State of Michigan 

Recovery Plan 

State and Local Fiscal Recovery 

Funds 

2021 Report 
State of Michigan 2021 Recovery Plan Performance Report 1

State of Michigan 

2021 Recovery Plan 

Table of Contents 

General Overview ...................................................................................................................... 2 

Executive Summary ................................................................................................................. 2 

Uses of Funds ......................................................................................................................... 3 

Promoting Equitable Outcomes ............................................................................................... 3 

Community Engagement ......................................................................................................... 4 

Labor Practices ....................................................................................................................... 4 

Use of Evidence ...................................................................................................................... 4 

Table of Expenses by Expenditure Category ........................................................................... 5 

Project Inventory ....................................................................................................................... 8 

Projects .................................................................................................................................. 8 

Performance Report ................................................................................................................ 9 

Required Performance Indicators and Programmatic Data .................................................... 10 

Ineligible Activities: Tax Offset Provision ............................................................................ 10
State of Michigan 2021 Recovery Plan Performance Report 2

GENERAL OVERVIEW 

Executive Summary 

The American Rescue Plan Act provides Michigan with $6.5 billion in State Fiscal Recovery Funds, along 

with billions of additional local and education funds, and a generational opportunity to transform the 

lives of its residents as we look to rebound from the COVID pandemic. While Michigan has appropriated 

just a small share of these funds thus far, we have undertaken a process to think intentionally and 

strategically about how to align and prioritize these one-time federal investments in ways that maximize 

this opportunity and promote long-term progress for all Michiganders. 

Michigan’s Fiscal Recovery Fund Performance Plan will be centered on equitably growing the state’s 

economy and closing gaps created or exacerbated by the pandemic by: 

 expanding skills, training, and childcare for families, 

 rebuilding our water infrastructure and expanding broadband access, 

 helping businesses recover and putting people back to work, 

 addressing public health and educational disparities 

The following principles and metrics will guide Michigan’s appropriation, distribution, and oversight of 

its Fiscal Recovery Funding: 

• Pandemic: How does the proposal address issues created by or exacerbated by the 

COVID-19 pandemic? 

• Equity: Does the proposal address a change in societal opportunity and/or eliminate 

disparities/gaps in outcomes for underserved and underrepresented populations? 

• Transformational: What is the opportunity for transformation and/or social change for 

Michigan’s residents? 

• Leverage: Does the proposal leverage additional resources from the private, public, 

and/or philanthropic sectors? 

• Sustainability: How sustainable is the proposal? Will it require ongoing support? What is 

the potential return on investment? 

• Efficacy: How effective will the proposal be in solving a defined problem? Does it use 

techniques that are highly likely to achieve the desired outcome? Does it clearly define 

how success will be measured? 

• Implementation: How much support does the proposal have currently or likely will 

have? Is there capacity to implement it now? 
State of Michigan 2021 Recovery Plan Performance Report 3

Uses of Funds 

The majority of the State and Local Fiscal Recovery Funds are still awaiting appropriation. The funds 

appropriated to date provide funding to two areas significantly impacted by the COVID-19 pandemic, 

providing investments in education and aid to healthcare providers. 

Funds Appropriated for Services to Disproportionately Impacted Communities – Education Assistance 

On July 13, 2021, Public Act 48 of 2021 appropriated $121 million to expand access to the Great Start 

Readiness Program (GSRP) which provides blended comprehensive free compensatory classroom 

programs designed to improve the readiness and subsequent achievements of educationally 

disadvantaged children who meet the participant eligibility and prioritization guidelines defined by 

Michigan Department of Education. The GSRP is an evidence-based investment provided to improve 

educational outcomes for children in economically disadvantaged households, which were also more 

significantly impacted by the COVID-19 pandemic. 

Public Act 48 of 2021 also appropriated $75 million to provide matching grants to school districts to 

make one-time strategic investments in infrastructure and/or equipment necessary to operate a yearround, balanced calendar. The balanced calendar model for education is intended to reduce summer 

learning loss and improve educational achievement. These funds will provide a funding opportunity for 

schools to address the costly infrastructure/equipment barriers, such as HVAC improvements, that 

prevent districts from implementing a balanced calendar. 

Funds Appropriated to Address Negative Economic Impacts 

Hospitals and long-term care facilities have been on the front line responding to the COVID-19 

pandemic. In addition to providing care for COVID-19 positive patients, these facilities were also 

negatively affected by restrictions that suspended certain medical procedures and limited overall 

admissions to protect patients/residents and ensure capacity existed to address the potential for a surge 

of COVID-19 cases requiring critical services. On July 27, 2021, Public Act 67 of 2021 appropriated 

funding to aid hospitals and long-term care facilities impacted by these reductions. $160 million was 

appropriated for grants to hospitals to help cover the increased costs and reduced revenues related to 

the COVID-19 pandemic. To aid long-term care facilities that experienced reduced daily census numbers 

due to COVID-19, $100 million was appropriated to provide additional funding to affected facilities.

Promoting equitable outcomes 

The majority of State and Local Fiscal Recovery Funds have not yet been appropriated. For those 

projects that were appropriated in July, the programs are still under development. Additional details of 

how these funds are used to promote equitable outcomes will be provided in future reports. 

Michigan’s Great Start Readiness Program (GSRP) is a program targeting lower-income 4-year-olds. The 

program provides blended comprehensive free compensatory classroom programs designed to improve 

the readiness and subsequent achievement of educationally disadvantaged children who meet the 

participant eligibility and prioritization guidelines.
State of Michigan 2021 Recovery Plan Performance Report 4

Community Engagement 

Beginning the week after President Biden signed the American Rescue Plan, members of the Governor’s 

office and the State Budget Office began engaging with an informal group of business, philanthropic, 

education, and health leaders from across Michigan to provide thought leadership to ensure Michigan’s 

approach to using State and Local Fiscal Recovery Funds funding was informed by those most 

knowledgeable in their respective fields. We established the guiding principles described in the 

executive summary with which to evaluate proposals. We used those principles to create a template 

with which to solicit feedback and ideas from stakeholder groups statewide to set the expectation early 

about our intent to be thoughtful and deliberative in our process and share the value lens through which 

we’d be evaluating opportunities for funding. Throughout the spring, we engaged with stakeholders 

ranging from school district and higher education leaders, those affected in the business community, 

our regional economic development associations, municipal governments, community nonprofits, and 

many more. As we developed proposals, we shared them for further input and made changes along the 

way to reflect additional viewpoints and updated federal guidance. The Governor has begun to publicly 

share her ideas for portions of the funding as we wrap up our community input and look to next steps to 

work with the legislature this fall on finalizing proposals and appropriating funds in a way that 

maximizes the generational opportunity afforded to us with these funds.

Labor Practices 

This section is not applicable at this time as State and Local Fiscal Recovery Funds to date have not been 

appropriated to infrastructure projects.

Use of Evidence 

The majority of State and Local Fiscal Recovery Funds have not yet been appropriated. For those 

projects appropriated in July, the programs are still under development. Details on how appropriated 

State and Local Fiscal Recovery Funds are being used for evidence-based interventions are below. 

Additional details of how these funds will use evidence-based interventions will be provided in future 

reports. 

Michigan’s Great Start Readiness Program (GSRP), a program targeting lower-income 4-year-olds, is 

based on key research studies on early learning effectiveness. This evidence base includes research on 

effective program design, cost benefit analysis of similar programs, the long-term effects of early 

learning participation, the effects of early learning participation on cognitive development, the effects of 

early learning participation on juvenile arrest, as well as rigorous program evaluations of GSRP and 

similar programs. Research on preschool programs shows that children with high-quality preschool 

experiences demonstrate significant positive developmental differences compared to children from the 

same backgrounds without high-quality preschool experiences. Michigan’s Department of Education has 

used this extensive evidence base to inform the design, implementation, and evaluation of GSRP, 

including key program goals, some of which are outline below: 
State of Michigan 2021 Recovery Plan Performance Report 5

 Increase at-risk preschool children’s early literacy and math skills 

 Reduce the achievement gap in early literacy and math between higher and lower risk 

preschool children. 

The total funding allocated to GRSP, $121 million dollars, is deemed to be allocated toward evidencebased interventions within the Expenditure Category Grouping: Services to Disproportionately Impacted 

Communities. These funds will be used to supplement the existing state-funded program by expanding 

the number of low-income 4-year-olds being served, essentially making it available for all eligible 

children across the state. 

Table of Expenses by Expenditure Category 

The majority of State and Local Fiscal Recovery funds are still pending appropriation with a small portion 

of the total funding appropriated in mid to late July 2021. Departments receiving the appropriated funds 

need time to implement those programs, so no funds were expended prior to July 31, 2021.

Category Cumulative 

expenditures to 

date ($)

Amount spent 

since last 

Recovery Plan

1 Expenditure Category: Public Health 

1.1 COVID-19 Vaccination 0 0

1.2 COVID-19 Testing 0 0

1.3 COVID-19 Contact Tracing 0 0

1.4 Prevention in Congregate Settings (Nursing 

Homes, Prisons/Jails, Dense Work Sites, 

Schools, etc.)

0 0

1.5 Personal Protective Equipment 0 0

1.6 Medical Expenses (including Alternative Care 

Facilities)

0 0

1.7 Capital Investments or Physical Plant Changes 

to Public Facilities that respond to the COVID19 public health emergency 

0 0

1.8 Other COVID-19 Public Health Expenses 

(including Communications, Enforcement, 

Isolation/Quarantine)

0 0

1.9 Payroll Costs for Public Health, Safety, and 

Other Public Sector Staff Responding to 

COVID-19 

0 0

1.10 Mental Health Services 0 0

1.11 Substance Use Services 0 0

1.12 Other Public Health Services 0 0

2 Expenditure Category: Negative Economic 

Impacts

2.1 Household Assistance: Food Programs 0 0

2.2 Household Assistance: Rent, Mortgage, and 

Utility Aid 

0 0
State of Michigan 2021 Recovery Plan Performance Report 6

Category Cumulative 

expenditures to 

date ($)

Amount spent 

since last 

Recovery Plan

2.3 Household Assistance: Cash Transfers 0 0

2.4 Household Assistance: Internet Access 

Programs 

0 0

2.5 Household Assistance: Eviction Prevention 0 0

2.6 Unemployment Benefits or Cash Assistance to 

Unemployed Workers 

0 0

2.7 Job Training Assistance (e.g., Sectoral jobtraining, Subsidized Employment, Employment 

Supports or Incentives)

0 0

2.8 Contributions to UI Trust Funds* 0 0

2.9 Small Business Economic Assistance (General) 0 0

2.10 Aid to nonprofit organizations 0 0

2.11 Aid to Tourism, Travel, or Hospitality 0 0

2.12 Aid to Other Impacted Industries 0 0

2.13 Other Economic Support 0 0

2.14 Rehiring Public Sector Staff 0 0

3 Expenditure Category: Services to 

Disproportionately Impacted Communities

3.1 Education Assistance: Early Learning 0 0

3.2 Education Assistance: Aid to High-Poverty 

Districts

0 0

3.3 Education Assistance: Academic Services 0 0

3.4 Education Assistance: Social, Emotional, and 

Mental Health Services 

0 0

3.5 Education Assistance: Other 0 0

3.6 Healthy Childhood Environments: Child Care 0 0

3.7 Healthy Childhood Environments: Home Visiting 0 0

3.8 Healthy Childhood Environments: Services to 

Foster Youth or Families Involved in Child 

Welfare System 

0 0

3.9. Healthy Childhood Environments: Other 0 0

3.10 Housing Support: Affordable Housing 0 0

3.11 Housing Support: Services for Unhoused 

persons 

0 0

3.12 Housing Support: Other Housing Assistance 0 0

3.13 Social Determinants of Health: Other 0 0

3.14 Social Determinants of Health: Community 

Health Workers or Benefits Navigators 

0 0

3.15 Social Determinants of Health: Lead 

Remediation

0 0

3.16 Social Determinants of Health: Community 

Violence Interventions 

0 0

4 Expenditure Category: Premium Pay 
State of Michigan 2021 Recovery Plan Performance Report 7

Category Cumulative 

expenditures to 

date ($)

Amount spent 

since last 

Recovery Plan

4.1 Public Sector Employees 0 0

4.2 Private Sector: Grants to other employers 0 0

5 Expenditure Category: Infrastructure 

5.1 Clean Water: Centralized wastewater treatment 0 0

5.2 Clean Water: Centralized wastewater collection 

and conveyance

0 0

5.3 Clean Water: Decentralized wastewater 0 0

5.4 Clean Water: Combined sewer overflows 0 0

5.5 Clean Water: Other sewer infrastructure 0 0

5.6 Clean Water: Stormwater 0 0

5.7 Clean Water: Energy conservation 0 0

5.8 Clean Water: Water conservation 0 0

5.9 Clean Water: Nonpoint source 0 0

5.10 Drinking water: Treatment 0 0

5.11 Drinking water: Transmission & distribution 0 0

5.12 Drinking water: Transmission & distribution: 

lead remediation 

0 0

5.13 Drinking water: Source 0 0

5.14 Drinking water: Storage 0 0

5.15 Drinking water: Other water infrastructure 0 0

5.16 Broadband: “Last Mile” projects 0 0

5.17 Broadband: Other projects 0 0

6 Expenditure Category: Revenue Replacement 

6.1 Provision of Government Services 0 0

7 Administrative and Other 

7.1 Administrative Expenses 0 0

7.2 Evaluation and data analysis 0 0

7.3 Transfers to Other Units of Government 0 0

7.4 Transfers to Nonentitlement Units 

(States and Territories only)

0 0
State of Michigan 2021 Recovery Plan Performance Report 8

Project Inventory 

The majority of State and Local Fiscal Recovery Funds have not yet been appropriated. For those 

projects appropriated in July, the programs are still under development. The details below may change 

as these programs are more fully developed and implemented. 

Projects 

Project ID: FRF-001

Project Name: Great Start Readiness Program Expansion

Expenditure Category: Education Assistance: Early Learning

Funding Amount: $121,000,000 Overview 

Main Activities: Additional funding to expand access for Great Start Readiness Program to 

provide part-day, school-day, or GSRP/Head Start blended comprehensive 

free compensatory classroom programs designed to improve the readiness 

and subsequent achievement of educationally and economically 

disadvantaged children who meet the participant eligibility and 

prioritization guidelines. 

Approx. Timeline: September 1, 2021 – August 31, 2022

Primary Delivery 

Mechanism: 

Grants

Partners: Intermediate school districts

Intended Outcomes:  Increase access, enrollment, and participation in GSRP

 Increase at-risk preschool children’s early literacy and math skills 

 Reduce the achievement gap in early literacy and math between 

higher and lower risk preschool children. 

Website Link: MDE - Great Start Readiness Program (michigan.gov)

Project ID: FRF-002

Project Name: Balanced Calendar Support Grants

Expenditure Category: Educational Assistance: Other

Funding Amount: $75,000,000 Overview 

Main Activities: Provide matching grants to school districts for HVAC and other one-time 

infrastructure or equipment costs necessary to operate a year-round 

balanced calendar in the 2022-2023 school year. 

Approx. Timeline: September 1, 2021 – June 30, 2023

Primary Delivery 

Mechanism: 

Grants

Partners: Public School Districts

Intended Outcomes:  Increase the number of public school districts operating under a 

balanced calendar 

Website Link N/A
State of Michigan 2021 Recovery Plan Performance Report 9

Project ID: FRF-004

Project Name: Hospital COVID-19 Grants

Expenditure Category: Aid to Other Impacted Industries

Funding Amount: $160,000,000 Overview 

Main Activities: Provide grants to hospitals to help cover negative economic impacts 

related to the COVID-19 pandemic. 

Approx. Timeline: August 1, 2021 – December 31, 2021

Primary Delivery 

Mechanism: 

Direct Payments

Partners: Hospitals

Intended Outcomes: Offset the hospital industry’s revenue loss as a result of the COVID-19 

pandemic by distributing funds based on the proportion of each hospital’s 

percentage of total state Medicaid inpatient claims revenue, including 

Medicaid managed care inpatient claims revenue, in the most recent 12 

months for which the information is available. 

Website Link N/A

Project ID: FRF-005

Project Name: Long-term Care Facility (LTCF) Supports 

Expenditure Category: Aid to Other Impacted Industries

Funding Amount: $100,000,000 Overview 

Main Activities: Provide a $23.00 per Medicaid day increase to nursing facilities that have 

experienced a decline in the nursing facility’s average daily census of 5% or 

more during the covered period when compared to the nursing facility’s 

average daily census as reported in the nursing facility’s 2019 Medicaid 

cost report. 

Approx. Timeline: August 1, 2021 – December 31, 2021

Primary Delivery 

Mechanism: 

Direct Payments

Partners: Nursing Facilities

Intended Outcomes: Offset the reduction in LTCF revenue as a result of the COVID-19 pandemic 

by the proportion of each eligible LTCF’s Medicaid patients. 

Website Link N/A

Performance Report 

The majority of State and Local Fiscal Recovery Funds had not been appropriated as of July 31, 2021. For 

those projects appropriated in July, the programs are still under development, including establishment 

of any key performance indicators to be used to measure program impacts. Such output and outcome 

measure will be established and included in future reports. 
State of Michigan 2021 Recovery Plan Performance Report 10

Required Performance Indicators and Programmatic Data 

The majority of State and Local Fiscal Recovery Funds had not been appropriated as of July 31, 2021. For 

those projects appropriated in July, the programs are still largely under development, including 

establishment of any performance indicators and/or programmatic data that will be collected and 

reported. In addition, none of the programmatic data elements specifically required in the US Treasury 

Compliance and Reporting Guidance applies to the projects appropriated as of July 31, 2021. Thus, no 

performance indicators or programmatic data are available at this time. 

Ineligible Activities: Tax Offset Provision (States and territories only) 

US Treasury Reporting Guidance requires States to report on revenue-reducing covered changes for the 

period ended July 31, 2021. Michigan Department of Treasury evaluated the estimated costs and effects 

of fiscal policy changes implemented during the covered periods and none were anticipated to have any 

revenue reducing effects. 

Item Amount

a. Revenue-reducing Covered Changes $0