FY 2024-25: LIFELONG EDUCATION, ADVANCEMENT,
AND POTENTIAL
Summary: As Passed by the House
House Bill 5501 (H-1)
Analysts: Perry Zielak and Noel Benson
Difference: House
FY 2023-24 From FY 2023-24
Enacted FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 Enacted
as of 2/7/24 Executive House Senate Conference Amount %
IDG/IDT $0 $0 $0 $ $ $0 NA
Federal 0 413,951,400 432,881,700 432,881,700 NA
Local 0 0 0 0 NA
Private 0 250,000 250,000 250,000 NA
Restricted 0 1,862,300 1,862,300 1,862,300 NA
GF/GP 0 160,921,700 183,984,900 183,984,900 NA
Gross $0 $576,985,400 $618,978,900 $ $ $618,978,900 NA
FTEs 0.0 340.0 313.0 313.0 NA
Note: Appropriation figures for FY 2024-25 include all proposed appropriation amounts, including amounts designated as "one-
time."
Overview
The Department of Lifelong Education, Advancement, and Potential (MiLEAP), created under Executive Order 2023-6, is
responsible for administering and coordinating statewide education efforts outside of the K-12 school system, including
child care, child care worker and facility licensing, early childhood education, out of school time, and higher education
related programs. The department combines offices from the Department of Education, Department of Licensing and
Regulatory Affairs, Department of Labor and Economic Opportunity, and the Department of Treasury to oversee these
programs.
FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
1. Departmental Administration and Support FTE 0.0 36.0
Executive provides $8.7 million Gross ($7.8 million GF/GP) and Gross $0 $8,691,900
authorizes 30.0 classified and 6.0 unclassified FTE positions for Federal 0 911,200
departmental administration and support, including executive direction GF/GP $0 $7,780,700
and operations and property management. House concurs.
2. Information Technology Gross $0 $990,300
Executive provides $1.0 million Gross ($767,800 GF/GP) for information Federal 0 222,500
technology services and projects. House concurs. GF/GP $0 $767,800
OFFICE OF EARLY CHILDHOOD EDUCATION
3. Child Development and Care Subsidy Transfer Gross $0 $364,500,000
Executive transfers in $364.5 million Gross ($50.8 million GF/GP) from Federal 0 313,659,800
the Michigan Department of Education (MDE) for the child development GF/GP $0 $50,840,200
and care subsidy, which provides support for low-income and other
qualifying families in need of child care to work or participate in training
or educational activities. House concurs.
4. Child Care Provider Rate Increase Gross $0 $75,854,800
Executive provides $37.9 million Gross ($19.0 million GF/GP) to Federal 0 37,927,400
increase hourly child care provider reimbursement rates by 10%. House GF/GP $0 $37,927,400
provides $75.9 million Gross ($37.9 million GF/GP) to increase hourly
child care provide reimbursement rates by 20%.
House Fiscal Agency 1 5/8/2024
 FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
5. Child Care Licensing Bureau Transfer FTE 0.0 147.0
Executive transfers in $25.0 million Gross ($3.8 million GF/GP) and Gross $0 $24,986,500
authorization for 147.0 FTE positions from the Department of Licensing Federal 0 20,653,100
and Regulatory Affairs (LARA) for the Child Care Licensing Bureau and Restricted 0 544,600
additional licensing staff. House concurs. GF/GP $0 $3,788,800
6. Child Development and Care Contracted Services Transfer Gross $0 $18,900,000
Executive transfers in $18.9 million Federal from MDE for the Early Federal 0 18,900,000
Childhood Investment Corporation, which administers child care quality GF/GP $0 $0
initiatives, License Exempt Monitoring, and the T.E.A.C.H. Early
Childhood Michigan Scholarship program for child care providers. House
concurs.
7. Office of Great Start Operations FTE 0.0 70.0
Executive transfers in $14.4 million Gross ($2.5 million GF/GP) and Gross $0 $14,388,100
authorization for 70.0 FTE positions from MDE for the operations for the Federal 0 11,597,100
Office of Great Start, which administers early childhood education Private 0 250,000
programs for general and special education students and the child Restricted 0 64,600
development and care public assistance programs. House concurs. GF/GP $0 $2,476,400
8. Child Development and Care External Support Transfer Gross $0 $11,028,100
Executive transfers in $11.0 million Federal from MDE for an Federal 0 11,028,100
interdepartmental grant to the Michigan Department of Health and GF/GP $0 $0
Human Services (DHHS) to support child development and care related
activities, including program eligibility determinations and responding to
administrative hearings. House concurs.
9. Foster Care Child Care Provider Rate Increase Gross $0 $8,500,000
Executive provides $8.5 million Federal to increase the child care Federal 0 8,500,000
provider reimbursement rate for children in foster care by 30%, with a GF/GP $0 $0
goal of incentivizing services and supports for foster care children.
House concurs.
10. Child Care Facility Inspections FTE 0.0 5.0
Executive provides $4.8 million Federal and authorizes 30.0 FTE Gross $0 $806,700
positions to increase staff support for child care facility inspections. Federal 0 806,700
House provides $806,700 Federal and authorizes 5.0 FTE positions. GF/GP $0 $0
11. Family Child Care Networks Gross $0 $4,000,000
Executive provides $4.0 million Federal to maintain family child care Federal 0 4,000,000
networks that provide support to home-based child care providers, such GF/GP $0 $0
as language skills. The networks were originally funded using COVID-
19 stimulus funds. House concurs.
12. Third Shift Worker Child Care Pilot Program Gross $0 $4,366,000
House provides $4.4 million Gross ($366,000 GF/GP) for a pilot program Federal 0 4,000,000
that would expand child care providers for third shift workers. GF/GP $0 $366,000
13. Tri-Share Child Care Program Gross $0 $3,400,000
Executive transfers in $3.4 million GF/GP from LEO for the Tri-Share GF/GP $0 $3,400,000
Child Care program, which helps partner private and public
organizations to increase access to high-quality and affordable child
care for working families. House concurs.
14. Tri-Share Child Care Program Administration FTE 0.0 1.0
Executive provides $176,500 GF/GP and authorizes 1.0 FTE position for Gross $0 $176,500
the administration of the Tri-Share Child Care program. House concurs. GF/GP $0 $176,500
15. Child Care Centers Drinking Water Quality FTE 0.0 2.0
Executive provides $500,000 GF/GP and authorizes 2.0 FTE positions Gross $0 $500,000
to provide specialty water bottles to test the quality of drinking water at GF/GP $0 $500,000
child care facilities. House concurs.
House Fiscal Agency 2 5/8/2024
 FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
16. Head Start Collaboration Office FTE 0.0 1.0
Executive transfers in $425,100 Gross ($64,500 GF/GP) and Gross $0 $425,100
authorization for 1.0 FTE position from MDE for the Head Start Federal 0 360,600
Collaboration Office, which coordinates between Head Start agencies GF/GP $0 $64,500
and state and local entities that provide services for all low-income
children from birth to age 5 and pregnant women. House concurs.
17. Child Care Development and Care Fund Federal Medical Gross $0 $0
Assistance Percentage (FMAP) Rate Adjustment Federal 0 221,900
Executive provides $221,900 Federal with a corresponding decrease of GF/GP $0 ($221,900)
GF/GP due to annual cost sharing adjustments from the FMAP rate
increasing from 64.94% to 65.13%. House concurs.
OFFICE OF EDUCATION PARTNERSHIPS
18. Office of Education Partnerships Program Transfers FTE 0.0 6.0
Executive transfers in $1.1 million GF/GP and authorization for 6.0 FTE Gross $0 $1,062,500
positions from MDE for the new Office of Education Partnerships to GF/GP $0 $1,062,500
support the Family and Community Engagement program, the
Governor's Educator Advisory Council, and the Michigan PreK-12
Literacy Commission. House concurs.
19. Out-of-School Time Administration FTE 0.0 0.0
Executive provides $366,500 GF/GP and authorizes 2.0 FTE positions Gross $0 $0
to provide support for the Michigan Out-of-School Time program in the GF/GP $0 $0
School Aid budget, which provides grants for before and after school
programs along with summer school activities. House does not include.
OFFICE OF HIGHER EDUCATION
20. Student Financial Assistance Program Transfers FTE 0.0 33.0
Executive transfers in $8.9 million Gross ($7.7 million GF/GP) and Gross $0 $8,924,600
authorization for 33.0 FTE positions from the Department of Treasury for Restricted 0 1,253,100
the administration of student financial assistance programs, Dual GF/GP $0 $7,671,500
Enrollment payments, and the Michigan Student Scholarship and Grants
portal. House concurs.
21. Michigan Reconnect Administration and Office of Higher FTE 0.0 12.0
Education Program Transfers Gross $0 $3,276,000
Executive transfers in $3.3 million GF/GP and authorization for 12.0 FTE GF/GP $0 $3,276,000
positions from LEO for the new Office of Higher Education to provide
administrative support for the Sixty by 30 Initiative, Michigan Reconnect,
and Future for Frontliners. House concurs.
22. Michigan Reconnect Program Transfer Gross $0 $61,500,000
House transfers $61.5 million GF/GP from the Michigan Department of GF/GP $0 $61,500,000
Labor and Economic Opportunity (LEO) for the Michigan Reconnect
Program. The program provides last-dollar scholarships primarily to
individuals 25 or older (temporarily expanded to 21-24 year-olds through
November 2024) with a high school diploma or equivalency certificate to
complete a Pell-eligible associate degree or skills-based certificate.
23. Hunger-Free Campus Grant Pilot Program Gross $0 $500,000
House provides $500,000 GF/GP for a 1-year pilot program at Michigan GF/GP $0 $500,000
State University and Northern Michigan University to reduce hunger on
campuses through establishment of campus food pantries, campus meal
plan credit donations, and various additional policies.
House Fiscal Agency 3 5/8/2024
 FY 2023-24 FY 2024-25
Enacted House
Major Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
ONE-TIME APPROPRIATIONS
24. Michigan Center for Adult College Success Gross $0 $2,100,000
House provides $2.1 million GF/GP one-time for operations costs for the GF/GP $0 $2,100,000
Michigan Center for Adult College Success. The center works with adult
students returning to postsecondary education through the Michigan
Reconnect Program.
25. Child Care Worker Subsidy Pilot Program Gross $0 $0
Executive provides $60.0 million GF/GP one-time to create a 3-year pilot GF/GP $0 $0
program to provide child care workers with child care related subsidies.
House does not include.
26. Economic Adjustments Gross NA $101,800
Executive reflects increased costs of $101,800 Gross ($8,500 GF/GP) Federal NA 93,300
for negotiated salary and wage increases (5.0% on October 1, 2024), GF/GP NA $8,500
actuarially required retirement contributions, worker's compensation,
building occupancy charges, rent, and other economic adjustments
House concurs. (Note: This item does not reflect all economics
adjustments because some economics adjustments were applied to
appropriations prior to the transfer to MiLEAP.)
Major Boilerplate Changes from FY 2023-24
STANDARD BOILERPLATE
Sec. 201. State Spending and Payments to Local Units of Government – NEW
Executive adds language that provides total state spending from state sources and payments to be made to local units of
government. House concurs.
Sec. 202. Applicability of Management and Budget Act – NEW
Executive adds language that subjects appropriations to Management and Budget Act, 1984 PA 431. House concurs.
Sec. 203. Terms and Acronyms – NEW
Executive adds language that defines "Department," "DHHS," "Director," and "FTE" as they appear in the article. House
adds definitions for "IDG" and "Standard report recipients."
Sec. 204. Internet Report Requirements – NEW
Executive adds language that requires MiLEAP to use internet to fulfill reporting requirements; requires transmission of
reports via email. House concurs with minor revisions.
Sec. 205. Purchase of Foreign Goods – NEW
Executive adds language that prohibits purchase of foreign goods or services if competitively price and comparable quality
American goods or services are available; gives preference to goods and services from Michigan businesses and
Michigan businesses owned and operated by veterans. House concurs with minor revisions.
Sec. 206. Communication with the Legislature – NEW
House adds language that prohibits MiLEAP from taking disciplinary action against an employee for communicating with
a legislator or staff.
Sec. 207. Out-of-State Travel – NEW
Executive adds language that requires MiLEAP to report on out-of-state travel expenses in the prior year that were paid
for, in whole or in part, with state appropriations. House concurs with minor revisions.
Sec. 208. Hire of Outside Legal Counsel – NEW
House adds language that prohibits MiLEAP from hiring a person to provide legal s