Michigan organization reveals education funding disparities in K-12 budget report

The Appropriations - School Aid and Department of Education meeting held on March 25, 2025, focused on critical issues surrounding school funding in Michigan, particularly for low-income students. The meeting featured discussions led by representatives from a statewide organization dedicated to nonpartisan public policy research, emphasizing their role in informing decision-makers rather than advocating for specific legislation.

The first major topic addressed was federal funding for low-income students, specifically how Title I funds are distributed across Michigan's 800 school districts. The organization highlighted a report released in October 2024 that examined the inequities in Title I allocations, which are intended to support economically disadvantaged students. Despite Michigan receiving approximately $500 million annually in Title I funding, the distribution remains inconsistent due to federal provisions that do not account for the varying needs of districts with high poverty rates.

Following this, the discussion shifted to the executive budget recommendation and anticipated reductions in at-risk funding due to changes in federal Medicaid eligibility policies. These changes are expected to impact the funding available for districts serving low-income students, as enrollment shifts could lead to significant reductions in at-risk funding.

The meeting also revisited the historical context of school funding in Michigan, particularly the effects of Proposal A from the mid-1990s, which aimed to equalize base funding across districts. While this initiative succeeded in narrowing funding disparities, it inadvertently led to stagnation in funding for at-risk students. The organization underscored the importance of a student-centered funding model, as recommended by the School Finance Research Collaborative in 2018, which advocates for additional resources based on specific student demographics and needs.

Key findings from the meeting included the acknowledgment that Michigan students from low-income backgrounds require approximately 35% more funding than the base allowance to meet educational standards. The current at-risk funding model, established under Section 31A, has only recently achieved full funding, but challenges remain in ensuring equitable distribution of resources.

The meeting concluded with a call for continued attention to the disparities in funding for low-income students, emphasizing the need for a more equitable approach that considers the unique challenges faced by districts with high concentrations of poverty. The discussions underscored the ongoing efforts to reform school funding in Michigan, aiming to provide all students with the resources necessary to succeed academically.