BUILDING TOWARD EQUITY - PRIORITIZING FAIRNESS & OPPORTUNITY IN MICHIGAN’S EDUCATION BUDGET - BRIEF ON THE FISCAL YEAR 2021 EXECUTIVE SCHOOL AID BUDGET RECOMMENDATION

Oct 15, 2026

Uploaded by Jacob

Building Toward Equity examines Michigan’s Fiscal Year 2021 Executive School Aid Budget recommendation and evaluates it against fairness and opportunity goals. It highlights persistent achievement gaps, inadequate and inequitable K-12 funding, and underperformance in poverty districts. The brief explains funding changes such as increases to the foundation allowance and weighted formulas, emphasizing support for low-income students, students with disabilities, English learners, and at-risk groups to reduce opportunity gaps over time.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages4

Reading Time10 min

AccessFree to download

Overview

Equity concerns in Michigan’s K-12 funding

Executive Budget Recommendation: key priorities

Fair school funding

Equity benchmarks and performance gaps

Foundation allowance changes

Weighted funding for student needs

At-Risk Funding

Students with Disabilities

Funding for English learners

BUILDING TOWARD EQUITY: PRIORITIZING FAIRNESS & OPPORTUNITY IN MICHIGAN’S EDUCATION BUDGET BRIEF ON THE FISCAL YEAR 2021 EXECUTIVE SCHOOL AID BUDGET RECOMMENDATION By Lauren Hubbard According to one estimate, the lifetime earnings of Michigan’s current K-12 students could increase by $27 billion if their educational achievement matched the national average. i On the 2019 national assessment, Michigan ranked among the bottom half of states in key grades and subject areas. And the state has low rates of improvement as well; for example, Michigan has not made meaningful improvement in fourth-grade reading for all students on the National Assessment for Educational Progress (NAEP) since 2003. Moreover, on both the national and state assessments, wide performance gaps are seen between students of color and their White peers, as well as between students from lowincome families and their higher income peers. As highlighted in The Education Trust-Midwest’s recent report, Michigan’s School Funding: Crisis and Opportunity, Michigan’s current K-12 school funding system is neither adequate nor equitable–and is falling short for our state’s most vulnerable students. While increasing school funding alone will not fix Michigan’s educational crisis, it is important for long-term student success – research shows that increases in spending have led to improved educational attainment, higher wages and reduced poverty in adulthood, particularly for students from lowincome backgrounds.ii In the Fiscal Year 2021 Executive Budget Recommendation, Governor Whitmer outlines additional investments to support Michigan schools and particularly Michigan students with additional needs, including students from low-income families, English learners and students with disabilities. This document is intended to highlight key pieces of Governor Whitmer’s education budget recommendation and how these priorities can advance equity and excellence in Michigan schools. FAIR SCHOOL FUNDING The Education Trust’s recent report found that Michigan is among the bottom fives states for funding equity, spending 5 percent less in its highest poverty districts than its lowest poverty districts. iii Additionally, the Education Law Center gave Michigan a ‘D’ for how well the state targets funding to high-poverty districts, relative to their low-poverty counterparts.iv Governor Whitmer’s executive budget recommendation moves the state’s funding system in the right direction by providing a general increase in funding to all districts as well as targeting resources for districts and students with the greatest need. Below we outline how Governor Whitmer’s recommendation measures up to the key equity principles that should be embedded into every state’s funding system as outlined in The Education TrustMidwest’s recent report. Governor Whitmer’s budget increases the foundation allowance – or the per-pupil base funding – for every district in the state, with a greater increase for districts currently at the minimum foundation allowance. Depending on the district’s current funding level, their perpupil foundation allowance would increase by $150-$225 . Districts currently at the minimum foundation allowance would receive $8,336 and districts at the maximum would receive $8,679 . The total increased investment in the foundation allowance at the state-level would be $290 million. This budget proposal moves Michigan closer to the important goal of having one common foundation allowance by reducing the per-pupil funding gap between school districts at the minimum and maximum by $75. The Education Trust-Midwest (ETM) and national research recommend schools and districts should also receive funding in addition to the foundation allowance in order to appropriately serve the additional needs of all students, recognizing that some students need greater support to reach their full potential. Governor Whitmer’s budget proposes a weighted funding formula based on student ne

FAQs

What problem does the brief identify in Michigan’s K-12 funding system?

It describes Michigan’s system as neither adequate nor equitable, falling short for the state’s most vulnerable students and contributing to persistent achievement and opportunity gaps.

How does the Governor’s proposal change the foundation allowance?

It increases the foundation allowance for every district, with larger increases for districts currently at the minimum, narrowing the per-pupil gap between districts.

What additional funding categories does the brief emphasize besides the foundation allowance?

It highlights weighted funding approaches for student need, including At-Risk Funding, funding for students with disabilities, and funding for English learners to better cover the support costs different students require.

Oct 15, 2026

Uploaded by Jacob