Michigan turns to weighted school funding as student needs rise and enrollment falls |
Michigan’s efforts to improve student outcomes, teacher recruitment, literacy, and student support will depend heavily on how the state funds public education, which accounted for more than $21 billion, or over 25% of state spending, in fiscal 2025. While the foundation allowance will reach $10,300 per student in 2026-27, Michigan’s K-12 enrollment has fallen by 360,000 students over 25 years, while the number of districts has increased from 524 to 822, leaving schools with higher fixed costs spread across fewer students. At the same time, more than 50% of students are now economically disadvantaged, the proportion with disabilities has increased by more than 25% since 1995, and the share of English learners has nearly doubled since 2007, increasing the resources required to achieve comparable outcomes. Michigan is responding with a new weighted funding model that provides additional funding for economically disadvantaged students and English learners, with plans to extend the approach to students with disabilities in fiscal 2028. Researchers argue that more stable, needs-based funding, particularly when directed toward classrooms and teacher compensation, will be critical as pandemic-era federal support expires and districts face renewed financial pressure.