Governor Signs FY '03 Supplemental Appropriation Bill, Funds Homeland Security; Reduces General Fund Spending

Contact: Liz Boyd 517-335-6397

July 8, 2003

Governor Jennifer M. Granholm has signed a supplemental appropriations bill for this fiscal year that will enable the state to improve its homeland security preparedness and fight an agricultural disease that threatens to wipe out the state’s Ash tree population. The supplemental appropriations bill, House Bill 4032, includes nearly $90 million in federal dollars; approximately $80 million is ear-marked for homeland security improvements, while another $9 million is dedicated to eradicate the Emerald Ash Borer, which threatens to wipe out Michigan’s Ash tree population.

“Thanks to new federal funds we will be able to protect our families by preparing our first responders and strengthening our state against threats of terrorism,” said Governor Granholm. “We will also step up our efforts to contain and eradicate Emerald Ash Borer in southeastern Michigan.”

The entire supplemental bill totals $357.4 million and reduces General Fund spending for FY 2003 by $7.8 million. The reduction comes as a result of spending reductions associated with Executive Order 2003-3.

The supplemental bill also directs:

  • $8.4 million in federal funds to the Family Independence Agency to help low-income families pay their energy bills;
  • $210,000 to the Department of Military and Veterans Affairs (DMVA) from the federal government to set up and staff six family service centers around the state to aid families during deployment; and
  • $50,000 to the DMVA for support services for families of Michigan National Guard members who have been called to active duty.

While signing the bulk of the appropriation bill, Granholm vetoed 34 road projects that were funded by reducing the Department of Transportation’s lump sum road and bridge construction line item by $181.2 million. These projects were removed from the previously published five-year road and bridge program and deferred as part of the Preserve First program.

“During these tight budgetary times, we must focus what little money we have on preserving the roads we have,” said Governor Granholm. “Though I have vetoed these projects, I will continue to work with the Legislature to identify priority road projects.”

The Governor also vetoed a $2.2 million general fund appropriation to reimburse local units of governments in Oakland County for the clean-up costs surrounding an April ice storm. Upon recommendation of the Michigan State Police, the Governor did not declare the area as a state of emergency because the impact of the storm did not meet the state’s specified disaster or emergency criteria.

The Governor also vetoed $1.5 million from the cleanup and redevelopment trust fund to cover a shortfall in the current year appropriation for payments in lieu of taxes and an $800,000 appropriation to the Attorney General’s budget. These items are a topic of discussion in the 2004 budget talks.

As signed, the supplemental bill includes:

  • restoration of a $50,000 appropriation to Focus: HOPE in Detroit that will allow job training programs to continue;
  • reductions of $1.1 million for Judiciary and $1.8 million for Legislature;
  • $16.7 million in federal revenues to the Department of State to assist in the implementation of the Help America Vote Act.