Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the School Finance topic
No spam. Unsubscribe anytime.
State officials: Michigan school funding still billions short despite recent increases
Summary
Deputy Superintendent Diane Golczynski and Spencer Simmons of MDE told the board the state has increased education funding in recent years but remains underfunded by billions when compared with School Finance Research Collaborative (SFRC) benchmarks, especially for students in poverty, English learners, special education and capital needs.
State Department of Education officials told the State Board on Jan. 14 that Michigan’s recent education funding gains do not yet meet the levels recommended by the School Finance Research Collaborative (SFRC) and other studies, leaving multi‑billion‑dollar gaps for high‑need students and capital costs.
Deputy Superintendent Diane Golczynski and Spencer Simmons, director of the Office of Financial Management, updated board members on progress toward Goal 8 of Michigan’s Top 10 Strategic Education Plan: providing adequate and equitable school funding. They said the state foundation allowance (state plus local) has increased in recent years and that specific increases were made to transportation, at‑risk (Section 31a), English learner funding and other lines in the FY 2025 budget.
But the presenters said SFRC’s recommendations use a broader base (local, state and federal) and call for substantial additional funding. SFRC recommended a 35% funding uplift above base to address child poverty needs; using SFRC’s 2018–adjusted base, officials said the shortfall for children in poverty could be roughly $3.2 billion. Transportation and capital costs were cited as areas that require additional study and funding; the department noted a transportation reimbursement of $125 million in FY 2024 and FY 2025 but said SFRC’s transportation recommendation would be roughly $488 million.
On special education, the presentation said reported expenditures for 2022–23 totaled about $3.99 billion while explicit special‑education revenue (federal, state and local designated sources) totaled about $3.39 billion, a difference the presenters described as an underfunding of roughly $601 million for that year. The SFRC recommended larger, weighted funding increases by disability severity (e.g., partial weights for mild and moderate needs and full reimbursement for the most significant disabilities), but the department said a special education cost study in the FY 2025 budget is underway to generate more precise need estimates.
Board members pressed for clarity on definitions and the data. Nikki Snyder asked what the presentation meant by “high needs” (department staff replied that, in the poverty/concentration analysis, the term referred to concentrations of poverty and that English-learner and special‑education counts are separate categories). Members also requested more detailed breakdowns showing how local millage revenues, federal funds (including pandemic relief), and state aid combine at district level to reach the reported totals; presenters noted the complexity of Michigan’s funding streams and referred to MDE’s Bulletin 1014 (published Feb. 2024) for per‑pupil all‑sources totals.
Why it matters: The presentation frames ongoing budget discussions. State officials said that while FY 2023–25 budgets raised funding historically since Proposal A (1994), gaps remain when measured against independent cost studies and when accounting for concentrations of need, transportation burdens on rural districts, and deferred capital maintenance.
What the board asked for next: Board members requested the special education cost study results and the capital‑cost study when available, and suggested future briefings that break down per‑pupil funding including federal pandemic relief and local millage impacts.
Ending: MDE officials said studies in progress should provide more precise estimates and that FY 2023–24 showed historic funding growth, but that the state remains underfunded relative to SFRC benchmarks and other analyses.
