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Governor Proposes 2012-13 State Budget

Governor Rick Snyder has announced his budget recommendations for the 2012-13 fiscal year. Similar to last year, it is expected that the Michigan Legislature will proceed quickly with the appropriations process. The state budget for the upcoming fiscal year will likely be concluded by the end of June.

As part of releasing the 2012-13 budget recommendations, the Governor noted that "Successfully reinventing Michigan demands that we make thoughtful, strategic and long-term investments in our state that deliver real results for real people. This budget is the platform for creating an environment conducive to job growth, protecting our most vulnerable residents and ensuring that our children have bright futures with boundless opportunities."

The proposed 2012-13 state budget provides a total of $48.2 billion in state and federal revenue sources. More than 75% of this budget is devoted to education, health and human services.

Department of Community Health Budget

The Governor's proposed budget for the Department of Community Health (DCH) recommends total funding of $15 billion, of which $2.8 billion is General Fund. Highlights of the executive budget recommendations include the following statements from the Governor's overview of DCH.

  • To reduce the waiting list for the MIChoice Home and Community Based Waiver Program, $11 million ($3.7 million General Fund) is added to the department's budget. This increased support allows the elderly to receive needed services while remaining in their own homes or communities.
  • Transitions from nursing homes to the MIChoice Home and Community Based Waiver are supported with $3.1 million ($1 million General Fund). These transitions allow the elderly to return home with the provision of community care.
  • Mental health services are funded at over $3 billion consisting of $2.9 billion ($1.2 billion General Fund) to provide community mental health services, and $278.7 million ($64 million General Fund) to fund state-operated psychiatric hospitals and centers.
  • Early diagnosis and treatment of autism provides the best outcomes for autistic children and their families. Therefore, the Governor recommends adding $34.1 million ($10.1 million General Fund) to expand Medicaid and MIChild coverage to include the treatment of Autism Spectrum Disorders for children under age 6. The treatment for autism, Applied Behavior Analysis, is considered most effective for early diagnosis and treatment.
  • Department initiatives to reduce Medicaid fraud, increase program efficiencies and improve Medicaid service delivery achieve $13.2 million in general fund savings.

As in prior years, MALA will be actively involved in the legislative appropriations process. Overall, the Governor's budget recommendations for the 2012-13 DCH budget are favorable. We anticipate that the Michigan Legislature will support most of these recommendations.

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