Citizens Research Council highlights funding disparities for Michigan's low income students

The Appropriations Subcommittee on School Aid and the Department of Education convened on March 25, 2025, to discuss critical funding issues affecting low-income students in Michigan. The meeting featured a presentation from the Citizens Research Council, a nonpartisan organization dedicated to public policy research, which highlighted two significant reports relevant to the K-12 budget.

The first report focused on federal funding for low-income students, specifically the distribution of Title 1 funds across Michigan's 800 school districts. The presenter emphasized that while Michigan receives approximately $500 million annually in Title 1 funding, the allocation is often inequitable due to federal provisions and historical congressional priorities. This has resulted in disparities in funding for districts with similar poverty levels, undermining the intended support for economically disadvantaged students.

The second report addressed upcoming reductions in at-risk funding due to changes in federal Medicaid eligibility policies, which could significantly impact the funding available to districts for students qualifying for free and reduced-price lunch. The presenter noted that these enrollment shifts would have a major effect on the amount of at-risk funding that districts will receive in the next fiscal year.

The discussion also revisited the historical context of Michigan's school funding, particularly the Proposal A reforms from the mid-1990s aimed at equalizing base funding across districts. While these efforts have succeeded in narrowing funding disparities, they have often come at the expense of prioritizing funding for at-risk students. The presenter pointed out that the state’s at-risk program had remained flat for decades, leading to a renewed focus on equitable funding models that consider the specific needs of low-income students.

A key recommendation from the School Finance Research Collaborative (SFRC) report was the adoption of a student-centered funding model, which would allocate additional resources based on student demographics and needs. This model suggests that students from low-income backgrounds require approximately 35% more funding than their peers to achieve state academic standards.

The meeting concluded with a call for continued attention to the inequities in Title 1 funding and the need for a more equitable distribution of resources to support low-income students effectively. The subcommittee members were urged to consider these findings as they prepare for upcoming budget decisions, emphasizing the importance of addressing the funding gaps that persist in Michigan's education system.