"The right to criticize government is also an obligation to know what you are talking about."

-Lent Upson, first director of Citizens Research Council

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January 31, 2025

Next week, the state legislature will receive Governor Whitmer’s FY2026 School Aid budget proposal. It will allocate $19 billion in state-sourced spending across a multitude of programs and services for Michigan’s 1.4 million public schoolchildren. In addition to focusing on “what” gets funded in the governor’s budget proposal, lawmakers should also examine “how” funding is allocated to districts.

Categorical grants undoubtedly play an important role in public education, helping to address specific challenges and support targeted initiatives. However, their rigid requirements, administrative demands, and potential to exacerbate inequities highlight the need for a more balanced approach to school funding. By combining limited categorical grants with more flexible funding options, Michigan can ensure each public school has the appropriate mix of resources needed to address both immediate priorities and long-term goals

In A Nutshell:

 -- Lawmakers have been loading up recent state School Aid budgets with funding for a growing catalog of new initiatives that align with their particular policy priorities and preferences.

 -- State-directed grant funding provides less budgetary discretion to local school leaders who are best attuned to the myriad challenges facing their students today.

 -- The increased presence of categorical grants in the state K-12 budget should prompt lawmakers to reflect on the advantages and disadvantages of the current shift towards funding schools via these grants and some of the unintended consequences that have arisen with increased emphasis on state-directed funding.

More Analysis from our Blogs:

• Getting the "Dys" out of Michigan's Dysfunctional Legislature
• Now is a Good Time for Lawmakers to Tackle Local Government Finance Reform
• Popular, But Expensive, Weight-Loss Drugs Create Major Questions for Policymakers
• Michigan Urgently Needs a Watershed-based Approach to Address Water Pollution and Urban Flooding
• 2025 Brings Final Detroit Public Schools Debt Repayment

Three February Detroit Events Feature the Citizens Research Council

We hope you can make one or all!

Three upcoming events in Detroit are designed to let people know who the Citizens Research Council is, what we do, and how everyone can use our public policy research, analyses, and expertise to help make Detroit and Michigan better. We will give an overview of Detroit-focused research and we hope to hear the concerns and questions from people in the room, as we move into a new year with a divided Legislature, a Detroit mayor's race and a host of challenges and opportunities. 

All the events can be found here: https://crcmich.org/event.

 -- The first gathering is two weeks away, on Saturday, February 8, from 3 - 8 pm: an intimate, informal wine and cheese reception hosted by and at the home of Research Council Director Nathan Benedict. Registration is required, and space is limited. Learn more and RSVP here.

-- The second gathering is two days later, Monday, February 10 from 12 - 2 pm: Community Conversations with the Research Council - a luncheon and exchange of ideas at The Skillman Foundation. Registration is required. Learn more and RSVP here.

-- The third February gathering in Detroit will be Wednesday, February 19, from 6-7:30 pm, at Bas Bleu, with charcuterie and a cash bar, hosted by Research Council Director Aya Waller-Bey. Seating is limited, and registration is required. Learn more and RSVP here.

Click here for information on all three events here: https://crcmich.org/event.

House backs early vetting, posting of proposed budget earmarks, Crain’s Business (January 29)

Dana Nessel and other state AGs sue to block Trump's federal funding pause, Detroit Free Press (January 29)

House speaker wants to pull back business tax credits to pay for roads. Experts say it won’t be so simple, Crain’s Detroit (January 23)

Fiscal Experts: 2025 is a great time to give local governments some options on funding, MAC (January 23)

Bigger ideas needed to really fix Michigan’s damn roads, Bridge Michigan (January 21)

While Both Sides Blather On About “Fixing The Damn Roads” – Michigan Road Funding Ranks 30th Nationally, Thumbwind (January 21)

Michigan making record interest income on mountain of cash, Detroit News (January 20)

How Michigan is trying to recapture its innovation mojo, Michigan Advance (January 11)

Gretchen Whitmer’s Chance for Wide-Ranging Legacy Derailed by Botched Legislative Session, ProPublica (January 10). Also appeared - Alternet (January 12)

Senate Fiscal Agency: Michigan’s revenue forecast may be stronger than expected, WKAR Public Radio (January 7). Also appeared - WCMU Public Media (January 7)