(The Center Square) – Michigan spent nearly 18% more per K-12 student in 2023, compared to 2020. California is the only state in the nation that saw a higher percentage of growth over that period.
This is according to a new report from the Reason Foundation, a libertarian think tank.
The K-12 Education Spending Spotlight found that Michigan now spends more than $6,200 on pension debt and other employee benefits for every student it serves. All while Michigan’s average teacher salary is trending down.
Aaron Garth Smith, co-author of the report and director of education reform at Reason Foundation, spoke with The Center Square in an exclusive interview. Smith highlighted some of the report’s findings in Michigan.
“Michigan’s public schools are now receiving $21,909 per student, up nearly 30% in real terms since 2002,” he explained. “But these dollars aren’t boosting student outcomes or going to teacher paychecks.”
Enrollment is another factor the study looked at and Michigan ranked 48th-worst nationally. Since 2020, the report found that Michigan has lost 4.1% of its K-12 public school students. That isn’t just a COVID-19 trend though, with the report finding that enrollment is down 17% since 2002.
Smith said this shows that spending more taxpayer money is not the solution.
“Thousands of school districts across the nation are empty,” Smith said. “Public schools don’t need more money, they need to reduce inefficiencies and spend money on things that actually matter.”
Testing is also an area of concern, both nationally and in Michigan. Michigan students are regularly testing below proficiency, something The Center Square has reported on extensively.
“Over 45% of fourth-graders and about 35% of eighth-graders are scoring below basic on the National Assessment of Educational Progress Exam,” Smith said. “This is despite spending nearly 30% more per student.”
This all comes as teacher salaries fall, with the 2023 average salary 6.4% less than it was in 2020. Overall, from 2002 to 2022, the report found that the average teacher salary in Michigan fell by 21.8%, when inflation is taken into account.
Michigan isn’t the only state with a K-12 education system that is struggling though, the report found.
“Despite record funding levels across states, 40% of the nation’s 4th graders are scoring basic in reading, which is worse than it was two decades ago,” Smith said. “The takeaway from our research is clear: policymakers must address structural issues in public education, especially with how dollars are spent.”
Pensions and debt play a significant role in the increased spending, both in Michigan and nationally. Michigan was just one of thirteen states where employee benefit costs exceeded $5,000 per student.
“Teacher pension debt is also a problem,” Smith explained of the national results. “Spending on employee benefits—which includes pension costs, health insurance, and other expenses—grew by over 81% between 2002 and 2023, due primarily to accumulated unfunded pension liabilities.”
Smith said it is time for both Michigan and national lawmakers to take action.
“Policymakers need to look at how public school dollars are spent,” he said, “and why they aren’t improving achievement.”
