The School Finance Research Collaborative, has released a new report which provides comprehensive analysis of school funding in Michigan and recommendations for the future.

This report, which has been in the works since early 2017, builds on the findings of the state-funded Michigan Education Finance Study that was shared in 2016.

As CMF reported in 2016, the Michigan School Finance Study found that “overall, Michigan’s school finance system is moderately inequitable." The research pointed out districts with higher need tend to have fewer resources available to serve students. The department of education and the governor's office agreed more equitable investments should be made in our education system.

The School Finance Collaborative launched in January 2017, comprised of current and former educators, lawmakers, school board members, business and community leaders, and funded by the W.K. Kellogg Foundation, was tasked with creating an equitable roadmap for school funding. The Charles Stewart Mott Foundation and The Skillman Foundation have also awarded grants to support the Collaborative’s efforts.

Highlights of the recommendations from the School Finance Collaborative’s study include:

• Create an adequacy-based funding system using appropriate base cost, weights, and adjustments for district characteristics:

  • The study recommends a base cost of educating a student at $9,590, not including transportation, food or capital costs.

  • The study recommends the base cost of $9,590 should also be higher for smaller districts and additional funding would be needed for students who live in poverty, receive special education and those who are English language learners to provide more equitable opportunities.

Currently: Michigan’s per-pupil funding ranges anywhere from slightly more than $7,500 to more than $8,200. In the governor’s 2017-2018 fiscal budget he did include increases for per-pupil funding ranging from $60 to $120, with the biggest increases going to the lowest-funded districts. We anticipate learning more about the governor’s proposed 2018-2019 budget in his State of the State address this week.

• Provide the same funding for districts and charter schools: The study notes, while there are differences in the costs that the two business models face, such as differences in retirement costs and facilities costs, the study team feels that applying the $9,590 base cost figure is the correct approach.

• The state should launch a full capital study that examines the costs faced by districts and charter schools.

  • Districts face variation in the availability of funding for capital projects. This impacts both the ability to build new buildings and districts’ ability to maintain current buildings.

• The study team recommends the evidence-based figure of $14,155 for the cost of preschool in Michigan. Research shows the benefits that universal preschool would have for early childhood education and kindergarten readiness. The study says additional research needs to be undertaken on how best to fully implement preschool in the state.

• Transportation funding should be provided outside of the base per student amount and funding should be tied to actual transportation costs.

  • Fund a transportation study to design a specific transportation-cost formula

  • A specific focus should include the needs of isolated districts and whether a separate funding source is needed for these districts

• Align funding for Career and Technical Education (CTE) with program needs

  • Examining the resources needed to implement CTE classes in high schools, the evidence-based approach recommends $10,000 for every CTE teacher to cover the costs of materials and equipment.

  • The study panelists identified a cost of $752 per CTE student for additional resources.

The report focuses on an individualized approach in per-student funding in schools across Michigan, whether urban, suburban or rural.

The hope is this nearly 300-page report provides a roadmap for Michigan’s school financing model long-term.

"We know that it's a little late in the game to change what the governor is going to recommend (upcoming budget proposal) in a couple weeks," Ron Koehler, assistant superintendent at Kent Intermediate School District, who serves on the steering & technical committee for the Collaborative, told MLive. "But we can influence the discussion and we hope that we have some serious dialogue about what it really takes."

Want more?

Check out the report.

Learn more about the Collaborative.

Join the P-20 Education Affinity Group at their upcoming convening on February 6 in Lansing.