Department of Community Health
The bill would provide for a $9.2 million appropriation of additional State Restricted funds in the Medicaid program. The $9.2 million of State Restricted funds consists of $5.3 million of Merit Award Trust Fund revenue and $3.8 million of Healthy Michigan Fund revenue to offset General Fund/General Purpose (GF/GP) savings contained in Executive Order 2009-22.
Department of Human Services
The bill would provide for the appropriation of $16.7 million of Federal funds to offset GF/GP appropriation reductions contained in Executive Order 2009-22. The source of these additional Federal funds is the American Recovery and Reinvestment Act of 2009 (ARRA). The Federal ARRA funds would be appropriated in the Child Support Enforcement Program and in the Child Support Automation Program.
Department of State Police
The bill would provide for the appropriation of $3.8 million of State Restricted funds to offset GF/GP appropriation reductions contained in Executive Order 2009-22. The source of these State Restricted funds is State services fee funds and the additional funding that resulted from Executive Order 2009-22 reductions in the Department of Agriculture. These additional State Restricted funds would be appropriated for laboratory operations in the Forensic Science Program.
The following is a brief summary of the boilerplate language contained in Senate Bill 334 (S-1):
Sec. 201: Reporting language regarding payments to local units of government contained in the bill.
Sec. 202: Language that would subject the appropriations in the bill to provisions of the Management and Budget Act.
Sec. 301: Language in the Department of Community Health boilerplate that would adjust the pharmaceutical dispensing fees to make them consistent with a reduction contained in Executive Order 2009-22. This language would replace current law language in Section 1620 of Public Act 246 of 2008, the Department of Community Health budget. The bill would repeal that section.
Sec. 401: Language in the Department of Environmental Quality boilerplate that would appropriate $874,900 of surplus funds in the Community Pollution Fund to the Environmental Protection Fund. These funds then would be appropriated as a contingency fund transfer to offset an $874,900 appropriation reduction in Executive Order 2009-22.
Sec. 601 and 602: Language in the Department of Treasury boilerplate that would implement the $41.5 million of reductions in revenue sharing payments contained Executive Order 2009-22. This language would replace current law language in Section 950 of Public Act 261 of 2008, the Department of Treasury budget. The bill would repeal that section.
The following is a brief summary of the language in existing appropriation boilerplate sections that the bill would repeal:
Section 269 of Public Act 246 of 2008: Repeal of language in the Department of Community Health budget that requires the maintenance of all reimbursement procedures and policies for mental health pharmaceuticals for Medicaid clients that were in place during FY 2005-06. This language is not consistent with a reduction contained in Executive Order 2009-22.
Section 1620 of Public Act 246 of 2008: Repeal of language in the Department of Community Health budget that sets the level of dispensing fees paid to pharmacies that provide prescriptions for Medicaid clients. Dispensing fees were reduced in Executive Order 2009-22. The new dispensing fees are contained in boilerplate Sec. 301 of Senate Bill 334 (S-1).
Section 1625 of Public Act 246 of 2008: Repeal of language in the Department of Community Health budget that requires all atypical antipsychotic mediations to be on the State's preferred drug list. This language is not consistent with a reduction contained in Executive Order 2009-22.
Section 1630 of Public Act 246 of 2008: Repeal of language in the Department of Community Health budget that requires the coverage of podiatric services under the Medicaid program. Executive Order 2009-22 eliminated coverage of these services effective on July 1, 2009.
Section 1634 of Public Act 246 of 2008: Repeal of language in the Department of Community Health budget that requires a specific reimbursement rate for ambulance services for Medicaid clients. Executive Order 2009-22 reduced this reimbursement rate.
Section 1635 of Public Act 246 of 2008: Repeal of language in the Department of Community Health budget dealing with Medicaid reimbursement rates for obstetrical services. This language is not consistent with a reduction contained in Executive Order 2009-22.
Section 1636 of Public Act 246 of 2008: Repeal of language in the Department of Community Health budget dealing with Medicaid reimbursement rates for physicians. This language is not consistent with a reduction contained in Executive Order 2009-22.
Section 516 of Public Act 248 of 2008: Repeal of language in the Department of Human Services budget concerning a pilot child welfare project in Kent County. This language is not consistent with a reduction contained in Executive Order 2009-22.
Section 1104 of Public Act 248 of 2008: Repeal of language in the Department of Human Services budget dealing with community services block grants. This language is not consistent with a reduction contained in Executive Order 2009-22.
Section 950 of Public Act 261 of 2008: Repeal of language in the Department of Treasury budget dealing with statutory revenue sharing payments to cities, villages, and townships. The language is not consistent with a reduction contained in Executive Order 2009-22.
FISCAL IMPACT
The bill contains $31.0 million of Gross supplemental appropriations for FY 2008-09. These appropriations relate to appropriation reductions contained in Executive Order 2009-22.
Fiscal Analyst: Gary S. Olson
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. 334/0910 |