In Michigan
9:22 am
Mon May 4, 2009

MI budget cuts to be outlined

East Lansing, MI – East Lansing, MI (MPRN) - Governor Granholm's budget officials will outline more than $300 million dollars in cuts to legislative committees Tuesday.

It's a first step toward balancing a budget that's facing a $1.3 billion dollar deficit.

The cuts would be even bigger, except the governor apparently intends to use Michigan's federal stimulus money to cover most of the shortfall.

But groups are already mobilizing to fight cuts that appear to include a 4% rollback in Medicaid reimbursements to health care providers.

The state cannot cut people from the health insurance program. But it can reduce payments.

Doctor Michael Sandler is with the Michigan State Medical Society.

He says that will force many providers to turn away new Medicaid patients.

Reduced payments to local governments, employee furloughs, and laying off state troopers could also be part of the plan.