Whitmer signs $23.4B school budget in Flint amid criticism over funding for students, programs

Gov. Gretchen Whitmer discusses the Fiscal Year 2025 Education Budget at Educare in Flint. | Kyle Davidson

Gov. Gretchen Whitmer gathered with parents, lawmakers and school and budget officials in Flint on Wednesday and signed off on the $23.4 billion education budget for Fiscal Year 2025.

“As you all know, education is the key to growth: economic growth, community growth, personal growth. A good economy is built on great schools that deliver better outcomes,” Whitmer said.

While speaking at Educare in Flint, Whitmer highlighted a number of programs included in FY 2025 education budget that takes effect Oct. 1, including $181 million for literacy grants and literacy coaches, a continuation of the state’s free breakfast and lunch program for students, alongside investments beyond K-12 education.

Education budget makes strides on Whitmer’s free pre-K and community college plans

“Earlier this year, I proposed what we’re calling the Michigan guarantee, which is a plan to give every child access to free public education from pre K through community college and I’m really proud that in this budget, we were able to get it done,” Whitmer said.

According to a breakdown from Whitmer’s office, the state is investing $130 million into expanding free pre-K to every 4-year-old in Michigan, including $54 million to serve an estimated 5,300 additional children, $31 million to increase the full day per child allocations to $10,185 and $25 million to open new classrooms in underserved areas.

The state has also dedicated $30 million increase funding for the Michigan Achievement Scholarship, which provides Michigan high school graduates access to  an associate degree or skilled certificate tuition-free at a community college, or the equivalent of up to $27,500 toward the cost of attendance for a bachelor’s degree.

It also includes $52 million for the Michigan Reconnect Program, providing Michigan residents ages 25 and older with a tuition-free pathway for a degree or skills certificate.

The budget also increased funding to the Tuition Incentive Program by $20 million to help provide support to lower income students in Michigan’s community colleges, public universities, and private universities, and allocates $14.5 million for the North American Indian Tuition Waiver, to provide tuition-free education to eligible Native Americans at Michigan public universities and community colleges.

“In Michigan, we want every single person to be able to get on the path that is best for them. Whether you’re headed to a trade school, starting a union-backed apprenticeship, going to community college tuition free, you deserve a fair shot at your dream,” Whitmer said.

While Whitmer touted increased investments into students, the budget did not include an increase in the per-pupil allowance for K-12 schools, maintaining the current $9,608 allocated per student.

However, the budget included a decrease in rates paid to the Michigan Public School Employees’ Retirement System (MPSERS) in an effort to redirect $670 million from the system into additional schools funds, which Whitmer’s administration said was freed up by paying off certain liabilities early.

The offset allocates $598 million in reimbursements back to school districts, libraries and communities by reimbursing about 5.75% of payroll costs. The budget also eliminates a 3% contribution to retirement healthcare required from some public school teachers.

According to a statement from Whitmer’s office , the $598 million in ongoing reimbursements are equivalent to a 4% increase in funding per pupil, averaging a $400 increase per pupil compared to the amount included in the budget for Fiscal Year 2024.

However, some lawmakers and education advocacy groups have raised alarms on the one-time nature of the funds diverted, as policies that would have permanently eliminated the 3% contribution requirement and reduced the MPSERS contribution rate required from public schools were left on the table as lawmakers adjourned for the summer.

“The additional dollars they put into it are done in a one-time fashion that makes them difficult to impossible, frankly, for districts to spend,” Robert McCann, executive director of the K-12 Alliance of Michigan told the Advance in a previous interview.

Without the guarantee that this funding will be available in future years, schools can’t responsibly allocate the funding for things like staffing or ongoing student programming, McCann said.

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House Appropriations Committee Chair Angela Witwer (D-Delta Twp.) and Gov. Gretchen Whitmer at Educare in Flint. | Kyle Davidson

House Appropriations Committee Chair Angela Witwer (D-Delta Twp.) and Gov. Gretchen Whitmer at Educare in Flint. | Kyle Davidson

State Sen. Sarah Anthony (D-Lansing), chair of the Senate Appropriations Committee. | Kyle Davidson

Gov. Gretchen Whitmer signs the Fiscal Year 2025 education budget at Educare in Flint. | Kyle Davidson

Gov. Gretchen Whitmer signed the Fiscal Year 2025 education budget at Educare in Flint on Tuesday, July 23, 2024 | Kyle Davidson

State Budget Office Director Jen Flood. | Kyle Davidson

Gov. Gretchen Whitmer signed the Fiscal Year 2025 education budget at Educare in Flint on Tuesday, July 23, 2024 | Kyle Davidson

Gov. Gretchen Whitmer discusses the Fiscal Year 2025 Education Budget at Educare in Flint. | Kyle Davidson

Gov. Gretchen Whitmer poses with state lawmakers after signing the Fiscal Year 2025 education budget at Educare in Flint. | Kyle Davidson

Educators have also called on lawmakers to pass additional funding for school safety and mental health , with the FY 2025 budget allocating $26.5 million in grants for per-pupil mental health and school safety compared to the $328 million included in the current FY 2024 budget.

In the final budget bill , the Legislature noted its intent that the $598 million in MPSERS reimbursements “be used to support student mental health, school safety, the educator workforce and academic interventions.”

Multiple Republican lawmakers released statements on Tuesday criticizing the cuts to school safety funding, alongside other concerns.

“These cuts deal a devastating blow to schools in Genesee County and throughout Michigan,” state Rep. David Martin (R-Davison) said. “Schools cannot function properly without adequate funding for safety and mental health. These budget cuts recklessly and unnecessarily put our children at risk.”

Republicans have also repeatedly criticized the plan to divert funding calling it a “raid” though a coalition of 13 groups representing educators, administrators, principals, school boards, school business officials and multiple school districts have argued the $670 million diverted away from the MPSERS fund belongs to schools while advocating for a decrease in the contribution rate.

The education budget passed both chambers along party lines, with Republicans voting against the bill.

“The Democrats’ priorities are misplaced, and it’s our kids who are paying the price,” Martin said. “We must demand better for our schools, our teachers, and most importantly, our children.”

When asked about the cuts to school safety dollars Whitmer told reporters the Legislature wanted to give school districts additional flexibility in dictating the right amount of spending and how the funds should be utilized.

“It doesn’t mean that it’s gone, it simply means that it’s not mandated from the state and that it’s ultimately going to be a local decision,” she said.

Whitmer also said discussions with the Legislature on a permanent cut for MPSERS contributions will likely continue when the Legislature returns from recess. However, she did not weigh in as to whether she would sign a bill approving the change, saying it would be premature as discussions continue.

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