Child Poverty Rate On The Decline

A new report from the Annie E. Casey Foundation shows that Michigan’s child poverty rate could be cut in half when the positive effect of government programs and tax policies are taken into account, That includes state and federal Earned Income Tax Credits.

Jane Zehnder-Merrell, Kids Count in Michigan project director at the Michigan League for Public Policy, says Michigan’s child poverty could be reduced from 30% to 15% when government transfers like food assistance, state and federal Earned Income Tax Credits, cash assistance, child care assistance and housing subsidies are counted.

Zehnder-Merrell says voting “yes” May 5th on the road funding package will trigger the reinstatement of the state Earned Income Tax Credit to 20% of the federal credit, which will help more than one million Michigan children in working families. She says 341,000 Michigan children are lifted from poverty when such programs are available.

Meantime, the League also recommends that state policymakers ease a harsh state asset test on food assistance that limits federally funded food aid; revisit the strict 48-month time limit on cash assistance for families playing by the rules; employ two-generation strategies such as connecting job training opportunities to Head Start and Great Start Readiness preschool so more parents can access better-paying jobs and update state child care subsidies for parents searching for work or working for low wages. The subsidies have not kept pace with inflation.