Clinton County Regional Education Agency to funnel $18 million to private organizations

When Michigan’s lawmakers created the current state budget, they used a Greater Lansing area education service agency to distribute millions of dollars in hand-picked projects to areas far from the capital city.

The state budget routinely allocates grants to organizations selected by legislators who want to bring pork home to their district, with this year’s number close to $1 billion. There’s no competitive process or accountability for how the money is spent. The grants are usually directly disbursed to the intended recipient. This year’s budget, however, involves a middleman.

The Clinton County Regional Educational Service Agency, a unit of government that serves public school districts, will receive $75 million from the education budget. Of that money, it must send $18 million to predetermined organizations throughout the state.

Some money delivered through the service agency will go to organizations already receiving funds through the Department of Labor and Economic Opportunity. The Detroit Police Athletic League in Wayne County will receive a $500,000 grant and an additional $250,000 from the education budget.

The state education budget awarded $3.5 million to the State Alliance of YMCAs in LEO grants and $1.2 million from the education budget. The $1.2 million will support Youth in Government, a civics education program for middle and high school students, said Fran Talsma, president and chief executive officer of The State Alliance of YMCAs.

“The funds will reduce barriers to participation through scholarships and support teacher advisors in this afterschool program,” Talsma told Michigan Capitol Confidential in an email. “Nearly 100 Michigan schools participate in the program, and last year, over 2,000 Michigan youth took part in the year-long program.”

The $3.5 million LEO grant will be “equitably disbursed” to 26 YMCAs to “expand community-based programming for youth, families, and seniors as well as capital projects.”

The Downtown Boxing Gym is allotted a $2 million LEO grant and a $1 million education grant, as CapCon recently reported.

Other organizations receiving a share of the $18 million include:

• Future Farmers of America: $4 million

• Boys and Girls Club of Southeast Michigan: $3 million

• HYPE Athletic Center: $3 million

• Brilliant Detroit: $1.5 million

• Flint Center for Educational Excellence: $1 million

• Friends of the Children: $500,000

• Detroit Opera: $800,000

• Special Olympics: $500,000

• Horatio Williams Foundation: $500,000

• Friends of the Children: $500,000

• Detroit Science Center: $500,000

CapCon emailed the Clinton County RESA Board, seeking comment. It has not responded.

CapCon asked the nonpartisan House Fiscal Agency why the budget sent $18 million to a county education service district. Noel Benson, a fiscal analyst, responded.

“Under Article IX Sec. 11 of the Michigan Constitution, School Aid Fund dollars may be used only for aid to school districts, higher education, and school employees’ retirement systems. Subsection (2) of Sec. 32n lists the eligible recipients of funding under this section, and it includes community-based organizations and other private entities that would otherwise not be eligible for School Aid Fund, so a pass-through is required to distribute funding to them.”