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MDA’s budget cuts not yet as bad as initially expected

By KEVIN WALKER
Michigan Correspondent

 
LANSING, Mich. — A bill that was passed out of the state House of Representatives doesn’t contain some cuts agricultural groups feared would be included in the upcoming budget, especially a fee increase on dairy producers.

“We think it’s a step in the right direction, but it’s still not in a condition that we’re real excited about it,” said Matt Smego, a lobbyist for the Michigan Farm Bureau (MFB).

The cuts to the dairy inspection program could still be put back into the budget. “We are opposed to any additional increases in dairy inspection fees to dairy farmers,” said Sheila Burkhardt, a spokeswoman for the Michigan Milk Producers Assoc. (MMPA). “It is not something they can directly pass on to customers.”

Early last month the MMPA put out a statement that it is “deeply disappointed to see an additional reduction in the dairy program under the governor’s budget for MDA. We are further disappointed to see a proposed fee of $500,000 placed on the dairy industry to fund the program. MMPA strongly believes that the inspection program carried out by the (Michigan Department of Agriculture’s) food and dairy division is a benefit to all citizens.”

The dairy inspection, known as the Grade A inspection program, officially became part of the state’s responsibility in the mid-1960s, according to Burkhardt. Before that it had been handled and paid for by county and city governments.

In February the governor proposed a budget for the MDA that includes a number of other cuts, including elimination of funding for migrant labor housing inspections and elimination of funding for the Michigan Agricultural Environmental Assurance Program (MAEAP).

Under the governor’s budget, landowners who still want their migrant housing inspected by the state would have to pay a $30 per-occupant fee to cover the cost. Under the House-passed bill, HB 5875, $400,000 was put back into the MDA’s budget to cover the cost of the inspections.

Under the governor’s budget, the newly unfunded MAEAP program would be transferred to the Michigan Agricultural Experiment Station. The governor’s budget also calls for a 30 percent cut in the Right-to-Farm program.

It’s now up to the state Senate to put its mark on the appropriations budget.

Other cuts that remain in the House bill include a $379,400 cut in the pesticide and plant pest management division, which has responsibility for administering the plant health and export certification program, and $259,400 from the animal industry division, which has responsibility over animal shelters in the state.
According to Smego, the MDA has taken many budget hits over the past several years. The Farm Bureau has been consistent in its position that cuts in education, human services and corrections should come before there are any more cuts to the MDA’s relatively small budget.

“The industry has been pretty united in saying we wanted funding to stay at the (20)09-10 levels,” Smego said.

According to historical budget data provided by the MDA, its budget has declined 30 percent over the past 10 years. In 2000, MDA’s budget was $115 million; in 2010, it had fallen to $80 million.
“Over the last few years, MDA has had budget cuts in every program and division,” said Jennifer Holton, a spokeswoman for the MDA.

“In terms of program elimination: seed testing, fertilizer testing, dry bean grading, pet shop and horse riding stable inspections, dairy chemistry testing, agri-chemical bulk storage inspections, U.P. state fair administration, the Select Michigan program, elimination of general fund dollars for conservation districts, closure of our regional offices and elimination of premium payments to Michigan’s county fairs, are a few examples.”

She added in the past three years the MDA has lost 83 employees, representing a 15 percent reduction in the department’s workforce.
Since 2001, it has gone from having 628 employees to 450 in 2010, representing a 178-employee reduction, or 28 percent.

4/7/2010