Governor Granholm Signs Additional Budgets to Spur Economic Development, Protect Children, Health Care and Environment

Press Release

Governor Jennifer M. Granholm today signed additional legislation to implement the fiscal year 2011 budget, including appropriations bills for the Departments of Community Health, Corrections, Human Services, Natural Resources and the Environment, Transportation, and Energy, Labor and Economic Growth. In addition, the governor signed the general government budget which provides appropriations for eight state and legislative agencies.

"The budgets I have signed protect funding for critical priorities, including job creation, worker training, health care and child safety," Granholm said. "We maintained our commitments to local communities and to citizens who rely on us for vital services."

Highlights of the fiscal year 2011 appropriations bills signed today include:

Department of Community Health

The Department of Community Health's (DCH) fiscal year 2011 appropriation totals $14.1 billion, including $2.4 billion from the state's general fund and nearly $9.5 billion in federal funding. Highlights of the bill include:

* $12 billion to support the state's Medicaid system, which provides health care and mental health services to more than 1.7 million Michiganians, including nearly one million children;
* Restoration of adult dental, podiatric and limited optical services, which were eliminated in the current fiscal year;
* Full funding of the Adult Benefit Waiver program which provides health care to more than 60,000 childless adults.

The governor disapproved four provisions in the DCH budget which were special earmarks or where sufficient funds were not made available to meet requirements.

Department of Corrections

The Department of Corrections (DOC) will receive $2 billion, including $1.9 billion in general fund support, to serve the state's 44,000 prisoners and 81,000 parolees and probationers in fiscal year 2011. The total budget is increased by $10.8 million though general fund support is down $1.3 million.

Though the legislature failed to support many of the governor's proposed reforms which would have resulted in more than $129 million in savings, the budget does recognize $79.2 million in spending reductions. The governor reminded legislators that in the absence of her proposed reforms, the savings targets are very aggressive and will be difficult to achieve but expressed her confidence in the department's ability to continue reducing costs.

"Thanks to the hard work and dedication of the employees in our Corrections department, Michigan's prison population is decreasing, cost savings have been achieved and recidivism is down," said Granholm. "I am disappointed that the legislature, once again, did not take action to examine and revise Michigan's sentencing guidelines to give the department even greater ability to continue implementing reforms without harming public safety."

The governor vetoed an interdepartmental grant in the DOC budget which would have transferred corrections funding to the legislative auditor general, as well as a learning management pilot project which the governor could not support while core departmental functions are being cut.

Department of Energy, Labor and Economic Growth

The fiscal year 2011 appropriation for the Department of Energy, Labor and Economic Growth (DELEG) is $1.3 billion, including $47.6 million from the general fund.

As the governor recommended in her February budget proposal, the DELEG appropriation includes more than $640 million to help Michigan workers complete in the global marketplace through skills training and education initiatives. In addition, the budget includes $134 million for energy efficiency and utility regulatory programs.

The governor disapproved four earmarks totaling $355,000, which undermine the department's competitive process for awarding grants and impede the prioritization of workforce training.

Department of Human Services

The Department of Human Services (DHS) budget for fiscal year 2011 is just under $7.0 billion, including $5.9 billion in federal funding and $930 million from the state's general fund. This is an increase of nearly 17 percent, due largely to the rapidly rising food assistance caseload which is fully funded by federal dollars.

This budget continues the governor's commitment to investing in the state's child welfare system to ensure that all children in Michigan are safe and cared for. It includes funding for an additional 684 positions, including 417 child protective services workers, to meet the tighter caseload to worker ratios required by the Children's Rights lawsuit settlement agreement. In addition, the budget provides necessary funding to support more than 7,300 children in out-of-home care, 33,000 families who need safe, quality day care, 10,700 disabled adults who rely on State Disability Assistance and more than 28,700 children who have been adopted through the state's foster care system. The governor vetoed 10 provisions in the DHS budget, including several program enhancements that cannot be justified in a budget where core services remain underfunded.

Department of Natural Resources and the Environment

The total operating budget for the Department of Natural Resources and the Environment (DNRE) for fiscal year 2011 is $719.0 million, which includes $41.3 million in general fund money.

The first budget since the department was created when Governor Granholm issued Executive Order 2009-45 in December recognizes $356,000 in general fund savings as a result of the consolidation. The budget also recognizes funding from the new "Recreation Passport" program which supports state parks, state recreation areas, state forest campgrounds, non-motorized trails and pathways and local parks. Starting tomorrow, residents can purchase a $10 "Recreation Passport," which renews access to all facilities for one year.

Department of Transportation

The Department of Transportation's (MDOT) budget for fiscal year 2011 provides more than $3.2 billion to continue high quality transportation services that foster economic development and improve the quality of life for Michigan citizens.

The governor's executive budget recommendation anticipated an $84 million shortfall in the State Trunkline Fund, which would have resulted in $475 million in lost federal revenue. The MDOT budget signed today includes an agreement to fill the shortfall and prevent the loss of federal funding through short-term borrowing, redirection of "toll credits" and other transfers and spending reductions.

The governor disapproved four items which are unnecessary expenditures.

General Government

The FY11 general government budget provides $3.3 billion, $590.5 million of which is general fund, for the Departments of Attorney General, Civil Rights, Technology, Management and Budget, Secretary of State, Treasury, and the Executive Office, Legislative Auditor General and the Legislature. A major portion of this budget is $1 billion for revenue sharing for local units of government, which is maintained at the same level of funding as the current fiscal year.

The governor vetoed one item in the budget because it authorizes the Department of Attorney General to spend in excess of the target agreement between the governor and legislative leaders.

In addition to the appropriations bills signed today, the governor signed seven bills to implement additional components of the FY11 budget agreement including legislation to extend the sunsets of several existing fees and expanding the penalties for illegal liquor bootlegging. The implementation bills signed were House Bill 4538, sponsored by Representative Rick Jones (R-Grand Ledge), House Bill 5307, sponsored by Representative George Cushingberry (D-Detroit)

House Bills 6426 and 6427, sponsored by Representative Bert Johnson (D-Detroit), Senate Bill 1035, sponsored by Senator Valde Garcia (R-Howell) and Senate Bills 1450 and 1451, sponsored by Senator Patricia Birkholz, (R-Saugatuck).

Last week, the governor signed FY11 appropriations for community colleges, the judiciary and the Departments of Agriculture, Education, State Police and Military and Veterans Affairs.

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