Gov. Whitmer signs $23.4B education budget into law. Here's what's in it.
FLINT — Gov. Gretchen Whitmer signed into law Tuesday an education budget that has drawn criticism from some of her traditionally strongest allies — school superintendents and other educators.
Whitmer celebrated the budget she signed at a Flint preschool and day care, saying it invests in Michigan students, puts more money in the pockets of educators, and expands Michigan’s public education system through support for expanded pre-kindergarten and tuition-free community college.
“In Michigan, we want every single person to be able to get onto the path that is best for them,” Whitmer said as she signed the education budget at Educare, where some of Michigan’s youngest learners played with blocks and ate snacks as state leaders touted the spending plan.
“This budget had them in mind,” said state Sen. Sarah Anthony, D-Lansing, who chairs the Senate Appropriations Committee.
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The $23.4 billion education budget includes $20.6 billion for K-12 schools, $2.3 billion for universities, and just over $462 million for community colleges. That's down about 3.5% from the $24.3 billion education budget for the current year, which included $21.5 billion for K-12 schools, $2.3 billion for universities, and just over $544 million for community colleges.
The K-12 portion of the budget is controversial because it provides for no increase in what's known as the foundation grant, leaving that at the 2024 level of $9,608 per student, amid declining enrollment in many school districts and higher costs resulting from inflation.
The Whitmer administration argues the freeze in the foundation grant is offset by other budget changes, especially one that will free up about $589 million that school districts would have to pay into the teacher retirement fund. That argument hasn't satisfied most school administrators, who say the zero bump in the per-pupil grant will cost them each year going forward, while there is no guarantee the savings on retirement costs will continue.
Other highlights of House Bill 5507 include:
For universities and community colleges, a 2.5% increase in grants to cover the costs of operations.
Tuition-free community college for in-state students who complete high school or obtain an equivalency certificate, under a $330 million Community College Guarantee program that eliminates income requirements and increases the amount of financial support some students can receive.
A $9,150 per-pupil grant for K-12 cyber schools, which have lower building and transportation costs. Whitmer's initial budget proposal, back in February, would have reduced that grant to $7,879 per pupil.
Charter schools that don't pay into the Michigan Public School Employees' Retirement System and therefore won't enjoy the savings in retirement costs, will receive a 3.9% increase to their per-pupil grants.
A boost of $82.9 million in money set aside to help K-12 students deemed "at risk" due to factors such as economic and family challenges, bringing the total at-risk allocation to $1 billion. Some of the money can be used to reduce class sizes.
For the first time, 4-year-olds in all Michigan families, regardless of income, are eligible for free pre-kindergarten. But in the event there is a shortage of spaces, priority will be given to families with incomes at or below 400% of the federal poverty level.
Continuation of free breakfasts and lunches for all Michigan public school students, under a $200 million program estimated to save each participating family about $850 per year.
Republicans in the Legislature have denounced the budget as falling "woefully short of what Michigan students and educators deserve."
State Rep. Mike Harris, R-Waterford, said in a Tuesday news release that "education and school safety will both suffer setbacks under this misshapen spending plan."
Whitmer is still to sign the biggest part of the 2025 state budget, the $59 billion budget to fund state agencies, at a later date.
Contact Paul Egan: 517-372-8660 or [email protected]. Follow him on X, @paulegan4.
This article originally appeared on Detroit Free Press: Whitmer signs $23.4B education budget into law. Here's what's in it.
