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 Governor	
  Yersy	
  Yersinian	
  
P.O.	
  Box	
  30013	
  
Lansing,	
  MI	
  48909	
  
Phone	
  517.373.3400	
  
Fax	
  517.335.6863	
  
www.michigan.gov	
  
	
  
MEMORANDUM	
  
TO:	
  	
  The	
  Honorable	
  Governor	
  Yersy	
  Yersinian	
  	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  P.O.	
  Box	
  30013	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  Lansing,	
  MI	
  48909	
  
FROM:	
  Curtis	
  Healy	
  	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  P.O.	
  Box	
  30013	
  	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Lansing,	
  MI	
  48909	
  	
  
DATE:	
  June	
  3rd
,	
  2015	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
  	
  
	
  
RE:	
  	
   State	
  of	
  Michigan	
  Health	
  Department	
  Budget	
  Cuts	
  
__________________________________________________________________________________________________	
  
	
  
Governor	
  Yersy	
  Yersinian,	
  
	
  
In	
  my	
  professional	
  opinion,	
  the	
  goal	
  of	
  this	
  budget	
  committee	
  and	
  our	
  criteria	
  to	
  follow	
  was	
  to	
  do	
  the	
  least	
  harm	
  
within	
   our	
   rural	
   Midwestern	
   state	
   in	
   regards	
   to	
   the	
   upcoming	
   budget	
   cuts	
   from	
   the	
   State	
   of	
   Michigan’s	
   Health	
  
Department	
  budget.	
  The	
  role	
  of	
  government	
  is	
  difficult	
  at	
  times	
  and	
  the	
  committee	
  and	
  myself	
  recognize	
  that,	
  but	
  the	
  
concern	
  and	
  our	
  duties	
  are	
  to	
  the	
  people	
  of	
  the	
  great	
  state	
  of	
  Michigan.	
  We	
  are	
  all	
  public	
  servants,	
  aiming	
  to	
  assure	
  our	
  
constituents	
  and	
  fellow	
  Michiganders	
  that	
  their	
  daily	
  life	
  will	
  not	
  be	
  plagued	
  with	
  health	
  issues,	
  monetary	
  shortcomings,	
  
and	
  mental	
  downfalls.	
  We	
  aim	
  to	
  serve	
  the	
  people	
  and	
  prevent	
  the	
  negative	
  aspects	
  of	
  this	
  world	
  that	
  take	
  away	
  from	
  
the	
  beauty	
  of	
  life.	
  With	
  that	
  said,	
  I	
  have	
  a	
  more	
  expansive	
  view	
  of	
  our	
  government	
  as	
  well	
  as	
  the	
  “do	
  the	
  least	
  harm”	
  
mentality,	
  thus	
  I	
  understand	
  why	
  political	
  pragmatism	
  is	
  always	
  important.	
  But	
  the	
  political	
  feasibility	
  was	
  lower	
  on	
  my	
  
criteria	
  scale	
  for	
  coming	
  to	
  this	
  decision.	
  Thusly,	
  I	
  am	
  saddened	
  to	
  transmit,	
  on	
  behalf	
  of	
  my	
  senior	
  leadership	
  and	
  staff	
  
at	
   the	
   State	
   of	
   Michigan’s	
   Health	
   Department,	
   that	
   the	
   final	
   results	
   and	
   complete	
   findings	
   from	
   countless	
   budget	
  
meetings	
  have	
  been	
  completed	
  and	
  yield	
  results	
  for	
  your	
  review.	
  I	
  have	
  spent	
  time	
  consulting	
  with	
  members	
  of	
  my	
  staff,	
  
and	
   reviewing	
   all	
   pertinent	
   documents	
   prior	
   to	
   coming	
   to	
   a	
   final	
   decision	
   based	
   on	
   their	
   recommendations	
   and	
  
perspectives.	
  As	
  I	
  am	
  in	
  agreement	
  with	
  the	
  proposed	
  initial	
  cuts	
  proposed	
  by	
  my	
  staff	
  and	
  senior	
  leadership	
  in	
  Table	
  1,	
  I	
  
have	
  included	
  those	
  items	
  below.	
  My	
  reasoning	
  is	
  that	
  they	
  followed	
  my	
  least	
  harm	
  done	
  criteria	
  with	
  low	
  regard	
  for	
  
political	
  feasibility.	
  I	
  respectfully	
  request	
  your	
  consideration	
  in	
  regard	
  to	
  proposed	
  budget	
  cuts	
  for	
  the	
  period	
  of	
  FY	
  2014-­‐
15.	
  The	
  specific	
  budget	
  cuts	
  that	
  the	
  budget	
  committee	
  has	
  proposed	
  to	
  make	
  following	
  key	
  findings	
  in	
  our	
  report	
  are	
  as	
  
follows	
  (which	
  includes	
  the	
  budget	
  cuts	
  I	
  have	
  suggested):	
  
Department	
  /	
  Program	
   State	
  Tax	
  Revenue	
   Portion	
  not	
  Expended	
   Initial	
  Staff	
  Cuts	
   Final	
  Cuts	
  
WIC	
  Program	
   $2,000,000	
   $1,000,000	
   $175,000	
   $300,000	
  
Hospital	
  &	
  Nursing	
  Home	
  Inspection	
  
Program	
  
$500,000	
   $250,000	
   $90,000	
   $90,000	
  
Food	
  Safety	
  Inspections/	
  Regulations	
   $550,000	
   $275,000	
   $10,000	
   $10,000	
  
Health	
  Education	
  /	
  Promotion	
  Programs	
   $3,000,000	
   $1,500,000	
   $300,000	
   $300,000	
  
Commissioner’s	
  Office	
   $1,415,000	
   $707,500	
   $250,000	
   $250,000	
  
Migrant	
  Health	
  Clinics	
   $150,000	
   $75,000	
   $75,000	
   $75,000	
  
Family	
  Planning	
   $65,000	
   $32,500	
   ?	
   $32,500	
  
Communicable	
  Disease	
  Control	
  and	
  Vital	
  
Records	
  
$2,500,000	
   $1,250,000	
   $30,000	
   $50,000	
  
Primary	
  Care	
   $1,200,000	
   $600,000	
   $30,000	
   $30,000	
  
Local	
  Health	
  Department	
  Liaison	
  Services	
   $1,500,000	
   $750,000	
   ?	
   $450,000	
  
Arthritis	
  Prevention	
  Program	
   $1,800,000	
   $900,000	
   ?	
   $600,000	
  
Oral	
  Health	
   $500,000	
   $250,000	
   $40,000	
   $100,000	
  
Other	
  Misc.	
  Programs	
  (First	
  Lady’s	
  State	
   $130,000	
   $130,000	
   ?	
   $30,000	
  
 Governor	
  Yersy	
  Yersinian	
  
P.O.	
  Box	
  30013	
  
Lansing,	
  MI	
  48909	
  
Phone	
  517.373.3400	
  
Fax	
  517.335.6863	
  
www.michigan.gov	
  
	
  
Autism	
  Project)	
  
Totals:	
   $15,310,000	
   $7,720,000	
   $1,000,000	
   $2,317,500	
  
My	
  addition	
  to	
  the	
  proposal	
  above	
  was	
  to	
  build	
  on	
  the	
  already	
  proposed	
  cuts	
  as	
  well	
  as	
  to	
  create	
  additional	
  cuts.	
  
These	
  additional	
  cuts	
  came	
  in	
  the	
  areas	
  highlighted	
  in	
  yellow.	
  These	
  cuts	
  totaled	
  out	
  to	
  $525,000.	
  The	
  budgets	
  that	
  were	
  
left	
  blank	
  following	
  the	
  initial	
  cuts	
  that	
  received	
  cuts	
  upon	
  my	
  review	
  are	
  highlighted	
  in	
  green.	
  These	
  cuts	
  totaled	
  out	
  to	
  
$1,112,500.	
  Due	
  to	
  the	
  additional	
  $17,500	
  of	
  additional	
  cuts,	
  the	
  budget	
  has	
  some	
  wiggle	
  room	
  to	
  be	
  able	
  to	
  aid	
  the	
  
First	
  Lady’s	
  State	
  Autism	
  Project	
  or	
  other	
  budgets	
  that	
  are	
  in	
  dire	
  need.	
  This	
  additional	
  cut	
  was	
  to	
  have	
  a	
  discretionary	
  
budget	
  to	
  help	
  curb	
  the	
  impact	
  of	
  the	
  budget	
  cuts	
  and	
  their	
  potential	
  negative	
  side	
  effects.	
  	
  
	
  	
  
My	
   framework	
   and	
   approach	
   for	
   deciding	
   how	
   to	
   allocate	
   the	
   budget	
   cuts	
   were	
   keeping	
   full	
   funding	
   in	
  
important	
  health	
  topic	
  areas	
  and	
  cutting	
  all	
  non-­‐essential	
  programs	
  and	
  administrative	
  /	
  marketing	
  costs.	
  The	
  mentality	
  
of	
  doing	
  “the	
  least	
  harm”	
  is	
  what	
  I	
  attempted	
  to	
  follow	
  in	
  order	
  to	
  assure	
  my	
  staff	
  and	
  senior	
  leadership	
  that	
  the	
  gap	
  in	
  
services	
   provided	
   will	
   be	
   the	
   smallest	
   and	
   the	
   magnitude	
   of	
   the	
   consequences	
   the	
   least.	
   This	
   criteria	
   was	
   more	
  
important	
  to	
  me	
  than	
  just	
  political	
  feasibility	
  and	
  ease	
  of	
  cuts	
  to	
  be	
  made	
  (such	
  as	
  administrative	
  and	
  review	
  board	
  for	
  
hospital	
   certification	
   and	
   local	
   restaurant	
   inspections).	
   Another	
   aspect	
   to	
   consider	
   was	
   the	
   political	
   pragmatism	
   of	
  
cutting	
   the	
   Arthritis	
   Prevention	
   Program,	
   which	
   already	
   has	
   state	
   medical	
   university	
   funding	
   and	
   political	
   friends	
   in	
  
Congress.	
  
	
  
Our	
   overall	
   proposed	
   solution	
   for	
   these	
   large	
   proposed	
   budget	
   cuts	
   comes	
   from	
   further	
   review	
   and	
   logical	
  
reasoning	
  for	
  cutting	
  these	
  particular	
  budgets.	
  The	
  reasoning	
  for	
  each	
  budget	
  cut	
  is	
  listed	
  in	
  itemized	
  form	
  below:	
  
1. WIC	
  Program:	
  $300,000	
  (30%	
  cut)	
  
a. Cut	
  due	
  to	
  less	
  need	
  for	
  marketing	
  to	
  women	
  and	
  having	
  the	
  ability	
  to	
  advertise	
  through	
  different	
  
channels	
  (churches,	
  groups,	
  current	
  users	
  of	
  program).	
  
2. Hospital	
  &	
  Nursing	
  Home	
  Inspection	
  Program:	
  $90,000	
  (36%	
  cut)	
  
a. Cut	
  the	
  reimbursements	
  for	
  traveling	
  and	
  lodging	
  of	
  inspectors	
  &	
  administrative	
  costs	
  of	
  non-­‐vital	
  
furniture	
  and	
  equipment.	
  
3. Food	
  Safety	
  Inspections/	
  Regulations:	
  $10,000	
  (36%	
  cut)	
  
a. Cut	
  due	
  to	
  administrative	
  costs	
  of	
  non-­‐vital	
  furniture	
  and	
  equipment.	
  
4. Health	
  Education	
  /	
  Promotion	
  Programs:	
  $300,000	
  (20%	
  cut)	
  
a. Cut	
  due	
  to	
  less	
  need	
  for	
  marketing	
  and	
  administrative	
  costs	
  of	
  non-­‐vital	
  furniture	
  /equipment.	
  
5. Commissioner’s	
  Office:	
  $250,000	
  (35%	
  cut)	
  
a. Cut	
  due	
  to	
  less	
  need	
  for	
  marketing	
  and	
  administrative	
  costs	
  of	
  non-­‐vital	
  furniture	
  /equipment.	
  
6. Migrant	
  Health	
  Clinics:	
  $75,000	
  (100%	
  cut)	
  
a. Cut	
  due	
  to	
  the	
  ability	
  to	
  advertise	
  through	
  different	
  channels	
  (churches,	
  groups,	
  patients,	
  etc.)	
  
7. Family	
  Planning:	
  $32,500	
  (100%	
  cut)	
  
a. Cut	
  due	
  to	
  lack	
  of	
  traction	
  with	
  the	
  Male	
  target	
  population	
  (results	
  negligible).	
  
8. Communicable	
  Disease	
  Control	
  and	
  Vital	
  Records:	
  $50,000	
  (4%	
  cut)	
  
a. Cut	
  due	
  to	
  need	
  to	
  cut	
  from	
  another	
  budget	
  without	
  crippling	
  another	
  program	
  or	
  department.	
  
9. Primary	
  Care:	
  $30,000	
  (5%	
  cut)	
  
a. Cut	
  due	
  to	
  need	
  to	
  cut	
  from	
  another	
  budget	
  without	
  crippling	
  another	
  program	
  or	
  department.	
  
10. Local	
  Health	
  Department	
  Liaison	
  Services:	
  $450,000	
  (60%	
  cut)	
  
a. Cut	
  due	
  to	
  local	
  health	
  departments	
  being	
  able	
  to	
  alter	
  their	
  own	
  fees.	
  
11. Arthritis	
  Prevention	
  Program:	
  $600,000	
  (67%	
  cut)	
  
a. Cut	
  due	
  to	
  the	
  lack	
  of	
  cohesion	
  of	
  this	
  program	
  with	
  the	
  department’s	
  mission,	
  kept	
  due	
  to	
  political	
  
ties.	
  
12. Oral	
  Health:	
  $100,000	
  (40%	
  cut)	
  
a. Cut	
  due	
  to	
  this	
  being	
  a	
  newer	
  program	
  and	
  less	
  field-­‐tested.	
  
 Governor	
  Yersy	
  Yersinian	
  
P.O.	
  Box	
  30013	
  
Lansing,	
  MI	
  48909	
  
Phone	
  517.373.3400	
  
Fax	
  517.335.6863	
  
www.michigan.gov	
  
	
  
13. Other	
  Misc.	
  Programs-­‐	
  First	
  Lady’s	
  State	
  Autism	
  Project:	
  $30,000	
  (23%	
  cut)	
  
a. Cut	
  due	
  to	
  this	
  being	
  the	
  first	
  year	
  of	
  the	
  program.	
  
	
  
After	
  final	
  review,	
  the	
  budget	
  committee	
  has	
  discovered	
  that	
  the	
  proposed	
  budget	
  cuts	
  and	
  reasoning	
  for	
  those	
  
cuts	
  above	
  are	
  stout	
  and	
  resilient	
  to	
  all	
  harassment	
  by	
  both	
  the	
  public	
  opinion	
  and	
  the	
  political	
  opposition.	
  	
  	
  
	
  
The	
  impact	
  of	
  the	
  proposed	
  budget	
  cuts	
  could	
  be	
  detrimental	
  in	
  various	
  health	
  topic	
  areas	
  and	
  political	
  areas	
  for	
  
your	
  administration.	
  The	
  budget	
  committee	
  and	
  myself	
  have	
  delved	
  into	
  this	
  and	
  discovered	
  that	
  the	
  areas	
  of	
  highest	
  
impact	
  are	
  as	
  follows:	
  
1. Short	
  term	
  damage	
  to	
  knowledge	
  of	
  programs	
  provided	
  by	
  the	
  Department	
  of	
  Health	
  &	
  the	
  WIC	
  Program	
  
2. Long	
  term	
  damage	
  to	
  Arthritis	
  Prevention	
  Program,	
  LHD	
  relations	
  &	
  capabilities	
  
3. Loss	
  of	
  internal	
  political	
  support	
  due	
  to	
  cutting	
  funds	
  from	
  the	
  Arthritis	
  Prevention	
  Program	
  
4. Overall	
  loss	
  of	
  political	
  support	
  due	
  to	
  cuts	
  being	
  made	
  and	
  lack	
  of	
  state	
  tax	
  revenue	
  to	
  supplement	
  the	
  
budget	
  and	
  lowered	
  overall	
  employee	
  morale	
  due	
  to	
  distrust	
  for	
  administration	
  
	
  
All	
  of	
  these	
  possible	
  impacts	
  are	
  concerning,	
  minor	
  or	
  major.	
  But,	
  the	
  best	
  method	
  to	
  get	
  through	
  this	
  tough	
  
time	
   is	
   to	
   encourage	
   more	
   unity	
   within	
   the	
   workforce	
   and	
   hear	
   the	
   constituents	
   and	
   employees	
   out.	
   This	
   means,	
  
creating	
  plans	
  for	
  the	
  future	
  of	
  programs,	
  an	
  action	
  plan	
  to	
  mitigate	
  this	
  situation	
  from	
  re-­‐occurring,	
  and	
  other	
  ways	
  to	
  
prevent	
  the	
  same	
  situation	
  to	
  occur	
  in	
  the	
  future.	
  When	
  people	
  feel	
  that	
  their	
  voices	
  are	
  heard	
  and	
  action	
  is	
  being	
  taken	
  
beyond	
  just	
  listening,	
  there	
  will	
  be	
  less	
  push	
  back.	
  	
  
	
  
In	
  order	
  to	
  mitigate	
  these	
  consequences	
  stated	
  above,	
  the	
  budget	
  committee	
  and	
  myself	
  have	
  come	
  up	
  with	
  the	
  
following	
  alternative	
  strategies	
  for	
  reducing	
  the	
  impact	
  of	
  the	
  cuts:	
  
1. WIC	
  Program:	
  $300,000	
  (30%	
  cut)	
  
a. Use	
  current	
  users,	
  churches	
  &	
  other	
  free	
  venues	
  to	
  advertise	
  about	
  the	
  program	
  and	
  benefits.	
  
2. Health	
  Education	
  /	
  Promotion	
  Programs:	
  $300,000	
  (20%	
  cut)	
  
a. Use	
  current	
  users,	
  churches	
  &	
  other	
  free	
  venues	
  to	
  advertise	
  about	
  the	
  program	
  and	
  benefits.	
  
3. Migrant	
  Health	
  Clinics:	
  $75,000	
  (100%	
  cut)	
  
a. Use	
  current	
  users,	
  churches	
  &	
  other	
  free	
  venues	
  to	
  advertise	
  about	
  the	
  program	
  and	
  benefits.	
  
4. Local	
  Health	
  Department	
  Liaison	
  Services:	
  $450,000	
  (60%	
  cut)	
  
a. No	
   solution	
   needed	
   as	
   cuts	
   were	
   necessary,	
   in	
   order	
   to	
   keep	
   politicians	
   from	
   both	
   standpoints	
  
happy	
  (Arthritis	
  Prevention	
  Program	
  Congressmen).	
  
b. Explain	
  justification	
  and	
  create	
  better	
  avenues	
  of	
  communication.	
  Seek	
  out	
  other	
  grants	
  and	
  funding	
  
opportunities	
  to	
  aid	
  the	
  program	
  and	
  supplement	
  their	
  budget	
  for	
  the	
  future.	
  
5. Arthritis	
  Prevention	
  Program:	
  $600,000	
  (67%	
  cut)	
  
a. No	
   solution	
   needed	
   as	
   cuts	
   were	
   necessary,	
   in	
   order	
   to	
   keep	
   politicians	
   from	
   both	
   standpoints	
  
happy	
  (Arthritis	
  Prevention	
  Program	
  Congressmen).	
  
b. Explain	
  justification	
  and	
  create	
  better	
  avenues	
  of	
  communication.	
  Seek	
  out	
  other	
  grants	
  and	
  funding	
  
opportunities	
  to	
  aid	
  the	
  program	
  and	
  supplement	
  their	
  budget	
  for	
  the	
  future.	
  
6. Other	
  Misc.	
  Programs-­‐	
  First	
  Lady’s	
  State	
  Autism	
  Project:	
  $30,000	
  (23%	
  cut)	
  
a. No	
  solution	
  needed	
  as	
  cuts	
  were	
  justified	
  and	
  this	
  program	
  is	
  in	
  its’	
  first	
  year.	
  
b. Explain	
  justification	
  and	
  create	
  better	
  avenues	
  of	
  communication.	
  Seek	
  out	
  other	
  grants	
  and	
  funding	
  
opportunities	
  to	
  aid	
  the	
  program	
  and	
  supplement	
  their	
  budget	
  for	
  the	
  future.	
  
7. Create	
  an	
  action	
  plan	
  for	
  the	
  future	
  budgets	
  in	
  order	
  to	
  prevent	
  this	
  situation	
  from	
  re-­‐occurring.	
  	
  
	
  
Upon	
  vast	
  research	
  and	
  reading	
  through	
  all	
  pertinent	
  documents,	
  the	
  budget	
  committee	
  and	
  myself	
  believe	
  that	
  
the	
  solutions	
  listed	
  above	
  are	
  the	
  best	
  alternative	
  strategies	
  to	
  mitigate	
  the	
  various	
  consequences	
  in	
  order	
  to	
  reduce	
  the	
  
 Governor	
  Yersy	
  Yersinian	
  
P.O.	
  Box	
  30013	
  
Lansing,	
  MI	
  48909	
  
Phone	
  517.373.3400	
  
Fax	
  517.335.6863	
  
www.michigan.gov	
  
	
  
impact	
  of	
  the	
  proposed	
  budget	
  cuts.	
  
	
  
In	
  conclusion,	
  using	
  a	
  “do	
  the	
  least	
  harm”	
  approach	
  while	
  being	
  conscious	
  of	
  political	
  pragmatism,	
  every	
  budget	
  
that	
  the	
  committee	
  has	
  chosen	
  to	
  cut	
  funding	
  from	
  are	
  as	
  follows:	
  
1. WIC	
  Program:	
  $300,000	
  (30%	
  cut)	
  
a. Cut	
  due	
  to	
  less	
  need	
  for	
  marketing	
  to	
  women	
  and	
  having	
  the	
  ability	
  to	
  advertise	
  through	
  different	
  
channels	
  (churches,	
  groups,	
  current	
  users	
  of	
  program).	
  
2. Hospital	
  &	
  Nursing	
  Home	
  Inspection	
  Program:	
  $90,000	
  (36%	
  cut)	
  
a. Cut	
  the	
  reimbursements	
  for	
  traveling	
  and	
  lodging	
  of	
  inspectors	
  &	
  administrative	
  costs	
  of	
  non-­‐vital	
  
furniture	
  and	
  equipment.	
  
3. Food	
  Safety	
  Inspections/	
  Regulations:	
  $10,000	
  (36%	
  cut)	
  
a. Cut	
  due	
  to	
  administrative	
  costs	
  of	
  non-­‐vital	
  furniture	
  and	
  equipment.	
  
4. Health	
  Education	
  /	
  Promotion	
  Programs:	
  $300,000	
  (20%	
  cut)	
  
a. Cut	
  due	
  to	
  less	
  need	
  for	
  marketing	
  and	
  administrative	
  costs	
  of	
  non-­‐vital	
  furniture	
  /equipment.	
  
5. Commissioner’s	
  Office:	
  $250,000	
  (35%	
  cut)	
  
a. Cut	
  due	
  to	
  less	
  need	
  for	
  marketing	
  and	
  administrative	
  costs	
  of	
  non-­‐vital	
  furniture	
  /equipment.	
  
6. Migrant	
  Health	
  Clinics:	
  $75,000	
  (100%	
  cut)	
  
a. Cut	
  due	
  to	
  the	
  ability	
  to	
  advertise	
  through	
  different	
  channels	
  (churches,	
  groups,	
  patients,	
  etc.)	
  
7. Family	
  Planning:	
  $32,500	
  (100%	
  cut)	
  
a. Cut	
  due	
  to	
  lack	
  of	
  traction	
  with	
  the	
  Male	
  target	
  population	
  (results	
  negligible).	
  
8. Communicable	
  Disease	
  Control	
  and	
  Vital	
  Records:	
  $50,000	
  (4%	
  cut)	
  
a. Cut	
  due	
  to	
  need	
  to	
  cut	
  from	
  another	
  budget	
  without	
  crippling	
  another	
  program	
  or	
  department.	
  
9. Primary	
  Care:	
  $30,000	
  (5%	
  cut)	
  
a. Cut	
  due	
  to	
  need	
  to	
  cut	
  from	
  another	
  budget	
  without	
  crippling	
  another	
  program	
  or	
  department.	
  
10. Local	
  Health	
  Department	
  Liaison	
  Services:	
  $450,000	
  (60%	
  cut)	
  
a. Cut	
  due	
  to	
  local	
  health	
  departments	
  being	
  able	
  to	
  alter	
  their	
  own	
  fees.	
  
11. Arthritis	
  Prevention	
  Program:	
  $600,000	
  (67%	
  cut)	
  
a. Cut	
  due	
  to	
  the	
  lack	
  of	
  cohesion	
  of	
  this	
  program	
  with	
  the	
  department’s	
  mission,	
  kept	
  due	
  to	
  politics.	
  
12. Oral	
  Health:	
  $100,000	
  (40%	
  cut)	
  
a. Cut	
  due	
  to	
  this	
  being	
  a	
  newer	
  program	
  and	
  less	
  field-­‐tested.	
  
13. Other	
  Misc.	
  Programs-­‐	
  First	
  Lady’s	
  State	
  Autism	
  Project:	
  $30,000	
  (23%	
  cut)	
  
a. Cut	
  due	
  to	
  this	
  being	
  the	
  first	
  year	
  of	
  the	
  program.	
  
	
  
I	
  look	
  forward	
  to	
  discussing	
  this	
  further	
  with	
  you.	
  Please	
  feel	
  free	
  to	
  contact	
  me	
  or	
  I	
  will	
  call	
  your	
  office	
  next	
  week	
  to	
  
discuss	
  your	
  preferences	
  in	
  this	
  matter.	
  Thank	
  you	
  for	
  your	
  consideration	
  of	
  our	
  request.	
  	
  
	
  
Very	
  truly	
  yours,	
  	
  
	
   	
   	
  
Curtis Healy
Curtis	
  Healy,	
  DrPH	
  
Health	
  Commissioner	
  
State	
  of	
  Michigan	
  Health	
  Department	
  
P.O.	
  Box	
  30013	
  	
  
Lansing,	
  MI	
  48909	
  	
  
Phone:	
  517.335.7858	
  |	
  Email:	
  curtis.healy@michigan.gov	
  

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HSA 6114-Case Study 1

  • 1.  Governor  Yersy  Yersinian   P.O.  Box  30013   Lansing,  MI  48909   Phone  517.373.3400   Fax  517.335.6863   www.michigan.gov     MEMORANDUM   TO:    The  Honorable  Governor  Yersy  Yersinian                      P.O.  Box  30013                    Lansing,  MI  48909   FROM:  Curtis  Healy                                P.O.  Box  30013                                Lansing,  MI  48909     DATE:  June  3rd ,  2015                           RE:     State  of  Michigan  Health  Department  Budget  Cuts   __________________________________________________________________________________________________     Governor  Yersy  Yersinian,     In  my  professional  opinion,  the  goal  of  this  budget  committee  and  our  criteria  to  follow  was  to  do  the  least  harm   within   our   rural   Midwestern   state   in   regards   to   the   upcoming   budget   cuts   from   the   State   of   Michigan’s   Health   Department  budget.  The  role  of  government  is  difficult  at  times  and  the  committee  and  myself  recognize  that,  but  the   concern  and  our  duties  are  to  the  people  of  the  great  state  of  Michigan.  We  are  all  public  servants,  aiming  to  assure  our   constituents  and  fellow  Michiganders  that  their  daily  life  will  not  be  plagued  with  health  issues,  monetary  shortcomings,   and  mental  downfalls.  We  aim  to  serve  the  people  and  prevent  the  negative  aspects  of  this  world  that  take  away  from   the  beauty  of  life.  With  that  said,  I  have  a  more  expansive  view  of  our  government  as  well  as  the  “do  the  least  harm”   mentality,  thus  I  understand  why  political  pragmatism  is  always  important.  But  the  political  feasibility  was  lower  on  my   criteria  scale  for  coming  to  this  decision.  Thusly,  I  am  saddened  to  transmit,  on  behalf  of  my  senior  leadership  and  staff   at   the   State   of   Michigan’s   Health   Department,   that   the   final   results   and   complete   findings   from   countless   budget   meetings  have  been  completed  and  yield  results  for  your  review.  I  have  spent  time  consulting  with  members  of  my  staff,   and   reviewing   all   pertinent   documents   prior   to   coming   to   a   final   decision   based   on   their   recommendations   and   perspectives.  As  I  am  in  agreement  with  the  proposed  initial  cuts  proposed  by  my  staff  and  senior  leadership  in  Table  1,  I   have  included  those  items  below.  My  reasoning  is  that  they  followed  my  least  harm  done  criteria  with  low  regard  for   political  feasibility.  I  respectfully  request  your  consideration  in  regard  to  proposed  budget  cuts  for  the  period  of  FY  2014-­‐ 15.  The  specific  budget  cuts  that  the  budget  committee  has  proposed  to  make  following  key  findings  in  our  report  are  as   follows  (which  includes  the  budget  cuts  I  have  suggested):   Department  /  Program   State  Tax  Revenue   Portion  not  Expended   Initial  Staff  Cuts   Final  Cuts   WIC  Program   $2,000,000   $1,000,000   $175,000   $300,000   Hospital  &  Nursing  Home  Inspection   Program   $500,000   $250,000   $90,000   $90,000   Food  Safety  Inspections/  Regulations   $550,000   $275,000   $10,000   $10,000   Health  Education  /  Promotion  Programs   $3,000,000   $1,500,000   $300,000   $300,000   Commissioner’s  Office   $1,415,000   $707,500   $250,000   $250,000   Migrant  Health  Clinics   $150,000   $75,000   $75,000   $75,000   Family  Planning   $65,000   $32,500   ?   $32,500   Communicable  Disease  Control  and  Vital   Records   $2,500,000   $1,250,000   $30,000   $50,000   Primary  Care   $1,200,000   $600,000   $30,000   $30,000   Local  Health  Department  Liaison  Services   $1,500,000   $750,000   ?   $450,000   Arthritis  Prevention  Program   $1,800,000   $900,000   ?   $600,000   Oral  Health   $500,000   $250,000   $40,000   $100,000   Other  Misc.  Programs  (First  Lady’s  State   $130,000   $130,000   ?   $30,000  
  • 2.  Governor  Yersy  Yersinian   P.O.  Box  30013   Lansing,  MI  48909   Phone  517.373.3400   Fax  517.335.6863   www.michigan.gov     Autism  Project)   Totals:   $15,310,000   $7,720,000   $1,000,000   $2,317,500   My  addition  to  the  proposal  above  was  to  build  on  the  already  proposed  cuts  as  well  as  to  create  additional  cuts.   These  additional  cuts  came  in  the  areas  highlighted  in  yellow.  These  cuts  totaled  out  to  $525,000.  The  budgets  that  were   left  blank  following  the  initial  cuts  that  received  cuts  upon  my  review  are  highlighted  in  green.  These  cuts  totaled  out  to   $1,112,500.  Due  to  the  additional  $17,500  of  additional  cuts,  the  budget  has  some  wiggle  room  to  be  able  to  aid  the   First  Lady’s  State  Autism  Project  or  other  budgets  that  are  in  dire  need.  This  additional  cut  was  to  have  a  discretionary   budget  to  help  curb  the  impact  of  the  budget  cuts  and  their  potential  negative  side  effects.         My   framework   and   approach   for   deciding   how   to   allocate   the   budget   cuts   were   keeping   full   funding   in   important  health  topic  areas  and  cutting  all  non-­‐essential  programs  and  administrative  /  marketing  costs.  The  mentality   of  doing  “the  least  harm”  is  what  I  attempted  to  follow  in  order  to  assure  my  staff  and  senior  leadership  that  the  gap  in   services   provided   will   be   the   smallest   and   the   magnitude   of   the   consequences   the   least.   This   criteria   was   more   important  to  me  than  just  political  feasibility  and  ease  of  cuts  to  be  made  (such  as  administrative  and  review  board  for   hospital   certification   and   local   restaurant   inspections).   Another   aspect   to   consider   was   the   political   pragmatism   of   cutting   the   Arthritis   Prevention   Program,   which   already   has   state   medical   university   funding   and   political   friends   in   Congress.     Our   overall   proposed   solution   for   these   large   proposed   budget   cuts   comes   from   further   review   and   logical   reasoning  for  cutting  these  particular  budgets.  The  reasoning  for  each  budget  cut  is  listed  in  itemized  form  below:   1. WIC  Program:  $300,000  (30%  cut)   a. Cut  due  to  less  need  for  marketing  to  women  and  having  the  ability  to  advertise  through  different   channels  (churches,  groups,  current  users  of  program).   2. Hospital  &  Nursing  Home  Inspection  Program:  $90,000  (36%  cut)   a. Cut  the  reimbursements  for  traveling  and  lodging  of  inspectors  &  administrative  costs  of  non-­‐vital   furniture  and  equipment.   3. Food  Safety  Inspections/  Regulations:  $10,000  (36%  cut)   a. Cut  due  to  administrative  costs  of  non-­‐vital  furniture  and  equipment.   4. Health  Education  /  Promotion  Programs:  $300,000  (20%  cut)   a. Cut  due  to  less  need  for  marketing  and  administrative  costs  of  non-­‐vital  furniture  /equipment.   5. Commissioner’s  Office:  $250,000  (35%  cut)   a. Cut  due  to  less  need  for  marketing  and  administrative  costs  of  non-­‐vital  furniture  /equipment.   6. Migrant  Health  Clinics:  $75,000  (100%  cut)   a. Cut  due  to  the  ability  to  advertise  through  different  channels  (churches,  groups,  patients,  etc.)   7. Family  Planning:  $32,500  (100%  cut)   a. Cut  due  to  lack  of  traction  with  the  Male  target  population  (results  negligible).   8. Communicable  Disease  Control  and  Vital  Records:  $50,000  (4%  cut)   a. Cut  due  to  need  to  cut  from  another  budget  without  crippling  another  program  or  department.   9. Primary  Care:  $30,000  (5%  cut)   a. Cut  due  to  need  to  cut  from  another  budget  without  crippling  another  program  or  department.   10. Local  Health  Department  Liaison  Services:  $450,000  (60%  cut)   a. Cut  due  to  local  health  departments  being  able  to  alter  their  own  fees.   11. Arthritis  Prevention  Program:  $600,000  (67%  cut)   a. Cut  due  to  the  lack  of  cohesion  of  this  program  with  the  department’s  mission,  kept  due  to  political   ties.   12. Oral  Health:  $100,000  (40%  cut)   a. Cut  due  to  this  being  a  newer  program  and  less  field-­‐tested.  
  • 3.  Governor  Yersy  Yersinian   P.O.  Box  30013   Lansing,  MI  48909   Phone  517.373.3400   Fax  517.335.6863   www.michigan.gov     13. Other  Misc.  Programs-­‐  First  Lady’s  State  Autism  Project:  $30,000  (23%  cut)   a. Cut  due  to  this  being  the  first  year  of  the  program.     After  final  review,  the  budget  committee  has  discovered  that  the  proposed  budget  cuts  and  reasoning  for  those   cuts  above  are  stout  and  resilient  to  all  harassment  by  both  the  public  opinion  and  the  political  opposition.         The  impact  of  the  proposed  budget  cuts  could  be  detrimental  in  various  health  topic  areas  and  political  areas  for   your  administration.  The  budget  committee  and  myself  have  delved  into  this  and  discovered  that  the  areas  of  highest   impact  are  as  follows:   1. Short  term  damage  to  knowledge  of  programs  provided  by  the  Department  of  Health  &  the  WIC  Program   2. Long  term  damage  to  Arthritis  Prevention  Program,  LHD  relations  &  capabilities   3. Loss  of  internal  political  support  due  to  cutting  funds  from  the  Arthritis  Prevention  Program   4. Overall  loss  of  political  support  due  to  cuts  being  made  and  lack  of  state  tax  revenue  to  supplement  the   budget  and  lowered  overall  employee  morale  due  to  distrust  for  administration     All  of  these  possible  impacts  are  concerning,  minor  or  major.  But,  the  best  method  to  get  through  this  tough   time   is   to   encourage   more   unity   within   the   workforce   and   hear   the   constituents   and   employees   out.   This   means,   creating  plans  for  the  future  of  programs,  an  action  plan  to  mitigate  this  situation  from  re-­‐occurring,  and  other  ways  to   prevent  the  same  situation  to  occur  in  the  future.  When  people  feel  that  their  voices  are  heard  and  action  is  being  taken   beyond  just  listening,  there  will  be  less  push  back.       In  order  to  mitigate  these  consequences  stated  above,  the  budget  committee  and  myself  have  come  up  with  the   following  alternative  strategies  for  reducing  the  impact  of  the  cuts:   1. WIC  Program:  $300,000  (30%  cut)   a. Use  current  users,  churches  &  other  free  venues  to  advertise  about  the  program  and  benefits.   2. Health  Education  /  Promotion  Programs:  $300,000  (20%  cut)   a. Use  current  users,  churches  &  other  free  venues  to  advertise  about  the  program  and  benefits.   3. Migrant  Health  Clinics:  $75,000  (100%  cut)   a. Use  current  users,  churches  &  other  free  venues  to  advertise  about  the  program  and  benefits.   4. Local  Health  Department  Liaison  Services:  $450,000  (60%  cut)   a. No   solution   needed   as   cuts   were   necessary,   in   order   to   keep   politicians   from   both   standpoints   happy  (Arthritis  Prevention  Program  Congressmen).   b. Explain  justification  and  create  better  avenues  of  communication.  Seek  out  other  grants  and  funding   opportunities  to  aid  the  program  and  supplement  their  budget  for  the  future.   5. Arthritis  Prevention  Program:  $600,000  (67%  cut)   a. No   solution   needed   as   cuts   were   necessary,   in   order   to   keep   politicians   from   both   standpoints   happy  (Arthritis  Prevention  Program  Congressmen).   b. Explain  justification  and  create  better  avenues  of  communication.  Seek  out  other  grants  and  funding   opportunities  to  aid  the  program  and  supplement  their  budget  for  the  future.   6. Other  Misc.  Programs-­‐  First  Lady’s  State  Autism  Project:  $30,000  (23%  cut)   a. No  solution  needed  as  cuts  were  justified  and  this  program  is  in  its’  first  year.   b. Explain  justification  and  create  better  avenues  of  communication.  Seek  out  other  grants  and  funding   opportunities  to  aid  the  program  and  supplement  their  budget  for  the  future.   7. Create  an  action  plan  for  the  future  budgets  in  order  to  prevent  this  situation  from  re-­‐occurring.       Upon  vast  research  and  reading  through  all  pertinent  documents,  the  budget  committee  and  myself  believe  that   the  solutions  listed  above  are  the  best  alternative  strategies  to  mitigate  the  various  consequences  in  order  to  reduce  the  
  • 4.  Governor  Yersy  Yersinian   P.O.  Box  30013   Lansing,  MI  48909   Phone  517.373.3400   Fax  517.335.6863   www.michigan.gov     impact  of  the  proposed  budget  cuts.     In  conclusion,  using  a  “do  the  least  harm”  approach  while  being  conscious  of  political  pragmatism,  every  budget   that  the  committee  has  chosen  to  cut  funding  from  are  as  follows:   1. WIC  Program:  $300,000  (30%  cut)   a. Cut  due  to  less  need  for  marketing  to  women  and  having  the  ability  to  advertise  through  different   channels  (churches,  groups,  current  users  of  program).   2. Hospital  &  Nursing  Home  Inspection  Program:  $90,000  (36%  cut)   a. Cut  the  reimbursements  for  traveling  and  lodging  of  inspectors  &  administrative  costs  of  non-­‐vital   furniture  and  equipment.   3. Food  Safety  Inspections/  Regulations:  $10,000  (36%  cut)   a. Cut  due  to  administrative  costs  of  non-­‐vital  furniture  and  equipment.   4. Health  Education  /  Promotion  Programs:  $300,000  (20%  cut)   a. Cut  due  to  less  need  for  marketing  and  administrative  costs  of  non-­‐vital  furniture  /equipment.   5. Commissioner’s  Office:  $250,000  (35%  cut)   a. Cut  due  to  less  need  for  marketing  and  administrative  costs  of  non-­‐vital  furniture  /equipment.   6. Migrant  Health  Clinics:  $75,000  (100%  cut)   a. Cut  due  to  the  ability  to  advertise  through  different  channels  (churches,  groups,  patients,  etc.)   7. Family  Planning:  $32,500  (100%  cut)   a. Cut  due  to  lack  of  traction  with  the  Male  target  population  (results  negligible).   8. Communicable  Disease  Control  and  Vital  Records:  $50,000  (4%  cut)   a. Cut  due  to  need  to  cut  from  another  budget  without  crippling  another  program  or  department.   9. Primary  Care:  $30,000  (5%  cut)   a. Cut  due  to  need  to  cut  from  another  budget  without  crippling  another  program  or  department.   10. Local  Health  Department  Liaison  Services:  $450,000  (60%  cut)   a. Cut  due  to  local  health  departments  being  able  to  alter  their  own  fees.   11. Arthritis  Prevention  Program:  $600,000  (67%  cut)   a. Cut  due  to  the  lack  of  cohesion  of  this  program  with  the  department’s  mission,  kept  due  to  politics.   12. Oral  Health:  $100,000  (40%  cut)   a. Cut  due  to  this  being  a  newer  program  and  less  field-­‐tested.   13. Other  Misc.  Programs-­‐  First  Lady’s  State  Autism  Project:  $30,000  (23%  cut)   a. Cut  due  to  this  being  the  first  year  of  the  program.     I  look  forward  to  discussing  this  further  with  you.  Please  feel  free  to  contact  me  or  I  will  call  your  office  next  week  to   discuss  your  preferences  in  this  matter.  Thank  you  for  your  consideration  of  our  request.       Very  truly  yours,           Curtis Healy Curtis  Healy,  DrPH   Health  Commissioner   State  of  Michigan  Health  Department   P.O.  Box  30013     Lansing,  MI  48909     Phone:  517.335.7858  |  Email:  curtis.healy@michigan.gov