Michigan 2013 Budget Priorities For Detroit

When looking at a supplemental state budget one must understand there are reasons behind a last minute vote.  My concerns are always focused on the costs and benefits.

This is my analysis on what I consider as its key aspects.

The Medicaid and welfare appropriations are being adjusted and transferred to programs instead of direct welfare payments that Shanelle wants to fund.  The case is in the COA and is looking to see if Maura Corrigan as Director has the authority to make rules on how long a person can collect.  By sending the Medicaid and Block Grant money to programs, the cost reimbursement participation rate decreases for the state, meaning they get more money back, and with the new "Medicaid gaming laws", the state can tax per service (1%) as opposed to tax on provider at (6%) annually, maximizing revenue. Service subsidies over direct cash payments creates cushions.  This  means when poverty or rather reliance upon social subsidies is high the state will take action to stop the losses of nonproductivity by creating an economic cushion of investing in programs to help people become productive as in employment which in turn generates, at minimum, an immediately new tax base.

Some of the Detroit jobs programs will be geared for small business manufacturing, mostly low skill/no skill under mental health, which is Medicaid, to meet the needs of the Detroit population.  Under certain Medicaid programs dealing with youth, cost reimbursements are authorized outside of appropriations and are uncapped. 

Quintessentially, this is a funding opportunity for the City of Detroit under the consent agreement.

It is not known how the national mortgage foreclosure settlement funds were distributed but it must be noted that there were lawmakers who urged the state to wait for larger settlement.  The DOJ has preserved its criminal claims against the banks in relation to mortgage fraud and there will be more lucrative settlements down the road for Michigan citizens.

Amendment offered by Rep. Shanelle Jackson (D) on June 14, 2012, to add $30 million to cover extra welfare payments related to a lawsuit challenging the state's authority to impose shorter limits on how longa a person can collect welfare. The amendment failed by voice vote in the House on June 14, 2012. Amendment offered by Rep. Rashida Tlaib (D) on June 14, 2012, to require any new Detroit River bridge project to pay "commmunity benefits" to various entities in the area near the bridge. The amendment failed by voice vote in the House on June 14, 2012.

Passed 79 to 31 in the House on June 14, 2012, to appropriate additional funds for various state departments and programs, and revise previously approved Medicaid and welfare appropriations downward to reflect reduced caseloads. Among new spending authorized by the bill is $2 million for government jobs programs in Detroit and some other cities, $9 million for specific environmental cleanup projects, $3.5 million to fight recent U.P. fires and more. $15 million for the crop loss subsidies proposed by House Bill 5717 is authorized but not actually appropriated. The bill also allocates $97 million from a national mortgage foreclosure legal settlement to various spending. 

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