Michigan education report calls for $1.3 billion in new funding for poor districts

Michigan is underfunding its opportunity index by an estimated $1.3 billion, according to a report released Tuesday by the advocacy group EdTrust-Midwest. The group argues that the state must direct more money to school districts with the highest concentrations of students living in poverty to close persistent gaps in student achievement.

The report, titled "Going for Gold: Setting the Standard for Michigan Achievement," was unveiled at an event in Detroit. It highlights specific academic struggles, noting that only 38.9% of third graders are proficient in reading on state tests. Preliminary data also shows that more than a quarter of students are chronically absent. Additionally, only about 55% of high school graduates attend college within six months of finishing high school.

Brian L. Love, the state director of EdTrust-Midwest, told reporters that the state has historically tried to fix education problems one piece at a time. He said the current approach must change. "We can focus on a few things here and a few things there, and actually that’s probably been our state’s history, right? So the way we fix this now and soon is to tackle it all at the same time but we have to do it all together."

The group recommends that the state continue investing in teacher training and literacy curricula. It also urges a stronger emphasis on helping high school students take advanced courses and college classes while still in high school. The report states that building a stronger talent pipeline is essential to Michigan’s economic competitiveness. It argues that making college affordable is not enough if students do not have equitable opportunities to prepare for the transition.

The report calls for greater transparency in how education funds are spent. It states that the state’s next challenge is not just to have an equitable funding formula on paper. The state must fully fund the formula, ensure dollars reach the intended students, and make that investment visible to the public.

State Sen. Darrin Camilleri, the incoming Senate majority leader, attended the Detroit event and received a "Champions of Hope" award from EdTrust-Midwest. Camilleri was a champion of the opportunity index funds when the state began including them in the school budget in 2023. At the event, he acknowledged a "big need" to provide more of these funds.

Camilleri said he expects to find new resources to fully fund the program. "It’s been my north star: is how we can continue to fund this program to the best of our ability," he said. "I think that we will find new resources to do that. Whether that happens in one budget cycle or four, remains to be seen. But I think it’s really important that we do invest more money in the opportunity index and get to as close to fully funded as humanly possible."

He noted that savings from the state retirement system could eventually unlock about $3 billion for schools. However, he said other priorities, such as expanding child care and pre-K, increasing teacher pay, and improving special education, will also require funding. "We have some big challenges and so, there will, I’m sure, need to be a conversation about how we can actually pay for those things," Camilleri said.

Governor-elect Jocelyn Benson has stated she wants to improve public schools. She will work with a Democratic-dominated Michigan House and Senate. Jennifer Mrozowski, a senior director at EdTrust-Midwest, said the group wants to emphasize that public schools are a powerful public good. She noted that leading states have shown positive results when all forces work together.

Some student trends are improving despite the gaps. The state reached a new record with 84% of students graduating within four years. New grants are available to expand access to career and technical education courses. The state will also start reimbursing high-poverty districts to provide dual enrollment courses to students.