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Board approves larger payment to Community Mental Health amid audit concern about statutory local match
Summary
The county approved the first of three increased payments to Community Mental Health, a move commissioners said is intended to bring the county closer to the local-match amounts called for under Michigan law. The motion passed with one commissioner recorded in opposition.
The Lapeer County Board of Commissioners on Jan. 23 approved an increased first payment to Community Mental Health (CMH) of $126,876.67, part of a three‑payment schedule that commissioners were told would total $380,630 for the year.
Brooke (last name not specified in the record), the CMH director, told the board the figure represents an increase from previous years and moves the county toward the local match required by the Michigan Mental Health Code. The director cited Michigan Mental Health Code section 330.1302 in describing the statutory method for calculating the county’s local match (10% of inpatient costs plus 10% of clinical services).
Why it matters: County officials said the county historically has paid below the code-prescribed amount for more than a decade and that auditors could flag the shortfall; the additional payment is intended to show the county is making progress toward full compliance.
Discussion highlights: The director said the full statutory calculation would have produced a higher number (the director said the full calculation would have been about $459,429) and that the county has been underpaying the statutory expectation for about 15 years. Commissioners asked about penalties for noncompliance; the director said audits typically prompt discussion and requests for additional funding rather than immediate administrative penalties, and said CMH has not been in a red financial position that would trigger stronger sanctions.
Commissioner Hagedon moved the payment; Commissioner Zender supported the motion. When the board called the vote, commissioners approved the payment; one commissioner voted "nay." The board handled the matter as an appropriation from county funds to CMH for the current fiscal year.
What the money covers: Commissioners were told the county appropriation has multiple components, including a portion offset by rent from an on‑site pharmacy and clinic that is returned to CMH. The director explained $66,084 of the larger total is rent from the pharmacy and is included in the appropriation calculations.
Outcome and next steps: The motion passed (moved by Commissioner Hagedon, supported by Commissioner Zender). County staff and CMH will continue to coordinate on the remaining two scheduled payments and on documentation for audits and state reporting.
