School Finance Working Group Update

School Finance Working Group Update


The School Finance Working Group met remotely Thursday, June 18 from 4-5:30 p.m.

The agenda included a review of some funding streams that are not equally available to all school districts. The group reviewed and addressed topics concerning funding discrepancies between charter schools and school districts as well as pupil transportation funding. MDE presented an update on the development of options to address school finance pressure points.


The last item on the agenda was the presentation of the draft proposals or options as identified by the working group subcommittees.
• Special Education Cross Subsidy (5 options)
• English Learner (EL) Cross Subsidy (3 options)
• Opportunity / Achievement Gap (2 options)
• School-Based Health Care (4 options)
• Funding Streams Not Equally Available to All School Districts – work in progress (3 options)
• Funding Streams Not Equally Available to Different Types of Local Education Agencies – work in progress (4 options)
• Pupil Transportation Funding (2 options)

The next meeting will consist of a robust discussion surrounding these draft proposals and looking at issues not yet addressed such as the basic formula, Local Optional Revenue (LOR) and property tax equalization. The next scheduled meeting dates are July 16 and July 3.


The School Finance Working Group’s mission is to address education-funding issues facing the state. The group reviews key funding streams, identifies options for school finance reform, and seeks consensus on recommendations for systemic change. A review of previous working group sessions is available on the MDE website School Finance Working Group page.


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