Muskegon County human services staff report $772,000 year-to-date deficit; $1.06 million quality bonus expected to reduce shortfall

Unidentified staff told the Muskegon County Human Services Committee that through June the department reported $6.9 million in total assets, roughly $98,000 in liabilities, and an existing fund balance of about $1.3 million. Revenues were listed at $76,400,000 with approximately $4,500,000 that could be owed back; expenditures were $77,200,000, leaving a $772,000 gap if the fund were closed today.

The presenter said the year-over-year swing in reported assets reflects repayment of fiscal-year-2024 revenue owed to Lakeshore Regional activity. "We did also pay the Lakeshore Regional activity back for fiscal year 24 revenue that was owed back to them," the presenter said, and noted that payment accounted for a large decrease from last year.

Committee members asked about a recent quality-bonus payment. The presenter described the $1,060,000 as a CCBHC (Certified Community Behavioral Health Clinic) quality bonus tied to performance indicators. "If we meet certain criteria such as lowering the citizen within the hospitals, getting all of our med points down for, like, blood pressure, diabetes, and so forth... then we receive additional dollars as a quality bonus," the presenter said. According to staff, most required indicators were met last year except one; staff said they expect to meet that remaining indicator this year and that the bonus will be added to the local fund to help reduce the current deficit.

Committee members also asked whether the bonus is a flat amount or percentage; staff responded that it is structured as a percentage of business tied to meeting those performance indicators.

The committee received the report and moved on to the next agenda items.