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Education Groups Urge Finalization of Responsible School Aid Budget

Jul 2, 2025, 08:45 AM by Jennifer Smith

LANSING, Mich. – The following statement was released today by the Michigan Alliance for Student Opportunity, Michigan Association of School Boards, Michigan Association of Superintendents & Administrators, Michigan Association of Intermediate School Administrators, Michigan Association of Secondary School Principals, Michigan Elementary & Middle School Principals Association, Michigan Association of Administrators of Special Education, Michigan Association of Pupil Transportation, K-12 Alliance of Michigan, School Equity, and the Education Advocates of West Michigan regarding the end of the school fiscal year and lack of state budget:

 “Today marks the statutory deadline for presenting a budget to the Governor, and the state has failed to meet its legal obligation. Once again, Michigan’s schools are left to face the consequences rather than the Legislature and Governor being held accountable.

Public school districts across the state were required by state law to adopt their local budgets yesterday. This year, however, they had to do so in a climate of deep uncertainty, forced to make critical decisions based on guesswork about state funding. This is unacceptable.

Despite differing political priorities, the House and Senate agree on nearly 89% of School Aid Fund spending—representing more than $19 billion in consensus. Yet progress toward putting a negotiated budget on the Governor’s desk has stalled. Lawmakers seem caught in a false choice between finishing a budget in a timely manner and crafting a responsible one. The truth is, they can—and must—do both.

With nearly $23 billion in School Aid Fund revenue available, there is no fiscal reason why a responsible K-12 budget cannot be completed now. But doing so requires adherence to a few basic principles: 

  • Spend School Aid Fund dollars only on K-12 education. Diverting these funds to higher education or general fund programs undermines the very purpose of the School Aid Fund and shifts the burden of the state budget onto the backs of students.

  • Protect the integrity of the public school retirement system. MPSERS is stable and on track to eliminate its remaining debt. Changes to this system for short-term savings risks destabilizing retirement security for hundreds of thousands of school employees and could reverse hard-earned progress.

  • Prioritize both per pupil increases and weighted funding for high-need students. With resources available and costs rising, schools and students should expect a meaningful increase in the foundation allowance. At the same time, Michigan’s at-risk youth, English language learners, students in special education, rural communities, and CTE programs depend on targeted support. Meeting the moment requires both across-the-board increases and a funding model that accounts for the varying needs of students.

  • Avoid structural deficits by funding ongoing programs with ongoing revenue. Using one-time funds for per pupil spending or draining the rainy day fund for recurring expenses creates long-term instability and threatens the future of Michigan schools.

Each of the competing budget proposals contains components of a strong plan. They all envision meaningful increases to the foundation allowance and make commitments to support students with the greatest needs. But it’s time to stop treating the School Aid budget as a bargaining chip in larger negotiations.

Lawmakers have the tools, the resources, and the framework to finish this job. Michigan’s students cannot—and should not—wait any longer.