House proposes $417 per pupil increase for education alongside resource officer funding

The Michigan Legislature's recent meeting on June 11, 2025, focused on significant changes to school funding and appropriations, particularly regarding the foundation allowance and support for various educational initiatives.

The House proposed a notable 4.3% increase in the foundation allowance, raising the per pupil funding from $9,608 to $10,025. This proposal includes funding for cyber schools, which contrasts with the executive and Senate recommendations that suggested reducing support for these institutions.

Additionally, the House introduced a new funding structure that could increase per pupil payments to as much as $12,000 for certain districts. This plan includes an estimated $228 per pupil for Intermediate School Districts (ISDs) and $40.8 million allocated to non-public schools. A key requirement of this funding is that districts must employ at least one school resource officer and one mental health support staff member, with similar requirements for non-public schools.

Another significant proposal is the "hold harmless" payment designed to protect districts and ISDs from potential funding reductions due to the roll-up of appropriations. This measure would allocate approximately $138.8 million to ensure that no district faces a decrease in funding.

The meeting also addressed one-time funding from the school consolidation and infrastructure fund, which will be used for various initiatives, including competitive grants for infrastructure projects and incentives for reducing class sizes and implementing literacy programs.

In terms of retirement funding, the House plan maintains the current cap on the unfunded liability for the public school employees retirement system at 20.96%, which means districts will continue to bear this financial burden without state support to lower it.

Finally, the House proposed closing several reserve funds and depositing their remaining balances into the school aid fund, including significant amounts from the school transportation fund and the school meals reserve fund. This move aims to consolidate resources and enhance the overall funding available for education.

Overall, these proposals reflect a commitment to increasing funding for Michigan schools while addressing critical needs such as mental health support and infrastructure improvements. The next steps will involve further discussions and potential adjustments as the budget process continues.