REBUILDING EQUITABLY:

OVERCOMING EDUCATIONAL INEQUITY THROUGH MICHIGAN’S BUDGET

BRIEF ON THE FISCAL YEAR 2022 EXECUTIVE SCHOOL AID BUDGET RECOMMENDATION
By Tabitha Bentley, Ph.D, and Riley Stone

The past year has demonstrated the fragility of Michigan’s public LEARNING RECOVERY
education system and longstanding inequities, amid the rapidly The acute need for learning recovery amid the ongoing pandemic
evolving global pandemic. One year ago, Governor Whitmer should not overshadow gaps in access, opportunity and outcomes
proposed a budget without mention of COVID-19, which had not yet that long predated COVID-19; however, unfinished learning during
come into the public consciousness. the pandemic can also not be ignored.
Research suggests that school closures may result in Black students
Just weeks later, schools across the state were abruptly closed as
falling behind by 10.3 months, Hispanic students by 9.2 months and
Michigan’s first cases of COVID-19 were diagnosed. The past year low-income students by more than a year.ii Furthermore, our own
has seen inequities abound as school closings have been followed data shows that online virtual instruction is a significant challenge
by a patchwork of reopenings and a shift to virtual instruction amid for hundreds of thousands of Michigan children due to a lack of
a significant digital divide. Some students have returned to in- digital access in their household.iii
person instruction in recent months, yet hundreds of thousands Governor Whitmer has proposed $250 million in one-time funding to
continue to attend virtually, and thousands remain unaccounted for.i address student recovery in the following areas:
• Academic recovery, including targeted interventions
It would be easy, in this moment, to focus only on the devastating
such as high-dosage tutoring. Effective implementation of
educational impact of COVID-19. Yet as highlighted in The Education tutoring has been shown to lead to significant learning
Trust-Midwest’s recent report, The Urgency of Now: Michigan’s gains.iv
Educational Recovery, we must instead accelerate efforts to • Physical and mental health, recognizing the
reimagine public education and support the broader educational considerable toll that shutdowns, increased isolation and
recovery caused by longstanding inequities that have hindered trauma has had on many students and their families,
physically and emotionally.
educational opportunity for decades. Whether learning disruption
• Postsecondary readiness and transition, to ensure
and inequity are the product of a recent crisis or systemic that graduating students are prepared to enter credit-
undercurrent, our top priority must be a full recovery for every bearing courses as they transition into postsecondary
student. education.

In the Fiscal Year 2022 Executive Budget Recommendation and the Additionally, Governor Whitmer has proposed one-time funding to
spending of Governor’s Emergency Education Relief Funds, Governor support student’s educational recovery through:
• In-person summer learning for two summers – High-
Whitmer outlines investments intended to support the immediate
quality summer learning programs help make up for
recovery students require, while also making progress on the long-
learning lost as a result of school closures and virtual
term goal of building a more equitable approach to school funding. instruction. This research-based practice for learning
recovery would be supported through $120 million over
This document is intended to highlight key pieces of Governor
two years.v
Whitmer’s education budget recommendation and how these • Locating missing students – Students cannot learn if
priorities can advance equity and excellence in Michigan schools. they are not engaged, yet fall enrollment data did not
account for more than 50,000 students.vi The Governor has
allocated $2 million in federal emergency aid to find
Read more research and analysis from the missing students.
Education Trust-Midwest at:
www.michiganachieves.com

THE EDUCATION TRUST-MIDWEST | REBUILDING EQUITABLY | FEBRUARY 2021

Addressing these many needs of students will be important for the percent of the statewide average foundation allowance as
educational recovery from COVID-19. As important will be tracking written in law and would continue the cycle of prorating
the success of these efforts through common metrics and public funding for student groups.ix Even at the proposed increased
reporting so Michigan can learn from these efforts and apply
levels, much more would be needed to close opportunity gaps.x
lessons to our broader educational improvement efforts.

ETM applauds this proposed increase and recommends

FAIR SCHOOL FUNDING
Research shows that Michigan is among the bottom five states for continuing to move toward a system where students from low-
funding equity, spending 5 percent less in its highest poverty income backgrounds receive at least twice as much funding
districts than its lowest poverty districts.vii than their non-low-income peers and where the needs of
vulnerable students are prioritized.
Governor Whitmer’s executive budget recommendation moves the
state’s funding system in the right direction by providing a general • Funding for Students with Disabilities – The Governor also
increase in funding to all districts as well as targeting resources for proposes a statewide increase of funding for special education
districts and students with the greatest need. Below we outline services by $20.8 million for reimbursements to districts. This
how Governor Whitmer’s recommendation measures up to the key comes on top of a recent proposal by the Governor to provide
equity principles that should be embedded into every state’s additional one-time funding for students with disabilities by
funding system, outlined in The Education Trust-Midwest’s reports. more than $223 million. This is a step in the right direction as
Michigan’s current funding of special education is grossly
Governor Whitmer’s budget increases the foundation allowance – inadequate, resulting in many districts resorting to the use of
or the per-pupil base funding – for every district in the state, with general education funds to fully fund their special education
a greater increase for districts currently at the minimum foundation costs.xi
allowance. Depending on the district’s current funding level, their
per-pupil foundation allowance would increase by $82-$164. Additionally, Governor Whitmer plans to use $3 million in one-
Districts currently at the minimum foundation allowance would time federal funding to provide recovery services for children
receive $8,275 and districts at the maximum would receive $8,611. ages 0-3 with disabilities or developmental delays, though
This budget proposal moves Michigan closer to the important goal Michigan’s Early On program.
of having one common foundation allowance by reducing the per- Michigan has also routinely received poor ratings from the U.S.
pupil funding gap between school districts at the minimum and Department of Education for their implementation of the
maximum to $336. requirements of the Individuals with Disabilities Education Act
The Education Trust-Midwest (ETM) and national research (IDEA), with Michigan most recently being identified as
recommend schools and districts should also receive funding in “needing assistance.” Michigan should move toward a system
addition to the foundation allowance in order to appropriately serve that guarantees the full foundation allowance for each student,
the additional needs of all students, recognizing that some students plus supplemental state funding for students with disabilities
need greater support to reach their full potential.viii Governor that is based on the actual, full cost of additional supports that
Whitmer’s budget makes progress towards a weighted funding the student needs.
formula based on student need, providing two percent increases in • Funding for English learners – The Governor also proposes
funding for students from low-income families, students with a $260,000 increase in support for English learners, yet still this
disabilities and English learners: will be substantially lower than levels research recommends.xii
• At-Risk Funding – Governor Whitmer’s budget Increasing support for English learners is important and should
recommendation includes an estimated $765 per eligible pupil be continued, as ETM recommends moving toward a system
to meet the additional learning needs of students from low- that provides at least 100 percent more funding for English
income families and other underserved student groups. While learners compared to students who are not English learners.
this would be a total increase of $12.5 million to at-risk funding
if adopted, it would still not fully fund at-risk students at 11.5

THE EDUCATION TRUST-MIDWEST | REBUILDING EQUITABLY | FEBRUARY 2021

All dollars spent in Michigan’s public education system should be EXPANDING POSTSECONDARY ACCESS
spent in the most effective way possible, and this starts with At a time when almost two-thirds of jobs require some form of
accountability and transparency for spending. For more information postsecondary training, and long-term benefits of postsecondary
on principles around ensuring greater accountability and investments are clear, Michigan students must be able to afford
transparency in Michigan’s school funding system, view our enrollment in, and completion of postsecondary education in order
January 2020 school funding report. to succeed in the 21st century global economy. xv

The need to support students preparing to enter postsecondary

IMPROVING LITERACY SUPPORTS
education is even more important now, given the harm and expense
Research clearly demonstrates the impact that high-quality learning
that pandemic-related disruptions may have on students nearing
experiences can have on students’ success in the long term.xiii
high-school graduation.
When children read well by third grade, they are dramatically more
likely to succeed. This is especially true for students from lower Governor Whitmer’s plan works toward increasing postsecondary
income levels. accessibility and affordability by:

In recent years, ETM has spearheaded efforts to remove barriers • Increasing the number of high school seniors
that could hold children back from reading, including successfully completing the FAFSA (Free Application for Federal
advocating for the inclusion of dyslexia screening language in Student Aid) – The FAFSA is the common application that
Michigan’s two most recent budgets. This language is also included students must fill out to access federal and state aid and, in
in the governor’s budget recommendation this year, ultimately many cases, institutional aid. In late 2019, Governor Whitmer
making it easier for students to be identified for characteristics of announced the statewide “Governor’s FAFSA Challenge,”
dyslexia early on in their life and to receive the supports they need which includes student incentives and awards to high schools
to help in their learning. for high FAFSA completion rates. The Governor’s budget
recommendation maintains funding for these incentives
Governor Whitmer’s budget proposal also includes other early through partnership with local college access networks. The
literacy strategies, such as supporting literacy coaches and other Education Trust-Midwest aims to ensure every high school
reading interventions. As our 2018 State of Michigan Education graduate either completes a FAFSA or knowingly opts out of
report examined, investing in evidence-based models, including completing the form, and this incentive-based program would
literacy coaches, is good policy, but must also be followed up with be a step in the right direction.
best-practice implementation and statewide evaluation of the
• Maintaining the Michigan Reconnect Grant Program –
approach to monitor quality. In many ways, Michigan has left Launched earlier this year, Michiganders 25 and older that have
literacy improvement and how dollars are spent up to chance not previously earned a postsecondary credential can obtain an
instead of providing meaningful guidance, leveraging innovative associate degree or occupational certificate tuition-free
delivery systems, and strengthening alignment between the early
through Michigan Reconnect. The Governor’s budget provides
childhood and K-12 education systems.xiv $120 million to continue funding this program over two years.
Additionally, the governor’s budget recommends focusing on • Continuing Futures for Frontliners – Recognizing the
Michigan’s early childhood programs, which is an important part of sacrifices of essential workers throughout the pandemic,
supporting students in literacy and building a seamless learning Futures for Frontliners was launched to provide a tuition-free
continuum for students from early childhood through the early pathway for frontline workers without college degrees to earn
grades. This focus is supported by a recommended increase in the an associate degree or skills certificate. First funded using
per pupil allotment for the Great Start Readiness Program to $8,275. federal relief dollars in 2020, Governor Whitmer proposes to
continue and expand the program through $60.4 million in
funding during the current and next fiscal years.

THE EDUCATION TRUST-MIDWEST | REBUILDING EQUITABLY | FEBRUARY 2021

REFERENCES
i
MiSchoolData, COVID-19 Learning Plan Dashboard. Retrieved from https://www.mischooldata.org/covid-dashboard/; MDE, Student Count 2019-2020
ii
Emma Dorn, Bryan Hancock, Jimmy Sarakatsannis, and Ellen Viruleg, “COVID-19 and Student Learning in the United States: The Hurt Could Last a Lifetime,” (McKinsey & Company, June
2020). https://www.mckinsey.com/industries/public-and-social-sector/our-insights/covid-19-and-student-learning-in-the-united-states-the-hurt-could-last-a-lifetime
iii
Ayat AL-Tamimi, “Michigan’s Digital Divide,” The Education Trust-Midwest, August 2020. https://midwest.edtrust.org/2020/08/10/ digital-divide/
iv
Matt Barnum, “What If Every Struggling Student Had a Tutor? It Won’t Be Cheap, but it Might Be Worth It,” The 74 Million, February 2017. https://www.the74million.org/article/what-if-
every-struggling-student-had-a-tutor-it-wont-be-cheap-but-it-might-be-worth-it/
v
Catherine H. Augustine, Jennifer Sloan McCombs, John F. Pane, Heather L. Schwartz, Jonathan Schweig, Andrew McEachin, and Kyle Siler-Evans, “Learning from Summer: Effects of
Voluntary Summer Learning Programs on Low-Income Urban Youth,” (Santa Monica, CA: RAND Corporation, September 2016). https://michiganachieves.com/wp-
content/uploads/sites/2/2021/01/Education-Trust-Midwest_The-Urgency-of-Now-Michigans-Educational-Recovery_January-13-2021.pdf
vi
Koby Levin and Eleanore Catolico, “Michigan Enrollment Fell by 53,200 Students This Fall as The Pandemic Raged. Where Did They Go?,” Chalkbeat Detroit, December
2020.https://detroit.chalkbeat.org/2020/12/8/22163735/enrollment-down-in-mi-pandemic; Koby Levin, “Whitmer: State Has ‘Very Important Role to Play’ Finding Missing Students,”
Chalkbeat Detroit, December 2020. https://detroit.chalkbeat.org/2020/12/18/22189478/whitmer-finding-missing-students-michigan
vii
Ivy Morgan and Ary Amerikaner, “Funding Gaps: An Analysis of School funding Equity Across the U.S. and Within Each State 2018,” (Washington D.C.: The Education Trust, February 2018).
https://edtrust.org/resource/funding-gaps-2018/
viii
William D. Duncombe and John Yinger, “How Much More Does a Disadvantaged Student Cost?” (Syracuse, NY: Center for Policy Research, July 2004).
https://surface.syr.edu/cgi/viewcontent.cgi?article=1102&context=cpr
ix
Michigan Department of Education, State School Aid Update Vol. 29 No. 1, October 2020. https://www.michigan.gov/documents/mde/October_705433_7.pdf
x
Bruce D. Baker, Mark Weber, Ajay Srikanth, Robert Kim and Michael Atzbi, “The Real Shame of the Nation: The Causes and Consequences of Interstate Inequity in Public School
Investments,” (New Brunswick, NJ: Rutgers University, April 2018). https://drive.google.com/file/d/1cm6Jkm6ktUT3SQplzDFjJIy3G3iLWOtJ/view; William D. Duncombe and John Yinger,
“How Much More Does a Disadvantaged Student Cost?,” (Syracuse, NY: Syracuse University Center for Policy Research, July 2004).
https://surface.syr.edu/cgi/viewcontent.cgi?article=1102&context=cpr
xi
David Arsen, Tanner Delpier and Jesse Nagel, “Michigan School Finance at the Crossroads: A Quarter Century of State Control,” (Lansing, MI: Michigan State University, January 2019).
http://education.msu.edu/ed-policy-phd/pdf/Michigan-School-Finance-at-the-Crossroads-A-Quarter-Center-of-State-Control.pdf
xii
William D. Duncombe and John Yinger, “How Much More Does a Disadvantaged Student Cost?,” (Syracuse, NY: Syracuse University Center for Policy Research, July 2004).
https://surface.syr.edu/cgi/viewcontent.cgi?article=1102&context=cpr
xiii
Donald J. Hernandez, “Double Jeopardy: How Third Grade Reading Skills and Poverty Influence High School Graduation,” (Baltimore, MD: The Annie E. Casey Foundation, January 2012).
https://www.aecf.org/ resources/double-jeopardy/
xiv
The Education Trust-Midwest, “Top Ten For Education: Not By Chance,” (Royal Oak, MI: The Education Trust-Midwest, March 2018). https://midwest.edtrust.org/resource/top-ten-for-
education/
xv
Anthony P. Carnevale, Nicole Smith, and Jeff Strohl, “Recovery: Job Growth and Education Requirements Through 2020,” (Washington, D.C.: Georgetown University Center on Education
and the Workforce, June 2013). https://cew.georgetown.edu/cew-reports/recovery-job-growth-and-education-requirements-through-2020/; Philip Trostel, “It’s Not Just the Money: The
Benefits of College Education to Individuals and to Society,” (Washington, D.C.: Lumina Foundation, 2015). https://www.luminafoundation.org/files/resources/its-not-just-the-money.pdf

THE EDUCATION TRUST-MIDWEST | REBUILDING EQUITABLY | FEBRUARY 2021