Michigan House Committee Sparks Debate by Cutting Unused Budget Funds
In an unprecedented move, the Michigan House Appropriations Committee has decided to retract approximately $645 million in unspent funds from the previous state budget. This decision, led by Committee Chair Ann Bollin, has sparked significant debate and concern among state lawmakers and funding recipients.
Typically, funds that are not utilized within the fiscal year are carried over into what is known as work projects. However, the Republican-controlled committee recently exercised a rarely used provision of the state Management and Budget Act to block this funding without requiring Senate approval or the governor’s signature. This maneuver caught many by surprise, causing confusion and frustration.
Ann Bollin defended the committee’s action during her appearance on WKAR’s Off the Record, stating that reviewing and potentially halting wasteful past projects is part of their budgetary oversight responsibilities. “Just because it’s never done before, doesn’t mean it’s not our responsibility to do that,” Bollin remarked.
Despite not consulting stakeholders prior to the vote, Bollin asserted that departments should have been prepared for such outcomes, given the one-year appropriation nature of these funds. “Departments, when entering into these contracts, know it is a one-year appropriation, why would they not put people on notice?” she questioned.
The decision affected a wide range of projects, as reported by the Michigan Department of Technology, Management, and Budget. These projects varied from environmental efforts to support programs like wigs for children with cancer. Notably, over 160 community-centric initiatives lost a total of around $100 million, encompassing entities such as zoos, stadiums, and winter sports venues. WDET Detroit Public Radio, part of the Michigan Public Radio Network, also had its $1 million grant revoked.
One of the significantly impacted programs is Rx Kids, which provides financial assistance to pregnant women and new mothers in economically disadvantaged areas. This initiative, supported by bipartisan lawmakers, originally began in Flint and is expanding to other regions. Dr. Mona Hanna, the founder, expressed the challenges faced due to the loss of funds, emphasizing the essential role the assistance played for families in need.
Dr. Hanna explained the delay in utilizing the allocated funds, which stemmed from contracting issues that only resolved by the summer, leaving the organization with insufficient time to expend $20 million before the fiscal year ended in September. “So, we were kind of fronting money for all of 2025 until we got that signed contract. And then the end of the fiscal year is the end of September. So that gave us a matter of three or four months to spend $20 million. That wasn’t possible,” she elaborated.
While Rx Kids has a new $250 million budget allocation to support future endeavors, the organization is still awaiting access to these funds. “I’m hoping that it will be available soon. And we’re hoping that that could kind of be the bridge, but that’s not something that is in our hands right now,” Hanna noted.
There is a possibility that funding for other projects could be reinstated through future legislative measures. However, House Speaker Matt Hall (R-Richland Township) recently suggested that increased scrutiny might deter some programs from pursuing funding restoration.
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