Governor Presents Fiscal Year 2020 Executive Budget Recommendation
Posted on March 07, 2019
On March 5, Gov. Gretchen Whitmer presented her fiscal year (FY) 2020 executive budget proposal to the Legislature. While the focus of her budget presentation centered on new funding for state infrastructure (roads, clean water) and education, the proposals to fund these priorities did not include making significant cuts to Michigan hospitals and healthcare.
The most important takeaway for the hospital community relates to the MHA Board-supported multiyear budget agreement. The executive budget proposal puts an additional $7 million in the Rural Access Pool and Obstetrics Stabilization Fund. While this is less than the FY 2019 appropriation, the governor’s office recognizes that the MHA will be working to return funding to $10 million as part of this year’s budget negotiations.
Medicaid reimbursement rates are proposed to remain the same, while the state’s Healthy Michigan Plan obligation is fully funded with a $75.1 million general fund increase. The governor is also proposing an additional $10 million to address implementation of Medicaid work requirements, a measure that won legislative approval in June. The funding will ensure beneficiaries impacted by work requirements have access to needed employment supports, while providing resources to the Michigan Department of Health and Human Services to help beneficiaries comply with the requirements, which are slated to go into effect Jan. 1, 2020.
In response to the executive budget proposal, MHA CEO Brian Peters issued a media statement commending the governor and her team on the first budget proposal of her administration. The MHA will keep members apprised as budget negotiations advance this spring and as the association works with legislators and state officials on improving the delivery of behavioral health services and securing adequate funding for the state’s small and rural hospitals, which includes Michigan’s 36 critical access hospitals.
Members with questions should contact Adam Carlson at the MHA.
Posted in: Issues in Healthcare, Top Issues - Healthcare