Archive for the ‘Updates’ Category
November 18th, 2010 | 
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Dear Colleagues:
Targets have been released and the Budgets are moving! The Governor and her Department of Management & Budget Director and Treasurer Robert Kleine, met with House and Senate Leadership; and Budget Targets were presented, agreed upon, and officially released!
Meetings are being quickly scheduled for Conference Committees to gather and work out the details on Departmental Budgets. I am told that a preliminary meeting between Senate DCH Budget Chairman Kahn and House DCH Budget Chairman McDowell is set for next Tuesday, September 14th. The Full Conference Committee meeting will follow Wednesday, and the DCH Budget will pass both Houses by September 23rd.
At first blush, it appears that your calls and letters have not gone unheeded. The Target Agreement reflects an increase of General Fund Moneys of about $122 Million dollars over the 2009/2010 DCH Budget! Thus instead of $2.024 Billion in General Fund dollars as proposed by the House for 2011, and compared to this years’ (2009/2010) total figure of $2.309 Billion, the Target Agreement reflects a General Fund total of $2.431 Billion for 2010/2011. Thus giving us an additional $122 Million in General Fund dollars for the DCH Budget in the coming Fiscal Year! Thankfully a slight improvement, which was hoped for but not anticipated, for 2011!
Obviously this will be good news on top of the fact that proposed Departmental cuts in Administration have been reduced from the Senate version of 20%, down to a more manageable 3%. All this without raising taxes!
There are some fund shifts proposed in the package, such as moving the extra tobacco settlement moneys from Public Health to Medicaid ($102 Million), and the $208 Million surplus in the School Aid Fund moved to cover a deficit in the Community College Budget.
Some of the anticipated savings/revenue for 2010/2011 is based on dollars derived from State employees retiring early. Legislation is being developed to offer a 1.6% formula to encourage some of the State’s 12,000 eligibles to retire early. The 2010/2011 Budget anticipates savings of $60 Million based on State employees retiring. I believe we will see no more than $25 Million in savings. State employees will begin a phase-in of a 3% contribution toward their own health-care costs over the next five years, if they do not retire under the target agreement for 2010/2011. The targets provide for a 1.6% sweetener over the normal 1.5% formula. I anticipate that close to 3,000 State employees will retire early, although the Governor predicts 6,000 retirees, and up to $60 Million in savings.
If the State employees retirement plan does not pass, the Target Agreement calls for a cut in local revenue sharing dollars, which is designed to encourage union support for the early retirement proposal.
There will be a “tax amnesty” program offered to allow people to be held harmless while catching up on back taxes, which should enhance State revenues in 2011. The total amount to be realized, due to tax amnesty, is not clear. However, we will see a freeze on State revenue sharing payments to cities, villages, and townships. And certain liquor “reforms” will raise an anticipated $9.1 Million in increased revenues.
The DCH increase in General Fund dollars is also intended to reflect the May 2010 consensus caseload estimates, which are significantly higher than the 2009/2010 original budget projections. Thus a need to cover the Medicaid caseload increases, due to higher unemployment and additional job/business reductions in Michigan.
This memo is intended to reflect the latest developments pertaining to the DCH 2010/2011 Budget Bill, as I see them, and the figures contained herein could change upon final Bill passage, subject to line-item vetoes by the Governor!
I will keep you informed of future developments. If any questions, kindly call 517-319-2580.
Sincerely,
Paul Tarr
Dear Colleagues:
At this moment, Senate Bill 1152 awaits the scheduling of a Conference Committee meeting between members of the Michigan House and Senate for the purpose of debating and deciding differences between what was proposed by the Senate, and that which was finally recommended in the House version.
You have already received the list of the members of the House and Senate Conferees. I anticipated that they would call a meeting this week to inititate their discussions on the differences. However, the Governor’s office (DMB, Dept. of Treasury) has not yet finalized Budget Targets for 2010/2011. Thus, our Legislators involved with the DCH Budget, have no target as to projected revenues. Therefore they do not know how much to cut from the DCH Budget and whether or not the deficit will be greater or less than what was anticipated in April/May 2010.
It would appear with this being the case, that Budgets will not be resolved in totality for this State, and more specifically for this Department, by July 1, 2010.
I am told by very reliable sources, that Public School Budgets were agreed upon between the House and Senate, with approval of the Governor, but the MEA came down hard on the agreement and created enough disharmony to hold up the Bills. Such action holding up Education Bills can complicate the Budget for 2010/2011 this summer. It appears at this time that we will not have a DCH Budget, being sent to the Governor for signature, prior to July 4, 2010. It could easily be September before the Budgets get worked out, unless Public School Budget and DSS Budgets find agreement within the next 30 days.
I will keep you posted.
The Beat Goes On!!
P.T.
DEAR COLLEAGUES:
The Conferees have been appointed for the Appropriations Conference Committee on Community Health for 2010/2011.
The Senate Conferees are:
Senator Roger Kahn, Senator John Pappageorge, and Senator Deborah Cherry.
The House Conferees are:
Representative Gary McDowell, Representative George Cushingberry, and Representative Kevin Green.
The Conference Committee is initially expected to meet this week, with date and time to be determined.
I will keep you apprised.
Paul T.
Peace,
Dear Colleagues:
There will be a Health Policy Committee meeting presentation on National and State Health Care given by Kaiser Commission on Medicaid and the Uninsured, Commissioner Ken Ross of the Office of Financial and Insurance Regulation, and by Director Janet Olszewski, MDCH.
The meeting will take place tomorrow morning, Tuesday, May 25th, at 10:30 a.m. in the House Office Building.
Also, on Thursday, May 27th, the Senate Appropriations for the Community Health Department will hold a meeting with presentations on the Michigan Health Information Network.
I will represent at both of these meetings, and would welcome any or all wishing to attend with me. Kindly let me know of your availability. I will keep you aprised.
Sincerely,
Paul T.
Dear Colleagues:
This morning the House Subcommittee on Appropriations for the Department of Community Health, chaired by Representative Gary McDowell, met at 8:00 a.m.. Senate Bill #1152 (H-1) was passed, with one additional amendment.
The amended language creates “Section 1603″, and reads as follows:
“Section 1603 (1) The department may establish a program for persons to purchase medical coverage at a rate determined by the department..
(2) The department may receive and expend premiums for the buy-in of medical coverage in addition to the amounts appropriated in part 1.
(3) The premiums described in this section shall be classified as private funds.”.
The Gross Appropriation to DCH as proposed by the Governor was $14.4 Billion. The Senate passed the DCH Budget at $13.6 Billion. The House version of SB-1152 sits at $13.7 Billion or $635 Million above the present year Budget, which expires October 1st, 2010.
Highlights of the Bill en route to the Full House Appropriations Committee are as follows:
The Bill returns the 3% salary and wage increase for DCH employees, which was deleted by the Senate. This line added $5.8 Million to the Budget, in economic adjustments.
An additional $2.2 Million was added to the State Disability Assistance Program, Substance Abuse Services, supporting indigents who reside in substance abuse facilities who do not qualify for SSI.
The House restored funding to local public health for immunizations and infectious disease control, etc.
The House added $600,00 and 6 PTEs to restore the Public Health Lab at Houghton.
The House added $3.7 Million to restore funding to the Transitional Medical Assistance Program.
This Legislation will go to the House floor and then to the Senate next week for rejection and referral to Conference Committee where all final differences will be resolved by June 20th, 2010.
As always, should you have questions or concerns, please do not hesitate to contact me.
PT
Public Testimony will be taken by the House Appropriations Subcommittee on Community Health, chaired by Representative Gary McDowell
On Wednesday morning, April 21st, Mike Head CMH Mental Health Division Director, presented the Mental Health portion of the DCH Budget.
Persons wishing to testify in that regard will be heard next Monday, April 26th beginning at 9:00 a.m. in the House Appropriations Committee Room (352) of the Capitol Building.
If any of you wish to testify, I would be happy to help facilitate.
Please contact the office at: 517-319-2580
PT
