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Review and Analysis of FY 2021-22 Executive Budget Recommendation

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Review and Analysis of FY 2021-22 Executive Budget Recommendation REVIEW AND ANALYSIS OF THE FY 2021-22 EXECUTIVE BUDGET RECOMMENDATION prepared by the Mary Ann Cleary, Director February 2021 HOUSE FISCAL AGENCY GOVERNING COMMITTEE Thomas Albert Joe Tate Jason Wentworth Donna Lasinski Ben Frederick Yousef Rabhi MICHIGAN HOUSE OF REPRESENTATIVES APPROPRIATIONS COMMITTEE Thomas Albert, Chair Greg VanWoerkom Mary Whiteford, Vice-Chair Jeff Yaroch Sue Allor Joe Tate, Minority Vice-Chair Timothy Beson Felicia Brabec Ann Bollin Tyrone Carter Ken Borton Abdullah Hammound Tommy Brann Rachel Hood Andrew Fink Cynthia Johnson Annette Glenn Amos O’Neal Pamela Hornberger Ronnie Peterson Mark Huizenga Terry Sabo Sarah Lightner Samantha Steckloff Matt Maddock Shri Thanedar Bradley Slagh Regina Weiss Scott VanSingel STATE OF MICHIGAN HOUSE OF REPRESENTATIVES HOUSE FISCAL AGENCY MARY ANN CLEARY, DIRECTOR GOVERNING COMMITTEE P.O. BOX 30014 ◼ LANSING, MICHIGAN 48909-7514 THOMAS ALBERT, CHAIR JOE TATE, MVC PHONE: (517) 373-8080 ◼ FAX: (517) 373-5874 JASON WENTWORTH, VC DONNA LASINSKI www.house.mi.gov/hfa BEN FREDERICK YOUSEF RABHI February 26, 2021 TO: Members of the Michigan House of Representatives We are pleased to provide you with this Review and Analysis of the FY 2021-22 Executive Budget Recommendation. In this publication, the Budget Overview provides information on revenue sources and appropriations proposed in the executive budget recommendation for FY 2021-22 and FY 2022- 23. It also provides summary charts and tables of appropriations and fund sources in the proposed budget. Budget summaries and analyses in this report were prepared for each department/agency by House Fiscal Agency analysts; the Consensus Revenue section was prepared by the Agency economist. House Fiscal Agency staff and their areas of responsibility are listed on the inside back cover of this publication. Please feel free to contact them, or me, if you have questions or need additional information. Mary Ann Cleary, Director TABLE OF CONTENTS OVERVIEW Budget Overview ............................................................................................................................................................ 2 Consensus Revenue Estimates ..................................................................................................................................... 6 Balance Sheets ............................................................................................................................................................ 11 Appropriation Summary Tables .................................................................................................................................... 14 BUDGET DETAIL Agriculture and Rural Development ...................................................................................................................... 24 Community Colleges ............................................................................................................................................. 26 Corrections ............................................................................................................................................................ 30 Education (Department) ........................................................................................................................................ 36 Environment, Great Lakes, and Energy ................................................................................................................ 39 General Government Overall ................................................................................................................................ 44 Attorney General ............................................................................................................................................ 46 Civil Rights ..................................................................................................................................................... 48 Executive Office ............................................................................................................................................. 50 Labor and Economic Opportunity .................................................................................................................. 51 Legislature ..................................................................................................................................................... 59 Legislative Auditor General ............................................................................................................................ 61 State (Department) ........................................................................................................................................ 62 Technology, Management, and Budget ......................................................................................................... 64 Treasury ......................................................................................................................................................... 69 Health and Human Services ................................................................................................................................. 75 Higher Education .................................................................................................................................................. 91 Insurance and Financial Services ......................................................................................................................... 96 Judiciary ................................................................................................................................................................ 99 Licensing and Regulatory Affairs ........................................................................................................................ 103 Military and Veterans Affairs ............................................................................................................................... 107 Natural Resources .............................................................................................................................................. 111 School Aid ........................................................................................................................................................... 115 State Police ......................................................................................................................................................... 126 Transportation ..................................................................................................................................................... 132 GLOSSARY STATE BUDGET TERMS State Restricted Revenue State revenue restricted by the State Constitution, state Line Item statute, or outside restriction that is available only for Specific funding amount in an appropriations bill that specified purposes; includes most fee revenue; at year-end, establishes spending authorization for a particular program unexpended restricted revenue generally remains in the or function. restricted fund. Boilerplate General Fund/General Purpose (GF/GP) Revenue Specific language sections in an appropriations bill that Unrestricted general fund revenue available to fund basic direct, limit, or restrict line-item expenditures, express state programs and other purposes determined by the legislative intent, and/or require reports. legislature; unexpended GF/GP revenue lapses to the General Fund at the end of a fiscal year. Lapse Appropriated amounts that are unspent or unobligated at the end of a fiscal year; appropriations are automatically MAJOR STATE FUNDS terminated at the end of a fiscal year unless otherwise provided by law. General Fund The state’s primary operating fund; receives state revenue Work Project not dedicated to another state fund. Account authorized through statutory process that allows appropriated spending authorization from one fiscal year to School Aid Fund (SAF) be utilized for expenditures in a succeeding fiscal year or A restricted fund that serves as the primary state funding years for a specific project or purpose. source for K-12 schools and Intermediate School Districts. Constitutionally, SAF revenue may also be used for postsecondary education. APPROPRIATION TERMS AND FUND SOURCES Budget Stabilization Fund Appropriations The Countercyclical Economic and Budget Stabilization Authority to expend funds for a particular purpose. An Fund (also known as the “rainy day fund”); the Management appropriation is not a mandate to spend. and Budget Act provides guidelines for making deposits into and withdrawals from the fund. Gross: Total of all applicable appropriations in an appropriations bill. Adjusted Gross: Net amount of gross appropriations after subtracting interdepartmental grants (IDGs) and intradepartmental transfers (IDTs). Interdepartmental Grant (IDG) Revenue Funds received by one state department from another state department, usually for service(s) provided. Intradepartmental Transfer (IDT) Revenue Funds transferred from one appropriations unit to another within the same departmental budget. Federal Revenue Federal grant or match revenue; generally dedicated to specific programs or purposes. Local Revenue Revenue received from local units of government for state services. Private Revenue Revenue from non-government entities: rents, royalties or interest payments, payments from hospitals or individuals, or gifts and bequests. FY 2021-22 Executive Recommendation OVERVIEW
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