DEEP DIVE: THE GOVERNOR’S 2026 STATE BUDGET PROPOSAL
Michigan’s earliest learners deserve the opportunity to set their educational journey on the best path. At the same time, parents rely on our early childhood education systems, including child care and pre-K programs, to ensure their children are kept safe and are well taken care of while they work or go to school.
Michigan’s state budget helps families with low and moderate incomes afford child care and preschool programs as well as funds other early childhood programs, and the governor is pushing forward with her goal toward providing universal access to state-funded preschool programs, regardless of income. However, there is a concern that this will destabilize our early childhood system, especially our child care providers, potentially increasing costs on our families with the youngest children and making access for families with low incomes more difficult. While the governor’s 2025-2026 budget recommends one-time investments in our early childhood system to help comply with federal changes, more work needs to be done to fully address the cost of caring for and educating our youngest learners.
Please note, most of the programs below are administered by the Michigan Department of Lifelong Education, Advancement and Potential (MILEAP) but may also receive funding through the School Aid budget (K-12). Where there are differences, the department or budget is included within the proposed investment.
CHILD CARE ACCESS_____________________________
Child care is a significant expense for Michigan families. The United States Department of Health and Human Services has previously determined child care to be affordable when it makes up no more than 7% of a family’s budget, and in Michigan, the cost of a single child in care often exceeds this standard. In 2023, the average cost of an infant in center-based care was $12,667. To meet the 7% standard, a family would need to earn at least $180,957 per year to cover the cost of an infant in center care, and, for most Michigan families, child care remains unaffordable.
Michigan’s child care scholarship program provides support to help families with low to moderate incomes cover part of their child care costs. Families are initially eligible for the scholarship if they make under 200% of the federal poverty level (about $62,400 for a family of four) and need child care because they work or go to school. The state then reimburses providers, with rates determined by child age, facility (center, group home, or family home) and the provider’s quality.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING TO SUPPORT CHILD CARE ACCESS:
✓ Funding to comply with new federal CDC program requirements. The governor’s budget includes $50 million in one-time funds, including grants to help underserved communities and populations — such as kids with disabilities and infants and toddlers — and funding to improve budget stability of providers by paying them prospectively rather than through the traditional reimbursement process, bringing Michigan into compliance with federal rules.
WHAT’S MISSING?
X A comprehensive strategy to support the entire early childhood system, including creation of an Early Childhood Fund with dedicated revenues. Reports continue to show that we are underfunding our early childhood system, and inadequate, unaffordable care has resulted in approximately $2.88 billion in lost annual economic activity.
X A comprehensive strategy to address the early childhood workforce shortage. Michigan’s child care industry — overwhelmingly women and often women of color — is one of the most undervalued sectors of the workforce, and Michigan is facing a crisis-level workforce shortage. Wages are one of the main reasons contributing to the shortage; a caretaker working full time (2,080 hours) a year at the median hourly wage of just under $14 makes only $26,960 a year, far less than their early childhood education peers. Additionally, many do not qualify for other workforce benefits, such as retirement or healthcare.
STATE-FUNDED PRESCHOOL (Great Start Readiness Program) _____________________________
During Gov. Gretchen Whitmer’s 2023 State of the State address, she proposed moving the state toward universal state-funded preschool programs for all Michigan 4-year-olds, and the governor’s budget proposal continues to move toward this goal. However, this must be done in a strategic way to not exacerbate the early childhood workforce crisis and to not destabilize our early childhood education and care system for families.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR STATE-FUNDED PRESCHOOL PROGRAMS:
✓ Increase in the per-child allocation. The governor’s budget recommends increasing the per-child allocation from $10,185 to $10,577 for a full-day program (from $5,093 to $5,289 for a part-day program). This represents a 3.8% increase over the current budget. The governor’s budget also recommends increasing the per-child allocation for the extended program from $12,222 to $12,692 (or $6,346 for a part-day extended program), another 3.8% increase over current allocations.
✓ Elimination of the income eligibility threshold. Currently, families making up to 400% of the federal poverty level (or $124,800 for a family of four) qualify for state-funded preschool for 4-year-old children. The governor’s recommendation will eliminate this requirement, allowing all families to be eligible for the program. However, the funding provided is not sufficient to reach all 4-year-olds, so the budget includes language prioritizing enrollment for children in families with lower incomes and children with other risk factors.
✓ Continuation of funding to create new classrooms and expand providers. The governor’s budget recommends continuing $25 million in one-time funds to open new classrooms in underserved areas. The funding would be used to provide grants for each new or expanded Great Start Readiness Program (GSRP) classroom for costs associated with attracting, recruiting, retaining, and licensing required staff; supporting facility improvements or purchasing necessary facility space; outreach material for public awareness; and improving a provider’s rating.
✓ Maintaining funding for transportation. The governor’s budget continues an $18 million investment in transportation to help preschool students in GSRP classrooms get to school.
✓ Expansion of 3-year-old preschool pilot programs. The governor recommends $61 million in one-time funds for Clinton County Regional Education Service Agency (RESA) to initiate phase two of a 3-year-old preschool pilot program. This will allow the program to provide services to nearly 4,000 3-year-olds who meet eligibility criteria in 100 classrooms by the 2028-2029 school year, and the funding would be distributed over four years. Phase one was funded with $18 million in one-time funds in the 2023-2024 budget for distribution over three years.
ADDITIONAL SUPPORTS FOR EARLY EDUCATION AND CARE_____________________
A child’s educational journey begins before they set foot in a classroom, and children of all ages need support in order to start them off on the right path.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING TO SUPPORT INTERVENTIONS:
✓ Increased funding for Early On. Early On helps identify and provide interventions for infants and toddlers, birth to age 3, who have developmental delays or disabilities. The governor’s budget recommends increasing funding by $4.7 million, from $23.7 million to $28.4 million. While this is an increased investment, it still continues to fall short of programmatic needs.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
