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Governor’s FY 2011 Budget Once Again Safeguards MI Choice Home and Community Based Care but Proposes Other Harmful Cuts

03-08-10

Alison Hirschel, MPLP Elder Law Attorney

Governor Granholm released her FY 2011 Budget this month. Despite enormous budget pressures, the Governor recommended $14 million in additional funding (an 8% increase) for the MI Choice Home and Community Based Waiver Program. She also projected an increase in the number of people who will be transitioned out of nursing homes with supports and assistance so that they can return to the community. Nursing homes and the Home Help program also received increases.

Programs funded by the Office of Services to the Aging (including meals, home care, care management, caregiver programs and access services) did not fare as well; the Governor recommended 8% cuts across the board on top of the significant cuts for funding for services in the past year. There is particular reason for concern about senior meal programs; consumers have not yet felt the previous $2 million funding cuts for this essential service because the state filled in the gaps with one time federal stimulus funding. Since those funds will no longer be available, providers will have to reduce the number of clients who receive meals or limit the number of meals clients can receive.

The Governor’s budget is based on a number of assumptions that many observers think may be unrealistic including a restructuring of the sales tax, an extension of the increased federal Medicaid match rate (which Congress has not yet approved), and many other technical issues. Moreover, many legislators are calling for much more significant cuts in the state budget including elimination of all optional Medicaid services (including home and community based care).

The legislature’s discussion of the budget begins in the Senate. The Senate Department of Community Health Subcommittee will hold a hearing on the Medicaid budget on February 25 at 3 pm in the Boji Tower, 124 W. Allegan Street in Lansing. A hearing on the OSA budget is scheduled on March 4 at 3 pm in the same location. Consumers who testify about the importance of Medicaid and OSA services in their lives can be very effective and the hearings are open to the public. Testimony need only be 2-5 minutes long and consumers are encouraged to speak plainly about their own experience.

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