A Lot Of People Jumping On Board Late School Bus

(Source: MIRS.news, Published 10/02/2025) A $21.3 billion School Aid Fund budget that increases the per-pupil allowance 4.6 percent to $10,050 per pupil, retains the free breakfast and lunch and increases by 25% funding for “at-risk” school districts and English language learners passed the Senate and House Thursday evening, 31-5 and 104-5, more than three months past the July 1 budget deadline.

Sens. Thomas Albert (R-Lowell), Joseph Bellino Jr. (R-Monroe), Jonathan Lindsey (R-Coldwater), Aric Nesbitt (R-Lawton) and Jim Runestad (R-White Lake) cast the five no votes in the Senate, and Reps. Steve Carra (R-Three Rivers), James DeSana (R-Carleton), Brad Paquette (R-Niles), Dylan Wegela (D-Garden City) and Regina Weiss (D-Oak Park) were the five no votes in the House.

The Fiscal Year (FY) 2026 spending plan in SB 166 expands the state's 4-year-old pre-school program, sets aside $65 million for smaller K-3 class sizes, but cuts local schools $100 million in teacher retirement payments (Michigan Public School Employees Retirement System or MPSERS).

It also increases the amount of School Aid Fund money going into universities by nearly $400 million to $850 million, continuing a trend most lawmakers don't like but are forced to deal with.

“This budget shifts hundreds of millions of dollars to Higher Ed, dollars that can be allocated to do even more for our K-12 students. I am hopeful that tomorrow, as we turn our attention to Fiscal Year 2027, we will prioritize efforts to close that gap and give Michigan's kids the same support so many of their peers nationwide benefit from,” said Rep. Carol Glanville (D-Grand Rapids) in her floor speech.

Universities are seeing, on average, a 2.8 percent funding increase, ranging from 4.8 percent for Western Michigan University to 1.9 percent for Grand Valley State. The increase is contingent on schools keeping their tuition to no more than 4.5 percent. Community colleges will see an average of 2.1 percent more in state funding, ranging from 3 percent for Alpena Community College to 1.5 percent for a couple of the Upper Peninsula schools.

Overall, Senate K-12 Appropriations Subcommittee Chair Darrin Camilleri (D-Trenton) said the budget protected all the “vital programs that we know our families need," while steering more money to education compensation, mental health and school safety.

“We protected a lot of the programs that people stood up, and said they wanted us to keep when they saw the version of the House Republican budget earlier this year,” he said. “We were successful. Did we have to give up some stuff? Yeah, but that's the nature of compromise.”

Other highlights from the K-12 budget include:

- No cuts to cyber schools. They'll continue to get $10,050 per pupil.

- Special education saw a $205 million increase.

- $100 million was put into a school consolidation and infrastructure fund

- The School Transportation Fund is getting $130 million.

The budget received praise from Jennifer Mrozowski, the senior director of strategic communications and external relations for EdTrust-Midwest.

“Amid an extremely tough budget cycle and tremendous federal uncertainty for our nation’s public schools, Michigan policymakers took an important step Thursday by investing more in students who have long been underserved," she said. “The FY '26 School Aid budget proposal recognizes that all students deserve access to an excellent public education, but that some students need more support to reach their full potential."

However, the Michigan Association of Superintendents and Administrators, the Michigan Association of School Boards, the Michigan Association of Secondary School Principals. Michigan Association of Intermediate School Districts said the budget is in clear violation of state law and the Constitution, the Legislature has finally passed the School Aid budget — over three months late.

“Educators were left watching the news alongside the general public for details of the budget’s contents, which were released only hours before the vote on a bill more than 400 pages long. This lack of transparency erodes and undermines the partnership that schools should be able to rely on with their state leaders.

“We are relieved that schools will receive their October 20 state aid payments on time, providing districts with more certainty. We also appreciate that this budget includes meaningful investments in public education that will benefit students across Michigan."