five related stories; this one's the front page headline:
http://www.detnews.com/2004/specialreport/0404/18/a01-125754.htmMedicaid tab saps Michigan
By Mark Hornbeck, and Charlie Cain / Detroit News Lansing Bureau
LANSING — Michigan has begun to dramatically cut critical watchdog services — ranging from child care and adult foster care licensing to food inspections and liquor control — to cope with a growing financial monster: Medicaid, the state’s massive health care insurance plan for 1.35 million poor people.
Even as Michigan’s tax revenues fell the past four years, Medicaid caseloads shot up 27 percent and costs spiraled up 40 percent. The state now spends a quarter of its general fund on Medicaid coverage — and more than $7 billion annually overall.
Virtually all other state programs are under increasing pressure. Spending for higher education is down 14 percent since 2002, resulting in comparable tuition hikes. Payments to local governments have been slashed by 15 percent since 2001, leading to layoffs of police, shorter library hours, fewer road projects and reductions in numerous other municipal services.
A Detroit News examination of employment records shows state staff cuts have hampered oversight and regulation of child care and adult foster care licensing, food inspection, state park management and other key programs and services.
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