Podcast 83

Podcast 83 Special: FY25 State Budget Propsoal


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Counties would see significant investments in key needs

under Gov. Gretchen Whitmer’s fiscal 2025 state budget, MAC’s Podcast 83 team noted in a new episode.

However, new dollars for revenue sharing, juvenile justice

and health care for some jail inmates still have to get through the legislative budget process, never a sure thing said team members.

Whitmer calls for $281.2 million for county revenue sharing,

with increases set in a mix of unrestricted and restricted formats. If
approved, this amount would represent a $26 million boost from the FY24 baseline amount.

Governmental Affairs Director Deena Bosworth cautioned that

this amount is the starting point of budget talks. “We have to watch it through the entire process very, very closely,” she said.

The governor’s plan also did not reference the creation of a

dedicated and secured Revenue Sharing Trust Fund, a MAC priority for 2024, but Bosworth said the progress made last year in the Legislature on that issue is a good sign for eventual passage.

“We're starting to see some decent sized growth right now,”

Bosworth said. “But we went back and looked at where county revenue sharing was in 2001. It was $228 million. This year, the recommendation, including the one-time funds as $281 million. If we just kept up with inflation (from 2001), we would be over $400 million for counties across the state.”

On the juvenile front, Samantha Gibson said, “We've discussed at length, especially on this podcast, the juvenile justice bed shortage crisis. In (this budget), we do see some significant funding suggestions to go towards resolving that bed shortage. There's $38 million to kind of reconfigure how the (state) contracts with child caring institutions.”

Whitmer’s plans in the criminal justice sphere include a

$30.5 million allotment to cover health services for jail inmates slated for release who would otherwise be eligible for federal Medicaid coverage. This amount would be in service of a state effort to get a so-called Section 1115 Re-entry Waiver from the federal government to relieve counties of health care costs they now bear due to the Medicaid Inmate Exclusion Policy.

Reform of that policy is a MAC priority for 2024, Gibson

noted.

MAC was also pleased to see a $15 million allotment for stormwater improvements, said Madeline Fata.

Whitmer also seeks a 1,289 percent increase in the tipping

fees to place waste in landfills, moving it from 36 cents to $5 per ton. “Gov. (Rick) Snyder recommended something similar back in 2018,” Fata said, “and he wasn't able to get it across the finish line. With that increase, it would bring us up to par with other Midwestern states, as Michigan is currently the lowest with tipping fees.

 

“It would then deter out-of-state dumping, which is a problem that Michigan faces,” Fata added. “MAC does support mechanisms to deter out-of-state waste. Ultimately (the proposed increase) would generate about $80 million annually.”

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Podcast 83By Derek