Original Story: detroitnews.com
Lansing – Lawmakers gave final approval Wednesday to a $54.5 billion state budget next year that dedicates $400 million in general revenue to road repairs and delivers an 11 percent cut to state spending on economic development.
The $38.7 billion omnibus budget bill for all areas of state government, except education, spends about $8.6 billion in general tax revenue, with the rest coming from federal or restricted sources. Among the programs funded was an expansion of the Healthy Kids Dental Plan to Kent, Oakland and Wayne counties so low-income children up to 12 throughout the state can get dental care. An education lawyer is following this story closely.
The 2016 fiscal year budget blueprint was approved on a 70-39 afternoon vote of the House, which also sent the Senate a $15.8 billion spending plan for K-12 schools, community colleges and Michigan’s 15 public universities. The Senate also approved the education package.
“The additional $278.9 million investment in the state’s priorities tops a budget that makes the most of every hard-earned taxpayer dollar,” said House Appropriations Committee Chairman Al Pscholka, R-Stevensville. “You’re going to see more construction crews out there. You’re going to see schools with access to healthy funding.” An education lawyer provides professional legal counsel and extensive experience in many aspects of education law.
The budget bills go to Gov. Rick Snyder for his consideration.
The Senate voted 22-16 on the general government budget bill as five Republican senators joined the 11 Democrats in voting no. The Republican “no” votes were Sens. Patrick Colbeck of Canton Township, Judy Emmons of Sheridan, Joe Hune of Hamburg Township, Phil Pavlov of St. Clair Township and Tory Rocca of Sterling Heights.
Upset with budget-busting business tax credits, lawmakers made targeted reductions to the state agency responsible for the subsidies. The budget plan reduces general fund spending on the Michigan Economic Development by $24.1 million — an 11 percent decrease — to $198.5 million in the fiscal year that begins Oct. 1.
Subsidies for film production were reduced from $38 million this year to $25 million in 2016 — with $19 million going to help the state retirement systems retire a bond debt obligation for a Pontiac film studio and $6 million left for incentives. Lawmakers also are trimming the MEDC’s business development fund by $16 million, leaving the agency with less money to lure companies and jobs to Michigan or expand operations.
The grant-based program replaced Michigan’s business tax credits, which Snyder and lawmakers began phasing out in 2011. A business tax consultant helps with tax management and accounting services.
Sen. Vincent Gregory, D-Southfield, said reductions in spending at the Department of Human and Health Services would lead to the elimination of 233 welfare case workers.
“With our citizens in need and our workers overburdened, we should be increasing staff, not the other way around,” Gregory said.
House Democratic opponents complained that the spending plan will shutter the W.J. Maxey Boys Training School at Whitmore Lake and inadequately address the state’s $1.2-billion road repair shortfall.
Rep. Jeff Irwin, D-Ann Arbor, said closing of the state’s Maxey center for juvenile offenders between ages 12 and 21 is a “huge mistake” that will send juveniles to alternative programs “that already have failed them.”
Showing posts with label State Budget. Show all posts
Showing posts with label State Budget. Show all posts
27 June 2010
Losing Federal Money Could Hurt Michigan Budget
Associated Press
LANSING, Mich. — Michigan's budget problems will become significantly worse and state programs will be put at risk if Congress doesn't revive a federal spending bill, Democratic Gov. Jennifer Granholm said Friday.
The legislation killed by a Republican filibuster on Thursday includes more than $500 million in federal Medicaid money that Granholm and state lawmakers were banking on for their spending plans for the fiscal year starting Oct. 1. The legislation also would have extended federal jobless benefits for unemployed workers. Thousands of laid-off Michigan workers will begin to lose benefits in July, Granholm said.
The governor said failing to revive the bill would have a "devastating" effect in Michigan and other states relying on help from the legislation. Granholm said she was "amazed" by what she called "obstructionism" of U.S. Senate Republicans who blocked passage of the plan.
"They're not dealing with consequences here on the ground in the states," Granholm said. "This means jobs to people, it means health care to our citizens and it means food on the table for those who are unemployed."
Granholm is among the governors who plan to lobby for Congress to revive the measure.
Medicaid covers roughly 1.8 million of Michigan's nearly 10 million residents. Granholm said one possible budget option would be further reducing reimbursement rates to doctors who treat Medicaid patients. But she worries that would prompt doctors to stop accepting Medicaid patients.
Michigan lawmakers already are debating how to eliminate a projected deficit of roughly $1.5 billion from next fiscal year's state budget. They may be forced to look at cuts in all aspects of the state budget if they have to trim another $500 million on top of that.
There's a projected surplus in the state's school aid fund, but some Democrats don't want to raid that money to fill holes in the general fund. Democrats have discussed selling off another portion of future tobacco settlement money for cash up front, but many Republicans oppose that idea.
Matt Marsden, a spokesman for Republican Senate Majority Leader Mike Bishop, said the nonpartisan Senate Fiscal Agency is being consulted to look at possible options if the money doesn't come through.
More than 400,000 unemployed Michigan workers are currently receiving either state or federally funded unemployment benefits. Michigan's unemployment insurance agency estimates that 87,000 people would exhaust their benefits by July 3 without an extension. That number could double by the end of July.
The legislation killed by a Republican filibuster on Thursday includes more than $500 million in federal Medicaid money that Granholm and state lawmakers were banking on for their spending plans for the fiscal year starting Oct. 1. The legislation also would have extended federal jobless benefits for unemployed workers. Thousands of laid-off Michigan workers will begin to lose benefits in July, Granholm said.
The governor said failing to revive the bill would have a "devastating" effect in Michigan and other states relying on help from the legislation. Granholm said she was "amazed" by what she called "obstructionism" of U.S. Senate Republicans who blocked passage of the plan.
"They're not dealing with consequences here on the ground in the states," Granholm said. "This means jobs to people, it means health care to our citizens and it means food on the table for those who are unemployed."
Granholm is among the governors who plan to lobby for Congress to revive the measure.
Medicaid covers roughly 1.8 million of Michigan's nearly 10 million residents. Granholm said one possible budget option would be further reducing reimbursement rates to doctors who treat Medicaid patients. But she worries that would prompt doctors to stop accepting Medicaid patients.
Michigan lawmakers already are debating how to eliminate a projected deficit of roughly $1.5 billion from next fiscal year's state budget. They may be forced to look at cuts in all aspects of the state budget if they have to trim another $500 million on top of that.
There's a projected surplus in the state's school aid fund, but some Democrats don't want to raid that money to fill holes in the general fund. Democrats have discussed selling off another portion of future tobacco settlement money for cash up front, but many Republicans oppose that idea.
Matt Marsden, a spokesman for Republican Senate Majority Leader Mike Bishop, said the nonpartisan Senate Fiscal Agency is being consulted to look at possible options if the money doesn't come through.
More than 400,000 unemployed Michigan workers are currently receiving either state or federally funded unemployment benefits. Michigan's unemployment insurance agency estimates that 87,000 people would exhaust their benefits by July 3 without an extension. That number could double by the end of July.
05 November 2009
Over $2M Cut From Macomb County Health Budget
from Detroit Free Press
From combating the HIN1 flu to protecting drinking water, dozens of health services in Macomb County will be compromised after commissioners today cut $2.1 million from the Health Department.
Beginning in January, the cuts will reduce or eliminate water sampling, immunization clinics, hazardous waste pickups, restaurant inspections and subsidized health care for seniors and lower-income residents, among other services.
Lines at health clinics will grow, and the county’s response to health emergencies, such as an H1N1 pandemic, will be slower and less efficient.
The cuts “are an unreasonable expectation to ask of us,” Health Department Director Thomas Kalkofen told commissioners. “It really puts us in an awkward and untenable position. We have lost the ability to provide services.”
Commissioners, who supported the cuts 22 to four, said the decision was tough but necessary to erase next year’s $15.7-million deficit.
The cuts represent 8% of the Health Department’s budget.
“In the future this is going to get worse, not better,” Commissioner Ed Bruley, D-Mt. Clemens, warned of the county’s growing budget problems.
The four defectors said cuts to public health services were too deep.
“I’m having a hard time with this cut,” Doherty, D-Warren, said. “I’m extremely concerned about public health issues.”
Beginning in January, the cuts will reduce or eliminate water sampling, immunization clinics, hazardous waste pickups, restaurant inspections and subsidized health care for seniors and lower-income residents, among other services.
Lines at health clinics will grow, and the county’s response to health emergencies, such as an H1N1 pandemic, will be slower and less efficient.
The cuts “are an unreasonable expectation to ask of us,” Health Department Director Thomas Kalkofen told commissioners. “It really puts us in an awkward and untenable position. We have lost the ability to provide services.”
Commissioners, who supported the cuts 22 to four, said the decision was tough but necessary to erase next year’s $15.7-million deficit.
The cuts represent 8% of the Health Department’s budget.
“In the future this is going to get worse, not better,” Commissioner Ed Bruley, D-Mt. Clemens, warned of the county’s growing budget problems.
The four defectors said cuts to public health services were too deep.
“I’m having a hard time with this cut,” Doherty, D-Warren, said. “I’m extremely concerned about public health issues.”
04 November 2009
20% Cuts In State Budget Possible For 2010
Business Week
LANSING, Mich.
Michigan's governor warned Tuesday of a possible 20 percent cut in state spending next year, a draconian step after billions in cuts since 2003 have already dented police and fire services, pushed schools toward insolvency and reduced oversight of prison inmates.
The request from Gov. Jennifer Granholm is a further blow to health care providers, state police, universities and others dependent on public money in a state where revenues, adjusted for inflation, are at about the same level as in 1964.
Double-digit cuts likely mean double-digit university tuition increases, for example.
"I'm certainly having to take a job to find extra income to offset some of these (scholarship) cuts," says Mitch Rivard, a 19-year-old Michigan State University junior from Bay City. "We're going to see a very big gap in terms of who is be able to attend college if these cuts continue."
The state filled a deficit in the budget year that started Oct. 1 by cutting nearly $1.9 billion from spending and relying on about $1 billion in federal stimulus money that won't be available next year. Most departments lost 10 percent from their budgets. So Granholm is laying out a worst-case scenario, asking departments to lay out proposed cuts twice as deep as what they are now absorbing.
Granholm's office says state budget director Bob Emerson is predicting next fiscal year's deficit could hit $1.4 billion -- with little remaining federal recovery money to cushion the blow.
While many states are having fiscal woes, few have struggled as mightily as Michigan. Less revenue is rolling in from income, sales and property taxes, while the highest-in-the-nation 15.3 percent jobless rate has spurred demand for food stamps, health care and unemployment checks.
Even California, which notoriously had to pay its bills with IOUs earlier this year, managed to raise taxes to help get its finances back on track. At least 20 states are fighting to find enough money to pay for the programs they agreed to earlier this year.
Michigan's revenue falloff of about 12 percent isn't as sharp as in Alaska, where a drop in oil prices was expected to lower state revenues in the current fiscal year by 45 percent, according to the National Conference of State Legislatures.
In Iowa, where Gov. Chet Culver just ordered an across-the-board 10 percent cut for departments getting general fund money, or in Louisiana and Wyoming, where revenues are falling by double-digit amounts, the pain is just as real.
But where other states have seen their revenues fall below expectations for the past year or two because of the latest recession, Michigan has never recovered from the spiral that began a decade ago. More than $10 billion in deficits have been resolved since 2003.
A 20 percent cut next year could put Michigan in territory most states won't have to explore.
"There are whole parts of departments that would have to be eliminated" with a 20 percent cut, says Mitch Bean, director of Michigan's nonpartisan House Fiscal Agency. "That's ... really significant."
School districts, which are losing $300 to $600 per student this year, could see their funding drop by $200 to $300 more per student next year -- an additional hit of $300 million to $400 million.
Tina Templin, superintendent of DeWitt Public Schools, just north of Lansing, says her district is already suffering after losing $869,000 -- nearly 4 percent of its budget -- halfway through its fiscal year. It is looking at cutting transportation, sports and enrichment programs.
"We can't make those cuts in fuel or teaching supplies and come up with that amount of money," Templin said. "The only way we can only do that is wages and jobs, and that's going to further depress the Michigan economy."
Granholm won't formally present her budget until February.
Balancing next year's budget "is a tall order when you take into consideration the state's revenue picture, the loss of the federal dollars ... and the growth in services that people rely on in tough times," says Liz Boyd, Granholm's spokeswoman. "We want a realistic plan for 2011."
The request from Gov. Jennifer Granholm is a further blow to health care providers, state police, universities and others dependent on public money in a state where revenues, adjusted for inflation, are at about the same level as in 1964.
Double-digit cuts likely mean double-digit university tuition increases, for example.
"I'm certainly having to take a job to find extra income to offset some of these (scholarship) cuts," says Mitch Rivard, a 19-year-old Michigan State University junior from Bay City. "We're going to see a very big gap in terms of who is be able to attend college if these cuts continue."
The state filled a deficit in the budget year that started Oct. 1 by cutting nearly $1.9 billion from spending and relying on about $1 billion in federal stimulus money that won't be available next year. Most departments lost 10 percent from their budgets. So Granholm is laying out a worst-case scenario, asking departments to lay out proposed cuts twice as deep as what they are now absorbing.
Granholm's office says state budget director Bob Emerson is predicting next fiscal year's deficit could hit $1.4 billion -- with little remaining federal recovery money to cushion the blow.
While many states are having fiscal woes, few have struggled as mightily as Michigan. Less revenue is rolling in from income, sales and property taxes, while the highest-in-the-nation 15.3 percent jobless rate has spurred demand for food stamps, health care and unemployment checks.
Even California, which notoriously had to pay its bills with IOUs earlier this year, managed to raise taxes to help get its finances back on track. At least 20 states are fighting to find enough money to pay for the programs they agreed to earlier this year.
Michigan's revenue falloff of about 12 percent isn't as sharp as in Alaska, where a drop in oil prices was expected to lower state revenues in the current fiscal year by 45 percent, according to the National Conference of State Legislatures.
In Iowa, where Gov. Chet Culver just ordered an across-the-board 10 percent cut for departments getting general fund money, or in Louisiana and Wyoming, where revenues are falling by double-digit amounts, the pain is just as real.
But where other states have seen their revenues fall below expectations for the past year or two because of the latest recession, Michigan has never recovered from the spiral that began a decade ago. More than $10 billion in deficits have been resolved since 2003.
A 20 percent cut next year could put Michigan in territory most states won't have to explore.
"There are whole parts of departments that would have to be eliminated" with a 20 percent cut, says Mitch Bean, director of Michigan's nonpartisan House Fiscal Agency. "That's ... really significant."
School districts, which are losing $300 to $600 per student this year, could see their funding drop by $200 to $300 more per student next year -- an additional hit of $300 million to $400 million.
Tina Templin, superintendent of DeWitt Public Schools, just north of Lansing, says her district is already suffering after losing $869,000 -- nearly 4 percent of its budget -- halfway through its fiscal year. It is looking at cutting transportation, sports and enrichment programs.
"We can't make those cuts in fuel or teaching supplies and come up with that amount of money," Templin said. "The only way we can only do that is wages and jobs, and that's going to further depress the Michigan economy."
Granholm won't formally present her budget until February.
Balancing next year's budget "is a tall order when you take into consideration the state's revenue picture, the loss of the federal dollars ... and the growth in services that people rely on in tough times," says Liz Boyd, Granholm's spokeswoman. "We want a realistic plan for 2011."
26 October 2009
State Cuts Program For Disabled Seniors
From Interlochen Public Radio
Older people with mental illnesses and disabilities no longer have a place to socialize together in Traverse City, thanks to state budget cuts. Friday was the last day of the Senior Support Program at Northern Lakes Community Mental Health, ending a 30-year tradition.
During the program's last days, 62-year-old William Combs talked about what he would miss.
"It gives me something to do two days out of the week," he said. "And every other Monday I have art class and we do art,drawing and stuff. I do my drawings with pencils and pastels and maybe sometimes ink pens. And I just don't want to see everything end abruptly. That would be hard."
Combs lives in Kingsley, at an adult foster care home. Since he can't drive, he spends a lot of time on his own. He often likes to walk, sometimes miles in a day. But a couple days a week he would hop the bus into Traverse City, and the senior program gave him a place to meet friends.
"It'll be hard on a lot of people, and me too," he said. "I've been so used to coming to it and I don't want it to go. There ain't too much else going on."
But as of Friday, the Senior Program - not supported by Michigan Priority medicare - is no more.
Typically more than 20 people would show up to spend some time with their peers.
"A lot of them they have no place else to go for socialization and connecting with others, so that's why we had this program," says Marybeth Kyro. She was the lead worker for the Northern Lakes' Senior Support.
Kyro is being reassigned within the community mental health agency.
She says activities in the Senior Program were fun, but they also had a larger purpose. They were designed to help with daily living skills, and they focused on specific issues that older adults often face such as mobility, and keeping the mind sharp.
"We were getting some funding from the state to do older adult services," she says. "Now we're getting nothing. So now we had to make some really tough decisions, and this was part of it, cutting this program. So it's extremely sad, we're very, very sad."
The state ended funding for senior services back in July, cutting the Northern Lake's budget mid-year by $118,000. The community mental health agency's chief executive officer, Greg Paffhouse, says he shifted money around to keep the day program afloat as long as he could. But, already into Fiscal Year 2010, Paffhouse has no idea what his budget will be for this year. Looming cuts could be as high as 12, or even 20, percent. And he can't keep taking the risk.
Paffhouse does say he hopes the hard decision to shutter the senior program will actually mean those who were once in the program will be less segregated from the rest of the community. He hopes his staff and other area caregivers will help disabled seniors join in on more activities open to all seniors and all people.
"At the same time, we recognize there are friendships within this group," he says. "Some of these folks have attended the programs a long time together and we're still trying to sort out how we might be able to retain at least some periodic social activity to allow persons to maintain those relationships."
Programs for seniors with mental illness started 30 years ago, as the Regional Psychiatric Hospital in Traverse City closed. Funding has dwindled over the years. This was once a robust five-day program, with more than 50 participants, designed for elderly former hospital patients, all of whom have all since passed away.
During the program's last days, 62-year-old William Combs talked about what he would miss.
"It gives me something to do two days out of the week," he said. "And every other Monday I have art class and we do art,drawing and stuff. I do my drawings with pencils and pastels and maybe sometimes ink pens. And I just don't want to see everything end abruptly. That would be hard."
Combs lives in Kingsley, at an adult foster care home. Since he can't drive, he spends a lot of time on his own. He often likes to walk, sometimes miles in a day. But a couple days a week he would hop the bus into Traverse City, and the senior program gave him a place to meet friends.
"It'll be hard on a lot of people, and me too," he said. "I've been so used to coming to it and I don't want it to go. There ain't too much else going on."
But as of Friday, the Senior Program - not supported by Michigan Priority medicare - is no more.
Typically more than 20 people would show up to spend some time with their peers.
"A lot of them they have no place else to go for socialization and connecting with others, so that's why we had this program," says Marybeth Kyro. She was the lead worker for the Northern Lakes' Senior Support.
Kyro is being reassigned within the community mental health agency.
She says activities in the Senior Program were fun, but they also had a larger purpose. They were designed to help with daily living skills, and they focused on specific issues that older adults often face such as mobility, and keeping the mind sharp.
"We were getting some funding from the state to do older adult services," she says. "Now we're getting nothing. So now we had to make some really tough decisions, and this was part of it, cutting this program. So it's extremely sad, we're very, very sad."
The state ended funding for senior services back in July, cutting the Northern Lake's budget mid-year by $118,000. The community mental health agency's chief executive officer, Greg Paffhouse, says he shifted money around to keep the day program afloat as long as he could. But, already into Fiscal Year 2010, Paffhouse has no idea what his budget will be for this year. Looming cuts could be as high as 12, or even 20, percent. And he can't keep taking the risk.
Paffhouse does say he hopes the hard decision to shutter the senior program will actually mean those who were once in the program will be less segregated from the rest of the community. He hopes his staff and other area caregivers will help disabled seniors join in on more activities open to all seniors and all people.
"At the same time, we recognize there are friendships within this group," he says. "Some of these folks have attended the programs a long time together and we're still trying to sort out how we might be able to retain at least some periodic social activity to allow persons to maintain those relationships."
Programs for seniors with mental illness started 30 years ago, as the Regional Psychiatric Hospital in Traverse City closed. Funding has dwindled over the years. This was once a robust five-day program, with more than 50 participants, designed for elderly former hospital patients, all of whom have all since passed away.
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