$125M in state budget will aid rural school transportation, educators say

William Perkins, The Record-Eagle, Traverse City, Mich.
·3 min read

Jul. 16—TRAVERSE CITY — Public school officials in northern Michigan are applauding a new funding model in the state budget which aims to dispense school transportation funds more equitably.

Officials in rural districts have been lobbying for the change for several months, though they say they've been aware of the disparities for much longer than that. In the past, transportation costs came out of a district's general fund, which is apportioned based on pupil headcount. But research has shown that it costs more to transport a student in a largely, sparsely populated district than it does a student in a more dense area.

The new state budget will fund districts' transit costs to the tune of $125 million, and allocations would be based on a tiered system. Schools would receive money based on a formula incorporating both pupil count and miles covered.

"There's a reality that it just takes more [money] to drive more miles when you have less kids," said John VanWagoner, Traverse City Area Public Schools superintendent. "We very much believe in the idea that school funding should be based on the needs of each child."

He said his district — which is in the top 10 largest in the state by geographical footprint — will stand to benefit from the legislation. But other, smaller districts in the area will fare even better, he said.

Nick Ceglarek, superintendent of Northwest Education Services, or North Ed, said the measure offers "a significant benefit for schools in our region."

North Ed is the intermediate school district covering Antrim, Benzie, Grand Traverse, Kalkaska and Leelanau counties.

Much of the groundwork for the funding formula came from a study commissioned by the Michigan School Finance Collaborative, and released in November 2022.

That study found that transportation costs among the lowest-density districts were as much as 40-percent higher than those in the most highly populated districts. Costs for low-density districts also were more than 20 percent higher than the average.

It would take somewhere in the ballpark of $402 million for the state to fully fund public school transportation services, the study also found.

VanWagoner commended northern Michigan's legislators for their support of the measure, and especially credited State Rep. Betsy Coffia (D-Traverse City), for being the "torch bearer" of the cause.

"I'm just really proud of all our northern Michigan superintendents, and our legislators that really came through," he said. "It was great to see this get across the finish line."

Coffia proposed a tiered funding formula in late March as a standalone piece of legislation, but the House ultimately incorporated it into its version of its proposed budget instead.

"This has been a priority for her since she took office, and her voice has been heard in Lansing," Ceglarek said. "I know school leaders in our region and across the state will benefit from her leadership on this issue."

The precise breakdown of the funding formula has yet to be determined.

TCAPS is likely to end up somewhere in the middle of the pack. Though large geographically, the district's density is elevated by Traverse City and its surrounding townships, VanWagoner said.

He said the district will be "happy with whatever it gets."

The supplemental funding will allow the district to devote more resources to mental health services, he said.

Report for America corps member and data journalist William T. Perkins' reporting is made possible by a partnership between the Record-Eagle and Report for America, a journalism service project founded by the nonprofit Ground Truth Project. Generous community support helps fund a local share of the Record-Eagle/RFA partnership. To support RFA reporters in Traverse City, go to www.record-eagle.com/rfa.