January 2010: Issue 14

STATE BUDGET NEWS
Public Policy Meeting Held at Federation
Federation members gathered on Wednesday for a Public Policy meeting to discuss a legislative action plan for the 2010 legislative year. Federation members, along with our lobbyists, Bruce Ashley and Becky Bechler of Public Affairs Associates, discussed the critical need to be aggressive, nimble, and quick in our actions and advocacy in this unprecedented budgetary year. Although the political climate may change, requiring different approaches, the Federation will focus its legislative efforts on seven key issues in the coming year, which include:
1. Reimbursement Rates: Advocate for necessary resources that allow the membership to meet the requirements of the consent decree.
2. Receivables Past Due: Pursue unpaid bills dating back to 2003.
3. Contracts and Bidding: Per boilerplate, DHS is not required to put up for bids a contract where the service provider is nationally accredited or if the only service provider in that area.
4. Business of Contracts: Collaborate with DHS on a process for how contracts are negotiated, awarded, monitored, and the impact of policy changes on contracts.
5. Child Welfare Training Institute (CWTI) Procedures: Per boilerplate, accredited agencies can conduct their own staff training.
6. Out-of-State Placements: Per boilerplate, DHS shall not spend state dollards to pay for placement of a child in out-of-state facilities.
7. Juvenile Justice Strategy Development: Assist legislative leaders and administration in developing a comprehensive JJ strategy.

October 2009: Issue 8

STATE BUDGET NEWS
Fiscal Year 2010 +14 Days: Granholm to get bills, but sides still apart

Governor Jennifer Granholm and Senate Majority Leader Mike Bishop solved a procedural hurdle Wednesday to completing the 2009-10 budget, but made no apparent progress on the more difficult question of striking an agreement on the actual spending plan.
After meeting for more than an hour in the Romney Building, Mr. Bishop (R-Rochester) was asked if he heard what he needed to hear from Ms. Granholm to release to the governor's desk the six remaining budget bills Republicans are holding in the Senate. "I think that I did," he told reporters, noting that he still wanted to discuss the situation with the Senate Republican caucus. "I appreciated the fact that the governor was willing to share with me some of her concerns and I will take that message with me to the caucus."
"I expect that and hope that and am asking that he send them to me immediately," Ms. Granholm said. But even if the Senate does finally send her those bills, there's no indication that she and the Legislature are anywhere near a deal on the most controversial items. And they are almost halfway through the continuation budget that authorized continued government operations through October 31.
The governor again asked Mr. Bishop to consider passing some new revenues to restore spending in some of those areas. "I asked him in a number of ways to reach an agreement with me on making sure these priorities can exist and looking for non-tax ways of doing it," she said. "The kind of revenues that I think would be the least painful to be able to fund these critical priorities for Michigan's future." But Mr. Bishop said he told Ms. Granholm that the House-passed revenues are "unnecessary at this time." "They're bad for Michigan," he said. "We're going to stand strong."

Foster Care Contract Amendment Notice

August 2009: Issue 5

STATE BUDGET NEWS
Pace of Budget Talks to Quicken
Good News: $37 Foster Care Rate Remains
Mental Health Advocates: Cuts Will Cause More Suffering

NATIONAL NEWS
New Report Recommends Changes to Government Financing of Human Services System: Calls for modern technology, reduced costs and long-term financial stability.

August 2009: Issue 4

STATE BUDGET NEWS
Budget Talks Continue: Granholm May Have More Specific List of Cuts
The state has to have its 2009-10 budget in place by October 1. So far, no announcements have come out of budget talks between Governor Jennifer Granholm and legislative leaders last week, but indications have been made that Ms. Granholm may have provided a more specific list of potential budget cuts to legislators. One legislative Republican said having a more specific proposal at this point could help resolve the budget more quickly.
House Speaker Andy Dillon (D-Redford Twp.) said new estimates from the Senate Fiscal Agency that next year's deficit is $2.7 billion "show just how urgent it is to produce substantial, long-term savings and break the yearly cycle of budget deficits." Mr. Dillon described that negotiations were ongoing.

Budget Gaps Grow Another $40-50 Million
Not even the popular cash for clunkers program appears to be enough to prevent Michigan's July revenues from falling between $40 million and $50 million below expectations, according to preliminary figures on the month from the Senate Fiscal Agency. Jay Wortley, the agency's senior economist, said revenues are between $130 million and $170 million below what officials forecast at the May revenue estimating conference to set the basis for writing the 2009-10 fiscal year budget that begins October 1.

Social Service Advocates Plea: No More Budget Cuts

Saying balancing the budget on the backs of the poor would be "a moral and legislative failure," several advocacy groups on Wednesday said while they can't stop huge cuts that have already been made, lawmakers should not slash services to the poor any further.