Governor’s FY2026 Executive Budget Recommendation Impacts Long-Term Care (SNF)

As previously reported, Governor Whitmer presented her proposed state fiscal year 2026 budget. This kicks off the budget cycle, which will include proposals from both the Michigan Senate and Michigan House of Representatives. Negotiations between the republican majority in the House, the democrat majority in the Senate and Governor Whitmer will continue over the next several months. It is likely the state budget may not be approved until late summer 2025.

Her budget has sections covering the state departments, and both the Department of Licensing and Regulatory Affairs (LARA) budget and the Department of Health and Human Services (MDHHS) budget have items pertaining to long-term care operations.

LARA Budget: The Bureau of Survey and Certification (BSC) is requesting funding for seven additional surveyor positions, as well as funding to fill 11 currently open surveyor positions. They are also requesting funding for two additional support staff to assist with complaint intake. These additional positions will help ensure BSC can conduct timely surveys and to better meet CMS-required investigation timeframes.

The Bureau of Community Health Systems is requesting funding for three additional surveyors to oversee Homes for the Aged. These positions will allow for more timely issuances of new licenses and license renewals, routine inspections and complaint investigations at HFAs.

For several legislative terms, LARA has requested updates to statutory fees to pay for the administration of programs. Included in the governor’s proposed budget this year is a new fee of $5/bed charged to nursing facilities, HFAs and AFCs for annual fire inspections.

MDHHS Budget: Included in the Governor’s budget is the continuation of the direct care worker and non-direct care worker wage increases at $3.40 and $0.85 per hour accordingly. HCAM will advocate for the inclusion of this funding in the final approved budget and will also engage with legislators on potential legislative language making important updates to Medicaid policy, such as continuation of a more flexible non-available bed plan. HCAM will provide updates as the budget process continues.