Ottawa County committee urges state to release mental‑health funds as federal Medicaid cuts loom

The Ottawa County Planning & Policy Committee on May 13 approved a resolution asking the Michigan Department of Health and Human Services to release mental‑health funding the legislature previously approved and to clarify actuarial calculations used to distribute Medicaid dollars.

The resolution, advanced to the full county Board of Commissioners, was promoted by Dr. Michael Burchard, chief executive officer of Ottawa County Community Mental Health, who told commissioners that the state appropriated $4.3 billion for mental‑health services but the department planned to distribute roughly $4.1 billion — a gap he described as a roughly $232 million shortfall in the system. "They don't think we need it," Burchard said of the department's distribution approach, adding that the department's actuarial study uses older utilization data and has not disclosed the variables behind its calculation.

Committee members and public commenters framed the resolution as a near‑term step to press the state to deliver funds already approved. Public commenter Becky Patrick of Allendale told commissioners that federal proposals under discussion could compound state shortfalls and urged the committee to use its political influence to protect Ottawa County mental‑health services.

Why it matters: Ottawa County's Community Mental Health (CMH) budget depends heavily on Medicaid enrollment and on county millage funds used to extend services beyond what Medicaid covers. Committee discussion highlighted two risks: the state's decision to withhold some allocated funds, and separate federal proposals that could cut Medicaid enrollment or change federal matching rules. Burchard said Ottawa County's CMH budget in 2025 was roughly $60 million and that the county could need another $6–7 million "pretty quickly" to stabilize service capacity if reimbursement or enrollment falls.

Supporting details and debate - The resolution asks MDHHS to distribute funds consistent with legislative intent and to make actuarial assumptions transparent to counties. Burchard said the department relied on Milliman actuarial work based on two‑year‑old utilization data and had not made the underlying variables public. "We have to get those actuarial sound studies with the right variables based on community need and actual cost," he said. - Public commenter Becky Patrick warned that federal changes could lead to steep revenue losses and urged the commissioners to press federal representatives. Patrick said the resolution before the committee was important but insufficient if federal action proceeds. - Commissioners debated whether to pass a focused resolution urging the state to release funds, or to delay (table) and produce a broader package that also addresses potential federal changes. A motion to table the resolution until a wider federal‑level discussion was organized failed. The committee then approved the resolution and forwarded it to the full board. - Committee members and CMH staff discussed recent local steps that reduced this year's shortfall (including cost‑allocation changes and grants), but warned those fixes would not protect the county against deeper or structural funding changes.

What the resolution does and next steps - The measure instructs county leadership to press MDHHS to release funds already appropriated by the legislature and to work with regional partners and the Michigan Association of Counties on state‑level advocacy. It also states that Ottawa County will not backfill unfunded Medicaid obligations with unrestricted county general fund dollars. - Committee members asked staff and CMH leadership to return quickly with a complementary package addressing possible federal proposals, including options for direct outreach to the county’s state and federal representatives.

Context and constraints Dr. Burchard and others emphasized that CMH reimbursement is capitation‑based (payments tied to Medicaid enrollees) and does not automatically reflect growth in need. Burchard estimated that the state‑level shortfall and enrollment changes could significantly harm the local system: "No new money is needed. We're not asking to raise any more money for the system. Just push out what was actually allocated," he said. He also said counties are preparing for scenarios in which enrollment drops (a figure used in discussion was 700,000 beneficiaries lost statewide in some proposals), which would reduce per‑county payments despite unchanged local demand.

Ending note The committee approved the resolution by voice vote and sent it to the full Board of Commissioners for consideration. Officials said they would continue outreach to state officials and convene additional county and regional partners to monitor both the state distribution and any federal proposals that could affect local Medicaid funding.