Michigan voters will head to the polls in November to elect a new governor and vote for all 148 seats in the state Legislature.

Education is expected to be a central issue in those races, with candidates offering competing visions for improving student outcomes and strengthening public schools.

Whether the goal is improving literacy, attracting and retaining teachers or expanding student supports related to health and safety, the success of any vision for Michigan’s schools will ultimately depend on how schools are funded.

We conduct research on K-12 education policy and finance at the Education Policy Innovation Collaborative at Michigan State University. Our work examines how school funding shapes educational opportunities for students in Michigan.

As the state’s school finance system has changed over the past few decades, school funding has become increasingly complex. We explain how those changes affect students, taxpayers and policymakers.

Money shapes academic achievement

For the 2025 fiscal year, Michigan’s education budget was more than US$21 billion, and education accounted for more than 25% of state spending.

What Michigan spends on students matters. A recent review of studies conducted over decades shows that achievement improves when K-12 students receive a better-funded education. Other studies show that academic outcomes fall when funding declines.

Research also shows that greater funding can not only lead to increased attendance and higher educational attainment, but also meaningful life outcomes beyond high school graduation. These include being more likely to enroll in and complete college, higher earnings and lower likelihoods of being arrested as an adult.

One of those studies concluded that increased funding has a positive return on investment for taxpayers based on reduced crime alone.

While increasing education spending generally can improve student outcomes, evidence suggests that making direct investments in classrooms through higher pay for educators has the biggest impact on student achievement.

How Michigan’s school finance system works

Before voters approved Proposal A in 1994, local school districts and communities in Michigan largely controlled education funding decisions. Proposal A shifted control over day-to-day expenses like salaries, textbooks and materials, utilities and building........

© The Conversation