Statement by the statewide, non-partisan coalition, Michigan Partnership for Equity and Opportunity (MPEO) coalition, on the recently passed Michigan House FY 2026 Budget   

The MPEO coalition and its leaders oppose the House passed budget because it does not adequately meet the needs of our most vulnerable students. Instead, this budget continues the trend of unfairly prioritizing the foundation allowance, which is already among the highest in the country, at the expense of students from low-income backgrounds, English Learners, students with disabilities and rural students. The coalition urges state leaders to increase investment in the Opportunity Index and to maintain crucial funding streams specifically allocated for English Learners and rural and geographically isolated districts – which were eliminated in the House budget – and ensure greater fiscal transparency and accountability of how the dollars are spent. 

“Michigan has long had one of the most unfair school funding systems in the nation, leaving many students from low-income backgrounds and English Learners without the funding and resources to meet their full potential,” said Mike Jandernoa, a West Michigan business leader who is one of the tri-chairs of the MPEO.   

“Policymakers recently have worked to address the gaps in opportunity by increasing funding for English Learners over the past two years and creating the Opportunity Index, a new school funding formula that drives additional needed dollars to school districts based on concentration of poverty,” Jandernoa said. “State leaders also laudably invested in the needs of rural students. We’re encouraged to see the House’s support of students from low-income backgrounds through the Opportunity Index. Yet, this FY 2026 budget could undermine the progress our state has made.”  

The Michigan Partnership for Equity and Opportunity urges the legislature to continue investing in students with the most needs by: 

• Increasing funding for the Opportunity Index by an additional $400 million.   

• Increasing funding for English Learners by an additional $100 million.  

• Maintaining funding for rural and isolated school districts and school transportation.  

• Preserving current fiscal transparency and accountability measures and funding streams dedicated to students with the greatest needs while establishing stronger new statewide systems of fiscal transparency and accountability to ensure dollars for students who are underserved reach them in their classrooms.   

“As the federal government recently proposed to slash federal funding for English Learners and has indicated interest in dramatically cutting funding for students and schools with the greatest needs, it is more important than ever for Michigan to step up and fill the leadership void being created or threatened by the federal government,”  said Amber Arellano, executive director of EdTrust-Midwest, a nonpartisan nonprofit organization that is a backbone member of the MPEO. Arellano is one of the tri-chairs of the MPEO. 

“Instead of retreating on this needed support for schools, Michigan should double down on our support for students from low-income backgrounds and English Learners. Rather than removing transparency and fiscal accountability measures, state leaders should enhance systems of fiscal transparency and accountability to ensure dollars for students with the greatest needs reach them in their schools and classrooms.”  

“We urge policymakers to come together to pass a school aid budget that supports every public school student and ensures that all children have the opportunity for a great public education,” said Alice Thompson, chair of the education committee for the Detroit NAACP and a tri-chair of the MPEO.  

Specifically, the House budget:  

• Increases per-pupil funding by 4.3% – from $9,608 to $10,025 – but does not increase funding for the Opportunity Index, which is a priority of the MPEO. 

• The House budget also eliminates $125 million in one-time funding for school district transportation, which could be detrimental for students in rural districts.   

• Eliminated dedicated funding streams for some vulnerable student groups, including English Learners and rural and isolated districts. Instead, the House established a new funding stream that lacks appropriate fiscal transparency and accountability to ensure dollars allocated to English Learners and rural and isolated districts actually reach their classrooms. 

• The new funding stream totals $1,975 per pupil. This is in addition to the foundation allowance increase. 

This new funding stream dramatically undermines accountability for taxpayer dollars. It makes it impossible for Michigan families to know if their tax dollars reach the students for whom dollars are intended.  Research has found that safeguards in state education funding, especially for vulnerable student groups, are important for both accountability and quality assurance purposes.  

MPEO members underscored the urgency of the moment. Michigan ranks in the bottom ten in the nation for school funding weights for students from low-income backgrounds among states with similar funding systems in 2024-25, according to an analysis by EdTrust-Midwest. Additionally, Michigan students lag leading education states in key subject areas, like 4th grade reading and 8th grade math, but outcomes are far worse and clearly unacceptable for students are underserved.  

The budget now goes to the Senate, which is expected to reject the budget and send it to conference committee.     

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The following is a statement by the MPEO, a non-partisan, statewide coalition made of business, non-profit, philanthropic and civic leaders from across the state of Michigan who champion making Michigan a top ten education state for all groups of students and ensuring opportunity for every Michigan student, no matter their zip code.