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2007 Senate Bill 232: Appropriations: 2007-2008 Department of Human Services (Welfare) budget

Public Act 131 of 2007

  1. Introduced by Sen. Bill Hardiman (R) on February 21, 2007, to provide the “template” or “place holder” for a Senate Republican version of a Fiscal Year 2007-2008 Department of Human Services (Welfare) budget. This bill contains no appropriations, but may be amended at a later date to include them. Note: The governor's proposed budget is contained in Senate Bill 256, and is premised on the legislature adopting a 2 percent tax on services which along with other tax increases and a proposed reduction in business taxes represents a net tax hike of approximately $1 billion.
    • Referred to the Senate Appropriations Committee on February 21, 2007.
      • Reported in the Senate on June 12, 2007, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
    • Substitute offered in the Senate on August 22, 2007, to replace the executive proposal for this budget with one that expresses spending level and policy differences between the Republican-majority in the Senate and Governor Jennifer Granholm on certain spending items and funding sources. See Senate-passed version for more, and for details see the Senate Fiscal Agency analysis (link available through the “Text and Analysis” tab at the top of this bill’s MichiganVotes page). The substitute passed by voice vote in the Senate on August 22, 2007.
    • Amendment offered by Sen. Martha G. Scott (D) on August 22, 2007, to replace the spending totals and policy provisions contained in the version of the bill promoted by Senate Republicans with those proposed by Gov. Granholm. The amendment failed 17 to 21 in the Senate on August 22, 2007.
      Who Voted "Yes" and Who Voted "No"

    • Amendment offered by Sen. Martha G. Scott (D) on August 22, 2007, to increase daycare subsidies for welfare recipients. The amendment failed 17 to 21 in the Senate on August 22, 2007.
      Who Voted "Yes" and Who Voted "No"

    • Amendment offered by Sen. John Gleason (D) on August 22, 2007, to not contract out to nonprofit providers certain juvenile delinquent welfare functions performed by the W.J. Maxey Boys Training School, the Bay Pines Center, the Flint House Community Juvenile Center, and the Pine Lodge Community Juvenile Center. The amendment failed 17 to 21 in the Senate on August 22, 2007.
      Who Voted "Yes" and Who Voted "No"

  2. Passed 22 to 16 in the Senate on August 22, 2007, the Senate version of the Fiscal Year (FY) 2007-2008 Department of Human Services (Welfare) budget. This appropriates $4.504 billion in gross spending, compared to $4.468 billion, which was the FY 2006-2007 amount enrolled in 2006, and $4.454 billion proposed by Gov. Granholm (see Senate Bill 256). Of this, $1.252 billion will come from the general fund (funded by actual state tax revenues), compared to the FY 2006-2007 amount of $1.197 billion; $3.107 billion is federal revenue; and $141 million is other from other taxes and fees levied in Michigan. Notably, the budget includes a proposal to outsource to nonprofit organizations some of the foster care and juvenile justice functions the department is responsible for. In addition to increasing program spending less than the governor recommends, each Senate budget would require departments to reduce administrative costs by 1.2 percent.
    Who Voted "Yes" and Who Voted "No"

  3. Moved to reconsider by Sen. Alan L. Cropsey (R) on August 22, 2007, the vote by which the following bill was passed. No reconsideration occurred and the budget went over to the House.
    • Withdrawn in the Senate on August 22, 2007.
  4. Received in the House on August 22, 2007.
    • Referred to the House Appropriations Committee on August 22, 2007.
      • Reported in the House on September 6, 2007, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
    • Substitute offered in the House on September 6, 2007, the version of the Fiscal Year (FY) 2007-2008 Department of Human Services (Welfare) budget reported by the House Appropriations Committee. This budget expresses the will of the House Democratic majority, but it was subsequently replaced by a version that zeros out all line items as a way to accelerate House-Senate budget negotiations (see Spade substitute). This version would appropriate $4.532 billion in gross spending, compared to $4.468 billion, which was the FY 2006-2007 amount enrolled in 2006, and $4.454 billion proposed by Gov. Granholm (see Senate Bill 256). Of this, $1.283 billion will come from the general fund (funded by actual state tax revenues), compared to the FY 2006-2007 amount of $1.197 billion; $3.136 billion is federal revenue; and $109.6 million is from other taxes and fees levied in Michigan. The budget includes a proposal to privatize some department functions, but not as much as the Senate version would do. The substitute passed by voice vote in the House on September 6, 2007.
    • Substitute offered by Rep. Dudley Spade (D) on September 6, 2007, to adopt a version of the bill that essentially strips out all of the appropriations of the previous version, which is basically a procedural method of launching negotiations to work out the differences between the House and Senate budgets. The substitute passed by voice vote in the House on September 6, 2007.
    • Amendment offered by Rep. Richard J. Ball (R) on September 6, 2007, to require the department to implement continuous improvement efficiency mechanisms that increase efficiency and reduce expenditures in its programs, and to report back to the legislature on these every six months. The amendment passed by voice vote in the House on September 6, 2007.
    • Amendment offered by Rep. George Cushingberry (D) on September 6, 2007, to require the department to contract with a private company to conduct a study of ways to streamline the department's procurement procedures. The amendment would suspend proposed budget cuts to the department's administration expenses if the report is completed by Nov. 30, 2007. The amendment passed by voice vote in the House on September 6, 2007.
  5. Passed 59 to 47 in the House on September 6, 2007, to send the Department of Human Services (Welfare) budget back to the Senate "stripped" of all actual appropriations, and $100 “placeholders” in their place. These and some changes in the remaining “boilerplate” language prescribing policies the department must follow establish “points of difference” with the Senate version, the presence of which makes them subjects for negotiation between the bodies. This vote is basically a procedural method of launching negotiations to work out the differences between the House and Senate budgets.
    Who Voted "Yes" and Who Voted "No"

  6. Received in the Senate on September 11, 2007, to concur with a House-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences. Failed 0 to 37 in the Senate on September 11, 2007.
    Who Voted "Yes" and Who Voted "No"

  7. Received in the Senate on September 12, 2007.
  8. Passed 20 to 16 in the Senate on October 31, 2007, the House-Senate conference report for the Fiscal Year (FY) 2007-2008 Department of Human Services (Welfare) budget. This appropriates $4.589 billion in gross spending, compared to $4.468 billion, which was the FY 2006-2007 amount enrolled in 2006, and $4.454 billion proposed by Gov. Granholm (see Senate Bill 256). Of this, $1.312 billion will come from the general fund (funded by actual state tax revenues), compared to the FY 2006-2007 amount of $1.197 billion; $3.154 billion is federal revenue; and $118.9 million is other from other taxes and fees levied in Michigan. The budget includes some additional transfers of foster care, justice justice and adoption services to private social service agencies (but much less than the amount the Senate had passed).
    Who Voted "Yes" and Who Voted "No"

  9. Received in the House on September 14, 2007.
  10. Passed 59 to 50 in the House on October 31, 2007, the House-Senate conference report for the Fiscal Year (FY) 2007-2008 Department of Human Services (Welfare) budget. This appropriates $4.589 billion in gross spending, compared to $4.468 billion, which was the FY 2006-2007 amount enrolled in 2006, and $4.454 billion proposed by Gov. Granholm (see Senate Bill 256). Of this, $1.312 billion will come from the general fund (funded by actual state tax revenues), compared to the FY 2006-2007 amount of $1.197 billion; $3.154 billion is federal revenue; and $118.9 million is other from other taxes and fees levied in Michigan. The budget includes some additional transfers of foster care, justice justice and adoption services to private social service agencies (but much less than the amount the Senate had passed).
    Who Voted "Yes" and Who Voted "No"

  11. Signed with line-item veto by Gov. Jennifer Granholm on October 31, 2007.

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