AMA ESD expresses concern over school funding proposal

File Photo
District superintendents from the Alpena-Montmorency-Alcona Educational Service District are sending letters to their legislators expressing concern about the funding proposal recently passed by the State House of Representatives.
The AMA-ESD repleased the letter on Friday.
“While headlines have touted the largest foundation allowance increase for schools, we must respectfully state that, for our districts, the House budget represents a dramatic and unmanageable decrease in school funding,” Alpena Public Schools Superintendent Dave Rabbideau stated in the letter. “For this communication, I will share details for Alpena Public Schools. However, make no mistake, each district will experience a similar negative impact from this proposed budget.”
For Alpena Public Schools, the elimination of the one-time funding for 147a(4) Michigan Public School Employees Retirement System (MPSERS) reduced unfunded actuarial accrued liability (UAAL) amounts to a loss of $1,249,229.45, the press release stated. This is compounded by the proposed 147c cap increase, which will result in an additional loss of $1,375,995. These two changes alone create a devastating financial blow to our district. This comes on the heels of the 2024-25 school year, in which no district in Michigan received an increase in the per-pupil foundation allowance. Rather than making a historic investment, this proposal forces our districts to take a significant step backward.
Furthermore, the superintendents fundamentally oppose the proposal’s principle of reverting to a “one size fits all” model for school funding. They have long advocated for the understanding that school funding cannot be equal amongst districts to be equitable. The districts face unique geographical challenges that result in significantly higher operational costs. For example, Alpena Public Schools spends nearly $2.5 million annually on transportation, and this essential service consumes nearly 8% of the district’s annual budget, while other districts may spend as little as 1% on the same need.
“We urge you to reconsider this proposed budget,” the letter states. “The real harm will be to the students we serve. Our students deserve a budget that genuinely invests in their future and acknowledges the unique realities of their education.”