Michigan’s budget is the clearest reflection of our state’s priorities. With anticipated general revenue shortfalls projected at the May Consensus Revenue Estimating Conference and uncertainty at the federal level, now more than ever, it’s critical that young children and their families remain at the center of the state’s budget priorities. While much work is still ahead for Michigan’s lawmakers to finalize a state budget, proposals indicate a need for legislators to be better informed on how important funding streams benefit families with young children, and how proposals could negatively impact families with young children.
What’s at risk?
Some key budget differences between the House and Senate budget proposals that will impact families with young children are as follows.
Child Development and Care (CDC) Child Care Scholarship: While the Senate provides an additional $23 million to increase the CDC child care scholarship provider reimbursement rates, the Executive and House proposals do not include this investment. Additionally, the Governor ($50 million) and Senate ($40 million) propose investing funds to comply with federal requirements regarding implementation of prospective payments for providers and to contract services to improve child care access for infants and toddlers, children with disabilities, and those in underserved geographic areas; but the House does not include this investment.
Why this matters: Michigan’s child care scholarship reimbursement rates continue to fall short of the true cost of providing child care, meaning the child care workforce continues to be some of the lowest paid workers in our state. Increasing rates, providing prospective payments, and utilizing contracts will provide the financial stability child care businesses need so working families can have reliable, high quality child care.
Early Childhood Block Grant: While the Governor and the Senate maintain funding ($19.4 million) for the Early Childhood Block Grant (sec. 32p in the School Aid Act), which funds Great Start Collaboratives (GSCs), Great Start Family Coalitions (GSFCs), and home visiting funds that are overseen by Intermediate School Districts (ISDs), the House eliminates the Early Childhood Block Grant and rolls it into a new per-pupil line item to ISDs with no specificity on how those funds are to be used.
Why this matters: The Early Childhood Block Grant supports local early childhood systems that are developed with and for families, early childhood providers, businesses, and community leaders. The work of GSCs and GSFCs provides the strategic roadmap for communities to support families with young children so they all can thrive. Eliminating this dedicated funding stream could decimate the decades of community-based collaboration that support high quality local early childhood systems.
Great Start Readiness Program (GSRP)/PreK for All: The Governor and Senate continue to propose investments to realize PreK for All by increasing the GSRP per pupil allotment, eliminating GSRP’s income eligibility cap to make eligibility universal, and continuing to support a $25 million investment for GSRP start-up grants; whereas the House maintains the current per pupil allocation, maintains the current eligibility cap at 400% of the federal poverty level, and eliminates the $25 million for start-up grants. Additionally, while the Governor and Senate both propose to continue to expand the 3-year-old Smart Beginnings PreK pilot, the House eliminates it.
Why this matters: GSRP was built upon a mixed delivery early care and education system that relies on community-based child care partners. Eliminating start-up grants for GSRP would negatively impact the role that community-based child care providers would have in the future of building out a robust mixed delivery early care and education system for young children birth through age five.
What You Can Do: Elected Officials Need to Hear From You
This is a critical moment for Michigan’s early childhood community. The decisions made over the next few weeks will shape the future of our state’s early childhood system. That’s why we’re calling on families, providers, and community partners to educate their lawmakers on the importance of these programs and ensure that legislators make family focused investments on behalf of Michigan’s youngest residents.
Use this tool to find your legislators.
Families: Your story matters! Share your experiences – both the challenges and bright spots – related to child care and the early childhood system; and let your lawmakers know why stable, reliable child care matters to you. If you’re part of your local GSC and/or GSFC, tell them why those collaboration tables matter to you and your family.
Providers: As a small business, an educator, and a vital support for families in your community, inform lawmakers about the importance of your program for working families in your community. Tell lawmakers about how strengthened CDC scholarship payment structures can support the stability of your business, the value of GSRP start-up grants to expand your program offerings to include GSRP, and how your local GSC/GSFC supports a well-coordinated early childhood system in your community.
Community Partners: Your leadership makes Michigan’s early childhood system work, from tribal partners and faith-based groups to local neighborhood nonprofits. Share the ways state dollars – including child care scholarships, GSRP, and GSC/GSFC funding – support local early childhood collaboration, infrastructure, and families in your community.
To ensure our youngest children continue to thrive, we must raise our voices and ensure our lawmakers understand how their decisions may impact young children, families, and communities. This is not just a budget issue. It’s a values issue. It’s about protecting our children and the future of our state.
Stay informed by following ECIC and checking our FY26 Budget Tracker.