Some Michigan school leaders concerned about education budget

MID-MICHIGAN, Mich. (WNEM) – Some Michigan school leaders are concerned about education funding in the newly approved state budget, which includes more than $23 billion for schools.

Gov. Gretchen Whitmer said schools are getting an additional $400 a year in per-pupil funding, but that number isn’t as cut-and-dried as it seems.

“We’re gonna be trying to run a 2024-2025 school district on a 2023-2024 allocation. And it’s gonna be difficult,” said Michael Kelly, the school board treasurer for Bay City Public Schools.

Mid-Michigan school districts are surprised the state budget, which lawmakers passed last Thursday, did not include an increase in per-pupil funding.

“It’s been about a decade—aside from what happened during the pandemic—since we have seen the state issue of budget that didn’t have a foundation allowance,” said David Smith, executive director of finance for Saginaw Intermediate School District.

Per-pupil funding is the amount of money state and local funds spend on each student in a school, and school officials said not having that increase in the $23.4 billion school budget will have a significant impact on school districts across the state.

“School districts are expensive things to run, and we’ll have to watch closely as this continues toward the governor’s desk for signature. You know, inflation, we’ve seen it in everything from fast food to gasoline to whatever you want to buy for your house. And that same thing is true with the school,” Kelly said.

“Things will remain the same. You know, the governor will issue a budget that has grants that still go towards meaningful things, you know, social-emotional learning and things like that. And those are all very useful and meaningful, but it doesn’t put funding directly into the classroom for the students and the teacher,” Smith said.

Some school leaders said the lack of an increase along with the decrease in student enrollment is a perfect storm for a lot of school districts and will cause them to get creative with their budgets.

But state Sen. Kristen McDonald Rivet defended the budget, saying it does increase per-pupil funding.

She provided the following statement to TV5:

It’s important to remember how significant last budget’s 5% per pupil increase was and continues to be. We’re maintaining that historic level of funding in the recently approved budget. What this year’s budget also provides is significant relief to school districts through reducing their contribution to unfunded liabilities. By reducing the districts’ contributions to OPEB (Other Postemployment Benefits), which is over 100% funded, we are freeing up substantial resources that can be invested directly into classrooms. That results in an estimated $400 per pupil increase from last year or 4% of foundation allowance. This, combined with other investments in the K-12 budget, results in almost $20 million of additional funding into our Great Lakes Bay Region schools.

The approved budget also increases funding to support students from low-income families, English language learners, mental health, the expansion of free pre-kindergarten, and continues the free breakfast and lunch program for all students.

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