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Budget Moves: What Michigan Schools Are Really Getting

Michigan, USA, Lansing,Wednesday, July 8, 2026

Michigan lawmakers pushed a new state budget to school leaders just after the July 1 deadline, leaving districts scrambling to meet their own June 30 cut‑off. The final plan tops out at $19.8 billion, a drop of about $1.5 billion from last year’s $21.3 billion, yet it still offers a record $10,300 per pupil—a 2.5 % lift over the previous year.

Targeted Funding for English Learners and Low‑Income Students

The new formula favors students who are English learners or from low‑income families, allocating roughly $1.7 billion for these groups under a weighted system that could later cover special‑education needs too. That extra money is not unconditional; districts must meet strict screening, assessment and audit rules set by Senate Bill 903.

Mental‑Health & Safety Boosts

Mental‑health and safety funding rises over $300 million, but districts that take the safety grant must waive attorney‑client privilege in investigations tied to school shootings. Some schools objected, citing the 2021 Oxford High incident that exposed information‑sharing gaps.

Public Money for Private Schools

Private schools can now tap public money for breakfast programs, safety grants and teacher‑training subsidies—an arrangement critics say violates Michigan’s constitution. The GOP‑led House overrode Democratic proposals that these funds stay public‑school only, and even let private preschools count toward teacher‑certification work requirements. Private schools may also vie for $5.6 million in robotics grants and share in a $50 million stipend pool for student teachers.

Cyber Schools Stay on Track

Cyber schools won a political battle too: while the governor and Senate wanted to cut their per‑pupil grant by 20 %, the final budget keeps them at $10,300 like other schools.

Unclear Savings and Higher‑Education Funding

Despite the lower total, the budget doesn’t spell out where savings came from. A nearly $2 billion drop in federal aid is noted, but officials deny any impending cuts and promise to use all available federal funds. The biggest concern remains the $1.7 billion taken from the School Aid Fund to support higher education—about $400 million more than last year, a record figure.

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