In Budget, Budget Priorities, News Releases, Tax and Budget

For Immediate Release
June 27, 2024

Contact:
Laura Millard Ross
lauramr@mlpp.org
517-281-1084

Agreement on 2025 state budget includes strong investments in what Michiganders need most; sustained funding still needed for positive, long-term impacts

League applauds basic cash assistance improvements, continuation of universal free school meals, child care funding improvements and more

LANSING—The Michigan League for Public Policy issued the following statement on the bipartisan 2025 state budget agreement finalized by the Michigan Legislature today. The statement can be attributed to League President and CEO Monique Stanton.

“Today’s budget announcement is big and broad, but the news we’re celebrating the most is that Michigan’s lawmakers are finally making transformational changes to our cash assistance program. These are the first meaningful improvements to the Family Independence Program (FIP) since 2008, and will ensure that fewer Michigan families will struggle to make ends meet. We have long advocated for FIP to be strengthened through the use of more Temporary Assistance for Needy Families funding, and we will continue to advocate for ongoing improvements to counteract the years of disinvestment in this program.

This budget will do a lot to help the nearly 1 in 5 Michigan children and 13% of Michigan households currently living below the poverty line, as well as the 28% of our state’s households that are Asset Limited, Income Constrained, Employed (ALICE). This budget invests in what these households need–like better access to healthy foods, health insurance for kids and parents, and support for child care–all of which is critical to boosting outcomes for Michigan kids and families.

We know that tonight’s budget agreement makes so many investments in what Michigan’s families need most, but lawmakers must continue to focus on the future of our state and determine how to allocate more funding to families who are struggling to make ends meet and students who are struggling in their classrooms in the years ahead. As pandemic funding comes to an end, it’s critical to make bold and enduring investments in priorities that will keep Michiganders out of poverty and keep kids on track to thrive.

Improving equity in school funding is necessary to ensure that every student’s needs are fully met, and in recent years the state has made significant progress by more carefully targeting funding to the schools and students that need it most. And while we applaud the continued investments in weights, we are disappointed that more funds were not allocated to the foundation allowance and mental health services for students. Focusing on educational outcomes and emotional well-being for kids is critical to keeping people in Michigan and attracting new people to our state, while also ensuring children have better opportunities to thrive.

The recently released national 2024 KIDS COUNT® Data Book from the Annie E. Casey Foundation should have alerted lawmakers to the urgent need to better support our state’s families and education system. Michigan continues to rank in the bottom half of states for overall child well-being at 34th and in the bottom 10 states for education, at 41st. While last year’s historic K-12 investments are not yet reflected in the data, we know that bold, sustained investments in families, schools and students who need it most is essential to getting kids back on track. 

Without positive, long-term funding, we aren’t going to see the positive, long-term impacts that are essential to a strong state for all people. We envision a Michigan where everyone has what they need to thrive, including a high-quality education, accessible child care, affordable housing, healthcare access, nutritious food and financial security. This year’s budget agreement takes us a step closer to that vision, but we must continue to build on our investments in Michigan’s people if we want to see that vision fully realized.”

ADDITIONAL INFORMATION:

The League applauds these 2025 state budget items:

  • An increase in basic cash assistance for families with low incomes, including a shift of some of the Temporary Assistance for Needy Families (TANF) funding to the Family Independence Program and a reduction in lifetime limits.
  • An expansion of Rx Kids, a program that targets cash payments to families during the challenging time of pregnancy and infancy.
  • Improved access to healthy foods, including continuing to provide universal free breakfast and lunch for school-aged children and an increase in funding for Double Up Food Bucks.
  • An increase in child care funding to better support families and the early child care workforce.
  • Investments in healthcare access and health equity, including waiving the $10 co-pay for MIChild. 
  • More alignment of school funding with the needs of Michigan students, including increases in targeted funding to better support English-language learners, students with disabilities and at-risk students who are economically disadvantaged or struggling to succeed academically.

2025 budget priorities from the League:

The People’s Budget from the League includes some of the policy areas addressed in the FY 2024-25 State Budget. The People’s Budget includes detailed data and analysis on the benefits of: adopting a state Child Tax Credit, improving cash assistance for families with low incomes, improving child care systems, expanding Michigan’s Earned Income Tax Credit, supporting safe and affordable housing, funding schools that need it the most, improving access to food, strengthening postpartum coverage, improving our safety net systems, supporting access to healthcare, adopting a progressive income tax and reducing health threats.  

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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on opportunity for all. Its mission is to use data to educate, advocate and fight for policy solutions that undo historic and systemic racial and economic inequities to lift up Michiganders who have been left out of prosperity. It is the only state-level organization that addresses poverty in a comprehensive way.