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Contact:
Alex Rossman
arossman@mlpp.org
517.487.5436

Lansing, Mich.—The Michigan League for Public Policy called for action today on funding in the 2017 state budget for child care, at-risk students and adult education as the Michigan Legislature prepares to take up budget legislation this week. The League sees these as key issues for improving kids’ education outcomes and workers’ economic standing, and a way to immediately address the challenges families in Flint and Detroit are facing.

“If the Legislature is looking to use the budget to help people and improve the state economy, increasing funding for students at risk, adult education and child care is the way to do that,” said Gilda Jacobs, president & CEO of the Michigan League for Public Policy. “For toddlers whose brains are at peak development and students facing hardship at home and at school to adults who face employment and earnings barriers because of a lack of education, investing in these programs will benefit generations and lift families out of poverty.”
The League’s state budget priorities are outlined in a series of budget briefs, and additional updates will be added to the website as the budget progresses. The education budget recommendations to lawmakers include:

  • Support expanded child care funding for young children in Flint;
  • Increase income eligibility for child care assistance to at least 150% of poverty;
  • Invest $10 million in adult education funding to enable 8,000 more students to be served;
  • Only expand adult education eligibility to individuals under 20 years old if additional funding is provided to cover them.
  • Fully fund the state’s At-Risk School Aid program and expand eligibility to all districts.

The child poverty rate has increased in the state by 23 percent since 2006, with nearly 1 in every 4 children in Michigan living in poverty (22.6 percent). Child poverty is even higher for kids of color (47 percent for African-Americans and 32 percent for Hispanics compared to 16 percent for White kids).
Children living in poverty often require additional services and resources, which come at a greater cost to their schools. While Michigan’s At-Risk School Aid program is designed to address that and better serve low-income kids, it has only been fully funded for two years out of the last two decades, resulting in a cumulative shortfall of nearly $2 billion.
“The Kids Count in Michigan Data Book released last month showed that too many kids are living in poverty, and that it affects their education, their health and their future,” said Alicia Guevara Warren, Kids Count in Michigan project director at the League. “Kids of color face continued barriers to opportunity and economic stability, especially in Flint and Detroit right now, and policymakers can and should address this by investing in these programs to help workers, schools, parents and kids.”
In Michigan, 2 of every 3 young children now have all parents in the workforce, making child care essential to many families. At the same time, child care costs are hurting all families—especially those making low wages. A family of four living at the state median wage must dedicate more than 20 percent of its income to place two children in a child care center. On average, monthly child care consumed almost 40 percent of 2015 minimum wage earnings, and at poverty-level wages, over 80 percent of a family’s income would be consumed by child care.
Despite rising child care costs for parents, child care providers are some of the lowest-paid workers in the state. Child care workers had median wages of only $8.73/hour in Michigan in 2013, and their earnings are so low nationwide that almost half receive some form of public assistance.
Over 221,500 Michigan adults age 25-44 lack a high school diploma or GED, yet fewer than 7% are enrolled in adult education. At the same time, Michigan has greatly reduced its funding for adult education over the past 15 years, down as much as $60 million a year.

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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.

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