Michigan Compiled Laws, Chapter 330. Mental Health Code § 330.1242

(a) The construction, purchase, remodeling, or any similar capital cost of a building or facility, except that such cost is eligible for state financial support on an annual expense basis in an amount equal to a fair rental value of the space or building being utilized.

(b) The capital cost of equipment or similar items in an amount greater than that established by the department.

(c) Any cost item that does not represent or constitute a real or actual expenditure by the community mental health services program except to expend from a reserve account established by the board, as provided in section 205. 2

(d) That part of any expenditure that is obviously and manifestly extravagant in relation to its specific objective and context.

(e) Any category of expenditure or any portion of any category of expenditure, the ineligibility of which the department determines is necessary and appropriate to assure the reasonable use of state funds or to assure a legitimate interest of the state, and which determination is in accord with the intent and provisions of this chapter.Subject to section 114a, this subdivision shall be effectuated by rules promulgated by the department.