Plans to improve Michigan’s K-12 schools depend on how the state funds public education

Researchers at Michigan State University's Education Policy Innovation Collaborative examine how Michigan's 1994 school-funding overhaul, Proposal A, shifted control of day-to-day education spending to the state via a per-student foundation allowance, set at $10,300 for 2026-27.

Michigan's K-12 enrollment has dropped by 360,000 students over 25 years, the largest decline of any state, while the number of districts has grown from 524 to 822, meaning fixed costs like buildings and bus routes don't shrink with enrollment.

Meanwhile the share of economically disadvantaged students has passed 50%, disability rates are up more than 25%, and English learners have nearly doubled since 2007 — all groups requiring more resources. Despite reports of 'record funding,' inflation-adjusted per-pupil revenue peaked in 2002 at $16,557, fell 23% by 2014, and only recently climbed back near that old high thanks largely to temporary federal COVID aid.

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