Saturday, May 18, 2024

State budget update for Interfaith Action of SW Michigan

 While the national media focuses attention on the goings on in Washington D.C., often what happens in Lansing more directly impacts the daily lives of our neighbors.  As the Rev Jim Wallis of Sojourners and others have said “A budget is a moral document.”   Governor Whitmer and legislators are working urgently on that moral document now.

Governors normally release their proposed budget in early February. For people of faith paying close attention starting as early as March we can impact the construction of the budget.  Annually, the legislature sets a goal to finalize the budget for the Governor’s signature before the end of June.  The annual Revenue Consensus Estimating Conference meeting of economists from the three branches of state government was May 17.

In other words, NOW is not too late for people of faith to let our state legislators know our concerns and opinions on the state budget before it is finalized.  The Michigan House has passed its versions of most departmental budgets as has the Michigan Senate.  Now that the May 17 meeting is over the Senate and the House will have to reconcile their two versions before the budget advances to the Governor’s desk.

Here are a few topics that are currently being discussed in Lansing related to the budget that may be of concern to people of faith:

According to the Michigan League for Public Policy, 79,660 families received Family Independence Payments (FIP) or cash assistance in 2011.  Last year only 12,000 families received FIP.   Several years ago, a 48 month life-time limit for FIP benefits was implemented.

Per the MLPP, “the 2023 maximum income for initial eligibility (for FIP) was equal to only 39% of the federal poverty threshold... In other words, only families in “deep poverty” (meaning their earnings and benefit combined would equal less than 50% of the poverty level) who apply for cash assistance are eligible today.”

How much is the monthly FIP payment?  For a family of three headed by a single mother, the maximum payment is $492 per month.  That amount has not changed since 2008.  MLPP indicates that $492 monthly is only about 24 percent of the poverty level.  Thus, even with the maximum FIP payment a family of three is still below the federal poverty level.

Michigan House Bill 5556 would increase the FIP payment standard (income level where families are eligible for the payment) by 25 percent.  That same bill would increase the lifetime limit to 60 months.  Senate Bill 767 also attempts to strengthen FIP by extending time limits and taking a slightly different approach according to the Senate Fiscal Agency by increasing FIP funding by “$40.0 million… to support an increase in the FIP small child supplement and an expansion to older children.”  

Can people of faith agree that strengthening FIP for families below the poverty line should be included in any “moral” budget?

Since 1994 when voters in Michigan approved Proposal A, which radically changed Michigan’s funding for K-12 schools, the legislature has improved equity in funding between school districts.  Many, perhaps most, school districts would say this was a good thing.

However, not all school children are alike nor are their families.  In addition to the basic foundation grant, the School Aid budget includes funding for At-Risk students (the second largest category of school aid), English Language Learners, and other categories.  The sections of the School Aid budget which assist these students are section 31a for At-Risk students and section 41 Bilingual education.

At-Risk funding is allocated to school districts based on their numbers of economically disadvantaged students, students who are homeless, students receiving Temporary Aid for Needy Families (TANF), and migrant students.  Based on this definition, school districts in Southwest Michigan qualify for At-Risk funding with a high of 58% students in Berrien County to a low of 41% in Allegan County.  At-Risk funding especially benefits school districts with higher numbers of economically disadvantaged students.  

House Bill 5503 has suggested a 7 percent increase in At-Risk funding.  Senate Bill 751 would increase At-Risk funding by 13 percent.  Improving At-Risk funding will target improving the educational outcomes for students behind grade level in core academic subjects.  At-Risk Funding may also be used for medical, mental health, and counseling services, anti-bullying, and crisis intervention services.  At-risk funding may NOT be used for administrative services.   

The Senate has proposed doubling Bilingual education funding for bilingual services from roughly $40 million this year to almost $80 million next year.  The House would increase Bilingual education by 12 percent.  According to the Census, 10 percent of youth live where a language other than English is spoken in the home and 3 percent of school age youth have limited English proficiency.  

How can people of faith make the state’s budget more of a “moral document”?  Perhaps, by letting our legislators in Lansing know of our concerns before that budget is finalized.  A contact list is provided.

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