Mich. Comp. Laws § 330.1234

Sec. 234. In reviewing a community mental health services program's proposed contract and operating budget for the purpose of approval or disapproval, in whole or in part, or in making an allocation of state appropriated funds to a community mental health services program, the department shall consider: (a) The state's mental health needs. (b) The annual plan and needs assessment of the community mental health services program. (c) The state's need for a reasonable degree of statewide standardization and control of services. (d) The community mental health services program's need for a reasonable degree of flexibility and freedom to design, staff, and administer services in a manner that the program considers appropriate to its situation. (e) The community mental health services program's need for a reasonable expectation that services meeting an essential mental health need and that are appropriately designed and executed will receive continuing state financial support within the constraint of state funds actually appropriated by the legislature. (f) The demonstrated relevancy, quality, effectiveness, and efficiency of the community mental health services program's services. (g) The adequacy of the community mental health services program's accounting for the expenditure of state funds.