EXECUTIVE ORDER No.2005 - 7

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 $295,055,700.00 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 appropriating committee, order the following reductions:

A.  Portions of general fund-general purpose appropriations amounting to $295,055,700.00 contained in the following public acts are 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     1,663,500
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 63,592,800
2004 PA 345 Corrections 19,003,800
2004 PA 346 Education  333,000
2004 PA 350  Environmental Quality 2,539,900
2004 PA 352 Higher Education 35,233,300
2004 PA 340 History, Arts and Libraries  626,800
2004 PA 344 Human Services   33,276,200
2004 PA 327 Information Technology  2,060,000
2004 PA 354 Labor and Economic Growth  1,051,700
2004 PA 327 Management and Budget  9,617,300
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 10,609,400
2004 PA 348 State Police  3,455,000
2004 PA 327 Treasury  5,604,200
Total  295,055,700

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

766,400

03908 Local conservation districts

63,200

 

1,663,500

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 projects

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

02965 Medicaid mental health services

5,880,200

02970 Medicaid substance abuse services

119,800

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

14355 Medical care and treatment

980,000

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

33500 Hospital services and therapy

23,307,400

33520 Physician services

1,730,900

33530 Home health services

68,700

33540 Pharmaceutical services

3,618,100

33550 Health plan services

13,665,000

33580 Auxiliary medical services

16,400

33600 Ambulance services

79,400

33680 Long-term care services

8,185,400

34010 Medical services administration

250,000

46502 Office of services to aging administration

49,800

80000 Information technology services and projects

730,000

 

63,592,800

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

25280

Corrections centers

318,100

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

 

19,003,800

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 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

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. 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

9,429,700

06001 Western Michigan University

1,946,600

03524 Dental clinics grant

4,547,000

 

35,233,300

11.    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.

12. Department of Human Services

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.

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

03010

Economic development job training grants

250,000

01100

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 $211,500.00 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 The State School Aid Act of 1979, 1979 PA 94, MCL 388.1611(1), 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

10,412,000

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

 

10,609,400

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 premium

166,900

04501 Local finance

143,200

01931 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 as a result 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  Human Services 
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. Department of Human Services - 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. Department of Human Services - Child Support Incentives - Federal Funds

Appropriation
Number
Item Reduction Amount
83200 Legal support contracts

2,000,000

 

2,000,000

3. Department of Labor and Economic Growth - Liquor Purchase Revolving Fund

Appropriation
Number
Item Reduction Amount

13002

Liquor licensing and enforcement

932,300

 

932,300

E. 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 23rd day of March, in the year of our Lord, two thousand and five.

 _______________________________________

JENNIFER M. GRANHOLM
GOVERNOR
BY THE GOVERNOR:

______________________________________

SECRETARY OF STATE



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