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State Budget Update
House Issues Proposed FY 26 Budget
On Tuesday, August 26, the Republican-led House of Representatives convened for session and quickly presented and passed their General Omnibus recommendations for Fiscal Year 2025-2026 (FY 26). The bill passed 59-45 with Representative Karen Whitsett (D-Detroit) voting with the Republican majority.
As expected, the House recommendations issued a budget that cuts programs across almost all state departments. House Bill 4706 totals $54.6 billion ($12.09 billion General Fund). Coupled with the School Aid recommendations made by the House in the spring, the total appropriations recommendation for FY 26 sits at $79 billion. In comparison, the Governor’s proposal totaled $83.5 billion while the Senate proposal came out to $84.6 billion. The proposed budget makes cuts to all but five spending areas: The Legislature, Executive Office, Office of Auditor General, Department of Military and Veterans Affairs and Department of Transportation.
Overall, the House recommendations cut Medicaid spending by $3.7 billion, while the Public Health portion was cut by $92.5 million and Human Services portion was cut by approximately $1 billion.
Within the cuts to Medicaid, the Adult Dental program saw a cut of $21 million ($8.5 GF/GP) and saw the inclusion of a new boilerplate. Sec. 1627 states that “the department shall review services provided under the adult dental program and reduce those services to align with appropriations for both managed care and fee-for-service. Service reductions may include, but are not limited to, providing for 1 cleaning in a 12-month period.”
Additionally, the House proposed budget removed the Dental Services Reimbursement Increase (Sec. 1628), which allocated $3 million to continue the Medicaid reimbursement rate increase for dental services for ambulatory surgery centers and outpatient hospitals. The populations served within these facilities are mostly children, individuals with intellectual and developmental disabilities, and those needing extensive dental care under sedation.
At this time, we do not expect the House’s recommendation to be the final FY 26 budget. However, a budget that makes cuts and changes as drastic as this one will complicate the negotiation process as the House, Senate, and Governor’s Office aim to find a solution for road funding.
Call to Action
As we approach the October 1 start to the fiscal year, we are calling on MOHC members to reach out to your lawmakers and urge them to protect the Adult Medicaid Dental program by fully funding the program and not cutting services that can be provided to some of Michigan’s most vulnerable residents. Click here for a comparative list of budget recommendations impacting dental.
You can identify your lawmakers and get the resources you need to be a successful advocate here.
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