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Per Capita Funding for Essential Local Public Health Services Line Item Increase

  • In FY 2017 MI was 9th lowest funded state for public health in the US

  • The Essential Local Public Health Services Funding Report shows that FY 19 boilerplate Section 1234, MDHHS developed a revised distribution formula for allocating Essential Local Public Health Services (ELPHS). 

  • Sec. 904 of Public Health Code. Three ELPHS areas: MDHHS (Infectious Disease Control, Sexually Transmitted Disease Control and Prevention, Immunization and Hearing Screening and Vision Services), MDEQ (Public Water Supply/Private Ground Water Supply and Onsite Sewage Management), and MDARD (Food Protection) 

  • The Workgroup found that the state was only reimbursing local health departments at 25-30% cost share since its implementation in 1993. 

  • In law, Section 2475 of Public Health Code they have to 50/50 cost share reimbursement 

  • HFA did do an estimate in late 2018 making many assumptions, and the estimate was a drop to about 26% that the state was paying

  • Now is estimated at 41% after getting updated census numbers

  • In 2019, the legislature implemented a new funding formula and added a one-time appropriation of $6-8M to hold local governments harmless 

  • Currently $51.4 million in the DHHS budget, which is base funding required pursuant to Sec. 2475 of the Public Health Code

  • Option 1: propose an increase to the line item understanding that it would be expended within those essential services areas

  • It would cost $21.6M to reach 50/50 cost share

  • MI Assc for Local Public Health (MALPH) recommends closing this gap by 2026

  • MALPH request last year was $5-$8M added to FY 2022 MDHHS budget for ELPHS increase bringing the total to $59.4M


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