New Analyses: Michigan in Bottom Ten in Nation for School Funding Weights for Students from Low-Income Backgrounds Amid Greatest Threat to Public Education in Decades

Statewide Bipartisan Coalition Calls on Michigan Policymakers to Prioritize Investing in Michigan’s Most Vulnerable Students after Decades-Long Underinvestment 

DETROIT (May 8, 2025) – Amid the greatest threat to public education in decades and continued sluggish recovery for Michigan student learning following the pandemic, a diverse bipartisan coalition of organizations across the state are calling on leaders on both sides of the aisle to invest in and prioritize strategies that improve outcomes for vulnerable student groups.

Their urgent call comes amid new findings released today showing that Michigan students lag the nation in key subject areas, including 4th grade reading and 8th grade math. The findings are included in the new 2025 State of Michigan Education Report, Meeting the Moment by EdTrust-Midwest, a nonpartisan nonprofit organization. The report also includes a new analysis which found that in 2024-25, Michigan ranked in the bottom ten in the nation for school funding weights for students from low-income backgrounds among states with similar funding systems, despite recent progress made.

To address the longstanding underinvestment in Michigan’s schools and place Michigan on track to be a Top 10 State for Education, EdTrust-Midwest issued a three-point “Opportunity for All Plan.” The nonprofit also unveiled a new “Student Opportunity Tracker,” which tracks Michigan’s investments for students from low-income backgrounds in K-12 public schools against leading education state Massachusetts and what research recommends these students need.

The report’s findings come at a time of great uncertainly for the nation’s and Michigan’s public schools as the Trump administration has begun significant efforts to dismantle the U.S. Department of Education. The administration also reportedly is exploring major changes to federal funding, school accountability and transparency systems, and other measures designed to ensure all students have access to a great public education. At stake is $2.4 billion in crucial funding, support and oversight for Michigan’s 1.4 million public school students.

“As the federal leaders increasingly take actions which threaten funding for vulnerable students, Michigan’s underfunding of public schools becomes even more dire,” said Amber Arellano, executive director for EdTrust-Midwest. “State leaders should prioritize investing in students with the greatest needs, particularly children from low-income backgrounds, who have been hit the hardest by this underinvestment in our public schools and who are the farthest behind after the pandemic.”

Among the findings and research cited in the report:

• Michigan’s sluggish reading recovery places it in the bottom five states nationally for pandemic learning loss since 2019.
• In 2024, Michigan ranked 44th in the country for 4th grade reading and 31st for 8th grade math.
• Michigan school districts across all geographic regions are behind where they were performing in 2019 before the pandemic, according to a new analysis by EdTrust-Midwest. School districts in rural areas, suburban areas, and towns continue to show large gaps in student proficiency between 2019 and 2024.
• In 2024, on Michigan’s annual state assessment, the M-STEP, students from low-income backgrounds, Black and Latino students, multilingual learners and students with disabilities all fell at least 10 percentage points below the statewide average on both the 3rd grade reading and 7th grade math tests.
• Fewer than one in five Black students were proficient in third grade reading. In 7th grade math, the proficiency rate for Black students drops to fewer than one in 10. Similarly, fewer than one in five students with a disability were proficient in third grade reading; fewer than one in 10 were proficient in 7th grade math.

EdTrust-Midwest lauded state policymakers, including Sen. Darrin Camilleri, for efforts over the last two years to increase funding for students from low-income backgrounds. Yet researchers underscored that even before the pandemic and for many years, Michigan has been woefully underfunding Michigan’s public schools, investing significantly less funding for students with additional needs than leading education states and what research recommends.

The Michigan Partnership for Equity and Opportunity (MPEO) coalition –a non-partisan, statewide coalition made of business, non-profit, philanthropic and civic leaders from across the state -also is increasingly concerned about continued federal funding support for public schools as the Trump administration stated its plans to dismantle the U.S. Department of Education. The Department plays essential roles for Michigan public schools, including through funding, oversight and other support. In Michigan, federal funding made up 13.8% of K-12 education funding in fiscal year 2023.

The federal government also provides Michigan about $580 million in funding – called Title I funding – to support low-income students and their public schools. Not only is there widespread concern that the federal administration will make sweeping cuts to its funding for low-income and other vulnerable public school students, there is also concern the administration may pass funding to states directly in the form of block grants which have little accountability for how the dollars are spent.

“This is a moment for Michigan to lean in and invest more in our vulnerable students, especially as research shows that increased investment in students with the greatest needs deliver results,” said Arellano, who also serves as one of the three chairs of the MPEO coalition.

EdTrust-Midwest researchers cited national research demonstrating how money matters in education, especially for students who have long lacked access to strong educational opportunities. For instance, research from California found that an investment of just an additional $1,000 per pupil for three consecutive years improved students’ math and reading achievement, reduced the likelihood of repeating a grade, decreased suspensions and expulsions, and increased the likelihood of high school graduation and college and career readiness.

Along with new investments, advocates also called on state leaders to create new systems of fiscal transparency and accountability for public school funding.

“Greater investment – and a greater return on that investment – is more important than ever, especially as we face a slow pandemic recovery for Michigan’s students across our state in rural areas, suburban areas, cities and towns,” said West Michigan business leader Mike Jandernoa. Jandernoa is founder and chair of 42 North Partners.

“Policymakers should put systems in place for greater fiscal transparency and accountability to ensure dollars for students with the greatest needs reach them in their schools,” said Jandernoa, who is also one of the three chairs of the MPEO coalition.

EdTrust-Midwest’s new report outlines a three-point plan of action to improve Michigan’s public education system and put Michigan back on track to becoming a Top 10 Education State.

The Opportunity for All plan calls on state leaders to:

1. Invest Now, and Wisely
2. Implement Stronger Systems of Fiscal Transparency and Accountability
3. Innovate for the Future

“All Michigan public school students deserve high-quality, rigorous options to prepare them for success, no matter their background, zip code or disability status,” said Colleen Allen, president and CEO of the Autism Alliance of Michigan. “It is time for Michigan’s public education system to deliver on that promise by strengthening, protecting and supporting our public schools, which serve the vast majority of America’s students.”

In conjunction with the report release, advocates called on policymakers to safeguard against federal changes that could harm public school students and redouble their commitment to Michigan’s students.

“Now is the time to meet the moment,” said Alice Thompson, chair of the Detroit NAACP’s education committee. “Michigan students are as bright and full of potential as students in state across our nation.

“We are calling on state leaders to reinvest in our students through transformational school funding and stronger systems of fiscal transparency and accountability,” said Thompson, one of the three chairs of the MPEO coalition. “We also call on our policymakers to build a solid foundation for a truly innovative public education system that creates access and opportunity for all Michigan students.”