Senate subcommittee warned of risk to Title I and urged fuller funding of Michigan's Opportunity Index

Chairman Senator Jim Camilleri convened the Senate Appropriations Subcommittee on PreK-12 on March 13, 2025, and heard testimony that federal and state formula funds supporting Michigan schools could be disrupted if staffing and appropriations at the U.S. Department of Education change.

The Michigan Department of Education told the committee that Title I, Part A and IDEA are key federal formula grants—about $509,000,000 in Title I funds and $460,000,000 through IDEA were distributed to Michigan districts for the 2024-25 school year—and that interruptions in federal administrative staffing could delay or complicate access to those dollars. The committee also heard detailed advocacy for sustained and increased state at-risk funding (Section 31a) and fuller funding of the Opportunity Index that allocates those dollars.

"It's crucial that we fully fund, fully understand the role that federal funds do play in supporting our schools," Senator Camilleri said in opening remarks. Olivia Ponti, legislative liaison for the Michigan Department of Education, introduced MDE staff who described the programs and distribution methods. "Title I, Part A was created under the Elementary and Secondary Education Act of 1965," Michael Powell, assistant director in MDE's Office of Educational Supports, told the subcommittee, explaining Title I's origins and its purpose to close achievement gaps.

MDE officials provided the following key figures and program mechanics: Michigan has 822 open and active local education agencies (LEAs); 808 (98.3%) are eligible and elected to receive Title I funds for 2024-25. The state excludes 56 intermediate school districts (ISDs) from the LEA count. For 2024-25 Michigan distributed approximately $509,000,000 in Title I, Part A funding and approximately $1,035,000,000 in Section 31a (at-risk) allocations. MDE staff said participation in Title I supplemental funds is not mandatory but noted nearly all eligible LEAs elected to participate.

Michelle Williams, manager of MDE's Special Populations unit, contrasted Title I and Section 31a: both serve similar at-risk populations and permit targeted-assistance and schoolwide models, but Title I uses a federal "rank and serve" process to determine which schools receive funds while Section 31a gives districts more flexibility in use and eligibility calculations. "Districts will use both Title I, Part A funding and Section 31a to support activities related to those improvement plans and student outcomes," Williams said.

Committee members pressed MDE on how federal personnel cuts could affect schools. MDE staff said the department has received assurances that access to funds should continue through the current federal fiscal year ending June 30, 2025, but acknowledged uncertainty about staffing and processes after July 1. When asked to quantify how many school employees are directly paid from federal Title I dollars (reading specialists, paraprofessionals, social workers, counselors), MDE officials said district uses vary widely and that they could not provide an immediate statewide count.

Jeff Cobb, director of government affairs at Ed Trust Midwest, testified in support of increasing funding for the Opportunity Index in Section 31a. He described the Opportunity Index (enacted by the Legislature in 2023) as a banded formula that weights funds toward districts with higher concentrations of poverty and said the index is currently underfunded by about $2,000,000,000 relative to weights set in statute. Cobb asked the Legislature to add $400,000,000 per year over five years to bring funding toward the statutory weights and to add transparency and guardrails, including building-level tracking and a proposal that at least 75% of funds be spent at the buildings where eligible students attend.

"Students living in high concentrations of poverty typically have greater challenges and require additional services," Cobb said, noting research from Massachusetts and California linking targeted funding increases to improved student outcomes over several years. He urged continued state investment so districts can hire and retain staff, expand tutoring and multi-tiered systems of supports, and boost third-grade reading and eighth-grade math proficiency.

Committee debate reflected differing views on risk and state responsibility. Some members argued it would be premature to presume large federal cuts and said the state has resources to respond. Others said the House budget proposal that, as presented, omitted Section 31a funding for the next fiscal year represented a political priority that would require negotiation and that leaving at-risk dollars on the table would harm students in high-poverty districts. Several senators asked for better tracking of how at-risk and Opportunity Index dollars are spent and for additional data on the top Title I recipients; MDE staff agreed to provide more detailed district-level information after the hearing.

Votes at a glance

- Motion to approve draft meeting minutes of March 6, 2025: moved by Senator Polhinke, supported by Senator Hertel; "Without objection, the minutes are adopted." (outcome: adopted by unanimous consent; formal roll-call tally not recorded in the transcript.)

- Motion to adjourn the subcommittee: moved by Senator Camilleri, supported by Senator Kleinfeld; "Without objection, the subcommittee on Pre K-12 is now adjourned." (outcome: adjourned by unanimous consent; formal roll-call tally not recorded in the transcript.)

What's next

MDE officials said Superintendent Rice will meet with the committee on the next scheduled date to provide additional detail on fiscal planning and potential impacts. Committee members asked for follow-up materials including district-level Title I and Section 31a allocations, a list of the largest Title I recipients, and any available estimates of positions funded by federal formula dollars.

(Quotes and attributions are drawn from testimony and committee remarks recorded in the March 13, 2025, Senate Appropriations Subcommittee on PreK-12 transcript.)