New Research Raises Concerns About Michigan’s Historically Underfunded Financial Assistance Program

In light of inflation and price increases, a statewide cash assistance program does not cover basic costs of living, even for those in deep poverty, and solutions are being sought to change this narrative.

By Sherri Kolade

A Michigan Family Independence cash assistance program does not cover basic costs of living, even for those in extreme poverty, and it is leading to a sharp decline in the number of Michigan families who are eligible for cash assistance (not to talk of inflation), according to a recent report by the Michigan League for Public Policy.

In a report entitled, Raise the Standard: Revitalize the Family Independence Program to Help More Michigan Families Reach Financial Stability, the League requests that the Michigan Department of Health and Human Services raise the payment standard to at least $1,084. This would allow people with initial incomes of up to 75 percent of the poverty level to qualify for the program.

“Raising the cash assistance payment standard is long overdue–it hasn’t been increased since 2008. The maximum benefit a family of three can receive is $492 per month if they have no other income. This is not even enough to cover the basics. And right now, we’re reaching crisis level as prices are sky high on groceries, cleaning supplies and other necessities,” said Monique Stanton, president and CEO of the Michigan League for Public Policy. “We know when faced with this kind of economic stress, people are forced to make risky tradeoffs. In order to cover rent and other expenses, they may have to heat their homes with kerosene heaters or skip taking medication. We need to act swiftly to help families in deep poverty make ends meet.”

The report also concludes that years of legislative negligence and bad policy have resulted in a sharp decline in the number of Michigan families that are eligible for financial help.

Cash aid is funded through the federal Temporary Assistance for Needy Families (TANF) program, commonly known as the Family Independence Program in Michigan (FIP). The federal monies are paid to Michigan in one lump sum, and in addition to paying families, the state utilizes those funds for things like child protective services and college financial aid. The amount paid is set at around $775 million annually, even though the cost of living has greatly increased over the past 26 years.

“This report explains the context behind the drop from 229,000 families on cash than 12,000 families is certainly not due to a rapid decline in poverty. FIP has failed families in Michigan because instead of prioritizing financial stability for people, the state has—especially since 2011—prioritized pushing families off assistance or prevented them from qualifying altogether,” Stanton said. “Policymakers are treating TANF as a cash cow, using federal funds that should be directed toward families that are truly in need to supplant spending that should be paid for from the state General Fund. One example is Michigan’s current use of TANF to pay 75 percent of the funding for college financial aid grants that mostly benefit middle-class and even affluent families.”

A family’s monthly income must be at or below 39 percent of the federal poverty threshold (an unlivable $814 for a family of three) in order to be eligible for the Family Independence Program. Every time a household’s monthly income exceeds $1,183, or 57 percent of the poverty line, they will lose it.

“I first went on FIP when my daughter was born. She was premature and weighed only three pounds. I had to quit my job as a childcare worker so that I could drive to the hospital in Kalamazoo to be with her every day. The cash assistance wasn’t enough to cover the cost of gas to get me there,” said Kenarda Rouse, a Benton Harbor resident and former recipient of FIP. Rouse also expressed concern that, with the strict lifetime limit of 48 months, she might not be able to access FIP if she again falls on hard times when she is older.

The League also suggests that FIP grantees be exempt from the asset test and the drug felony restriction and that TANF spending be restricted to low-income populations solely.

The complaint claims that water shutoffs unfairly disadvantage Black Detroiters, in violation of the Fair Housing Act and the Elliott-Larsen Civil Rights Act, and seriously endanger public health by making it impossible to hydrate and maintain proper healthy hygiene.

The complaint requests an urgent court order prohibiting the resumption of shutoffs and aims to permanently terminate the water shutoff policy.

The Detroit Water and Sewerage Department (DWSD) told the Michigan Chronicle the department has not started service interruptions and are waiting on Judge Hood’s ruling on the injunction to reinstate the shutoff moratorium before any further action.

DWSD shared the following statement regarding the moratorium and the ACLU case:

“The moratorium will continue for households who apply for the DWSD Lifeline Plan or enroll in the 10/30/50 Plan. All they have to do is apply for assistance. As of Feb. 13, that means 21,458 Detroit households are protected from shutoff.

Income-eligible residents can apply for the Lifeline Plan by calling Wayne

On July 1, 2022, DWSD launched the first citywide comprehensive water affordability plan, Detroit Lifeline. The five-year plan for an income-based program is intended to help thousands of low-income Detroiters access water at a fixed monthly rate as low as $18 a month.

Although the City of Detroit established the Lifeline water affordability program, which administrators claim exempts registrants from shutoffs, some people have been unable to sign up and are unsure of their eligibility. Numerous water users might be exposed to the risk of losing their water service due to other program-related difficulties.

“Every human being needs water to hydrate and to keep personal hygiene and cleanliness,” said Fancher. The voluntary moratorium was put in place during the pandemic and now we have learned how important access to clean water is to prevent the potential spread of COVID-19 and other diseases. There are health concerns still relevant today. The water shutoffs need to be addressed with a permanent solution that stops thousands of Detroiters from being put at risk again.”

Are You Blacklisted By Your Family?

By Sherri Kolade

Described as an outsider in one’s family of origin or family unit, a black sheep can be an outcast (or scapegoat) to a group of people, club or group, Psychology Today reported.

“Maybe your life choices went against the grain of what was ‘normal’ where you grew up—whether it’s because you spoke up when others didn’t, moved away from your hometown or chose to love and work, differently.”

Perhaps, one of the more famous perceived black sheep in pop culture as of late are Prince Harry and Meghan Markle of the British royal family.

In a December Netflix docu-series, Harry and Meghan detailed some painful elements of their married life, which revealed details of Meghan’s estranged relationship with her relatives, and highlighted how race has impacted their relationship, per the New York Times.

Harry also shared how deeply the paparazzi have affected his life.