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State Funding Update: Michigan's K-12 Education

We’re sharing the latest updates to the School Aid Budget and supplemental funding for Michigan K-12 education. 

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A teacher and students wearing masks and studying plants

We’re sharing the latest updates to the School Aid Budget and supplemental funding for Michigan K-12 education. 

Last week, Governor Gretchen Whitmer signed House Bill 4421 to help support schools across the state. The bill appropriates $4.4 billion in federal COVID relief funding to help students, teachers and schools recover from the pandemic.

According to the state press release, the bill distributes over $4 billion in one-time funds from the federal Elementary and Secondary School Emergency Relief (ESSER). A total of $841 million comes from ESSER II funding from December 2020, while $3.3 billion comes from ESSER III funding from President Joe Biden's American Rescue Plan.  

Much of the ESSER fundings will be distributed to districts based on their need, more money will go to students who have the highest need. 

According to the press release, the funding will support the needs that were a result of the pandemic, including reopening schools safely and ensuring schools remain safe, improve the effectiveness of teachers by reducing classroom sizes, help districts hire qualified teachers, as well as addressing students' social, emotional, mental health and academic needs. 

“Our actions today prove that Republicans and Democrats in Lansing can work together to enact budgets that are laser-focused on helping Michigan take full advantage of the unprecedented opportunity we have right now to make transformative investments in our schools that will have positive impacts for generations,” Whitmer said in the press release. 

Recently, the state Legislature approved the 2021-22 School Aid Budget and set aside the last of the federal COVID money in the current fiscal year by adopting House Bill 4411.

Several changes to funding were made under the bill including:

•    All Michigan K-12 school districts would get $8,700 per pupil and districts will experience per-pupil allowance increases from between $171 and $589.

•    $168.5 million increase going toward early education spending (per-child full-day funding was also increased to $8,700), a total of $155 million was devoted to individual reading scholarships and $240 million assigned to school psychologists, nurses, social workers and counselors. 

•    School districts that operate a balanced and year-round calendar can receive $8,961 and they will be eligible for $75 million in grants for capital improvements.

The bill also focuses on reading proficiency through a $155 million reading scholarship program for students in kindergarten through fifth grade. Up to $1,000 will be provided through the program for reading materials, literacy programs and tutoring services.

“The passage of House Bill 4411 - to finally realize the ‘promise’ of Proposal A and equalize per student funding in each district - is truly monumental. Not only does this increase per student funding to record levels, but it also now really opens the door for the state to make per student funding truly equitable by differentiating future funding based on student need” Adam Zemke, president of Launch Michigan said.

Budgets for universities and community colleges were not included in this bill and are still pending. 

The bill is set to go to Governor Whitmer for approval. 

Want more?

Read the full press release. 

Read House Bill 4411. 

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