April 05, 2005
April 5, 2005
Proposal will create more than 5,000 jobs, update aging facilities
LANSING – Governor Jennifer M. Granholm today highlighted details of her proposal to renovate many of the state’s aging long-term care (LTC) facilities which is part of her plan to create tens of thousands of jobs and jumpstart Michigan’s economy this year. In a speech to an LTC seminar in Lansing and a visit to an LTC facility in Grand Rapids, the Governor said that upgrading LTC facilities, included in the Jobs Today Initiative, is part of a broader strategy to spur a rapid infusion of public and private investment in badly needed infrastructure projects in the state.
“Not only is Michigan’s population aging, but the facilities that care for people in need are also aging,” said Granholm. “This plan will put scores of Michigan women and men to work in a variety of jobs, from the skilled trades to service and sales, and will accelerate renovation projects at long-term care facilities to ensure that everyone has the opportunity to receive the care they need in a safe and dignified manner.”
The average LTC facility in Michigan is 30 years old, but until recently regulatory barriers and a reimbursement rate inadequate to support new construction and renovation have been significant roadblocks to improvement. Last fall, the Department of Community Health and the Certificate of Need Commission took necessary action to remove the regulatory barriers. With the introduction of the Jobs Today Initiative, Granholm has removed the final barrier.
Under the Governor’s plan, up to 75 LTC facilities will be eligible to receive an incentive to build community oriented housing for the state’s most vulnerable citizens. The Initiative will offer a new supplement of $5.00 per day for each Medicaid eligible resident in these facilities. Eligibility for the supplement will depend on a number of factors, including adoption of the new patient and family-friendly LTC designs, the ability to commit to beginning construction rapidly and the age and condition of the facility being replaced and the presence of an LTC single point of entry in the region being served.
“This is an excellent opportunity for facilities that have needed to expand and modernize but have lacked the means to do so to take action,” said Granholm.
The Jobs Today Initiative is a three-year program to accelerate the pace of state and local infrastructure projects that were scheduled to begin over the next decade and includes three areas of investment in environmental cleanup.
First announced in the Governor’s 2005 State of the State Address, the Jobs Today Initiative will create jobs in seven key areas, including: affordable housing construction and renovation; school improvement and repair; pollution cleanup; road improvements; long-term care facility construction and renovation; downtown development; and university campus improvements.
Granholm said last month’s 2005 budget agreement paved the way for many of the accelerated projects to begin this construction season. As part of the agreement, legislative approval was given to the $38 million in pollution cleanup projects as well as $220 million in projects to upgrade universities and community colleges. In addition, Granholm said $400 million in accelerated road projects will also begin this year.
Granholm said she will ask the state Legislature to approve two key changes in the law to create incentives for local governments to accelerate their own infrastructure improvements: a change in the state’s School Bond Loan fund will make it easier for Michigan school districts to renovate aging school buildings without raising taxes, and a new provision to allow cities to expand the boundaries of their downtown development zones will spur new job creation and development projects.
“Jobs must be the first order of business for everyone in Michigan today,” Granholm said. “We can make our communities cleaner, safer, and more livable while we put people back to work.”
For more information visit www.michigan.gov/gov
