News Story

Public Radio Claims State Took School Money, But Funding Is Higher

K-12 schools getting more money to educate fewer kids

The public broadcasting news site Michigan Radio reports that since 2010, the state of Michigan has taken $4.5 billion away from K-12 education and given it to higher education.

The story paints an incomplete picture because it fails to mention that the amount of state money (not including local or federal funds) given to K-12 schools increased over the past eight years, despite claims of a $4.5 billion diversion.

State funding for K-12 public schools increased from $10.7 billion in 2009-10 to $13.0 billion appropriated for the 2018-19 fiscal year. After adjusting for inflation, that comes to $800 million more for the coming school year when compared to 10 years ago. The increase comes even though Michigan public schools are serving fewer students, with statewide pupil counts down about 100,000 students, from 1.62 million in 2010-11 to 1.52 million in 2017-18.

The story leaves out something very important: During the time the state made a $4.5 billion shift to universities, it also appropriated $117 billion to K-12 schools.

The dollars in question are tax revenues that are earmarked for the state School Aid Fund. Those revenues have grown as the state’s economy has improved. Under the state constitution, School Aid Fund dollars may be used “exclusively for aid to school districts, higher education, and school employees’ retirement systems.” School Aid Fund revenues come from the sales tax, lottery, individual income tax, property taxes, casino taxes and others.

The Michigan Radio states that the 2011-12 state budget shifted $400 million in school aid money to universities and reduced per-pupil K-12 funding by $470 per pupil.

Once again, the story is not complete, because it does not explain that, overall, state dollars going to K-12 schools actually increased from $10.8 billion in 2010-11 to $11.1 billion in 2011-12.

And state funding for K-12 education has increased with every fiscal year, starting in 2011-12.

“As with many of our stories, this web post is basically a rewrite of one of our short, headline newscast stories,” said Vincent Duffy, news director of Michigan Radio. “Because of time limits, those stories tend to be very focused, and overall school funding was not part of the focus of this spot. We certainly don’t shy away from covering stories about increases in school budgets. In fact, one of the related stories attached to this post does just that. We believe the entirety of our coverage of school budgets provides balance.”

Underneath the story, with the headline “related content,” Michigan Radio posted a June 3 story, two paragraphs long, which reported that every school district will get a $70-to-$140 per student increase in the new K-12 budget.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

Would Residents Favor School Spending Hike If It Meant 21 Percent Income Tax Hike?

Pollsters didn’t ask; a 62 percent cut to road repairs would also free up the $2.3 billion specified

A Washington, D.C., consulting firm released survey results that its sponsors claim show strong support among Michigan residents for a $1,500 per-pupil increase in funding for Michigan’s public schools. Although that amount was mentioned, the survey did not explicitly ask respondents — who were also told that current funding is inadequate — whether they supported such an increase.

The increase would amount to a $2.3 billion rise in spending on K-12 public schools. Paying for such an increase would require the equivalent of a 21 percent increase in the state income tax rate, from 4.25 percent to 5.15 percent.

While respondents weren’t asked if they favored such an increase in school spending, the $1,500 per student figure was mentioned in a 116-word preface leading up to the question.

A question in the poll states, “Changing gears a bit, I am going to read you some details about a proposal about changing the way schools are funded in Michigan by establishing a standard, per pupil funding formula?”

“Business leaders and education experts from across the state came together last year to address inadequate funding for public and charter schools in Michigan. This diverse and nonpartisan group commissioned a one-of-a-kind study to determine the base cost of educating a student. The amount excludes transportation like bussing, food service, like lunches, and capital costs, like building construction and upkeep. It recommends a $1,500 increase in current funding levels, from $8,000 per student per year to $9,590 per student per year. Some people are proposing to use the findings of this study to change the way we fun schools and establish a standard, per pupil funding baseline amount for all Michigan public and charter school students.”

“Would you favor or oppose this proposal to change the way schools are funded in Michigan by establishing a standard, per pupil funding formula?”

To that question, 60 percent of the people either stated they “somewhat favor” or “strongly favor.”

The survey was commissioned by a group largely comprised of school spending interests. Greenberg, Quinlan Rosner, the research firm which conducted the survey, didn’t respond to an email seeking comment.

If $2.3 billion more for schools were funded with spending cuts rather than a tax hike, the amount required would be the equivalent of a 62 percent cut in funding for road repairs. Alternately, it would be equivalent to closing all the state’s prisons and eliminating 75 percent of the state’s funding for community colleges.

Ari Adler, spokesman for Gov. Rick Snyder, said that school funding has increased over the years.

“If talking strictly funding, it’s important to note that total state taxpayer spending on education now stands at nearly $13 billion annually,” he said in an email. “Since fiscal year 2011, K-12 funding has increased by $2.1 billion. In addition, the fiscal year 2019 budget provides the largest per-pupil increase in more than 15 years and significantly reduce the equity gap among districts.”

State-only funding for all public schools was $10.80 billion in 2010-11. It is $12.86 billion in 2017-18. In 2010-11, the state spent the equivalent of $11.87 billion when stated in 2018 dollars, meaning that after inflation, state spending on schools has increased by $1 billion since then.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.