House committee approves MDE budget with cuts to staff and new restrictions on grants and DEI

The Michigan House Appropriations Committee on June 2025 approved the H‑1 substitute to House Bill 45 76, the appropriations bill for the Michigan Department of Education (MDE), after presentations from House Fiscal staff and questions from members.

House Fiscal analysts described a smaller MDE gross budget in the proposal and large reductions to department staffing. Noel Benson, House Fiscal Agency analyst, said the House proposal “sets the MDE gross budget at a $133,200,000” and “FTEs are reduced by 118 to a total of 456.5 FTEs.” The budget document presented to the committee showed an overall gross decrease of about $31.7 million, including reductions of roughly $17.3 million from the general fund, $8.0 million from restricted funds and $6.4 million in federal funding.

Committee members pressed staff and the sponsor on details of the cuts and new policy language. Representative Rob Kelly, sponsor of the bill, framed the package as a shift in priorities: “These are bills…an opportunity for education in the state of Michigan, to be somewhat transformational,” he said. House Fiscal staff outlined major program and personnel changes, including the elimination of teacher certification fee revenues (removing about $8.0 million in restricted funds), removal of vacant positions (about $9.5 million and 65 FTEs), a $5.6 million reduction related to federal library services, and elimination of administrative support for partnership districts (about $3.6 million and 13 FTEs).

The H‑1 substitute also adds several boilerplate and policy conditions. Committee staff highlighted language that would require MDE employees to work in person five days per week (section 2.26), require quarterly reporting on grant awards (section 2.27), condition contractors to use E‑Verify (section 2.28), restrict use of funds for programs for noncitizens except qualified aliens (section 2.29), and prohibit department spending on DEI programs (section 2.31). The package would also make nonpublic schools eligible recipients for certain educator preparation funds and require reporting on those distributions (section 5.04).

Members voiced specific concerns. Representative Edwards questioned the in‑person work requirement’s effect on field workers and child welfare staff. Representative Glanville challenged the bill language that requires MDE to report on districts’ need to implement MTSS and reading intervention, saying MTSS is widely used and expressing concern about unfunded reporting requirements. Representative Snyder asked about the exclusion of a $1 million implementation appropriation for a dyslexia screening requirement enacted last session; Representative Kelly said the foundation allowance increase would address local implementation costs.

The committee adopted an amendment from Representative Farhat to add reporting on career and technical education (CTE) participation; the amendment passed unanimously in the committee. A subsequent amendment from Representative Steckloff to add $50 million for dual enrollment failed. On the motion to adopt the H‑1 substitute for House Bill 45 76, the clerk reported the roll call: 17 yays, 12 nays; the H‑1 substitute was adopted and the bill was reported with recommendation as amended.

The committee record shows the action was procedural and budgetary; no statutory enactment occurred during the meeting. Staff said several of the changes (for example, teacher certification fee elimination) assumed enactment of separate statutory changes or bills already passed in other actions.

As passed out of committee, the MDE appropriation is reduced in size with a mix of program eliminations, staff reductions and added restrictions and reporting requirements. The bill will proceed through the legislative process for further negotiation and possible modification.