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Like the state budget, the federal budget is the single most powerful expression of the government’s priorities. Unfortunately, the share of federal spending on kids has continued to decline since 2006, although American Recovery and Reinvestment Act (ARRA) dollars cushioned the decline temporarily. This is despite the fact that economic struggles in Michigan forced increasing reliance on federal funding over that same time.
Disinvestment at the federal level will be felt throughout the State of Michigan. In the current fiscal year, federal dollars support 41% of Michigan’s total state budget. For the Michigan Department of Community Health and Department of Human Services budgets – departments that support Michigan’s most struggling children and families – federal dollars support 64% and 82% of these budgets respectively. While Michigan’s education system is less reliant on the federal budget, federal funding supports most of the education programs that work to reduce the achievement gap – an achievement gap that begins early and grows over time. Any cuts to federal programs in these areas will be felt by Michigan children and families.
With support from First Focus and Voices for America’s Children, Michigan’s Children is working to ensure that children and families are a priority in the federal budget. Specifically, we are working to protect federal investments in programs that support early childhood, K-12 education, health, and other critical safety net programs that Michigan children and families are reliant. |
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Federal Deficit Reduction |
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Congress is working to identify a long-term plan to reduce the federal deficit. The initial so-called fiscal cliff was averted with the passage of the American Taxpayer Relief Act of 2012, but a long-term solution is still needed. The fiscal cliff deal delayed sequestration for two months, extended Unemployment Insurance, extended the Farm Bill which funds nutrition programs like SNAP/food stamps, extended the federal Earned Income Tax Credit and Child Tax Credit, and increased tax rates for individuals earning over $400,000 a year or joint filers earning over $450,000 a year. Since Congress has failed to find a balanced solution to address the sequester, across the board cuts that were triggered on March 1, 2013. Though the sequester will remain in place through the end of the federal fiscal year, advocacy opportunities to reverse the damaging sequestration cuts in the fiscal year 2014 budget negotiations remain.
In Michigan, it's important to recognize that children and families have been harder hit by the recession than in other states. Nearly one out of four Michigan children live in poverty and the statistics are worse for children of color. The programs that protect child well-being during times of hardship are up for negotiation in federal deficit reduction talks, and any cuts to these federal programs will be felt by Michigan children and families.
Sequestration and Fiscal Cliff Resources:
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On April 10, 2013, President Obama revealed his budget proposal for federal fiscal year 2014 (FY2014), which begins October 1, 2013 and ends September 30, 2014. The President’s budget proposal for FY2014 reverses the most recent cuts from sequestration (approximately 5.1%) to workforce development, education, and other investments for FY2014 and beyond.
The President is proposing a groundbreaking plan to support high-quality early learning opportunities for children birth to age five. The President’s budget calls for significant new investments to expand access to and improve the quality of child care and early education programs that help children enter school ready to succeed and help parents work. The plan involves a multi-pronged approach that includes a new initiative to make high-quality preschool available to all four-year-olds in low- and moderate-income families; new partnerships between Early Head Start and child care providers to provide high-quality, full-day/full-year early learning opportunities for infant and toddlers; voluntary home visiting to support vulnerable families; and increased funding for child care and other existing programs related to early care and education.
The President's budget also acknowledges investments for disadvantaged and disconnected youth. Specifically, the budget supports older youth through support for Workforce Investment Youth Activities, an expansion of the 21st Century Community Learning Centers, Performance Partnership Pilots designed to improve outcomes for disconnected youth and young adults, and a new college and career readiness competitive grant effort. The proposal contains some new resource for Project Prevent – a new school-based initiative to prevent violence, but cuts $50 million to school-based health centers. While taking a step in the direction of equity, as has been done in the past several years, much of the increased investment are for smaller, competitive programs that will not serve the most challenged young people, and don’t adequately reflect the need in the most challenged communities.
See resources from Michigan's Children's national friends on the FY2014 budget proposals and what it means for children and families:
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On Monday, February 13, 2012, President Obama released his proposed budget for the federal fiscal year 2013 (FY13) which begins October 1, 2012 and ends September 30, 2013. The President’s budget adopts the Budget Control Act mandate to reduce discretionary spending by $1 trillion over 10 years since the Joint Select Committee on Deficit Reduction – aka the Super Committee – failed to identify their own deficit-reducing plan. While the President’s budget is unlikely to be adopted by Congress, it lays out a clear path of President Obama’s priorities – a path that continues to move towards a more equitable society.
See resources from Michigan's Children's national friends on President Obama's FY13 budget and what it means for children and families:
Kids' Share
The Sixth Annual version of Kids' Share 2012 examines federal spending trends and federal tax policies that support and impact children and families. This year's Kids' Share report finds spending on children fell for the first time since the mid-1980s and, unless Congress changes course, will drop below 8 percent of the federal budget by the end of the decade.
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