Michigan has had several recent state legislative victories on policies to help low-income children and families, along with a proposed dramatic increase in funding to support Children’s Savings Account (CSA) programs. Advocacy efforts on these issues have been led by CEDAM (Community Economic Development Association of Michigan), a member of the Prosperity Now Community.  

CEDAM is a leading financial inclusion and community development organization in Michigan, which advocates for the expansion of CSAs, tax credits for vulnerable families, affordable housing and other policies intending to improve financial equity and community development across Michigan. CEDAM also impacts change through tax assistance, financial education, technical assistance, and a widespread commitment to amplifying community voices. We interviewed Brian Rakovitis, CEDAM’s Director of Economic Inclusion, earlier this month about the momentum in the state on CSAs and other policies. (Read More)  

Brian leads CEDAM’s CSA work, along with the Michigan Economic Impact Coalition (MEIC). He oversees Michigan’s CSA Network, which is a coalition of community foundations, government agencies, financial institutions, and more, all promoting the expansion of CSA programs across the state. 

Michigan CSA programs follow a community-based model, with individual institutions or local municipalities running their own CSA programs, rather than a state-level program. Brian and CEDAM help local institutions and municipalities run their own successful CSA programs by providing the necessary infrastructure through marketing, technical assistance, funding, IT support, and more. CEDAM also educates state legislators about the importance of the programs. 

Over previous years, CEDAM has worked with Michigan state legislators and the governor to pursue CSA expansion, and its hard work is paying off. This February, Governor Gretchen Whitmer released her FY24-25 budget recommendations, which included $10 million in funding for CSA expansion, a significant increase from the $2 million appropriated in 2021. According to Brian, “this boost in funding reflects the growing recognition of the importance of CSAs as a vital tool to increase postsecondary attainment in the state. Funding will go to support the development of new CSA programs, statewide infrastructure, outreach, education efforts and more.”  

In other good news for the state, the Michigan Legislature passed HB 4001, which expands the state Earned Income Tax Credit (EITC) and increases funding for affordable housing, two issue areas that Brian and CEDAM have also prioritized. Together, these policy wins will give a boost to low-income families across the state.  

Brian specified in his interview that the Michigan CSA Network is not particularly formal, but rather a group of individuals and institutions dedicated to improving financial inclusion, community development, and the welfare of children in Michigan. CEDAM has found success in preserving the local autonomy of communities and local programs, as community members know what incentives, educational opportunities, and advocacy efforts are best for their own communities.  

Moving forward, CEDAM plans to continue its work on CSAs, along with affordable housing tax credits, and consumer protection. It will also continue providing technical assistance, educational work, and tax assistance. Brian expressed hope that expanded state funding will improve the financial security of vulnerable Michigan families and children. In 2023, CEDAM is focusing on building on recent legislative successes and continuing to fight for expanded CSAs and a financially secure Michigan. 

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