LANSING, MI -- The State of Michigan is not planning employee layoffs as a result of the federal sequester, but the estimated loss of more than $150.5 million in funding may have a significant impact on children, students and seniors.

The State Budget Office today outlined ways that the automatic federal spending cuts are expected to effect Michigan, including elimination of an assistance program that provides 21,000 needy children with a $137 clothing allowance each year.

"We've said from the start that Michigan would not be replacing lost federal dollars with state dollars due to sequestration and that still holds true," Gov. Rick Snyder said in a release. "We support getting the nation's fiscal house in order, though across-the-board cuts like this are not the way to go about it."

The sequester, which resulted from Congress' inability to agree on a targeted deficit reduction plan by March 1, will cost the state an estimated $59.2 million this fiscal year and another $91.3 million in 2014.

The SBO, which worked in conjunction with departments across state government, said the Department of Human Services will eliminate the children's clothing assistance program. The Department of Community Health also will reduce programs aimed at serving seniors, along with grant-funded programs for nutrition services and injury and disease prevention.

Schools will lose more than $54 million in funding, according to the SBO, but the impact may not be felt until next school year. Districts, which will need to adjust their budgets this summer, will face cuts in areas such as special education services, Title I funding, career and technical training, after-school programs, teacher quality grants and more.

The state had warned of potential layoffs last month, sending out 30-day notices to unionized workers in anticipation of potential staffing cuts.

Federal funding accounts for roughly $20 billion of the state's $48.2 billion budget, and the sequester-related loss of $150.5 million represents less than four-tenths of one percent of total state spending.

"The good news here is that we have our fiscal house in order and Michigan is in a good position to manage these cuts because we already made the tough decisions to get our budget in structural balance for the long term," State Budget Director John Nixon said in the release. "The past groundwork we've laid for fiscal responsibility makes Michigan well positioned to adjust and keep moving forward."

Check back to MLive for a closer look at departments and programs expected to lose federal funding as a result of the sequester.

Editor's note: This post was updated to correct a numbers error regarding federal funding levels in the state budget.