State Legislative Weekly Recap: Executive Budget Recommendations, Nurse Mandatory Overtime Testimony

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.

State Senate Advances Healthcare Legislation

Several bills impacting healthcare and hospitals were advanced through committees in the state Senate during the week of Oct. 14.

Senate Housing and Human Services voted out a package of legislation referred to as the ‘Momnibus.’ Sen. Erika Geiss (D-Taylor) and colleagues Sens. Stephanie Chang (D-Detroit), Sarah Anthony (D-Lansing), Mary Cavanagh (D-Redford Twp.) and Mai Xiong (D-Warren) introduced Senate Bills (SBs) 818, 819, 820, 821, 822, 823 and 825, as well as House Bill (HB) 5826, make alterations to state law to improve outcomes in maternal care. Specifically, these bills increase opportunities for addressing bias in patient care, prohibit discrimination based on pregnancy or lactation status, allow for appropriate information sharing with the Department of Health and Human Services, allow for loan repayment for certified nurse midwives and create the doula scholarship fund. The MHA secured amendments to the bills in committee to ensure that hospitals are trusted partners in this work and recognize hospitals’ commitment to addressing maternal health disparities. The bills were voted out of committee, with the MHA supporting SBs 818, 819, 820, 825 and HB 5826.

Additionally, the Senate Appropriations Committee voted out House Bill (HB) 4361 (Brabec), which creates a one-time individual income tax credit for organ donors. The $10,000 one-time credit can be used to cover expenses incurred from the live organ donation. Specifically, those expenses need to be non-reimbursed expenses that are directly related to the act of living organ donation including things like travel, lodging, lost wages or childcare. The MHA is supportive of HB 4361, which recognizes the costs incurred by organ donors.

Rep. Stephanie Young (D-Detroit) introduced HB 6025, the most recent legislation introduced among a series of bills highlighting the need to review the state’s guardianship system. HB 6025 alters the definition of “relative” for purposes of guardianship of a minor. This change could potentially increase opportunities for relatives, close kin, foster parents or those who are identified as having a special relationship with the minor to be selected as the guardian. Further, the legislation modifies when a minor’s guardian may request financial assistance. If enacted, a minor would have to reside with a relative guardian or foster parent for at least six months before an application for financial assistance. The guardianship process is complex and can be difficult to navigate. For those reasons the MHA has put together the Guide for Michigan’s Adult Guardianship Process to help all those who interact with the system find more success.

Members with questions on state legislation can contact Elizabeth Kutter at the MHA.