LANSING, Mich. (WZMQ) – Michigan lawmakers say one of the most high-profile work project cuts affecting the Upper Peninsula involves money that was never spent.
The $1.2 million line item, listed as a Community Enhancement Grant from the Department of Labor and Economic Opportunity for Labor and Delivery Services at Aspirus Ironwood Hospital, was part of a broader House Appropriations Committee vote earlier this month to cancel more than $600 million in previously approved work projects. The decision sparked criticism from Democrats, who warned that essential local services could be disrupted.
However, Senator Ed McBroom (R-Waucedah Township) notes that many of the canceled work projects date back to multiple budget cycles, and in many cases, the funding has already been paid out or is nearly complete.
“All of those appropriations are ones from 2 cycles ago, and many of them, the money has already actually been paid out in entirety or almost extent almost completed,” McBroom said. “And so there’s a lot of misinformation swirling around this.”
McBroom said the Gogebic County funding was created after the loss of a birthing facility in Ontonagon, with the goal of keeping labor and delivery services operating in Ironwood. According to McBroom, hospital officials initially said the funding was critical, but later declined to take it.
“This money, they said, if they got this money, they could keep it going,” McBroom said. “Then they never took the money.”
He said the failure to communicate that decision prevented lawmakers from redirecting the funds earlier to other health care providers in the region.
“Unfortunately, they didn’t communicate that they did not want it anymore to me, or I could have worked a year ago to send it to someone like Portage. Or to the Upper Great Lakes Health,” McBroom said.
Aspirus released this statement concerning the grant funding:
“Aspirus is committed to delivering safe, effective, and compassionate care to the communities we serve. As a leading rural health system, we are proactively implementing care models that meet the evolving needs of rural communities and that are sustainable within our changing environment.
In Ironwood, we are introducing a new OB service model that provides vital, high-quality pre- and post-natal care locally. Ironwood is experiencing shrinking deliveries, and this new care model is based on best practice approaches being implemented in rural communities across the country.
While Aspirus Ironwood Hospital was awarded a $1.2 million state grant in June 2024 to expand OB/GYN services, we declined the funding. Accepting taxpayer dollars to temporarily prop up an inappropriate care model would not have been responsible.
Aspirus will continue to evaluate and provide services that can be delivered with high quality and reliable safety, supported by appropriate providers and staff, and aligned with the evolving needs of the communities we serve.”
House Speaker Matt Hall (R-Richland Township) has defended the mass rejection of work projects, arguing that lawmakers were forced to act with limited information, and arguing it was the department that holds the grant’s responsibility to provide lawmakers with that information.
“When they won’t provide answers, and the law requires us to approve or disapprove in 30 days where we don’t have answers, we disapprove,” Hall said.
McBroom said the funding tied to the Ironwood project has not vanished, but reallocating it will require legislative changes.
“The money is still available, it’s just we have to change the actual law to send it to somebody other than Aspirus,” he said.
Lawmakers say discussions are underway to redirect the unused funds to health care providers willing to use the money to expand services for Upper Peninsula residents.
Stacey LaRouche, Press Secretary to Governor Whitmer provided news outlets with this statement: “The actions taken by House Republicans will kill jobs and raise costs for Michigan families—just days before the Christmas holiday. Even Ebenezer Scrooge wouldn’t dream of such cruel cuts, like eliminating support for students in Flint impacted by the water crisis and survivors of child sexual assault.
In contrast, Senate Democrats are working to solve problems by passing legislation that makes it easier for workers to find jobs and for companies to invest and build in Michigan. Our administration will continue to review the full impact of these cuts, but Michiganders deserve to know who is responsible: Matt Hall and his caucus.”
