Michigan House Passes $78.5 Billion Budget with Major Cuts

News Summary

The Michigan House of Representatives has approved a $78.5 billion budget, drastically reducing funding for health, human services, labor, and law enforcement. House Bill 4706, known as the ‘Value for MI Dollars Budget’, cuts $6 billion compared to the previous Senate proposal. Significant reductions include nearly $3.79 billion from Medicaid and behavioral health and $1.07 billion from human services, with concerns raised about impacts on public health and safety. The budget now moves to the Senate amid worries of potential government shutdown if a deal isn’t reached by October 1.

LANSING, MI – The Michigan House of Representatives has passed a budget bill totaling $78.5 billion, which significantly cuts funding for health and human services, labor, and law enforcement. The budget, referred to as House Bill 4706, or the “Value for MI Dollars Budget,” was approved along party lines and includes $54.63 billion for state departments and $12.09 billion for the General Fund.

In comparison to a budget plan proposed by the Democrat-controlled Senate, the House’s budget cuts approximately $6 billion. Among the most notable reductions, the budget foresaw a $3.79 billion cut, equating to a 13% decrease, from Medicaid and behavioral health funding. Additionally, it reduces human services funding by $1.07 billion, which is a 14.8% decrease, and public health funding by $92.4 million, or 7.6%.

The Department of Labor and Economic Opportunity faced an astonishing $1.13 billion cut, amounting to 46.7% of its budget. General government spending is also set to decline, with $667.2 million cut from various departments, including $38.3 million from the Department of Attorney General and $15 million from the Department of Civil Rights.

Moreover, the budget proposes to eliminate 300 full-time employee positions in statewide law enforcement operations. It also prohibits any state funding for diversity, equity, and inclusion (DEI) initiatives across all state agencies, including the elimination of the Office of Race, Equity, Diversity and Inclusion within the health department.

The budget does include some increases, such as a $3.4 billion increase for the Department of Transportation, reaching a total budget of $10.2 billion. This funding boost includes a new targeted local bridge program worth $100 million. However, nearly $4 billion will come from cuts to the Michigan Department of Health and Human Services, which will reduce essential services, particularly in prison healthcare and reentry programs, raising alarms about public safety implications.

On the other hand, a modest increase of 6.9% is proposed for the Department of Military and Veteran Affairs, totaling $295 million. Nevertheless, cuts in family and social services have raised concerns from several advocacy groups, including health and safety organizations, and education leaders have criticized the budget as a loss of $2 billion for K-12 schools, arguing it diverts funds away from educational initiatives.

House Democrats have characterized the budget as extreme, accusing it of undermining public safety and disregarding critical needs for schools and healthcare. Similar sentiments are being echoed by Senate Democrats and advocacy groups who are standing united in opposition to the budget plan, emphasizing the detrimental effect it will have on community health and public service funding.

The House budget now moves to the Senate for further review. Concerns have been raised regarding the necessity for an agreement by October 1. Failure to do so may lead to a government shutdown, further intensifying the urgency surrounding the budget negotiations.

This budget proposal highlights a significant shift in Michigan’s financial priorities, promoting greater spending on infrastructure while cutting deep into services long viewed as essential to the welfare of its citizens.

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