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News & Events Digest





*May 2023*
Revenue Conference Opening Remarks

Mary Ann Cleary, Director, House Fiscal Agency, Kathryn Summers, Director, Senate Fiscal Agency, Conference Chair, Rachael Eubanks, State Treasurer, and Christopher Harkins, State Budget Director, provide opening remarks during the May Concensus Revenue Estimating Conference on May 19. (Story below.)

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Michigan 529 Awareness Week Encourages Families to Save with MET for their Children?s College Education

529 Plan

In celebration of National 529 Day and?*Gov. Gretchen Whitmer?s proclamation of May 22 through May 29 as 529 Awareness Week [ [link removed] ]*, the Michigan Education Trust (MET) is encouraging families to give the gift of college credits to Michigan children ? and it is throwing in an incentive to sweeten the deal.

MET, the state?s 529 prepaid tuition savings program, will?*waive enrollment fees on new contracts opened online between May 22 and June 2.*

Purchasers can open a MET contract online at?SETwithMET.com [ [link removed] ]?using?*coupon code 529DAY23*.

Administered by the Michigan Department of Treasury, MET allows contract holders to buy future college tuition credits at today?s prices.

?The MET program is a dependable option for Michigan families, regardless of their financial situation, to begin saving for their children's college education,? said MET Executive Director?*Diane Brewer*. ?Gov. Whitmer?s 529 Awareness Week proclamation and National 529 Day signify the importance of college savings and present special opportunities to motivate families to start thinking and preparing financially to ensure children?s access to higher education is unfettered.?

Brewer added, ?Anyone can contribute to a child?s college education savings plan. Parents, grandparents, aunts, uncles or other loved ones can all use MET to help children reach for their dreams ? even if those dreams have yet to be imagined.?

Brewer noted that an increasing number of young adults face significant debt after completing their college education. By getting an early start in offsetting the often-overwhelming financial burden associated with higher education, MET enables more people to attend college and start their career without being saddled with massive debt.

?No one can predict a child?s future, but MET can help a family prepare for it by paying for future education at today?s costs,? Brewer said. ?Saving even just a little bit early on can go a long way toward avoiding future college debt.?

While the main reason for investing in MET is to purchase future college tuition at today?s prices, Brewer also pointed out the 529 plan?s tax advantages. For instance, withdrawals from MET are not taxed by the state or federal government when it comes time to pay for qualified higher education expenses.

Michigan residents who are MET Purchasers can also claim a state tax deduction on the total contribution they make during a calendar year.



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Applications Now Being Accepted for the Fostering Futures Scholarship

Fostering Futures

Young adults who have experienced foster care on or after their 13th?birthday are eligible to apply for a scholarship from the Fostering Futures Scholarship Trust Fund.

The?priority deadline for the?Fostering Futures Scholarship [ [link removed] ]?application for academic year 2023-24 is August 1, 2023. Eligible students enrolled at a Michigan degree-granting college or university may now apply to receive scholarship funds for tuition, fees, room, board, books and supplies.

Applications received after August 1, 2023, may be placed on a waitlist.

?The Fostering Futures Scholarship can make a difference in the lives of our foster care youth who aspire to attend college," said Robin Lott, director of the Office of Postsecondary Financial Planning. "Those who have experienced foster care typically don't have the support systems in place to assist with college costs. Every dollar helps create opportunities for our youth who have experienced foster care."

Since 2012, fundraising efforts have totaled more than $1.3 million. This money has been raised through individual donations, group donations, sponsorships, ticket sales, auctions and many volunteer-based fundraising events.

Most of the funds raised have been awarded as scholarships, with a small portion being designated to an education endowment that supplies investment income for scholarships.

Fostering Future Scholarship [ [link removed] ]?applicants with questions should contact the state Treasury Department's Student Scholarships, Grants and Outreach area [email protected]?or call toll-free at 1-888-447-2687.



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Gov. Whitmer Signs Executive Directive Aimed at Lowering Costs, Reducing Student Loan Burden on Michiganders

School Calculating

On May 24,?in?anticipation of a U.S. Supreme Court decision on the president's student loan proposal,?Governor Gretchen?Whitmer signed?an executive directive?aimed at?lowering?costs and?reducing?the student loan burden?for?Michiganders?by instructing State of Michigan?departments to?assess the costs and benefits of the?state?re-entering the market as a student loan originator, determine?enhancements to?protect borrowers,?improve?educational materials,?and?consider?any additional measures to support borrowers.??

?To?ensure?Michiganders?have?the tools they need to compete in a global economy,?we must work together to?expand?access to?quality, affordable?higher education,? said?*Governor Whitmer*. ?In Michigan, we have established?several?programs to?lower the cost of?skills training and?college?so?anyone can envision their future in our state.?Together, we will keep creating economic opportunity and growing our state by lowering costs, attracting and retaining young people, and?meeting business talent needs.?Let?s?keep?working together to?put every young person on a path to a bright future by expanding their education options and ultimately, improving their quality of life.??

?Paying for a college education often requires students and families to take out loans to cover tuition, books and housing,? said?*State Treasurer Rachael Eubanks*. ?Finding innovative and responsible ways to make student loans more affordable can help students achieve their dreams while minimizing the amount of debt needed. I look forward to working with Governor Whitmer and the other state departments to problem-solve this very important issue.??

*Student Loan Executive Directive*?

Governor Whitmer?s executive directive?aims to?explore ways to?lower costs for Michiganders by?instructing?the Michigan Department of Treasury to?look at the benefits of the State of Michigan?restarting as?a student loan originator; including whether this could permit Michigan borrowers to access lower interest rates and enable borrowing by underserved communities, and?the effects of allowing Michiganders to refinance their current loans with the state.??

Additionally,?the?Michigan?Department of Agriculture and Rural Development?(MDARD), including the Office of Rural Development?(ORD),?the Office of the State Employer?(OSE), and the Department of Labor and Economic Opportunity?(LEO)?must?consider any additional measures they can take to lower costs for borrowers?and reduce student loan burdens?for Michiganders.???

In order to further protect borrowers in Michigan, Governor Whitmer instructed the Department of Insurance and Financial Services (DIFS)?to?study current regulations and determine what?improvements are needed.?The study will consider whether regulatory improvements could?make loans more affordable and increase transparency in the handling of loans.?The study?will?also consider whether the creation of a student loan ombudsperson would meaningfully further these goals.?

The Michigan Department of Treasury?must also?work together with the Michigan Department of Education (MDE), DIFS, and the boards?of higher education institutions in Michigan to assess current materials and outreach strategies to new and existing borrowers, identify gaps, and develop and disseminate additional educational materials for borrowers and potential borrowers.?

View?Executive Directive 2023-03 [ [link removed] ].?



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Administration, Fiscal Agencies Reach Consensus on Revenue Estimates during May Conference

Revenue Conference Opening Remarks

State Treasurer Rachael Eubanks, Senate Fiscal Agency Director Kathryn Summers and House Fiscal Agency Director Mary Ann Cleary on May 19 reached consensus on revised economic and revenue figures for the remainder of Fiscal Year (FY) 2023 and for the upcoming 2024 and 2025 fiscal years.

?Michigan?s economy continues to show signs of growth and resilience,??*State Treasurer Rachael Eubanks*?said. ?Today?s revenue forecast reflects the tax relief recently provided to retirees and working families. Strong revenue growth has allowed us to provide sustainable tax revenue relief while also maintaining and investing in critical programs to create an environment where individuals and businesses can thrive.?

Detailed numbers are available at on the Michigan Department of Treasury's website [ [link removed] ] and Michigan.gov/CREC [ [link removed] ].

May?s revenue forecast reflects strong economic growth that resulted in a one-year individual income tax rate change. In addition, the forecast represents legislation that rolls back taxes on retirees and increases the Earned Income Tax Credit for Working Families from 6% to 30%.

The forecast of Corporate Income Tax revenues was revised upward by $400 million, reflecting a thriving business environment.

?Our economic strategy is working because of our efforts to bring thousands of manufacturing jobs home and put money back in people?s pockets,? said?*Gov. Gretchen Whitmer*. ?Earlier today, our state?s top economists shared that revenues are well above pre-pandemic levels after factoring in our $1 billion tax cut for seniors and working families, and corporate tax revenues are up significantly. Just yesterday, we learned that Michigan?s unemployment rate is 3.8%, below 4% for only the third time since the 1970s and labor force participation rate is up. All of the work we are doing is helping more families and businesses make it in Michigan. Let?s keep our foot on the accelerator and deliver a balanced budget that lowers costs on kitchen-table priorities and keeps growing our economy.?

These revenue estimates are based on the most recent economic projections and forecasting models. As with any economic and revenue forecast, there are potential risks to the estimates agreed to today, including unexpected changes in the national economy and international economic issues.

?The forecasts discussed and revenues agreed to today indicate the nature of Michigan?s economy remains strong,? said?*State Budget Director Christopher Harkins*. ?I look forward to working with our legislative partners to enact a sustainable budget with strategic and purposeful investments that will continue to move Michigan forward.?



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REMINDER: Protecting MI Pension Grant Application Now Open

Local Government Update

Qualified local units of government are reminded that they can 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 [ [link removed] ]?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 [ [link removed] ]. 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 [ [link removed] ]. 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 [email protected] <[email protected]>



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Applicants Wanted for MI Fire Equipment Grant Program

Firefighting

Local units of government can now apply for a grant to purchase fire equipment for part-time, on-call or volunteer firefighters through the MI Fire Equipment Grant Program.

Within the State of Michigan?s Fiscal Year 2022-23 Budget, the Michigan Department of Treasury was appropriated $12 million to establish and operate the MI Fire Equipment Grant Program. Grant awards of up to $10,000 are available for local units of government for any eligible purchase made after August 1, 2022.

Beginning on May 26, local units could begin the application process for the MI Fire Equipment Grant Program. Applications and supporting documentation must be submitted through the State of Michigan?s eSignature Solution by July 10, 2023.

Grant awards are anticipated to be announced in early-August 2023.

Local units can apply on Michigan.gov/MIFireEquipmentGrant [ [link removed] ]. Program documents ? including Frequently Asked Questions (FAQs), application forms and instructions, checklists and other supporting documents ? can also be found on the website [ [link removed] ].



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My Career at MI Treasury: ROBIN LOTT

Robin Lott

"As the Bureau Director for the Office of Postsecondary Financial Planning, Robin Lott?s responsibilities include policy and oversight for Michigan?s 529 College Savings Plans. The?""Michigan Education Trust [ [link removed] ]""?(MET),?""Michigan Education Savings Program [ [link removed] ]""?(MESP), MI?""529 Advisor Plan [ [link removed] ]""?and?""MiABLE [ [link removed] ]""?Program fall under her umbrella, as well as the Student Scholarships, Grants and Outreach, the Student Loans Repayment Division and the state?s new Financial Wellness Initiative. After spending the majority of her career in the MET office, Robin attributes her present success to area subject matter experts, but no one discounts her own scope of knowledge and experiential wisdom. Here?s how her Treasury career began????"

I applied for my current position in 2020 after an ?AHA!? moment where I realized I wasn?t a spring chicken anymore -- and if I wasn?t going to spend the rest of my work life in MET, this new position offered a great opportunity.

The position would afford me the space to accomplish new goals, while giving me the possibility to choose my predecessor and start the institutional knowledge transfer. I feel passionate about preserving the work that was accomplished over the years that I worked on MET/529 Plans, and I believed the role would allow a smooth transition for Treasury when I finally retire.



*Read More About Robin Lott on LinkedIn* [ [link removed] ]


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Podcast with Diane Brewer
No-Cost Benefits of a College Savings Plan and Your Small Business

Join host State Treasurer Rachael Eubanks and her guest, MET Executive Director Diane Brewer, to learn how small businesses can help recruit and retain employees at no extra cost by offering them a Michigan college savings plan.

*Listen to the Podcast Now* [ [link removed] ]






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