FY 2021-22: DEPARTMENT OF MILITARY AND VETERANS
AFFAIRS
Summary: As Passed by the House
House Bill 4466 (H-1)
Analyst: Michael Cnossen
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 $101,800 $101,800 $101,800 $ $ $0 0
Federal 123,626,100 120,015,300 120,015,300 (3,610,800) 0
Local 0 0 0 0 --
Private 630,000 640,000 640,000 10,000 0
Restricted 20,313,400 21,336,700 21,336,700 1,023,300 0
GF/GP 84,280,200 75,594,300 74,844,300 (9,435,900) (11.2)
Gross $228,951,500 $217,688,100 $216,938,100 $ $ ($12,013,400) (5.2)
FTEs 1,061.5 1,063.5 1,058.5 (3.0) (0.3)
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
The Department of Military and Veterans Affairs provides for the operations of the Michigan National Guard in support of
the military and security needs of the state and the federal government. The department, through the Michigan Veterans
Affairs Agency, also 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 three state veterans homes.
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
1. Chesterfield Township Home for Veterans Gross $8,590,000 $12,394,700
Executive provides $12.4 million Gross ($1.5 million GF/GP) to align with Federal 1,100,000 8,525,000
increased expenses for the facility’s first fiscal year being fully Restricted 375,000 2,340,000
operational. House concurs. GF/GP $7,115,000 $1,529,700
2. Grand Rapids Home for Veterans Gross $42,753,700 ($13,375,400)
Executive reduces $13.4 million Gross ($7.3 million GF/GP) to reflect Federal 14,865,000 (3,409,000)
decreased expenses of operating the home at the new smaller facility in Restricted 5,915,000 (2,640,000)
its first fully operational fiscal year. $4.1 million GF/GP of one-time GF/GP $21,973,700 ($7,326,400)
funding from FY 2020-21 for the home remains in FY 2021-22 to
continue offering services to 29 residents living in the existing facility as
they await moving to new living arrangements outside the home. House
concurs.
3. National Guard Special Maintenance Gross $20,000,000 $10,000,000
Executive authorizes $10.0 million in additional federal revenue from the Federal 20,000,000 10,000,000
National Guard Bureau to support maintenance projects at armories GF/GP $0 $0
statewide, for a total of $30.0 million federal in FY 2021-22. House
concurs.
House Fiscal Agency 1 5/13/2021
 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
4. Michigan Veterans Trust Fund FTE 6.0 2.0
Executive provides $1.2 million in state restricted funds from the Gross $2,400,000 $1,247,200
Michigan Veterans Trust Fund and authorizes 2.0 FTE positions for the Restricted 2,400,000 1,247,200
administration and awarding of more emergency relief grants to veterans GF/GP $0 $0
in anticipation of greater needs as a result of the COVID-19 pandemic
and to support planned partnerships with outside veteran support
programs. From the $1.2 million increase, $1.0 million is recommended
for grants and $227,200 is recommended for administration. House
concurs.
5. Military Retirement Gross $658,000 $217,000
Executive provides $217,000 GF/GP for the Military Retirement System GF/GP $658,000 $217,000
to meet anticipated retirement obligations based on annual actuarial
valuation of military retirement pension benefits. House concurs.
6. Morale, Welfare, and Recreation Restricted Fund Gross $0 $100,000
Executive authorizes $100,000 state restricted from a new Morale, Restricted 0 100,000
Welfare, and Recreation (MWR) Fund created in boilerplate to receive GF/GP $0 $0
fees for use of recreation equipment at Camp Grayling and to support a
new MWR program that will provide recreational activities for National
Guard members and their families. House concurs.
7. Equipment Testing Project Fees Gross $0 $100,000
Executive authorizes the department to expend $100,000 in state Restricted 0 100,000
restricted funds collected from private companies that pay to test GF/GP $0 $0
equipment at state military facilities. Funds will support maintenance
costs of the training ranges. Funding for Test Project Fees was
previously $50,000 in FY 2019-20 and $0 in FY 2020-21. House concurs.
8. Commander’s Cottage Rental Fees Gross $0 $25,000
Executive authorizes $25,000 state restricted for the department to Restricted 0 25,000
expend funds collected from rental fees for the new Commander’s GF/GP $0 $0
Cottage, paid by the Commander to live there, for maintenance of the
building. House concurs.
9. Authorization for Private MVAA Donations Gross $0 $10,000
Executive authorizes $10,000 of private funding for the MVAA to receive Private 0 10,000
private donations without the need for legislative contingency fund GF/GP $0 $0
transfer approval. House concurs.
10. Michigan Veterans Homes Information Technology Transfer Gross $1,409,400 $0
Executive transfers $1.4 million Gross ($105,000 GF/GP) from the Federal 560,300 0
department to the independent Michigan Veterans Facility Authority to Restricted 744,100 0
support IT needs of the Michigan Veterans Homes and to align with the GF/GP $105,000 $0
budget structure established in FY 2020-21. House concurs.
11. Billeting Fund Reductions Gross $1,460,400 ($84,000)
Executive reduces $84,000 state restricted from the Billeting Fund to Restricted 1,460,400 (84,000)
align with revenue and expenditure projections. Revenue in the fund is GF/GP $0 $0
collected by fees and surcharges paid by military and civilian personnel
utilizing Michigan National Guard transient quarters and used to support
operations of transient quarters facilities. House concurs.
12. Removal of Current Year One-Time Funding Gross $22,014,000 ($22,014,000)
Executive eliminates $19.2 million Gross ($250,000 GF/GP) of one-time Federal 18,905,000 18,905,000
funding items appropriated in FY 2020-21: GF/GP $3,109,000 ($3,109,000)
• $18.9 million federal – Camp Grayling National Guard Readiness
Training Center
• $2.9 million GF/GP for coronavirus response activities.
• $250,000 GF/GP – Veterans benefits eligibility study
House concurs.
House Fiscal Agency 2 5/13/2021
 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
13. Unclassified Positions FTE 9.0 (5.0)
House reduces $750,000 GF/GP and 5.0 unclassified FTE positions for Gross $1,613,700 ($750,000)
department administrative savings. GF/GP $1,613,700 ($750,000)
14. Economic Adjustments Gross NA $116,100
Reflects increased costs of $116,100 Gross ($2,800 GF/GP) for Federal NA 178,200
negotiated salary and wage increases (2.0% on October 1, 2021 and Restricted NA (64,900)
1.0% on April 1, 2022), actuarially required retirement contributions, GF/GP NA $2,800
worker’s compensation, building occupancy charges, and other
economic adjustments. Executive and House include.
Major Boilerplate Changes from FY 2020-21
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. Executive deletes. House retains.
Sec. 210. Contingency Authorization– RETAINED
Appropriates up to $8.6 million in federal, $1.1 million in state restricted, $250,000 in local, and $100,000 in private
contingency authorization; authorizes expenditure of funds after legislative transfer to specific line items. Executive
revises to appropriate up to $12.0 million in federal, $3.0 million in state restricted, and $500,000 in local contingency
authorization. House retains.
Sec. 216. FTE Vacancies and Remote Work Report – RETAINED
Requires departments and agencies to provide quarterly reports that provide FTE counts by classification and actual FTE
position counts compared to authorized FTE position counts; requires report on number of employees engaged in remote
work in 2020, number of employees authorized to work remotely, and actual number working remotely, estimated net cost
savings from remote work, and reduced use of office space associated with remote work. Executive deletes. House
retains.
Sec. 217. Work Project Expenditures – RETAINED
Prohibits appropriations from being expended in cases where existing work project authorization is available for the same
expenditures. Executive deletes. House retains.
Sec. 218. State Administrative Board Transfers – RETAINED
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. Executive deletes. House retains.
Sec. 219. Receipt and Retention of Required Reports – RETAINED
Requires department to receive and retain copies of all reports required in Article VIII; requires federal and state guidelines
to be followed for short-term and long-term retention of records; authorizes departments to electronically retain copies of
reports unless otherwise required by federal and state guidelines. Executive deletes. House retains.
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. 225. Court Settlements Report – RETAINED
Requires department to report tentative plans for required payment of any court judgment against department and details
regarding timing and budget impact the payment will have on department. Executive deletes. House retains.
Sec. 227. Severance Pay Report – NEW
Requires the department and agencies to report the name and any amount of severance pay given to any high-ranking
department official; requires the department and agencies to maintain an internet site and post severance pay in excess
of 6 weeks of wages for a former department or agency employee of any rank; requires the department and agencies to
submit an annual report on the total amount of severance pay remitted to former employees during the prior fiscal year
and the total number of those employees; defines "severance pay". House adds.
House Fiscal Agency 3 5/13/2021
Major Boilerplate Changes from FY 2020-21
Sec. 228. Prohibitions on State Employer COVID-19 Vaccine Status Verifications – NEW
Prohibits various state government entities from requiring proof of COVID-19 vaccination as a condition of accessing any
state services or facilities, producing COVID-19 vaccine passports, and providing information to other parties for inclusion
in a COVID-19 vaccine passport. House adds.
Sec. 309. Test Project Fees – NEW
Creates the test project fees revolving account to be under the control of the department to collect fees generated by the
test project program; requires funds appropriated from the account to support operations of the test project program;
authorizes money in the account to carry forward and not lapse at the close of the fiscal year. Executive adds. House
concurs.
Sec. 310. Morale, Welfare, and Recreation Fund – NEW
Creates the Morale, Welfare, and Recreation (MWR) Fund to receive money generated from operation of the MWR
program; requires the department to be administrator of the fund for auditing purposes; requires funds appropriated from
the fund to support operations of the MWR program; authorizes money in the fund to carry forward and not lapse at the
close of the fiscal year. Executive adds. House concurs.
Sec. 311. Commander’s Cottage Rental Fees – NEW
Creates the rental fees revolving account to be under the control of the department to collect rental fees for the
Commander’s Cottage, the commander’s residence; requires funds appropriated from the account to support operations
of the program; authorizes money in the account to carry forward and not lapse at the close of the fiscal year. Executive
adds. House concurs.
Sec. 312. Michigan Volunteer Defense Force Funding Report – NEW
Requires the department to report at the start of the fiscal year on the amount of appropriated funds that will be made
available to the Michigan Volunteer Defense Force and any restrictions or stipulations on those funds and an explanation
if there are any restrictions or stipulations. House adds.
Sec. 404. MVAA Private Donations – NEW
Authorizes receipt of private donations to the MVAA in excess of funds appropriated in part 1 and permits expenditure of
those funds for the purpose designated by the donor, if specified; requires the department to give notification of receipt of
a donation within 14 calendar days, including the amount of the donation and purpose for which the funds will be
expended, if known. Executive adds. House concurs.
Sec. 409. Interagency Agreement with Department of Health and Human Services – RETAINED
Requires department to enter into cooperative agreement with DHHS to identify veteran Medicaid recipients who may be
eligible for other benefits; requires annual report of number of veterans identified and referred for additional benefits under
agreement. Executive deletes. House retains.
Sec. 410. County Veterans Service Fund – RETAINED
Requires funds appropriated for County Veteran Service Fund to be deposited into County Veteran Service Fund created
in 2018 PA 210; stipulates funds are available for expenditure to support county veterans’ services grants. Executive
revises by allocating $200,000 from the fund to be used to cover costs associated with administration and providing
technical assistance to counties participating in the grant program. House retains.
Sec. 411. Veterans Cemetery – DELETED
Requires MVAA to conduct a needs, feasibility, and cost assessment of establishing and maintaining a new veterans
cemetery; requires assessment to consider availability of federal funds for its determinations; requires MVAA to report
findings of assessment by end of fiscal year. Executive deletes. House concurs.
Sec. 451. Board of Managers and Michigan Veteran’s Facility Authority – DELETED
Requires Board of Managers and Michigan Veterans’ Facility Authority to exercise certain regulatory and governance
authority over Michigan veterans homes. Executive deletes. House concurs.
House Fiscal Agency 4 5/13/2021
Major Boilerplate Changes from FY 2020-21
Sec. 452(1)-(3), (10)-(19). Veterans Homes Service and Care Requirements – REVISED
Requires Michigan veterans homes to meet applicable standards of care as provided under listed federal and state legal
authorities; specifies standards around issues concerning psyc