FY 2021-22: AGRICULTURE AND RURAL DEVELOPMENT
Summary: As Passed by the House
House Bill 4394 (H-3)
Analyst: William E. Hamilton
Difference: House
FY 2020-21 YTD FY 2021-22 FY 2021-22 FY 2021-22 FY 2021-22 From FY 2020-21 YTD
as of 2/11/21 Executive House Senate Conference Amount %
IDG/IDT $324,400 $320,000 $80,000 $ $ ($244,400) (75.3)
Federal 13,129,500 13,599,800 3,400,300 (9,729,200) (74.1)
Local 0 0 0 0 --
Private 71,300 71,300 17,800 (53,500) (75.0)
Restricted 44,153,000 44,377,300 11,051,300 (33,101,700) (75.0)
GF/GP 63,616,800 57,883,900 13,172,900 (50,443,900) (79.3)
Gross $121,295,000 $116,252,300 $29,222,300 $ $ ($93,572,700) (77.1)
FTEs 525.0 526.0 507.0 (18.0) (3.4)
Notes: (1) FY 2020-21 year-to-date figures include mid-year budget adjustments through February 11, 2021. (2) Appropriation
figures for all years include all proposed appropriation amounts, including amounts designated as “one-time.”
Overview
Michigan Department of Agriculture and Rural Development (MDARD) key programs and priorities include ensuring food
safety and security, protecting animal health and welfare, managing invasive exotic species, regulating pesticide use,
certifying agricultural commodities, ensuring environmental stewardship, consumer protection, and promoting the state’s
agricultural economy.
FY 2020-21 FY 2021-22
Year-to-Date House
Major Budget Changes from FY 2020-21 YTD Appropriations (as of 2/11/21) Change
The House-passed bill appropriates one quarter of the anticipated annual appropriation. For major budget changes listed
below the quartered appropriations are annualized for comparison purposes.
1. Unclassified Salaries FTE 6.0 (5.0)
House eliminates funding for five of the six unclassified positions Gross $599,900 ($444,500)
recognized in the current-year budget. GF/GP $599,900 ($444,500)
2. Information Technology Gross $2,068,200 $254,900
Executive provides ongoing funding for support and maintenance of IDG 3,200 0
licensing and inspection systems. House concurs. Restricted 205,800 44,900
GF/GP $1,859,200 $210,000
3. Food Safety/Quality Assurance FTE 103.0 (10.0)
Executive recommended no baseline changes other than economic Gross $18,276,600 ($1,500,000)
adjustments. House cut baseline funding by $1.5 million GF/GP and Federal 2,698,000 0
reduced FTE authorization by 10.0 FTEs. Restricted 6,319,800 0
GF/GP $9,258,800 ($1,500,000)
4. Michigan Animal Agriculture Alliance Gross $3,000,000 $0
Executive includes $1.7 million GF/GP for a Michigan State University GF/GP $3,000,000 $0
(MSU) animal agriculture research grant program, a $1.3 million
reduction from current year. House retains current-year funding level,
$3.0 million GF/GP.
5. Laboratory Services FTE 108.5 0.0
Executive recognizes a $600,000 federal Health and Human Gross $17,752,400 $600,000
Services/Food and Drug Administration grant to support integrated food IDG 227,800 0
safety system. House concurs. Federal 2,817,600 600,000
Restricted 7,389,900 0
GF/GP $7,317,100 $0
House Fiscal Agency 1 5/12/2021
 FY 2020-21 FY 2021-22
Year-to-Date House
Major Budget Changes from FY 2020-21 YTD Appropriations (as of 2/11/21) Change
6. Qualified Forest Program FTE 9.0 (3.0)
House reduces baseline funding by $491,500 GF/GP and reduces FTE Gross $2,662,800 ($491,500)
authorization by 3.0 FTEs. Restricted 1,080,100 0
GF/GP $1,582,700 ($491,500)
7. Office of Rural Development FTE 0.0 0.0
Executive proposed using $175,000 from the state restricted Rural Gross $0 $0
Development Fund to support 1.0 FTE position, and related costs, in a Restricted 0 0
new Office of Rural Development. The governor had also requested a GF/GP $0 $0
supplemental appropriation to establish the new position in the current
year. House does not include.
8. County Fairs Gross $500,000 $491,500
House increases baseline funding for county fair grant program to GF/GP $500,000 $491,500
$991,500 GF/GP, a $491,500 increase.
9. End of One-Time CREP Funding Gross $4,400,000 ($4,400,000)
Executive eliminated $4.4 million GF/GP one-time appropriation for the GF/GP $4,400,000 ($4,400,000)
Conservation Reserve Enhancement Program (CREP), a targeted
environmental protection program. House concurs and does not include
this one-time item in FY 2021-22 baseline.
10. Horse Racing Advisory Commission Gross $0 $100
House includes $100 placeholder from the Agriculture Equine Industry Restricted 0 100
Development Fund. GF/GP $0 $0
11. Economic Adjustments Gross NA ($415,700)
Reflects net decrease of $415,700 Gross ($289,900 GF/GP). Budgeted IDG NA (1,200)
increases for salaries and wages (negotiated 2.0% increase on October Federal NA (27,900)
1, 2021 and 1.0% on April 1, 2022), and increases related to actuarially Restricted NA (96,700)
required retirement contributions, worker’s compensation, and building GF/GP NA ($289,900)
occupancy charges, are offset by a reduction in calculated contributions
for retiree medical benefits. Executive and House include.
Major Boilerplate Changes from FY 2020-21
Sec. 215. Communication with the Legislature – RETAINED
Executive deletes section that prohibits department from taking disciplinary action against an employee for communicating
with the Legislature. House retains.
Sec. 216. Report on FTE Positions and Remote Work – RETAINED
Executive deletes reporting requirement on staffing levels in relation to FTE authorization; employees authorized to work
remotely; and related cost savings. House retains.
Sec. 217. Work Project Limits – RETAINED
Executive deletes section that requires that work project balances be exhausted before expenditure from part 1
appropriations. House retains.
Sec. 218. State Administrative Board Transfers – RETAINED
Executive deletes section that provides for the legislature to intertransfer funds within departmental budget if the State
Administrative Board transfers funds from an appropriation within this departmental budget. House retains.
Sec. 220. Impact of New Legislation – RETAINED
Executive deletes section that requires a report on specific policy changes made to implement new public acts enacted
in prior calendar year. House retains.
Sec. 221. Severance Pay Report – NEW
House includes new reporting requirements related to severance pay paid to department personnel upon the termination
of employment.
House Fiscal Agency 2 5/12/2021
Major Boilerplate Changes from FY 2020-21
Sec. 222. Prohibition on Covid-19 Passport – NEW
House includes restrictions on the use of Covid-19 “passports” to document vaccination status.
House Fiscal Agency 3 5/12/2021