The Senate Appropriations Committee today robbed Peter to pay Paul as a way to salvage $475 million in federal road funding in the Department of Transportation (MDOT) budget.
The panel moved out four Fiscal Year (FY) 2011 budgets today -- MDOT, Military and Veterans Affairs, Department of Labor, Energy and Economic Growth (DELEG) and General Government.
The MDOT budget cuts $84 million in funding for programs such as welcome centers, highway maintenance and senior citizen transportation and shifts it to the road and bridge program as a way to draw down the federal match needed to get the $475 million in federal funding. The budget moved on a party-line 11-7 vote.
MDOT Appropriations Subcommittee Chair Bill HARDIMAN (R-Kentwood) said this means the state will have enough matching funds to salvage the $475 million in federal funds that the Governor chopped from her budget recommendation. MDOT has already canceled more than 100 projects.
But Sen. Liz BRAT (D-Ann Arbor) called it "cutting off our nose to spite our face." She and other Democrats renewed their calls for a gas tax increase as a better way to raise the needed matching funds. Brater also pointed out the option of closing some of the $37 billion in tax breaks the state gives out.
"We do have an option to avoid these kinds of draconian cuts," she said.
Hardiman said it was a "difficult decision," but it was critical that Michigan secured federal road money.
"There are a lot of people hurting right now," he said. "I think this is just the worst time to raise taxes."
Hardiman also said that if the Legislature passes reforms, some of these cuts could be avoided.
The budget also puts the brakes on any spending for the Detroit River International Crossing (DRIC) unless the Legislature authorizes the bridge. Sen. Alan CROPSEY (R-DeWitt), DRIC's biggest foe, ripped MDOT for being "very difficult" to work with and accused it of "throwing away money" on the project.
The $3.3 billion budget is $490.2 million above the Governor's recommendation. There is no General Fund money in the budget.
The House never moved its MDOT budget (HB 5889), forcing the Senate to take up its version The General Government budget included a 5-percent cut to revenue sharing. The budget moved on a party-line 11-7 vote.
Sen. Deb CHERRY (D-Burton) failed in her amendment to restore revenue sharing to the House-passed level.
"It's not for fluff," she argued. "It's for very basic services."
Sen. John PAPPAGEORGE (R-Troy) said that the Senate GOP target was a $52 million cut to revenue sharing, but staff found $11 million.
"I don't think anything pains me more than what's happening to revenue sharing," he said.
The other big area to take a hit was the 21st Century Jobs Fund, which was whacked by 65 percent for a savings of $48.5 million. Sen. Glenn ANDERSON (D-Westland) failed on a party-line vote to win an amendment restoring it to the House-passed level of $72.6 million.
"It's unconscionable to make such a draconian cut to a program supposed to create jobs," Anderson said.
Pappageorge said that the House had tie-barred the budget to revenue, but had broken the tie-bar. That means there's no funding for the program. But Sen. Irma CLARK-COLEMAN (D-Detroit) said there was a solution, alluding to the Senate Republicans' decision to forgo fee increases and cover Agriculture inspections with GF (See "Senate Approps Moves 2 Budgets, Tables DELEG ," 5/5/10).
"Take it out of one of the other budgets," she said.
Sen. Valde GARCIA (R-Howell) expressed concern about the cuts to the 21st Century Jobs Fund, noting he sponsored the legislation, but said he would have been more inclined to support Anderson's amendment if it had not been for almost the full amount. He said he would vote for the budget to get it out of committee, but made his reservations clear.
The $3.3 billion General Government budget is $129.3 million gross over the Governor's recommendation and is $4.7 million GF under her recommendation.
The DELEG budget moved without the $124,500 salary for Automobile and Home Insurance Consumer Advocate Melvin "Butch" HOLLOWELL (See "Senate Panel Axes Hollowell's Salary ," 4/28/10). The budget moved on a party-line 11-6 vote with Sen. Mickey SWITALSKI (D-Roseville) crossing over.
Sen. Martha G. SCOTT (D-Highland Park) unsuccessfully tried to get funding for the position in the budget, with the amendment going down on a party-line 7-10 vote. As he said last week, Sen. Mark JANSEN (R-Gaines Twp.) noted he was "eager" to work with Scott on the issue, but argued the job was redundant.
Scott also failed to get boilerplate language stripped that no funds shall be used to support ergonomics standards and that funds shall not be used for the Office of Financial and Insurance Regulation (OFIR) to prohibit credit scoring.
The $1.5 billion DELEG budget is $11 million gross under the Governor's recommendation and $2.4 million GF over the recommendation.
The Military and Veterans Affairs budget was the only budget to move unanimously. The $150.1 million budget is $994,300 gross over the Governor's recommendation and $518,200 million GF under the recommendation.
The committee unanimously moved a $28.4 million FY 2010 supplemental for the Department of Corrections. HB 540 provides $9.7 million for the county jail reimbursement and $18.7 million for the Muskegon Correctional Facility, which is housing Pennsylvania inmates. Funding comes from the federal stimulus.