EdTrust Urges Incoming Leaders To Close $1.31B School Funding Gap

(Source: MIRS.news, Published 11/10/2026) Michigan school districts serving the highest concentrations of students from low-income families received $1,728 less per pupil than their more affluent counterparts, according to a new EdTrust-Midwest report urging the incoming governor and Legislature to expand targeted education funding and strengthen reading instruction.

The report, Going for Gold: Setting the Standard for Michigan Achievement, released today, found that improvements in graduation rates, college affordability and education investments have not eliminated substantial differences in students’ academic performance or access to school resources.

The education research and advocacy organization evaluated 23 measures across five areas: academic outcomes, college readiness and success, student well-being, learning opportunities, and school funding.

Its recommendations include fully funding by 2030 of Michigan’s Opportunity Index, a weighted school funding formula created in the Fiscal Year 2024 budget process to provide extra money to public school districts based on the number of students in poverty.

EdTrust-Midwest estimates that reaching the funding levels written into state law would require approximately $1.31 billion more. It separately identified a $1.74 billion special education funding shortfall compared with research-based recommendations.

The $1,728 funding difference reflects state and local revenue in the 2023-24 school year. The organization found that local revenue differences were the primary driver of the gap.

“We cannot settle for an education system where a student’s background or ZIP code determines their opportunities,” said EdTrust-Midwest State Director Brian L. Love in a statement.

The report’s academic findings show the challenge facing policymakers.

On the 2026 M-STEP, 38.2% of Michigan third-graders scored proficient or above in reading, while 33.3% of seventh graders met that standard in math.

Among students from low-income backgrounds, the corresponding proficiency rates were approximately 25% in third-grade reading and 19% in seventh-grade math.

The organization called for sustained investments in evidence-based reading instruction, educator training, literacy coaches, instructional materials and interventions tailored to students who need additional help. It also recommended tracking whether those investments reach students and improve outcomes.

Staffing and attendance present additional challenges.

Michigan averaged approximately 565 students per school counselor in 2026, compared with the American School Counselor Association’s recommended ratio of 250 students per counselor.

In the 2024-25 school year, 27.9% of Michigan students were chronically absent, meaning they missed at least 10% of the school year. Although attendance had improved from the pandemic peak, absenteeism remained above its pre-pandemic level.

The report also found that students of color represented 38% of Michigan’s student population in 2026, while teachers of color accounted for 13% of the teaching workforce.

EdTrust-Midwest recommended strengthening educator recruitment, retention, compensation and diversity, alongside efforts to improve students’ connections to school.

The findings were not uniformly negative. Michigan’s four-year high school graduation rate reached 84% in 2025, with the report crediting the state with expanding access to advanced coursework and improving college affordability.

Still, only 54.6% of 2025 public high school graduates enrolled in college within six months of graduation. Dual enrollment participation, which allows students to take college courses while in high school, remained below 10%.

The organization urged policymakers to expand advanced coursework, college-credit opportunities and advice while sustaining college affordability investments.

Its final priority was stronger public reporting on student outcomes and school spending, allowing families and policymakers to assess whether additional resources reach their intended students and produce results.