EXECUTIVE ORDER No.2003 - 23

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, 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, 2003 and ending on September 30, 2004, 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 $231,930,172.00  general fund-general purpose and $147,899,300.00 special purpose funds are necessary;

NOW, THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, pursuant to the 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 $200,937,582.00 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
2003 PA 157 Agriculture 1,119,800
2003 PA 161 Attorney General    750,000
 2003 PA 193  Capital Outlay 29,000,000
2003 PA 169 Career Development 371,726
2003 PA 161 Civil Rights 463,042
2003 PA 161  Civil Service  220,063
2003 PA 146  Community Colleges  12,434,500
2003 PA 159 Community Health 5,090,400
2003 PA 167 Consumer and Industry Services 704,382
2003 PA 154 Corrections  6,044,819
2003 PA 145 Education  332,800
2003 PA 171 Environmental Quality 3,135,525
2003 PA 172 Family Independence Agency 32,260,400
2003 PA 144 Higher Education 73,172,000
2003 PA 160 History, Arts and Libraries  583,100
2003 PA 161 Management and Budget  500,000
2003 PA 169 Michigan Strategic Fund  2,175,791
2003 PA 156 Military and Veterans Affairs  970,000
2003 PA 147 Natural Resources  712,000
2003 PA 161 State  288,249
2003 PA 149  State Police  12,876,271
2003 PA 161 Treasury  17,732,714
  200,937,582

The Department of Information Technology shall reduce user charges to state agencies consistent with 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

01005

Commissions and boards

10,000

01070

Executive direction

85,000

01210

Management services

115,433

01250

Agriculture development, marketing and emergency management

120,200

02205

Pesticide and plant pest management

312,918

02320

Animal health and welfare

91,783

02490

Food safety and quality assurance

67,133

02530

Laboratory analysis program

86,433

03120

Environmental stewardship

170,000

03908

Local conservation districts

60,900

 

1,119,800

The amount in Section 604(a) of 2003 PA 157 for Local Conservation District training is reduced to $20,300.00.

2.       Department of Attorney General

Appropriation
Number

Item

Reduction Amount

01040

Attorney general operations

722,100

05000

Prosecuting attorneys coordinating council

27,900

 

750,000

The amount in Section 307(3) of 2003 PA 161 for carryforward of unexpended funds is reduced to $200,000.00.

3. Capital Outlay

Appropriation
Number

Item

Reduction Amount

01738

State building authority rent - state agencies

13,342,700

01739

State building authority rent - department of corrections

7,118,900

01737

State building authority rent - universities

8,538,400

 

29,000,000

4.       Department of Career Development

Appropriation
Number

Item

Reduction Amount

03001

Administration

61,533

03012

Workers' compensation

2,309

09520

Employment training services

218,378

09502

Michigan career and technical institute

34,966

07303

Career and technical education

20,344

07301

Postsecondary education

21,355

07302

Adult education

5,429

07304

Commission on Spanish-speaking affairs

7,412

 

371,726

Expenditure reductions for the Department of Career Development include reductions for functions and programs transferred to the Department of Labor and Economic Growth effective December 7, 2003, pursuant to Executive Order 2003-18.

5.       Department of Civil Rights

Appropriation
Number

Item

Reduction Amount

01000

Civil rights operations

463,042

 

463,042

6.       Department of Civil Service

Appropriation
Number

Item

Reduction Amount

19200

Agency services

150,000

19300

Human resources/administrative support

70,063

 

220,063

7. Community Colleges

Appropriation
Number

Item

Reduction Amount

07600

Alpena Community College

215,900

07605

Bay de Noc Community College

208,700

07610

Delta College

583,800

07620

Glen Oaks Community College

98,000

07625

Gogebic Community College

178,600

07630

Grand Rapids Community College

734,400

07635

Henry Ford Community College

895,000

07645

Jackson Community College

495,400

07650

Kalamazoo Valley Community College

505,500

07655

Kellogg Community College

397,100

07660

Kirtland Community College

120,500

07665

Lake Michigan College

213,700

07670

Lansing Community College

1,269,900

07675

Macomb Community College

1,355,000

07680

Mid Michigan Community College

180,800

07685

Monroe County Community College

175,900

07690

Montcalm Community College

127,200

07615

C.S. Mott Community College

642,100

07695

Muskegon Community College

365,400

07700

North Central Michigan College

123,800

07705

Northwestern Michigan College

372,800

07710

Oakland Community College

854,800

07715

St. Clair County Community College

286,300

07720

Schoolcraft College

501,700

07725

Southwestern Michigan College

269,300

07730

Washtenaw Community College

509,900

07735

Wayne County Community College

659,100

07740

West Shore Community College

93,900

 

12,434,500

8. Department of Community Health

Appropriation
Number

Item

Reduction Amount

01191

Departmental administration and management

373,500

01130

Mental health/substance abuse program administration

429,500

11230

Executive administration

30,000

11254

Vital records and health statistics

9,800

16753

Sexually transmitted disease control management and field support

58,300

16230

Laboratory services

86,500

15155

Epidemiology administration

11,500

14230

Community living, children, and families administration

67,200

14330

Children's special health care services administration

15,600

22100

Drug control policy

38,500

46502

Office of services to aging administration

34,800

34010

Medical services administration

499,800

51601

Grants administration services

414,500

33550

Health plan services

1,000,000

04000

Center for forensic psychiatry

200,000

02999

Civil service charges

300,000

01755

Closed site, transition, and related costs

500,000

11232

Workers' compensation program

1,000,000

01061

Community health advisory council

20,900

 

5,090,400

9. Department of Consumer and Industry Services

Appropriation
Number

Item

Reduction Amount

06001

Adult foster care, children's welfare and day care licensure

354,382

17001

Operations

350,000

 

704,382

Expenditure reductions for the Department of Consumer and Industry Services include reductions for functions and programs transferred to the Department of Labor and Economic Growth and the Family Independence Agency effective December 7, 2003, pursuant to Executive Order 2003-18.

10. Department of Corrections

Appropriation
Number

Item

Reduction Amount

01070

Human resources

224,400

10370

DOJ, psychiatric plan - MDCH mental health services

1,150,000

10366

DOJ, psychiatric plan - MDOC staff and services

1,100,000

16381

Hospital and specialty care services

700,000

17530

Southeastern region clinical complexes

500,000

17520

Southwestern region clinical complexes

250,000

46002

Alger maximum correctional facility - Munising

1,900

47002

Baraga maximum correctional facility - Baraga

8,000

49002

Chippewa correctional facility - Kincheloe

131,619

50002

Kinross correctional facility - Kincheloe

13,300

54002

Newberry correctional facility - Newberry

200

52002

Oaks correctional facility - Eastlake

13,200

55002

Ojibway correctional facility - Marenisco

2,700

56002

Pugsley correctional facility - Kinglsey

9,900

53002

Standish maximum correctional facility - Standish

5,400

35002

Cooper Street correctional facility - Jackson

400

79002

Gus Harrison correctional facility  - Adrian

284,147

80002

Thumb correctional facility - Lapeer

1,024,500

48002

Carson City correctional facility - Carson City

50,600

76002

Florence Crane correctional facility - Coldwater

5,600

63002

Deerfield correctional facility - Ionia

1,300

64002

Riverside correctional facility - Ionia

502,719

69002

St. Louis correctional facility - St. Louis

64,934

 

6,044,819

11.     Department of Education

Appropriation
Number

Item

Reduction Amount

03801

Information technology operations

42,800

04801

School excellence operations

221,000

07501

Government services operations

49,900

07601

Safe schools operations

19,100

 

332,800

12. Department of Environmental Quality

Appropriation
Number

Item

Reduction Amount

01345

Building occupancy charges

1,907,125

01346

Rent-privately owned property

128,400

01150

Information technology services and projects

1,100,000

 

3,135,525

13. Family Independence Agency

Appropriation
Number

Item

Reduction Amount

11010

Salaries and wages

130,200

11040

Contractual services, supplies, and materials

157,500

11110

Commission on disability concerns

14,700

11210

Commission for the blind

7,700

11220

Youth low-vision program

18,200

11350

Demonstration projects

72,900

11820

Other unclassified salaries

11,000

12050

Travel

40,800

12060

Equipment

325,800

12070

Rent

118,000

12080

Payroll taxes and fringe benefits

144,800

12250

Grand tower facility reimbursement

426,600

14100

Disability determination operations

35,300

14200

Medical consultation program

110,400

16100

Information technology services and  projects

250,000

16500

Child support automation

11,600,000

32550

Day care services

11,000,000

32580

State supplementation administration

131,000

47400

Juvenile justice operations

3,278,000

47700

Juvenile accountability incentive block grant

4,500

47800

Committee on juvenile justice administration

13,800

62040

Contractual services, supplies, and materials

612,500

62510

Volunteer services and reimbursement

63,000

62610

Field staff, salaries and wages

2,142,100

72040

Contractual services, supplies, and materials

26,600

72260

Family preservation and prevention services

2,100

72420

Youth in transition

72,700

72530

Child care fund administration

40,400

72540

Community support services

166,400

72760

Adoption support services

2,700

81010

Salaries and wages

167,300

81040

Contractual services, supplies, and materials

379,400

81550

Wage employment verification reporting

197,600

81700

Training and staff development

99,000

83100

Child support operations

328,700

83400

Child support distribution computer system

68,700

 

32,260,400

Expenditure reductions for the Family Independence Agency include reductions for functions and programs transferred to the Department of Labor and Economic Growth effective December 7, 2003, pursuant to Executive Order 2003-18.

The amount in Section 657(3) of 2003 PA 172 for before-or-after-school pilot programs is reduced to $2,550,000.00.

14.     Higher Education

Appropriation
Number

Item

Reduction Amount

01001

Central Michigan University

4,077,100

01501

Eastern Michigan University

3,943,700

02001

Ferris State University

2,498,400

02501

Grand Valley State University

2,954,300

04001

Lake Superior State University

642,100

03001

Michigan State University

14,669,200

03501

Michigan Technological University

2,485,900

04501

Northern Michigan University

2,340,600

03201

Oakland University

2,454,400

05001

Saginaw Valley State University

1,333,700

05501

University of Michigan - Ann Arbor

16,360,300

05801

University of Michigan - Dearborn

1,259,700

05701

University of Michigan - Flint

1,083,100

06501

Wayne State University

11,414,000

06001

Western Michigan University

5,655,500

 

73,172,000

The amount in Section 401 of 2003 PA 144 is reduced to $5,434,400.00.

15. Department of History, Arts and Libraries

Appropriation
Number

Item

Reduction Amount

01100

Management services

25,000

05000

Information technology services and projects

99,000

03050

Library of Michigan operations

144,100

02001

Administration

31,300

04100

Historical administration and services

206,900

01400

Office of film and television services

5,000

07511

Mackinac Island state park operations

71,800

 

583,100

The amount in Section 505 of 2003 PA 160 for historical administration and services is reduced to $49,700.00.

16. Department of Management and Budget

Appropriation
Number

Item

Reduction Amount

12000

Administrative services

201,400

14000

Office of the state employer

61,100

00005

Information technology services and projects

237,500

 

500,000

The Department of Management and Budget shall reduce building occupancy general fund expenditures by $5,900,000.00.  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, 2004.

17. Michigan Strategic Fund

Appropriation
Number

Item

Reduction Amount

01100

Job creation services

654,891

01000

Administration

1,520,900

 

2,175,791

Expenditure reductions for the Michigan Strategic Fund include reductions for functions and programs transferred to the Department of Labor and Economic Growth effective December 7, 2003, pursuant to Executive Order 2003-18. 

18. Department of Military and Veterans Affairs

Appropriation
Number

Item

Reduction Amount

03016

Special maintenance - state

200,000

03500

Grand Rapids veterans' home

570,000

03700

D.J. Jacobetti veterans' home

200,000

 

970,000

19. Department of Natural Resources

Appropriation
Number

Item

Reduction Amount

01001

Executive direction

25,000

01093

Unclassified salaries

22,100

01126

Human resources

56,900

01107

Office of financial services

150,000

01105

Program assistance and review

30,000

01104

Office of land and facilities

243,000

01103

Education and outreach

25,000

03116

General law enforcement

160,000

 

712,000

20. Department of State

Appropriation
Number

Item

Reduction Amount

10920

Unclassified positions

5,000

19050

Customer services administration

42,221

19100

Branch operations

128,246

19200

Central records

30,429

45500

Information technology services and projects

82,353

 

288,249

21. Department of State Police

Appropriation
Number

Item

Reduction Amount

11010

Executive direction

59,700

10950

Unclassified positions

20,000

51140

Fleet leasing

700,000

16010

Human resources

19,900

15010

Management services

32,600

22010

Training administration

55,800

37400

Communications

153,300

11210

State program planning and administration

10,071

41140

Traffic safety

17,600

42010

Laboratory operations

291,500

22210

Standards and training

18,100

27010

Fire marshal programs

176,500

28010

Emergency management planning and administration

36,700

32010

Uniform services

1,944,900

37100

Operational support

79,600

37300

Aviation program

39,800

34010

Criminal investigations

600,400

34160

Federal antidrug initiatives

9,900

36220

School bus inspection

9,900

32500

At-post troopers

8,600,000

 

12,876,271


22. Department of Treasury

Appropriation
Number

Item

Reduction Amount

01301

Workers' compensation insurance premium

32,714

01314

Travel

300,000

01308

Rent and building occupancy charges

100,000

01800

Finance and accounting

300,000

08340

Clean Michigan initiative

17,000,000

 

17,732,714

C.        Portions of appropriations financed with special purpose revenue amounting to $147,899,300.00 contained in the following public acts are reduced as follows:

Reduction

Public Act  Department  Amount
2003 PA 169  Career Development    6,000,000
2003 PA 145  Education 6,100,000
2003 PA 172  Family Independence Agency  773,500
2003 PA 144 Higher Education  63,000,000
2003 PA 161 Treasury   72,025,800
            147,899,300

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. Career Development - Temporary Assistance for Needy Families - Federal Funds

Appropriation
Number

Item

Reduction Amount

08230

Welfare-to-work programs

5,000,000

 

5,000,000

2. Career Development - Tobacco Settlement Trust Fund

Appropriation
Number

Item

Reduction Amount

08221

Council of Michigan foundations

1,000,000

 

1,000,000

3. Education - Driver Fees Revenue

Appropriation
Number

Item

Reduction Amount

03652

Driver education

6,100,000

 

6,100,000

4. Family Independence Agency - Child Support Enforcement System Penalty Refund Revenue

The amounts in Section 413 of 2003 PA 172 are reduced as follows:

Subsection (1)(a), community-based innovation grants is reduced to:

0

Subsection (1)(f), supervised parenting time centers is reduced to:

0

Subsection (1)(h), school-based demonstration project is reduced to:

0

Subsection (1)(i), at-risk males of color networks is reduced to:

0

Subsection (1)(o),  teen pregnancy prevention project is reduced to:

0

5. Higher Education - Michigan Merit Award Trust Fund

Appropriation
Number

Item

Reduction Amount

80000

Michigan merit award program

63,000,000

 

63,000,000

6. Treasury - Sales Tax Revenue

Appropriation
Number

Item

Reduction Amount

09466

Statutory state general revenue sharing grants

72,025,800

 

72,025,800


E. The following general fund-general purpose amounts from work project or capital outlay accounts, totaling $30,992,590.00, are hereby reduced:

Appropriation Number
(Appropriation Year)

Item

Reduction Amount

74306 (AY 98)

Capital Outlay:  Major special maintenance and remodeling for department of management and budget

6,322

74404 (AY 99)

Capital Outlay:  Major special maintenance and remodeling for department of management and budget

448,534

74418 (AY 99)

Capital Outlay:  Major special maintenance of remodeling for state agencies

8,929,381

74527 (AY 01)

Capital Outlay:  Major special maintenance and remodeling for department of management and budget

2,844,000

29507 (AY 02)

Department of Corrections:  Capacity enhancements

7,300,984

19200 (AY 01)

Department of State:  Implementation of Uniform Commercial Code standards

251,297

16500 (AY 03)

Family Independence Agency:  Child support automation

4,838,400


16250 (AY 03)

Family Independence Agency: Data system enhancement

3,000,000

28180 (AY 01)

Department of State Police:  Grants for disaster assistance

1,676,572

09470 (AY 01)

Department of Treasury:  Tax increment finance authority

1,197,000

09470 (AY 02)

Department of Treasury:  Tax increment finance authority

500,100

 

30,992,590

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, 2003 and ending on September 30, 2004.

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 December, 2003.

_______________________________________

JENNIFER M. GRANHOLM
GOVERNOR

BY THE GOVERNOR:

______________________________________

SECRETARY OF STATE



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