POVERTY TASK FORCE REPORT 2021 - State of Michigan
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
2021 POVERTY TASK FORCE REPORT DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
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
01. POVERTY TASK FORCE
OBJECTIVES
LABOR AND ECONOMIC OPPORTUNITY 2021 POVERTY TASK REPORT 3
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
02. POVERTY TASK FORCE
STRUCTURE AND WORKFLOW
LABOR AND ECONOMIC OPPORTUNITY 2021 POVERTY TASK REPORT 5
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
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
03. POLICY RECOMMENDATIONS
LABOR AND ECONOMIC OPPORTUNITY 2021 POVERTY TASK REPORT 8
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
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 10MDHHS 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 1106. 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 1209. 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 1312. 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 1416. 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 15devices 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 16CRIMINAL 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 17HEALTH, 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 18EDUCATION 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 1927. 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 2004. POLICY RECOMMENDATIONS
WITH SIGNIFICANT BUDGET
IMPLICATIONS
LABOR AND ECONOMIC OPPORTUNITY 2021 POVERTY TASK REPORT 21COVID-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 22EDUCATION 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 2334. 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 24ਅ 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 2505. 2020 ACCOMPLISHMENTS
LABOR AND ECONOMIC OPPORTUNITY 2021 POVERTY TASK REPORT 26The 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 27or 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 28expunged 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 29the 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 30APPENDICES 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 32You can also read
