Free community college and preschool included in Michigan’s $23.4 billion education budget

LANSING, MI – Many Michigan families would receive free preschool and all high school graduates would receive a free community college education under the fiscal year 2025 budget passed by lawmakers Thursday.

The $23.4 billion education budget also includes maintaining free breakfasts and lunches for all students, at a cost of $200 million. Free meals for students were already included in the current budget, and Governor Gretchen Whitmer wanted to make it permanent.

The state budget for 2025 totaling $82.5 billion was approved by lawmakers during an overnight session early Thursday, June 27. It now goes to Whitmer’s desk for signature.

Related: Michigan lawmakers pass $82.5 billion budget largely along party lines

Under the plan, free preschool for four-year-olds will be available to families earning 400 percent or less of the federal poverty level. This collective income limit is $81,760 for a family of two, $103,280 for a family of three, and $124,800 for a family of four, according to the 2024 federal poverty guidelines.

According to state officials, the $54 million investment will provide free preschool education to about 5,300 additional children in the state. Whitmer had called for free preschool education for all in her budget proposal earlier this year.

The budget also includes a $30 million investment to expand the Michigan Achievement Scholarship, for which state officials say most students qualify.

Democratic lawmakers say the investment would allow any Michigan high school graduate to earn an associate degree or professional certificate at a community college tuition-free.

By expanding scholarships, students at private and public universities would also receive more money.

“As a parent, I know our children are our top priority. That’s why this budget puts students first by making historic investments to improve learning outcomes from preschool through college so every child can receive a world-class education,” Whitmer said. “Together, we are accomplishing things that will make a real difference in people’s lives and ensure that everyone in Michigan can succeed. We will continue to improve learning outcomes so every student can succeed.”

What the budget does not include, for the first time in a decade, is a direct increase in per-pupil funding, which would remain at $9,608 per student under the proposed budget.

However, Democratic lawmakers say diverting about $589 million to cover pension costs would save school districts about $400 per student, effectively representing a 4.2 percent increase per student.

The budget will also abolish the requirement for next year that three percent of teachers’ salaries must go towards pensioners’ health insurance.

“For years, hard-working teachers have sacrificed three percent of their salaries to help fully fund school retiree health insurance. Now that funding is complete, the 2024-25 budget will eliminate this tax on school employees,” said Chandra Madafferi, president and CEO of the Michigan Education Association.

The education budget vote was split along party lines, with Republicans accusing Democrats of “looting” the teachers’ pension fund by diverting $670 million that should have been used to cover liabilities in the teachers’ pension system.

“Instead of supporting our teachers and generously funding their hard-earned retirement accounts, Democrats voted to eliminate these benefits,” said Donni Steele, R-Orion Township. “Many of these teachers have taught thousands of children over the course of decades and deserve to be rewarded. Instead, these hard-working teachers are now left to wonder if they will still receive their benefits when they need them.”

Democratic Party leaders said the budget would pay off certain liabilities in the teachers’ pension system and secure teachers’ pensions and retirement benefits, while releasing $670 million for investments in classrooms.

“We passed a school aid budget that invests in our children by releasing an additional $400 on average for each public school student and continuing to make historic investments in funding programs for at-risk and special education students,” said Democratic House Speaker Joe Tate of Detroit.

Whitmer had already touted this move in her budget proposal earlier this year, comparing it to paying off a mortgage early, which would free up funds.

Related: Free preschool and community college are at the top of Governor Whitmer’s budget recommendations

Republicans and K-12 education advocates also criticized significant cuts to school safety and mental health grants, which were cut from $328 million to $26.5 million in the current budget.

“There have been drastic cuts in funding for school safety and student mental health – cuts that must be addressed at the local level to ensure our schools are safe learning spaces for all students and staff,” Madafferi said.

“We hope that state lawmakers will return after the summer recess and pass a supplemental budget that funds these important student mental health and safety priorities.”