Governor Granholm last week released her
proposed state budget for the upcoming fiscal
year (FY 2010), which begins on October 1st
of this year and ends on September 30th of
2010. The Governor's budget addresses a
projected deficit of $1.4 billion as a result
of declining revenues and additional spending
pressures in the Departments of Corrections,
Community Health and Human Services. State
revenue estimates are now below 1971 levels.
The national economic collapse has also
deepened the state's structural budget
deficit. On the same
day the Governor's budget was released,
Congress reached a compromise on a federal
economic
recovery package that will infuse new
resources into the states. Governor
Granholm's budget
includes only a small portion of the funds
expected in the economic stimulus
package--$500 million
to reflect a temporary increase in the
federal match Michigan can receive for
Medicaid expenditures.
In her budget message, the Governor
reiterated that economic stimulus dollars are
one-time money
and cannot be used to fund ongoing programs
or Michigan will run the risk of further
deepening its
structural deficit.
The Governor proposed to address the budget
deficit through a combination of budget cuts
totaling
$670 million and government reforms. Some of
the cuts would have serious implications for
children and families in Michigan.
Among programs and services targeted for cuts
are:
- K-12 per-pupil foundation allowance
- Before- and after-school programs
- Child care subsidies
- Teen parent counseling
- Marriage and fatherhood initiatives
- Nurse Family Partnership program
- 0 to 3 Secondary Prevention
- Adoption subsidies
- Community Protection and Permanency
Planning
- Black Child and Family Institute
To read more about proposed spending cuts click
here.
