Michigan’s budget has many successes, but long-term investments are needed • Michigan Advance

Every evening, my family sits together at the kitchen table and we talk about our day. We talk about the many things that affect our lives – our jobs, school, our health, where we live, our household budget, and much more.

These kinds of things are undoubtedly being discussed in countless Michigan households, and we often hear lawmakers praise the budget plans they have developed to address these kinds of “kitchen table” problems.

In the case of the recent Agreement on the state budgetthat sentiment certainly rings true, at least in part. Building on the success of the current fiscal year, the fiscal year 2025 budget agreement includes many strong investments in what Michiganders need most, including long-overdue improvements to our state’s basic services program, the continuation of universal free school meals, improved access to health care, the expansion of the Rx Kids program, and additional funding for child care.

State budget of $83 billion lands on Whitmer’s desk after night session

Here at the Michigan League for Public Policy, we celebrate these fiscal victories, particularly the fundamental improvements to the Family Independence Program (FIP), which will go a long way toward providing meaningful financial assistance to families struggling to make ends meet.

We have has long advocated for strengthening FIP by increasing funding from the Temporary Assistance for Needy Families (TANF) program. and we’re happy to see it finally happen. After over a decade of no improvements, next fiscal year’s budget will use an additional $62.5 million in TANF funds to improve FIP’s wildly outdated payment standard, extend lifetime limits, and provide additional funding to families with children ages 0-14.

While the improvements in the FIP and many other people-focused investments in the FY2025 state budget are cause for celebration, it remains critical to maintain momentum in the coming years, especially as pandemic-era funding winds down.

Securing a better future for families in our state requires bold, long-term investments, and we have a long way to go, considering Nearly half (41%) of Michigan households either earn less than the federal poverty line or are employed (ALICE = Asset Limited, Income Constrained, Employed).that is, they are not poor, but still do not earn enough to basic household items.

Michigan currently has the 13th highest poverty rate in the country at 13%, and unfortunately our child poverty rate is even higher at 18%, while 28% are ALICE households. For all of these households, everyday life involves impossible decisions – from whether to pay rent or buy groceries to deciding whether to pay for child care or leave the lights on at home.

With the recent publication of the national 2024 Kids Count Data Book We also recently learned from the Annie E. Casey Foundation that our state continues to rank in the bottom half of the nation in overall child well-being (34th) and in the bottom 10 in educational attainment (41st).

While the pandemic has played a role in some of the opportunity inequalities we see in our education data, it is certainly not the only cause. Michigan remains last among all 50 states that have experienced the pandemic, and test scores across the country have barely changed in decades, according to the Casey Foundation.

Given our sobering education data, we were disappointed that the FY 2025 state budget did not provide increased funding for school foundation grants and student mental health services.

However, we welcome continued investment in school funding weights because improving equity in school funding is necessary to ensure that every student’s needs are fully met. Still, we must do more to improve the educational outcomes and emotional well-being of our children so they can succeed in their classrooms. This will be critical not only to their future success, but also to the future success of our state as we seek to keep people here and attract more people to Michigan.

These are problems that we cannot solve overnight. That is why long-term government investment is so important and why we will continue to support Budget priorities which continue to be omitted, including but not limited to: a state child tax allowance, an extension of the EITC to workers who do not currently receive itAnd School funding, the fully meets the needs of students.

Fighting for a better future for our fellow Michiganders is the cornerstone of our work here at the League, and we will keep fighting until all people in our state have what they need to not only survive, but thrive.