Updates About Appropriations

The Michigan State House and Senate approproations subcommittees have issued their respective budget recommendations for the upcoming fiscal year beginning on October 1.

The Senate’s Department of Health and Human Services (DHHS) budget closely aligns with the governor’s proposal in overall funding levels but includes some notable differences. Notable changes include adjustments to funding for the Temporary Assistance for Needy Families (TANF) program, Medicaid reimbursement rates, juvenile justice programs, and various one-time funding items and new programs. Additionally, the Senate introduced boilerplate language aimed at safeguarding the privacy of individuals seeking abortion services in Michigan from out-of-state investigations. The Senate’s proposed budget stands at $37.71 billion (with $6.68 billion allocated from the General Fund), coming in $110 million higher than the Governor’s proposed $37.6 billion budget for DHHS.

On the other hand, the House’s DHHS budget introduces its own modifications to the Governor’s proposal. Notably, the House subcommittee opted to allocate $53.4 million from opioid settlement funds toward opioid recovery and addiction care services. The House also proposed various adjustments to Medicaid reimbursement rates, foster care administration rates, and funding for behavioral health initiatives. Additionally, the House prioritized several one-time projects, including investments in public health initiatives, behavioral health programs, and community violence prevention. The House’s proposed budget amounts to $35.9 billion (with $6.6 billion allocated from the General Fund). Their total budget for DHHS is $1.81 billion less than the Governor’s DHHS budget proposal.

Overall, both the Senate and House Budget Recommendations exhibit nuanced differences from the governor’s proposal, reflecting varying priorities and approaches in addressing key areas such as healthcare, social services, and public health initiatives. While the Senate budget came in slightly higher than the executive budget allocation for DHHS, the House proposal is significantly lower. Updated revenues for Fiscal Year 2025 will be presented on May 17 at the next Consensus Revenue Estimating Conference.

On April 26, Governor Whitmer led an initiative alongside nine other governors in sending a letter to U.S. congressional leadership expressing their opposition to any efforts to cut programs families rely on as budget negotiations continue in Washington D.C.

Any cuts to these programs would affect millions of Americans and Michigan residents as families rely on programs such as the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) to feed their children and keep a roof over their head.

The federal budget is currently being negotiated and certain proposals include gutting programs that ensure access to quality health care, childcare, housing, food, and employment. The letter to congressional leadership can be found here.

Following testimony in the House Appropriations Subcommittee on Corrections, it was revealed that Michigan’s prisoner population has been steadily declining, but the mental and physical health caseload is on the rise.

About a third of Michigan’s prisoner population is currently on active mental health caseload. Approximately 446 patients are awaiting Hepatitis C treatment, while 69 patients are currently receiving treatment. The Michigan Department of Corrections (MDOC) adds about 11 new patients each month, spending an average of $15,122 per patient on Hepatitis C treatment. These costs are a significant portion of the MDOC budget, totaling over $300 million per year.

MDOC is also facing challenges regarding staffing, especially with corrections officers and healthcare staff. There are about 866 total corrections officer vacancies which is equivalent to about 15.3% of total corrections officers. MDOC is prioritizing staffing recruitment and retention efforts as well as combatting the increase in mental and physical health caseload.