FY 2019-20 AGRICULTURE AND RURAL DEVELOPMENT BUDGET          S.B. 133 (S-1):  SENATE SUBCOMMITTEE REC.

Senate Bill 133 (S-1 as reported)                                             Throughout this document Senate means Subcommittee.

Committee:  Appropriations

			CHANGES FROM FY 2018-19 YEAR-TO-DATE
FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE	FY 2018-19 YEAR-TO-DATE*	FY 2019-20 SENATE SUBCOMM.	AMOUNT	PERCENT
FTE Positions..............................................................	502.5	503.5	1.0	0.2
GROSS..........................................................................	110,198,100	112,745,500	2,547,400	2.3
Less:
Interdepartmental Grants Received.........................	313,900	318,400	4,500	1.4
ADJUSTED GROSS....................................................	109,884,200	112,427,100	2,542,900	2.3
Less:
Federal Funds...........................................................	11,775,200	11,836,400	61,200	0.5
Local and Private.......................................................	101,800	101,800	0	0.0
TOTAL STATE SPENDING.........................................	98,007,200	100,488,900	2,481,700	2.5
Less:
Other State Restricted Funds..................................	37,172,000	39,653,700	2,481,700	6.7
GENERAL FUND/GENERAL PURPOSE...................	60,835,200	60,835,200	0	0.0
PAYMENTS TO LOCALS...........................................	6,350,000	10,950,000	4,600,000	72.4

*As of March 5, 2019.

	Gross	GF/GP
FY 2018-19 Year-to-Date Appropriation...............................................	$110,198,100	$60,835,200

Changes from FY 2018-19 Year-to-Date:
1. Agriculture Preservation Conservation Easement Grant Program Funding. Governor and Senate recommended $2.0 million in Michigan Agriculture Preservation Funds to re-establish a statutory grant program for local government acquisition of permanent easements on farmland.	2,000,000	0
2. Double Up Food Bucks Expansion. Governor recommended a $4.0 million GF/GP expansion of the Double Up Food Bucks Program (which provides support for the purchase of healthier foods by food assistance program recipients) from the $300,000 GF/GP appropriated in DHHS in FY 2018-19 and targeted to Flint, but managed by MDARD. Funds recommended include $2.0 million ongoing and $2.0 million one-time funding to expand the program through the Fair Food Network from current 65 counties to statewide. Senate provided $2.0 GF/GP in ongoing funds only.	2,000,000	2,000,000
3. Conservation Districts Pilot Project. Senate included $3.0 million in one-time GF/GP for distribution to Conservation Districts for a natural resources assessment and plan to address natural resource needs.	3,000,000	3,000,000
4. Alignment of Restricted Authorization with Available Revenues. Governor and Senate recommended alignment of Restricted funding amounts across several budget lines to reflect actual funds received.	211,800	0
5. Food and Agriculture Investment Grant Program. Governor recommended a reduction in the grant program of $2.6 million GF/GP, leaving a total recommended appropriation for FY 2019-20 of $2,477,900 GF/GP. Senate funded program at $4.0 million GF/GP for FY 2019-20, $1,522,100 over Governor.	(1,077,900)	(1,077,900)
6. County Fairs, Shows and Exhibitions Grants Reduction. Governor recommended a reduction in the grant program, including $200,000 from ongoing appropriations and $925,000 from one-time, to a recommended appropriation amount of $200,000 GF/GP for FY 2019-20. Senate funded program at $1.0 million GF/GP for FY 2019-20, $800,000 over Governor.	(325,000)	(325,000)
7. Animal Agriculture Initiative. Governor recommended elimination of the one-time $2.0 million GF/GP program. Senate funded program at $3.0 million GF/GP in ongoing funds for FY 2019-20 for the Michigan Animal Agriculture Alliance.	1,000,000	1,000,000
8. Animal Disease Prevention and Response. Senate reduced program by $2,407,100 GF/GP.	(2,407,100)	(2,407,100)
9. Qualified Forest Program. Senate reduced program by $500,0000 GF/GP.	(500,000)	(500,000)
10. Pesticide and Plant Pest Management. Senate reduced program by $500,000 GF/GP.	(500,000)	(500,000)
11. Dairy Industry Assistance Program One-time Grant Elimination. Governor and Senate recommended elimination of the $1.0 million GF/GP grant program.	(1,000,000)	(1,000,000)
12. Agriculture Industry Research and Development One-time Grant Elimination. Governor and Senate recommended elimination.	(550,000)	(550,000)
13. ACRE Agriculture Incubator One-time Grant Elimination. Governor and Senate recommended elimination.	(260,000)	(260,000)
14. ODC Network - Project Clarity One-time Grant Elimination. Governor and Senate recommended elimination.	(120,000)	(120,000)
15. Unclassified Salaries. Governor and Senate recommended economic increase from $573,500 from FY 2018-19 to $596,700 for FY 2019-20.	23,200	23,200
16. Economic Adjustments. Includes $1,052,400 Gross and $716,800 GF/GP for total economic adjustments, of which an estimated negative $778,900 Gross and $543,800 GF/GP is for legacy retirement costs (pension and retiree health).	1,052,400	716,800
17. Comparison to Governor's Recommendation. The Senate is $2,915,000 Gross and $ 2,915,000 GF/GP over the Governor.

Total Changes.........................................................................................	$2,547,400	$0
FY 2019-20 Senate Appropriations Subcommittee Recommendation........	$112,745,500	$60,835,200

Boilerplate Changes from FY 2018-19 Year-to-Date:

1. Contingency Funds Transfer Provision. Senate eliminated language allowing for special legislative contingency fund transfers for non-specifically appropriated federal, restricted, local, and private funds. (Sec. 210)

2. Whole Herd TB Testing. Governor and Senate eliminated language prohibiting whole herds from being tested more often than every four years or not retested until all other county herds have been tested, except under certain circumstances. (Sec. 459)

3. Apiaries Grants. Governor and Senate removed Sec. 462, which earmarked $20,000 in funds for a grant program to assist in the construction of protective systems for apiaries. (Sec. 462)

4. Environmental Stewardship/MAEAP. Senate eliminated language which allowed the department to receive and expend federal revenues without reverting to standard transfer or appropriation processes. (Sec. 604)

5. Agriculture Equine Industry Development Fund (AEID). Governor and Senate removed language requiring up to $395,000 in AEID funds be allocated to the Purses and Supplements - Fairs/Licensed Tracks line item and adds "fairs and licensed tracks" to those who would receive prorated funds after obligations to the Department of Treasury's Michigan Gaming Control Board have been met. (Sec. 802)

6. County Fairs, Shows, and Expositions Grant Program. Governor and Senate revised language and removed individual projects that had been earmarked for funding. Senate added language designating $50,000 in grants funds for the promotion of Michigan festivals. (Sec. 301 from PA 618 of 2018; Sec. 805 from Governor's recommendation)

7. Agriculture Development. Governor and Senate eliminated language which provided $150,000 in Agriculture Development appropriations be used for activities under the Industrial Hemp Research Act. (Sec. 302 of PA 618 of 2018)

8. Agriculture Industry Research and Development. Governor and Senate eliminated language which provided $550,000 in Agriculture Development appropriations be used for upgrades to mobile fruit and vegetable processing teaching labs. (Sec. 303 of PA 618 of 2018)

9. Dairy Industry Assistance Program. Governor and Senate eliminated language which provided guidelines for $1.0 million grant program. (Sec. 304 of PA 618 of 2018)

Date Completed:  4-24-19                                                                                             Fiscal Analyst:  Bruce R. Baker

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.