Michigan
Senate Subcommittee Makes Huge General Fund Increase in DCH
Budget
Gongwer News Service, March 18, 2004
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Making major
budgetary changes in the Department of Community Health budget,
SB 1062, the Senate Appropriations Community Health Subcommittee
upped the general fund portion of Governor Jennifer Granholm's
proposal by nearly $500 million.
The budget, reported to the full committee on a 4-2 party line
vote, adds the huge increase by not assuming any position on the
governor's proposed tobacco tax increase or the proposed
decoupling of the state estate tax from the federal tax. That
then assumes that up to $513.4 million will not be placed in the
Medicaid Benefits Trust Fund to supplant the general fund.
It was just one of several major budgetary decisions, which
included restoring all Medicaid adult dental, chiropractic,
podiatric and hearing aid services by dumping Ms. Granholm's
proposed increases in the Healthy Michigan Fund.
The budget also limits contracts on Medicaid health maintenance
organizations to just one year and requires the state to study
alternatives to the Medicaid HMOs, which could include returning
to fee for services or creating a primary care case management
arrangement.
And the budget requires the state contract with an outside firm,
for $1 million, to "find Medicaid overpayments", which the
subcommittee assumed would total some $5 million.
The budget, the second largest after the state's school aid
budget, totals $9.74 billion, down some $60 million from Ms.
Granholm's proposal. The general fund portion, at $2.974
billion, is $498 million more than the governor's proposal and
the local revenue section of the budget was slashed $394 million
from Ms. Granholm's proposal to $456.1 million.
Sen. Tom George (R-Portage), the only physician in the
Legislature, said restoration of the supplemental Medicaid
services could save the state emergency room costs since
research indicates good dental care is more critical than
initially thought in maintaining good overall health, and
podiatry services could be critical to diabetics who must take
particular care of their feet.
The budget also creates a new system for making payments to
so-called "disproportionate share hospitals" that see large
numbers of Medicaid patients, typically urban hospitals. The
budget creates two funding pools, the first totaling $40 million
that would pay eligible hospitals eight-ninths of what they were
paid in the 2003-04 budget, and the second pool of $5 million
would go to hospitals that received less than $900,000 in the
disproportionate payments in the 2002-03 fiscal year.
And like most other budgets approved by Senate subcommittees so
far, the budget cuts travel for the department by banning any
expenditures for travel outside the state and requiring the
department to spend half on travel in 2004-05 what it did in
2003-04.
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FIA Budget Prepped For Movement
MIRS, March 17, 2004
The House Appropriations Department of Human Services Subcommittee
today reviewed a draft $4.3 billion budget that is expected to
be reported to the full Appropriations Committee on Thursday.
As presented, the House version comes in at $4.306 billion, down
from Gov. Jennifer GRANHOLM's recommended funding level of
$4.336 billion. Of that, $1.35 billion is General Fund under the
House plan.
The plan provides for $28 million less in federal funds and $2.6
million less General Fund funds.
Among program caseload spending increases, the Fiscal Year 2005
budget calls for:
- Child Day Care $36.1 million
- Family Independence Program $21.7 million
- Adoption Subsidy $18.4 million
- Foster Care $11.5 million
- State Disability Assistance $2.9 million
The House version also reduced Child Day Care caseload spending
increases by $17.8 million and the Adoption Subsidy increase by
$12.3 million to $7.1 million.
Other key changes to the governor's recommendation include:
- Clothing allowance, the budget includes $1.2 million in
Temporary Assistance to Needy Families (TANF) dollars to
increase the clothing allowance to $50 per child, but does not
expand the program to include children from 0-3 years of age as
recommended by the Administration.
- House included $6 million ($2.4 million general fund) to
provide for a 4 percent rate increase for both foster care and
adoption child placing agencies and residential facilities and
adds $1.0 million $500,000 general fund, for specialized foster
care.
- Included $5 million in TANF funding for a state-wide Before
and After School Program.
- Added $200,000 to restore the Individual Development Account
Program, $100,000 to begin a Fatherhood Initiative Program, and
$100,000 to begin a Marriage Initiative Program, using TANF as
the funding source.
- A $10 million savings anticipated in Day Care Services due to
increased fraud detection and improved processes with three
Inspector General Agents added specifically for fraud detection.
- A combined $434,500 cut in four Contractual Service, Supplies
and Materials (CSSM) line items.
- Language to allow nationally accredited child welfare services
agencies to conduct their own staff training based on the
Department's policies and procedures for an anticipated savings
of $432,300.
- The addition of one FTE to assist with cases under the
Michigan Children's Institute.
The cuts to the CSSM lines and the training reduction are two
items that the Department is concerned with and working on. Rep.
Jerry KOOIMAN (R-Grand Rapids) said the bill was expected to be
finished today and that the panel will consider amendments
Thursday during a noon hearing.
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FIA Budget Moves To Full House Approps
MIRS, March 18, 2004
After unanimously adopting 10 amendments, the House
Appropriations Department of Human Services, without discussion or
debate unanimously approved a $4.3 billion budget that is $38
million below Gov. Jennifer GRANHOLM's recommendation.
Included in the amendments were replacing $2.3 million of
General Fund money with TANF funds in the Day Care Services
section of the budget recognizing a reduction in need for
federal matching funds.
There was also an adjustment in the Day Care budget to reflect
$20 million in savings from fraud detection and process
improvements and allocating the savings to TANF.
Funding for an additional Inspector General Agent for Day Care
fraud detection was put into the budget, as was an additional
$650,000 in TANF for Community Action Agencies. Finally, the
committee appropriated $78,500 of TANF money for a school-based
crisis intervention demonstration project in Pontiac.
For details of major changes in the House version
of the FIA budget see the Wednesday, March 17 edition of MIRS.
Although Rep. Jack HOOGENDYK (R-Portage) voted to "move the
process along," he was critical of the budget.
Citing what he said was a $32 million increase in the General
Fund portion of the budget over the current year, he told his
colleagues, "As far as I'm concerned we're blowing a hole in the
budget because we don't have the money."
Committee Chair Jerry KOOIMAN (R-Grand Rapids) called the budget
"fiscally prudent" and one that addresses fraud problems.
Appearing to take issue with Hoogendyk's comments, Kooiman said
there is a $5 million reduction in the General Fund portion of
the budget and that $23 million of the money Hoogendyk referred
to as an increase "is a transfer into the FIA budget of existing
programs from another agency."
Noting that some things might have been written differently,
Minority Vice Chair Chris KOLB (D-Ann Arbor) said the budget has
lots of good things in it.
"There are lots of needs in this state and this budget begins to
address those needs by helping the most needy in our state,"
Kolb said.
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Kuipers: Scrap MEAP In High Schools
MIRS, March 17, 2004
The controversial MEAP exam may be headed for the scrap heap
with the introduction of legislation next week to replace it
with a new test.
Sen. Wayne Kuipers (R-Holland), chair of the Senate Education
Committee, confirmed today he will advance a five-bill,
bi-partisan package to do away with the high school portion of
the Michigan Education Assessment Program (MEAP).
"I think if I had to vote myself right now, I would probably
lean at the high school level, yes -- let's explore a different
option. MEAP has had problems," Kuipers said.
Segments of the state's education community want to replace MEAP
with the ACT, but the Kuipers' proposal does not name a specific
replacement, rather leaving the door open for other national
testing companies to make a pitch, as well.
The Michigan Education Alliance (MEA) recently submitted a
report to Kuipers on the advantages of making the switch. Jim
Ballard of the Michigan Association of Secondary School
Principals originally argued the move would save money, but now
he and Kuipers concede it may be a wash for the state.
The Department of Education believes it would cost significantly
more.
Nonetheless, Kuipers argues the idea should still be pursued
because it will save money for parents who are now paying for
the ACT exam as their children prepare for college.
Kuipers told a meeting of the Detroit Federation of Teachers (DFT)
on Tuesday that the ACT would get the test results back into
teacher's hands within three to five weeks not the six to eight
months it takes to score MEAP.
The DFT teachers unanimously applauded the proposal shift, but
the results at another education conference on Wednesday were
different.
About 400 school board members and school superintendents
meeting in Lansing were asked to applaud if they wanted to get
rid of MEAP. About half voted yes the other half no.
"I was surprised," reflects Kuipers who heard the results. But
he reports the public will have a chance to check in on the
issue as a series of hearings is held.
"We believe that the Legislature here in Michigan will weigh in
on the issue. We're trying to do this in a bi-partisan fashion.
At the end of the day we'll see if there is support for it and
whether the governor will sign it."
Gov. Jennifer Granholm said two weeks ago she was "listening" to
the debate and had not made a final decision. The State Board of
Education tells the governor to leave the test alone.
Dr. Herb Moyer was in the audience at the Wednesday conference
and told MIRS afterwards that the MEAP "has gotten some bad
press, but I think all in all, we should maintain it with some
tweaking."
(Contributed by Senior Capital Correspondent Tim SKUBICK).
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