Agreement Reached on FY14 State Budget Supplemental
Friday, March 14, 2014
This week the Conference Committee that was appointed to resolve differences between the House and Senate versions of the Fiscal Year 2014 supplemental appropriations bill passed a final bill out of committee, which was then approved by both houses.
Supplemental appropriations bills are passed each year to make mid-year corrections to various budgets and allocate funds to priorities or projects demanding attention. This year's supplemental allocates over $200 million to road projects. What it does NOT do is fix the hole in the Michigan Department of Community Health budget created by an overestimation of the revenue that was to be raised through a Health Insurance Claims Assessment (HICA) passed last year. The assessment is falling about $115 million short.
An amendment to the supplemental passed that requires the shortfall to be fixed by September 2014 OR $115 million in the Roads Risks and Reserves (RRR) Fund will go toward it automatically. It is expected that some solution will be found before that happens. The bill now heads to Governor Snyder for his signature.
Click here to read the Governor's statement on the supplemental, in which he highlights that it ensures "more than 52,000 residents will be able to keep receiving mental health services."