Michigan school leaders raise alarm over possible state budget cuts

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Michigan school leaders and stakeholders – especially those in high-poverty and shrinking districts – are bracing for possible sweeping cuts as lawmakers work toward an agreement on the state education budget on Wednesday.

A preliminary budget plan would mean there would be no increase in the base per pupil allowance for the 2024-25 school year. It would also cut state grants for school safety and mental health, likely leading to layoffs of staff such as counselors in districts across the state. One-time state funding for raises and salaries would also reportedly be cut.

“There is a lot of concern about what this budget would mean,” said Bob McCann, executive director of the K-12 Alliance of Michigan, an advocacy group that focuses on public school funding priorities. “It could mean layoffs across the state. It would be devastating in many ways.”

A conference committee of lawmakers worked toward an agreement on the education budget on Wednesday. Lawmakers are racing to meet a July 1 deadline to pass the budget.

A tighter state budget combined with the expiration of federal aid for Covid-19 this year will likely mean layoffs and cuts nationwide, says Michael Addonizio, professor of educational leadership and policy at Wayne State University.

Districts with declining enrollment and a higher proportion of students from families living in poverty would have the biggest losses, Addonizio said.

“Whatever final agreement they reach will likely be a clear step backwards from the last two years,” he said.

This year’s budget could represent a stark contrast to the past two years, when lawmakers approved historic spending increases for schools, raising the amount per student to $9,608. Last year, the state introduced an Opportunity Index for the first time, providing additional funding to districts with high poverty rates.

This year’s tentative plan puts on hold earlier proposals from the governor, House and Senate that would have reduced state payments to Michigan’s public school employee retirement system. Those proposals would have freed up money for programs such as funding for at-risk children, supporting English learners and universal pre-K, and providing mental health staff to schools.

The idea of ​​cutting pension payments has been controversial since the governor first proposed it, with some Republican lawmakers calling it a “raid” on the system’s coffers and a sticking point in budget negotiations.

The potential agreement reached by the mediation committee would also reduce school districts’ payments to the pension fund by 5.8% next fiscal year. But school leaders say there is no guarantee that the reduction will last and are calling for the payments to be made permanent in law.

McCann said the savings for the districts could not offset other cuts.

“Whatever the amount is for the districts, it is a one-time payment,” he said. “So it cannot be used for personnel issues.”

Many counties have already passed their own budgets based on the governor’s proposal. Now those counties will likely have to rethink everything and make difficult decisions about where to make cuts, McCann said.

Andrea Oquist, superintendent of Livonia Public Schools, said her district was “stunned” by the news of what was included in the tentative agreement.

The potential massive cuts to school safety and mental health funding would be a major blow to the district.

“This year we got $3 million to fund additional psychologists, social workers, security guards and surveillance cameras,” she said. “That will be cut completely for LPS next year, to $225,000.”

Alena Zachery-Ross, superintendent of Ypsilanti Public Schools, said the district had hoped for an increase in per capita funding but did not budget for an increase out of caution.

However, she said that without an increase in per-pupil funding, funding the district’s needs would become difficult due to rising operating costs – namely energy bills, transportation, food costs and employee benefits.

“This will require us to tighten our belts significantly, and we will really approach next year differently,” Zachery-Ross said.

School groups are actively lobbying lawmakers to reconsider their tentative agreement, including the Michigan Association of Superintendents and Administrators, which has called on the public to take action.

Once the committee votes on the agreement, it will go to the House of Representatives for a roll call vote before being sent to the Senate.

The final budget draft then goes to Governor Gretchen Whitmer for signature. She can reject the bill in whole or in part.

The budget comes into force on October 1.

Hannah Dellinger covers K-12 education and public education policy for Chalkbeat Detroit. You can reach her at [email protected].

Alex Klaus is a summer intern at Chalkbeat Detroit. You can reach her at [email protected].