Budget Spat Could Delay Medical Procedures

(Source: MIRS.news, Published 09/19/2025) Michigan state policymakers have been a “little too preoccupied” on the federal budget discussions when crafting the state's spending plan for Fiscal Year (FY) 2026, according to one social service organization head, who has seen a state budget process or two in her day.

It's time to come to get around the table, negotiate and come together on the programs important to people, said Amy Zaagman, executive director of Michigan Council for Maternal and Child Health, who has more than 25 years in Lansing as a legislative staffer and official with MCMCH and the mental health boards under her belt.

She said during a reporter roundtable on Friday that clearly a lot of state funding is dependent on what happens in Washington D.C. “but we need to take that in stride and should still be moving forward.”

Also, she understands that schools are concerned about when they can expect their state aid payments, but “schools are not the only entity that's highly dependent” on state money.

“Health care providers are highly dependent on the flow of Medicaid funding from the state,” Zaagman said. "We could see procedures delayed. That type of thing will start to happen very quickly before the 20th of October.

“The reality is that there's a lot of people pointing fingers at who's to blame for the hold up. I'm not alone in saying, ‘I’m sick of it.' Let's decide what you all can come together on and get it done.”

Health care, child care, food security and state workforce data are at risk as the state budget remains unresolved and the Oct. 1 start of the next fiscal year draws near, Zaagman and other social service advocates said Friday at a roundtable.

Advocates for social services said Senate Democrats “definitely prioritized” public health in their budget by investing in Medicaid and expanding RX kids. The same couldn't be said about the House Republican budget proposal.

“When budgets are slashed, people suffer. We risk undoing years of progress in improving health outcomes, reducing poverty and strengthening Michigan's workforce in a single budget cycle,” said Monique Stanton, president and CEO, Michigan League for Public Policy.

She said proposed cuts at both the state and federal levels are about whether people can go to the doctor, parents can find childcare and families have enough food to get through a week.

Alicia Guevara, chief executive officer of the Early Childhood Investment Corporation, said the budget should reflect the reality of families' daily lives in that childcare is “essential infrastructure like roads and broadband.”

She said parents are working more, but still struggling to find affordable, accessible childcare. Childcare businesses are operating on thin margins due to rising costs and decades of underinvestment.

According to the Michigan Association of United Ways, 41 percent of Michigan households are struggling to meet basic costs, affecting 40 percent of the state's population. Also, 19.1 percent of Michigan children experience consistent food insecurity, according to Bridget Clark Whitner, president and founding CEO, of the Kids' Food Basket.