Dear Colleagues:
 
The DCH 2010/11 Budget Bill (SB-1152) passed the Full House Appropriations Committee this afternoon and will be going to the House Floor tomorrow.  I expect the Bill to run the House floor with any Republican amendments being defeated, just as they were on the Full Appropriations Committee this afternoon.  The Bill contains some additional changes which will allow for differences which will send the Bill to Conference, as I am sure the Senate will not accept the Bill as amended in the House.  Conference Committees will start to meet on or about June 8,9,10 with concurrence and passage by June 24th.  The Governor should have most of the Budgets for Signature by June 26th.
 
I will send you an updated summary of the totality of the Budget Bill tomorrow but the House version is about  $147 million higher than the Senate version yet still $600 million under the governor’s budget.  Remember though, the Governor’s budget contained $750 million in physicians’ QAAP (tax), which never passed and thus would appear to be “funny money”.
The House version contains $100,000 for the “Island medical clinics” (B
eaver, Drummond and Mackinac) as well as a 3% raise for Union employees working for the State. But very key was the addition of $53 million to raise the General Fund moneys above what the Senate cut.  Public Health funding was also increased for Lab services, epidemiology and TB programs restoring the Houghton Lab.  The House provided $5 million Gross for the 2nd Disproportionate Share Hospital Pool to be restored.(which the Governor vetoed last year.  The Senate raised it to $10 million this Spring!  The House also did not concur with the Senate reduction in physician payments of 4%, and thus restored those dollars in Medicaid payments.  The House retained the ADULT Dental Benefit Services which the Governor eliminated and the Senate restored.  The House did not go along with the SEnate in transferring the MI-Child program to the Medicaid HMOs.  Major request by the House was for “DCH to take another look at determining PIHP allocations for Mental Health Services by removing geographic factors during the NEXT Bidding process!”  Such verbage indeed bears discussion as this could cause serious deficits outside of South East Michigan Area, if taken literally, yet it was made clear in the Hearings that Detroit Wayne is near the breaking point in adequate service provision according to their Leadership.
  
The Beat Goes On!

Peace,
Paul

 

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