THE MICHIGAN FAMILY SUBSIDY ACT

The policy of deinstitutionalization and, more important, community integration, has achieved support on a state level in Michigan. As articulated by the Governor and the Department of Mental Health, Michigan adopted a goal of returning all children from state institutions and specialized nursing homes to local communities by 1986. Towards this purpose, Michigan established an innovative family subsidy program that provides direct cash subsidies to families with severe disabilities. The program was piloted in a single region prior to the passage of the Family Subsidy Act to provide subsidies on a statewide basis.

The subsidy is designed to help parents pay for the extra expenses incurred in having a child with severe disabilities (for example, equipment, respite, home renovation, diapers, and other services and materials). The subsidy amounts to $255 per month, an annual subsidy of $2,700 for eligible families. The eligibility criteria for the family subsidy program are: 1) the family's annual income must be less than $60,000; 2) the child must be 0 to 18 years of age (after that age, they are eligible for Supplemental Security Income); and, 3) the child must have a severe disability.

Support for the Act was gained by appealing to philosophical and economic grounds. As a philosophical rationale, supporters pointed to the needs of children with severe disabilities and their families. As an economic measure, they argued that the passage of the legislation would result in cost savings to the state by preventing out-of-home placements and encouraging families to take their children home from institutions and other alternative placements.

By encouraging, rather than discouraging, families to maintain their children at home, reversing the traditional pattern of developmental disabilities services, and placing increased control over services in the hands of direct consumers, the Michigan Family Subsidy Act is an important step in the right direction.