EXECUTIVE ORDER No.2005 - 3

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, 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

135px,000

01120

Statistical reporting service

6,600

0113px0

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

113px,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

0113px0

Mental health/substance abuse program administration

409,600

01161

Protection and advocacy services support

31,000

01191

Departmental administration and management

315,100

0299px1

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

151px55

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

135px,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

0280px8

Field permitting and project assistance, salaries and fringe benefits

100,000

0281px1

Water management, salaries and fringe benefits

180,900

03116

Environmental investigations, salaries and fringe benefits

336,800

03118

Environmental investigations, other operational expenses

141,800

04318

Pollution prevention and technical assistance, other operational expenses

77,300

 

04319

Pollution prevention and technical assistance, travel

3,400

0432px0

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

151px00

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

281px,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

135px,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

151px00

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

125px,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



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