Per-pupil funding · 2026-27 school year
Follow the money. It explains a lot.
Why does one county have a gleaming tech center and the next county over has a single shop class? Why will a district pay for your college class but not your gas money? Almost every answer comes back to how Michigan pays for schools. Here it is in plain English.
The base amount: $10,300 per student
Michigan funds schools mostly per student, through what is called the foundation allowance. It is a combination of state money and local property tax, and for most districts it is the same number everywhere.
| School year | Base per student | Change |
|---|---|---|
| 2024-25 | $9,608 | No increase |
| 2025-26 | $10,050 | +$442 |
| 2026-27 | $10,300 | +$250 (2.5%) |
A small number of older districts get more under a "hold harmless" rule. Full-time cyber schools get the same $10,300.
Students with more needs bring more
Starting in 2026-27, Michigan adds a weight for two groups, paid as extra per-student money:
- Students from low-income families: about $1,970 to $2,650 more each, depending on how many low-income students the district has.
- English learners: about $230 to $2,000 more each, depending on English proficiency level.
- Special education is still paid mostly as reimbursement of actual costs. A weighted model is planned for 2027-28 but is not in effect.
Sources: 2026 PA 25 (FY2027 School Aid Act), Sec. 20 and 22b · House Fiscal Agency, Basics of the Foundation Allowance · HFA FY2027 conference summary
CTE brings extra money. Here's where it comes from.
Every CTE student brings the same $10,300 as any other student, and then CTE unlocks more on top. For 2026-27 Michigan put about $68 million into funding that only CTE can use: added-cost reimbursement, CTE Early Middle College money, millage equalization and new grants. Add to that local CTE millages voters approved (Washtenaw County's alone raises about $25 million a year) and federal Perkins money, which also goes only to CTE. A regular classroom gets none of these.
Why it exists: welding booths, nursing labs and CNC machines cost far more to run than a classroom with desks. These funding streams are built to cover that gap so schools can offer hands-on programs without draining the rest of the budget.
One thing to know: the state's CTE money is paid to the program based on its costs, enrollment and how well it lines up with good jobs. It is not added to each student's per-pupil amount the way the low-income weight is. So the more students a program serves and the better its job outcomes, the more it can draw.
The CTE-only funding streams (2026-27)
| Source | Amount | How it works |
|---|---|---|
| Section 61a CTE added cost | $46.0 million statewide (up 10%) | Reimburses part of the extra cost of state-approved programs, never more than 75%. Programs tied to more job openings, better placement and higher wages rank higher. |
| Section 61b CTE Early Middle College and CTE dual enrollment | $9.2 million | Paid regionally for programs in each region's top 5 career clusters. Work-based learning programs are now eligible too. |
| Section 62 millage equalization | $9.2 million | Tops up ISDs whose voters passed a CTE millage but whose tax base is low. |
| Local CTE millage | Varies | Only where an ISD's voters approved one. Often the biggest source. More below. |
| Federal Perkins V | Varies | Equipment, teacher training and program improvement. More below. |
| One-time grants | $3.8 million in 2026-27 | 2026-27 includes $2.9 million for virtual reality career exploration and $0.9 million for hospitality and tourism CTE. In 2025-26 there was also a $70 million one-time CTE expansion grant for areas with few programs. |
Ended: Section 61d paid $88 per CTE student (plus $88 more in high-demand fields) in 2025-26. It was repealed for 2026-27.
Sources: 2026 PA 25, Sec. 61a, 61b, 61w, 62, 67d · MDE, Section 61a(1) at a glance · MDE, Other state school aid funding · MCL 388.1661d (repealed)
Worked example, 2026-27
Three students at a district funded at the base amount.
*Our estimate: $46 million in Section 61a money divided by about 115,000 secondary CTE students in 2024-25. It is an average, it goes to the program rather than the child and it varies a lot by program. Local millages and federal Perkins money add more in some places.
The takeaway: a CTE seat is backed by layers of funding that a regular class doesn't get: state CTE money, federal Perkins money and, in many counties, a local millage. For a district, every student who enrolls in an approved CTE program strengthens the case for that program's state reimbursement. That is a strong argument for adding or expanding programs.
Sources: MDE, CTE Facts 2024-25 · 2026 PA 25
How each program is paid for
Dual enrollment
The district pays the college the lesser of the actual tuition and fees or a prorated share of the statewide average foundation allowance. For 2026-27 the state uses $10,050 for this. At a six-class semester school, that is $837.50 per course. Districts may pay more. Families cover anything above, plus transportation and parking.
New for 2026-27: $40 million in one-time reimbursements to districts for dual enrollment costs, with high-poverty districts paid first. That should make districts more willing to say yes.
Early Middle College (the 13th year)
Normally a student who has met graduation requirements stops counting for funding. Early Middle College is the exception: in the fifth year the student still counts as a pupil, as long as at least one college course is transcribed for high school credit each count day. So the district keeps receiving the foundation allowance, up to a full student, and uses it to pay the college. That's how the extra year can be free to the family. CTE Early Middle Colleges also draw Section 61b money.
Free virtual courses (Section 21f)
The district pays up to 6.67% of the target foundation allowance per course: about $687 in 2026-27. A family pays more only if a course costs more and they agree to pay the difference.
AP exams
Michigan sets aside about $2.6 million (Section 94) so low-income students pay $5 per AP, IB or CLEP exam instead of $99.
Adult education
$42.5 million in 2026-27 (Section 107), up from $32.9 million, for free high school completion, GED prep, ESL and basic skills for adults 18 and older. $4 million of it goes to adult ed programs that partner with CTE programs and employers.
After high school: Reconnect and the Achievement Scholarship
These are not per-pupil school funding. They are state scholarships run by MiLEAP. Reconnect received a $25 million ongoing increase in 2026-27 to lower its age to 21. See the adults page.
CTE millages: why your county is different
State law lets an ISD ask its voters for a property tax dedicated to career and technical education. It can only be spent on CTE: teachers, equipment, buildings. ISDs that did not levy one before 1993 can ask for up to 1 mill. A separate vote can fund bonds for CTE buildings.
This is the single biggest reason CTE varies so much across Michigan. Where voters passed a millage, there's often a dedicated tech center with 20+ programs and buses from every district. Where they didn't, CTE depends on what each high school can afford on its own. Recent examples: Washtenaw County voters approved a 1 mill, 10-year CTE millage in November 2025, about $25 million a year for countywide programs. Saginaw County's CTE millage renewal is on the November 3, 2026 ballot.
If you care about CTE where you live, the millage is where your vote counts.
Sources: MCL 380.681 · MDE, Millage funding at a glance · Washtenaw ISD, CTE millage · Saginaw ISD, CTE millage
Federal money
- Perkins V is the main federal CTE grant. In Michigan, 60% goes to high school programs (run by MDE through 27 Perkins regions, each made up of one or more of the state's 53 Career Education Planning Districts) and 40% to community colleges and universities (run by LEO). Regions have to complete a needs assessment every two years to receive it.
- WIOA pays for adult job training and employer on-the-job training through Michigan Works!. See employers.
- Pell Grants pay college costs for low-income students, and since July 2026 can pay for short 8 to 14 week programs. See Workforce Pell.
Sources: MDE, Perkins V · Michigan Perkins V State Plan · LEO, Perkins postsecondary
Common questions
How much does Michigan spend per student?
$10,300 per student in 2026-27, the base foundation allowance from state and local money combined. Students from low-income families and English learners bring extra on top of that.
Source: 2026 PA 25
Does CTE bring extra funding to Michigan schools?
Yes. On top of the $10,300 every student brings, Michigan put about $68 million into funding that only career and technical education can use in 2026-27. Local CTE millages and federal Perkins money add more in many counties. The state money goes to programs based on their costs and job outcomes rather than to each student.
Source: 2026 PA 25