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FY 2012 Reduction Ideas

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Page 1

FY 2012 Reduction Ideas

{$ in thousands)

Savings Estimate 1 \ { % Reduction

Agency _ Reduction ProposaVCtescriptlon - Gross ¦ GF/GP" frcurrent Saw

ELIMINATION O

FEARMARKS

DELEG

M

Fi

-al

Rehabilitation Services for the construction

of

Pontiac. ($250.0).

ichsgan Rehabilitation Services Sasebail

efd: Remove informal S250.000 GF

id: Remove informal 3250,000 GF

ocation (ReD. Conriveau) to Michigan

a baseball field xorthe disabled, in

S250.0}

100%)

Il

There is no specific part 1 or boi erpiate I

earmark, but the funding is priorirjzed for the ;

stated purpose.

DCH

DCH

1 Arthur Hill and Mumford high school

,ad

Colon Disease project at Henry Ford

Hospital

olescent health clinics [£600.0}

r$125.0)

(S203.2)

(S125.0).

(100%)

Included in Family and Maternal Child Health

Special Projects Eineitem

DCH

! Aging Community Services for Tribal Eiders

(S12Q.0)

j

(S120.0)

(100%)

I Included In Office .of Services to the Aging

Community services iine item

Beaver, Drummond and Mackinac Island

ctini

ICS

($100.0)

(100%)

Included in Primary Cars Services line item

DCH

DCH

i SaginawSpeciai Needs Vision Clinic

(100%)

Included in Family and Maternal ChiSd Health

Special Projects line item

DCH

; Bay City Helen M Nickiess Volunteer Clinic

(S75.0J

($75.-0);

100%

included in Primary Care Services line item

DOT

troit / Saginaw Traumatic Brain Injury pilot!1

De

programs |L [S200-0}

(8100.0)

(100%)

Irtcludec in Injury Centre! Prevention Project

line item

DCH

sntal Health for Special Populations

(fo

Funding allocations to the following

groups/agencies: ACCESS, Arab Chaldean

Council, Chaldean Chamber Foundation,

Chinese^^an,_bfispanic, Jewish Federation.

tmer Multicultural Services)

<$6:873.S} ($6,873.8) (100%)

Native American, and Vietnam Veterans.

..Enacted FY 11 included a S50.OTO increase

[for Chaidean Chamber Foundation. Funding

I to several of the same organizations for

multicultural services also appropriated, in

DHS.

j DCH

H

oyse Substance Abuse Allocations j ($4:200.0> ($1,100.0)1 (100%)

Salvation Army Harbor Lights and Odyssey

Allocation outside of regular substance

jabuse distribution formula. The substance

abuse line received a reduction that will

impact this amount.

1

Updated: 11/12/2010

Printed: 11/15^2010 2:44 PM

 

Page 2

FY 2012 Reduction Ideas

(S in thousands)

Sayings Estimate

..% Reduction

Agency Reduction Praposat/Desaiption Gross -<3F/GP t fr current tew Commenis/Discussrbn

DOC

Eliminate IDG to legislative corrections

ombudsman

($250.0}

($250.0)

(100%}

JThis should not be funded from the

Executive branch.

DOC

Eliminate IDG to judiciary for drug courts

($1,000.0);

($1,000.0)

(100%)

:Th!S should not be funded from the

Executive branch.

I Saginaw Chippewa Tribal College

($29.7)

(100%)

University

' North American Indian Tuition Waiver

funding flowing though Central Michigan

j Hi Ed

I

Hi Ed

Hi Eel

Bay Mills Community College

I Michigan Future Farmers of America Assoc.

{$80.0}

($100.0)

($100.0

($80.0}

(100%)

University

North American Indian Tuition Waiver

ijfunding flowing though Lake Superior State

Earmarked

(100%) funding

from Michigan State University

DKS

Eliminate funding for client service and

joutreach programs through multicultural

,| organizations

($1,815.5)

($1,615.5)

(100%)

budget.

GF savings includes TANF funding.

Additional funding contained in the DCH

DHS

i Eliminate funding for Michigan 2-1-1

j information hotline

{$550.0}

($550.0)

(100%)

DHS

Eliminate funding for Conductive Learning

Center at_ Aquinas College

($300.0)1

($300.0)

(100%)

Funding increased by $50,000 in FY11.

DHS

Eliminate funding for coordination of law

enforcement information network with

Bridges

($300.0)

(S300.0)1

(100%)

New fun ding added in FY11.

New funding added in FY11.

DHS

Eliminate funding for contract with University

($200.0).

($200.0)

(100%}

benefits.

! Services include legal assistance for

individuals applying for federal disability

jBiminafc.fpnfflio for Yputhvffle Center in"

DHS

of Detroit-Mercy for legal services

Detroit, serving at-risfcyouth

($100.0):

(S100.0),

{1100%) New funding added in FY11,

DHS

jl Eliminate funding for food assistance

[outreach

($100.0)

(S100.0)|

Funding used to support food assistance

hotiine and other food bank outreach

activities.

Treasury

I Jonn R. Justice program

(S282.1V

S.0...O

Created as a work project with a completion

(100%) date of 9/30/12.

SUBTOTAL - EARMARKS

($17,701.1)

($13,822.2)

2

Updated: 11/12/2010

Printed: 11/15/2010 2:44 PM

 

Page 3

FY 2012 Reduction Idea

(S in thousands)

s

Savin

Agency Reduction Proposal/Description Gross

ELIMINATION OF GRANTS

Com. Cot. : Eliminate At-Risk Student Success ($3,322.7)

Education Eliminate State Aid to Libraries (S9,441.0)|_

($5,750.0

Fire Protection Grants: Eliminate grants that

suppojjJoca! units of governments thai

provide fire protection services for state-

owned buildings. Elimination saves $2.4

million in liquor purchase revolving funds

which lapses to GF, and S8.5 million in

driver responsibility fees, which could be

G redirected to GF throuah leaislative ch

trected to GF through legislative change.; ($10,910.5)

($10,910.5

Liquor Law Enforcement Grants: Eliminate

S6.6 million in liquor license fee grants that

support local police enforcement of state

liquor laws; redirect liquor license fees to

support Liquor Control Commission

operations and free-up like amount of liquor

purchase revolving funds, which lapse to

(Vocational Rehabilitation / Centers for

Independent Living: Eliminate grants

(administered by Michigan Rehabilitation

Services) that support locaiiy-operated

vocational rehabilitation centers and 12

DELEG Centers for Independent Living

Subregional Libraries State Aid: Eliminate

grants that support 12 subregional libraries

for services provided to the blind and

DELEG physically disabled

..($8,6.0.0..

3)

8

P.).i

.8

3

:% Reduction

>fr current law ;•: . Comments/Disrcusst

Funds programs to assist academically a

(100%) risk students

Elimination of state aid to libraries would

jresult in the loss of S5.6 million in federal

funds, which are used to support the

Michigan eLibrary and Michigan eLibrary

(100%) Cataiog.

Statutory change necessary to Motor Vehicle

[Code, which reserves up to $8.5 million in

[driver responsibility fee revenue for fire

[protection grants. {This reduction is treated

(100%) [as GF/GP for purposes of this analysis)

Statutory change necessary to Michigan

iMfi&L-^JMmJ^ - ~

Impacts disabled community and local

community vocational rehabilitation centers

and Centers for Independent Living. Gross

reduction includes loss of federal funds from

{100%) elimination of state match.

(100%) ' impacts 21.3% match for federal Title I

Updated: 11/12/2010

Printed: 11/15/2010 2:44 PM

 

Page 4

Reduction Proposal/Description

ing-Chavez-Parks competitive grants

FY 2012 Reduction ideas

(S in thousands)

Savings Estimate ;

Gross :T . .. " <3RGP

(32,691.5}j

($2,691.5)

(100%)

% Reduction

fr current law Comments/Discussion

Programs purpose is to increase minority

^participation in higher education

iiminate funding for before and after schooi

P

rograms

($3,000.0}

{$3,000.0)

100%

GF savings includes TANF funding.

E

E

o

iimmate mnding for state food banks and

od distribution

($1,345.0}

(100%

GF savings includes TANF funding.

Eliminate Veterans Service Organization

funding

(S3.029.6}

{$3,029.6)1

($1,345.0)1

100%)

S1 million reduction in FY 2010

! Eliminate MSP's portion of auto theft

revenfion grants

($1,413.5)

{$386.5} (100%)

The restricted funding would be reallocated

to other entities that receive grants from trie

Auto Theft Prevention Authority.

Eliminate Secondary Road Patrol grants

(514,037.0}

SO.O i

(100%)

A statute change would be required.

Funding could be designated toward any

other MSP program. The fund is part of the

Justice System Fund.

.Arts & Cultural Program

($2,567.4)

{$1,417.4}

(100%)

Amounts reflect complete elimination.

Treasury

R

JT

evenue Sharing - Cities, Villages,

($292,300.0)

(5292,300.0)

(100%

Constitutional payments would remain. This

reduction is treated as GF/GP for purposes

of this anaiysis.

Revenue Sharing - Counties

($152,000.0)

($152,000.0)

(100%

Savings grow in subsequent years. This

reduction is treated as GF/GP for purposes

Treasury

xemption Program _

of this analysis.

Legislation change would be required.

Program makes payment in December with

{514,520.0}

($14.520.01

(100%)

Current appropriation is $14.5 million.

s

UBTOTAL - GRANTS

($580,525.3)

($501,512.1)

Updated: 11/12/2010

Printed: 11/1572010 2:44 PU

 

Page 5

FY 2012 Reduction Ideas

{$ in thousands)

Savings Estimate % Reduction

Agency Reduction ProposMDescripfion Gross -- \GRGP fr current law Comments/Dis

DELIVERY SYSTEM CHANGES

Agriculture

Depredation Program. Transfer function

(negotiation of compensation with livestock

owner) to the Michigan Department of

Natural Resources and Environment

(MDNRE).

EEirninate general fund suppon for Livestock

(S40.0)

(S4C.0) (100%)

Livestock producer services (investigation,

verification, and compensation) provided at

large by MDNRE.

Agriculture

Transfer several Pesticide and Plant Pest

Management programs to Michigan

Department of Natural Resources and

Environment and consolidate within various

MDNRE divisions. Exploring moving to fee

based programs to offset general fund.

($5,126.9)

($2,850.3) (0%)

Duplicative or very similar to those provided

by MDNRE.

Agriculture

Transfer leadership of Michigan Agriculture

Environmental Assurance Program for

farmers to the Michigan State University

Agricultural Experiment Station. Personnel

adjustment of (5.0) PTEs.

($262.0}

($262.0) (100%)

Included in the Executive Recommendation

'but the FY11 budget partially restores

funding.

DCH

Contract with outside firms to do functions

within state psychiatric hospitals

TBD

TBD

Analysis yet to be completed. Total general

fund spending in state psychiatric and

forensic facilities is nearly $190 million.

Potential annual budget savings could be SO

Billing systems, workers, cleaning, food

preparation. Potential annua! budget

savings could be $0 to $5 million. However,

long term cost avoidance may be achieved.

to,S5.raiiljoR.

DOC

Reinstate Good Time Credits and

Community Residential Programs

<$129,470.3)

($129,470.3): (8%)

See detailed write-up. Savings level shown

is the same as the amount used in the FY11

Executive Recommendation. Would save

roughly 8% of all facility operations costs.

Updated: 11/12/2010

Printed: 11/15/2010 2:44 PM

 

Page 6

i-Y 201 z Reduction Ideas

(S in thousands)

Medium Security Prison j_ ($4,300.0) ($4,300.0)1

: Privatize an 1,600-1,900 bed Minimum or

Reduction Proposal/Description

Savings Estimate % Reduction

Gross GF/GP frcu

Com ments/Discuss ion

ired to outsource.

DHS

increase use of Outstationed Eligibility

workers (Donated funds positions) for

i Hospital, Mental Health and Nursing Home

TBD

tbd!

SO - $5.0 M

DHS

Change eligibility determination system to

privatize components and/or shift

responsibilityto !oca! units of government

tbd:

TBD

SO - $5.0 M

1. Privatize Medicaid only

2. Privatize ALL Eligibility functions

3. Shift Child Support Specialists functions

to FOCs

4. Shift Aduit Community Placements to

Area Agencies on Aging

DHS

from private child placing agencies to the

state

TBD

i In -source foster care and adoption services

TBD

I

TBD:

S5.0 - $20.0 M

High level analyses indicate a savings from

reversing the 2011 budgeted transfer of

it js unclear how large the savings would be

from reversing private agency management

of adoption cases.

Hi Ed

Consolidate all state student financial aid

into a single program

TBD:

1% = $883.2

j dmva* doc

DCH

Resident care aides privatization {$15,300.0)

($15,300.0)

See 10/13/2010_memo to Jacques

Updated: 11/12/2010

Printed: 11/15/2010 2:44 PM

See detailed write-up. Savings level based"

on rough estimate at 10% savings of a single

facility. A threshold of 5% minimum savings

2,600 foster care cases to private agencies;

 

Page 7

FY 2012 Reduction Ideas

(S in thousands)

Reduction Proposal/Description

- aavuigs estimate v« Keguction

.//Gross;-.. GF/GP •> fr currerrt taw Commenfe/Discussion

State Mandate transactions to Web and Mai!

- -Savings Estimate % Reduction

Web transactions cost $2.28 and mail

transactions cost $1.55 to process. Branch

transactions cost $5.47 to complete, if

certain transactions were mandated to the

Web or mail, substantia! savings couid be

achieved. The drawback is most savings

would be achieved in restricted funds not

i general fund. The department would likely 'i

' spread the savings throughout other

($600.0) : (50%) i: programs, but the amount can be achieved.

MSP

I

Locals provide road patrol in iieu of MSP

troopers

Gross amount is based on FY10 analysis,

which is high due to more troopers being on

the payroll in FY10. Also assumes 85% of

I gross savings are GF/GP since FY10

janalysis was not fund sourced.

Approximately S93.1 million GF/GP and '

S 139.2 million in gross funding support At-

Post Troopers. There is the option to

i eliminate the program and provide locals

jfunding through revenue sharing to provide

for local police officers. There are 100

troopers required by statute. (Item is also

iisted as "Reduce At-Post Troopers" under

($30,000.0) ($25.5000) (22%)

"Other Program Reductions"

Updated: 11/12/2010

Pri nted: 11/15/2010 2:44 PM

 

Page 8

FY 2012 Reduction Idea

(S in thousands)

% Reduction

auction Proposal/Description Gross GF/GP fr current law

eduction proposal/Uescrip

Comments/Discussio n

ELIMINATE PROGRAMS AND/OR FUNCTIONS

EEiminate $100 placeholder for Loca!

Agriculture Conservation Districts

($0.1 )j, (S0.1

s

Elimination of Prosecuting Attorneys

Coordinating Council

Optional - Medicaid persona! care services | {514,000.0)1 (S4J4Q.4)

like an appropriate function of AG.

Payment of approx S200/month is paid

directly to providers of Adult Foster Care

Home or Home for the Aged services and is

intended to fund assistance with oersonal

activities of daily living. Higher costs above

[the savings identified couid be incurred in

the fee-for-service program if this service

was eliminated since eiigibles may utilize

more expensive benefits, such as physician

iand nursing facility services.

in-home assistance with activities of daily

Optional - Medicaid adu!t home heip ($293,121.3)j

living. Paid at an hourly rate. Higher costs

above the savings identified could be

service was eliminated since etigibies may

utilize more expensive benefits, such as

¦ physician and nursing facility services.

Optional - Medicaid home and community

DCH

based services

($205,940.5)

($205,940.5)

for nursing home services. Higher costs

could be incurred in the fee-for-service

such as physician and nursing facility

sen/ices.

Placeholder included by legislature in FY11.

Has been mentioned before, though it seems

incurred in the fee-for service program if this

program if this service was eliminated since

eligibles may utilize more expensive benefits

Updated: 11/12/2010

Printed: 11/15/2010 2:44 PM

 

Page 9

FY 2012 Reduction Ideas

{S in thousands)

Savings. Estimate

Reduction Proposal/Description Gross GF/GP

% Reduction

fr current law Comments/Discuss ion

!|Provides managed care medical services to

:elderly eiigibies at capitated rates. This

program is also financed with capitated rates;

from Medicare, further controlling state j

Medicaid costs. Higher costs above the

savings identified could be incurred in the

fee-for-service program if this service was

eliminated since eligibies may utilize more

i expensive benefits, such as physician and

Optional - Medicaid Program of All-inclusive

Care for the Elderly (PACE) ($23,600.0) ($7,991.0) (100%) 1 nursing facility services.

I I Health services to terminally iii Medicaid

DCH

eligible individuals. Higher costs above the

savings identified could be incurred in the

.fee-for-service program if this service was s

¦eliminated since eiigibies may utilize more

i I expensive benefits, such as physician and

DCH ijOptional - Medicaid hospice services ($115,000.0) (538,939.0); (100%) nursing facility services.

i: l

j! Pharmaceutical medications are currently

! ¦ \

provided to Medicaid eligible individuals.

Higher costs above the savings identified

could be incurred in the fee-for service and

managea care programs if this service was

eliminated since eiigibies may utilize

expensive benefits, such as hospital

services. Furthermore, ail states provide a

I IBeaicaiirpfia^

DCH

Optiona[- Medicaid pharmaceutical services::. ($401,414.6) {$116.-695.8) (100%)

ivffcsuicaia pnBimaceiracai Denem. Amount

!|identified does not include health plan

jpharmaceutical costs yet to be determined.

^Though mental'heatth / substance abuse is

an optional category of services, such a cost-

shift, would eliminate ability to leverage

federal dollars to provide services. Impact of'

federal mental health parity requirements on \

ijOptional - Medicaid mental health and

;substance abuse services

the state if program eliminated yet to be

{$2,060,690.4), ($543,023.6) (100%) determined.

Updated: 11/12/2010

Printed: 11/15/2010 2:44 PM

 

Page 10

DCH Optional - Medicaid adult denta!_benefit

Reduction Proposal/Descriptkm

Sayings Estimate -

FY 2012 Reduction Ideas

(S in thousands)

{$19,600.0): {$6,636.5}

SEr Redaction

Gross; i GF/GP - frcurrent law _ Comments/Discussion

] Eliminated in FY09, restored in FY11.

I!could be incurred in the fee-for-service and

ji Higher costs above the savings identified

imanaged care programs if this service was

eliminated since eligibles may utilize more

DCH I, Optional - Medicaid adult podtatric benefit

{$1,200.0) ($406.3)

[expensive benefits, such as hospital service

Eliminated in FY09, restored in FY11.

Higher costs above the savings identified

could be incurred in the fee-for-service and

managed care programs if this service was

eliminated since eligibies may utilize more

expensive benefits, such as hospital j

services.

Optional - Medicaid partial adult optical

services restoration

($2,000.0)1. ($677.2)

j'

(100%)

Eliminated in FY09, partially restored in

FY11. Higher costs above the savings

identified could be incurred in thefee-for-

servtce and managed care programs if this

service was eliminated since eligibles may

utilize more expensive benefits, such as

hospital services.

Tit!e V-oniy non-emergency transportation

for Children's Special Health Care Services

($1,200.0); ($1,200,0)

(100%) ; Eliminated in FY10, restored in FY11.

for Children's Special Health Care Services

($2,000.0} ($2,000.0)

{100%) primarily to treat pituitary conditions.

Title V-oniy coverage for adults (over

with hemophilia or cystic fibrosis in

DCH Children's Special Health Care Services

($16,400.0} ($16,400.0)

Eliminate health care coverage for approx.

.238 hemophiliacs and 167 adults with cystic i:

(100%) fibrosis.

10

Updated: 11/1272010

Printed: 11 i\ 5/2010 2:44 PM

 

Page 11

FY 2012 Reduction Ideas

{S in thousands)

Savings Estimate % Redu ction

Eliminate Bronson Hospital Primary Care

Disproportionate Share Hospifa! payment ($2,025.0};

Agency Reduction Proposal/Description Gross GF/GP ft-current law Comments/biscussion

'' This soecia! DisDronortionatfi Shsrp Hncni

provided by ACCESS, Arab Ameri

($692.7}

This special Disproportionate Share Hospital

(DSH) payment to Branson Methodist

Hospital supports primary care services

Chaldean, the Center for Family Health,

iCherry Street Health Services, Community

Health and Social Services (CHSS),

Hamilton Family Health Center and North

(100%) ' Oakland Medical Center.

DCH Eliminate Background Check progran

($2,162.5)

Program mandated by state law for certain

(100%) longterm care facilities.

|Mentai Health Protection and Advocacy

DCH

; Services Support

(5194.0)

(100%) function mandated by stale taw.

DCH

¦Famiiy Support Subsidy (TANF) ($19,470.5)

so.o

TANF funded program - This need-based

program helps maintain children with severe

cognitive impairments in their homes. A

monthly payment of S222.11 is provided for

just under 7,000 cases. Program

participation is limited to famines with annua!

incomes at or below $60,000.

Mental Heaitn Housing and Support

DCH

($705.6}

GF/GP matches federal funds. Tnese grants

provide housing assistance services to low-

Services

($9,306.8)

($2,243.1)

persons who are disabled, but do not qualify

(100%) ! income, persons with mental illness.

for Social Security and who are residing in a !

residential facility. Most of the funds a re

(100%) idistributed to iocal units of government.

DCH _ Mental Health State Disability Assistance ($2,243.1)

Elimination of these new activities would

allow the state to avoid significant Headlee

Education jlRepeal education reform legislation ($8,977.8) ($3,914.1) (100%) (mandates that have yet to be funded.

Education J Eliminate fundingjor the Library of Michigan ($3,879.2), .{$3,879.2)!- (100%) inaccessible to the public.

Eliminate all staff and make collections

11

Updated: 11/12/2010

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Page 12

,i Reduction Proposal/Description

commission that promotes the employment

of persons with disabilities.

FY 2012 Reduction ideas

(S in thousands)

GF/GP . fr currenfclaw : Comments/Discussion

¦; ¦-¦**?l5»*- ¦¦ -?¦¦ : Results in the layoff of 7.0 FTE positions

Program elimination impacts disabled

($1,190.5): ($412.2); (100%) community

uction Proposal/Description

Disability Concerns Commission: Eliminate

i| Hispanic / Latino Commission: Eliminate

commission that advocates for policies that

assist Spanish-speaking citizens with

education, employment, civil rights, health

jiand housing.

DELEG

Michigan RehabiEitation Services: Elimina

acnieve employment and self-sufficiency.

te

program that helps disabfed individuals

(573,641.4) ($7,379.7)

DELEG

Commission for the Blind: Eliminate

j: university's operations funding

program that helps blind individuals achieve

jiKing-Chavez-Parks funding included in each

($2,494.8), ($2,494.8)

1.100%)

(100%)

Tuition Incentive Program (TIP) phase II

jfunding for junior and senior college years

i Eliminate state disability assistance

;i program.

{$1,247.0} ($1,247.0)

(534,765.0): ($22,486.7)

(100%)

f100%>

ems/lwscussson .-;

($267.3}' ($267.3). (100%)

Results in layoff of 2.0 FTE positions

Program elimination impacts Hispanic /

Latino community.

Results in layoff of 513.5 FTE positions

Michigan would be the only state without a

state rehabilitation office. Program

elimination impacts disabled community and

would result in closure of Michigan Career

and Technical Institute, in Plainwell. Gross

reduction amount includes loss of federal

funds from elimination of state match

General Fund elimination includes $250,000

allocation for baseball field for the disabled

(100%) I (listed separately above).

Results in layoff Of 107.0 FTE positions.

Program elimination impacts biind I disabled

community and results in closure of

Kalamazoo training center and eight regional

offices. Gross reduction amount includes

loss of federal funds from elimination of state

,_,rn_atch.__^,_

Programs purpose is to increase minority

participation in higher education

Provides up to $500 per semester

Would impact over 10,700 individuals with

qualifying disabilities; average monthly grant

269

Updated: 11/12/2010

Printed: 11/15/2010 2:44 PM

 

Page 13

hY 2012 Keductron ideas

(S in thousands)

DHS

Agency

Reduction Proposa!/Descrtption

Elirninate annual clothing allowance for

children on FiP (Family Independence

Program)

Savings Estimate

Gross '¦ ' GF/GP

(312,751.5)' ($12,751.5)

(100%;

% Reduction

fr current law Comments/Discussion

Current cfothing allowance is about $84 per

. chiid; the benefit is paid out in August each

' year, in past years, it has been as low as

$45 per child.

DHS

Eliminate funding for state contracts with

homeless shelters

{S11.646.7)! {36,988.0}

(100%)

Would eliminate state support for homeless

shelters statewide

I DHS

Eliminate payments for indigent burial

($4,209.2) ($3,778.4}

(100%)

Requires change to Social Welfare Act

DMVA

Close Jacobetti Veterans Home

(§8,400.0) ($2,500.0)

(50%)

i Unlikely to gain support. Some of the

displaced veterans could be accommodated

i at Grand Rapids.

DMVA

Special Maintenance - State

{$651.2} {$651.2)

{100%)

Eliminated in FY11 Executive

, Recommendation; Restored by the

Legislature.

DNRE

Turn back the NPDES (National Pollutant

Discharge Elimination System) and Storm

Water program to the EPA

($11,686.5) ($2,248.5)

(100%)

DNRE has authority to implement the federal

programs which are mandated by the Clean !

Water Act. This program addresses

¦ industrial, construction, and municipal

: sources of discharges that adversely affect i

the quality of surface water.

MSF

Jobs for Michigan program - 21st century

ijobs fund

.000.0.)!

{$75,000.0}

(100%)

Reduce ail or part of grants and loans for

business development for fund shift to

^general fund. (This reduction is treated as

GF/GP for purposes of this analysis).

MSP

of duty

Eliminate the Public Safety Officers Benefit

ofj

[police officers or firefighters killed in the line i

100%)

Statutory program that if eliminated would

require a statute change.

MSP

Eliminate Capito! Security Guards {7.0

FTEs)

(£642.9) ($642.9)

{$149.6)i ($149,6)

100%

MSP

Eliminate the Aviation program ;, ($1,495~0)! {$1,443.2

(100%)

MSP

MSP

iunderwater recovery, etc.)

[Eliminate muiti-jurisdictional task

rorces

Eliminate Operational Support (canine unit.

($6,912.2) ($6,537.1)

($8,756.4): "__ ($2,212.5)

(100%)

(100%)

MSP ! Eliminate fire investigations

($1,679.7): ($1,579.

(100%)

13

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Page 14

DTMB j Elimination of Children's Ombudsman

Savings Estimate % Redaction

Agency Reduction Proposal/Description . s " '

FY 2012 Reduction Ideas

{$ in thousands)

Gtos&. . GF/GP fr current law Comments/Discussion

:> . Mentioned before, DHS has indicated in the

I | ipast they could survive without it. Will be

($1,430.0} ($1,430.0)1! (100%) politically controversial.

Swamp and Tax Revetted Lands and

Treasury Commercial Forest Reserve

iAmounts reflect complete elimination. There

are obvious fiscal, political and statutory

considerations associated with ending the

distribution of these funds, which affect

Upper Peninsula counties and Wayne,

(S8.570.41 (S8.570.41 (100%) Oakland and Macomb.

SUBTOTAL - PROGRAMS / FUNCTIONS

Updated: 11/12/2010

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Page 15

FY 2012 Reduction Ideas

(S in thousands)

Reduction Proposal/Description

Savings Estimate -::-

% Reduction '

GR'GP fr current faw CommentsADrscussiort

SIGNIFICANT POLICY CHANGES

Implement a more stringent level of care

determination to limit provision of adult

home help (AHH} services {example: limit

AHH to only those who are nursing home

Policy change. Currently over 40,000 Adult

Home Heaiih workers provide home help

services to approximately 53,700 Medicaid

aged, blind, and disabled persons in

Michigan. Potential savings could be SO to

ii Implement managed care for !ong term care

Medicare / Medicaid dual enrollment in

HMOs

TBD: TBD jS5 million.

Policy change. Arizona, Texas, New York.

jWisconsin, and Minnesota are some of the

states with a managed care mode! In place

; for iong term care. Potential savings could

i be more than $20 million.

Policy change. Could expand PACE

(Program for All-inclusive Care for the

Elderly). Arizona, Wisconsin, and Texas all

i have duals included in their long term care-

imanaged care arrangements. Potential

I savings could be more than $20 million.

implement early adopter of federal health

care reform Medicaid expansion and target

GF savings amount

This proposal would be a policy change prior

to 2014 to end Aduit Benefit Waiver and

expand Medicaid coverage to childless

;adults at 35% of the Federal Poverty Level,

icoverrrrg^^^

S500 million gross program, financed with

' additional hospital provider tax, non-

: Medicaid Community Mental Health funding

and county health program contributions to

match federal funds. Target a GF savings

amount in financing-structure. Potential

savings could be between S5 and $20

Updated: 11/12/201C

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Page 16

FY 2012 Reduction Ideas

($ in thousands)

Gross ;. GF/GP . fr current Jaw CorhntentsJPiscussiort

DCH

Reduction Proposaf/Descri ptloh

Aflow behavtoraf health drugs on preferred

drug list

($18,700.0)

(56,331.8

/Discussion

Statutory change. While this was passed as

part of an FY10 Executive Order, the statute

change was never proposed.

DCH

Repeal drug manufacturer immunity

($1,300.0)

($440.2)

Statutory change.

DCH

Health homes for Medicaid beneficiaries

with chronic illnesses per the Patient

Protection & Affordable Care Act (PPACA)

TBD

TBD

States would receive a 90/10 match for the

first 2 years to create these organizations to

help manage care. The state could then

recognize a savings from managing these

Medicaid eligibies due to anticipated

decrease in utilization. Potential savings

Fee for service payment reforms per the

Patient Protection & Affordable Care Act

DCH i(PPACA)

TBD

TBD

[could be between S5 and S20 million.

Includes bundled payments to hospitals,

value based purchasing for all of fee-for-

service, and accountable care organizations.

Potential savings is $5 million to S20 million.

DCH

Continue poSicy of transitioning Medicaid

eligible individuals from nursing facilities to

lower cost community settings

TBD

instead of receiving services in high-cost

nursing facilities, some individuals can

receive iower-cost home and community

based services in the community. Potential

savings could be between $0 and S5 million.

Continue efforts to move patients from

psychiatric hospitals / centers into

DC H 3 comm unity settings

TBD

TBD

TBD

i

Explore potential to close additional

psychiatric hospitals / centers, if policy to

allow money to follow the person to the

annual long term general rund savings

related to avoiding future economic costs

may be recognized.

DCH

Continue efforts to maximize use of federal

runding to support mental health and

substance abuse

TBD

TBD

Explore increasing the Hospital Rate

Adjustment (HRA), review waiver options,

etc. Potential savings could be between S5

million to 520 million.

DHS

Family Independence Program - t ime limits

(Lifetime limit of 60 months or 5 years).

TBD

TBD

TBD

One time savings of more than $20.0 M;

going savings of S5.0 - $20.0 M

16

Updated: 11/12/2010

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Page 17

FY 2012 Reduction Ideas

(S in thousands)

Count 33.3% of federal Social Security

benefits for-F-amily-independence Program

eligibility; reduce Family Independence

Program benefits.

Agency Reduction Proposal/Description Gross GF/GP

.143.5)

(S16,143.5)

fr current law Comments/Discussion

approximately 10% (grant for family of

% Reduction

Families receiving Family Independence

Program benefits currently do not have to

count the Social Security benefits in

determining eligibility and benefits; this policy1

change would reduce Family Independence

Program benefits for a family of 3 by

(10%} S492; Social Security per person is $674).

DHS

Renegotiate Children's Rights Settlement

DHS ; Agreement

TBD TBD

SUBTOTAL - SIGNIF. POLICY CHANGES

($36,143.5} ($22,915.5)

:$0 -$5.0 M; Settlement renegotiation will

likely require returning to court, as the

settlement monitors and plaintiffs are very

committed to existing settlement.

17

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Page 18

FY 2012 Reduction Ideas

(S in thousands)

Agency Reduction Proposal/Desenpt

PROVIDER RATE REDUCTIONS

Gross- . "<JF/GP fr current Jaw CoTnmtents/Kscussion

DCH

Set adult home help wage at minimum wage

and eliminate FY10 Adult Home Health

wage worker increase

(520,000.0) ($6,772.0)i (7%) J variable wages are paid by county/region.

Michigan's minimum wage is $7.40/hr. In

FYOS, wgge was increased from S7.15to

¦ $7.40 to recognize minimum wage. In FYGS,

it was also given a discretionary increase

from $7.40 to $7.50. In FY10, AHH workers

received a discretionary increase cf SO.SG.'hr,

above trie minimum wage. Currently, |

DCH

Eliminate pharmacy dispensing fee increase

($440.2), (0%) Increase was appropriated in FY09.

DCH

Reduce Medicaid Provider rates

($635,294.2)1 ($188,276.7) (10%)

and a S27 M use tax cost.

8% rate reduction was implemented in FY 10."

This reduction represents a $434 M cross

reduction to medical services, a S202 M

gross reduction to mental heatth services,

DHS

Reduce payments for residential foster care

by $7 per day

Reduction wnnSr! rpHitnp rates vi 9D1

Reduction would reduce rates to 2010 levels.

jA 10% cut would-be $12.0 M Gross, SS.O M

DHS

. Eliminate funding to private agencies for

: licensing foster care relative caregivers

($2,500.0) ($1,200,0) (100%)_ : agreement Funding can be discontinued.

DHS continues to resolve backlog of

licensing required under settlement

DHS

• -E-liraiaate»speGiaii.ze(iJn^e!3eR€!eRt4iv1f!g

services - establish a single rate for Drivate

(10%)

($2,560.6) (3%) GF/GP.

($351.0) (100%) program

Would establish a single independent living

been created in the regular foster care

DHS

Reduce payments for independent living

services - foster care private agency

administration

($81.01: (40%) Reduction would reduce rates to 2009 levels.

SUBTOTAL - PROVIDER RATES

($664,964.6) ($199,681.5):

Updated: 1VI2/2010

18 Printed: 11/15/2010 2:44 PM

 

Page 19

OTHER PROGRAM REDUCTIONS

Savings Estimate

Agency Reduction ProposatfDescrtption

FY 2012 Reduction Ideas

($ in thousands)

% Reduction

Gross . ; GF/GP fr current law

Comments/Discussion ¦¦,

Reduce support for Plant Health and Export

Certification: Dealer sites, field, and

greenhouse grown plant inspections. (4.0)

Agriculture FTEs.

($250.0)1 ($250.0)

(3%)

Included in the Executive Recommendation

but FY11 budget partially restores funding, j

Savings in Right to Farm Program -

technical assistance to farmers for land

application of biosolids and resolving

complaints. Personnel adjustment of {1.0)

FTE.

I

($150.0

} {$150.0}

{30%)

but fully res

he Executive Recommendation

red in FY11 budget

Reduce support for grain inspection

Agriculture program.

(54%)

program in

included in t

u!ly resto

Legislature increased support for the

FY

recommendation would remove the increase.

11 budget. This

Com Col. Operations runding reduction

{$300.0}: ($300.0]

TBD T3D

TBD

Each 1% = 32,925,500

Maximize GF savings from Disproportionate

Share Payments

TBDj

TBD

benefit hosps

!$20 million.

There is a fixed allotment for these

payments. Some benefit the state but most

! health plan partners. This proposal would

!limit or reduce the payments benefitting

providers to increase general fund savings to

the state. Potential savings is $5 million to

tals, including those with county

Reduce Support ror Aging Community,

DCH Nutrition and Volunteer services

($2,560.6)

($2,560.6) ($2,560.6)

. L

(10%)

S2.2 million -

congregate /

other service

equate to $2.

11 is $25.6 million. A 10% cut in FY12 would

affects in-home care,

home delivered meais and

s. Total GF appropriation in FY

6 mil ion.

Reduce support for local health department

operations

($3,393.3), {§3,393.3)

(10%)

General fund

$1.0 million -

S33.9 million,

equate to S3.

reduced in FY 11 by 3% or

total FY 11 GF appropriation is ]

A 10% cut inFY12wouid

4 million. i

19

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Page 20

FY 2012 Reduction ideas

(S in thousands)

DCH

y. ;¦ Agency.:. Reduction Proposai/DescrIptioh

Savings Estimate

Reduce Community Mental Health non- ji

!

Medicaid ($28,227.5)! ($28,227.5):

Gross GF/GP

^Seduction

fr current law

(10%)

General fund support reduced in FY11 by

inearly 2% or $5.4 million - total FY11 GF ]

appropriation is5282.3 million.

DCH

($28,227.5)

Reduce General Fund Supported '!

Community Substance Abuse Spending ($1,429,3)! ($1,429.3)

(10%)

General fund support reduced in FY 11 by

nearly 12% or $1.6 million - total FY11 GF

appropriation is S14.3 million (gross is $83.5

million). Reduction reffects 10% of general

fund support.

DELEG

Welfare-to-Work - Option #1: Eliminate all

; GF used to support weifare-to-work, but

continue program at reduced level with

remaining SSI .7 million in federal funds i

; (mostly TANF). ($15,224.8), (515,224.8)

(18%)

GF reduction impacts TANF maintenance-of-

effort i

support for welfare-to-work activities;

repnontize remaining federal funding for

other purposes. (595,923.8), {515,224.8}!

Weifare-toWork - Option #2: Eliminate all

(100%)

GF reduction impacts TANF maintenance-of-

ieffort. Note that approximately S54.7 M of

the gross reduction on this item would be in

ITANF.

Hi Ed

DELEG

1% = S14(8S2.6

Hi Ed

596,923.8), _ {S15,224.8_

Operatrons funding reduction TBD TBD;

Reduce Tuition Incentive Program (TIP)

tuition funding for state university TIP

student to the average community college

tuition

{$6,400.0)1, {$6,400.0

(70%

Reimbursement would be provided at the

lower community college tuition level which is:

about 30% of public university tuition_ \\

DHS

Count 33.3% of federal Sociai Security

benefits for Family Independence Program

J(FiP) eligibility; reduce FiP benefits (S16,143.5)i ($16,143.5}

(10%}

Families receiving FiP currently do not have

to count the Social Security benefits in

.determining FIP eligibility and benefits; this

pott©y»€rwtge*w&di^edtice-HPi3eri^rs^T"

a family of 3 by approx. 10% {FIP grant for

family of 3 is $492.00; Social Security per

person is $574). ;!

DHS

Reduce employment and training support

seivicesby 10% ($1,120.0) ($1,120.0)

Total program is $11.2 million; reduces

funding for support services like

transportation, clothing, and tools. GF

(10%

savings includes iANF funding.

DHS

Reduce funding for family preservation I

programs by 10% _ _ (55,200.0) ($5,200.0)

(10%) .

Services are not required by Children's

Rights settlement; GF savings induces

TANF funding.

20

Updated; 11/12/2010

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