The House version of the Fiscal Year (FY) 2004-2005 Department of Community Health budget. (Note: Gov. Jennifer Granholm’s proposed budget for this department is Senate Bill 1036 .) This appropriates $9.664 billion in adjusted gross spending (including restricted fund and federal dollars), compared to $9.417 million, which was the FY 2003-2004 amount enrolled in 2003. Of this, $2.465 million will come from the general fund (funded by actual state tax revenues), compared to the FY 2003-2004 amount of $2.561 million. Medicaid spending rises $229.5 million over the previous year. The House version authorizes approximately $68 million less gross spending than the governor recommended, and $11 million less general fund spending. It appropriates $419 million in new tobacco tax revenue (see House Bill 5632) and tobacco revenue previously earmarked for the “rainy day” fund. Much more information on Michigan’s budget is available at Hot Topics: Michigan’s Budget Challenge at www.mackinac.org/4964.