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.
| 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 |
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:
| 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
