The House and Senate Appropriations Committee held a joint hearing for Gov. Whitmer’s executive budget recommendation for fiscal year (FY) 2027, and the Senate Regulatory Affairs Committee heard testimony on nurse mandatory overtime legislation during the week of Feb. 9.
State Budget Director Jen Flood presented Feb. 11 Gov. Whitmer’s executive budget recommendation, which includes full funding for Medicaid and hospitals. The recommendation totals $88.1 billion, including $13.6 billion from the state general fund. The Michigan Department of Health and Human Services budget accounts for $41 billion of total state spending.
The budget responds to federal changes following the passage of H.R. 1 last year. The proposal recommends hiring 589 new full-time employees to implement Medicaid work requirements. The state estimates 200,000 Michiganders could lose Medicaid coverage in FY 27 due to work requirements and redeterminations.
The proposal also calls for $804.4 million in new revenue from taxes and assessments that would be deposited into the Medicaid Benefits Trust Fund for Medicaid programs and services, including:
- $327 million from new taxes on tobacco and vape products.
- $282 million from a new digital advertising tax.
- $195.4 million from online gambling and casino taxes.
Outside of healthcare, the budget calls for new investments in programs such as third grade reading and property tax credits for seniors.
MHA CEO Brian Peters released a media statement that reiterates the importance of the governor and legislative leaders passing a budget that protects Medicaid and hospitals. The association will work closely with legislative leadership moving forward to ensure MHA priorities are fully funded.
The Senate Regulatory Affairs Committee heard testimony on Senate Bills 296 and 297, sponsored by Sen. Stephanie Chang (D-Detroit) and Sen. Ed McBroom (R-Vulcan), which would prohibit mandatory hospital overtime in certain circumstances. The bills would establish arbitrary one-size-fits-all staffing requirements that may limit patient-focused clinical decision-making, and individual team-based approaches should be prioritized. The MHA does not support legislation that curtails hospital leaders’ decision-making authority and instead supports empowering local healthcare professionals to make decisions that best serve patients and reflect clinical expertise. The MHA will continue to monitor the legislation and work with lawmakers and healthcare stakeholders to ensure that care teams have the tools they need and that Michiganders maintain access to timely, high-quality care.
Members with questions may contact the MHA advocacy team.
