Coalition Power: How Oakland County Families Killed a $215 Million Rate Cut

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How Oakland County families killed a $215 million rate cut

Section 1033 would have stripped $4.56 an hour out of direct care agency rates while leaving the wage mandate in place. A coalition of Michigan families made sure it never reached the governor’s desk.

By Jim Palasty · 11 min read · Michigan advocacy

Step 1
A line item appears
Section 1033 lands in the Michigan House health budget.

Step 2
Providers do the math
A $4.56 hourly cut against a mandated $3.40 wage floor.

Step 3
Families flood the Capitol
Action alerts, phone trees, testimony, and a Senate that said no.

Start here
Find the section number before you find the outrage

Every budget cut has an address. Go to legislature.mi.gov, pull the current health and human services appropriations bill, and search the boilerplate sections for the words “direct care” or “rate.” Write down the section number. That number is what you say on the phone, in your email, and at the microphone. Nobody at a legislative office can act on “they’re cutting services.” Everybody can act on “Section 1033.”

The mechanism

Section 1033 reduced what the state paid agencies. It did not touch what agencies were required to pay workers.

The squeeze

Same wage floor. Less revenue. The gap comes out of supervision, training, scheduling, and the lights.

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What $215.8 million buys

Roughly a fifth of agency funding for the services that keep Level 2 and Level 3 adults out of institutions. Providers said plainly that some programs would close. In a workforce crisis, a closed program does not reopen.

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Who actually moved it

The Arc of Oakland County, Incompass Michigan, the Michigan Assisted Living Association, and the Direct Care Worker Wage Coalition ran a single coordinated ask instead of eleven competing ones. That is the whole trick. One section number, one position, one deadline, many voices.

3 weeks

The window

The September 2025 alert went out with the October 1 fiscal year start days away. Budget advocacy is not a season. It is a sprint you have to already be warmed up for.

The outcome

The Senate version carried no such reduction. Conference kept it out. The final FY26 budget passed October 3, 2025 without the cut.

The campaign, step by step

Find the number
Section 1033, House health budget
Do the arithmetic
$4.56/hr cut vs. $3.40/hr wage mandate
Name the harm
About 20 percent of agency funding
Pick one ask
Strike the section. Not amend. Strike.
Build the list
Providers, families, unions, county boards
Use a real tool
Incompass and MALA action alerts
Target the split
House had it. Senate did not.
Show up in person
Committee testimony, two minutes, one page
Follow the conference
Where the version fight is decided
Say thank you
In writing. Every time. It compounds.

What one call looked like

Denise runs a small Oakland County agency with fourteen direct care staff. She did the math on Section 1033 on a Tuesday night at her kitchen table, called nine families the next morning, and by Friday all nine had emailed their state representative with the same three sentences and the same section number. Her programs are still open.

Nine families. One section number. That is a coalition.

Your move

Run this playbook the next time a number shows up

Escalation ladder

  1. 1Read the actual bill section. Not the summary.
  2. 2Call your own state representative’s office first.
  3. 3Then your state senator. Both chambers matter.
  4. 4Contact the relevant appropriations subcommittee.
  5. 5Submit written testimony, one page, with your ask.
  6. 6If it survives conference, go to the governor’s office.

What to have ready before you call

  • The bill number and the section number
  • The dollar figure and where you got it
  • Your county and your legislative district
  • One sentence on who in your family it hits
  • One specific ask, stated as a verb
  • The name of your provider agency
  • A written version you can email after the call
  • The staffer’s name so you can follow up

Legislators do not remember stories about services. They remember constituents who could name the section number that was hurting them.

The full story · For readers who want context

Somewhere in a 400 page appropriations bill, in the boilerplate section nobody reads, a legislative staffer typed a number. Four dollars and fifty six cents an hour. Section 1033 of the Michigan House health and human services budget. It did not say “close the day program in Waterford.” It did not say “your daughter loses her community living supports.” It said, in the flattened dialect of appropriations language, that direct care agency rates would be reduced. That is what a $215.8 million cut looks like in its natural habitat. Boring. Technical. Nearly invisible.

Here is what makes Section 1033 worth a whole post rather than a paragraph. It did not fail because it was cruel. Plenty of cruel things pass. It failed because a few hundred people in Oakland County and across Michigan learned its address and repeated that address until it became politically radioactive. That is a repeatable act. I want you to be able to repeat it.

The trick inside the number

Michigan spent years building a direct care worker wage increase, layer by layer, until it reached $3.40 an hour above the March 2020 base. Agencies are required to pass that money through to workers. It is in the MDHHS numbered letters. It is auditable. That is the good part, and it took a decade of advocacy to get.

Section 1033 did not touch the wage mandate. It reduced what the state paid the agency. So the agency still had to pay the worker the mandated rate, out of a pool that had just shrunk by about twenty percent. The Direct Care Worker Wage Coalition described it as handing someone ten dollars for lunch and then taking fifteen out of their wallet. That is not a metaphor stretched for effect. That is the arithmetic.

Why this design is worse than an honest cut. An honest wage cut would have produced headlines and a union response within a day. A rate cut behind a preserved wage mandate produces no headline at all. It produces quiet program closures eighteen months later, attributed to “market conditions.” The harm is identical. The accountability is not.

What the coalition actually did, in order

First, somebody read the bill. This sounds trivial. It is not. Most advocacy failures happen because a group mobilizes against a rumor and arrives at the Capitol with heat and no address. Incompass Michigan and the Michigan Assisted Living Association identified the exact section, the exact dollar figure, and the exact mechanism, then published all three.

Second, they translated. The Arc of Oakland County put the effect in one sentence a parent could say out loud: the reduction would have to come out of provider overhead, because agencies were still required to maintain the wage increases. No jargon. No acronym soup. A sentence you can finish before a legislative aide’s attention moves on.

Third, they picked one ask. Not “reform the rate methodology.” Not “increase funding.” Strike Section 1033. A single verb applied to a single object. Coalitions come apart when every member brings their own priority to the same meeting. This one held because everyone said the same eleven words.

Fourth, they found the seam. The House budget contained the reduction. The Senate budget did not. That means the fight was never really about persuading 148 legislators. It was about making sure the Senate position survived conference. Knowing which chamber is already on your side tells you exactly where to spend your limited calls, and it is the single most useful thing families almost never look up.

The part where I get annoyed

Let me be absolutely clear about what almost happened here. Michigan spent a decade arguing that direct care wages were the crisis, passed increases, and then, in the same fiscal year, proposed to claw the money back through the agencies that employ those workers. Same budget. Same department. Same state.

That is not a policy contradiction anyone stumbled into. Somebody wrote it. Somebody scored it. Somebody put it in a bill knowing that the wage number would stay in the press release and the rate number would stay in the boilerplate. In Orwell’s version this required a Ministry. In Michigan’s version it required a footnote.

And it very nearly worked, because the ordinary condition of budget advocacy is that nobody reads section 1033 of anything. Show your work. Explain how an agency absorbs a twenty percent revenue reduction while holding wages flat. Nobody ever did.

What you can steal from this campaign

You are one person with an exhausting life and a kid who needs something from you in about four minutes. You are not going to build a statewide coalition. You do not have to. What you can do is the highest leverage part, which is also the smallest part.

Know your section number. When the alert comes, the alert will contain it. Copy it. Put it in your email subject line. “Please strike Section 1033” gets routed to the staffer who handles budget. “Please protect disability services” gets routed to a folder.

Call your own legislators, not the famous ones. Offices count constituents. A call from outside the district is a rounding error. A call from inside it is a data point that goes into a tally sheet that a member actually sees.

Send nine emails, not one. Denise’s move was not eloquence. It was multiplication. She wrote three sentences and gave them to nine families who each had their own district. That is nine districts touched by one person’s kitchen table math.

What happened, and what did not

The final FY 2026 Michigan budget passed on October 3, 2025 without the Section 1033 reduction. The $4.56 cut never took effect. The wage floor held.

Now the part nobody puts in the victory email. Nothing structural changed. The same rate methodology that made this proposal possible is still the methodology. The Oakland County direct care minimum sat at $16.10 an hour from January 2023 forward, and a twenty cent adjustment brought it to $16.30, a raise of about 1.2 percent in a period when nothing a worker buys rose by 1.2 percent. Waitlists that Oakland County once bragged about not having now exist across vocational services, community living supports, respite, and residential placement. The cut was defeated. The crisis was not.

So treat this as a template, not a trophy. Somebody is drafting next year’s boilerplate right now. Learn the section number before it has a victim’s name attached to it. That is the whole job, and it is a job you can do in an evening.