LANSING – Governor Rick Snyder?s proposal to close the $330 million current year 2014-15 General Fund budget deficit includes a smattering of cuts totaling $102.9 million, funding the remainder of payments to the state?s community colleges entirely out of the School Aid Fund and realizing savings from the reduction of Medicaid caseloads. One of the biggest and highest profile cuts is $12 million to the film incentive program.
Paying community colleges out of the School Aid Fund, instead of the General Fund, would save $167 million. Unlike the General Fund, which is in deficit, the School Aid Fund has some additional money available.
And declining caseloads in the state?s traditional Medicaid program (not the Healthy Michigan program that made Medicaid available to more people) will save another $100 million.
There are several notable cuts in the executive order, which will require approval from both the House and Senate Appropriations committees. Some of the cuts also will be handled via a negative supplemental appropriations bill (this link has greater detail on the executive order and details on the supplemental) and need approval from the full House and Senate.
In the Department of Community Health, Snyder would cut $5 million in General Fund support for the Graduate Medical Education program, an 8.9 percent reduction in what is now a $51.1 million General Fund contribution. There would be a $2 million cut in the Rural and Sole Community Hospital program, dropping General Fund support to $10 million.
Mental Health Commission funding would drop by $2.9 million General Fund to $11.4 million.
Local public health departments would see a $1.5 million General Fund cut, dropping General Fund aid to $39.4 million. This eliminates the increase local public health departments would have seen in the current year.
There would be $20.7 million reduced from the Department of Corrections budget, largely based on lapses and improved efficiencies.
There is a $2.75 million reduction in the state?s drinking water revolving fund match program, but the administration says the remaining funds will be enough to leverage all available federal funds.
Michigan Public School Employees Retirement System payments for universities and libraries that once came out of the General Fund-aided higher education and Department of Education budgets, respectively, will now come from the School Aid Fund.
In the Department of Human Services, $6.55 million General Fund would be saved in the Adoption Subsidy Redetermination of Care Payments program. And $7 million in federal Temporary Assistance to Needy Families funding would replace General Fund in the adoption subsidy program.
There is a $100,000 cut in the PATH coordinators line item, reducing the number of coordinators by nine full-time equivalent employees. Affected employees could move into other positions in the department, although the administration did say some lay-offs are possible.
In the state?s business attraction program, Snyder proposes replacing $7.8 million in General Fund money with funds from the 21st Century Jobs Fund, which receives money from the national tobacco settlement.
Maintenance at state parks would be cut by 2 percent, or $250,000.
In the Department of State Police, $16 million would be saved through a lapse in the Disaster Funding program due to fewer than anticipated claims. The motor carrier school would be postponed until October 1, 2016, saving $3.2 million, and the trooper school for this year would be reduced from 100 graduates to 60 graduates, to save $2.8 million.
Snyder proposes cutting his Office of Urban Initiatives by 20 percent, saving $1 million.
And $5 million would be saved by cutting enterprise special maintenance at state facilities by 16.7 percent, delaying those improvements.
Some $17.8 million would be saved in an expected lapse in State Building Authority rent.
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