POVERTY TASK FORCE REPORT 2021 - State of Michigan
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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
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
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 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
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