MIKidsReady proposes a quality, education‑focused early childhood system built on what science tells us: the most important years for learning are birth to age five. When children have strong early learning experiences, they arrive at kindergarten ready to succeed — and our entire K–12 system becomes stronger, more effective, and more equitable.
To build a system that reaches children across Michigan — rural, urban, and everywhere in between — we need stable, dedicated funding. Our plan uses a balanced, three‑pillar formula that spreads responsibility fairly and sustainably.
A Three‑Pillar Funding Formula
1. Parent Contribution: $15/day
Twelve-month, Five‑day week.
Estimated revenue: $1.6–$1.8 billion per year (based on 80% participation of ages 0-4)
Families contribute a modest, predictable fee — far lower than today’s childcare costs — while gaining access to stable, high‑quality early learning. Low‑income families will receive support to ensure affordability. Canada began a similar education-focused program in 2021 based on a $10/day fee. The program is designed to be in full implementation by 2026.
2. Employer Childhood Education and Care Payroll Tax of 0.50% of employee wages.
Estimated revenue: $950 million to $1.03 billion per year
Vermont call’s this the “Child Care Contribution” and is set at 0.44% of wages. Employers benefit directly from reliable childcare: fewer absences, lower turnover, and a more stable workforce. A half‑percent tax on payroll for employees is modest, predictable, and tied to the economic gains employers receive. Firms in Vermont supported it strongly.
3. High Earner’s Investment for Early Learners: A Building Michigan Fund
Estimated revenue: $1.0–$1.1 billion per year
An investment contribution of 3% on taxable income above $500,000 for single filers and $1 million for jointfilers ensures that those with the greatest ability to contribute help build the next generation’s foundation. This affects only the highest‑income households. Several states impose surcharge on higher earners, including California, Maine, New Jersey, New York, Massachusetts, and Washington State. Rates range from 1% in California to 9.9% in Washington State.
Total Annual Revenue from the Three Pillars: $3.55–$3.93 billion
This provides the core of a sustainable early childhood system.
Note: AI Copilot and AI Gemini were used for research and computations in obtaining these estimates. Further verification will be necessary as the model is being shaped for use.
Michigan also receives significant existing state and federal early childhood funding that can be braided into the new system:
Existing State and Federal Early Childhood Funds in Michigan
Michigan already receives approximately $1.1–$1.2 billion per year in combined state and federal early childhood funding. These funds are currently spread across dozens of programs and agencies. Under a unified early childhood system, they can be aligned to support universal access. Each of these funding sources depend on year-to-year legislative action at the state and federal levels.
Major currently existing funding streams include:
State Funds
- Great Start Readiness Program (GSRP) -Michigan’s state‑funded preschool program
- Child Care Stabilization and Workforce Grants
- State child development and early intervention funds
Federal Funds
- Child Care and Development Block Grant (CCDBG)
- Head Start and Early Head Start
- Temporary Assistance for Needy Families (TANF) childcare allocations
- Individuals with Disabilities Education Act (IDEA) Part C (Early On)
Together, these sources total $1.1–$1.2 billion annually, depending on federal appropriations and state match levels.
