The arrival of the COVID-19 pandemic and associated lockdowns in spring 2020 significantly disrupted how schools delivered instruction while also threatening their primary funding sources. Federal and state policymakers have prioritized the financial relief of schools as institutions, even as some frustrated parents and students have migrated to other schools or learning options. But tax revenues quickly recovered and federal and state aid poured in, turning a once dire-looking fiscal forecast into a huge financial boon for many districts, regardless of how many students they served. In fact, the schools that are least attractive to parents and provided only remote instruction have been rewarded the most.
Moving forward, Michigan policy decisions concerning education funds should be guided by a greater focus on the unique needs of students and the desires of families. That means phasing out and repealing the 75-25 formula and return to funding schools based on current students and their needs. The allocations for most federal funds have already been designated. But legislators can do more to direct smaller shares of discretionary funds to districts that are growing or have been shortchanged by the federal formula.