NAMI Michigan

           As Governor Snyder examined ways to eliminate the deficit in Michigan’s budget for 2011-2012, many changes have been recommended and are currently being passed in the state legislature.  Some of the largest structural reforms include replacing the current Michigan Business Tax with a 6% Corporate Income Tax, and creating a tax on the pensions of retirees born after 1946.  In a time of proposed shared sacrifice, the mental health community will also see budget decreases in the upcoming years because of the passage of Senate Bill 172 (the budget bill for the Michigan Department of Community Health).  This bill was passed on May 23, 2011 by a 25-12 vote.  Those who disagreed with the Bill were the Democrats who comprised 11 of the 12 no votes.  One account that will stay the same because of the bill is the budget for Medicaid rates and services.  Senator John Moolenaar (R-Midland) stated to Gongwer journalists that the legislature’s “first priority in this budget was to maintain the current Medicaid reimbursement rate for providers.”  This is excellent news for those covered by Medicaid, but for the 1.4 million private-pay citizens with psychiatric disorders, the new budget means a loss in funds. Snyder proposed a 3.0% cut to the Community Mental Health (CMH) non-Medicaid line, which is equivalent to about $8.5 million.  The House and Senate agreed with Snyder by passing this part of the legislation.  The cuts are broken down into a $3.4 million decrease to administrative services and a $5.1 million decrease to non-Medicaid services provided to individuals.

                Other areas of concern for the mental health community are the reductions proposed to the State Disability Assistance (SDA) substance abuse lines and the community substance abuse lines.  For the SDA substance abuse lines, a $224,300 decrease was passed.  The community substance abuse lines budget, which funds local substance abuse coordinating agencies, will see an $182,000 decrease because of the bill.  Even more cuts will be seen for the Salvation Army Harbor Light Program and Odyssey House with a $165,000 decrease in their budget. 

                The Governor and the state legislature also assume to gain savings in the appropriations budget by adding behavioral health drugs to the Preferred Drug List (PDL) covered by Medicaid.  This will only come about, though, if changes are made to Pubic Act 248 of 2004. The assumed savings will be $6.3 million.  This proposed bill may add savings to Michigan’s budget right now, but in the long run, it will actually cost the government more than it will save.  As NAMI Michigan stated in written testimony to the legislature and in a letter to the legislature and the administration, “The supposed savings to be gained from restrictions would be outstripped by ensuing expenditures for more hospitalizations, emergency room visits, incarceration, job losses, home losses and other consequences.”

                The cuts that have been passed for the Department of Community Health budget have left many people enraged.  One person in particular who believes the new budget harms health services is Senator Vincent Gregory (D-Southfield).  He stated to Gongwer journalists that “This isn’t shared sacrifice [the budget cuts], it isn’t right, and it isn’t what the citizens sent us here to Lansing to do.” More to come on the issue as the appropriations budget continues through the legislative process. 

Brittany Lewis

Public Policy Intern

NAMI Michigan

                Klaver, Christopher, Stephanie Cepak, and Steve Grinczel. "No Muss, No Fuss As All Budgets Pass Senate." Gongwer. John Lindstrom, 25 May 2011. Web.

                Michigan House of Representatives. House Fiscal Agency. COMMUNITY HEALTH: FY 2011-12 Summary: Conference Report. By Margaret Alston, Susan Frey, Steve Stauff, and Steve Angelotti. Cong. Rept. Web. 26 May 2011. <http://www.legislature.mi.gov/documents/2011-2012/billanalysis/House/pdf/2011-HLA-0172-8.pdf>.

                Michigan State Senate. Senate Fiscal Agency. Community Health S.B 172. By Steve Angelotti. S. Rept. S.B. 172.