Host: Stephan Currie
Guests: Deena Bosworth, Jimmy Johnson and Samantha Gibson of MAC
Topics: A decline in financial estimates for Michigan’s fiscal 2026 and the potential effects on county initiatives led off a wide-ranging episode of MAC’s Podcast 83 this week.
The Consensus Revenue Estimating Conference last week cut back its FY26 General Fund estimate to $15.11 billion, from $15.48 billion in its January report. This move is unlikely to speed up what already has been a slow budget process this year, said Governmental Affairs Director Deena Bosworth.
“The budgets are typically done July 1, but they don’t have to really be done until Oct. 1,” she noted. “So, the Senate is operating at a similar timeline as every other fiscal year, in that they want to get the budgets done by July 1. … The House, though, is waiting. They wanted to wait until this May revenue conference because they didn't know how much money they have to work with. So, they're kind of playing it close to the chest right now. Plus, I think we have to wait and see what happens at the federal level, and Medicaid cuts and other potential cuts coming down to the state. It makes for a strange budget year.”
Bosworth did note a new bit of good news in the Senate’s budget work, a “placeholder” that keeps open Lansing discussions on compensating counties for millions in losses due to tax foreclosure reimbursements.
“The estimates are somewhere around $83 million, so the Senate recognized that. Sen. Jonathan Lindsey led the charge, with Sens. John Cherry, Stephanie Chang and Sarah Anthony. … It opens that up for negotiations with the House as the budget moves forward throughout the process. It's not the whole $83 million that we think we're going to need, but at least it keeps that discussion going.”
On the mental health front, Jimmy Johnson reviewed why MAC has sent a letter to Gov. Gretchen Whitmer about local control of mental health services:
“The way the (Michigan Department of Health and Human Services) is proposing to bid out these PIHP contracts could potentially transfer the management of mental health to private for-profit or nonprofit health plans. By doing that again, we're taking away local control, local input …
“There are higher administrative costs potentially that could come out of this (move),” he added. “There was a study that came out and these private health plans average about 15 percent overhead, compared to just 2 percent for the current PIHP system.”
Host Stephan Currie concluded this week’s episode with a report on a June 17 invitation to the White House for Michigan’s county board chairs:
“The Michigan State Leadership Day is coming up June 17. So, initially the invite is only going out to board chairs. So, if you did receive an email, you can respond to that,” he said. “There's a lot of personal information they require if you are going to RSVP. So, know that going into it, because there's security as you're being invited to the White House.”