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Governor Gretchen Whitmer called for paid family and medical leave (PFML) nearly a year ago and recent polling data indicates that the majority of Michigan voters support this policy. However, legislation to create a state PFML program has stalled largely due to vocal opposition from business groups who object to the proposed funding mechanism for the program - a payroll tax partially funded by employer contributions, and uncertainty about just how much a state PFML program would cost Michigan to implement.
On August 7th the MI Department of Labor and Economic Opportunity (LEO) released an actuarial analysis, with cost projections for the PFML program outlined in proposed legislation. The study estimates the cost as $3.2 billion by 2035, depending on the level of benefits provided.
Notably, this actuarial study only quantifies program cost, while remaining silent regarding potential benefits, which could be considerable. For instance, a recent cost-benefit analysis of paid family leave in Pennsylvania concluded that the state stood to gain $18 in benefits for every $1 spent on the program.
Now is a good time to reach out to your legislators and let them know what a state paid family and medical leave program would mean for you. For more information about Michigan’s PFML proposal, see ECIC’s Early Childhood Bill Tracker, which includes links to advocacy tools developed by Think Babies Michigan and other partner organizations.
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