FY 2024-25: MILITARY AND VETERANS AFFAIRS
Summary: As Passed by the House
House Bill 5509 (H-2)
Analyst: Michael Cnossen
Difference: House
FY 2023-24 From FY 2023-24
Enacted FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 Enacted
as of 2/7/24 Executive House Senate Conference Amount %
IDG/IDT $101,800 $101,800 $101,800 $ $ $0 0.0
Federal 135,035,900 144,036,800 144,036,800 9,000,900 6.7
Local 0 0 0 0 --
Private 100,000 100,000 100,000 0 0.0
Restricted 14,213,400 13,221,400 13,221,400 (992,000) (7.0)
GF/GP 98,889,300 109,592,100 110,092,300 11,203,000 11.3
Gross $248,340,400 $267,052,100 $267,552,300 $ $ $19,211,900 7.7
FTEs 1,060.0 1,060.0 1,060.0 0.0 0.0
Note: Appropriation figures for FY 2024-25 include all proposed appropriation amounts, including amounts designated as "one-
time."
Overview
The Department of Military and Veterans Affairs (DMVA) provides for the operations of the Michigan National Guard in
support of military and security needs of the state and federal government. The department, through the Michigan
Veterans Affairs Agency, oversees state programs for veterans, grants to veterans service organizations, the County
Veteran Service Fund, and the Michigan Veterans Trust Fund. The department also houses the independent Michigan
Veterans Facility Authority, which manages and operates the state's three veterans homes.
FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
1. Veteran Homes Operating Expenses Adjustment FTE 553.0 0.0
Executive provides $16.4 million Gross ($10.2 million GF/GP) to the 3 Gross $92,561,400 $16,398,100
state veteran home facilities to reflect operating cost increases for Federal 41,843,100 7,218,600
contracted nursing services, state healthcare employee wages, medical Restricted 6,850,100 (991,300)
supplies and services, utilities, and DTMB accounting services fees. GF/GP $43,868,200 $10,170,800
Gross funding increases to each of the 3 homes would be:
• $9.7 million for the Grand Rapids Home for Veterans
• $5.0 million for the Chesterfield Township Home for Veterans
• $1.6 million for the D.J. Jacobetti Home for Veterans
House concurs.
2. Michigan Veterans' Facility Authority Administrative Operating Gross $4,981,300 $941,900
Expenses Adjustment GF/GP $4,981,300 $941,900
Executive provides $941,900 GF/GP to cover total increased costs
related to Auditor General service fees, DTMB accounting services, and
increased costs for medical billing services, telecommunications, and
other services. House concurs.
3. Selfridge Air National Guard Base (One-Time) Gross $10,000,000 $100
Executive includes $10.0 million GF/GP for capital improvements and GF/GP $10,000,000 $100
infrastructure projects necessary to shift the runway placement at
Selfridge Air National Guard Base to help attract new aircraft flying
missions. Projects would include roadway repair, vehicle access to the
base and museum, stormwater drainage system repairs, force
protection, and airfield features. A one-time appropriation of $10.0
million was included in the enacted FY 2023-24 budget for the same
purpose, for a $0 change. House concurs and adds $100.
House Fiscal Agency 1 5/9/2024
 FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
4. Veteran Homelessness Grants (One-Time and Ongoing) Gross $2,000,000 $3,500,000
Executive provides $1.5 million GF/GP for MVAA to continue a FY 2023- GF/GP $2,000,000 $3,500,000
24 pilot program that awards grants to non-profit organizations to
provide, or assist in providing, housing for homeless veterans and their
families in an effort to eliminate veteran homelessness. A one-time
appropriation of $2.0 million was included in the enacted FY 2023-24
budget for the same purpose, for a $500,000 decrease. House provides
a total of $5.5 million GF/GP ($2.0 million one-time) for a net increase of
$3.5 million from FY 2023-24.
5. DMVA Military Retirement Gross $1,351,000 $1,419,600
Executive provides $1.4 million GF/GP for the Military Retirement GF/GP $1,351,000 $1,419,600
System to reflect an increase in anticipated retirement obligations based
on annual actuarial valuation of military retirement benefits. House
concurs.
6. Veterans of Foreign Wars National Home (One-Time) Gross $0 $1,000,000
House provides $1.0 million GF/GP for the Veterans of Foreign Wars GF/GP $0 $1,000,000
(VFW) National Home for maintenance of its roads and grounds. The
VFW National Home is a small-town community that assists military,
veterans and their families by providing housing and resources for up to
four years during times of difficulty. Executive does not include.
7. VETS Ride Pilot Program (One-Time) Gross $0 $999,900
House provides $999,900 GF/GP to create a pilot program to provide GF/GP $0 $999,900
reimbursement grants to eligible organizations to provide eligible
veterans free transportation for health and medical purposes and for
receiving benefits claims assistance. Executive does not include.
8. National Guard Soldier Referral Program Gross $0 $0
Executive provides $300,000 GF/GP and makes a corresponding Restricted 0 0
reduction from the annual deposit into the Michigan National Guard GF/GP $0 $0
Tuition Assistance Fund for a net $0 Gross change. Funding would be
used to create a Joint Enlistment Enhancement Program that would
provide $1,000 referral bonuses to individuals who refer soldiers who
enlist in the National Guard. House concurs.
9. National Guard Facilities Services Contract Increases Gross $0 $287,000
Executive provides $287,000 Gross ($9,000 GF/GP) to support contract Federal 0 278,000
cost increases for National Guard facilities and for janitorial services at GF/GP $0 $9,000
Selfridge Air National Guard Base. House concurs.
10. Air National Guard User ID Funding Gross $0 $50,000
Executive provides $50,000 GF/GP for the cost of user IDs in recognition GF/GP $0 $50,000
that this cost is a non-reimbursable expense under the National Guard
Bureau's cooperative agreement. House concurs.
11. Veteran Directory (One-Time) Gross $0 $100
House provides $100 GF/GP as a placeholder to implement a statewide GF/GP $0 $100
homeless veteran directory to better identify and serve homeless
veterans by being able to recognize immediate needs and trends
sooner. Executive does not include.
12. Peacetime Veterans Emergency Assistance Grants Gross $2,500,000 $100
House provides $100 GF/GP as a placeholder to fund awarding grants GF/GP $2,500,000 $100
from the Emergency Grant Program of the Michigan Veterans Trust
Fund to veterans who served in times of peace. Executive does not
include.
House Fiscal Agency 2 5/9/2024
 FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
13. Removal of FY 2023-24 One-Time Appropriations Gross $3,000,000 ($3,000,000)
Executive removes $3.0 million of one-time GF/GP funding that was GF/GP $3,000,000 ($3,000,000)
included in the FY 2023-24 budget to support funding for the Grand
Rapids Home for Veterans as it transitioned to its new facility. House
concurs.
14. National Guard Tuition Assistance Fund Alignment FTE 3.5 0.0
House reduces $5.5 million GF/GP for deposit into the Michigan National Gross $11,520,700 ($5,500,000)
Guard Tuition Assistance Fund to align the balance of the fund with GF/GP $11,520,700 ($5,500,500)
expenditures and the $15.0 million cap placed on the fund by the
Michigan National Guard Tuition Assistance Act, 2014 PA 259.
Executive does not include.
15. Economic Adjustments Gross NA $3,115,100
Executive includes adjustments to reflect increased costs of $3.1 million Federal NA 1,504,300
Gross ($1.6 GF/GP) for negotiated salary and wage increases (5.0% on Restricted NA (700)
October 1, 2024), actuarially required retirement contributions, worker's GF/GP NA $1,611,500
compensation, building occupancy charges, rent, and other economic
adjustments. House concurs.
Major Boilerplate Changes from FY 2023-24
Sec. 206. Disciplinary Action Against State Employees – RETAINED
Prohibits departments from taking disciplinary action against employees in the state classified civil service for
communicating with legislators or their staff; stipulates disciplinary action may be taken if the communication is prohibited
by law and disciplinary action is exercised as authorized by law. (Governor deemed this section unenforceable in FY
2023-24.) Executive revises. House retains.
Sec. 210. Legislative Contingency Transfer Authorization – RETAINED
Allows for the legislative transfer process to increase federal authorization by up to $8.6 million, state restricted
authorization by up to $1.1 million, local authorization by up to $250,000, and private authorization by up to $100,000.
Executive revises to increase maximum amounts of contingency authorizations up to $12.0 million in federal and $3.0
million in state restricted. House retains.
Sec. 211. Transparency Website – RETAINED
Requires department to provide data necessary for DTMB to maintain a searchable website that is accessible by the
public at no cost that includes expenditure data, data on payments made to vendors, and data on number of active
employees, job specifications, and wage rates. Executive deletes. House retains.
Sec. 212. State Restricted Funds Report – RETAINED
Requires department and State Budget Office to report on state restricted fund balances, projected state restricted fund
revenues, and state restricted fund expenditures. Executive deletes. House retains.
Sec. 214. Performance Metrics Website – DELETED
Requires department to maintain a publicly accessible website that identifies and tracks its performance against key
metrics used to monitor and improve its performance. Executive deletes. House concurs.
Sec. 216. FTE Vacancies and Remote Work Report – RETAINED
Requires department to provide quarterly report on FTE counts by classification and actual FTE position counts compared
to authorized FTE position counts; requires detailed accounting of vacant positions. Executive revises to delete all
reporting requirements except for a comparison of FTE positions authorized and positions filled. House retains.
Sec. 217. Prioritization of In-person Work for State Workforce – RETAINED
States intent of legislature is to maximize efficiency of state workforce and, where possible, prioritize in-person work;
requires department to post its in-person, remote, or hybrid work policy on its website. Executive deletes. House retains.
Sec. 219. Receipt and Retention of Required Reports – RETAINED
Requires department to receive and retain copies of all reports required; requires federal and state guidelines to be
followed for short-term and long-term retention of records; authorizes department to electronically retain copies of reports
unless otherwise required by federal and state guidelines. Executive deletes. House retains.
House Fiscal Agency 3 5/9/2024
Major Boilerplate Changes from FY 2023-24
Sec. 220. Reporting Requirement on Policy Changes – RETAINED
Requires department to report on policy changes made in order to implement enacted legislation. Executive deletes.
House retains.
Sec. 220. Severance Pay Report – DELETED
Requires department and agencies to report name and any amount of severance pay given to high-ranking department
officials; requires department and agencies to submit annual report on total amount of severance pay remitted to former
employees during prior fiscal year and total number of those employees; defines "severance pay". Executive deletes.
House concurs.
Sec. 222. Work Project Expenditures – RETAINED
Prohibits appropriations from being expended in cases where existing work project authorization is available for the same
expenditures. (Governor deemed this section unenforceable in FY 2023-24.) Executive deletes. House retains.
Sec. 224. Intention to Sell Department Property – RETAINED
Requires department to provide a 60-day notice of intent to sell property. (Governor deemed this section unenforceable
in FY 2023-24.) Executive deletes. House retains.
Sec. 225. Biannual Reporting on Achieving Requirements – RETAINED
Requires department to provide biannual reports on status of work projects, financial status, and employment levels.
Executive deletes. House retains.
Sec. 226. State Administrative Board Transfers – DELETED
Authorizes legislature, by concurrent resolution adopted by majority of members elected to and serving in each house, to
inter-transfer funds if State Administrative Board transfers funds. (Governor deemed this section unenforceable in FY
2023-24.) Executive deletes. House concurs.
Sec. 229. Annual Strategic Plan – DELETED
Requires department to submit its annually updated departmental strategic plan to legislature. Executive deletes. House
concurs.
Sec. 301. Unclassified Positions – RETAINED
Appropriates funding to support unclassified positions; requires department to notify subcommittees prior to submitting
requests for additional unclassified positions or requests for substantive changes to duties of existing unclassified
positions; requires annual report listing current unclassified positions with official titles and responsibilities. Executive
deletes. House retains.
Sec. 306. Billeting Fund – REVISED
Requires annual report of operations and expenditures regarding Billeting Fund account, which supports program
operations of Chargeable Transient Quarters program at National Guard training facilities. Executive revises to create the
fund within the state treasury; authorizes Treasury to receive money and assets from any source for deposit into the fund;
requires Treasury to direct the investment of the fund and to credit interest and earnings to the fund; requires money in
the fund to not lapse to the general fund at the close of the fiscal year; requires the department to be the administrator of
the fund for auditing purposes. House concurs.
Sec. 307. National Guard Tuition Assistance Program – REVISED
Requires DMVA to establish and maintain tuition assistance program for members of Michigan National Guard and other
eligible members as defined in 2014 PA 259; states program's objectives, performance metrics, and reporting
requirements. Executive revises to add reporting on spouses and children as beneficiaries of the program. House concurs
with Executive changes and adds balance of the fund as a reporting requirement.
Sec. 309. Test Project Fees – REVISED
Creates test project fees revolving account to be under control of department to collect fees generated by test project
program; requires funds appropriated from account to support operations of test project program; authorizes unexpended
funds to carry forward and not lapse at close of fiscal year. Executive revises to create the fund within the state treasury;
authorizes Treasury to receive money and assets from any source for deposit into the fund; requires Treasury to direct
the investment of the fund and to credit interest and earnings to the fund; requires money in the fund to not lapse to the
general fund at the close of the fiscal year; requires the department to be the administrator of the fund for auditing
purposes. House concurs.
House Fiscal Agency