POVERTY TASK FORCE REPORT 2021 - State of Michigan

Page created by Craig Osborne
 
CONTINUE READING
POVERTY TASK FORCE REPORT 2021 - State of Michigan
2021
POVERTY TASK FORCE REPORT
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
POVERTY TASK FORCE REPORT 2021 - State of Michigan
SUMMARY                                         that the innovative adjustments to the
                                                machinery of state government needed in
When Gov. Gretchen Whitmer issued               the short term to help Michiganders whose
Executive Order 2019-19 creating the            financial security has been undermined
Michigan Poverty Task Force (PTF)               by COVID-19 must also be considered for
on Dec. 18, 2019, she could not have            the long-term stability and effectiveness of
known that less than three months               anti-poverty efforts. These short, medium
later, the world would be plunged into          and long-term strategies include expansion
the most consequential public health            of existing, effective anti-poverty policies
crisis of the past century.                     as well as bold new initiatives to help
                                                low-income Michiganders navigate and
Like all crises, COVID-19 has laid bare         transcend poverty.
how poverty affects every dimension
of existence, from physical health to           We present this agenda fully recognizing
education, employment and training to           that the economic challenges brought on
housing and food security and beyond.           by the COVID-19 crisis will severely limit
                                                the ability to create new programs and
It seems prescient, then, that Gov. Whitmer     initiatives that require significant financial
designed the PTF to harness the power           investments. In 2021, the PTF will use
of state departments, philanthropy,             these recommendations as a platform to
community organizations and local leaders       create long-overdue conversations with
to develop a comprehensive anti-poverty         stakeholders both within and outside of
agenda for Michigan. There is no area of        state government about building the state’s
state government that does not have a           intentional commitment to focus on anti-
role in the efforts to eradicate poverty. The   poverty policymaking. The construction of
work – if it is to succeed – must not be        this agenda has, as a guiding principle, the
siloed. Cross-departmental collaboration        idea that a primary goal of state economic
is a linchpin of our approach and we            policy should be rising household
have combined that with Michigan’s              incomes for all Michiganders, especially
most insightful nongovernmental poverty         those who are struggling. Some of the
thought leaders for partnerships that will      recommendations would require state
build this agenda from the ground up.           investment that is not likely to materialize
                                                in the near future. But it is our fervent hope
Over the span of four months, leaders           that this document and the ideas within
representing 14 state departments met in        will serve as a roadmap for a discussion
workgroups that researched and developed        about how the state can better leverage
a list of 35 policy recommendations to help     existing resources, create pathways to
struggling Michiganders and restore the         new resources and build partnerships
state’s safety net. The Task Force presents     with external stakeholders to better serve
these recommendations understanding             struggling Michiganders.

                    LABOR AND ECONOMIC OPPORTUNITY         2021 POVERTY TASK REPORT         2
POVERTY TASK FORCE REPORT 2021 - State of Michigan
01. POVERTY TASK FORCE
  OBJECTIVES

     LABOR AND ECONOMIC OPPORTUNITY   2021 POVERTY TASK REPORT   3
POVERTY TASK FORCE REPORT 2021 - State of Michigan
When Gov. Whitmer issued Executive             05. Develop strategies for increasing public
Order 19-19, she set out a list of 12              awareness of poverty in Michigan,
objectives for the PTF’s work:                     its causes and effects, the resources
                                                   available to those impacted by it, and the
01. Identify and evaluate poverty’s root           actions that can be taken to combat it.
    causes and contributing factors in
    Michigan, the needs of those in poverty    06. Develop routine communication and
    in Michigan, and the effectiveness             information-sharing protocols between
    of efforts on all levels that have been        members of the Task Force and
    undertaken or are currently being              stakeholders on all levels.
    undertaken to address poverty. Develop
    strategies for supporting or otherwise     07. Identify key stakeholders in impacted
    improving the efficacy of those efforts,       areas, and perform outreach to
    including programmatic effectiveness           ensure stakeholders are informed,
    and administrative efficiencies.               educated and empowered. Stakeholder
                                                   outreach will include, but is not
02. Identify and evaluate the nature and           limited to, community leaders, partner
    scope of poverty’s impact on various           organizations, tribal governments, local
    locations and communities throughout           government officials and other elected
    the state and what response actions            officials representing the impacted areas.
    would be most effective in helping
    each of those impacted areas. Develop      08. Perform outreach to the general public
    strategies for implementing those              regarding poverty in Michigan and the
    response actions.                              work of the Task Force.

03. Identify and evaluate what financial       09. Create measurable goals and objectives
    and other resources are available              along an established timeline.
    on all levels to combat poverty in
                                               10. Recommend changes in Michigan law,
    Michigan. Develop strategies for
    securing, coordinating, augmenting             and policy-related changes that can
    and deploying those resources.                 be implemented by governmental and
                                                   nongovernmental agencies, relevant to
04. Identify and evaluate key barriers to          fighting poverty in Michigan.
    upward mobility among populations in
                                               11. Provide other information and advice and
    poverty in Michigan. Develop strategies
    for overcoming these barriers, focusing        perform other duties as requested by the
    on improved economic development               department directors or the governor.
    and opportunities for upward mobility      12. The Task Force shall report regularly to
    among families and individuals                 the governor on its activities.
    experiencing poverty in Michigan.

                    LABOR AND ECONOMIC OPPORTUNITY        2021 POVERTY TASK REPORT            4
POVERTY TASK FORCE REPORT 2021 - State of Michigan
02. POVERTY TASK FORCE
  STRUCTURE AND WORKFLOW

      LABOR AND ECONOMIC OPPORTUNITY   2021 POVERTY TASK REPORT   5
POVERTY TASK FORCE REPORT 2021 - State of Michigan
The PTF’s first meeting was held in January    ਅ Providing Opportunity: The
2020 and then PTF staff began meeting            workgroup was charged with creating
one-on-one with department directors to          durable pathways to jobs and higher
gain insight into their current strategies       income, including higher education,
and collaborate about new initiatives,           high-quality certifications and
pilots, policies and legislation that could      industry-recognized credentials.
have meaningful impact in the state’s fight
against poverty. Department directors then     The work was organized around three
appointed key staff to PTF work groups,        key organizing principles.
which met for several months to develop
policy recommendations to coordinate and       First, our goal is to reduce the state’s
activate efforts within state government.      ALICE population. According to the
                                               Michigan Association of United Ways,
Using the ideas generated by those             43% of Michiganders are Asset Limited,
meetings as a platform and deploying           Income Constrained, Employed (ALICE).
the expertise and experience of key            These are Michiganders who work every
staff from the 14 state departments, the       day but struggle to pay for basic needs
PTF divided its work into four groups:         such as shelter, food, transportation,
                                               communication and child care. Our
ਅ Safe and Secure: This work group             approach to poverty eradication will not
  was charged with creating and                only lift the poorest Michiganders, but will
  strengthening safety nets that ensure        also help stabilize the income of those who
  economic security and quality of life for    have seen their middle class status slip
  all. Examples: housing security, food        away because of stagnant wages and an
  security, utilities, crime prevention and    evolving job market.
  rebuilding the social safety net.

ਅ Strong Beginnings: This work group was
  focused on programs targeting children to
  combat generational poverty. Examples:
  child care, school-based nutrition
  programs and youth employment.

ਅ Removing Barriers: This work group
  was responsible for grappling with
  strategies to address structural barriers
  for poor job seekers. Examples: efforts
  to expand eligibility for expunction of
  criminal records and support for returning
  citizens who face barriers to employment,
  housing and other staples of life.

                    LABOR AND ECONOMIC OPPORTUNITY        2021 POVERTY TASK REPORT        6
POVERTY TASK FORCE REPORT 2021 - State of Michigan
Second, the work groups were asked                 linked with barriers to economic mobility
to leverage the broad representation of            and explored strategies to untangle
state departments at the table to build            these links.
intentionally collaborative programs.
The causes and effects of poverty are           ਅ Economic: This committee
multidimensional and our approach to              focused on strategies that will help
address them must also be.                        low-income Michiganders build
                                                  wealth through entrepreneurship,
Finally, in recognition of the Whitmer            homeownership, employment and
administration’s commitment to racial             training and other pathways.
equity, our work groups approached
their assignments with a racial equity          ਅ Education: This committee targeted
lens. Michigan Department of Civil Rights         strategies to build educational equity
officials met with each work group before         to ensure every K-12 student in
they started their assignments to shine a         Michigan is being prepared to succeed
light on how state policies have contributed      in postsecondary education or work
to racial inequity in Michigan and to offer       and meet the state’s Sixty by 30 goal
strategies to acknowledge and address             where at least 60% of Michigan’s
racial disparities in policy decision-making.     working adults have a postsecondary
                                                  educational credential by the year 2030.
As the groups met, they organized
themselves into smaller issue groups            ਅ Health, Housing and Safety: This
                                                  committee examined strategies to ensure
to develop policy recommendations in
                                                  state government is effectively deploying
five categories:
                                                  policies to ensure that the basic needs of
ਅ Benefits: The committee examined                low-income Michiganders are met.
  current state policy and imagined pilots,
                                                These issue groups produced the
  priority shifts and administrative changes
  designed to streamline processes to give      following 35 policy recommendations
  low-income Michiganders the resources         that constitute the first iteration of an
  and supports they need to thrive.             anti-poverty agenda for Michigan.

ਅ Criminal Justice: Acknowledging
  the groundbreaking work of Lt. Gov.
  Garlin Gilchrist and Michigan Supreme
  Court Chief Justice Bridget Mary
  McCormick on criminal justice reform,
  this committee examined the many ways
  engagement with the justice system is

                    LABOR AND ECONOMIC OPPORTUNITY         2021 POVERTY TASK REPORT         7
POVERTY TASK FORCE REPORT 2021 - State of Michigan
03. POLICY RECOMMENDATIONS

     LABOR AND ECONOMIC OPPORTUNITY   2021 POVERTY TASK REPORT   8
POVERTY TASK FORCE REPORT 2021 - State of Michigan
BENEFITS POLICY                                  What is needed is a sober examination
                                                 of how Michigan’s deployment of TANF
RECOMMENDATIONS                                  dollars does – or does not – forward the
Michigan is an outlier in the way state          goal of giving poor families access to
                                                 economic stability. To that end, the PTF
government distributes benefits to its
poorest citizens, lagging far behind the         makes the following recommendations:
national average and Midwest states in the
                                                 01. Conduct an In-Depth Study of the
percentage of Temporary Aid to Needy
                                                    Effectiveness of TANF Distribution
Families (TANF) dollars that are dedicated
to core purposes. Additionally, the state’s         To better understand the effectiveness
benefits processes have been designed               of the state’s TANF distribution as
with the intent to make access to needed            a safety net strategy, the PTF will
assistance extremely difficult and inadequate.      commission an in-depth study from a
While the Whitmer administration has taken          qualified third-party academic entity in
steps to expand eligibility and streamline the      2021. As of 2017, only 19% of available
process to receive benefits such as food and        TANF dollars were used for basic
cash assistance and emergency relief, much          assistance, child care and resources
work remains to be done.                            to help poor Michiganders connect to
                                                    and retain jobs. This compares with
Simply put, Michigan needs to completely            a national average of 52% of TANF
overhaul its approach to how it allocates           dollars being used for core purposes by
TANF dollars. Too often, the state’s TANF           state governments. Instead, much of
block grant has been used for purposes              Michigan’s TANF block grant is allocated
that do not fulfill the foundational goal of        to pay for foster care services and for
giving needed assistance to Michigan’s              other priorities such as funding merit-
poorest families.                                   based college scholarships for students of
                                                    any economic status who earn high scores
                                                    on standardized tests. Gov. Whitmer has
                                                    requested funding for a comprehensive
                                                    study of whether the state’s approach to
                                                    TANF distribution is serving low-income
                                                    families well.

                                                 02. Rethink College Scholarships Funded
                                                    With TANF Dollars
                                                    The PTF recommends that Michigan
                                                    target TANF dollars that are used for
                                                    college scholarships to low-income
                                                    students who will most benefit from

                   LABOR AND ECONOMIC OPPORTUNITY         2021 POVERTY TASK REPORT          9
POVERTY TASK FORCE REPORT 2021 - State of Michigan
postsecondary education and training.       Furthermore, current state policies are
   There is ample evidence that a college      intentionally designed to make accessing
   education is the single most effective      benefits difficult. The Michigan Department of
   anti-poverty strategy. States with higher   Health and Human Services (MDHHS) team
   college attainment rates typically have     has successfully streamlined some processes
   a bevy of positive outcomes ranging         to make benefits more accessible during the
   from higher per capita income to better     COVID-19 crisis. For example:
   health outcomes.
                                               ਅ Early in the COVID-19 crisis, Michigan
   Currently, Michigan spends more than          used federal funds to greatly expand
   $125 million of the state’s $700 million      its food assistance programs through
   TANF allocation to provide college            the Pandemic EBT program, providing
   scholarships for Michigan students who        benefits to 300,000 additional struggling
   earn high standardized test scores,           families. The expansion required an
   regardless of students’ financial status.     aggressive process to reach the families
   We propose a study of that policy in          of students who were eligible for free
   the previous recommendation, but              and reduced lunch at school but were at
   at a minimum, state leaders should            home due to the pandemic.
   consider redirecting those scholarships
   to benefit only low-income students         ਅ The state expanded eligibility for food
   given that this is the population that is     assistance to all low-income college
                                                 students in Michigan who are enrolled in
   targeted by TANF.
                                                 career or technical education programs
03. Commission a Comprehensive
                                                 and met food assistance eligibility criteria.
                                                 The policy change will help students
   Study on Outcomes for Former State
                                                 avoid food insecurity as they invest in
   Assistance Recipients                         their own long-term economic stability.
   Michigan’s TANF rules have locked many        This policy change aligns with the state’s
   out of opportunities to get assistance        Sixty by 30 goal.
   for life staples. While supporters of
   these policies point to falling benefit
   enrollment numbers as evidence of their
   success, there has been no evidence-
   based research about what happens to
   poor Michigan families who lose these
   resources. Gov. Whitmer has requested
   funding for a comprehensive study that
   will examine how former TANF recipients
   have fared in the years since their
   benefits ended.

                  LABOR AND ECONOMIC OPPORTUNITY         2021 POVERTY TASK REPORT          10
MDHHS should continue to prioritize                  cash assistance even as they pursue
innovation, leveraging technology                    work, which would significantly curtail
to boost flexibility and make the                    the benefits cliff.
department’s efforts to provide benefits
nimbler and more responsive to the                   In addition, the law allows states to set
                                                     a time limit shorter than 60 months,
needs of poor families.
                                                     and in Michigan, the limit is 48 months.
One critically important way Michigan can            Increasing the time limit from 48 months
and should innovate is by addressing its             to 60 months will ensure families have
benefits cliff. A core purpose of Michigan’s         additional assistance that can help
public assistance safety net is to support           smooth their transition to self-sufficiency.
low-income Michiganders on their path
to self-sufficiency. A key roadblock facing       05. Increasing the FIP Grant Amount
families on that path is the benefits cliff,
                                                     In Michigan, the monthly TANF/FIP
the steep loss of public assistance benefits
                                                     benefit level for a single-parent family of
as income increases. This phenomenon
                                                     three is $492. While Michigan’s current
disincentivizes work as the amount of
benefits loss is often greater than the              benefit level is an increase from $459
amount of increased income earned, leading           in 1996, benefits are 34 % lower in
to an overall decline in household resources.        inflation-adjusted dollars, meaning that
                                                     the purchasing power of FIP benefits
                                                     has eroded substantially over time. FIP
The following policy options could
                                                     remains the primary cash assistance
reduce the benefits cliff by providing
                                                     program in Michigan and plays an
additional time for maintaining benefits
                                                     important role in stabilizing a family’s
and creating smoother off-ramps from                 economic situation by ensuring they have
public assistance:                                   the income to meet basic needs such as
                                                     food, shelter, clothes and transportation.
04. Improving FIP Participants' Transition
    to Self-Sufficiency                              However, the decline in the purchasing
                                                     power of cash assistance means that
    Federal law imposes lifetime limits on
                                                     assistance is failing to push families
    cash assistance provided under the
    TANF program, known in Michigan                  above the poverty line. Research has
    as the Family Independence Program               also shown that state decisions on FIP
    (FIP). States have considerable flexibility      grant amounts have consequences
    to “stop the clock” for particular groups,       for racial disparities, as Black children
    such as adults working substantial               are more likely to live in states with
    hours or adults facing barriers to work          the lowest benefit levels. A more
    participation, an option that Michigan           substantial benefit can help recipients
    once had. Pursuing that flexibility could        find work, thereby reducing the impact
    ensure that recipients have access to            of the benefits cliff.

                   LABOR AND ECONOMIC OPPORTUNITY          2021 POVERTY TASK REPORT            11
06. Adopt COLA for FIP                               A TSS can increase the purchasing
                                                     power of FIP and stabilize housing
   Michigan has the option of reforming
                                                     situations, thereby helping clients
   FIP by raising benefit levels to account
                                                     secure better forms of employment.
   for the cost of inflation. The state can
   also adopt a cost-of-living adjustment         08. Adopting a Short-Term Family
   (COLA) like that used by Social Security          Support Program
   and Supplemental Security Income to
   ensure that benefits keep pace with               One way to reduce the benefits
   inflation over time. A cost-of-living             cliff is to provide families with a
   adjustment is already done in the food            short-term lump-sum payment to
   assistance program.                               address immediate needs. Families who
                                                     are normally self-sufficient and facing
07. Adopt a TANF Shelter Stipend                     temporary obstacles to continued self-
   With the growing cost of housing, cash            sufficiency may be better served by
   assistance benefits often fail to cover rent      a one-time lump-sum payment than
   for a modest two-bedroom apartment. In            ongoing cash assistance. States can
   Michigan, cash assistance benefit levels          implement a Short-Term Family Support
   cover only 55% of average Fair Market             Program (STFS) to provide a lump-sum
   Rents (FMR). This coverage has eroded             payment to targeted cash assistance
   over time, with FIP benefits covering             applicant families, such as those with
   84.5% of FMR in 1996. Cash assistance             recent work history and promise of work
   is often the primary benefit used to              in the future.
   stabilize housing costs, as only 17% of
   TANF families receive U.S. Department of
   Housing and Urban Development (HUD)
   housing assistance. Without proper
   housing support, TANF families face the
   risk of housing instability, eviction and
   homelessness, which are associated with
   poor school performance and physical
   and mental health risks.

   One way to combat the growing
   cost of housing is to adopt a TANF
   Shelter Stipend (TSS). A TSS provides
   additional assistance to families with
   high housing cost. In Minnesota, $110
   is given to all TANF clients who are not
   in subsidized housing.

                   LABOR AND ECONOMIC OPPORTUNITY         2021 POVERTY TASK REPORT         12
09. Adopting an Extended FIP Program             10. Establishing an MDOC
                                                    Notification Process
   Another way of reducing the benefits
   cliff is to provide benefits to families         Establishing a process for the
   who are transitioning out of TANF after          Michigan Department of Corrections
   meeting their income limits. Previously,         (MDOC) to notify other state agencies
   MDHHS operated an Extended FIP                   of the incarceration of a family’s
   (EFIP) program that provided $10 in              primary income earner will make it
   FIP benefits for six months for families         easier for agencies such as MDHHS
   transitioning out of the program, which          and LEO to proactively offer these
   allowed them to remain categorically             families assistance through benefits
   eligible for Child Development Care              programs and employment and
   (CDC) and State Emergency Relief (SER).          training opportunities. This is especially
   One benefit of this program is that it aids      important as the State Legislature
   the transition out of cash assistance            contemplates legislation that would
   by ensuring households have access               freeze child support payments for
   to other resources. It allows clients to         incarcerated parents.
   remain involved with the Michigan Works!
   Agencies (MWAs) employment and                11. Incentivize School Attendance for
   training programs should they need their         At-Risk Populations
   supportive services.                             Michigan families with children between
                                                    the ages of 6 and 15 lose cash assistance
                                                    if a child is truant from school. Proponents
                                                    of 2015 legislation that stripped benefits
                                                    from parents with truant children, argued
                                                    that the threat of losing cash assistance
                                                    would force families to ensure student
                                                    attendance in school, but ample research
                                                    has demonstrated the linkages between
                                                    poverty and truancy. In contrast, other
                                                    states offer financial incentives to support
                                                    parents in getting their children to school.
                                                    Making poor families poorer is not a
                                                    logical strategy to address the factors
                                                    that contribute to truancy. The PTF will
                                                    examine outcomes for families who lose
                                                    benefits due to truancy and push for
                                                    more effective strategies to boost school
                                                    attendance among poor children.

                  LABOR AND ECONOMIC OPPORTUNITY          2021 POVERTY TASK REPORT           13
12. End Asset Tests for Food Assistance         14. End Lifetime Bans for Work
                                                   Requirement Violations
   Michigan is one of only 16 states
   that has an asset test to obtain food           Michigan legislators have instituted
   assistance. While state officials took          some of the nation’s most ineffective
   a step in the right direction by raising        work requirement rules for benefits. One
   the asset test for food assistance from         work requirement violation can lead to
   $5,000 to $15,000, the PTF strongly             the loss of benefits for three months.
   recommends that Michigan not use an             Two work requirement violations could
   asset test for food assistance at all.          cost a recipient benefits for one year
                                                   and the third violation could lead to a
   Asset tests can discourage low-income           recipient being banned for life from
   families from saving money, which               receiving benefits. These ineffective,
   leaves them vulnerable to food insecurity       punitive rules do not take into account
   when emergencies arise. Conversely, if          the many inherent challenges that
   a family has a short-term financial win,        low-income workers experience in the
   they can find themselves disqualified           workforce. There is also evidence that
   from receiving needed food assistance.          recipients of color are more likely to lose
   Since food assistance dollars are               benefits for workforce violations. The
   provided by the federal government,             PTF urges the State Legislature revisit
   the state can actually save money by            the punishment structure for work
   reducing the administrative costs of            requirement violations, focusing more
   assessing families’ eligibility.                on supporting rather than penalizing
                                                   benefit recipients who struggle with
13. Simplify the Application Eligibility
   Period for PATH Program                         work requirements.

   The Partnership. Accountability. Training.   15. Automate the Processing of
   Hope. (PATH) program assists families in        Medicaid/Medicare Benefits for
   identifying and eliminating economic and        Returning Citizens
   social barriers to economic independence        By simply updating the incarceration
   to build wealth and stability among ALICE       status when an individual enters prison
   families. Simplifying PATH’s application        and when he/she is released from
   eligibility period would increase access        prison, the state can give returning
   to the program. Changes would require           citizens access to needed health
   both administrative and legislative             benefits, a path to better health
   policy changes.                                 outcomes and more productivity.

                   LABOR AND ECONOMIC OPPORTUNITY        2021 POVERTY TASK REPORT          14
16. Establish a "LIHEAP" Program for Water       ECONOMIC POLICY
   Water is a staple of life, but far too many   RECOMMENDATIONS
   Michiganders struggle to pay their
   water bills and have faced losing this        17. Examine How Technology Can Help
   vital resource. During the COVID-19              Low-Income Michiganders Gain
   crisis, Gov. Whitmer instituted a water          Mobility Through Transit
   shutoff moratorium and ordered water             Transportation is a major employment
   utilities to restore water connections in        barrier for Michiganders who live in
   occupied dwellings that did not have             poverty. Technology is advancing,
   service. On December 22, 2020, the               vehicles are becoming smarter and
   governor signed legislation to extend            applications are being developed for
   the moratorium through spring 2021.              various uses. The PTF recommends a
                                                    study that leverages the expertise of
   Furthermore, the mayors of Detroit
                                                    the Michigan Office of Future Mobility,
   and Flint have instituted water shutoff
                                                    MDOT and MDHHS to create innovative
   moratoriums in their cities, with Detroit
                                                    strategies that modernize transit to make
   officials signaling that a water shutoff
                                                    it more responsive to the needs of low-
   moratorium may become permanent.
                                                    income workers. The project should
                                                    include regional diversity and consider
   To provide assistance to low-income
                                                    a plethora of technological innovations
   Michiganders who struggle with water
                                                    designed to improve mobility.
   affordability, the PTF proposes the
   establishment of a program that mirrors       18. Establish a Coordinated Strategy
   the Michigan Low Income Home Energy              to Help Communities Address the
   Assistance Program (LIHEAP) to ensure            Digital Divide
   that low-income Michiganders have a
   funding source to pay their water bills.         The COVID-19 crisis shined a
   While there are inherent challenges              bright light on the economic and
   to establishing such a program for               educational consequences of the
   water as opposed to the program for              digital divide. CARES Act funding
   energy providers, given that energy              has allowed Michigan to provide
   providers are heavily regulated by state         expanded broadband access in
   government, we believe this approach             underserved communities. The state
   could be a boon for both families who            has allocated $25 million in CARES
   are struggling to pay for water and the          Act funding for a device purchasing
   water authorities that serve them.               program and distance learning to the
                                                    Michigan Association of Intermediate
                                                    School District Administrators. Funds
                                                    have been used to coordinate and
                                                    incentivize strategic purchasing of

                  LABOR AND ECONOMIC OPPORTUNITY          2021 POVERTY TASK REPORT        15
devices for use by students at home               Whitmer requested $2 million to work
   and in the school environment and                 with philanthropic partners to build pilot
   to address immediate access and                   programs and to stand up a statewide
   connectivity issues for students,                 infrastructure to help incubate and
   families and community members who                support the development of children's
   do not have internet access.                      savings accounts throughout Michigan.
   Also, the Connecting Michigan                  20. Expand Housing Choice Voucher
   Communities Grant program was                     Pilot Between MSHDA and the MDOC
   established in 2018 to provide grant
   opportunities to extend broadband                 The PTF will explore opportunities to
   service into underserved areas in                 partner with philanthropic organizations
   Michigan. And the Michigan Department             that are interested in building state
   of Education dedicated $29.75 million to          support for efforts to lower recidivism
   narrowing the digital divide in its creation      rates of returning citizens by expanding
   of an education equity fund with federal          an existing pilot program that gives
   CARES Act dollars. But more can – and             returning citizens access to affordable
   should – be done. The PTF recommends              housing opportunities. While the
   expansion of strategies to widen                  Michigan State Housing Development
   broadband and device access and will              Authority (MSHDA) has recently
   work with philanthropic partners and              increased the available vouchers by
   other stakeholders to boost connectivity.         50%, far too many parolees still do not
                                                     have access to affordable housing
19. Support and Incubate Children’s                  options. The hope is to build legislative
   Savings Accounts                                  support for the expansion of the
                                                     voucher program by demonstrating the
   Philanthropic organizations have long
                                                     correlation between secure housing
   partnered with entities such as school
                                                     opportunities and post-incarceration
   districts and community development
                                                     success for parolees.
   organizations to create wealth-building
   strategies. Children’s savings accounts
   offer an exciting platform to help low-
   income families build wealth and pay
   for educational expenses – including
   extracurricular activities that have been
   lost to budget cuts in struggling districts.
   We believe state government can and
   should have a role in incubating efforts
   to help low-income families build savings
   accounts to help their children thrive.
   In her 2022 budget proposal, Gov.

                   LABOR AND ECONOMIC OPPORTUNITY          2021 POVERTY TASK REPORT           16
CRIMINAL JUSTICE POLICY                        22. Diverting People With Behavioral
RECOMMENDATIONS                                   Health Needs Away From the
                                                  Justice System
21. Expand Apprenticeship Opportunities
                                                  The PTF fully supports policies giving
   While Incarcerated                             people with behavioral health issues
   MDOC apprenticeship programs are               access to needed treatment instead of
   meant to coordinate efforts to address         incarceration. This will require investing
   employment of formerly incarcerated            in behavioral crisis training for law
   people in high-demand fields, reduce           enforcement and corrections officers.
   recidivism and increase economic and           This includes legislative reforms to
   social independence in individuals             promote the use of mental health
   and social mobility in families. MDOC          alternatives (in progress), improved
   currently provides vocational training         training (in progress) and legislative
   in over a dozen trades, including              and administrative prioritization of
   horticulture, commercial driving,              funding to support increased mental
   welding, tree trimming and computer            health/crisis stabilization/training in the
   coding. Some of these programs are             community. Other stakeholders (law
   already supported by relationships             enforcement, Michigan Commission
   with unions, including the International       on Law Enforcement Standards,
   Brotherhood of Electrical Workers              courts and MDOC) must adopt internal
   and the Michigan Regional Council of           policies that support diversion, have
   Carpenters and Millwrights. The MDOC           a clear understanding of available
   is also currently exploring a formal           resources and actively engage in
   partnership with the U.S. Department           diversion programming and training.
   of Labor (USDOL) for USDOL
   apprenticeships for some programs.

   Administrative changes within
   the MDOC, namely establishing a
   formal agreement with the USDOL
   will be necessary to expand these
   apprenticeships. In addition, the MDOC
   can continue to work to attract union and
   employer support for other programs
   so that participants accumulate hours
   toward their apprenticeship and training
   while in the MDOC.

                  LABOR AND ECONOMIC OPPORTUNITY        2021 POVERTY TASK REPORT           17
HEALTH, SAFETY AND HOUSING                      home ownership opportunities for
POLICY RECOMMENDATIONS                          lower-income households by removing
                                                the cost of land from the transaction
23. Expand Addiction Treatment                  and subsidizing the cost of a sale down
                                                to just 75% of the appraised value of
   Accessible treatment is shown to             the land and improvements.
   decrease death rates and promote
   social and economic mobility among           Low- or moderate-income homebuyers
   populations and families affected by         benefit because they can qualify for
   addiction. The state can play a crucial      a loan that would otherwise not be
   role in expanding social services to         possible and build equity in their home,
   include treatment for substance use          albeit with some restrictions to maintain
   disorders and benefit public health,         affordability for the next homebuyer.
   employment and the economy.                  More than 279 community land trusts
   Expanding access to treatment                are in operation in the United States.
   will allow substance use disorder            In Houston, 100% of owners are people
   patients to improve their health and         of color; in Atlanta, 75% are people of
   begin their path toward recovery.            color; and in Portland in 2019, 70 %
   Sustained recovery will provide better       were people of color.
   opportunities for employment and
   increase their likelihood of completing
   educational opportunities. State officials
   have already removed Medicaid policy
   barriers, applied for additional grant
   funding and expanded Medicaid. The
   PTF recommends leveraging available
   federal resources to continue the
   expansion of state support for addiction
   treatment throughout Michigan.

24. Establish Community Land Trusts

   Shared equity housing models are
   successfully being used in other states
   to create home ownership opportunities
   for low- and moderate-income families
   who would not otherwise qualify as
   homeowners. The Community Land
   Trust shared equity model increases

                  LABOR AND ECONOMIC OPPORTUNITY      2021 POVERTY TASK REPORT         18
EDUCATION POLICY                                     This would benefit ALICE families in
RECOMMENDATIONS                                      several ways, including reducing their
                                                     out-of-pocket costs for child care and
“The policy recommendations from the                 freeing money for other necessities.
Poverty Task Force are an important                  Additional child care support also
                                                     makes it easier for ALICE families to
first step in assisting residents in the
                                                     access the labor force, increasing
State of Michigan and I appreciate
                                                     their earning potential. Finally, it helps
the fact that the ALICE population are               families afford higher-quality care,
considered in this work. From an early               which can provide long-term benefits to
childhood perspective, these steps                   children, including potentially increasing
are necessary to continue the work                   their earning potential in the long run.
that has begun in this state and will
continue to help our youngest residents           26. Expand Availability of School
and their families. Additionally, from               Breakfast Programs
a trauma perspective, these are the                  The PTF recommends expanding access
beginnings of a solid foundation to                  to the school breakfast programs to ALL
begin to address the trauma and build                full-time pupils enrolled and in regular daily
resilience in people across the state.”              attendance at each public school in its
                                                     district (independent of free or reduced-
- Gretchen Wagner, Director of Early                 price eligibility). Revised School Code
Childhood Education, Bay-Arenac ISD                  Act 451 of 1976 states if 20% or more of
                                                     students qualify for free or reduced-price
25. Increase Michigan’s Income Eligibility           eligibility, then a breakfast program must
   for Child Care Services                           be served. This should be changed to
                                                     ensure that all students have access to
   The Child Development and Care (CDC)              a breakfast (as they do for lunch). Even
   program is Michigan’s implementation              in districts with less than 20%, there are
   of the federal Child and Development              students in need of breakfast.
   Care Block Grant. The CDC helps
   families afford child care. Families can
   qualify for support if they meet eligibility
   guidelines, including needing child
   care for an approved activity such as
   employment or education programs.
   Michigan's current income eligibility
   threshold is 130% of the federal poverty
   line. The PTF recommends a long-term
   program eligibility goal of 180% to 250%
   in Michigan.

                   LABOR AND ECONOMIC OPPORTUNITY          2021 POVERTY TASK REPORT             19
27. Expand Breakfast After the                  29. Expand Great Start Readiness Program
   Bell Programs
                                                   The PTF recommends expanding
   The PTF urges the State Legislature             access and eligibility with State School
   to pass legislation to require breakfast        Aid funding for Michigan’s proven
   after the bell implementation for all           effective preschool model, the Great
   school buildings with 60% or more free          Start Readiness Program (GSRP). The
   and reduced-price eligible students.            program helps four-year-old children
   Challenges such as unreliable                   who are at risk of school failure to reach
   transportation and negative stigmas             a statewide target enrollment rate of
   often stymie efforts to get children            90%, when combined with the children
   who are eligible for free breakfast at          served by the federally funded Head
   school to access the meal before the            Start program.
   school day begins. Breakfast after the
   bell programs eliminate these barriers          According to U.S. Census American
   and provide students with a healthy             Community Survey 2018 data, there
   breakfast to start their day. Eating            are 64,148 four-year-old children in
   breakfast also decreases chronic                Michigan who are at or below 250% of
   absenteeism. By providing students              the federal poverty level. Currently, the
   breakfast after the bell, the meal is           federally funded Head Start program is
   more likely to be consumed, which not           exclusively serving 6,899 (or 10.75%)
   only leads to decreased absenteeism             of those 64,148 four-year-old children.
   but also increased nourishment for              When accounting for the four-year-
   students who are in ALICE households.           old children served by GSRP (including
                                                   GSRP/Head Start Blends) and those
28. Eliminate “Pay to Play” Fees for Free          served exclusively by Head Start, this
   and Reduced-Lunch Students                      leaves an unmet need of 20,109 low-
   Extracurricular activities that build           income four-year-old children who
   confidence, teach important life skills         would benefit from GSRP at the 250% of
   and strengthen ties to school are critical      FPL. Gov. Whitmer has requested $32
   to a child’s development, but far too           million to expand the program.
   often low-income children are locked out
   these opportunities because they cannot
   afford to pay school fees for them. The
   PTF recommends legislation that would
   make “pay to play” illegal for free and
   reduced-price lunch eligible children.

                  LABOR AND ECONOMIC OPPORTUNITY         2021 POVERTY TASK REPORT          20
04. POLICY RECOMMENDATIONS
   WITH SIGNIFICANT BUDGET
   IMPLICATIONS

     LABOR AND ECONOMIC OPPORTUNITY   2021 POVERTY TASK REPORT   21
COVID-19 has threatened not only the             FIP recipients with children a monthly
state’s health and economic stability but        payment enhancement that can be
also Michigan’s bottom line. Many of the         used for non-food purchases.
bold policy initiatives that are needed
to rebuild the state’s social safety net
and give support to ALICE households          ECONOMIC POLICY
will require investment. The following        RECOMMENDATIONS
recommendations are not likely to get
                                              31. Redesign, Expand and Increase
traction in the 2022 budget year. However
                                                 Access to Michigan’s EITC
the PTF believes they have merit and
should be part of a larger discussion about      The Earned Income Tax Credit (EITC)
the state’s anti-poverty policy priorities.      has been one of the most successful
                                                 anti-poverty tools of recent decades.
                                                 In addition to incentivizing work, the tax
BENEFITS POLICY
                                                 credit gives struggling families a much-
RECOMMENDATIONS                                  needed infusion of cash. Michigan’s
                                                 EITC is 6% of the federal credit. The
30. Funding for Non-Food Purchases
                                                 Whitmer Administration has been
   People who rely on both FIP payments          supportive of expanding the EITC and
   and food assistance have struggled            the governor proposed doubling it to
   to purchase necessary products such           12% in an earlier budget (this increase
   as cleaning supplies, which have been         was not enacted).
   especially critical during the COVID-19
   crisis, because the Bridge card cannot        Research has demonstrated that
   be used for non-food purchases. The           the federal EITC has led to positive
   Poverty Task Force will work with DHHS        health outcomes for parents and
   to identify funding to give a subset of       children, higher test scores for children,
                                                 increased high school completion and
                                                 college attendance rates. Increasing
                                                 the state’s EITC from 6% to 20% would
                                                 be a good policy change but would cost
                                                 an estimated $266 million a year.

                                                 While expansion of the state’s EITC
                                                 is not likely in the near future, the PTF
                                                 highly recommends this as an effective
                                                 strategy to help low-income working
                                                 families gain financial security and
                                                 should be on the table as a strategy that
                                                 could be phased in over a period of time.

                  LABOR AND ECONOMIC OPPORTUNITY       2021 POVERTY TASK REPORT           22
EDUCATION POLICY                               33. Establish a Child Support
RECOMMENDATIONS                                   Pass-Through for Families Who
                                                  Receive Cash Assistance
32. Eliminate Reduced-Price Fee for               The PTF recommends the
   School Breakfast and Lunch Meals               implementation of a full child support
   Many ALICE families fall in the reduced-       pass-through for current and
   price category, for breakfast and lunch        former cash assistance families and
   meal programs. The PFT recommends              those funds should be disregarded
   eliminating the entire fee in the reduced      in determining eligibility for cash
   fee for meals category to greatly benefit      assistance. Currently, any child support
   struggling families. The state would need      over $100 for one child or $200 for two
   to supplement these costs. There are           or more children paid to someone while
   twelve other states plus the District of       they are or were on assistance is used
   Columbia that have eliminated the reduced      to reimburse state and federal TANF
   meal price category using state funds.         funds. While the state created a partial
                                                  pass-through in January 2020, the PTF
                                                  recommends that state officials take
HEALTH, SAFETY AND HOUSING                        steps to implement a full pass-through.
POLICY RECOMMENDATIONS                            Because this change will mean the
                                                  state would forgo approximately $30
"As I talked to community leaders and             million in cost recovery, we recognize
legislators across the state in 2020, I           that this is not a strategy that could be
repeatedly heard about the need for               implemented immediately, but it is one
more housing resources. The Housing               worth pursuing to get those dollars into
and Community Development Fund is                 the hands of low-income single parents.
a proven solution that simply needs a
dedicated funding source. When funded,
it has leveraged each state dollar into $11
of additional investment, creating jobs
and homes for those in need."
- Luke Forrest, Executive Director,
Community Economic Development
Association of Michigan (CEDAM)

                  LABOR AND ECONOMIC OPPORTUNITY        2021 POVERTY TASK REPORT        23
34. Expand Home-Visiting Programs and         ਅ Define the scope of the home visiting
   Maternal-Infant Health Initiatives           system and identify the gaps that
                                                need to be filled to put that system in
   There are programs that provide              place. This recommendation requires
   nurse home visits to pregnant women          minimal financial investment.
   with no previous live births, most of
   whom are low income, unmarried and         ਅ Establish administrative rules for
   teenagers. The nurses visit the women        the home visiting system. The
   approximately once per month during          recommendation requires minimal
   their pregnancy and the first two years      financial investment.
   of their children’s lives. The nurses
   teach positive health-related behaviors,   ਅ Utilize results of statewide needs
   competent care of children and               assessment to determine appropriate
   maternal personal development (family        communities to expand home
   planning, educational achievement and        visitation. Utilize needs assessment
   participation in the workforce).             and local community input to
                                                determine appropriate model (e.g.,
   To accomplish this policy goal, the          Healthy Families America, Early Head
   PTF recommends the following:                Start, Parents as Teachers, etc.) to
                                                implement based on community
   ਅ Implement home visiting screening          gaps. Startup costs are estimated to
     policy for social determinants of          be $500,000.
     health across all home visiting
     models. This recommendation will
     require minimal financial investment.
     Utilize Centers for Medicare &
     Medicaid Services (CMS) policy for
     expanding Medicaid coverage of
     appropriate evidence-based home
     visiting models in Michigan. Policy
     will require additional Medicaid
     dollars to be spent to support
     home visiting. Costs depend on
     the Home Visiting Model selected
     to be implemented. A minimum
     of $500,000 is necessary for a
     new program. Other home visiting
     programs will be slightly less.

                 LABOR AND ECONOMIC OPPORTUNITY     2021 POVERTY TASK REPORT         24
ਅ Identify potential centralized access
                              opportunities to enhance family
                              connection to appropriate home
                              visiting program. Establish policy
                              and funding opportunities for
                              Community Health Workers (CHW)
                              to support connecting families to
                              home visiting as part of the larger
                              early childhood system. Costs for a
                              centralized access system estimated
                              at $250,000 per year per region.
                              The estimated cost for 10 statewide
                              regions is $2.5 million per year. CHW
                              costs would vary across counties and
                              would be a minimum of two CHW
                              per region, estimated at a cost of
                              $400,000 per region per year. For
                              ten statewide regions, estimated
                              costs are $4 million per year.

                        35. Housing and Community
                            Development Fund
                            The Housing and Community
                            Development Fund is an affordable
                            housing program to increase the
                            supply of affordable housing for
                            extremely low and very low-income
                            households, including homeless
                            families and individuals and people
                            with special needs. However, it has
                            been inadequately funded. The PTF will
                            promote the importance of identifying
                            consistent funding sources for this vital
                            program. It is estimated that $10 million
                            annually is needed to have the desired
                            impact. Gov. Whitmer has requested
                            $10 million in the fiscal year 2022
                            budget for this program.

LABOR AND ECONOMIC OPPORTUNITY    2021 POVERTY TASK REPORT         25
05. 2020 ACCOMPLISHMENTS

     LABOR AND ECONOMIC OPPORTUNITY   2021 POVERTY TASK REPORT   26
The COVID-19 crisis has demonstrated               EDUCATION
that with federal support and adjustments
to bureaucratic red tape, state government         Michigan Reconnect Funding
can be nimble and effective in its efforts to      The Legislature allocated $30 million in
assist Michigan’s poorest families. Here are       the state’s fiscal year 2021 budget to
examples of policy adjustments, legislation        provide scholarships to adults seeking a
and pilots that were wins for the state’s          postsecondary education. LEO launched
anti-poverty efforts in the past year.             the program in February 2021. Gov.
                                                   Whitmer has recommended $120 million
HEALTH, SAFETY AND HOUSING                         for FY 2022, to continue her commitment
                                                   to this program.
Expanded Support for Syringe
Service Programs                                   Futures for Frontliners
Programs that supply addicts with syringes         Futures for Frontliners is a state scholarship
                                                   program for Michiganders without college
have been proved to increase public safety,
                                                   degrees who worked in essential industries
and reduce deaths caused by addiction.
                                                   during the state COVID-19 shutdown
In 2020, syringe service programs have
                                                   in spring 2020 (April 1-June 30). This
expanded from four sites to 61 sites, with plans
                                                   scholarship provides frontline workers with
to expand further. The 21,000 clients served
                                                   tuition-free access to community college
through the first three quarters of FY20 is a      to pursue an associate degree or a skills
50% increase over the previous year.               certificate, either full time or part time while
                                                   they work. Over 120,000 Michiganders have
The 10 Cents a Meal Farm-to-School
                                                   applied for the scholarship. Gov. Whitmer
Pilot Program Expansion
                                                   has included $60.4 million to continue this
The 10 Cents a Meal for School Kids and            vital program in 2022.
Farms is a state pilot program that provides
schools with up to 10 cents per meal in            Additionally, Gov. Whitmer has requested
match funding to purchase and serve                $12 million to provide wraparound services
Michigan-grown fruits, vegetables and              to support single parents enrolled in
dry beans. It has been a pilot project for         Reconnect and Futures for Frontliners.
over the last three years in several regions       Skills to Work
of the state. Funding was increased from
$575,000 to $2 million for the FY21 budget.        Skills to Work was developed to serve as a
                                                   digital hub to connect residents with online
                                                   learning opportunities and other training
                                                   resources. The online resource provides
                                                   Michiganders who are looking to return to
                                                   work, explore in-demand careers, learn new
                                                   skills or take the first step toward a degree

                    LABOR AND ECONOMIC OPPORTUNITY           2021 POVERTY TASK REPORT           27
or certificate. The hub is a one-stop shop       In many of these cases, individuals are failing
to help Michigan workers expand their            to appear in court because they lack the
opportunities in an evolving economy.            funds to pay various court costs and fees,
                                                 but arresting them and placing them in jail
Free CLEP Tests and Courses                      jeopardizes their employment, perpetually
As citizens of Michigan are looking to           keeping them income constrained and in
further their education and potentially earn     debt to the criminal justice system.
additional college credits, LEO has entered
into a partnership with Modern States,           Ending the reliance on warrants and arrests
which will offer 10,000 free College Level       to enforce appearances before the court
Examination Program (CLEP) tests for             will help individuals maintain employment
Michigan adult learners through December         and engage in a manner with the court
2021. Successful passage of a CLEP               where they can constructively work to
exam will allow learners to test out of core     address any obligations. Contact with the
college courses and save tuition dollars. The    criminal justice system impacts the financial
partnership will also provide test preparation   stability of not only the individual but also the
courses for eligible adult learners.             family unit. Placement in jail during pretrial
                                                 is likely to lead to job loss and may result
                                                 in the loss of public benefits. By limiting
CRIMINAL JUSTICE                                 unnecessary pretrial incarceration, collateral
                                                 consequences that result in households
Reducing Arrests for Failure to Appear           losing financial stability could be avoided.
and Pretrial Release Conditions
Failure to appear in court is the most           Michigan Clean Slate Legislative Package
common reason for arrest. Recently               In Oct. 2020, Gov. Whitmer signed a
signed legislation allows the issuance of an     package of bills to greatly expand the
appearance ticket by an arresting officer,       number of people who are eligible to have
instead of taking a person into custody,         their felony and misdemeanor convictions
for low-level misdemeanors. The package
also allows a probationer to be considered
for early discharge when fines and fees are
still owed, as long as there is an effort to
make payments. Courts would be required
to ensure that individuals in contempt
for nonpayment of fines are able to pay
before imposing additional sentences. This
legislation saves counties and communities
limited funds by reducing the use of police
and jail resources simply to enforce failure-
to-appear warrants.

                   LABOR AND ECONOMIC OPPORTUNITY           2021 POVERTY TASK REPORT           28
expunged and automatically hide certain         BENEFITS
convictions from public view. According
to a University of Michigan study, people       Expansion of Unemployment Benefits
who have a conviction expunged see their        Through federal and state administrative
likelihood of employment increase 11% and       action, eligibility for unemployment benefits
their income rise 25% within two years. The     was boosted to a total of 59 weeks for
bills are also expected to give hundreds of     workers whose jobs were affected by
thousands of Michiganders access to jobs,       COVID-19. And access was also expanded
housing and opportunities that are blocked      to self-employed workers, those who were
off to them because of their convictions.       sick or needed to care for a loved one
                                                because of COVID-19. These funds have
State Identification Pilot Program              been instrumental in helping Michiganders
for Parolees                                    provide for their families during the crisis.
In 2020, MDOC and Secretary of State
Jocelyn Benson launched a pilot program         Simplification of Redetermination
that will provide a state ID when a parolee     Process to Allow for Continued Support
reenters the community. Through                 MDHHS has streamlined the entire
the initiative, MDOC obtains required           benefits delivery process and cut its
documents, paperwork and photos for             redetermination forms and benefits
individuals designated for parole and sends     application by more than half. MDHHS
that information directly to the Michigan       went through a human-centered design
Department of State, where either a             process. As a result, there is a much higher
driver’s license or state ID is processed.      annual recertification rate for benefits.
Parolees will also be registered to vote
upon release, unless they choose not to be.     Streamlining the Application Eligibility
Lack of identification is a major barrier for   Period for the PATH Program
employment, housing and other efforts to        PATH is a program where applicants who
reintegrate into society after incarceration.   receive cash assistance will take part in a
                                                robust, results-oriented work participation
                                                program. The program features an
                                                assessment period during which barriers to
                                                employment are identified and caseworkers
                                                work individually with clients to connect them
                                                with resources to address these barriers
                                                PATH workers are assigned to schools to
                                                assist students and families who meet the
                                                TANF criteria, where they provide resources
                                                to children and families to help obtain

                   LABOR AND ECONOMIC OPPORTUNITY         2021 POVERTY TASK REPORT         29
the necessary resources (food, clothes,         assistance programs, families could not
housing, etc.) so children can remain           have more than $3,000 in assets or more
focused on schoolwork.                          than $5,000 in assets for food assistance.

Pandemic Electronic Benefits                    The new asset limits put Michigan more in
Transfer (P-EBT)                                alignment with most other states, which
MDHHS collaborated on the first federally       have concluded that stringent asset tests
approved P-EBT program in the country.          are counterproductive. Currently, 34 states
MDE requested United States Department          have no asset test for food assistance
of Agriculture (USDA) waivers that              under the federal Supplemental Nutrition
permitted 2,000 mobile and stationary           Assistance Program (SNAP).
feeding operations in the state once
in-person instruction had ceased in the         ECONOMIC
spring. These mobile and stationary feeding
operations produced and distributed more        MI Tri-Share Child Care Pilot
than 100 million meals since the beginning
                                                Through a $1 million pilot funded in the
of the pandemic.
                                                2021 budget, employers in three Michigan
                                                communities will share one-third of their
Through an administrative change, the           employees’ child care costs, with the other
assessment period was reduced from              two-thirds coming from the employees and
21 days to 10 days.                             state government. This approach will help
                                                make child care costs more affordable for
Asset Test Policy Change                        Michigan families and help employers retain
On Nov. 1, 2019, Gov. Whitmer announced         talent. Gov. Whitmer has requested $2.2
a policy change that allowed families to have   million in the FY 2022 budget to further
up to $15,000 in assets and still be eligible   support this pilot program.
for food assistance, cash assistance and
State Emergency Relief.

Before the policy change, Michigan had
among the most restrictive asset tests in
the nation for people applying for public
assistance benefits. In order to tap State
Emergency Relief for assistance to prevent
utility shutoff or furnace repairs, a family
could have no more than $500 in assets.
To be eligible for the $3,000 for the Family
Independence Program and other cash

                   LABOR AND ECONOMIC OPPORTUNITY        2021 POVERTY TASK REPORT        30
APPENDICES

LABOR AND ECONOMIC OPPORTUNITY   2021 POVERTY TASK REPORT   31
A SNAPSHOT OF
                                                      13%
                                                                     Percent Below
POVERTY IN MICHIGAN                                                  Poverty Level

Population: 9,986,857
Median income: $59,584                                17.6%             Under 18 Years
                                                                        Below Poverty Level
Above poverty level, below the ALICE Rate: 29%
ALICE or below: 43%

                                                      11.7%
                                                                        With Food Stamp/
Life expectancy: 77.9 years
                                                                        SNAP Benefits
Single-parent households: 34.2%
Homeless by 5th grade: 7.6%                           Source: Michigan Poverty Solutions

Percent Below Poverty Level by                   Percent Below Poverty Level by
Race/Ethnicity                                   Educational Attainment
                                                 (Population 25 years and over)
ਅ White – 10.3%
                                                 ਅ Less than High School Graduate – 26.3%
ਅ Black – 25.9%
                                                 ਅ High School Graduate – 13.8%
ਅ American Indian and Alaskan
  Native – 24.6%                                 ਅ Some College, Associate Degree – 9.5%

ਅ Asian – 10.6%                                  ਅ Bachelor’s Degree or higher – 3.9%

ਅ Hispanic (of any race) – 22.2%
                                                 Percent Below Poverty Level
Percent Below Poverty Level by Sex               (Top Five Counties)

ਅ Male – 11.9%                                   01. Isabella – 26.0%

ਅ Female – 14.0%                                 02. Clare – 22.7%

                                                 03. Wayne – 22.3%

                                                 04. Mecosta – 21.2%

                                                 05. Lake – 21.0%

                   LABOR AND ECONOMIC OPPORTUNITY          2021 POVERTY TASK REPORT         32
You can also read