The Budget Breakdown
Michigan lawmakers have finalized a long-delayed state budget that delivers a mix of major investments in education, infrastructure, and health care, while also raising questions on its long term sustainability.
For PreK-12 schools, the budget provides a $21.29 billion total appropriation, a 2.5% increase from last year. The foundation allowance will rise 4.6% to $10,050 per pupil, a $442 boost, bringing total per pupil allocations to $10.61 billion. The budget maintains the traditional structure of per pupil funding and categorical programs, rejecting House Republicans’ proposal to consolidate most categorical funding into a higher foundation allowance, which would have moved away from the equity framework followed by previous School Aid budgets.
Schools will see a 25% increase for at-risk students for a total of $250 million, $12.5 million for English Language learners, $70 million for career and technical education, $60 million for literacy programs, $200 million for school infrastructure, $125 million for rural transportation, and $65 million for small class sizes. In addition, more than $300 million is allocated for school safety and mental health and a $200 million one-time allotment for educator bonuses that can be bargained at the local level. Universal school meals and special education are also fully funded.
However, the budget reduces MPSERS payroll reimbursements by $100 million, eliminating 147a funding, which was given to districts to offset payroll costs. School Aid funds were diverted to non-public schools for school meals, safety and mental health and the Michigan Virtual University also will receive an additional $1.8 million. Community College and University funding draws heavily on the School Aid Fund, diverting $850 million, up sharply from $461 million last year.
For State Universities, the budget allocates $2.34 billion, a one time 3% increase for operational funding allocated according to the performance formula. All public universities receive funding increases, though Michigan State University and the University of Michigan-Ann Arbor see smaller bumps at 2.1%. Unlike the House-passed version, the final budget avoids singling out individual universities for cuts. Community Colleges receive a 6.8% overall increase with $493 million coming from the School Aid Fund.
The Department of Health and Human Services faces the biggest shift, with its $30.03 billion budget reflecting a 20.2% overall decline, even as General Fund support rises 6.2%. The cuts stem from the federal cuts to Medicaid, which curbs state reliance on provider taxes. Michigan responded by moving billions into contingency funds in hopes of securing a federal waiver. Even with these reductions, DHHS will see $30 million in one-time support for food assistance.
Overall, the compromise budget balances new investments in students, educators, and infrastructure with difficult trade-offs. It funds universal meals, bolsters safety and mental health, supports higher education without culture war language, and expands transportation funding. Yet, reliance on School Aid Fund diversions, delayed passage, and federal uncertainty around Medicaid financing leave its long-term stability in question.
Happy PSRP Week!!
School and college support staff go by many names. At the AFT, we call them paraprofessionals and school-related personnel, or PSRPs. In other parts of the country, they are called classified employees, education support professionals or school-related professionals. Whatever names your school or college uses to describe support staff, one thing stays the same—the work you do is critically important. From the earliest moments of a child’s pre-K education all the way to postgraduate school, PSRPs make an impact. Download this guide to celebrating PSRPs today and year-round.
Free Speech and Online Safety Webinar – Oct 9
In today’s digital age, the line between personal expression and professional consequences can feel increasingly blurred. For educators and public employees, understanding your free speech rights—and how to protect yourself online—has never been more important.
Join AFT President Randi Weingarten, Lee Rowland of the National Coalition Against Censorship, and Victorya Vilk of PEN America on Thurs., Oct. 9 at 5 p.m. EDT, for a critical conversation about free speech, digital safety and your rights as an educator.
Don’t miss this timely webinar designed to help you navigate public discourse safely and confidently. Register now.
‘No Kings Day’ – Saturday, Oct. 18
As the Trump administration escalates its attacks on our rights, including our basic civil rights and our rights to vote and to govern ourselves, millions are rising up again to say: “No Kings.” On Saturday, Oct. 18, the growing No Kings movement will take to the streets once more to demand dignity, defend our communities and reject authoritarianism in all its forms.
Tell us how you’re #PublicSchoolProud
We’re bringing back our Public School Proud campaign to celebrate the everyday moments that make public schools the heart of our communities. Whether it’s science fairs, literacy nights or football games under the lights, these moments remind us that public schools don’t just educate; they unite us and give every child a shot at a better life. Every week, we will highlight great things happening in public schools. You can share what makes you public school proud.
AFT Michigan Professional Development Workshop
Approaches for Student Academic Development
Saturday, October 11, 2025
8:30 a.m. – 4:00 p.m.
AFT Michigan – David Hecker Building
2661 E. Jefferson – Detroit 48207
This in-service is designed to encourage educators to examine their current teaching strategies.
By rethinking learning strategies through guided reflection that can enhance students’ academic outcomes.
Click herefor more information and to register.
New Issue of AFT Health Care
Check out the new issue of AFT Health Care
Contribute to the AFT Michigan PAC Today
AFT Michigan fights for our members, students, patients and communities all year round and we need your help. Can you donate $1 a week to aid us in this fight? Please visit the AFT Michigan website to contribute and make a big difference in protecting public education and building a better Michigan future!
Learn more about the trauma counseling program by visiting members.aft.org/members/login
Free Webinar: Options for Student Loan Borrowers in SAVE Plan
Savi, the loan education and assistance program offered through the Union Plus Student Debt Navigator, is here to help identify savings and forgiveness programs for student loan borrowers. The repayment landscape is ever-changing and Savi’s free monthly webinars break down the latest student loan policy updates, show union members how to find and apply for savings and forgiveness options, and include a live Q&A session.
Their next webinar is taking place on Oct. 21 at 6 p.m. ET and will focus on the Saving on a Valuable Education (SAVE) Plan as interest resumes for student loan borrowers.
The future of the SAVE Plan remains uncertain, since the plan has been on hold since spring 2024 due to a federal court injunction, and a final court decision is still pending. In the meantime, interest is now being added to loan balances for nearly 8 million borrowers, though forbearances that pause payments remain in effect.
Borrowers can explore their options during the Oct. 21 webinar. Register here.
Learn more about how Savi can support your members by visiting the Union Plus Student Debt Navigator.
In solidarity,
Terrence Martin
President
