Our 2022 Policy Priorities
I’ve been proud to be part of the United Way Network for more than 20 years and among the many things I’ve learned, one thing sticks out in today’s ever-changing world: United Ways can’t create lasting change alone. That’s why MAUW has always believed that good public policy plays a critical role in ensuring Michigan families can thrive. As Michiganders continue to feel the personal and societal effects of COVID-19, I believe that now is the time to rebuild and remerge stronger than before the pandemic – our 2022 policy agenda reflects that.
Our public policy agenda is designed to create opportunities for ALICE families – Michigan residents who are working hard, but still struggling to make ends meet. Good public policy can help to address root causes of need, so we advocate for policies that help address the needs of our ALICE households, create greater efficiencies in health and human services delivery, and continue our mission to fight for the health, education, and financial stability of every person in every community.
Earned Income Tax Credit
The Earned Income Tax Credit has grown to become one of the largest anti-poverty, pro-work tools in the United States. Unfortunately, in 2011, the Michigan EITC was reduced to only 6% of the federal credit. An expansion of the EITC offers an opportunity to significantly increase the economic wellbeing of Michiganders, including the hard-working ALICE families who are already forced to make difficult choices like skipping preventative health care, healthy food, or car insurance.
The research shows that families mostly use EITC to pay for necessities – including home repairs and to maintain vehicles to commute to work. Further, the improved financial stability the EITC brings to families has long-term benefits such as improved infant and maternal health, school success, college enrollment, and increased work earnings as children grow into adults.
Not only does the EITC bring families much-needed support, but it helps to grow local economies. In fact, every dollar claimed for the EITC results in $1.50 to $2 in local economic activity – the bigger the credit, the more money spent locally. The EITC is a way to help create a post-pandemic market economy that as it grows, benefits all Michigan families, and has little or no additional administrative costs
The time is now to support a proven tool to positively impact Michigan’s working families, businesses, and communities.
Michigan 2-1-1
Over 1.5 million families struggle to afford the very basics every year and 2-1-1 is the efficient, effective, and non-bureaucratic tool to help meet their needs. Michigan 2-1-1 is a free-to-use, confidential service that connects clients with local community-based organizations across the state offering thousands of different programs and services for people seeking answers. The statewide database provides individuals and families access to nearly 28,000 services in 7,000 local, state, and national agencies across the state of Michigan.
Largely supported by United Way, 2-1-1 is Michigan’s only comprehensive community resource information system. Its innovative and synergistic approach responds to the needs of individuals and communities in crisis 24/7/365. In 2021 alone, Michigan 2-1-1 responded to more than 725,000 requests for assistance. More than half of those requests were for housing, utility assistance, and health care – the basics of the ALICE survival budget.
We know ALICE families need an effective, non-bureaucratic connection to critical resources before basic needs turn into costly emergencies, that’s why we advocate for state support of a strong Michigan 2-1-1 system.
Postsecondary Attainment
For ALICE families, and for all Michiganders, the foundation of a good quality of life begins with meaningful employment opportunities – which often goes hand-in-hand with education attainment.
In Michigan, 75% of all jobs require some postsecondary education. An education beyond high school opens the door to employment opportunities with $7,500 more per year in earnings through a two-year degree.
That’s why we support innovative workforce development programs and models like Michigan Reconnect, which remove financial barriers to credential and degree attainment for working adults. Starting back to school can be a daunting task - free tuition for post-secondary education and wrap-around supports clear the barriers for ALICE families to thrive and address Michigan’s skills gap.
Affordable Childcare
Safe, reliable, and high-quality child care is critical to helping Michigan’s economy get back on track following the pandemic. One of the most powerful ways we can lift up ALICE families is to ensure access to affordable, quality childcare.
Well before COVID-19, families struggled to access suitable childcare. According to the most recent ALICE Report, for an infant and preschooler in childcare, the cost of home-based childcare is more than $13,000 annually, while center-based care is even higher at $18,600 annually. The cost of either option often exceeds the annual cost of housing, food, or transportation for many people.
Child care affordability doesn’t just affect parents and caregivers – it also affects the employers and local economies. When qualified candidates are unable to find available and wallet-friendly childcare, employers have to reach further into the labor pool, a challenge facing many Michigan employers in the wake of COVID-19.
We applaud the historic bipartisan investment in early learning and childcare last year and advocate for continued investments to remove the childcare barrier for ALICE families. Continue increasing childcare provider payments to expand access and expand childcare subsidies up to the ALICE threshold.
Affordable Housing
Like many of the issues that face ALICE families, COVID-19 exacerbated the challenge of finding safe and affordable housing.
For ALICE families especially, finding a financially sustainable home often means spending a disproportionate amount of their income on housing. As a result, they are frequently forced to choose between meeting their basic needs, living in an unhealthy environment, or having long commutes to work. In the worst case, these families face homelessness.
We must ensure that ALICE families to have access to affordable homes.
I’m excited to share more of our policy work with you in the coming months as we work with state and federal legislators to advance our policy goals and create a Michigan where every person can thrive. They say that a rising tide lifts all ships, and the same is true here - strengthening communities by strengthening ALICE families means a higher quality of life for all. Our 2022 public policy agenda aims to do just that.
- Mike