Resources

For many years, policymakers and the public have been engaged in an ongoing discussion about how Michigan schools are to be funded. Since Proposal A was adopted in 1994, our state’s schools have been funded by a combination of federal, state and local resources. While the state and federal formulas are complex, they are generally based on the number of students attending each school.

Most of the money schools get is distributed by the state. Michigan allocated a foundation allowance of $8,700 per student in FY 2022. Every year, school districts count the number of students they have in October and February, and these numbers are blended and multiplied by the foundation allowance amount.  

Michigan schools also get a good deal of federal money, usually awarded to categories of students based on their needs and experiences. For example, students who are considered “at-risk” based on key socio-economic factors are eligible for federal Title I money.

Based on extensive research, we know the amount of money our state’s schools receive today isn’t enough to get the job done well. Report after report has emerged telling us state funding should be increased. For decades, Michigan has underfunded its schools, and now we are reaping the results of that disinvestment.

Over the years, Michigan has been taking money meant for K-12 schools and using it for other things, in addition to an overall decline in tax revenue. This has led to a big drop in funding for schools. Adjusted for inflation, the total amount of money for K-12 education decreased by 30% between 2002 and 2015, mostly because the state started giving less money to schools. The amount of money available per student also went down by 22% during the same period.

Michigan also doesn't provide enough money for special education compared to other states, which hurts all students. Federal law says students with disabilities should get a free and appropriate education, but it lets states decide how to pay for it. Michigan makes local and county governments responsible for most of the funding. But Proposal A stops local school districts from raising taxes to cover extra costs for special education, and intermediate school districts have limited abilities to get money for special education services.

How do we fix it?

Michigan must adopt and adequately support a new funding system that provides a strong foundation for all and focuses on providing equitable resources to students with the greatest needs, including those in poverty and enrolled in special education.

We believe additional resources also should be provided to children who need them most. For too long, our state has prioritized equal funding over equitable funding. This is in keeping with the old factory model of education that suggests every child is alike and must therefore cost the same.

But no two children are alike. And it’s true that some students require more financial support for their learning than others do, because they are unique beings with distinctive backgrounds that must be addressed at different levels.

Under today’s funding model, a student who requires a minimal level of additional support is funded at similar levels as one who requires a great deal of extra help. And there are many students who require extra support, due to circumstances beyond their control. Whether it’s a language barrier, a special learning need or other issue, many students merit more than a one-size-fits-all funding formula.

The funding also should be shared in ways that are fair. Students who are living in poverty, working to learn English, or receiving special education services should get additional money allocated based on their level of need.

Learn more in our full Framework for Transformation.