Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
Michigan's House Republicans have advanced a Fiscal Year 2026 education budget that proposes significant changes to funding allocations for public schools. The budget, which moved through the House without Democratic support, would provide $12,000 per student by eliminating approximately 100 specific earmarks.
The proposal includes three bills: HB 4576, HB 4577, and HB 4578. These passed with narrow votes of 56-53, with Reps. Steve Carra and Josh Schriver opposing all three. However, budgets for higher education and community colleges were postponed due to concerns over deep cuts.
House K-12 Appropriations Committee Chair Tim Kelly described HB 4577 as a "shock to the system," aiming to streamline funding by removing numerous categorical grants. "Over the years, this explosion of categoricals has diverted hundreds of millions of dollars away from students," Kelly stated.
The budget increases the per-pupil foundation allowance by $1,975 to compensate for rolled-up categoricals and adds $40.8 million in General Fund money for various educational programs.
House Appropriations Committee Minority Vice Chair Alabas Farhat criticized the removal of categorical funding as reducing accountability for achieving specific goals like student nutrition and transportation.
Despite potential constitutional issues with allocating public funds to private schools, House Appropriations Committee Chair Ann Bollin supports this move and does not anticipate legal challenges.
Democrats expressed concern over elements within the budget they view as restrictive or difficult for school districts to comply with. Rep. Carol Glanville called it "a joke" that reflects misplaced values regarding Michigan's children.
The Department of Education faces a $19.2 million cut under HB 4576, resulting in the elimination of 118 positions. This bill also mandates full-time office attendance for department employees and prohibits spending on diversity training.
HB 4578 maintains MiLEAP's budget at around $640 million but reduces its workforce by cutting positions across several divisions. Rep. Greg Markkanen emphasized fiscal responsibility in crafting this part of the budget.
Overall, these proposals mark a significant shift in Michigan's education funding strategy amid debates on equity and resource allocation priorities.
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