Michigan could be heading for one of the biggest changes to its education funding in decades. A new report released Thursday, as detailed by Chalkbeat, has called for a $4.5 billion overhaul of how the state funds special education — a move that could reshape classrooms, staffing, and support for thousands of students with disabilities.The proposal lays out a tiered funding model that would give schools between $11,000 and $39,000 per student, depending on the level of support required. That’s on top of the state’s existing $10,421 per-student base grant.The plan is designed to address what advocates describe as a deeply unfair and outdated system, one that has left districts scrambling to meet students’ needs while teachers and families stretch their limits.
From flat rates to fair support
As Chalkbeat reported, the new plan would link funding directly to each student’s needs — not to how much a district can afford. Students with mild needs, such as speech or specific learning disabilities, would receive about $11,000 each, while those needing intensive daily support, including students with autism, emotional disabilities, or traumatic brain injuries, could bring in up to $39,000 per pupil.The report also recommends creating a high-cost fund that reimburses districts for 80% of expenses above $57,615 per student. This would protect schools serving students with the most complex challenges, preventing local budgets from being overwhelmed.If approved, the new model would be phased in over six years, at an estimated cost of $4.55 billion.
Stretched thin for decades
Advocates say this reform is long overdue. According to Chalkbeat, Michigan’s special education system currently reimburses schools for only 28.6% of their costs, one of the lowest rates in the country. The rest must come from local or federal funds — a gap that leaves poorer districts struggling.“For decades, our special education system has been stretched thin,” said Heather Eckner, director of statewide education for the Autism Alliance of Michigan, in comments reported by Chalkbeat. “It’s underfunded, overly complex, and deeply unfair in how resources are distributed.”Eckner said the current system means a student’s access to services can depend more on where they live than on what they actually need.
A broken system that hurts families and schools
Former Michigan Lt. Gov. Brian Calley, who has long advocated for students with disabilities, called the state’s current setup “broken.”“When you have a funding system that doesn’t recognize the differences between what students need, it forces parents into adversarial relationships with schools,” Calley told Chalkbeat. “That’s the opposite of what we want.”Under the new plan, Calley said, districts would finally be able to fund services proactively instead of reacting to gaps and shortages.
More resources, more teachers, more time
Educators say the plan could also ease one of Michigan’s biggest challenges — special education staffing shortages.“I always felt like I wished I could split myself into four,” said Alexandra Stamm, education policy analyst at the Michigan League for Public Policy and a former classroom teacher, speaking to Chalkbeat.With more funds, schools could hire additional paraprofessionals, speech pathologists, and special education teachers, ensuring that students get timely evaluations and individualised attention.
Linking funding to real student needs
The proposed funding model reflects a larger shift in Michigan’s education policy — from uniform per-student grants to needs-based, data-driven funding. The state already uses an “opportunity index” to give more money to schools serving at-risk students. Advocates hope the same logic will now apply to students with disabilities.Currently, schools rely heavily on general fund dollars to cover special education costs, which has created wide disparities across the state. Wealthier districts can fill the gap; others simply can’t.“This new system puts the focus where it belongs — on the student, not the ZIP code,” Eckner said.
What happens next
The Michigan Legislature will now have to decide whether and how to adopt the recommendations. The report offers two options: one where the state fully covers the new costs, and another where expenses are shared between the state and local districts.Advocates say lawmakers can no longer afford to delay action. As Eckner warned in Chalkbeat’s report, “If we don’t act now, we’ll continue to see students and families struggle in a system that’s been stretched thin for far too long.”
