How Michigan Funds Public Schools
Michigan's school funding system was overhauled by Proposal A in 1994, which shifted primary funding from local property taxes to a state foundation allowance — a per-pupil payment from Lansing. Today, each student generates a state payment (approximately $9,608 per pupil in 2024–25 after recent increases) that follows them to whatever public school they attend, including charter schools and Schools of Choice transfers.
The system has reduced funding disparities between wealthy and poor districts compared to the old property tax model — but significant gaps remain, and the foundation allowance still falls short of what many education advocates say is needed for an adequate education, particularly for districts serving high-need students.
Source: Michigan Department of Education — State School Aid Fund
Recent Funding Increases
- Historic increases 2022–2024: Using state surplus revenue, the Whitmer administration and legislature increased per-pupil foundation allowance significantly — from $8,111 in 2021–22 to $9,608 in 2024–25 (an 18% increase in three years). Governor Whitmer called it the largest school funding increase in state history.
- At-risk and literacy funding: Additional per-pupil weights were increased for students from low-income families and those requiring special education services. FHPS (Forest Hills Public Schools) benefits from these increases despite serving a relatively affluent district because of absolute increases in base funding.
- Sustainability questions: The increases were funded in part by one-time federal pandemic relief money. As those funds wind down, whether the state can maintain these higher spending levels is an open question.
The Funding Debate
- Michigan ranks below the national average in per-pupil K-12 spending; underfunding shows in student outcomes
- Teacher salaries in Michigan have not kept pace with inflation or neighboring states, causing retention and recruitment problems
- Schools serving high-need populations require more resources per student than the formula provides, even with at-risk weights
- Michigan has significantly increased school funding in recent years with mixed results on student achievement
- Structural reforms — curriculum quality, teacher effectiveness evaluation, choice and competition — may produce more per dollar than increases alone
- The Schools of Choice system creates funding instability for districts losing enrollment; the funding formula should reflect this reality
Forest Hills Public Schools Context
FHPS serves Cascade Township and surrounding areas. As a relatively high-income district, FHPS receives the base foundation allowance without many of the categorical add-ons that benefit higher-need districts. FHPS supplements state funding through local millages — bond and operating levies approved by voters. The district's budget discussions at each fall Board of Education meeting reflect how state funding interacts with local levy revenue and enrollment trends.