Michigan Advance | Commentary – New year, new priorities: It’s time to fix Michigan’s special education funding
by Alexandra Stamm
January 13, 2026
A fresh year is the time to reflect on the one before, let go of the status quo and embrace new habits. As Michiganders set their intentions for 2026, the state Legislature is setting its intention for the upcoming year by finalizing budget priorities for the 2027 fiscal year, which informally kicks off with the Census Revenue Estimating Conference (CREC) on Friday, Jan. 16.
One priority lawmakers should include in the upcoming budget is adopting the framework for funding special education services detailed in the Michigan Special Education Finance Reform Blueprint. This legislative report, delivered in October 2025, describes longstanding flaws with our current reimbursement model for supporting students receiving special education services, and then it provides a solution: a weighted funding model tied to student need.
Today, nearly 16% of students in Michigan receive special education services, and the proportion of students who qualify for these services continues to grow. This increase underscores a pressing need for our funding system to modernize in response to the changing student population. Currently, most funding for special education services comes from the state in the form of a reimbursement for 28.6% of district expenditures. Local funds contribute to the rest of costs, but contributions vary widely by Intermediate School District (ISD). Additionally, most districts are forced to use general fund dollars to cover special education costs, creating budget constraints. The result is inequity that shows up directly in classrooms.
The Blueprint highlights this inequity by pointing to two counties with similar student populations, but due to tax wealth, one county can spend $3,500 more per student on special education services. Essentially, our system has created a reality where two students with identical characteristics (academic achievement, family life, diagnosis, etc.) are receiving drastically different services simply because of the district they are assigned. This gap translates into fewer interventions, more students per teacher, and fewer supports for students who need them most.
The Blueprint’s model solves these problems by tying special education funding to the needs of a particular student. The new model scraps the reimbursement format and provides each special education student with the foundation allowance (currently set at $10,050) and an additional percentage of the foundation allowance, as determined by their diagnosis. The change means that funding is tied to student needs, not ZIP codes.
Although it has been nearly a decade since I was a classroom teacher, the feeling of “if only” has not faded.
If only I could be in two places at once…
If only there were someone to provide the reading interventions…
If only we funded all of our students according to their unique needs…
For too long, these have been common realities in Michigan classrooms, but they no longer need to be hypothetical wishes for our educators.
The Blueprint was developed by school finance experts and informed by hundreds of stakeholders across the state. Adequate and equitable funding will allow teachers to focus on teaching and will create classrooms where diverse needs are met with appropriate supports.
Importantly, adopting the Blueprint will not only improve outcomes for students receiving special education services; it will improve the educational experience for everyone. By strengthening staffing, reducing strain on general education classrooms, and stabilizing district budgets, the Blueprint will improve learning conditions for all Michigan students.
Now, at the start of a new year, lawmakers must take decisive action by adopting the Blueprint’s weighted funding model and redefining special education funding in Michigan. As we make our resolutions for the year ahead, let this be one we keep: a commitment to equitable, effective education funding that empowers every Michigan student to thrive.
Alexandra Stamm is an Education Policy Analyst with the Michigan League for Public Policy.
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