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State superintendent criticizes new Michigan school aid budget

School Finance

Education Daily Wire Jun 11, 2025

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Dr. Sue Carnell - Chief Deputy Superintendent | Michigan Department of Education

The fiscal year 2026 school aid budget, recently approved by the State House, has been criticized for its lack of support for key educational priorities. State Superintendent Michael F. Rice expressed concerns over the budget's failure to provide dedicated funding for early literacy, addressing teacher shortages, and other critical areas.

Dr. Rice stated, “We must do better for our school children than this duct-taped budget that would remove guaranteed and targeted funding for improving early literacy, addressing the teacher shortage, and supporting students who have the greatest needs." He added that while he supports increased per-pupil funding and reduced categorical grants to offer more flexibility to school districts, the current budget endangers statewide education priorities.

The approved budget consolidates funds into large block grants, which Dr. Rice argues will weaken efforts to support and educate children while also tackling the state's shortage of certified teachers. The budget does not allocate specific funds for early literacy improvements, teacher shortages, school safety enhancements, mental health services for children, transportation reimbursements for rural districts with higher busing costs, support for English learners, infrastructure costs in many communities, or career and technical education expansion. Additionally, there is no state support allocated for school meals.

“This budget spends money from the state education rainy day fund without a downturn in the economy,” Dr. Rice commented. He noted that it diverts funds intended for pre-K-12 students into higher education and reverses recent legislative actions aimed at reducing retirement contribution rates to ease financial burdens on public schools.

Dr. Rice expressed his willingness to collaborate with legislative partners and the governor on a revised fiscal year 2026 budget that builds on past successes in improving high school graduation rates and postsecondary credential attainment rates. He emphasized the importance of continuing efforts to address teacher shortages as well as reading, math proficiency, and children's mental health in Michigan.

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Michigan Department of Education

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