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Governor Granholm says plan to fill budget gaps may involve new revenue

By Laura Weber, Michigan Public Radio Network

http://stream.publicbroadcasting.net/production/mp3/wkar/local-wkar-914392.mp3

LANSING, MI –

States are waiting to hear if the U.S. Congress will approve more money for Medicaid before lawmakers take a summer break. But as Michigan Public Radio's Laura Weber reports, Michigan officials are already making plans to receive a fraction of the funds they originally budgeted for.

AUDIO:
Legislative leaders and Governor Granholm say they are working on contingency plans for whatever amount of extra federal Medicaid funds the state may receive. That includes a plan for zero additional funds and another huge hole in the budget.

Governor Granholm says more money for Medicaid, at any amount, is vital for many people in Michigan.

"Especially for the folks who need mental health coverage, the folks who are relying on prescription drug coverage, those are optional services under Medicaid and they would have to be considered to be cut," she says.

Granholm says her plan to fill budget gaps will include new revenue, though she has not yet said how or where. All of her previous plans for new revenue, such as extending the sales tax to services, have been fiercely opposed by legislative Republicans.

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