“Tens of thousands more Michigan families soon will have access to subsidized child care. In parts of the state where child care is in short supply, new funds will help open new centers. Existing centers, many of which struggled to stay open during the pandemic, also will get an infusion of stabilization funds.” ~ Chalkbeat Detroit
We are so excited to share the latest state budget news which includes a historic investment ($1.4 billion!) in child care spending. This investment makes care low or no cost for 105,000 more children, provides $700 million in relief funding for child care businesses and delivers up to $1,000 bonuses for 30,000+ child care professionals.
There is a lot included in this budget, but some highlights include:
For our Early Childhood Education providers in Detroit, here are some additional details:
1 – Child Care Stabilization Grants: To help providers stay open, the budget includes over $700 million for grants to child care providers. The budget reflects feedback from Hope Starts Here and partners about how these funds should be allocated.
Grants will be awarded in two payments—one this fall and one in the spring. It will also include extra funding for bonuses for staff! The Michigan Department of Education (MDE) is working as quickly as possible to launch these grants. We know the need is urgent. We’re excited to share more very soon. Stay tuned for more information.
2 – Rate increases: For providers that accept the child care subsidy, the budget includes rate increases. There will be an ongoing rate increase and temporary increases to support your continued COVID response. MDE will provide updates over the next several weeks to rate tables, billing systems, and more.
3 – Enrollment vs. attendance billing: For providers that accept the child care subsidy, the budget continues to allow billing on enrollment instead of attendance. MDE will release an updated memo prior to October 1 that explains how and when to use this billing method.
4 – Expanded subsidy eligibility: The budget expands access to the child care subsidy for families. The new income eligibility will be 185% of the federal poverty level –that’s $32,227 for a family of 2, $40,626 for a family of 3, and $49,025 for a family of 4.
This historic opportunity would not have been possible without the connected and collaborative work between all teams, organizations, and people invested in the future of all Michigan children. This budget is a testament to collaborative impact -when we work together we can do amazing things for our kids!
Stay tuned for more updates from our partners at the Department of Education and our Michigan legislature. Thank you for being a part of this historic moment for Detroit children and continuing to fight for kids every day.