STATE BUDGET UPDATE
Work on the state budget continued this week on both sides of the Capitol and both sides of the fiscal equation with the Senate passing a version of Governor Snyder's "tax plan" on the revenue side and the House addressing the Senate-passed versions of the spending proposal.With a reduction in the Earned Income Tax Credit, a tiered pension tax, elimination of almost all business tax credits and a replacement of the Michigan Business Tax with a flat 6% corporate tax headed to the Governor for his signature, the only remaining piece of the revenue equation for the '11-'12 fiscal year is the Revenue Estimating Conference scheduled for Monday, May 16. The conference will be an update of the state's current revenue and tax collections and it is strongly anticipated that it will be favorable with as much as $500 million more in expected revenues than previous estimates. If those dollars will be incorporated into the current '11-'12 budget proposals remains to be seen.
We are also anxiously awaiting the next move on the state budget. With an omnibus budget bill passed by the House and rejected in the Senate and individual department bills passed in the Senate and now rejected in the House, the normal conference committee process of negotiating differences on individual department budgets is unclear to say the least.
MCMCH Advocacy
What is clear is that we need to continue educating all legislators on the importance of maternal and child health issues in the state budget. It is time for your advocacy with your own legislators on the items most in jeopardy:
Healthy Michigan Fund
We are defending the current year funding for five maternal and child health-related lines with in the Healthy Michigan Fund: Pregnancy Prevention, Teen Pregnancy Prevention, Michigan Model for Health, Michigan Care Improvement Registry (MCIR), and Michigan Outpatient Maternity Services (MOMS). Click here for talking points on these issues and please include specific, local examples if possible. Most importantly, please talk about the importance of prevention.
Graduate Medical Education
GME funding is in real jeopardy with a 40% cut proposed in the Executive recommendation. The House agreed with that cut and the Senate took it even further and simply eliminated all GME funding. GME programs have a profound effect on access to health care for vulnerable populations and are
essential for preserving health care jobs and many advocacy partners are working on this issue, but we need to add the unique maternal and child health perspective.
It is important that legislators understand what GME and what it is not: GME funding helps teaching hospitals offset the costs of operating medical residency programs for physicians who have completed medical school training and who provide significant patient care to vulnerable populations in hospitals and clinics. GME is not tuition funding.
Please speak to the GME cut from your own perspective about the access and workforce issues it will exacerbate in Michigan.
Local Public Health
The local public health essential services line which provides so much of the base support for local pubic health departments is slated for cuts again. A 5% cut of $1.7 million was proposed in the Executive recommendation and was agreed to in the Senate but the House doubled that amount to $3.4 million or 10%. It is critical to convey to legislators that combining this cut with county revenue sharing cuts and cuts to individual program lines (like pregnancy prevention) means that local public health departments are in real danger of not being able to provide statutorily-required services. It is also imperative to convey the increased demand for services during tough economic times. Please speak to not only your program at local public health but the breadth of the services provided.
Medicaid Rates
No cuts to Medicaid rates are currently proposed by the Governor or in either chamber's version of the DCH budget. It is important that the newly proposed 1% tax on insurance claims is introduced and enacted quickly however as the agreement with the administration and legislators is if the tax doe snot pass that cuts to Medicaid rates would be necessary to make up the almost $300 million hole in the DCH budget.
Please pick those items most relevant to you and your expertise in maternal and child health and contact your own legislators and those who represent your work location as well. Click here for the links to to find your state representative or state senator.
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