Whitmer signs $23.4 billion school budget in Flint despite criticism of funding for students and programs • Michigan Advance

Governor Gretchen Whitmer met with parents, lawmakers, and school and budget officials in Flint on Wednesday and signed the $23.4 billion education budget for fiscal year 2025.

“As you all know, education is the key to growth: economic growth, societal growth, personal growth. A good economy is built on great schools that deliver better outcomes,” Whitmer said.

During her speech at Educare in Flint, Whitmer highlighted a number of programs included in the fiscal year 2025 education budget, which takes effect Oct. 1. They include $181 million for literacy grants and literacy coaches, a continuation of the state’s free breakfast and lunch program for students, and investments beyond K-12 education.

Education budget makes progress on Whitmer’s plans for free preschool and community colleges

“Earlier this year, I proposed what we call the Michigan Guarantee, a plan to give every child access to free public education from preschool through community college, and I’m really proud that we were able to make that happen with this budget,” Whitmer said.

According to a breakdown from Whitmer’s office, the state is investing $130 million to expand free preschool for all four-year-olds in Michigan, with $54 million of that estimated to reach an additional 5,300 children, $31 million to increase full-day provision per child to $10,185 and $25 million to open new classrooms in underserved areas.

The state has also increased funding for the Michigan Achievement Scholarship by $30 million. The scholarship enables Michigan high school graduates to earn an associate degree or professional certificate at a community college tuition-free or receive up to $27,500 toward the cost of a bachelor’s degree.

It also includes $52 million for the Michigan Reconnect Program, which offers Michigan residents ages 25 and older a tuition-free path to a college degree or professional certificate.

The budget also increased funding for the Tuition Incentive Program by $20 million to support lower-income students at Michigan’s community colleges, public universities and private universities. In addition, $14.5 million is allocated for the North American Indian Tuition Waiver to provide eligible Native Americans with tuition-free education at Michigan’s public universities and community colleges.

“In Michigan, we want every single person to be able to find the path that is best for them. Whether you attend a trade school, start a union-sponsored apprenticeship or attend a community college tuition-free, you deserve a fair chance to pursue your dream,” Whitmer said.

While Whitmer touted increased investment in students, the budget did not increase the per-pupil allowance for K-12 schools, leaving the current allotment of $9,608 per student in place.

However, the budget also included a reduction in contributions to the Michigan Public School Employees’ Retirement System (MPSERS). The goal was to divert $670 million from the system into additional school funds. The Whitmer administration said this amount was freed up by the early repayment of certain liabilities.

The settlement provides $598 million in reimbursements to school districts, libraries and municipalities by reimbursing about 5.75% of payroll costs. The budget also eliminates a 3% health insurance contribution that some public school teachers must make when they retire.

According to Statement from Whitmer’s officeThe $598 million in ongoing reimbursements represents a 4% increase in per-pupil funding, an average increase of $400 per pupil over the amount proposed in the fiscal year 2024 budget.

Some Lawmakers and education advocacy groups have raised the alarm on the one-off nature of the diverted funds, since measures that would have permanently abolished the 3% contribution requirement and reduced the MPSERS contribution rate required of public schools remained on the table during the parliamentarians’ summer recess.

“The additional dollars they invest are one-time expenses, making it difficult or even impossible for districts to spend them,” Robert McCann, executive director of the K-12 Alliance of Michigan, told the Advance payment in an earlier interview.

Without a guarantee that these funds will be available in future years, schools would not be able to use the funds responsibly for things like staff or ongoing programs for students, McCann said.

Educators also called on lawmakers to allocate additional funding for school safety and mental healthwith the FY 2025 budget allocating $26.5 million in per-student grants for mental health and school safety, compared to $328 million included in the current FY 2024 budget.

In the final draft budgetLawmakers said they intend to use the $598 million in MPSERS reimbursements “to support student mental health, school safety, teaching staff and academic interventions.”

Several Republican lawmakers released statements Tuesday criticizing the cuts to school safety funding, among other concerns.

“These cuts are a devastating blow to schools in Genesee County and across Michigan,” said Republican Rep. David Martin (Davison). “Schools cannot function properly without adequate funding for safety and mental health. These budget cuts recklessly and needlessly put our children at risk.”

Republicans have also repeatedly criticized the plan to divert funds, calling it a “raid,” although Coalition of 13 groups Representatives of educators, administrators, principals, school boards, school administrations, and several school districts argued that the $670 million diverted from the MPSERS fund belonged to the schools and advocated for a reduction in the contribution rate.

The education budget was passed by both chambers along party lines; Republicans voted against the bill.

“The Democrats’ priorities are wrong, and it is our children who are paying the price,” Martin said. “We must demand better services for our schools, our teachers and, most importantly, our children.”

When asked about the cuts to school safety funding, Whitmer told reporters that lawmakers wanted to give school districts more flexibility in determining the right level of spending and how the funds should be used.

“That doesn’t mean it doesn’t exist anymore. It just means it’s not mandated by the state and that it will ultimately be a local decision,” she said.

Whitmer also said talks with the House about a permanent cut to MPSERS contributions will likely continue when the House returns from recess. However, she did not comment on whether she would sign a bill authorizing the change, saying it was premature given the ongoing talks.