State Strategies for Enduring Funding to Support Access to Early Care and Education
The issue brief Financing Michigan’s Early Childhood System (available below) describes how Michigan can build a stable, long-term funding structure to support access to high-quality, affordable early care and education (ECE). Despite recent investments and expanded reach of programs such as state-funded preschool, Michigan’s ECE system remains largely dependent on annual appropriations that compete with other state priorities and fluctuate with political and economic conditions.
Research shows that limited access to child care constrains labor force participation and imposes high economic costs on families and the state. Without a dedicated revenue stream, Michigan faces ongoing challenges in planning for workforce compensation, expanding infant-toddler capacity, and sustaining quality improvement efforts.
Drawing on examples from more than 25 states, the brief highlights a range of dedicated financing mechanisms, such as endowments, earmarked taxes, and gaming revenues, that operate outside the annual state budget process. State examples show how combining permanent funds, constitutional or statutory protections, and clear governance structures can generate predictable revenues while safeguarding long-term sustainability.
