Bold action is needed to address poverty in Michigan

A version of this column originally appeared in Michigan Advance.

Living in poverty is not something that anyone chooses, but poverty is a policy choice for our state and federal lawmakers who have the tools to do something about it. 

Tragically, more than 13% of Michiganders–roughly 1.3 million people–were living below the poverty line in 2022 according to recent data released by the U.S. Census Bureau, with Michigan coming in well above the national average of 11.5%. Throughout the state, poverty rates rose in 49 of 83 Michigan counties in 2022, impacting urban and rural counties alike, with Wayne, Genesee, Lake, Clare and Isabella counties having some of the highest poverty rates in the state.

This sobering data comes on the heels of the end of many pandemic-era investments in people, including the enhanced federal Child Tax Credit, three federal Economic Impact Payments, expanded unemployment insurance, an increase in food benefits for families with low incomes and many other effective—but temporary—safety net programs. Michigan’s Supplemental Poverty Measure climbed from 7.8% in 2021 to 12.4% in 2022 largely due to federal lawmakers’ decision to end these pandemic supports.

Living in poverty is devastating for families, often leading to poor health outcomes, unsafe living conditions, housing instability, food insecurity, poor educational outcomes for children and a significant amount of family stress. And when a state’s poverty rate is high, it certainly can make it difficult to grow a state’s population–something that Michigan is working hard to do right now following a report showing that our state’s population growth has lagged the nation for 50 years and that we will lose population in the 2040s if our projected slow growth path continues.

The new numbers from the U.S. Census Bureau set a stark backdrop for our Michigan lawmakers as they begin their 2024 legislative session in what we know will be a tight state budget year.

Here at the Michigan League for Public Policy, we’re focused on a number of bold, equitable, people-centered policy solutions that will help transform our state into a place where more Michiganders can thrive. Building on the momentum of last year’s historic boost to the Earned Income Tax Credit (EITC) for hundreds of thousands of working Michiganders, this powerful state tax credit should be expanded to the working Michiganders who are currently excluded. As it stands today, tens of thousands of younger and older workers without children as well as immigrants who work and pay taxes, but don’t have a Social Security Number are excluded from receiving the state EITC. By expanding the credit to these workers—many of whom we know are facing significant financial burdens—we can ensure that the EITC is reaching everyone who needs it.  

A permanent, fully refundable state Child Tax Credit that is targeted toward the families who need it most would also go a long way in addressing our state’s poverty crisis. In Michigan, more than 1.5 million children receive less than the full federal credit because their parents earn too little, with Black and Hispanic children disproportionately excluded because their parents are overrepresented in low-paid work as a direct result of past and present-day racial discrimination. Furthermore, children without a Social Security Number have been completely excluded from receiving the federal credit since 2017. 

We all saw the tremendous impact of the enhanced, but temporary, federal Child Tax Credit during the start of the pandemic, with our national child poverty rate brought to an all-time low of 5.2% and our state child poverty rate dropping to 6% based on a three-year average from 2020 to 2022 according to the Supplemental Poverty Measure (SPM). Because of that positive impact, Michigan should join a growing number of states that have adopted a state Child Tax Credit of their own. 

Looking for other innovative and bold ways to provide flexible cash support to families with low or no income should also be explored. Programs like the pilot Rx Kids program in Flint and the City of Ann Arbor and University of Michigan’s pilot guaranteed income program are a great start, but more permanent, statewide solutions are needed to help in reaching more Michiganders who are struggling to make ends meet. 

We envision a Michigan where we fully invest in our people and we work to ensure all residents have a safe place to live, food on the table and a fair, livable income to cover their other basic needs. We envision a Michigan where children don’t go hungry and each and every one of them is able to obtain a quality education at a well-resourced school. It will take bold action, but it is possible to make our state a stronger, better place for all Michiganders.