DEEP DIVE: THE GOVERNOR’S 2026 STATE BUDGET PROPOSAL
Providing a quality education to all students gives our children the best chance for success in life beyond school. However, decades of disinvestment has resulted in Michigan falling from a top-ranked state for educational outcomes to one of the lowest in the nation. The most recent national KIDS COUNT Data Book ranked Michigan 41st in education, once again the state’s lowest indicator ranking. The Nation’s Report Card, which uses the National Assessment for Educational Progress, ranks Michigan in the bottom five states in fourth-grade reading, with a 25% proficiency rate. The governor’s budget continues to work towards adequate funding for our schools while focusing funding to schools and students who need it the most.
The governor’s proposed K-12 budget totals $21.2 billion, a 2.0% increase from the current year budget.
WEIGHTED SCHOOL FUNDING FORMULA_____________________________
The majority of funding for school districts comes from the foundation allowance, which provides a per-pupil payment to all districts. However, we know that equal funding for all districts leads to inequities. Therefore, the state has been moving towards a weighted funding system that provides an additional percentage of the per-pupil dollar amount for students who require more services to adequately educate.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR WEIGHTED SCHOOL FUNDING:
✓ Increase in the foundation allowance. A 4.1% foundation allowance increase of $392 per pupil. This sets the foundation at $10,000 per pupil. The foundation allowance for cyber schools is set at 80% of this amount, $8,000.
✓ Largely maintained weighted funding formula. A 4.1% increase for weighted funding categories including: at-risk students ($42.3 million), English-language learners ($2.1 million), career and technical education students ($2.4 million) and students enrolled in rural and isolated districts ($510,000). Despite the increase in funding, because the totals are increased the same percentage as the foundation allowance increase, the budget recommendation maintains the current-year weights for many of these categories.
✓ Increased support for special education students. As it did last year, the governor’s budget recommends a new formula to fix the inequities in special education funding between intermediate school districts (ISDs). Currently, ISDs are able to generate additional revenue through special education millages. Because of large differences in millage rates and tax bases, this additional revenue for special education services can vary greatly from one ISD to the next. This was included in the fiscal year 2024-2025 budget recommendations of the governor, House, and Senate, but was ultimately left out of the final budget.
READING AT GRADE LEVEL_____________________________
Reading at grade level by the time students exit third grade is a key indicator for future success both during and after K-12 schooling. The governor’s budget does include academic interventions and support to ensure students are reading at grade level.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR EARLY LITERACY INTERVENTIONS:
✓ Doubling early literacy grant funding to $39.8 million to support the governor’s new Students, Metrics and Results with Transparency (SMART) plan.
✓ New funding of $232 million for best practices funding to be distributed using the new formula outlined in the SMART plan.
✓ $45.3 million for literacy coaches, including $3.2 million for ISDs that did not receive an increase in last year’s budget.
✓ $10 million for professional training associated with the science of reading.
STUDENT HEALTH AND SCHOOL SAFETY_______________________
Schools are not only tasked with educating our children, but they also must ensure that students are healthy and safe while attending class. Schools often provide important physical and mental health support and services to their students. The governor’s budget recognizes that kids cannot learn if they are sick, hungry, or feel anxious or unsafe.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR STUDENT HEALTH:
✓ Maintaining $200 million in state School Aid Funds, in addition to federal funds, to provide free school breakfast and lunch to all students.
✓ Maintaining $150 million in per-pupil funding for mental health and school safety. The governor also recommends that this funding be considered ongoing.
✓ Maintaining $108 million to ISDs to hire mental health professionals and provide school-based services.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR STUDENT SAFETY:
✓ Maintaining the $125 million one-time investment to support transportation costs. The funds are distributed to districts and ISDs based on the number of riders per square mile and the cost per rider. This helps defray the cost of providing school transportation services for underfunded communities, either where students have a long bus ride to get to school or where buses are already overcrowded due to a high number of students.
✓ Provides $50 million ongoing (a total reduction of $25 million of one-time funds, including $18 million in allocations for specific programs, from the $75 million allocated in the current budget year) School Aid Fund for Clinton County Regional Education Service Agency to collaborate with the state (Michigan Department of Lifelong Education, Advancement and Potential) to provide grants to organizations for before- and after-school programs and summer school programs.
TEACHER RECRUITMENT AND RETENTION______________________
Many schools continue to deal with crisis-level teacher shortages, and some schools have had to fill open positions with long-term substitutes or increase class sizes simply to ensure all kids have access to an education. Efforts to recruit, support and retain teachers are critical.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR TEACHER RECRUITMENT AND RETENTION:
✓ Maintaining funding for MI Future Educator Fellowship ($25 million) and MI Future Educator Student Teacher Stipends ($50 million).
✓ New funding of $50 million for Grow Your Own educator supports.
SUPPORTING STUDENTS BEYOND K-12______________________
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING TO SUPPORT STUDENTS:
✓ Maintaining $40.5 million in funds to support adult education programs.
✓ $10 million for the FAFSA Completion Challenge grants to support districts’ efforts and encouragement to increase FAFSA completion. The FAFSA is the form that graduating high school students must fill out to be eligible for needs-based financial aid, including federal grants and loans.
✓ $2.2 million to cover Advanced Placement, International Baccalaureate, and the College-Level Examination Program testing fees for students from families with low incomes.
✓ New funding of $125 million to expand Career and Technical Education in areas of the state that lack access.
FLINT DECLARATION OF EMERGENCY______________________
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING:
✓ Flat funding of $8.1 million for the Flint water declaration of emergency.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
