A Recovery Act Update for Michigan Nonprofits

Leslee Fritz, Director

MI Economic Recovery OfficeApril 14, 2009

Michigan Recovery and Reinvestment Plan • michigan.gov/recovery 2

The American Recovery and The American Recovery and Reinvestment Act (ARRA) of 2009Reinvestment Act (ARRA) of 2009

• President Obama signs the Recovery Act on February 17, 2009

• The largest investment increase in America’s roads, bridges and mass transit in 50 years

• The most significant expansion in tax cuts for low and moderate income households ever

Michigan Recovery and Reinvestment Plan • michigan.gov/recovery 3

Michigan’s Economic Plan Michigan’s Economic Plan is in Placeis in Place

Our plan aligns perfectly with President Obama’s goals: Create jobs and

diversify our economy Educate and train our

students and workers Protect our citizens

during tough times

The Recovery Act will accelerate our plan

Michigan Recovery and Reinvestment Plan • michigan.gov/recovery 4

Visit michigan.gov/recovery often for grant applications and the latest updates!

• Existing programs

• Competitive grants

• Tax cuts

How Will the Funds Come to Us?How Will the Funds Come to Us?

Michigan Recovery and Reinvestment Plan • michigan.gov/recovery 5

The Impact for MichiganThe Impact for Michigan

What does the Recovery Act mean for me?

• Minimum estimated benefit for Michigan: $18 billion

• Funding available for existing programs: about $7 billion

• Will create or save at least

109,000 jobs over the next two years

Michigan Recovery and Reinvestment Plan • michigan.gov/recovery 6

Protecting FamiliesProtecting Families

• $400 tax cut for workersearning less than $75,000

• Earned Income Tax Credit  increased for families with 3 or more children making up to $43,250/yr

• $1,000 per-child tax credit for families making more than $3,000/yr (minimum was $12,550)

• $250 payment to seniors and people with disabilities

• First-time Home Buyer Tax Credit increased from $7,500 to $8,000 for 2009

Michigan Recovery and Reinvestment Plan • michigan.gov/recovery 7

Helping Jobless WorkersHelping Jobless Workers

• Unemployment eligibility extended by up to 20 weeks (maximum of 79 weeks)

• $25 per week increase in unemployment benefits

• First $2,400 in unemployment benefits not taxed• Food Assistance increased for 1.3 million

Michigan families - example: about $80 more per month for a family of four making less than $40,000

Michigan Recovery and Reinvestment Plan • michigan.gov/recovery 8

Helping Schools Helping Schools

• $2.2 billion statewide for:– Special education– Programs for at-risk

students– Mitigating budget cuts

• $20 million for Head Start

Michigan Recovery and Reinvestment Plan • michigan.gov/recovery 9

Providing Health CareProviding Health Care

• Pays for 65% of continued health coverage for citizens who have lost their jobs (COBRA)

• Significant Medicaid funding boost– 1.6 million Michigan citizens rely on Medicaid health

coverage

• Over $11.2 million for Michigan health clinics that serve large

numbers of low-income

patients

Michigan Recovery and Reinvestment Plan • michigan.gov/recovery 10

Recovery Act Funds for MichiganRecovery Act Funds for Michigan

Expected Formula Funding for MI Departments:• Community Health: $2.3B• Education: $2.2B • Human Services: $1.5B• Transportation: $982M• Energy, Labor & Economic Growth: $580M• Housing & Development Authority: $300M• Environmental Quality: $240M

Michigan Recovery and Reinvestment Plan • michigan.gov/recovery 11

Recovery Act Funds for MichiganRecovery Act Funds for Michigan

MI Program Funding Examples:• Community Services Block Grants: $36M• Elderly Nutrition: $3M• Domestic Violence Prevention & Treatment: $4M• Weatherization Assistance: $244M• Byrne JAG: $67M• Homelessness Prevention: $53M• AmeriCorps: $966,875

Michigan Recovery and Reinvestment Plan • michigan.gov/recovery 12

On the Web…On the Web…

• White House Recovery Portal http://recovery.gov

• State of Michigan Recovery Portalhttp://michigan.gov/recovery