Budget Supplemental Headed to Governor’s Desk

Senate Bill 608 was unanimously adopted by Conference Committee on Wednesday and passed both chambers by wide margins. It will now head to Governor Rick Snyder’s desk for his signature. The final agreement includes a General Fund allocation of $215 for roads. $100 million will go toward special winter road maintenance and $115 for priority road projects. The Senate had originally proposed using $100 million from the Roads, Risks, and Reserve (RRR) Fund to put toward the special winter road maintenance, but the money in that fund will remain intact for now.

State Representative Wayne Schmidt (R-Traverse City), Chair of the House Transportation and Infrastructure Committee, said he is encouraged by the funding provided in the supplemental. Mr. Schmidt also said he believes the momentum on increased road funding is increasing. Representative Rashida Tlaib (D-Detroit), the Minority Vice Chair of the Committee and member of the Conference Committee that unanimously adopted the measure, said she was pleased with the bipartisan effort but added there was still more work to do. Senator Patrick Colbeck (R-Canton Township) opposed the supplemental on the Senate floor due to its funding of Medicaid expansion, which he believes could have been put toward additional road funding.

HICA

The supplemental did not provide for a solution to the revenue shortfall associated with the Health Insurance Claims Assessment (HICA), but Senator Roger Kahn (R-Saginaw Township), Chair of the Conference Committee and sponsor of the bill, won an amendment that will force the Legislature to choose a date to tackle the issue. Also included in the amendment is a provision allowing the money in the RRR fund to be used for the HICA shortfall if a decision has not been made on a long-term solution within a certain timeframe.

The Senate originally appropriated $115 million to fill the gap, but the House struck the provision from their reported version. The House seeks to include a $25 fee through no-fault reform to help fund HICA, but the Senate would rather address the two issues separately.

Additional Issues

The Hutzel Women’s Hospital in Detroit will receive $10 million, half of what the Senate had originally proposed. The House had completely eliminated funding for Hutzel, but the Conference Committee led to that compromise. While the Regional Transit Authority (RTA) does not appear to be funded, Senator Kahn stated that is not the case. According to Mr. Kahn, RTA funding will be separated into two parts. RTA will receive $900,000 for fiscal years 2013-2014 by “repurposing some of the dollars that already exist,” and $1.1 million in 2014-2015. The bill will also appropriate $170,000 for the Office of New Americans and $13 million for community mental health centers.

posted by PAA Online , Friday, March 14, 2014 11:53 AM
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