What Will It Take to Achieve Funding Adequacy for All Michigan Students? - $4.5 Billion Needed to Close Funding Gaps

Oct 15, 2026

Uploaded by Connor

Michigan school funding is described as inadequate and inequitable, with the state failing to provide a sufficient per-pupil base and to appropriately address extra education costs for students with additional needs. Updated estimates from the 2018 Michigan School Finance Research Collaborative adequacy study project $4.5 billion is needed to bring districts to funding adequacy, including about $1.6 billion for universal no-cost preschool. The report details who is most under-resourced and quantifies adequacy gaps across student-need and district contexts.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages15

Reading Time38 min

AccessFree to download

Summary

Adequacy findings and projected costs

Funding gaps by district and student needs

Introduction

Michigan studies and adequacy question

SFRC adequacy approach and resource categories

Weighted funding system recommendation

What Will It Take to Achieve Funding Adequacy for All Michigan Students? $4.5 BILLION NEEDED TO CLOSE FUNDING GAPS TANNER DELPIER & MARY MCKILLIP APRIL 2023 EDUCATION LAW CENTER Founded in 1973, Education Law Center (ELC) is the nation’s legal defense fund for public education rights. ELC is widely recognized for successfully advancing equal educational opportunity and justice in New Jersey and states across the country. ELC pursues advocacy work through litigation, public engagement, policy development, research, and communications. ELC’s legal and policy advocacy, which includes the landmark court rulings in the Abbott v. Burke litigation, has significantly advanced the provision offair school funding, high quality preschool and school facilities improvements, especially for students from low-income families and students of color. ELC’s mission is to ensure all students receive a high-quality public education effectively preparing them to participate as citizens in a democratic society and as valued contributors to a robust economy. ABOUT THE AUTHORS Tanner Delpier, PhD, is the Labor Economist for the Michigan Education Association. There, he conducts research on Michigan education finance as well as providing policy analysis and support for association bargaining units. He received a PhD in Education Policy from Michigan State University. Mary McKillip, PhD, is a Senior Researcher at Education Law Center. She leads ELC’s research examining the fairness of state funding systems through analyses of resource equity within states. Prior to joining ELC in 2018, Dr. McKillip managed school discipline and health survey data collection and analyses at the New Jersey Department of Education and conducted research on the high school to college transition at the College Board. She has a PhD in Sociology from the University of Illinois and a MEd from Harvard University. ACKNOWLEDGMENTS Dr. Danielle Farrie contributed to the direction and development of the work. Dr. David Arsen reviewed and provided substantial feedback. Members of the School Finance Research Collaborative, Michigan Economic Justice Coalition, and 482 Forward also provided helpful insight to the framing of the report. The Hatcher Group designed the report. We extend appreciation to the many funders and allies who support ELC’s mission and work. This report is based on research funded by the W.K. Kellogg Foundation. © April 2023 Education Law Center, Inc., Newark, NJ. All rights reserved. Summary School funding in Michigan is inadequate and inequitable. Michigan does not provide a sufficient base per-pupil amount, nor does the state properly address the cost of educating students with additional needs, especially students with disabilities, English learners, and low-income students. It would cost $4.5 billion to bring districts to funding adequacy based on estimates updated from the 2018 Michigan School Finance Research Collaborative (SFRC) adequacy study. This cost includes an estimated $1.6 billion to introduce universal, no-cost preschool. This report emphasizes the importance of the SFRC’s adequacy recommendations by highlighting current needs and potential benefits: • Most Michigan districts need substantial increases in revenue to reach adequate funding. Ì 77% of all Michigan public school students attend schools in districts that are more than $2,000 per pupil below adequacy. Ì 30% attend schools in districts that are more than $4,000 per pupil below adequacy. • Certain districts, especially those serving significant numbers of low-income students, are more severely under-resourced. Ì Districts with less than 25% low-income students have an adequacy gap of $1,570 per pupil on average; those with 25% or more low-income students need over $3,000 more per pupil to be considered adequately funded. Ì Districts in rural areas are on average $857 per pupil further from adequate funding than nonrural districts. 01 | WHAT WILL IT

FAQs

What problem does the report identify in Michigan’s school funding?

The report states Michigan’s school funding is inadequate and inequitable, with an insufficient base per-pupil amount and insufficient attention to additional education costs for students with disabilities, English learners, and low-income students.

How much funding does the report estimate is needed to reach adequacy?

It estimates it would cost $4.5 billion to bring districts to funding adequacy, based on estimates updated from the 2018 adequacy study.

What does the report say about distributing funding and addressing student additional needs?

The report emphasizes adopting the SFRC’s recommended weighted funding system, providing base funding plus additional amounts calculated as a percentage of base cost for specified student populations.

Oct 15, 2026

Uploaded by Connor