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State officials warn MILEAP childcare funding will need more general fund support by FY26
Summary
The House Appropriations subcommittee heard that Michigan’s new MILEAP agency is rapidly drawing down federal carryforward funds used to sustain expanded childcare eligibility and will need additional state general fund dollars in FY26 to maintain current program rules.
The House Appropriations Subcommittee on Higher Education and Community Colleges heard on an agency budget briefing that the Michigan Department of Lifelong Education, Advancement and Potential (MILEAP) has seen steep cost growth in its Child Development and Care program and will need more state general fund support to maintain current eligibility and benefits.
Noel Benson, fiscal analyst, House Fiscal Agency, told the panel the newly created department’s FY 2024–25 gross budget is roughly $643.9 million and is “almost entirely federal and general fund.” Benson said 79 percent of that budget is federal funding and 21 percent state general fund, with a small amount of restricted and private funds. He said about 91 percent of MILEAP’s budget supports the Office of Early Childhood Education and that the Child Development and Care scholarship is the single largest line item at roughly $499 million.
Benson said the state increased the program’s…
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