Michigan is moving in the right direction in providing more child care options for working families, Public Policy Associates (PPA) reported this week, but more can be done.
The results of the five-year study come as the federal government awarded Michigan a $33 million grant designed to lower child care costs and further improve programming.
“Overall, expanded eligibility and rate increases led to more families enrolling their children in high-quality programs and staying in them longer, which supports child development and helps parents,” said PPA Project Director Colleen Graber. “Child care challenges remain, but Michigan is moving in a positive direction.”
Two state departments – the Department of Lifelong Education, Advancement, and Potential (MILEAP) and the Department of Health and Human Services (DHHS) – partnered with PPA on the project, which explored the Child Development and Care Scholarship (CDC) program, among other things.
More than 32,000 children went to child care because of the CDC in December 2022 as their parents go to work or school.
PPA recommended the CDC program pay child care providers at a rate that’s closer to the cost of service. It also recommends that CDC eligibility be set at no less than 200% of poverty. Also, further research is needed to figure out why some families don’t use the CDC, according to the report.
The consulting firm also recommended investing in increased provider supply and more child care slots and helping parents figure out where there are open slots for their children.
Single-income families spend 36 percent of their income on childcare and two-income families typically spend 15 percent, which is above the 7 percent max recommended by DHHS.
According to the report, Black families benefit most from eligibility increases and more high-quality childcare providers.
Rural areas used the scholarship program the least and areas like Metro Detroit had the highest rates of scholarship use and the highest concentration of childcare providers.
During the five-year study, Michigan increased payment rates to providers and saw improved childcare continuity because of the stabilization grants.
On Oct. 1, it was announced that Michigan would receive a three-year $33 million grant from DHHS to lower childcare costs and increase the number of providers throughout the state.
Gov. Gretchen Whitmer touted the Tri-Share Child Care program that was piloted in 2021 and meant to help parents through splitting the cost between business, the state, and parents.
MILEAP plans to use the new $33 million grant to attract talent and make it easier for employers to offer healthcare and retirement benefits to early childhood workers. It would try to improve wages for childcare professionals while keeping the cost of childcare down. The money will also go toward finding substitutes when someone is out sick, and provide free training in early literacy and support for disabled children.
Small Business Association of Michigan CEO Brian Calley said access to affordable childcare was critical to employees and employers. He said they would back solutions.
“This grant supports our ongoing efforts to support the childcare industry and its infrastructure, ultimately benefiting not only childcare providers but also the many businesses that depend on working parents,” Calley said.
MILEAP Director Beverly Walker-Griffea said that, as of Aug. 31, more than 1,600 new childcare licenses were issued and more than 2,000 expanded licenses were granted after the launch of Caring for MI Future in May 2022.
The program set a goal of opening 1,000 new childcare providers by the end of 2024.
“Michigan families and our economy depend on access to affordable and high-quality childcare. Caring for MI Future shows just how much we can accomplish when we all work together to advance an important goal,” Walker-Griffea said.
She also praised the federal government for investing in Michigan childcare and said the money would be used to grow the already successful programs in the state.
Article courtesy MIRS News for SBAM’s Lansing Watchdog newsletter
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