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Appropriations Subcommittee advances SB 164, directing new state funds to childcare and postsecondary supports

May 01, 2025 | Civil Rights, Judiciary, and Public Safety , 2025 Senate Legislature MI, Michigan


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Appropriations Subcommittee advances SB 164, directing new state funds to childcare and postsecondary supports
At a meeting of the Appropriations Subcommittee on My LEAP, members voted 2–1 to adopt the S‑1 amendment and report Senate Bill 164 to the full committee, advancing a budget package that increases state general‑fund support for childcare and postsecondary programs.

The subcommittee moved a budget “Miley” proposal that, according to committee staff, raises the program’s gross budget by 14.3% (from $643,000,000 to $736,000,000) and increases general‑fund support by 66.2% (from $136,500,000 to $226,900,000). The clerk said the proposal includes a $63,000,000 increase described as a gap‑fill for childcare funding and one‑time general‑fund payments totaling about $40,000,000 to meet federal maintenance‑of‑effort (MOE) requirements.

Madam Chair, Chair of the Appropriations Subcommittee on My LEAP, framed the program as a combined effort supporting higher education and early childhood care: “It is a huge part of our economy,” she said, tying childcare access to workforce participation and the committee’s higher‑education priorities such as the Reconnect program and college success grants.

The clerk told members the package includes several adjustments and one‑time appropriations: a $23,000,000 increase aimed at provider pay for infant and toddler care; $2,000,000 for a re‑enrollment recruitment initiative for students who left college; removal of the dual‑enrollment line item with a replacement one‑time appropriation of $10,000 for a dual‑enrollment task force; and $16,000,000 in college success and wraparound supports (an increase of $1,000,000 over the governor’s recommendation, with that increment earmarked for hunger‑free campuses). The proposal also includes nearly $4,000,000 in expansion grants to help selected Head Start providers expand into full‑service childcare.

Committee members asked staff to clarify the MOE funding and the payment change staff described as a shift from post‑pay to prepay for childcare providers. Senator Baker asked for another explanation of the maintenance‑of‑effort requirement. The clerk explained that moving from post‑payment to prepayment requires advancing roughly two additional payments within a single fiscal year; the department estimated that shift will cost about $38,500,000. The clerk added that a separate federal MOE obligation requires the state to show contracting or investment in underserved areas and that the combined one‑time cost is roughly $40,000,000.

On formal actions, Senator Kleinfeld moved to adopt the S‑1 amendment (a motion supported by the chair). The clerk called the roll: Senator Baker voted yes, Senator Kleinfeld voted yes, and Senator Albert voted no. The subcommittee adopted S‑1 by a 2–1 vote. The same margin carried a motion to report SB 164 to the full committee. Earlier in the meeting the subcommittee approved minutes from March 13 and, later, draft minutes from March 31 without objection.

Discussion in the meeting focused on the size and purpose of the new general‑fund investments and technical changes to payment timing; members did not modify the numerical appropriations on the floor. Committee staff characterized several items as baseline or governor’s‑recommended adjustments that the subcommittee adopted. The clerk noted that certain boilerplate reporting sections the executive had labeled “unenforceable” were the subject of a legal argument but did not remove them from the package during the meeting.

The subcommittee reported SB 164 and adjourned. The bill and its S‑1 amendment will proceed to the full Appropriations Committee for further consideration.

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Scribe from Workplace AI
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