5 things to know about $24.3B Michigan school budget Gov. Whitmer signed Thursday

LANSING — Record funding for K-12 schooling in Michigan — with big boosts to expand preschool, improve special education, literacy and mental health services, as well as introduce free school meals for all — understandably got most of the attention when Gov. Gretchen Whitmer signed the 2024 school funding bill in Suttons Bay Thursday.

But there was much more than that in the $24.3 billion bill, including more than $2.8 billion for the state's community colleges and universities.

Here are details on that funding, plus other items from Senate Bill 173 that should not be overlooked:

Universities

Michigan's 15 public universities are to receive $2.3 billion in funding for the 2024 fiscal year that starts Oct. 1, including a 6.4% increase for university operations. That's more than the 4.5% boost Whitmer recommended back in February, but far less than the 16.3% increase called for in the version of the budget passed by the Senate.

Interestingly, Michigan universities will receive about $753,000 less from the state's general fund next year than they did this year, under the budget Whitmer signed. That's because Whitmer and lawmakers drew on the School Aid Fund to support universities by nearly $135 million more than it did this year.

When she was Senate minority leader and later a candidate for governor, Whitmer pledged to end "raids" on the School Aid Fund to support colleges and universities by her predecessor, Republican Gov. Rick Snyder, and instead reserve the fund for K-12 purposes. But a bulging School Aid Fund has been a major element of record budget surpluses the state has recently enjoyed. In 2024, the state will spend just over $1 billion from the School Aid Fund to support colleges and universities, up from just under $800,000 this year.

Asked why use of the School Aid Fund to pay for post-secondary education has not been halted or reduced, Whitmer spokeswoman Stacey LaRouche said the administration has been able to "use (the) SAF to make record investments across the board in both K-12 and college/universities."

Community colleges

Michigan's 28 public community colleges are to receive $544.5 million in 2024 funding under the budget Whitmer signed Thursday. That's only 2.8% more than they received this year, but it represents a 4.9% boost in funding for college operations.

That's more than the 3.9% increase Whitmer called for in February, but far less than the 23.1% increase called for by the state Senate.

The budget also includes $32.8 million to help colleges improve or maintain buildings, equipment, student housing, and school safety measures.

“Through these investments, Michigan’s community colleges will continue to provide high-quality education and training to ensure Michiganders have successful futures," Michigan Community College Association President Brandy Johnson said after lawmakers finalized the budget in late June.

Private schools

Whitmer's February budget sought to further restrict state funding for private schools. But those intentions mostly did not carry through to the final budget she and lawmakers passed for 2024.

More: Gov. Whitmer signs $24.3 billion Michigan education budget

Public funding for private schools is generally banned under the state constitution, but there have been exceptions. For example, in the current budget, $1 million goes to private schools to reimburse them for the costs of complying with health and safety requirements.

Whitmer's February budget called for axing that funding. But the conference report she signed Thursday — a product of compromise among the governor, House and Senate — includes that $1 million again in the 2024 budget.

The conference report also makes private schools eligible for a share of $328 million to be distributed statewide to improve mental health and school safety, and a share of $6.6 million in grants for participation in robotics competitions.

Cyber schools

Whitmer's February budget called for a 20% funding cut for cyber schools, which have lower costs related to items such as school buildings and transportation.

Instead, the budget approved by the conference committee freezes the per-pupil allowance for cyber schools at the 2023 level of $9,150. The freeze will save the state $9.8 million. The cut would have saved the state $42 million.

Reserve funds

The school aid budget signed Thursday, along with the general government budget Whitmer has yet to sign, will mostly deplete a massive state budget surplus that was pegged at $9.2 billion in January.

But the rapid spending of the surplus is somewhat mitigated by the fact the state is socking more than $1 billion into reserve funds that will be available to spend in future years.

In the school budget signed Thursday, a supplemental appropriation for the 2023 fiscal year sets aside $450 million for a new Rainy Day Fund for K-12 schools, similar to the Budget Stabilization Fund that can be used to help fund state agencies during an economic downturn. The main budget bill adds another $100 million to that fund.

The 2023 supplemental school spending bill, made law Thursday as part of the same package, adds $400 million to a reserve fund related to the Michigan Public School Employees" Retirement System, deposits $245 million into a newly created School Meals Reserve Fund and puts $200 million into a new Great Start Readiness Program Reserve Fund related to preschool. Some, but not all, of those reserve funds are expected to be spent in the 2024 budget.

Contact Paul Egan: 517-372-8660 or pegan@freepress.com. Follow him on Twitter @paulegan4.

This article originally appeared on Detroit Free Press: 5 things to know about $24.3B school budget Whitmer signed Thursday