Starting Off with a Shutdown

October 1st marks the beginning of the new fiscal year for both the State of Michigan and the United States.  And boy are they starting off in two completely different but intricately intertwined ways.

Nationally, we’re obviously operating under a partial government shutdown as a result of Congress’ inability to identify a short-term spending plan to maintain operations.  Congress continues to negotiate a short-term plan to fund the federal government and will likely come to some resolution that will maintain fiscal year 2013 funding levels for a little while longer to give them more time to identify a fiscal year 2014 budget.  Of course, the longer this partial shutdown lasts, the greater likelihood of Michigan’s already struggling children and families to feel the effects of the shutdown.  For example, basic needs programs that children and families rely on such as nutrition assistance through WIC and the school lunch program could be in jeopardy if Congress doesn’t agree to a spending plan quickly.

At the state level, today marks the first day of the fiscal year with a budget that includes some significant enhancements (as well as disinvestments) to programs serving Michigan’s most challenged children and families.  What we can’t forget, however, is that our state budget is reliant on federal funding, so a continued government shutdown will impact our state operations, and whatever ultimate budget decisions that Congress makes will impact the way our fiscal year 2014 budget is rolled out.  I’ve said this many times before but it bears repeating.  Over 40 percent of our state budget comes from federal sources, but what’s even more important is that the departments that serve Michigan’s most challenged children and families have even greater reliance on federal dollars.  Nearly two-thirds of the Department of Community Health budget is made-up of federal dollars, three-quarters of the Department of Education budget comes from federal sources, and four-fifths of the Department of Human Services budget comes from the feds.  The departments that work to reduce disparities in child outcomes by ensuring that our most struggling children are fed, housed, safe, healthy, and educated are the departments that will feel the brunt of this government shutdown.

So as we mark the beginning of the fiscal year 2014 budget with some state-level wins like the historic expansion of the Great Start Readiness Preschool Program, expansion of the Healthy Kids Dental Program, and some additional supports to address infant mortality; we can’t forget how programs that rely on federal dollars will negatively impact the same families who would be benefiting from these wins.  The same children who will have greater access to preschool and oral health care are also the ones who will be impacted by cuts to cash assistance, food assistance, and child care assistance if Congress can’t come to a resolution.

In all likelihood, Congress will come to a resolution in the very near future through the passage of a short-term Continuing Resolution (CR) to maintain federal government operations at the fiscal year 2013 levels for multiple weeks.  However, Congress will need to agree on a spending plan for the entire federal fiscal year and this is where your voice can make a difference.  While the sequester seems like ages ago, the impacts are being felt across our state now, and our members of Congress need to hear about them.  If your child is no longer able to access Head Start or adequate special education services as a result of the sequester, please talk to your members of Congress and urge them to reinstate the harmful sequester cuts in the fiscal year 2014 budget that they are debating.  Or, if programs like food assistance or after-school supports are helping your family or your community, Congress needs to hear about those too.

To learn more about the importance of the federal budget here in Michigan, visit our website.

-Mina Hong