ANN ARBOR, MI – Faced with a $10.3 million shortfall for mental health services, Washtenaw County officials are calling on the state to address what they consider a funding crisis.

“We need help from the state,” County Board Chairman Jason Morgan, D-Ann Arbor, said toward the end of a long, emotional meeting Wednesday night, Aug. 7.

Commissioners voted 9-0 to initially OK a Community Mental Health deficit-reduction plan, after hours of discussion and listening to concerns from affected community members.

“I’m a user of all these services that people are talking about right now,” said Dominick Harper, a disabled Washtenaw Community College student who appeared before commissioners in a wheelchair, voicing concerns about proposed cuts.

“We’re not going to vote for you if you don’t respect us,” Harper told commissioners.

The board is expected to hold a special meeting at 7:30 p.m. Aug. 22 to continue the conversation and consider taking a final vote.

“We are looking at scheduling a community forum before then to garner more input as well,” Morgan said.

Commissioners made a series of changes to the county administrator’s proposed deficit-reduction plan Wednesday night and more changes may be coming.

One of the biggest concerns expressed by several people was a proposed 4% reduction in Community Living Support provider rates, a cut estimated to save $1.5 million. Commissioners decided to take that off the table, fearing it would have too negative an impact.

Though they were willing to advance the amended plan out of committee, some commissioners still don’t fully support it, and they’re still waiting to see what the state does in terms of funding. They also want to hear more from residents.

“It’s always been my goal that, in solving the budget crisis, that the effects on the consumers be the least possible,” said Commissioner Sue Shink, D-Northfield Township.

Commissioners approved a resolution Wednesday night to send a letter to Gov. Gretchen Whitmer advocating for additional state funding for the mental health system.

Mental health service needs are greater than can be met with the current state funding model, they argue.

The county and its partners are actively suing the state, CMH’s primary funding source, over the issue.

CMH’s budget deficit is “directly related to underfunding of state and federal revenue for services we provide to our consumers,” the board’s resolution states, noting the estimated $10.3 million shortfall is for fiscal year 2019, which ends Sept. 30.

There are no revenue projections at this time for the 2020 fiscal year starting Oct. 1, county officials say.

Commissioner Andy LaBarre, D-Ann Arbor, said county officials were “caught between a rock and a hard place” at the end of 2018 when they had to approve a budget while still waiting on critical Medicaid reimbursement rate information from the state that didn’t come until January. The rates weren’t what the county hoped or expected in terms of revenue, LaBarre said.

“I’m more than happy to take my share of the responsibility there, having been chair at the time, and having written in 2013 the resolution that got us 10-year contracts,” he said, referring to labor contracts with wage increases that have contributed to CMH costs, though LaBarre said he’d still do it again.

CMH provides services to adults with severe and persistent mental illness, children with severe emotional disturbance and those with developmental disabilities.

Instead of making cuts that could negatively affect CMH services, LaBarre suggests looking elsewhere in the county budget.

“The only mechanism I see that we have out of it is to coalesce around what else in Washtenaw County government are we willing to put at a lower priority than CMH,” he said.

The department has faced structural budget challenges, requiring dipping into the county’s general fund.

“We put $4 million in to close out a deficit for 2018,” Shink said. “We are facing an unsolved $10 million deficit that has happened this year and that we don’t have resolved. If we don’t address this now, going forward we’re going to have $10 million more.”

Some of County Administrator Gregory Dill’s proposed deficit-reduction measures include a hiring freeze that could save an estimated $1 million, a $1.8 million reduction in CMH administration, consolidating buildings and vacating an office at 110 N. Fourth Ave. in Ann Arbor, and shifting $2 million in expenses to the county’s new mental health millage or Certified Community Behavioral Health Clinic budget.

A $2 million increase in state revenue is anticipated for 2020, according to the administrator’s plan.

Dill also outlined $2.6 million in possible increased support from the county’s general fund by cutting from other areas such as the Sheriff’s Office and Trial Court.

Commissioners decided Wednesday night against the idea of eliminating an equity program manager position to save money, deciding they’ll look elsewhere in the budget.

Morgan also won support for a proposal to seek financial support from Michigan Medicine and Trinity Health.

Commissioners assured residents Wednesday night they’ve heard their concerns about proposed cuts and are listening.

“We all need to join together,” said Commissioner Jason Maciejewski, D-Dexter Township, encouraging residents to contact state lawmakers to advocate for funding and educate them about the issue.

County voters in November 2017 approved a new 1-mill tax for mental health and public safety. It’s now bringing in more than $15 million per year, with 38% allocated to Community Mental Health.

While there’s talk of putting that to new programs, Morgan said he would rather use it to protect existing services where possible.

LaBarre said the new money is to meet targeted needs and can’t be used to supplant Medicaid-funded services, so it can’t do too much to offset the budget hole.