Michigan Faces Major Budget Cuts

At least 150 state employees would be laid off as part of a $304 million budget-cutting Executive Order released this morning.

State Budget Director Bob Emerson presented the cuts to a joint session of the House and Senate appropriations committee this morning. The bodies have 10 days to approve or reject the document. They can not make revisions.

“This is a horrible thing that I present to you today,” Emerson said. “This was as much as I could swallow.”

The Michigan Department of Community Health has received $53,095,500 in spending cuts and the Department of Human Services received $97,484,800, the largest of any state department.

Grants for teenage parents, before-and-after school grants, food stamps and indigent burial are just the starters. All optional Medicaid services — chiropractic services, podiatric services, non-emergency transportation, optometric services and dental services — are gone from July to September.

The community mental services will be cut $10 million starting July 1. All Medicaid reimbursements — to hospitals, physician, nursing home services, laboratory and supply services — are being cut 4 percent.

Nearly all of the remaining programs under the Healthy Michigan Fund would be eliminated starting July 1 including local public health operations, migrant health outreach, asthma prevention and more.

More information to come…

Read the Full Text of Governor Granholm’s Executive Order

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