FY 2011-12 SUPPLEMENTAL APPROPRIATIONS

Summary: House Floor Substitute

Senate Bill 364 (H-3)

Analysts: Kevin Koorstra and Paul Holland

	Executive		Senate		House
Budget Area	Gross	GF/GP	Gross	GF/GP	Gross	GF/GP
Human Services	$0	$0	$35,000,000	$0	$35,000,000	$0
Licensing and Regulatory	0	0	23,000,000	0	23,000,000	10,000,000
TOTAL	$0	$0	$58,000,000	$0	$58,000,000	$10,000,000
OVERVIEW Senate Bill 364 (H-3) would appropriate $48.0 million from the new Vulnerable Household Warmth Fund proposed in Senate Bill 864 and $10.0 million in GF/GP. From the restricted fee revenue, $35.0 million would be allocated to supplement the federally funded Low-income Home Energy Assistance Program (LIHEAP) within the Department of Human Services (DHS). Senate Bill 364 (H-3) would also allocate $23.0 million to community agencies to provide heating/energy assistance. These new funds would be used to replace the Low Income Home Energy Efficiency Fund (LIEEF). The Michigan Court of Appeals has questioned the Public Services Commission's authority to approve the collection of those funds, so LIEEF collections are currently in escrow.

FY 2011-12 Appropriation Items:	Executive	Senate	House
HUMAN SERVICES *1. State Emergency Relief Energy Services - DHS Allocation* Appropriates $35.0 million, on a 1-time basis, in new restricted Vulnerable Household Warmth Funds for state emergency relief energy services. These funds would increase the amount of funding that is available in DHS for crisis energy assistance. The Vulnerable Household Warmth Fund would be created through Senate Bill 864.	Gross Restricted GF/GP	-- -- --	$35,000,000 35,000,000 $0	$35,000,000 35,000,000 $0
LICENSING AND REGULATORY AFFAIRS *2. Vulnerable Household Warmth Assistance* Appropriates $23.0 million, on a 1-time basis, for grants awarded by the Public Service Commission in docket no. U-13129 (e.g. Salvation Army, THAW, TrueNorth, MCAA, etc.) through LARA. These community agencies would use these funds to provide direct assistance with energy bills and shut-off prevention for low-income households. House appropriates $10.0 million in GF/GP to offset the amount of funding needed to be collected in the Vulnerable Household Warmth Fund.	Gross Restricted GF/GP	-- -- --	$23,000,000 23,000,000 $0	$23,000,000 13,000,000 $10,000,000

FY 2011-12 Appropriation Items:

Executive

Senate

House

HUMAN SERVICES

1. State Emergency Relief Energy Services - DHS Allocation

Appropriates $35.0 million, on a 1-time basis, in new restricted Vulnerable Household Warmth Funds for state emergency relief energy services. These funds would increase the amount of funding that is available in DHS for crisis energy assistance. The Vulnerable Household Warmth Fund would be created through Senate Bill 864.

Gross

Restricted

GF/GP

$35,000,000

35,000,000

$35,000,000

35,000,000

LICENSING AND REGULATORY AFFAIRS

2. Vulnerable Household Warmth Assistance

Appropriates $23.0 million, on a 1-time basis, for grants awarded by the Public Service Commission in docket no. U-13129 (e.g. Salvation Army, THAW, TrueNorth, MCAA, etc.) through LARA. These community agencies would use these funds to provide direct assistance with energy bills and shut-off prevention for low-income households. House appropriates $10.0 million in GF/GP to offset the amount of funding needed to be collected in the Vulnerable Household Warmth Fund.

Gross

Restricted

GF/GP

$23,000,000

23,000,000

$23,000,000

13,000,000

$10,000,000

FY 2011-12 Boilerplate Items:

Executive

Senate

House

HUMAN SERVICES

1. State Emergency Relief Energy Services

Allocates $35.0 million, on a 1-time basis, for state emergency relief energy services.

Sec. 301

LICENSING AND REGULATORY AFFAIRS

2. Vulnerable Household Warmth Assistance

Allocates $23.0 million, on a 1-time basis, for grants awarded by the Public Service Commission in docket no. U-13129 (e.g. Salvation Army, THAW, TrueNorth, MCAA, etc.). States that grants shall not be made to DHS.

Sec. 350