With the introduction of the House and Senate School Aid Fund budget proposals – in addition to Gov. Gretchen Whitmer’s executive budget recommendations earlier this year – the state budget process for the 2024-25 school year is now in full swing. Over the next few weeks, MEA will be closely engaged with stakeholders in budget negotiations, advocating for the resources students and educators need.

This analysis from MEA’s lobby team shows the various levels of funding proposed for PreK-12 schools (further analysis on higher education funding proposals will be coming as those budgets are more available). All three budgets contain increases in per-pupil funding, make large investments in pre-K programs, improve the distribution of special education funding, and, to different degrees, improve the sustainability of several important new programs, including mental health, transportation and declining enrollment.

Approximately two-thirds of the increases in the FY 2025 education budget rely on a reduction in MPSERS costs, thanks to reaching fully-funded status in the retiree health care fund. In a letter to the governor and legislative leaders, MEA President Chandra Madafferi expressed support for investing these funds in our students and educators, with the caveat that member concerns must be addressed about the funds staying in PreK-12 education and ensuring educators benefit financially from the move.

“The educators who have been putting 3% of their salary into this system need to share in the benefit of reaching this funding milestone,” Madafferi said. “Money from their paychecks is a major reason why the system is now fully funded. Pausing or otherwise reducing their 3% payments into the system is one way of accomplishing this, and we appreciate that the House-proposed budget includes a step in this direction.”

Over the next few weeks, revenue estimates will be agreed upon by state finance experts, which will allow for a final negotiation between the governor and the Democratic-controlled Senate and House about what to include in the final 2024-25 budget bills. Stay tuned for more from MEA throughout that process in May.