Census-Guided Economic Development Funds in Michigan
Michigan received close to $1 billion in census-guided economic development funds in FY 2022. Accurate census data is essential to properly distribute the funds across the state.
(Photos: Getty Images; Illustration: Leslie Garvey / POGO)
Many federal economic development programs use census data to help allocate funds to states and local communities based on the populations and needs of qualifying communities. Depending on the program, these federal assistance funds go to individuals, local governments, or intermediaries.
Census data helps inform federal programs that provide crucial support at the community level — but only if we get the census count right. Miscounts — under- or overcounts — can lead to communities not receiving their fair share of economic development funding. And the amount of money from these programs can be significant.
The Project On Government Oversight (POGO) tracked the spending for six census-guided programs focused on economic development down to the county level in Michigan in fiscal year (FY) 2022. The goal of the research is to underscore how important census accuracy is to each community in real dollars toward critical issues such as building community assets, overcoming employment barriers for youths and adults, and small business financing.
Accurate census counts not only determine the size of the pie Michigan receives from the federal government but often impact the amounts distributed to local jurisdictions as well. Under- or overcounts in key populations can result in some communities receiving less than their fair share, while others may receive more. A significant local miscount could even result in a double penalty for a community, first reducing the amount of money allocated to the entire state of Michigan for an assistance program, then allocating a smaller percentage of that reduced total to the miscounted community.
Our Approach
The Programs
We researched the local distribution of funds from the following six federal census-guided economic development programs in Michigan:
- Community Development Block Grant (CDBG) – Entitlement Grants
- The Department of Housing and Urban Development (HUD) provides annual grants to entitled cities and urban counties to promote community and economic development. This program funds revitalization projects and activities such as providing housing, improving community facilities and services, and acquiring blighted areas to create jobs or rehabilitation sites. The predominant goal is to improve the health and welfare of low- and moderate-income individuals.1 HUD defines income levels that are considered low or moderate.2
- Workforce Innovation and Opportunity Act (WIOA) Adult Program
- This program from the Department of Labor funds career development initiatives, including employment and training activities, as well as career services for low-income individuals and those with basic skills deficiencies. It fosters a mutually beneficial relationship by helping employers meet workforce needs while equipping individuals with the skills and opportunities necessary to create a strong, skilled workforce.3 The WIOA defines the low-income eligibility standards: An individual is considered low-income if their “total family annual income does not exceed the higher level of the poverty line or 70 percent of the LLSIL [Lower Living Standard Income Level].”4
- Workforce Innovation and Opportunity Act (WIOA) Youth Activities
- This program serves “eligible youths, ages 14-24, who face barriers to education, training, and employment.” Its goals are to mentor eligible individuals and provide resources for them to achieve successful employment and continue their education.5
- Workforce Innovation and Opportunity Act (WIOA) Dislocated Workers
- This program assists displaced and terminated or laid-off workers. It helps mitigate major economic dislocations and mass layoffs by helping workers re-enter the workforce quickly and effectively. It emphasizes aligning workers with in-demand industries and career pathways to promote long-term economic resilience.6
- 7(a) Loan Guarantees
- This program from the Small Business Administration provides loans of up to $5 million to help small businesses grow and thrive. By offering access to capital, eligible businesses are given an opportunity to expand, drive innovation, and create jobs. The program also prioritizes supporting underserved markets and fostering inclusive economic growth and opportunity.7
- Unemployment Insurance (UI)
- This joint state-federal program is intended to ease the impact on workers who have lost their jobs. Each state administers its own UI program with its own set of eligibility criteria. Workers must apply through their state’s designated platform to determine eligibility. Federal funds are used to pay administrative costs associated with implementing the program and processing claims. Qualified individuals receive cash benefits that are funded through state-level payroll taxes.8
The Regions
Our research identified spending totals in each of Michigan’s 83 counties, which we then grouped into seven state regions based on the regions used by the Michigan Department of Transportation.9
- Metro Region
- This region includes Macomb, Oakland, and Wayne counties.
- Bay Region
- This region includes Arenac, Bay, Clare, Genesee, Gladwin, Gratiot, Huron, Isabella, Lapeer, Midland, Saginaw, St. Clair, Sanilac, Shiawassee, and Tuscola counties.
- Grand Region
- This region includes Allegan, Barry, Ionia, Kent, Lake, Mason, Mecosta, Montcalm, Muskegon, Newaygo, Oceana, Osceola, and Ottawa counties.
- University Region
- This region includes Clinton, Eaton, Hillsdale, Ingham, Jackson, Lenawee, Livingston, Monroe, and Washtenaw counties.
- Southwest Region
- This region includes Berrien, Branch, Calhoun, Cass, Kalamazoo, St. Joseph, and Van Buren counties.
- North Region
- This region includes Alcona, Alpena, Antrim, Benzie, Charlevoix, Cheboygan, Crawford, Emmet, Grand Traverse, Iosco, Kalkaska, Leelanau, Manistee, Missaukee, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, Roscommon, and Wexford counties.
- Superior Region
- This region includes Alger, Baraga, Chippewa, Delta, Dickinson, Gogebic, Houghton, Iron, Keweenaw, Luce, Mackinac, Marquette, Menominee, Ontonagon, and Schoolcraft counties.
Overview: Regional Allocations of Census-Guided Economic Development Funds
Local allocations of the six census-guided economic development programs resulted in the distribution of $972.87 million across the state of Michigan in FY 2022. This represents a significant annual investment in supporting the economic development of the state. A miscount of Michigan’s census numbers, especially within key subpopulations (like lower-income households) could result in the entire state receiving less economic development funding than it truly needs for its inhabitants. A financial shortfall due to census miscounts not only affects the 2022 fiscal year but also the succeeding years until the next decennial census.
The regional distribution of the $972.87 million in tracked economic development and support funds for FY 2022 highlights a positive correlation between state population trends and funding levels. The Metro Region, with a population more than twice that of the Grand Region (the second most populous area), received the largest share of funding in the state. The Grand, University, and Bay Regions, with populations of 1.63 million, 1.49 million, and 1.39 million, respectively, demonstrate comparable spending patterns reflective of their similar population sizes. The Southwest, North, and Superior Regions, each with populations under 800,000, have correspondingly smaller funding totals.
Given that accurate census counts are critical to funding programs that support our communities, advocates in Michigan should encourage officials at the local and state levels to prioritize preparation for a successful 2030 decennial census. Officials can work with the Census Bureau to update residential addresses through the Local Update of Census Addresses (LUCA) Program, which allows early participation by state, county, tribal, and city officials to ensure local address files are up to date and complete. As the decennial census approaches, communities can play a crucial role in educating the public about the process and its importance. Elected officials should allocate sufficient resources to conduct more targeted outreach to hard-to-count and historically undercounted populations, such as young children and Black Americans.10
Advocacy and local engagement can have significant impact on the census results both in terms of the completeness of the count and the process of what exactly gets counted. Until recently, the Census Bureau defined people with origins in the Middle East and North Africa (MENA) within the White racial category. Since Michigan is home to a large Arab American population, local advocates have been pressing for changes in the race and ethnicity categories to ensure better representation of those communities in the census results.11 The Census Bureau recently updated its standards and will include a Middle Eastern or North African classification on the 2030 Census. The Census Bureau will also combine its race and ethnicity questions for the next decennial census, which the agency hopes “will produce more accurate race/ethnicity data for our nation.”12
Metro Region
The Metro Region consists of three counties located in the southeastern part of the state. The region is Michigan’s most densely populated and highly urbanized area, encompassing the city of Detroit, along with its surrounding suburbs and towns. In addition to Detroit, the region includes cities such as Warren, Sterling Heights, and Dearborn. The three counties in the Metro Region are the most populated and have the largest workforce in the state.13
In FY 2022, the Metro Region received $397.97 million in census-guided funds from the six economic development programs we tracked. Wayne County received the highest amount of funding in the state, totaling $185.53 million. The largest funding sources included Community Development Block Entitlement Grants, 7(a) Loan Guarantees for small businesses, and unemployment insurance, each exceeding $34 million. Additionally, WIOA programs distributed between $7 million and $8 million. Oakland was the only county in this region to receive more than Wayne under the 7(a) Loan Guarantees program.
Oakland County received $135.69 million with 83.4% — $113.23 million — coming from 7(a) loans alone; the remaining programs sent significantly less funding to the county. This may indicate significant small business growth in Oakland County.
Macomb County received the least in this region, totaling $76.75 million (still a significant amount compared to the rest of the state). But although Macomb County’s population is approximately half the size of Wayne County’s, it received less than half of Wayne County’s funding.
Concerns have been raised about the accuracy of the recent census population numbers in this region, specifically for Detroit. In 2022 and again in 2024, the City of Detroit sued the Census Bureau, claiming the bureau undercounted certain neighborhoods in the 2020 Decennial Census. In the lawsuits, the city argued two points: First, the bureau’s uniform methodology for counting housing units was flawed, and second, the methodology discriminates against Black and Hispanic residents.14 This undercount likely deprived the residents of Detroit of millions of dollars of support from federal economic development programs.
Bay Region
The Bay Region in Michigan, also known as “the thumb,” covers a 15-county area in the east-central and southeastern part of the state, extending from the Saginaw Bay area along Lake Huron to the northern parts of the Detroit metropolitan area. The region is a mix of urban, suburban, and rural communities.
The largest cities in the region are Flint in Genesee County, Saginaw in Saginaw County, Midland in Midland County, and Bay City in Bay County. The region includes significant areas devoted to agriculture, particularly in the more rural counties like Tuscola, Sanilac, and Huron.
In FY 2022, the Bay Region received a total of $113.90 million from these six census-guided economic development programs. Out of the 15 counties, Genesee received the largest amount of funding by far with $40.36 million, almost 35.4% of the regional total. Population-wise, Genesee accounts for about 28.8% of the total regional population, so the amount of funding was driven by more than just population.
Bay, Saginaw, and St. Clair counties all have populations greater than 100,000, and higher populations correlated with higher funding. However, Huron and Midland counties break the trend: Huron County received more funding than Midland County, despite having less than half the population.
Arenac County received the least funding, approximately $480,000, from economic development programs. Shiawassee and Arenac county each received about 38% of their total economic development funding from the three WIOA programs, the largest proportion of WIOA funds relative to other counties in the region. In contrast, Bay and Huron received the smallest portions, around 4% of their total funds, from these programs. This distribution closely mirrors the percentage distribution trend of individuals employed within each county’s labor force.15
Some counties with similar populations received widely different funding totals. For example, Midland County has 94% of Lapeer County’s population but received only 43.9% of Lapeer’s federal funding for economic development. Huron and Clare counties are nearly equal, but Huron received twice as much in economic development funds as Clare. These examples highlight that there is no direct causation between population size and funding allocation. Instead, they point to the need for further research to determine whether these counties are under- or over-resourced.
Grand Region
The Grand Region consists of 13 counties located in the western part of Michigan’s lower peninsula, bordering Lake Michigan. The region includes both highly developed urban centers, like Kent County’s Grand Rapids (the second largest city in the state after Detroit), and more rural areas with more agricultural and natural spaces. In addition to Grand Rapids, the region includes notable cities like Wyoming and Kentwood in Kent County, Georgetown Township in Ottawa County, and Muskegon in Muskegon County. Those three counties and Allegan County are all classified as urban, and the other nine counties in the region are classified as rural.16
In FY 2022, the Grand Region received $155.73 million in census-guided funds from the six tracked economic development federal programs. Kent County has the largest population in this region by far and has received 55.6% of the regional funds.
Muskegon and Allegan Counties each received more than $10 million; both counties are classified as urban.17 The proportion of funds Allegan County received compared to Muskegon County aligns roughly with their population size: Allegan has 69.1% of Muskegon’s population and received 61.4 % of their funding.
Barry, Ionia, Lake, Mason, Mecosta, Montcalm, Newaygo, Oceana, and Osceola counties are classified as rural, and their funding totals are considerably less.18 Among these counties, we found that despite Osceola County receiving the highest proportion of WIOA funding from the six economic development programs, it still has one of the higher unemployment rates in the region.19 Several factors could contribute to this outcome, including limited awareness of WIOA programs, insufficient resources to apply, labor supply challenges, geographic considerations, or eligibility criteria.
University Region
The University Region consists of nine counties located in the southern and central parts of Michigan’s lower peninsula. The region includes a mix of urban and suburban areas, as well as rural communities. The area includes the University of Michigan in Ann Arbor and Michigan State University in East Lansing, as well as the state capital, Lansing.
The three most populated counties in the region are Washtenaw, Ingham, and Livingston. Washtenaw has more than 350,000 residents, Ingham has around 280,000, and Livingston has almost 200,000. Collectively, the three counties are home to more than half of the region’s population. Three other counties — Jackson, Monroe, and Eaton — each have between 100,000 and about 150,000 residents, demonstrating the widely urbanized clusters in the region.
The largest cities in the region are Ann Arbor in Washtenaw County and Lansing in Ingham County.
In FY 2022, the University Region received approximately $126.87 million from the six tracked economic development programs. As the most populated county in the region, Washtenaw unsurprisingly received the largest share. However, Monroe County also stands out; despite not being among the three most populated counties, it received the second-highest amount of funding. Monroe County has the highest unemployment rate in the region, which might signal a greater need for economic development assistance in Monroe County.
In Eaton and Hillsdale Counties, at least 20% of their respective total funding was derived from WIOA programs, and at least 40% from unemployment insurance. These are significant investments made toward the more than 154,000 individuals living in both counties.
Southwest Region
The Southwest Region consists of seven counties located in the southwestern corner of the state, bordering Indiana. This region includes a mix of urban, suburban, and rural areas. Kalamazoo, Calhoun, and Berrien counties are the most populated counties of the region. Kalamazoo County is the most urbanized county in the region, with more than a quarter of a million residents, while Berrien and Calhoun each have close to 150,000 residents.
Kalamazoo is home to Western Michigan University and Kalamazoo College. The region also has Battle Creek in Calhoun County, which ranked 32nd in the state by population. Battle Creek, known as the Cereal City for its history with companies like Kellogg’s, has a strong industrial base but has faced economic challenges in recent years.
The Southwest Region received $91.81 million in census-guided economic development assistance funds from the six tracked programs in FY 2022. Kalamazoo County, the most populated, received the most economic development funding for nearly all of the programs except for 7(a) Loans (Calhoun County received about $1 million more).
There were local efforts in Berrien and Cass County to ensure that everyone was counted in the 2020 decennial census; based on previous census counts and recounts, Berrien and Cass County were at risk for undercounts.20 In FY 2022, Berrien County received $16.53 million and Cass County $4.59 million.
North Region
The North Region consists of 21 counties in the northern portion of Michigan’s lower peninsula, extending from the shores of Lake Michigan to Lake Huron. The region is primarily rural and remote, with small towns, seasonal populations, and limited urban development. Its economy is largely driven by tourism, agriculture, and forestry. Grand Traverse County is the most populated county in the region, with almost 100,000 residents. Most of the other counties have between 10,000 and 35,000 residents. In FY 2022, the North Region received $61.66 million from the six census-guided federal funds.
The North Region has the second highest percentage of counties where at least 30% of each county’s economic development funding derives from the three WIOA programs; the region also has counties with unemployment rates that exceed 5%.21
Manistee and Iosco counties have nearly identical populations and unemployment rates.22 Yet FY 2022 spending data shows that Manistee County received about 6.5 times more funding from the six tracked economic development programs than Iosco County. It’s not clear why this is, and points to an avenue for further research.
Roscommon County has the highest unemployment rate in the region, yet unemployment insurance accounts for only 12.7% of the total county funding received. On the other hand, Wexford County received the largest share of its economic development funds from unemployment insurance, at a substantial 64.4%. This is not only the highest share in the region but also the fourth highest in the entire state. Again, this could be due to factors like accessibility and awareness of eligibility, rather than a reflection of the actual demand or need for assistance.
Superior Region
The Superior Region, also known as the Upper Peninsula (UP), consists of 15 counties located in Michigan’s northern peninsula and separated from the rest of the state by the Straits of Mackinac. The region is rural and remote, with small towns and few urban centers. Economic activities focus on tourism, mining, forestry, and some manufacturing.
Marquette is the most populated county in the region, with around 65,000 residents. Houghton, Delta, and Chippewa counties each have populations of around 36,000 residents. The region includes several of the least populated counties in the state, including six counties with fewer than 10,000 residents each: Alger, Baraga, Schoolcraft, Luce, Ontonagon, and Keweenaw.
In FY 2022, the Superior Region received $24.92 million within these six census-guided economic development funds. Marquette County, the region’s population leader, did not receive the largest amount of assistance. Instead, Delta County received double the funding than Marquette County (despite having half the population), due to its high receipt of 7(a) loans and unemployment insurance.
The region has the highest percentage of counties where at least 30% of each county’s economic development funding derives from the three WIOA programs. Schoolcraft County has the highest proportion of funds derived from the Unemployment Insurance program at 65.9%, but Mackinac County has the highest unemployment rate.23 Mackinac County also received relatively little funding from the three WIOA programs.
Delta and Chippewa counties have similar populations, but Delta received nearly twice as much funding as Chippewa. This is likely the result of high funding from 7(a) loans, potentially signaling greater small business growth in Delta compared to Chippewa.
Interestingly, Mackinac, Alger, and Houghton counties received similar funding amounts despite substantial differences in their population sizes. A similar pattern became evident between Iron and Menominee counties, which received comparable total funding but differ markedly in their demographics. This again highlights factors beyond population when it comes to census-guided funding, and points to the need for additional research.
Community Development Block Grant – Entitlement Grants
USAspending.gov data was used to generate county totals for this program. POGO filtered for FY 2022 awards under this program with the state of Michigan as their place of performance. The data was downloaded and award amounts were aggregated based on the county’s place of performance.24
WIOA – Adult Program; WIOA – Youth Activities; WIOA – Dislocated Workers
For all three WIOA programs, POGO took Program Year 2022 allocations to Local Workforce Development Areas (LWDA) from the end tables in the June 30, 2022, Policy Issuance PI 22-10.25 POGO produced county-specific estimates for WIOA programs based on the amounts allocated to each LWDA. POGO estimated a portion of the total LWDA funding amount to each county within the area based on the ratio of that county’s 2022 population to the total 2022 population in the LWDA. These estimates were made with the assumption that those counties with higher general populations would also have similarly higher numbers of participants in need of the services under each program.
7(a) Loan Guarantees
POGO produced FY 2022 county-specific estimates for the 7(a) Loan Guarantee program based on the gross approval value of loans reported in SBA Loan Reports on Data.gov.26 POGO downloaded the loan report data and isolated all awards listed for the 7(a) program in FY 2022 with recipients in Michigan that included subprogram description of guaranty. The awards were then assigned county locations based on the listed zip codes of the borrowers, and the gross approval values of the loans were then totaled for each county.
Unemployment Insurance
The Michigan Department of Labor & Economic Opportunity provided POGO with the unemployment insurance claims by county for the weeks covering FY 2022. The claim counts were totaled for each county and those numbers were used to calculate the percentages each county had to process relative to the state total. A relatively small number of claims had no county location assigned and had to be removed from the state total. These were approximately 142,000 out of more than five million claims for the years. The county percentages were then applied to the Department of Labor’s total allocation for FY 2022 to Michigan for administration of the Unemployment Insurance program to produce county allocation estimates for the funds.27
Population Data
The U.S. Census Bureau and Michigan Department of Management and Budget’s Office of the State Demographer provided the state’s population information broken down by county.28
Unemployment Rate Data
The Michigan Department of Technology, Management & Budget provided labor market information including unemployment rate data through the Local Area Unemployment Statistics (LAUS) program.29
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