Committee warns federal staffing cuts could delay $509M in Title I aid; stateSection 31a totals $1.035B

Chairman Camilleri opened the Appropriations Subcommittee on PreK-12 hearing by warning that recent federal staffing changes could jeopardize timely access to federal Title I funds that many Michigan school districts rely on.

"Without the necessary federal staff to process, approve, and distribute these funds, states like Michigan could face delays or uncertainty in accessing the money our schools depend on," Chairman Camilleri said, noting recent federal layoffs and staffing departures.

The Michigan Department of Education (MDE) told the panel that Title I, Part A is the largest federal formula grant in the Elementary and Secondary Education Act (ESEA) and that Michigan distributed about $509,000,000 in Title I, Part A to local education agencies (LEAs) for the 2024-25 school year. Michael Powell, assistant director in MDEthe Office of Educational Supports, and Shua Bang, financial unit manager, said 808 of Michigans 822 open and active LEAs (98.3%) are eligible and have elected to participate in Title I this year; 14 LEAs do not receive Title I because they are ineligible.

MDE staff also said Michigan receives roughly $460,000,000 in federal funding through the Individuals with Disabilities Education Act (IDEA), which with Title I approaches about $970,000,000 in federal support for K-12 services. Michelle Williams, manager of the special populations unit, explained that Title I funds are commonly used for intervention teachers, paraprofessionals, social workers and counselors, tutoring, professional learning and supports for students experiencing homelessness or foster care. She also summarized the Title I schoolwide 40% low-income threshold and the alternative targeted assistance option for buildings that do not meet the schoolwide threshold.

On state funding, Shua Bang and Michelle Williams explained Section 31a (often referred to in testimony as "section 31 a"), Michigans at-risk allocation, is distributed to all 822 LEAs and that the 2024-25 Section 31a allocation is approximately $1,035,000,000. Williams described similarities and differences between Title I and Section 31a: both support at-risk students and allow schoolwide or targeted models, but Title I follows a federal rank-and-serve allocation while Section 31a gives districts more flexibility and uses state counts of economically disadvantaged students and an opportunity-index banding.

Jeff Cobb, director of government affairs for Ed Trust Midwest, urged the subcommittee to increase funding for the Opportunity Index created by the Legislature in 2023 and used in Section 31a allocations. Cobb said the Opportunity Index bands districts by concentrations of poverty and that the index is underfunded relative to statutory weights. "We're asking you to prioritize underserved students by putting an additional $400,000,000 into the opportunity index in this year's budget," Cobb said, adding that funding the statutory weights in full would require about $2,000,000,000 more and that an additional $400,000,000 per year over five years would be a reasonable phase-in.

Committee members discussed the practical consequences of a significant Title I reduction. MDE staff said they had received assurances that access to funds should be maintained through the current federal fiscal year (ending June 30, 2025) but said staffing and funding levels after that date were uncertain. When asked whether MDE could quantify how many staff positions statewide depend on Title I and Section 31a dollars, Powell said local use varies by district (staffing, contracts, or other services) and that MDE did not have a single statewide headcount to provide at the hearing.

Lawmakers and advocates also reviewed district-level impacts. Committee speakers named several high-need districts that receive large Title I allocations, including Detroit Public Schools (approximately $123 million), Flint City Schools (about $14 million), Dearborn (about $13.4 million), Grand Rapids (about $10.1 million), Saginaw (about $10 million), Lansing (about $8.1 million), Hamtramck (about $7.3 million), Pontiac (about $6.9 million), Wayne-Westland (about $5.1 million) and Kalamazoo (about $5.1 million); MDE said it could not confirm the exact dollar amounts during the hearing but agreed those districts are among the largest Title I recipients.

On accountability and use of Opportunity Index dollars, Ed Trust Midwest recommended improved transparency and stronger reporting at the building level so districts and parents can track spending. Cobb urged a requirement that at least 75% of Opportunity Index dollars be spent at the building where the targeted students attend and suggested improved parental notification and building-level tracking to ensure funds reach intended students.

The subcommittee did not take any funding votes at the hearing. MDE officials said they would provide further details to the committee, and the chair noted that State Superintendent Dr. Rice was scheduled to meet with the panel the following day to address budget-planning questions.

Votes at a glance

- Motion to approve draft minutes of March 6, 2025, moved by Senator Polhinke and supported by Senator Hertel; approved without objection.

- Motion to adjourn the subcommittee, moved by the chair and supported by Senator Kleinfeld; approved without objection.