Last week, the Michigan Legislature finalized a bipartisan 2023 budget agreement that includes significant funding for a number of important priorities.

The budget includes a number of investments related to the policy areas and programs the Michigan League for Public Policy has been advocating for this fiscal year — and the many budgets that preceded it — to help babies and parents thrive, support Michiganders with very low incomes, provide more funding to schools in high-poverty communities, improve access to healthy food for all Michiganders, and more.

The Legislature and governor continue to make strong investments in education, giving students the support they need for a better future. In particular, the League was pleased to see full funding for the At-Risk school aid program to support students who are economically disadvantaged or at risk of educational failure.

The 2023 budget also includes a major change in the special education formula. Special education programs will receive more than $1.9 billion, including a $246 million increase in reimbursements to help districts improve services.

With those investments, policymakers continue to make progress on recognizing that state school funding should be aligned with students’ needs. The League will keep advocating for a true weighted school funding formula that achieves that.

The budget agreement follows the governor’s lead to increase cash assistance payments to parents, providing an annual, lump-sum distribution of $600 per child for each kid under the age of 6 that they are raising. That funding is the most meaningful improvement to the state’s cash assistance program in over a decade and will help families with lower incomes with the added challenges of caring for young kids — and better support children’s development at that critical age.

Other positive budget investments for kids and parents includes $25 million for before- and afterschool programs, $25 million to expand access to school-based physical and mental health care, and $1.2 million for a pilot project to expand doula access for high-risk pregnant people.

The 2023 budget also established a diaper assistance program. Vital budget funding for early childhood education and care was also allocated, including the Great Start Readiness Program, Strong Beginnings Program, Early On, and the MI Tri-Share Child Care Pilot Program that recently expanded to include Montmorency County.

The governor and Legislature continued to find common ground on important workforce supports, funding the successful Going Pro and Michigan Reconnect programs at $55 million each and dedicating $250 million to grant programs for economic development and workforce development. Those grants will support workforce training initiatives in key industries, help with barrier removal for workers struggling to return to the labor force, and prepare workers for apprenticeship opportunities in the skilled trades.

There was also bipartisan agreement around directing $700,000 in budget funding to establish a statewide language access plan program. This program will ensure access to services for all state residents, including those who have limited English proficiency.

Finally, while the League is pleased to see resolution on the state budget by the deadline, about $7 billion was saved for ongoing negotiations on tax changes and other priorities.

The League was particularly disappointed that the budget agreement did not include action on a much-needed increase to the Michigan Earned Income Tax Credit (EITC).

Nearly 100 business, advocacy, faith, and nonprofit organizations continue to advocate for increasing the state EITC, including the League, Michigan Chamber of Commerce, Michigan Catholic Conference, Small Business Association of Michigan, Michigan Restaurant and Lodging Association, Michigan Retailers Association, Midland Business Alliance, and chambers of commerce and United Ways from around the state, such as Bay City, Saginaw County, and Northwest Michigan.

When it comes to increasing the Michigan EITC, the money is there, the agreement is there in principle, and the broad, cross-sector outside support is there — nearly universal alignment that is rare to achieve in the Capitol.

It’s time to make this happen, and, as policymakers return home for the summer recess, we urge organizations and residents from around the state to continue to lift up increasing the EITC as a top priority when lawmakers come back to Lansing.

Monique Stanton is president and CEO of the Michigan League for Public Policy.