In Blog: Factually Speaking, Budget

A version of this column originally appeared in The Alpena News.

As the leader of an organization that has put the people of Michigan at the forefront of our mission since 1912, I was heartened to see that Gov. Gretchen Whitmer’s state budget proposal for Fiscal Year 2024-25 truly centers Michiganders and their basic needs.

Among the governor’s many people-centered investments, her plan to invest $46 million in improvements to the Family Independence Program (FIP) will make that program more effective in helping Michiganders who have fallen on hard times. Her proposal includes increasing base monthly FIP payments by 35%, increasing young child support payments for children under the age of 6 from $50 to $150 and increasing the eligibility time limit for families from 48 months to 60 months. These are some of the most transformational changes to FIP that we have seen proposed in well over two decades and they come at a critical moment in our state’s history, as we recently learned that Michigan has the 13th highest poverty rate in the nation

As it stands today, Michigan families with low incomes can’t get by on FIP’s outdated payment standard, which has failed to keep up with inflation and has, therefore, resulted in benefits that have decreased in value from year to year. We applaud the governor for recognizing that it’s time to raise the payment standard and eligibility time limit of this cash assistance program in order to help more Michigan families reach financial stability, including children ages birth to 17 living in households that are below the poverty line.

We also applaud the governor’s proposal to shift Temporary Assistance for Needy Families (TANF) funding in order to make these improvements to FIP possible. The League has long advocated for this kind of TANF restructuring, as the federal funds are intended to be used for families with low incomes, while much of the funding is currently allocated for programs that should be funded by the general fund and mainly serve middle-class and even affluent families.

In addition to shifting some TANF dollars for FIP, the governor is also proposing to shift a portion of TANF dollars to increase the State Emergency Relief Program funds by $30 million. This additional emergency funding will go a long way in helping families receive the assistance they need when facing conditions of extreme hardship. The cash assistance can be used for relocation, homeownership, utilities and deposits, home repairs and property tax arrearages when unexpected emergencies arise. 

The governor also continued to prioritize the well-being of Michigan’s kids by proposing to continue universal school meals–which have benefited nearly 1.4 million school children across our state–and the federal summer EBT program through state investment–which is expected to help around 900,000 Michigan students. We know how critical year-round nutritious meals are to the health, development and academic success of kids, and these two programs, together, ensure that Michigan kids have the vital nutrition they need throughout the school year and summer months. 

Additionally, the government maintained her strong focus on equity in her proposed school funding investments, including increased funding targeted toward the students and schools that need it most: English-language learners, students with disabilities, students from low-income backgrounds, and rural or isolated schools. We know that students bring unique needs with them to school. Without these needs being met, not all students are afforded the same access to high-quality education as their peers. Equity-based school funding helps ensure all students have the opportunity to be successful in their classrooms and beyond.

The governor’s proposals to further support Michigan’s child care providers–including a 10% ongoing rate increase and free child care for their own children–are also positive. However, while these proposals are a good start in supporting and stabilizing our early child care workforce, we must continue to look for ways to further increase our state investments in order to fully support these critical caregivers and get us back to the levels of funding we saw during the pandemic. We know that a stronger child care workforce will lead to more accessible child care for working families, improved outcomes for our youngest residents and a stronger state economy as a whole. 

Although we would like to see stronger investments in child care, we are, overall, very supportive of these and several other priorities in the governor’s budget, many of which align with our own budget priorities for the people of Michigan. The governor continues to keep Michiganders at the heart of her vision for our state and we encourage the Legislature to follow her lead as they begin their budget work.