Below are a list of “very plausible” cuts in the State of Michigan’s FYE 2011 budget provided by the City of Ypsilant’s lobbyist, Kirk Profit of GCSI, Inc. The potential cuts amount to $2.09B with an additional loss of $2.37B in Federal Funds. The largest and the most devastating cuts are the elimination of the remaining statuatory revenue sharing and cuts of $1.2B in community health.

AGRICULTURE

• 20% reduction: Administrative reductions, staff layoffs, etc. ($6,010,100)

TOTAL: $6,010,100

ATTORNEY GENERAL

• 20% reduction: Administrative reductions, staff layoffs, etc. ($5,757,000)

TOTAL: $5,757,000

CIVIL RIGHTS

• 20% reduction: Administrative reductions, staff layoffs, etc. ($2,341,300)

TOTAL: $2,341,300

COMMUNITY HEALTH

• Protection and advocacy services support – eliminate ($194,000)
• CMH non-Medicaid services – eliminate ($287,468,000)
• Medicaid adults benefits waiver (mental health) – eliminate ($10,308,000)
• Multicultural services – eliminate ($6,823,800)
• State disability assistance program substance abuse – eliminate ($2,243,100)
• Local public health operations – 50% GF/GP reduction ($17,466,400)
• Healthy Michigan Fund projects· – 50% Healthy Michigan Fund reduction for GF/GP savings ($5,479,800)
• Michigan Health Initiative Fund appropriations· – eliminate ($9,100,000)
• Aging – community services – 50% GF/GP reduction ($6,713,400)
• Aging – nutrition services – 50% GF/GP reduction ($4,775,100)
• Senior volunteer programs (3 line items) – eliminate ($4,853,200)
• Aging – respite care program – eliminate Merit Award Trust Fund dollars ($4,468,700)
• Optional Medicaid services, elimination (1)
• Mental health and substance abuse (2) ($444,549,700)
• Pharmacy services (including HMO drug costs) ($178,180,700)
• Adult home help ($68,652,200)
• MiChoice – home and community-based services ($49,741,600)
• Hospice services ($33,042,500)
• Medical supplies, orthotics, prosthetics ($14,252,100)
• Intermediate care facilities for the mentally retarded ($8,869,900)
• Personal care services ($6,463,400)
• Clinical services (local health departments) ($751,700)
• Medicaid provider rate reduction, 1% ($11,860,700)
• Medicaid adult benefits waiver (physical health) – eliminate ($23,033,400)

NOTE:
(1) Expenditures (except pharmacy) do not include optional services provided through Medicaid health plans.
(2) A component of mental health and substance abuse capitation payments to CMHSPs are optional, but the data to separately identify mandatory and optional services is not readily available.

ARRA provisions prohibit states from eliminating Medicaid eligibility for any specific groups currently covered by the program through January 1, 2011. Funding reductions in certain areas (mental health/substance abuse, home help, MiChoice, pharmacy services) are likely to create offsetting state costs in other areas.

TOTAL: $1,199,288,800

CORRECTIONS

• Reduce prisoner population by 12,000-15,000 (equivalent of 8-10 prison facilities) ($200,000,000)

Operational areas (transportation and food service logistics) can be further improved, but there are few alternatives to further reducing prisoner population, because prison costs constitute roughly 85% of Corrections budget. As a general rule, about one-third of savings tied to prison closures should be reinvested in additional services / sanctions / supervision needed to adequately manage the additional offenders in the community. So, to save $200 million, bed closures would have to generate $300 million in savings by reducing prisoner population by 12,000-15,000 prison beds-equivalent to closing another 8-10 prisons. As of November 2009, there were fewer than 11,500 prisoners eligible for parole, over 1,500 of whom already had paroles in hand and were awaiting release. Another 1,300 had been approved for parole but were under deferrals to determine the need for any further programming. So total potential pool of additional parolees was only about 8,600; given department’s recent efforts in identifying prisoners for parole, probably many of the 8,600 would not be considered good candidates for parole.

TOTAL: $200,000,000

EDUCATION

• Administrative reductions, staff layoffs, etc. ($1,575,600)
• Library of Michigan operations ($1,070,300)
• State aid to libraries ($1,040,000)
• Eliminate book distribution centers ($200,000)

TOTAL: $3,885,900

ENERGY, LABOR, ECONOMIC GROWTH

• No worker left behind – eliminate General Fund support ($4,500,000)
• Reduce Welfare-to-Work ($2,609,800)
• Fire Services – General Fund shift to fire fees (HB 4026) ($2,600,000)
• Worker’s Camp/Board of Magistrates automation options ($633,800)
• Eliminate Nursing Corps ($300,000)
• Eliminate Commission on Spanish Speaking Affairs ($259,500)

TOTAL: $10,903,100

EXECUTIVE OFFICE

• 20% reduction (excluding Governor and Lt. Governor salaries): Administrative reductions, staff layoffs, etc. ($892,700)

TOTAL: $892,700

HIGHER EDUCATION / COMMUNITY COLLEGES

• State university/community college operations – maximum reduction under ARRA MOE requirement ($7,100,000)
• Financial aid and grants – eliminate all remaining state funding, shift Merit Award Trust Fund to GF ($80,564,700)

TOTAL: $87,664,700

HUMAN SERVICES

• State disability assistance program- eliminate ($26,123,700)
• Michigan Community Service Commission – eliminate ($662,100)
• Bureau of Child and Adult Licensing – 25% reduction (redirect federal funding to other programs) ($5,890,700)
• Crisis prevention & Elder Law of Michigan Food for the Elderly Project – eliminate ($150,000)
• Domestic violence and rape prevention programs – eliminate GF/GP and redirect restricted revenue ($3,017,200)
• Regional detention support services – eliminate ($1,396,600)
• SSI Advocacy contracts – eliminate ($1,488,500)
• Estimated discretionary component of SSI supplements – eliminate ($1,500,000)
• Food Bank Council funding – eliminate GF/GP ($1,095,000)
• Homeless Programs funding for non-TANF eligibles – eliminate ($6,988,000)
• Multicultural integration funding – eliminate and redirect TANF ($904,800)
• Indigent Burial program – eliminate and redirect TANF ($4,209,300)
• Emergency Services funding for non-TANF eligibles – eliminate ($10,000,000)

ADDITIONAL OPTION: End participation in the federal Temporary Assistance for Needy Families (TANF) program. State would forfeit $775 million in federal funding, but also relieve itself of obligation to meet $499 million maintenance of effort requirement. With no MOE requirement. Michigan could eliminate state EITC, eliminate certain School Aid categoricals, and eliminate DHS public assistance programs. This would also impact TANF programs in DCH and DELEG.

NOTE: Significant program reductions within TANF-eligible programs are not feasible due to State Maintenance of Effort (MOE) requirements; similarly, reductions to child welfare programs are limited by the requirements of the state’s child welfare lawsuit settlement.

TOTAL: $63,425,900

JUDICIARY

• 20% reduction (excluding judicial salaries): Administrative reductions, staff layoffs, Court Equity Fund, etc. ($12,937,400)

TOTAL: $12,937,400

LEGISLATIVE AUDITOR GENERAL

• 20% reduction (excluding judicial salaries): Administrative reductions, staff layoffs, etc. ($2,324,000)

TOTAL: $2,324,000

LEGISLATURE

• 20% reduction (excluding legislator’s salaries) Administrative reductions, staff layoffs, etc. ($18.456,800)

TOTAL: $18,456,800

MILITARY & VETERANS AFFAIRS

• Reduce staff at veterans homes ($4,300,000)
• Eliminate veterans services organization grants ($3,029,600)

TOTAL: $7,329,600

NATURAL RESOURCES & ENVIRONMENT

• Replace General Fund with new wildfire protection fee ($3,214,400)
• Environmental Quality – offset General Fund with new source review permit fees ($2,000,000)
• Administrative reductions, staff layoffs, etc. ($3,575,500)

TOTAL: $8,789,900

STATE

• 20% reduction: Administrative reductions, staff layoffs, etc. ($3,591,100)

TOTAL: $3,591,100

STATE POLICE

• Eliminate all 998 road patrol troopers – savings net of unemployment costs ($70,000,000)

TOTAL: $70,000,000

TECHNOLOGY, MANAGEMENT & BUDGET

• 20% reduction (excluding SBA rent): Administrative reductions, staff layoffs, etc. ($11,640,700)

TOTAL: $11,640,700

TREASURY-OPERATIONS

• Administrative reductions, staff layoffs, etc. (excluding debt service) ($12,033,200)
• Reduce Senior Cooperative and Renaissance Zone grants ($3,502,400)
• Reduce Payment in Lieu of Taxes ($2,101,300)

TOTAL: $17,636,000

TREASURY REVENUE-SHARING

• Eliminate remaining statuatory revenue sharing (restricted fund savings realized as General Fund revenue) ($314,200,000)

TOTAL: $314,200,000

TREASURY-STRATEGIC FUND

• Economic Development Job Training grants – eliminate General Fund support ($4,690,200)
• Administrative reductions, staff layoffs, etc. ($737,000)
• 21st Century Jobs Fund – eliminate remaining $37.5M, transfer to General Fund ($37,500,000)

TOTAL: $42,927,200

GRAND TOTAL: $2,090,003,100