Opinion | Michigan’s school funding system is overdue for a smart update

Michigan has made meaningful investments in education in recent years. Lawmakers from both parties have prioritized school funding, and educators across the state are working tirelessly to meet the needs of their students.

Importantly, leaders in both chambers have begun advancing thoughtful, student-centered approaches to school funding, putting Michigan on the cusp of a meaningful step forward. That would change how Michigan distributes education funding from a system designed more than 30 years ago.

three person collage of headshots. men on the right and left and a women in the middle. — Dan Behm is executive director of Education Advocates of West Michigan. Megan DeKraker is chief of external relations for National Heritage Academies. Kevin Polston is superintendent of Kentwood Public Schools. (Courtesy photos)

Since Proposal A passed in 1994, classrooms — and the students in them — have changed dramatically. Today, more than half of Michigan students are economically disadvantaged. Schools serve higher percentages of students with disabilities and the number of English learners has more than doubled. At the same time, districts face rising costs and increasing expectations while having fewer tools to plan long term.

Yet the system directing billions of taxpayer dollars each year has not kept pace with those changes.

That disconnect matters. Because the question isn’t just how much we invest in education — it’s whether funding is aligned with the needs of today’s students.

A smarter, common-sense approach

There is a practical solution: modernizing school funding through a weighted student funding formula.

This approach is straightforward:

Every student receives a consistent base level of funding
Students with greater needs receive additional support
Funding follows students — not programs
Local school leaders have flexibility to meet community priorities

It also introduces greater stability by using a multiyear approach to enrollment, helping districts plan responsibly and avoid sudden funding swings.

In short, it is a simpler, more predictable system that reflects how schools actually operate.

Why this matters

For policymakers focused on fiscal responsibility and effective governance, this approach delivers clear benefits.

Local control: Decisions are made closer to students and families, with fewer state-directed restrictions and greater authority for school boards.
Predictability and stability: Districts gain the ability to plan budgets over multiple years, support consistent staffing, and make long-term investments.
Efficiency and accountability: Streamlining separate grant programs makes funding easier to manage and understand. At the same time, funding is more clearly aligned with student needs.
Proven, not experimental: Weighted student funding is already working in states such as Mississippi, Colorado, Massachusetts and Tennessee, delivering more stable funding systems and stronger outcomes.

Michigan’s own research community supports this direction. Studies from the School Finance Research Collaborative, the Education Policy Innovation Collaborative (EPIC) at Michigan State University, and the Citizens Research Council (CRC) of Michigan all point to the importance of aligning funding with student needs.

Research also shows that, even with recent increases, Michigan spends less per student, adjusted for inflation, than a generation ago, while serving students with a broader range of needs.

A responsible path forward

Modernizing Michigan’s school funding system does not require disruption.

A commonsense approach includes:

A multiyear roadmap for implementation
Evidence-based student weights grounded in research
Streamlining existing funding to increase flexibility

This is a fiscally responsible transition focused on making better use of current investments, not replacing them overnight.

The bottom line

Michigan doesn’t need a bigger system. It needs a smarter one. One that invests in students and drives better outcomes.

Modernizing school funding will align resources with student needs, bring stability to school budgets, strengthen local control, and respect taxpayers.

A call to action

There is growing bipartisan recognition that how we fund schools matters just as much as how much we fund them.

With progress already underway, Michigan is now on the precipice of a transformational moment in how we support students and schools.

We urge legislators to build on that momentum by supporting a multiyear transition to weighted student funding as part of the state budget process.

Finishing this work would take an important step toward a more modern, student-centered funding system.

Now is the time to get this across the finish line so Michigan’s funding system reflects today’s students, supports local communities, and delivers better outcomes for the future.