As Michigan lawmakers push their ideas for funding schools, district leaders urge inflationary increases

A photograph of the back of an elementary school student's shoulder focused on a worksheet and pencil.
Michigan lawmakers in the House and Senate are far apart on some of the specifics of how schools would be funded for the 2026-27 school year. (Sylvia Jarrus for Chalkbeat )

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Michigan superintendents say they’re not asking for much from lawmakers in this year’s state budget.

They would like to see school districts get funding increases that account for inflation. They want lawmakers to stop the years-long practice of diverting money from the state School Aid Fund and using it to fund higher education. And they want lawmakers to approve a state budget by the July 1 deadline to avoid what happened last year when lawmakers weren’t able to compromise on a final budget until October.

“We’re not asking for the moon,” said Steven Tunnicliff, superintendent for the Genesee Intermediate School District.

He and nine other superintendents from intermediate school districts — agencies that provide varied services to local schools within their borders — spoke last week during a virtual media roundtable. Earlier that week, the Michigan House passed its version of the state budget, including how schools would be funded. The Michigan Senate unveiled its K-12 school budget proposal, which cleared an appropriations subcommittee before being moved to the full Senate.

In recent years, lawmakers and Gov. Gretchen Whitmer have touted record increases in funding for schools, because the amount allocated has consistently increased. But Angie McArthur, superintendent for the Eastern Upper Peninsula Intermediate School District, said funding increases in the last two years have fallen below the rate of inflation.

“That means that while the number on paper gets a little bigger, the real purchasing power or what schools can actually provide with that money goes down,” she said. “Energy costs have risen, health insurance premiums have gone up, transportation costs have gone up, and supplies cost more. The funding increase doesn’t cover any of that.”

The superintendents argued the School Aid Fund was created to fund K-12 schools. But for years, lawmakers have paid for higher education with money from the fund. They cited a recent poll commissioned by the K-12 Alliance of Michigan, an advocacy group for public schools, that showed a large majority of residents who were polled oppose diverting the money. (The K-12 Alliance hosted Thursday’s media roundtable.)

The budget proposals show lawmakers are far apart on critical issues such as whether districts should receive more funding for some of the most vulnerable students in the state. The Michigan House is controlled by Republicans, while the Michigan Senate is controlled by Democrats.

Below are some highlights of the proposals.

There is agreement on per-pupil funding

Michigan schools would receive a minimum grant of $10,300 per pupil. That’s up from $10,050 for the current fiscal year. The grant is the lowest amount a school district or charter school can receive.

A big debate this budget session: whether to expand weighted funding

Michigan has been moving toward a weighted funding system through a formula called the opportunity index. The index has allowed the state to provide additional funding for school districts for students from low-income families and students who speak little or no English.

The Senate’s proposal would establish that system into law for the next 15 years, giving school districts stability and ensuring there would be annual increases in funding for students from low-income homes and English language learners over that 15-year period. This is how it would work: For the coming school year, a district with the highest proportion of students from low-income families would receive a base amount of $10,300 for all students. For each student identified as economically disadvantaged, a district would receive nearly 27% above that base amount for the 2026-27 school year and 47% above it for the 2040-41 school year.

Whitmer had a similar recommendation in her budget proposal. But the House budget would maintain the current system.

School meals would be available to all again

Both the House and Senate have continued funding to provide free meals for students, regardless of income. Both versions would extend the program to include private schools. Last year, nonpublic schools were included as a one-time expenditure.

The House budget goes further, banning the sale of soda or candy in schools that participate in the universal meals program. It also bans schools from serving food that includes such chemical additives as brominated vegetable oil, potassium bromate, propylparaben, titanium dioxide, and multiple food dyes.

Additional money for tutoring, literacy proposed

Both budget proposals include money for tutoring providers to apply for and receive state grants to provide high-impact tutoring for students.

The House budget also includes a new program that would reimburse parents of at-risk students for the costs of private tutoring.

Both budgets invest more in efforts to improve literacy, given the poor academic performance of Michigan students on state and national exams. The House budget also provides $100 million to improve math performance, another area of concern for Michigan students.

School safety and mental health

Lawmakers would increase funding for school safety and mental health. What’s interesting here is that the Senate version strikes some of the controversial language that prompted dozens of school districts to sue the state last year. This happened after the budget approved in October included a new requirement that in order to get the money, district and school leaders had to agree to waive privilege to disclose information that would otherwise be legally protected if a school shooting or other mass casualty event occurs. They also had to agree to allow a comprehensive state investigation of such incidents. Both the Michigan Court of Claims and the Michigan Court of Appeals ruled the language did not violate the state Constitution.

The Senate proposal would only require districts to agree to be subject to a comprehensive investigation after a mass casualty event. It removes mention of waiving privilege.

The House version keeps most of the language intact, but it adds wording that says “the waiver of any privilege by a recipient of funds under this section does not waive any privilege or rights held by any individual, including employees of the recipient.”

Meanwhile, the Senate proposal provides funding for community violence intervention programs that prevent youth violence.

House proposal would penalize districts for DEI, curriculum featuring race and gender stereotyping

The House budget seeks to impose financial penalties if a district uses state money to fund diversity, equity, and inclusion, or DEI, programs; if a district’s curriculum includes race or gender stereotyping, and if a district allows transgender girls to participate in girls’ sports or provides multistall unisex bathrooms for students. Finally, the proposal would require districts to notify parents or legal guardians if a child requests to use a different name or pronoun in school.

Lori Higgins is the bureau chief for Chalkbeat Detroit. You can reach her at lhiggins@chalkbeat.org.

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