From Gongwer Wednesday, August 26, 2009:

3 SUPPLEMENTAL BILLS MOVE

Even as all eyes in Lansing are on negotiations over the 2009-10 fiscal year budget, work to tighten up the current year 2008-09 budget continued Wednesday.

Three supplemental budget bills moved forward. The Senate, on a 33-2 vote, gave final passage to SB 334, which totals $451 million with most of the general fund spending for the Department of Community Health, including more than $315 million for increased Medicaid caseloads and conversion of the quality assurance assessment program revenue to a use tax.

Another $20 million (general fund) would pay for increased paroles within the Department of Corrections.

Sen. Ron Jelinek (R-Three Oaks), chair of the Senate Appropriations Committee, said the bill would ensure that medical providers receive payment for services rendered.

"It is critical that Senate Bill 334 be enacted this week," he said.

Without objection, the Senate Appropriations Committee reported SB 95, which recognizes the federal stimulus funding in Medicaid for the current fiscal year and frees up nearly $848.7 million in general funds just in the Department of Community Health.

The committee did cut some funding in child care development in the Department of Human Services so more discussion could be held on the intended programs.

But overall, the bill has $12.5 million in net spending, with $996 million in federal funds received and reductions of $863.6 million in general funds and $116.9 million in other funds.

And the House Appropriations Committee approved, on a largely party-line vote, legislation (HB 4311) that would add $10 million general fund to the Department of Corrections and swaps $170.5 million between higher education to the Department of Human Services.

The additional funding for Corrections would include $5 million for additional health care costs. Officials said costs under the former contract with Correctional Medical Services increased after the new contract was awarded to Prison Health Services, but those new costs were brought to the department's attention late in the budget cycle because of the submission process for those costs.

The other $5 million general fund offsets shortfalls in offender collections that cover parole and probation program costs. The bill also adds $4.8 million from prison store revenue to cover the operations of the stores rather than eliminating some positions.

Rep. Mike Lahti (D-Hancock) was the sole Democrat to oppose the measure, which also starts the process of consolidating some business functions in the Upper Peninsula. The plan would mean loss of some staff in the region on top of plans to close prisons and camps there.

Republicans either opposed or passed on the proposal, which was reported on a 16-7 vote.

The bill also moves $98 million in general fund and $72.5 million in Michigan Merit Award funding from higher education to Human Services, where the money is used for maintenance of effort to bring in federal welfare funds, which are then moved back to the higher education scholarship funds.

MERIT AWARD: There could be some cuts to the Michigan Merit Award and they could affect some current students, but they will not be half of the grants, or the whole fund as some have proposed, Governor Jennifer Granholm said at an unrelated press event.

"We are going to have a Michigan Promise scholarship next year," she said. "The question is, is it going to have to a take a slight hair cut?"

But she said those starting school this fall should have the money in hand. "The kids who received the Michigan Promise grant should be able to count on that," she said.

She also chided all those involved in budget negotiations for the speed of those talks. "The budget should have been done long ago," she said.

Pamela Ann Martell

Higher Education Consultant

King-Chavez-Parks (KCP) Initiative

Michigan Department of Energy, Labor & Economic Growth

201 N. Washington Square

Victor Office Center, 3rd Floor

Lansing, MI 48913

Direct Line: (517) 335-3009

Main Line: (517) 373-9700

Fax: (517) 373-2759

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