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[Sticky] Whitmer's Proposed $ 2 Billion Boost In FY2025 MDHHS Funding

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Joined: 11 months ago
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Michigan Advance has summarized the $ 2 billion increase in FY2025 funding Governor Whitmer will request for the Michigan Department of Health & Human Services:

Whitmer wants a $2B boost for health and human services next year. Where would it go?

A breakdown of the proposed FY 2025 budget from the governor’s office spotlighted various public health provisions:

  • $193.3 million to establish new Certified Community Behavioral Health Clinic sites across the state, which would serve as many as 50,000 additional individuals. 
  • $15.7 million to continue the Healthy Moms, Healthy Babies program which is aimed at supporting new and expectant mothers and addressing racial disparities in infant and maternal mortality.
  • $24 million to provide new funds to communities that identify innovative approaches to support expectant parents and newborns.
  • $1.8 million to support the MIChild, which provides health and dental insurance for uninsured children of working families for $10 a month per family. 
  • $7.3 million for the Michigan Crisis and Access Line to ensure access for individuals experiencing behavioral health crises.


In her newly released budget recommendations for Fiscal Year 2025, Gov. Gretchen Whitmer proposed an additional $1.96 billion in funding for the Michigan Department of Health and Human Services (DHHS), including funding for new behavioral health clinics and continuing support for programs to address racial disparities in health care.

Whitmer’s budget proposal totals $80.7 billion. Should the Legislature adopt Whitmer’s recommendations, DHHS would receive $37.6 billion in funding for FY 2025, compared to the $35.7 billion allocated for the current fiscal year which lasts through Sept. 30.

The FY 2025 budget would also create the Caring for MI Family Tax Credit, which would provide families who care for an aging or sick relative up to $5,000 off their taxes.

Whitmer’s office also highlighted $35 million to implement recommendations from the Coronavirus Task Force on Racial Disparities, including neighborhood health grants, mobile health units and sickle disease support.   

In addition to the provisions spotlighted by Whitmer, her FY 2025 recommendations include a total of $5.1 billion in behavioral health provisions, and $22.1 billion for health services. In FY 2024, $4.79 billion was allocated for behavioral health and $19.3 billion was set aside for health services.

The proposed FY 2025 budget would also boost funding for health services under the Healthy Michigan Plan, which provides low-cost health care services to qualified Michiganders ages 19 through 64. 

The current FY 2024 budget allocates just over $1 million for the administration of the program, as well as $590 million for behavioral health services and $5.32 billion for health services. Whitmer’s proposed FY 2025 budget would provide an additional $30,200 for administration, while allocating $535 million for behavioral health and $6.35 billion for health services. 

The proposed FY 2025 DHHS budget also includes more than $160 million for community services and outreach and $756 million for local office operations and support services.

It would also provide more than $273 million to local health and administrative services, including $110 million supporting 79.5 full-time equivalent jobs in AIDS testing, prevention and care programs; $15.9 million funding 18 full-time equivalent positions in cancer prevention and control; $8.55 million supporting 20 full-time equivalent positions for sexually transmitted disease control; and $76.4 million for essential local public health services. 

Whitmer’s FY 2025 budget proposal also includes $2.34 million to monitor blood lead levels in children and reduce the number of children in the state with elevated levels of lead in their blood. 

In a statement, Caring Across Generations — a coalition of more than 100 local, state and national organizations focused on supporting caregivers, care recipients and their families — praised the budget’s focus on aging, disability care, and child care workforce support. 

Jaimie K. Worker, the group’s director of public policy, spotlighted the Caring for MI Family Tax Credit, as well as the establishment of the Home Health Care Public Authority. Once established the authority would provide supportive services — including program orientation, training and patient matching services for home health care workers — to Medicaid enrollees accessing eligible community-based supports, their families, and the people who serve them. 

While Worker also applauded Whitmer’s proposed increases to funding for childcare providers and financial assistance for child care workers to offset child care costs for their own children, she urged action on these proposals from the governor and the Legislature.

These proposed investments mark significant progress for Michigan’s caregivers and those they support. It’s a step in the right direction, yet it’s crucial that proposals become actions,” Worker said.

Prominent Member
Joined: 11 months ago
Posts: 399
Topic starter  

Governor Whitmer's FY2025/26 Executive Budget is posted here:

The MDHHS department detail begins on page B-33.

Abigail Nobel
Member Admin
Joined: 3 years ago
Posts: 484

@10x25mm, thank you for taking the budget plunge with this post, and kudos to Michigan Advance for the article.

Frankly, Michigan budgets in general and MDHHS budgets in particular make me want to cover my eyes and run screaming for the hills. 

Last year's pork-laden budget bill was over 800 pages long. One could take a deep dive, and seriously risk death by drowning before making it back to the surface.

I suppose it's only fitting that the first department rushing to support the governor's budget is the Cannabis Regulatory Agency (CRA). Their presser released February 15.

Press Release: Executive Director Hanna Applauds Governor Whitmer’s FY25 Budget Recommendation
To: CRA Stakeholders

LANSING, MI – Today, Cannabis Regulatory Agency (CRA) Executive Director Brian Hanna applauded Governor Gretchen Whitmer’s Fiscal Year (FY) 2025 Executive Budget Recommendation, which includes additional support for the agency’s initiatives.

This year’s budget is balanced, fiscally responsible, does not raise taxes on Michiganders, and contains support for key CRA initiatives, including:

Eliminating the monthly subscription fees that licensees currently pay to access the statewide monitoring system
Increased support to combat illicit activity in the cannabis market
Improved enforcement efforts and workload management within the Licensing Division
Reducing wait times for fire safety inspections
“We are excited to continue moving forward with support for our key initiatives, which stakeholders have indicated are important for a thriving and growing cannabis market,” said Hanna. “By removing the burden and cost of the monthly subscription to the statewide monitoring system, the CRA is investing in the stability and long-term success of the legal market. Increased support for combating illicit activity, improving enforcement efforts, and increasing safety with fire inspections will help us continue to support our state’s licensed businesses.”

“We applaud Governor Whitmer for putting forward a comprehensive budget for our program that will address a number of urgent requests from our members,” said Robin Schneider, executive director of the Michigan Cannabis Industry Association (MiCIA). “The budget contains several important allocations that will increase safety, reduce businesses’ regulatory costs, and increase profitability for law abiding operators by increasing enforcement against illicit activity in our market. As we work toward the continued improvement of our industry, we appreciate the Michigan Cannabis Regulatory Agency’s willingness to listen to our concerns and take action to address them.”

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Ups and adds take the proposed Certified Community Behavioral Health Clinics funding to about $ 250 million:

Nearly $250 million included in FY25 budget to expand access to behavioral health services for Michigan families

Over $193 million in funding for Certified Community Behavioral Health Clinics

LANSING, Mich. – As part of the state’s continued commitment to expanding access to behavioral health services for Michigan families, Gov. Gretchen Whitmer’s FY2025 budget proposal includes $193.3 million to strengthen Michigan’s Certified Community Behavioral Health Clinics (CCBHC) demonstration program.

Funds will be used to expand the number of CCBHC sites and establish more robust support, as well as oversight and monitoring, for Michigan’s Medicaid CCBHC demonstration. CCBHCs are non-profit or local government agencies that are federally required to provide nine comprehensive behavioral health services, including 24/7 mobile crisis response and medication-assisted treatment for substance use disorders. 

Michigan Department of Health and Human Services (MDHHS) Director Elizabeth Hertel visited with Network 180, a Community Mental Health Authority that includes a CCBHC site in Kent County, Thursday, Feb. 22.

 “The CCBHC model increases access to numerous behavioral health services by serving all individuals with a behavioral health diagnosis, regardless of insurance or ability to pay,” said Elizabeth Hertel, MDHHS director. “The CCBHC model has been shown to substantially increase access to care, advance the coordination of physical and behavioral health, strengthen community partnerships, address health inequities and improve the quality of behavioral health services.”

The FY25 budget proposal will support expanded access to behavioral health supports and services for up to 50,000 additional Michigan residents. There are currently 30 CCBHCs in Michigan’s Medicaid demonstration project, as well as several additional provider organizations currently receiving federal grant funding to establish clinics and provide CCBHC services.

In FY23, 13 Medicaid-funded CCBHCs provided services to approximately 75,000 unique individuals across Michigan. Approximately 30% of individuals served were children and young adults ages 0 to 21 and 70% were adults.

Additional budget recommendations include funding to increase access to behavioral health services through direct program capacity enhancements, a managed care rate increase for behavioral health services, incentives to build a pipeline of qualified providers and ongoing resource support for people experiencing behavioral health crises.

  • $36.1 million to increase rates for behavioral health services provided through Medicaid health plans.
  • $8.3 million to establish Medicaid reimbursement for peer provided substance use disorder services.
  • $7.3 million for the Michigan Crisis and Access Line to ensure structural ongoing support for services currently provided to individuals experiencing behavioral health crises.
  • $4 million to enhance gambling prevention and treatment services including residential gambling treatment, recovery support services, youth education and prevention services, research and evaluation, provider training, a media campaign and the problem gambling hotline.



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