Name
Michigan Catholic Conference
Phone
(800) 395-5565
Fax
(517) 372-3940
Address
510 S. Capitol Ave.
Lansing, MI 48933

September 18, 2009

In this week’s Lansing Update:

  1. Multiple Budget Scenarios Arise After House Speaker, Senate Majority Leader Strike Target Agreement

Multiple Budget Scenarios Arise After House Speaker, Senate Majority Leader Strike Target Agreement

This week Speaker of the House Andy Dillon (D-Redford Township) and Senate Majority Leader Mike Bishop (R-Rochester) announced a targeting agreement that would cut approximately $1.3 billion out of the 2009–10 fiscal year state budget. Michigan is facing a $2.7 billion deficit, which must be balanced no later than September 31, otherwise the state will be forced to shut down temporarily until revenues are agreed upon. Federal stimulus funds are expected to be used to cover the remaining balance.

The extent of the budget cuts have drawn strong opposition [Link no longer available —Ed.] from advocacy groups such as the MCC, House and Senate Democrats and the administration since a large number of cuts are expected to come from programs and departments that benefit the state’s most needy populations. The agreement announced this week between the Speaker and Senate majority leader immediately created a host of scenarios that could take place in the days to come.

One scenario includes House Democrats opposing the proposed cuts, which would mean the budget process must start all over. A similar scenario would occur if House Democrats happen to agree to the cuts but the governor vetoes the legislation. Should either scenario play out [Link no longer available —Ed.], the Senate majority announced this week it would introduce and address next week a continuation budget [Link no longer available —Ed.] that would allow current spending levels to continue through October while budget solutions are pursued. Rumors have also circulated about the introduction of supplemental legislation to raise revenues in order to offset proposed cuts; however, Senate Republicans have indicated strong opposition to any tax increases or revenue enhancements. Senate Democrats have proposed several revenue-enhancing measures to prevent proposed cuts.

The targeted spending cuts agreed upon by the Speaker and Senate majority leader would affect not only human service programs, but also revenue sharing, K–12 education, mental health programs, state tuition grants, and several other programs upon which thousands of citizens depend. A list of the $1.2 billion in budget cuts approved by the Senate earlier this year follows:

Education:

  • Cut K–12 school funding by $110 per pupil, dropping the lowest foundation grant to $7,206 per student: $174 million. The state would need to get a federal waiver to make the cuts; without the OK, it would risk losing millions of dollars in federal recovery money.
  • Eliminate the Michigan Promise Grant college scholarship: $140 million.
  • Eliminate grants to K–12 schools with declining enrollments: $20 million.
  • Eliminate adolescent health centers in schools: $5 million.
  • Essentially eliminate the school readiness program: $104 million.
  • Reduce adult education funding: $2.4 million.
  • Essentially eliminate the Great Parents Great Start ISD programs: $5 million.
  • Eliminate money to set up small high schools: $8 million.
  • Reduce vocational education funding by 10 percent: $2 million.
  • Eliminate math remediation grants: $1 million.
  • Eliminate Math/Science Centers and Health/Science Middle Colleges: $6 million.
  • Eliminate state funding for the Michigan Youth ChalleNGe Academy, a voluntary quasi-military residential program run by the Michigan National Guard for high school dropouts or near-dropouts: $1 million.
  • Reduce funding for some college financial aid programs and eliminate others: $48 million.
  • Stop reimbursing community colleges for property tax revenue lost because of renaissance zones: $4 million.

Low-income assistance:

  • Make a $10 per person per month cut in the Family Independence Program, dropping the maximum grant for a family of three receiving welfare to $462 per month: $31 million.
  • Cut the children’s clothing allowance for low-income parents from $88 per child to $43 per child: $6 million.
  • Make a $14 per month cut to Supplemental Security Income, which, in part, provides assistance to the elderly and people with disabilities who live independently, as the governor suggested: $30 million.
  • Make a series of cuts in the child day care program that will cut hours and provider rates: $80 million.

Health care:

  • Reduce non-Medicaid mental health services $54 million more than the governor recommended: $62 million.
  • Reduce the amount paid to health care providers who treat Medicaid patients by 8 percent: $355 million.
  • Move more people from nursing homes to community-based settings: $49 million.
  • Eliminate the mental health initiative for older residents and respite services for caregivers: $3 million.
  • Cut substance abuse services, as the governor recommended, by 5 percent: $1 million.
  • Cut by more than half the amount set aside to repay loans for health care providers who establish practices in medically underserved areas, as the governor recommended: $1 million.
  • Reduce Healthy Michigan programs that deal with a wide variety of health care initiatives, such as infant mortality, minority health, poison control centers, senior nutrition services and diseases ranging from heart disease to arthritis: $20 million.

Other areas:

  • Cut revenue sharing payments to local governments, which many use to pay for police and firefighters: $90 million.
  • Add fewer foster care workers and management and support staff at the Department of Human Services than the governor recommended: $26 million.
  • Reduce funding for Employment and Training support programs by 43.5 percent: $13 million.
  • Close Adrian Training School for young women as governor proposed; also close the Nokomis challenge Center and State Community Juvenile Justice Centers: $7 million.
  • Reduce the number of Department of Human Services field staff by 179: $16 million.
  • Reduce the State Disability Assistance grant by $5 a month: $1 million.
  • Reduce Strong Families/Safe Children grants: $4 million.
  • Reduce the Families First program that helps train new parents: $1 million.

According to Gongwer News Service, targeting spending for each state department, based on the agreement between the Speaker and Majority Leader, is as follows:

General Fund Spending
Dept FY 2008–09 Gov’s revised Senate House TARGET
Ag 28,546,100 33,987,100 30,588,400 30,477,000 30,588,400
Atty Gen 29,918,200 31,983,300 28,785,000 28,818,300 28,785,000
Civil Rts 11,860,900 12,320,100 11,088,100 11,097,100 11,088,100
C’llege 299,360,500 299,360,500 295,880,500 299,360,500 299,360,500
DCH 3,322,420,000 2,433,548,200 2,267,988,400 2,689,841,200 2,233,666,100
DEQ/ DNR 48,471,600 51,573,600* 36,488,500# 38,304,700# 43,674,400
DOC 1,957,641,400 1,908,399,600 1,870,399,600 1,898,399,600 1,830,399,600
Ed 7,074,600 24,605,700* 6,802,500 26,749,000 19,429,600
D’LEG 59,635,300 75,944,400 65,430,700 45,756,800 52,088,800
Exec 5,038,100 5,317,300 4,823,700 4,824,300 4,823,700
Hghr Ed 1,645,605,200 1,545,605,200 1,507,705,300 1,600,077,200 1,507,705,200
DHS 1,114,034,400 1,001,630,700 793,032,100 & 832,669,100
Jud 156,472,000 158,785,900 154,251,900 154,184,400 153,132,800
Leg Audit 12,047,800 12,486,800 11,238,100 11,571,600 11,238,100
Legis 109,471,400 112,994,200 103,787,500 104,699,700 104,764,900
DMB 288,901,900 315,264,500 307,248,000 307,656,300 295,974,300
DMVA 37,472,700 39,487,200 39,087,200 35,910,100 36,425,500
Sch Aid 13,371,906,800 12,963,600,000! 12,743,964,400 13,132,308,775 12,750,900,000
Sch Aid GF 78,000,000 40,800,000 31,800,100 39,625,000 31,800,000
State 24,795,800 28,214,200 17,892,800 25,600,400 23,255,400
MSP 269,752,200 278,474,500 267,259,200 267,259,200 267,259,200
Treas 69,810,700 68,733,700 59,800,100 66,663,000 59,800,100
Total 9,710,033,100 8,549,566,200 8,032,432,300 N/A 7,934,227,500
Name
Michigan Catholic Conference
Phone
(800) 395-5565
Fax
(517) 372-3940
Email
Address
510 South Capitol Avenue
Lansing, Michigan 48933
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