Medicaid cuts in Michigan... Paulette Howell's son receives treatment for cerebral palsy through Medicaid. Gov. Jennifer Granholm's proposed 6 percent cut across the board in state Medicaid funding has created a wave of fear among the disabled and family members like Howell that it'll be harder to get treatment. "It's a dangerous situation for people who are disabled," said Howell, 58, of Waterford Township. Medicaid pays for the treatments for her 35-year-old son, Joe.