Gentry

The Detroit Regional Chamber President and CEO Sandy Baruah and Henry Ford’s President & CEO made this very clear at the Mackinac Policy Conference this past week. The also made it clear that in order to correct the course, we must first recognize that we have a problem and then work together on solutions that will last no matter which political parties have control in our state. Detroit Mayor Mary Sheffield made clear that poverty alleviation is crucial to population and economic growth.

Michigan has dropped from 18th to 40th nationally since 2000 when it comes to per capita income. If we had stayed at 18th, Michiganders would have $8,000 more annually in income to spend on basic necessities they need to not just survive, but thrive.

It is important that our leaders understand the urgency of what families and children in our state are facing right now. Food prices have risen by more than 20% since January 2022, and for many families, even full-time work doesn’t pay enough to cover skyrocketing costs of other basic necessities like gas and childcare. Nearly half – 44% – of northeast Michiganders either live below the poverty line or simply don’t make enough money to get by in these challenging times.

The impacts if the “One Big Beautiful Bill Act” (OBBBA) are causing further devastation for Michiganders who rely on Medicaid, the Supplemental Nutrition assistance Program (SNAP) and other services. But it is important to recognize that even before OBBBA, our social safety net wasn’t and still isn’t catching all the people who need support.

The Family Independence Program (FIP) only provides benefits to less than 2 % of families in poverty in Michigan. That’s not because our poverty level is low. Latest data shows that 13 % of Michiganders state wide (17% in northeast MI) are living in poverty and that includes 375,000 children statewide. Families that do not receive FIP benefits receive a payment that has barely increased since 1993 and is far from what most families need to get ahead. OBBBA will only make things worse for these families.

This is not a partisan issue and political leaders have a roadmap to solve poverty. Cash is what struggling families need most in order to afford the basics like diapers, food, gas, medication and more. The enhanced federal Child Tax Credit during the pandemic had a direct economic impact on poverty. These payments helped child poverty rates drop significantly, while family debt went down and credit scores went up at the same time. The Michigan child supplemental poverty rate level fell by 73.5%. The state went from 12% of kids living in poverty to just 2%! That was not magic. It was money. The data encourages federal representatives to bring back the enhanced federal Child Tax Credit and bring a new state-level Child Tax Credit.

Rx Kids is another winning formula for Michigan families and children. It started in Flint and is expanding rapidly to over 30 locations across the state because it works. (Thanks to Dr. Bates, Thunder Bay Health and CFNEM for supporting this program in Montmorency County) In its first pilot year in Flint, poverty for kids under age 5 went from 62% to 32%. Again, it’s not magic. It’s cash. If we lean into our values and look at what the numbers are telling us, we can solve poverty for all Michigan families regardless of their political affiliation or ZIP code.

Our message to our Michigan lawmakers and leaders is clear: using the tools we have to mitigate financial Hardship for Michigan families will transform the futures of hundreds of thousands of kids.