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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 revenues 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 $221,864,600.00 general fund-general purpose and
$127,472,600.00 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
$221,864,600.00 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
$3,455,100
2008 PA 261
Attorney General
1,729,800
2008 PA 261
Civil Rights
655,800
2008 PA 246
Community Health
53,095,500
2008 PA 245
Corrections
10,470,400
2008 PA 212
Education
363,500
2008 PA 251
Energy, Labor and Economic Growth
13,068,900
2008 PA 247
Environmental Quality
5,165,100
2008 PA 261
Executive Office
279,200
2008 PA 254
History, Arts, and Libraries
1,815,800
2008 PA 248
Human Services
97,484,800
2008 PA 261
Management and Budget
2,987,000
2008 PA 214
Military and Veterans Affairs
2,234,800
2008 PA 252
Natural Resources
572,900
2008 PA 268
School Aid
7,000,000
2008 PA 261
State
1,335,000
2008 PA 249
State Police
15,169,400
2008 PA 261
Treasury
4,981,600
TOTAL $221,864,600
B. The reduction totals for the departments and offices in Section A include the following appropriation items or are predicated upon the following actions:
1. Department of Agriculture Appropriation
Number Item Reduction Amount
01050
Unclassified positions
35,000
01210
Management services
150,000
01275
Internal audit services
47,500
01420
Rent and building occupancy charges
513,200
02205
Pesticide and plant pest management
150,000
02365
Bovine tuberculosis program
1,466,800
02530
Laboratory services
100,000
03120
Environmental stewardship
345,000
03908
Local conservation districts
160,000
30000
Information technology services and
projects
89,300
3,056,800
2. Department of Attorney General
Appropriation
Number Item Reduction Amount
01040 Attorney general operations
1,259,600
06100 Information technology services and projects
6,400
3. Department of Civil Rights
1,266,000
Appropriation
Number Item Reduction Amount
01000 Civil rights operations466,700
02100 Information technology services and projects 22,500 489,200
4. Department of Community Health Appropriation
Number Item Reduction Amount
01130 Mental health/substance abuse program administration 92,000 01161 Protection and advocacy services support 97,200
01176 Mental health initiatives for older persons 262,300 01751 Severance pay 216,900
02966 Community mental health non-Medicaid services 10,000,000 02967 Respite services 250,000
02969 Mental health court pilot programs 800,000 04000 Center for forensic psychiatry300,000
11230 Public health administration 69,000
11232 Worker’s compensation program 900,000
11256 Rural health services 29,000
11300 Office of long-term care and supports and services 90,000 11364 African-American male health initiative 42,800
11374 Injury control intervention project 200,000
12263 Local public health operations 1,535,600
12273 Implementation of 1993 PA 133, MCL 333.17015 30,000
13461 Community substance abuse prevention, education, and treatment programs 1,539,800 13467 State disability assistance program substance abuse services 106,700
13469 Methamphetamine cleanup fund 40,000
14259 Special projects 12,500
14276 Migrant health care 34,000
14281 Family planning local agreements 75,000
14289 Prenatal care outreach and service delivery support 202,800 14355 Medical care and treatment 275,000
15158 Asthma prevention and control 55,700
16753 Sexually transmitted disease control management and field support 582,900 16773 Sexually transmitted disease control local agreements 137,500
16778 Immunization local agreements 350,000
33500 Hospital services and therapy 5,310,200
33520 Physician services 842,100
33540 Pharmaceutical services 1,616,100
33550 Health plan services 8,062,300
33570 Transportation 1,271,100
33580 Auxiliary medical services 537,800
33600 Ambulance services 147,900
33630
Single point of entry 2,100,000
33660
Dental services 1,433,600
33680
Long-term care services 8,467,000
33810
Personal care services 197,000
34500
Health information technology initiatives
1,072,600
46511
Community services 661,900
46512
Nutrition services 479,400
46513
Senior companion volunteer program85,900
46516
Foster grandparent volunteer program
119,600
46517
Retired and senior volunteer program
33,600
46519 Senior olympics 20,000
50,784,800
The amount in Section 412 of 2008 PA 246 is reduced by $157,105.00.
The amount in Section 482 of 2008 PA 246 is reduced by $11,251.00.
The amount in Section 1031(1) of 2008 PA 246 is reduced to $200,000.00. The amount in Section 1694 of 2008 PA 246 is reduced to $521,300.00.
The amount in Section 1742 of 2008 PA 246 is reduced to $750,000.00.
5. Department of Corrections Appropriation
Number Item Reduction Amount 01050 Executive direction 1,900
02060 Operations support administration 3,900
17510 Northern region clinical complexes 6,500
17530 Southeastern region clinical complexes 8,200
22250 Field operations 53,400
23322 Special alternative incarceration program – Cassidy Lake 10,100 25281 Community re-entry centers 24,000
29507 Correctional facilities administration 5,100
29512 Transportation 403,600
30522 Jackson area support and services – Jackson 25,100
32002 Charles E. Egeler correctional facility – Jackson 13,600 34002 Parnall correctional facility – Jackson 12,000
35002 Cooper Street correctional facility – Jackson 16,500
36002 G. Robert Cotton correctional facility – Jackson 11,500 46002 Alger maximum correctional facility – Munising 12,300
47002 Baraga maximum correctional facility – Baraga 12,200 48002 Carson City correctional facility – Carson City 15,200
49002 Chippewa correctional facility – Kincheloe 17,400 50002 Kinross correctional facility – Kincheloe 28,200 51002 Marquette branch prison – Marquette19,000
52002 Oaks correctional facility – Eastlake 12,800
53002 Standish maximum correctional facility – Standish 25,100 54002 Newberry correctional facility – Newberry 15,200
55002 Ojibway correctional facility – Marenisco 12,600 56002 Pugsley correctional facility – Kingsley 13,200
61002 Richard A. Handlon correctional facility – Ionia 13,800 62002 Ionia maximum correctional facility – Ionia 6,500
66002 Muskegon correctional facility – Muskegon 11,800 67002 Bellamy Creek correctional facility – Ionia 7,700 69002 St. Louis correctional facility – St. Louis 15,300 70002 Pine River correctional facility – St. Louis 7,600
72002 Earnest C. Brooks correctional facility – Muskegon 26,600 74002 Michigan reformatory – Ionia25,400
75002
Huron Valley correctional complex – Ypsilanti
17,100
77002
Lakeland correctional facility – Coldwater 17,700
79002
Gus Harrison correctional facility – Adrian 12,900
80002
Thumb correctional facility – Lapeer 7,100
82002
Robert Scott correctional facility – Plymouth
14,100
83002
Saginaw correctional facility – Freeland 9,200
86002
Ryan correctional facility – Detroit 8,600
87002
Mound correctional facility – New Haven 9,100
89002
Macomb correctional facility – New Haven 10,900
1,000,000
6. Department of Education
Appropriation
Number Item Reduction Amount 01605 Central support 16,500
04201 Special education operations 57,500
06101 School improvement operations 218,500 07501 School finance and school law operations 3,500
296,000
7. Department of Energy, Labor and Economic Growth Appropriation
Number Item Reduction Amount 06000 Workforce programs administration 100,000
07304
Commission on Spanish-speaking affairs
15,000
08203
Workforce training programs subgrantees
7,836,600
08270 Focus: HOPE 86,000
09520 Michigan rehabilitation services 100,000
09550 Vocational rehabilitation independent living 500,000
11210 Commission for the blind 23,700
11601 Administration 768,000
11603 Board of magistrates and appellate commission 304,100 11604 Wage and hour division 12,000
14003 Michigan housing and community development fund 2,163,400 18003 Michigan nursing corps 454,400
27010 Fire marshal program 50,000
27120 Fire fighters training council 495,000
12,908,200
The amount in Section 431(7) of 2008 PA 251 is reduced to $4,545,600. The amount in Section 432a(1) of 2008 PA 251 is reduced to $7,163,400. The amounts in Section 432a(1)(b) of 2008 PA 251 are reduced to $0.00. The amount in Section 432a(5) of 2008 PA 251 is reduced to $7,163,400. The amount in Section 432a(6) of 2008 PA 251 is reduced to $7,163,400. The amount in Section 438(1) of 2008 PA 251 is reduced to $0.00.
8. Department of Environmental Quality Appropriation
Number Item Reduction Amount
01017
Office of the Great Lakes
41,300
01345
Building occupancy charges
874,900
03326
Minerals wells management
73,400
04320 Pollution prevention and technical assistance 281,800 04620 Air quality programs 220,000
04709 Radiological protection program 50,000
04715 Underground storage tank program 821,900
04718 Aboveground storage tank program 175,000 04912 Drinking water and environmental health 60,000 04918 Water withdrawal assessment program 80,000
06051 Water pollution control and drinking water revolving fund 2,196,200 4,874,500
9. Executive Office Appropriation
Number Item Reduction Amount 00139 Executive office 197,200
197,200
10. Department of History, Arts, and Libraries Appropriation
Number Item Reduction Amount 01620 Cultural economic development 24,000
02001 Administration 26,000
02002 Arts and cultural grants 286,000
03050 Library of Michigan operations 344,500
03150 State aid to libraries 400,000
03300 Subregional state aid 20,200
04100 Historical administration and services 312,100
04180 Thunder Bay national marine sanctuary and underwater preserve 50,000 07511 Mackinac Island park operation 57,000
07516 Historical facilities system 57,000
1,576,800
11. Department of Human Services Appropriation
Number Item Reduction Amount
11300 Michigan community service commission 50,000
11350 Demonstration projects 11,000
12080 Payroll taxes and fringe benefits 5,805,500
15100 AFC, children’s welfare and day care licensure 3,500,000 16100 Information technology services and projects 165,000 16500 Child support automation 6,530,000
32500 Family independence program 1,778,300
32540 State supplementation 9,628,300
32550 Day care services 994,100
32580 State supplementation administration 297,300
32630 Indigent burial953,300
32640 Emergency services allocations local offices 2,300,000 47290 Child care fund 20,000,000
47350 Community support services 100,000
62610 Field staff, salaries and wages 11,612,700 62910 Food stamp reinvestment 1,700,000
72150 Subsidized guardianship 3,974,000
72240 Family preservation and prevention services 145,700 72360 Black child and family institute 50,000
72600 ECIC, early childhood investment corporation 75,000 72760 Adoption support services 1,000,000
72810 Bridges toward responsible adulthood 200,000
72830 Communities in schools 150,000
72840 Kent county child welfare demonstration project 300,000 81450 Employment and training support services 10,439,000 83200 Legal support contracts 600,000
83300 Child support incentive payments 9,570,000
83400 State disbursement unit 500,000
92,429,200
The amount in Section 309 of 2008 PA 248 is reduced to $89,000.00.
The amount in Section 613 of 2008 PA 248 for the maximum allowable reimbursement limit for indigent burials is reduced to $700.00 and distributions are reduced to the following amounts: for funeral directors, $435.00; for cemeteries or crematoriums, $165.00; and for the provider of the vault,
$100.00.
The amount in Section 658 of 2008 PA 248 is reduced to $94,900.00. The amount in Section 668(1) of 2008 PA 248 is reduced to $187,500.00. The amount in Section 693 (1) of 2008 PA 248 is reduced to $0.00.
12. Department of Management and Budget Appropriation
Number Item Reduction Amount
00005 Information technology services and projects (Department of Management and Budget) 879,000
02816 Office of children’s ombudsman 110,000
11000 Executive operations 5,000
12000 Administrative services 5,000
13000 Budget and financial management 160,000
16000 Business support services 105,000
19150 Information technology services and projects (Civil Service Commission) 200,000 19200 Agency services 325,600
19300 Executive direction 150,000
19500 Audit and compliance 265,500
19900 Human resources operations 160,100
2,365,200
13. Department of Military and Veterans Affairs Appropriation
Number Item Reduction Amount
01011 Headquarters and armories 200,000
02011 Military training sites and support facilities 350,000 03016 Special maintenance – state 200,000
03700 D.J. Jacobetti veterans’ home 150,000
03800 Information technology services and projects 3,200 05010
American legion 226,500
05011 Disabled American veterans 187,200
05012 Marine corps league 86,000
05013 American veterans of WW II and Korea 118,700 05014 Veterans of foreign wars 226,400
05015 Michigan paralyzed veterans of America 42,500 05016 Purple heart 40,400
05019 Polish legion of American veterans 10,500 05020 Jewish veterans of America 10,500
05021 State of Michigan council – Vietnam veterans of America 40,800 05023 Catholic war veterans 10,500
30000 Special maintenance, remodeling and additions 126,000 2,029,200
14. Department of Natural Resources Appropriation
Number Item Reduction Amount
01001
Executive direction
10,000
01005
Communications
25,000
01092
Commission 2,000
01093
Unclassified salaries
5,000
01106 Budget and support services 2,000
01107
Financial services
25,000
01108
Grants management
50,000
02132
Wildfire protection
14,000
02156
Forest recreation
70,800
02207
Natural resources heritage
46,800
02211
Wildlife management 36,400
02302 Water withdrawal assessment program 46,900
03116 General law enforcement 82,300
08914 Information technology services and projects 2,400 418,600
15. School Aid
The general fund amount in Section 11(1) of the State School Aid Act of 1979, 1979 PA 94, MCL 388.1611(1), for the fiscal year ending on September 30, 2009, is reduced to $33,800,000.00.
16. Department of State Appropriation
Number Item Reduction Amount 14100 Department services – operations 155,800
15100 Regulatory services – operations 255,000
19100 Branch operations 534,400
19300 Central operations 100,000
45500 Information technology services and projects 300
1,045,500
17. Department of State Police Appropriation
Number Item Reduction Amount 15010 Management services 268,400
22210 Standards and training 600,000
32010 Uniform services 1,500,000
32500 At-post troopers 4,768,400
42010 Laboratory operations 3,811,000
51140 Fleet leasing 2,200,000
61000 Information technology services and projects 860,000 14,007,800
18. Department of Treasury Appropriation
Number Item Reduction Amount
01201 Treasury operations information technology services and projects 75,500
01308 Rent and building occupancy charges – property management services 43,600 01314 Travel 100,000
01900 Department services 12,500
01950 Program management 6,300
01960 Mail operations 10,400
02440 Property tax appeal program 500,000
02450 Revenue enhancement program 300,000
02480 Michigan business tax implementation 1,300,000
03501 Student financial assistance programs 23,800 04201 Supervision of the general property tax law 406,000 04501 Local finance 28,200
06301 Commercial forest reserve 16,900 06303 Swamp and tax reverted lands 5,300
09316 Senior citizen cooperative housing tax exemption program 316,500 09430 Grants to counties in lieu of taxes 1,300
09450 Special grants 106,000
30100 Economic development job training grants 1,166,200 4,418,500
The amount in Section 952 of 2008 PA 261 is reduced to $106,000.00.
19. Expenditure Reductions – Furlough Days
General fund/general purpose expenditures authorized by appropriations contained in the following public acts are reduced by the amounts listed for the following departments and offices resulting from the temporary layoff of personnel. The State Budget Director is authorized to take any and all related actions necessary to properly record the expenditure reductions resulting from the temporary layoff of personnel, including federal and state restricted revenue expenditures, as part of the financial transactions for the fiscal year ending September 30, 2009.
Public Act
Department Amount
2008 PA 253
Agriculture $398,300
2008 PA 261
Attorney General 463,800
2008 PA 261
Civil Rights 166,600
2008 PA 246
Community Health 2,310,700
2008 PA 245
Corrections 9,470,400
2008 PA 212
Education 67,500
2008 PA 251
Energy, Labor and Economic Growth
160,700
2008 PA 247
Environmental Quality 290,600
2008 PA 261
Executive Office 82,000
2008 PA 254
History, Arts, and Libraries 239,000
2008 PA 248
Human Services 5,055,600
2008 PA 261
Management and Budget 621,800
2008 PA 214
Military and Veterans Affairs 205,600
2008 PA 252
Natural Resources 154,300
2008 PA 261
State 289,500
2008 PA 249
State Police 1,161,600
2008 PA 261
Treasury 563,100
TOTAL $21,701,100
C. Portions of appropriations financed with special purpose revenue amounting to $117,522,600.00 contained in the following public acts are reduced as follows:
Reduction
Public Act
2008 PA 253
Department Amount
Agriculture $7,677,800
2008 PA 246
Community Health 4,592,600
2008 PA 251
Energy, Labor and Economic Growth
14,000,000
2008 PA 213
Higher Education 5,000,000
2008 PA 248
Human Services 23,443,200
2008 PA 275
Transportation 12,000,000
2008 PA 261
Treasury 50,809,000
TOTAL $117,522,600
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 Agriculture – State Services Fee Fund
Appropriation
Number Item Reduction Amount
03820 Office of racing commissioner 3,811,000 03920 Premiums – county and state fairs 1,466,800
5,277,800
2. Department of Agriculture – Agriculture Equine Industry Development Fund Appropriation
Number Item Reduction Amount
03910 Purses and supplements – fairs/licensed tracks 1,000,000 03930 Thoroughbred program 1,400,000
2,400,000
3. Department of Community Health – Healthy Michigan Fund Appropriation
Number Item Reduction Amount 11268 Minority health grants and contracts 225,000
11352 Cancer prevention and control program 397,700 11360 Smoking prevention program 272,500
11363 Diabetes and kidney program 377,500
11369 Physical fitness, nutrition and health 280,000 11380 Chronic disease prevention 275,000
11384 Alzheimer’s information network 116,000
11387 Michigan Parkinson’s foundation 20,000
11390 Tobacco tax collection and enforcement 152,500
11393 Morris Hood Wayne State University diabetes outreach 160,000 12271 Local health services 55,000
14251 Pregnancy prevention program 21,400
14254 Childhood lead program 250,000
14259 Special projects 275,000
14262 Local MCH services 61,500
14274 Dental programs 37,500
14281 Family planning local agreements 102,000
16758 Immunization program management and field support 81,600 16778 Immunization local agreements 437,500
33860 Special Medicaid reimbursement 75,000
46512 Nutrition services 167,000
3,839,700
The amount in Section 1010 of 2008 PA 246 is reduced to $150,000.00. The amount in Section 1109(1) of 2008 PA 246 is reduced by $37,500.00. The amount in Section 1132 of 2008 PA 246 is reduced to $300,000.00.
4. Department of Community Health – Michigan Health Initiative Fund
Appropriation
Number Item Reduction Amount
11356 AIDS and risk reduction clearinghouse and media campaign 540,400 540,400
5. Department of Community Health – Merit Award Trust Fund Appropriation
Number Item Reduction Amount
46520 Respite care program 212,500
212,500
The amount in Section 1406 of 2008 PA 246 is reduced to $4,787,500.00.
6. Department of Energy, Labor and Economic Growth – Temporary Assistance for Needy Families – Federal Funds
Appropriation
Number Item Reduction Amount
09530 Jobs, education and training program 14,000,000 14,000,000
The amount in Section 442(1) of 2008 PA 251 is reduced to $7,000,000.00.
7. Higher Education – Michigan Merit Award Trust Fund Appropriation
Number Item Reduction Amount
80100 Michigan promise grant program 5,000,000
5,000,000
8. Department of Human Services – Temporary Assistance for Needy Families – Federal Funds Appropriation
Number Item Reduction Amount 32550 Day care services 9,530,000
32630 Indigent burial71,700
72240 Family preservation and prevention services 954,300 72270 Families first 750,000
72290 Strong families, safe children 2,000,000
72310 Zero to three 1,000,000
72320 Family group discussion making 802,200
72340 Community protection and permanency 4,000,000
72400 Teenage parent counseling 1,300,000
81450 Employment and training support services 60,000 81460 Marriage initiative 950,000
81470 Fatherhood initiative 800,000
82380 Community services block grants 1,200,000
23,418,200
The amount in Section 420 of 2008 PA 248 is reduced to $30,000.00. The amount in Section 424 of 2008 PA 248 is reduced to $150,000.00.
9. Department of Human Services – Child Care Development Fund – Federal Funds
Appropriation
Number Item Reduction Amount 32550 Day care services 25,000
25,000
The amount in Section 676(2) of 2008 PA 248 is reduced to $0.00.
10. Department of Transportation – Transportation Economic Development Fund Appropriation
Number Item Reduction Amount
87210 Target industries/economic redevelopment 12,000,000
12,000,000
11. Department of Treasury – Delinquent Tax Collection Revenue Appropriation
Number Item Reduction Amount
01301 Worker’s compensation insurance premium 134,000
01870 Collections 100,000
01950 Program management 25,000
259,000
12. Department of Treasury – Michigan Merit Award Trust Fund Appropriation
Number Item Reduction Amount 03216 Michigan education savings program 100,000
100,000
13. Department of Treasury – Sales Tax Revenue Appropriation
Number Item Reduction Amount
09466 Statutory state general revenue sharing grants 41,400,000 41,400,000
14. Department of Treasury – Michigan Strategic Fund – 21st Century Jobs Trust Fund
Appropriation
Number Item Reduction Amount
20000 Jobs for Michigan investment program – 21st century jobs fund 9,050,000 9,050,000
E. The following 21st Century Jobs Trust Fund work project accounts, totaling $9,950,000.00, are hereby reduced:
Appropriation Number Reduction (Appropriation Year) Item Amount
14530 (AY 06) Treasury 5,000,000
Agriculture development fund
20501 (AY 06) Michigan Strategic Fund 4,950,000 Grant to Michigan forest finance
authority 9,950,000
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 fifth day of May, in the year of our Lord, two thousand nine.
JENNIFER M. GRANHOLM
GOVERNOR
BY THE GOVERNOR:
SECRETARY OF STATE
