appropriation Number
Item
Reduction Amount
01128
Financial and business services, salaries and fringe benefits
34,500
01150
Information technology services and projects
110,800
01345
Building occupancy charges
150,000
01346
Rent – privately owned property
50,000
02808
Field permitting and project assistance, salaries and fringe benefits
100,000
02811
Water management, salaries and fringe benefits
180,900
03116
Environmental investigations, salaries and fringe benefits
336,800
03118
Environmental
141,800
investigations, other operational expenses
04318
Pollution prevention and technical assistance, other operational expenses
77,300
04319
Pollution prevention and technical assistance, travel
3,400
04320
Pollution prevention and technical assistance, salaries and fringe benefits
78,900
04620
Air quality programs, salaries and fringe benefits
160,000
04630
Air quality programs, travel
5,000
04706
Hazardous waste management program, salaries and fringe benefits
250,000
04769
Radiological protection program, other operational expenses
82,200
04709
Radiological protection program, salaries and fringe benefits
50,000
04901
Laboratory services, other operational expenses
204,800
04903
Laboratory services, salaries and fringe benefits
474,700
04902
Laboratory services, travel
4,500
06062
Radon grants
44,300
2,539,900
10. Family Independence Agency
Appropriation Number
Item
Reduction Amount
12840
Worker's compensation
495,200
15100
AFC, children's welfare and day care licensure
2,000,000
16100
Information technology services and projects
436,600
16200
Client services system
186,200
16250
Data system enhancement
783,000
16500
Child support automation
2,726,800
32550
Day care services
10,000,000
32610
Homeless shelter contracts
1,700,000
32630
Indigent burial
102,600
47670
Juvenile justice field staff, administration and maintenance
304,000
62910
Food stamp reinvestment
6,500,000
72510
Child care fund
5,300,000
72530
Child care fund administration
100,000
72760
Adoption support services
91,700
83200
Legal support contracts
1,300,000
83400
Child support distribution computer system
1,250,100
33,276,200
The amount in Section 613 of 2004 PA 344 for the maximum allowable charge limit for indigent burials is reduced to $909.00 and distributions are reduced to the following amounts: for funeral directors,
$579.00; for cemeteries or crematoriums, $192.00; and for the provider of the vault, $138.00.
11. Higher Education
Appropriation Number
Item
Reduction Amount
01001
Central Michigan University
1,403,300
01501
Eastern Michigan University
1,357,400
02001
Ferris State University
859,900
02501
Grand Valley State University
1,016,800
04001
Lake Superior State University
222,900
03001
Michigan State University
5,049,100
03501
Michigan Technological University
855,600
04501
Northern Michigan University
803,700
03201
Oakland University
844,800
05001
Saginaw Valley State University
459,000
05501
University of Michigan - Ann Arbor
5,631,100
05801
University of Michigan - Dearborn
433,600
05701
University of Michigan - Flint
372,800
06501
Wayne State University
3,823,800
06001
Western Michigan University
1,946,600
03301
Agricultural experiment station
823,500
03401
Cooperative extension service
1,647,100
27,551,000
12. Department of History, Arts and Libraries
Appropriation Number
Item
Reduction Amount
01100
Management services
29,300
03050
Library of Michigan operations
281,500
02001
Administration (Michigan Council for Arts and Cultural Affairs)
54,800
01400
Film office
5,000
04100
Historical administration and services
183,900
05000
Information technology services and projects
72,300
626,800
The amount in Section 504(1) of 2004 PA 340 for lighthouse preservation grants is reduced to $0.00.
13. Department of Information Technology
The Department of Information Technology shall reduce the Michigan master computing contract general fund expenditures by $2,060,000.00. 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, 2005.
14. Department of Labor and Economic Growth
Appropriation Number
Item
Reduction Amount
01004
Policy development
4,700
11210
Commission for the blind
50,000
03001
Administrative services
40,000
17001
Operations (Tax Tribunal)
306,900
07002
Code enforcement and fire safety
95,100
09520
Employment training services
135,000
09502
Michigan career and technical institute
20,000
08203
Job training programs subgrantees
10,000
30100
Economic development job training grants
250,000
11000
Job creation services
140,000
1,051,700
15. Department of Management and Budget
Appropriation Number
Item
Reduction Amount
12000
Administrative services
45,000
13000
Budget and financial management
508,000
14000
Office of the state employer
52,700
00005
Information technology services and projects
1,072,900
1,678,600
The Department of Management and Budget shall reduce building occupancy general fund expenditures by $360,000.00 and reduce procurement card restricted fund expenditures by $370,000.00. 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, 2005.
The Department of Management and Budget shall reduce the Child Care Information and Referral Services fund balance to $0.00 by depositing $1,254,400.00 to the state general fund and returning
$1,265,500.00 of restricted and federal funds to state agencies. 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, 2005.
The Department of Management and Budget shall reduce the Severance Pay for UAW fund balance to
$0.00 by depositing the unexpended portion of $1,102,800.00 to the state general fund and returning the unexpended portion of $1,404,700.00 of restricted and federal funds to state agencies. 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, 2005.
The Department of Management and Budget shall reduce statewide contractual general fund expenditures by $5,000,000.00. 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, 2005.
16. Department of Military and Veterans Affairs
Appropriation Number
Item
Reduction Amount
01011
Headquarters and armories
185,000
02011
Military training sites and support facilities
516,500
03800
Information technology services and projects
12,600
714,100
17. Department of Natural Resources
Appropriation Number
Item
Reduction Amount
03116
General law enforcement
308,100
05503
Commercial forest reserve
29,100
08914
Information technology services and projects
46,100
383,300
18. School Aid
The general fund amount in Section 11(1) of 2004 PA 518, being section 388.1611 of the Michigan Compiled Laws, for the fiscal year ending September 30, 2005, is reduced to $165,200,000.00.
19. Department of State
Appropriation Number
Item
Reduction Amount
15100
Operations
10,000
19100
Branch operations
412,000
19200
Central records
12,200
19050
Customer services administration
25,400
50100
Building occupancy charges/rent
74,200
50110
Worker’s compensation
6,200
45500
Information technology services and projects
69,400
609,400
20. Department of State Police
Appropriation Number
Item
Reduction Amount
34010
Criminal investigations
1,493,000
41010
Criminal justice information center division
63,200
27200
Fire investigation
125,800
16010
Human resources
64,800
32010
Uniform services
555,000
42220
DNA analysis program
225,000
32500
At-post troopers
387,000
61000
Information technology services and projects
541,200
3,455,000
21. Department of Treasury
Appropriation Number
Item
Reduction Amount
01301
Worker’s compensation insurance premiums
166,900
04501
Local finance
143,200
01960
Human resources optimization user charges
44,300
03501
Student financial assistance programs
200,000
01201
Treasury operations information technology services and projects
549,800
04212
Personal property tax auditors
3,500,000
4,604,200
The Department of Treasury shall reduce contract collection costs authorized in Section 903 of 2004 PA 327 by $1,000,000.00 and thereby increase collections revenue deposited to the general fund. 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, 2005.
C. Portions of appropriations financed with special purpose revenue amounting to $8,232,300.00 contained in the following public acts are reduced as follows:
Reduction
Public Act
Department
Amount
2004 PA 344
Family Independence Agency
7,300,000
2004 PA 354
Labor and Economic Growth
932,300
8,232,300
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. Family Independence Agency - Temporary Assistance for Needy Families - Federal Funds
Appropriation Number
Item
Reduction Amount
32550
Day care services
3,300,000
81150
Michigan housing and community development fund
2,000,000
5,300,000
2. Family Independence Agency - Child Support Incentives - Federal Funds
Appropriation Number
Item
Reduction Amount
83200
Legal support contracts
2,000,000
2,000,000
3. Labor and Economic Growth - Liquor Purchase Revolving Fund
Appropriation Number
Item
Reduction Amount
13002
Liquor licensing and enforcement
932,300
932,300
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, 2004 and ending on September 30, 2005.
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 February, in the year of our Lord, two thousand and five.
JENNIFER M. GRANHOLM
GOVERNOR
BY THE GOVERNOR:
SECRETARY OF STATE
