April 2023
 The sun rises on Lake Huron in Lexington, Mich., in April 2023. (Danelle Gittus/Michigan Department of Treasury)
Gov. Whitmer Encourages High School Seniors to Complete the Free Application for Federal Student Aid (FAFSA)
Governor Gretchen Whitmer recently reminded high school seniors to complete the Free Application for Federal Student Aid – known simply as the “FAFSA” for short – by May 1, 2023 to be given priority consideration for some state of Michigan financial aid programs.
“Every senior should fill out their FAFSA to save thousands of dollars on the cost of community, private, or public college,” said Governor Whitmer. “By filling out this federal form, you can unlock grants, scholarships and other forms of assistance that can put you on a path to getting an associates or bachelor’s degree right here in Michigan. This includes the Michigan Achievement Scholarship, a bipartisan scholarship to lower the cost of community, private, or public college by thousands of dollars a year—up to $27,500 over 5 years—for the majority of graduating seniors. You are probably eligible for more financial aid than you realize, and I encourage you to fill out your FAFSA ASAP!”
“My team is standing by and ready to help students and families understand what state financial aid assistance is available,” said State Treasurer Rachael Eubanks. “Completing the FAFSA is really the first step for unlocking financial support. There are many state awards available to students right now. Failure to complete the FAFSA could mean missing out on dollars that can help pay for college.”
Submissions received at the federal processor on or before May 1 are given priority consideration for the Michigan Competitive Scholarship and Michigan Tuition Grant. Students who wait to complete their FAFSA after the May 1 deadline may not receive all the financial aid they could have been entitled to receive.
Last year, Michigan students received more than $22.4 million in Michigan Competitive Scholarships and more than $31.5 million in Michigan Tuition Grants.
In addition to state assistance, completing the FAFSA unlocks federal aid -- such as Pell Grants, student loans, work-study jobs and institutional grants.
Prior to completing the FAFSA online, the student must obtain a Federal Student Aid ID (FSA ID) at www.fafsa.gov. This ID serves as a legal signature and confirms an applicant's identity when accessing financial aid information through certain U.S. Department of Education websites.
To get started with the FAFSA, go to www.fafsa.gov. To learn more about State of Michigan scholarships and grant programs, visit MI Student Aid's website at www.michigan.gov/mistudentaid.
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Have you heard about the Michigan Achievement Scholarship?
To help lower the cost of college even further, Governor Whitmer created the Michigan Achievement Scholarship, which is available to graduating high school seniors this year. The Michigan Achievement Scholarship can save families up to $27,500 on a bachelor's degree.
The May 1 FAFSA state priority deadline does not apply to the Michigan Achievement Scholarship, but students still need to complete their FAFSA in order to be eligible for the Michigan Achievement Scholarship.
Students who graduate from high school in Michigan with a diploma, certificate of completion or achieved a high school equivalency certificate in 2023 or after may be eligible for additional financial aid from the state of Michigan through the Michigan Achievement Scholarship.
Possible student awards include:
- Up to $2,000 if they attend an eligible training provider in Michigan, per year, up to two years
- Up to $2,750 if they attend a Michigan community college, per year, up to three years
- Up to $4,000 if they attend a Michigan private college or university, per year, up to five years
- Up to $5,500 if they attend a Michigan public university, per year, up to five years
Additional information about the Michigan Achievement Scholarship is available at www.michigan.gov/achievement.
Have questions? Need help?
Administered by Treasury, MI Student Aid is Michigan's go-to resource for finding the financial resources needed to pay for college. For more information, contact MI Student Aid at [email protected], 1-888-447-2687 or @mistudentaid on Facebook, Twitter, Instagram, and Snapchat.
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Michigan's foster care youth are eligible to receive college scholarships following a Fostering Futures Scholarship Trust Fund Benefit Dinner in Grand Rapids organized by the Michigan Education Trust (MET) and the Michigan Department of Health and Human Services (MDHHS).
April 14's event at Frederik Meijer Gardens in Grand Rapids was attended by approximately 150 guests who raised more than $27,400 for scholarships through MET, the Michigan Department of Treasury's 529 prepaid tuition program.
"Youth who experienced foster care often have limited resources and support systems, which makes paying for college challenging," State Treasurer Rachael Eubanks said. "The Fostering Futures Scholarship provides a source of assistance to make the dream of college a reality for students who have experienced foster care. I thank the generosity of our sponsors, donors and guests for making this scholarship a reality."
A partnership between MET and MDHHS makes Fostering Futures Scholarships possible.
Close to 10,000 youth are in the Michigan foster care system run by the Michigan Department of Health and Human Services. Nationally, fewer than 10% of former foster youth enroll in college after high school and fewer than 3% eventually earn a degree.
The Fostering Futures Scholarship Trust Fund provides former Michigan foster care students who may not have adequate financial resources to attend college with a scholarship to a Michigan college or university. During the 2022-23 academic year, 429 students at 53 different institutions are eligible for support.
Last year, about 467 students received the award, with 298 attending college in West Michigan.
“For many people who experienced foster care, the expenses associated with a college degree can be overwhelming or unattainable,” said MDHHS Director Elizabeth Hertel. “Everyone deserves the opportunity to pursue the educational path that is right for them and their career goals.”
Fostering Futures Scholarship Trust Fund is a Section 170(c) organization, so all contributions are eligible for an income tax deduction.
Anyone who could not attend the event can make donations to the Fostering Futures Scholarship Trust Fund by visiting www.FosteringFutures-MI.com. Fostering Futures Scholarship Trust Fund is a Section 170 (c) non-profit organization. All contributions are eligible for an income tax deduction.
Since 2012, fundraising efforts have totaled more than $1.3 million, with funds awarded as scholarships in the year they were raised.
Image Caption: Diane Brewer (MET Program Director) and Foster Futures Spotlight Scholar Elaina Marcum draw a gold ticket winner from a fish bowl during the Fostering Futures Scholarship Trust Fund dinner.
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On March 29, following the release of the State’s fiscal year 2022 Annual Comprehensive Financial Report, Treasurer Rachael Eubanks announced that Michigan’s state income tax will decrease to 4.05% for one year. Driven by low unemployment, strong business growth, and an overall strong economy, families will pay lower taxes when they file next year for tax year 2023.
“Michigan’s strong economic position has led to a reduction in the state income tax from 4.25% to 4.05% for 2023,” said Treasurer Rachael Eubanks. “When Michiganders file their 2023 state income taxes in 2024, they will see the rate adjustment in the form of less tax owed or a larger refund.”
“As a result of our growing economy and strong fiscal management, Michigan’s state income tax will decrease to its lowest in 15 years,” said Governor Whitmer. “Our state is headed in the right direction, bolstered by low unemployment, projects bringing jobs and supply chains home, and fiscally responsible, bipartisan leadership that took us from a projected $3.5 billion deficit in 2020 to a $9.2 billion surplus this year, paid down $14 billion in debt, and brought the rainy-day fund to an all-time high. This year, we permanently rolled back the retirement tax on our seniors, quintupled the Working Families Tax Credit for 700,000 families, and now, everyone’s income tax will decrease for a year. In total, we have put $1.6 billion in tax relief back in people’s pockets without cutting any critical services or programs.”
State Income Tax Reduction
In 2015, Michigan enacted a law requiring a temporary reduction of the state income tax if the general fund grew faster than the rate of inflation in any year starting in 2023. Now, because of strong economic growth and robust state revenues, the state income tax will decrease to 4.05% for one year. This will equate to a savings of approximately $50 for the average Michigan taxpayer.
Attorney General Dana Nessel issued a legal opinion finding that the tax reduction will apply to tax year 2023. It requires consensus by and annual reevaluation by the Treasurer, Senate Fiscal Agency, and House Fiscal Agency. It is anticipated the formal step of adopting a consensus with updated revenue estimates will occur as a procedural matter at the May Consensus Revenue Estimating Conference. The tax change will be effective Jan. 1, 2023 for tax year 2023.
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Protecting MI Pension Grant Application Now Open
On April 17, qualified local units of government could begin the application process for applying for a Protecting MI Pension Grant.
Local units with a qualified retirement system have until June 15, 2023, to apply using the electronic submission system (Michigan eSignature Solution). Qualified units are strongly encouraged to ensure the accuracy and completeness of of the application packet prior to submission.
For detailed information regarding the Protecting MI Pension Grant application process or the Michigan eSignature Solution, please visit the Protecting MI Pension Grant Application website at Michigan.gov/MIPensionGrant. On this page, you can also access application forms, instructions, checklists, a sample governing body resolution, and frequently asked questions related to this grant application process.
As a reminder, in addition to the application submitted online through Michigan's eSignature Solution, the following supporting documentation is required to be attached prior to submission:
- Protecting MI Pension Grant Affidavit (Form 5887): Must be signed by Chief Administrative Officer and Notarized.
- Copy of approved local government governing body resolution authorizing the chief administrative officer to file a claim for a grant payment for the Protecting MI Pension Grant Program.
- Copy of actuarial valuation(s) utilized in audited financial statements used to complete the most recent Form 5572 submitted as of 12/31/2021 for all qualified retirement systems that are requesting grant awards.
- Most recent actuarial valuation as of Dec. 31, 2022, for all qualified retirement systems that are requesting grant awards.
- Copy of court-ordered judgement levying a millage to cover local government pension costs (only required if applicable).
Need more information? Questions?
Additional information related to FAQs, program guidelines, and application materials are available at Michigan.gov/MIPensionGrant. Please be sure to sign up for Treasury's Local Government email alerts to be notified of additional updates to this grant program and other local government notifications.
Questions regarding the Protecting MI Pension Grant can be directed to Treasury by e-mail at [email protected]
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My Career at MI Treasury: SUZIE NICHOLS
As the Bureau Director over the Accounting and Financial Services, Suzie’s leadership responsibilities ensure that Treasury’s banking relationships are sound and all of the financial transactions that come in and out of Treasury are correct. Here’s how her Treasury career began…
MI CAREER PATH and MY MENTORS
I have a Bachelor of Business Administration degree with an emphasis in accounting, and I worked briefly in the accounting department of an assisted living facility before applying to the state of Michigan. I started with the state almost 28 years ago in December 1995, working for one year as an Internal Auditor for the Department of State. I audited branch offices; license plate tabs were still printed ahead of time back then and I would actually go in and count them all. I had to make sure that the number of tabs the branch office said they had were physically in their stock room.
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 April is Financial Literacy Month, and financial know-how is vitally important for Michigan's children, young adults, families, and senior citizens. In addition, having a population of informed, financially-empowered individuals benefits our economy and has long-reaching impact on us all. In this episode, Treasurer Eubank's guest is Brian Rakovitis, director of Economic Inclusion at the Community Economic Development Association of Michigan (CEDAM) to tell us about his agency’s work on this important topic.
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