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MI: Alcohol Treatment Tax Funds Threatened
June 7, 2007

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Funding Tips & Trends 

Local addiction-treatment programs in Michigan rely on a special alcohol tax levy as a steady source of funding, but some state lawmakers want to divert the treatment money to fill a budget gap, the Grand Rapids Press reported June 6.

Four percent of the sale price of liquor sold in Michigan goes to each county's addiction treatment and prevention programs; the tax generated $35 million last year. "We get federal money that identifies priorities like pregnant women, pregnant women who are IV drug users, and we have Medicaid," said Mark Witte, substance abuse coordinator for Kent County's Network 180. "But if you're a single male and you don't have any personal resources and you're not on Medicaid or an IV drug user, then the liquor tax money is your only option for treatment."

But some legislators are eyeing the tax revenue to help pay for an $800 million budget shortfall. Lawmakers claim the diversion would only be temporary, but the state also is facing a $1.6-billion projected budget shortfall next year.