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 10/7/09 Budget Update as of 2:40 p.m.

The House continued working yesterday on remaining budget issues. A continuation budget for the K-12 funding is still being negotiated. This was needed because the deep cuts to education funding have been a highly contentious issue.

The House also took up bills yesterday that would restore some funding to our most important programs that were cut last week. The bills sent to the Senate and Governor last week ensure that Michigan's budget is balanced. However, given the level of cuts made over the last few years, additional bills were also taken up to restore funding to programs such as the Promise Scholarship program, revenue sharing for local communities, libraries, and Medicaid cuts.

The House took up a physician reimbursement bill modeled after the federal "Quality Assurance Assessment Program." This federal program has served to ensure that doctors who serve Medicaid patients are reimbursed accordingly. By using this program, doctors who serve Medicaid patients will receive an increased Medicaid reimbursement. This helps address the state's increasingly expensive Medicaid costs.

The House also passed bills that hold the personal income tax exemption at $3,500 for the upcoming year and allows the Senate to make reductions in business tax credits that are not producing their intended benefit. These budget and revenue bills have been transferred to the Senate for their consideration.

These bills are aimed at easing the steep cuts in our most important programs. The House will continue to work on the K-12 budget and other issues throughout the week. I look forward to moving past our budget situation and taking on structural changes that will put Michigan on solid, long-term fiscal footing.