5 Things Parents Need to Know About Michigan’s New State School Budget

Education advocates are split on this year’s school aid budget–on one hand, major strides were made in investments for at-risk learners, while money for things like mental health were slashed.

School funding is even more important following the shutdown of in-person learning during the COVID-19 pandemic.

Educators and researchers have sounded the alarm on learning loss from this period, something that increases in funding for supplemental instruction can help offset. The Education Recovery Scorecard reports that if Michigan continues to recover at last year’s rate, full recovery will take decades in reading and five years in math.

In addition to a relatively slow recovery, 2022 test scores from the National Assessment of Education Progress (also known as the Nation’s Report Card) show Michigan’s early literacy rates are among the worst in the country.

This year’s education budget totals $598 million. Governor Whitmer has increased per-pupil funding by 26 percent since taking office.

Read on for a breakdown on some of the most important changes to Michigan’s school aid budget.

1. Increased per pupil funding tied to pension offsets

While the school aid budget does allocate money more per pupil, the increase in funding is not coming from an increase in the foundation allowance. Instead, the state budget pumps more money into the Michigan Public School Employees’ Retirement System, which will offset district expenses to the tune of $400 per pupil.

2. Significant cuts to mental health funding

Funding for mental health was cut drastically by more than $300 million. Last year’s mental health allocation was $328 million, compared to this year’s $26.5 million. The Michigan Department of Education has expressed major concern over the dramatic cut, pointing out that it leaves thousands of social workers, guidance counselors, nurses, and psychologists facing potential job loss in addition to a mental health care gap for students.

3. Universal PreK funding falls short, but Great Start Readiness Program sees boost

Governor Whitmer attempted to fully fund free universal PreK, but those efforts failed this fiscal year. Supporters of free universal PreK did gain some ground, however, as access to the Great Start Readiness Program was expanded. The GSRP was allocated roughly $112 million (about 20 percent) more in funding from last year.

4. Increased support for teacher retention in early grades

Schools are now allowed to use more funding to put directly toward teacher retention–especially teachers in grades K-3. The emphasis on retention for these teachers comes as more and more research points to these years as crucial for early literacy.

5. New grants available for emergency infrastructure needs

Districts in need of emergency infrastructure support — in cases that threaten the health and safety of students — can now apply for grants from the $25 million set aside in the consolidation incentive payments line.

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