Committee advances $1.5M opioid-settlement contract to expand Rx/ARCS Kids cash-transfer program

The Detroit Public Health & Safety Standing Committee on March 16 advanced a $1,500,000 contract (No. 6007651) with Michigan State University to administer the Rx/ARCS Kids cash-transfer program, sending the contract to new business with a recommendation to approve.

Councilmembers moved the item after hearing from Luke Schafer, who summarized program design and research findings. "The money goes both to administration of the program, and the large majority of the funds goes to the cash transfers to pregnant families and families with infants," Schafer told the committee. He said the program provides $1,500 in mid-pregnancy and $500 per month for six months after birth with no income limits for city residents who meet the pregnancy criteria.

Schafer cited published research from other Michigan sites, including Flint, that shows unconditional cash transfers increased prenatal-care engagement, improved birth weight outcomes and reduced preterm births and NICU admissions. He also said independent economic analyses showed each dollar spent in Flint generated additional local economic activity. "We're seeing reductions in eviction and reductions in postpartum depression," he added.

Committee members asked about sustainability. Schafer said state funding — the largest funder — is committed for three years and that philanthropy has nearly reached a three-year horizon as well; he said broad legislative and executive support in Michigan increases prospects for continuation beyond that period.

The chair noted the contract will use opioid-settlement funds to support both direct cash transfers and administration because of limits on the general fund. With no objections, the committee voted to send 6007651 to new business with the committee's recommendation to approve; the committee record did not show a roll-call vote, only committee approval by voice.