Appropriations Summary

Actual[1]

Recommended

Savings

Interdepartmental Grants

$109,548,100

$109,347,800

$200,300

Federal Funds

$358,600

$358,600

$0

General Fund/General Purpose

$42,836,300

$42,836,300

$0

Special Revenue Funds

$35,355,300

$33,350,300

$2,005,000

Gross Appropriation

$188,098,300

$185,893,000

$2,205,300

The function of the Michigan Department of Management and Budget (MDMB) is to provide “financial management, property management, capital facility development, procurement, retirement and related benefits, employee benefits programs, accounting and payroll functions, geographic information, systems development, and office support services to state agencies.” It also “prepares, presents, and executes the state budget on behalf of the governor.”[2]

In past years the department had become something of a catch-all for various government functions. This is no longer the case, as many activities have been transferred to other departments.  The MDMB activities are now limited to its core mission of providing management services to other state departments. Significantly, providing information services to state departments is no longer part of that mission, having been transferred to the new Department of Information Technology.  However, the department does continue to be the custodian for certain provisions of labor agreements between the state and its employees (see union “Professional Development Funds, below).

Program: State employee union “Professional Development Funds[3]

Appropriation:

All from Special Revenue Funds:

$2,005,000

 

Total:

$2,005,000[4]

Program Description:

This appropriation funds state employee union “Professional Development Funds.”  These programs provide retraining, training, seminars, workshops and conferences for members of unions representing state employees.

Recommended Action:

This appropriation should be eliminated.  Organized labor plays an indispensable role in advancing the interests of workers. However, labor unions and their programs, like corporations, should not be subsidized by taxpayers for job training or any other reason. They should be required to earn their support from the voluntary contributions of their members. Savings: 2,005,000.

Program: Interdepartmental mail and delivery 

Appropriation:

All from Interdepartmental Grants:

$2,003,007

 

Total:

$2,003,007[5]

Program Description:

This appropriation funds interdepartmental mail and freight delivery services to state agencies and offices throughout the state.

 

Recommended Action:


This service should be outsourced.  Based on experience with privatization programs involving similar government operations, it is likely that significant savings and quality improvements can be realized by subjecting this function to market competition. Currently 29 full-time-equivalent staff positions are apportioned to this function.  Savings of 10 percent to 30 percent are not uncommon in government outsourcing initiatives.  For purposes of calculating savings, the Mackinac Center for Public Policy will use a conservative 10 percent.  Savings: $200,300.


 

[1] Act No. 528, Public Acts of 2002, p. 7.

[2] Michigan Department of Management and Budget, “Overview.” Accessible on the Internet at http://www.michigan.gov/dmb/0,1607,7-150-9131_9353_13023---,00.html.

[3] Includes Professional Development Fund-MPES; Professional Development Fund-UAW; Professional Development Fund, Local 31-M; Professional Development Fund-MSC; Professional Development Fund – AFSCME; Professional Development Fund-Nonexclusively Represented Employees.

[4] Ibid.

[5] Per Michigan Administrative Information Network database search by Jessica Runnels, Senate Fiscal Agency.