FY 2021-22 and FY 2022-23 SUPPLEMENTAL APPROPRIATIONS
Summary: Conference Report
Senate Bill 7 (S-1) CR-1 *
HFA Director: Mary Ann Cleary
Supplemental Coordinator: Robin R. Risko
Overview
Senate Bill 7 (S-1) CR-1 * contains supplemental appropriation adjustments to multiple state department budgets for FY 2021-22 and
FY 2022-23. In sum, FY 2021-22 appropriation adjustments total $146.3 million Gross, of which $128.4 million is federal revenue for
the Department of Health and Human Services. Of the $128.4 million in federal revenue, $120.0 million is for the Food Assistance
Program. FY 2021-22 appropriations include book closing adjustments requested by the State Budget Office initially in Legislative
Transfer Requests 2022-7 and 2022-8, and subsequently in Supplemental Requests 2022-7, 2022-8, and 2022-9. FY 2022-23
appropriation adjustments total $946.2 million Gross ($706.2 million GF/GP). The majority of FY 2022-23 appropriations are allocated
to the Department of Labor and Economic Opportunity.
Appropriation and boilerplate priorities initiated by the legislature and State Budget Office are identified following this overview.
FY 2022-23 APPROPRIATION SUMMARY
FY 2022-23 FY 2022-23
Year-to-Date Supplemental
Budget Area Appropriations Change % Change
Labor and Economic Development Gross $3,816,486,200 $873,000,000 22.9
GF/GP $2,307,839,900 $633,000,000 27.4
Legislature Gross $186,677,000 $3,170,000 1.7
GF/GP $181,283,000 $3,170,000 1.7
State Police Gross $823,705,800 $20,000,000 2.4
GF/GP $552,709,200 $20,000,000 3.6
Transportation Gross $6,104,448,900 $25,000,000 0.4
GF/GP $66,250,000 $25,000,000 37.7
Treasury - Operations Gross $1,579,358,500 $25,000,000 1.6
GF/GP $1,036,440,500 $25,000,000 2.4
Gross $12,510,676,400 $946,170,000 7.6
TOTAL
GF/GP $4,144,522,600 $706,170,000 17.0
Appropriation
FY 2022-23 Supplemental Appropriation Items Change
LABOR AND ECONOMIC OPPORTUNITY
1. ARP – Blight Elimination Program Gross $75,000,000
Includes $75.0 million in federal Coronavirus State Fiscal Recovery Fund revenue for a grant Federal 75,000,000
program to be administered by the State Land Bank Authority for blight elimination. Grants could GF/GP $0
be used to demolish or stabilize vacant residential, commercial, or industrial structures and to
support related expenses. Grants could be awarded to a land bank authority, county, city, village,
or township.
2. ARP – Missing Middle Gap Program Gross $50,000,000
Includes $50.0 million in federal Coronavirus State Fiscal Recovery Fund revenue for a missing Federal 50,000,000
middle housing grant program to be administered by the Michigan State Housing Development GF/GP $0
Authority (MSHDA) to increase the supply of housing stock targeted to missing middle households,
currently defined by MSHDA as households with incomes between 185% and 300% of the Federal
Poverty Guidelines. The program would provide cost defrayment to eligible developers that invest
in, construct, or rehabilitate related properties.
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 Appropriation
FY 2022-23 Supplemental Appropriation Items Change
3. ARP – Removal of Workforce Barriers Gross $15,000,000
Includes $15.0 million in federal Coronavirus State Fiscal Recovery Fund revenue for the Federal 15,000,000
employment, reemployment, and removal of barriers that prevent at-risk individuals from entering GF/GP $0
and staying in the workforce.
4. ARP – Small Business Smart Zones and Business Accelerators Gross $75,000,000
Includes $75.0 million in federal Coronavirus State Fiscal Recovery Fund revenue to support Federal 75,000,000
programs administered by the Michigan Strategic Fund (MSF) for small businesses who were GF/GP $0
disproportionately impacted by the COVID-19 pandemic. MSF would be authorized to award grants
for small business smart zones, business accelerators, and other entrepreneurial activities to local
and nonprofit economic development organizations and additional investment entities.
5. ARP – Statewide Apprenticeship Expansion Gross $25,000,000
Includes $25.0 million in federal Coronavirus State Fiscal Recovery Fund revenue to support Federal 25,000,000
statewide apprenticeship expansion within LEO. GF/GP $0
6. Community Revitalization and Placemaking Grants Program Gross $100,000,000
Includes $100.0 million GF/GP for a grant program to be administered by the MSF to invest in GF/GP $100,000,000
projects that encourage population and tax revenue growth from rehabilitation and development of
certain properties, such as vacant and blighted buildings, historic structures, vacant properties, and
traditional downtown infrastructure.
7. Housing Gap Financing and Affordable Housing Gross $150,000,000
Includes $150.0 million GF/GP for the legislature and SBO to work on creating an affordable GF/GP $150,000,000
housing tax credit gap financing program for the purpose of reducing the housing cost burden of
residents and increasing the supply of and preserving existing affordable housing.
8. Michigan Infrastructure Grants Gross $33,000,000
Appropriates $33.0 million GF/GP for infrastructure grants. Of the $33.0 million, $25.0 million would GF/GP $33,000,000
be allocated to the City of Walker in Kent County for improvements to the Fruit Ridge Avenue bridge
and $8.0 million would be allocated to the Village of Lexington in Sanilac County for redevelopment
of Lexington Harbor.
9. Strategic Outreach and Attraction Reserve Fund (SOAR) Gross $150,000,000
Includes $150.0 million GF/GP to be deposited into the SOAR Fund. GF/GP $150,000,000
10. Upper Peninsula Economic Development Project Gross $200,000,000
Includes $200.0 million GF/GP for a grant to be awarded to a business in Delta County for an GF/GP $200,000,000
economic development project.
LEGISLATURE
11. Independent Citizens Redistricting Commission (ICRC) Gross $3,170,000
Includes $3.2 million GF/GP for the ICRC to cover additional legal costs. Of the $3.2 million, $1.5 GF/GP $3,170,000
million would be reappropriated funding that was part of the $2.2 million GF/GP appropriated in
2022 PA 166 for legal costs of the ICRC. Unexpended funding for the ICRC at the end of the fiscal
year is required to lapse to the general fund. The $1.5 million was not spent by the end of FY 2021-
22.
STATE POLICE
12. In-Service Training Gross $20,000,000
Includes $20.0 million GF/GP for deposit into the Law Enforcement Officers Training Fund to GF/GP $20,000,000
support in-service training standards.
TRANSPORTATION
13. Category (b) Projects Gross $25,000,000
Includes $25.0 million GF/GP for Transportation Economic Development Fund category (b) GF/GP $25,000,000
projects. Category (b) projects are defined in the Transportation Economic Development Fund Act
as “projects for construction or preservation of streets in cities and villages with populations of
10,000 or less, including, but not limited to, reconstruction, replacement, rehabilitation, and capital
preventive maintenance.” (MCL 247.909)
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 Appropriation
FY 2022-23 Supplemental Appropriation Items Change
TREASURY
14. Water Shutoff Prevention Fund Gross $25,000,000
Includes $25.0 million GF/GP to be deposited into the Water Shutoff Prevention Fund that would GF/GP $25,000,000
be created in Treasury under boilerplate Sec. 601.
FY 2022-23 Supplemental Boilerplate Items
GENERAL SECTIONS
Sec. 201. State Spending and State Appropriations Paid to Local Units of Government
States amount of state spending from state sources in the bill and amount of state spending to be paid to local units of government.
Sec. 202. Appropriations Subject to Management and Budget Act
Subjects appropriations to the Management and Budget Act, 1984 PA 431.
Sec. 203. Allocation and Expenditure of Appropriations
Requires allocation and expenditure of appropriations in a manner consistent with federal rules and regulations.
Sec. 204. Appropriations Subject to Federal Audit and Reporting Requirements
Subjects appropriations to applicable federal audit and reporting requirements; requires prompt action if instances of noncompliance
are identified; requires the state budget director to notify appropriations committees and fiscal agencies of instances of noncompliance.
Sec. 205. Report on Status of Federal COVID Relief Appropriations
Requires the state budget director to report on the status of all funds appropriated related to the coronavirus relief effort on a monthly
basis until all funds are exhausted.
LABOR AND ECONOMIC OPPORTUNITY
Sec. 301. ARP – Blight Elimination Program
Requires State Land Bank Authority to establish and administer a grant program for blight elimination; authorizes grants to be used
to demolish or stabilize vacant residential, commercial, or industrial structures and to be awarded to a land bank authority, county,
city, village, or township; designates unexpended funds as a work project appropriation.
Sec. 302. ARP – Missing Middle Gap Program
Requires Michigan State Housing Development Authority (MSHDA) to develop and administer a missing middle housing grant program
to increase the supply of housing stock targeted to missing middle households; authorizes funding to be used to provide cost
defrayment to eligible developers that invest in, construct, or rehabilitate related properties; requires projects to be either new
construction, substantial rehabilitation, or a combination of both and to be appropriate for the area; designates unexpended funds as
a work project appropriation.
Sec. 303. ARP – Removal of Workforce Barriers
Requires LEO to allocate funding for the employment, reemployment, and removal of barriers that prevent at-risk individuals from
entering and staying in the workforce; authorizes funding to be used to support transportation services, child care, clothing, and work
tools.
Sec. 304. ARP – Small Business Smart Zones and Business Accelerators
Requires MSF to administer support programs for small businesses that were disproportionately impacted by the COVID-19 pandemic;
authorizes grants to be awarded for small business smart zones, business accelerators, and other entrepreneurial activities to local
and nonprofit economic development organizations and additional investment entities; requires report; designates unexpended funds
as a work project appropriation.
Sec. 305. ARP – Statewide Apprenticeship
Requires LEO to develop and administer a statewide apprenticeship expansion program.
Sec. 306. Community Revitalization and Placemaking Grants Program
Requires MSF to administer a grant program to invest in projects that encourage population and tax revenue growth from rehabilitation
and development of certain properties, such as vacant and blighted buildings, historic structures, vacant properties, and traditional
downtown infrastructure; requires report; designates unexpended funds as a work project appropriation.
Sec. 307. Housing Gap Financing and Affordable Housing
Expresses legislative intent that the legislature and SBO work on creating an affordable housing tax credit gap financing program for
the purpose of reducing the housing cost burden of residents and increasing the supply of and preserving existing affordable housing.
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FY 2022-23 Supplemental Boilerplate Items
Sec. 308. Michigan Infrastructure Grants
Allocates $25.0 million to the City of Walker in Kent County for improvements to the Fruit Ridge Avenue bridge; allocates $8.0 million
to the Village of Lexington in Sanilac County for redevelopment of Lexington Harbor.
Sec. 309. Grant Agreements
Requires MSF to execute a grant agreement with certain requirements for each Michigan Infrastructure Grant awarded; requires
recipients to respond to reasonable requests; requires quarterly updates on status of grants.
Sec. 310. Strategic Outreach and Attraction Reserve Fund (SOAR)
Requires funding be deposited into the SOAR Fund.
Sec. 311. State Restricted Contingency Authorization
Authorizes up to $150.0 million in state restricted contingency funds; prohibits funds from being expended unless authorized by a
legislative transfer.
Sec. 312. Upper Peninsula Economic Development Project
Requires an economic development project grant be awarded to a business in the City of Escanaba and that the business invest at
least $1.1 billion at the specified location; requires grant to be performance based and to include rules and guidelines of MSF or
MEDC.
Sec. 313. Administration of ARP-Funded Programs
Authorizes LEO to hire limited-term employees and to expend up to 2.5% of ARP appropriations for administrative implementation
and oversight of ARP-funded programs.
LEGISLATURE
Sec. 401. Independent Citizens Redistricting Commission (ICRC)
States legislative intent that ICRC funding be used to cover the commission's additional legal costs in a manner that is consistent with
the current dormancy plan of the ICRC.
STATE POLICE
Sec. 501. In-Service Training
Requires funding appropriated for in-service training to be deposited into the Law Enforcement Officers Training Fund; appropriates
all funds in the Law Enforcement Officers Training Fund to support implementation of annual in-service training standards for licensed
law enforcement officers; requires MCOLES to report on required in-service training standards, use of funds, and recommendations
for improvements.
Sec. 502. MCOLES Staffing
Authorizes the Michigan Commission on Law Enforcement Standards to increase FTE position capacity by 7.0 to support development
and implementation of in-service training standards and requirements.
TREASURY
Sec. 601. Water Shutoff Prevention Fund
Establishes the Water Shutoff Prevention Fund within Treasury; requires funding to be spent only upon appropriation or legislative
transfer; requires unexpended funding at the close of a fiscal year to remain in the fund and not lapse to the general fund.
House Fiscal Agency 4 1/27/2023
 FY 2021-22 APPROPRIATION SUMMARY
FY 2021-22 FY 2021-22
Year-to-Date Supplemental
Budget Area Appropriations Change % Change
Corrections Gross $2,065,873,000 $300,000 0.0
GF/GP $1,065,369,400 $0 0.0
Environment, Great Lakes, and Energy Gross $2,653,368,600 $50,000 0.0
GF/GP $282,945,300 $0 0.0
Health and Human Services Gross $34,