This Race to the Top - Early Learning Challenge (RTT-ELC) annual performance report for the year 2016 describes Michigan's accomplishments, lessons learned, challenges, and strategies Michigan will implement to address those challenges. Strengthened investment in high-quality early learning and development continues to energize educational improvement efforts in Michigan. From the governor's office and the legislature to local providers, business leaders, schools, and families, people are deeply committed to improving opportunities for young children with high needs in Michigan. In 2013, the Michigan Department of Education, Office of Great Start (MDEOGS) held conversations with 1,400 parents of young children, educators, business leaders, and local and state program directors to inform development of a statewide plan to achieve Governor Snyder's stated outcomes for young children: (1) Children are born healthy; (2) Children are healthy, thriving, and developmentally on track from birth to third grade; (3) Children are developmentally ready to succeed in school at the time of school entry; and (4) Children are prepared to succeed in fourth grade and beyond by reading proficiently at the end of third grade. The resulting publication, entitled "Great Start, Great Investment, Great Future: The Plan for Early Learning and Development in Michigan," illustrates that Michigan's citizens recognize the vital foundation that a system rich in parent involvement, community and state collaboration, and high-quality accessible early learning and development programs can provide for their youngest citizens. Drawing from the guiding principles of this plan and with the identified outcomes for young children as a focal point, in 2013 Michigan submitted a comprehensive application for a Race to the Top - Early Learning Challenge (RTT-ELC) competitive federal grant. As a result, Michigan was awarded $51,737,456 for the purposes of improving early learning and development in the state over a period of four years, beginning January 2014 and ending December 2017. The grant is focused on the improvement of early childhood systems through: (1) increasing access to high-quality programs for children with high needs; (2) implementing and coordinating an integrated system of programs; and (3) evaluating and rating program quality. The Michigan Department of Education, Office of Great Start was identified as the lead agency for RTT-ELC implementation in the grant application. Michigan has prioritized its work into seven projects for improving early childhood outcomes for all children. These projects are designed to support the creation of a truly collaborative system of early learning and development--one that requires the collective efforts of policymakers, program directors, providers, and parents. The projects are as follows: (1) Grant Management and Governance; (2) Improving Quality through Increased Participation in Great Start to Quality; (3) Promotion of Physical and Social-Emotional Health; (4) Enhancing and Increasing Access to the Great Start to Quality System; (5) Improving the Early Learning and Development Workforce; (6) Measuring Outcomes for Children, Programs, & Educators; and (7) Increasing Family Engagement.