Michigan now has one of the most detailed pictures in the nation of what it truly costs to build a high‑quality early childhood education and care system. Hope Starts Here and Think Babies Michigan, in partnership with the Michigan Department of Education, commissioned Prenatal to Five Fiscal Strategies, nationally recognized experts, to conduct a Comprehensive Fiscal Analysis (CFA) of Michigan’s birth‑to‑five landscape.
The findings are clear: Michigan’s current system is underfunded, fragmented, and unable to meet family needs — but the path to a stable, universal system is fully within reach.
A System Built on Undercapitalization
The CFA shows that Michigan’s early childhood system is held together by a patchwork of disconnected funding streams. Providers navigate multiple agencies, inconsistent rules, and reimbursement rates that fall far below the true cost of high‑quality care. Families experience this as long waitlists, high prices, and limited availability — especially for infants and toddlers.
A universal system requires stable, predictable, dedicated funding that reflects the real cost of quality.
The True Cost of High‑Quality Care
Using detailed cost modeling across center‑based programs, family child care homes, and home visiting services, the CFA finds that:
- The true cost of care is significantly higher than what providers receive today.
- Michigan needs approximately $3.5 billion annually to fund a high‑quality, mixed‑delivery system that serves children from birth to kindergarten entry.
- Infant and toddler care is especially underfunded due to the staffing ratios required for safe, developmentally appropriate care.
This gap between actual cost and current funding is the root cause of Michigan’s child care crisis.
[See also, Balancing the Scales by the Early Childhood Investment Corporation, a systematic wage scale proposal]
A Workforce Paid Far Below Its Value
The CFA highlights a stark reality: Michigan’s early childhood educators — the people shaping children’s earliest learning — are among the lowest‑paid workers in the state.
- Average wages hover around $13 per hour, far below wages for comparable roles in K–12 or other sectors.
- Low compensation drives turnover, program closures, and chronic staffing shortages.
- The CFA models include living wages and professional compensation, which are essential for quality and stability.
A universal system must treat early educators as the skilled professionals they are.
Large Gaps in Access
Despite strong programs like Tri-Share, GSRP and Head Start, Michigan’s system leaves tens of thousands of children without access to early learning and care:
- More than one-half of eligible 4-year olds are not served by public preschool.
- Tens of thousands of subsidy‑eligible children cannot access care due to shortages or administrative barriers.
- Home visiting reaches only a fraction of families who could benefit.
(See Challenging Tri-Share by Elliot Haspel, author of Raising a Nation. )
What Michigan Needs to Build a Universal System
The CFA provides a roadmap for a system that works for families, providers, and the state’s long‑term economic health. A universal early childhood education and care system requires:
- Dedicated, annual public funding that reflects the true cost of care
- Professional wages for early educators
- Affordable access for all families
- Support for small businesses and home‑based providers
- A mixed‑delivery system that preserves family choices
