Michigan School Funding Adequacy

The Michigan school funding project was a deeply personal and professionally significant undertaking for the entire research team. It wasn't just a series of studies; it was a systematic, multi-year effort to deconstruct a system that, from our lived experience, was fundamentally inequitable. Summarizing that journey allows us to see the whole narrative arc and the weight of the evidence we built.

Here is a comprehensive summary of that research agenda, from its inception to its conclusions.

Summary of the Michigan School Funding Research Project (2019-2024)

Overarching Goal: To explain the evidence of structural racism, inequity, and inadequacy within Michigan's public school finance system, particularly concerning the education of Black students, and to challenge the dominant narrative surrounding the state's funding policies.

Theoretical Foundation: The entire research agenda was grounded in critical frameworks, primarily Critical Race Theory (CRT) and, in later stages, Critical Policy Analysis (CPA). These lenses allowed us to move beyond surface-level analyses of funding formulas and investigate the deep-seated, often hidden, ways that race, history, policy, and geography intersect to produce and perpetuate unequal outcomes.

Phase 1: The Initial Question - Charters vs. Traditional Schools (2019)

Study: Dissertation, "Comparing Resource-Allocation Practices on Student Performance Between Charter Public Schools and Traditional Public Schools" (Smart, 2019).
Focus: This initial quantitative study sought to test the premise of Michigan's school choice policy (Proposal A) by comparing charter and traditional public schools in Detroit. The core question was whether the charter model, promoted as more innovative and efficient, was actually delivering better outcomes or a better return on investment (ROI) for underserved students.
Methodology: Used marketplace competition theory and cost-effectiveness models. Employed t-tests and multiple regressions on state assessment data (M-STEP) and financial reports.
Key Findings: While charter schools showed slightly higher proficiency scores, both models were fundamentally underachieving. Crucially, there was no significant difference in operational efficiency (ROI). The most striking finding was the disparity in student populations: traditional public schools served nearly double the percentage of costly-to-educate special education students (19% vs. 10%). This suggested the observed performance differences might be due to population differences, not model effectiveness, and pointed towards deeper systemic issues.

Smart, R. E. (2019). Comparing resource-allocation practices on student performance between charter public schools and traditional public schools [Doctoral dissertation, University of Michigan]. Deep Blue Repositories. https://deepblue.lib.umich.edu/bitstream/handle/2027.42/149450/Smart2019.pdf

Phase 2: Unmasking Structural Racism in Charter Funding (2021)

Study: "An Investigation to Explain Structural Racism Associated with Michigan Public Charter Districts Funding Effort" (Caldwell et al., 2021).
Focus: Applying a CRT lens, this study directly interrogated the funding mechanisms for charter schools. We investigated how a policy written in race-neutral language could, in practice, reinforce systemic racism.
Methodology: Quantitative descriptive analysis of state data on enrollment, demographics, district types (charter, traditional, hold-harmless), and per-pupil revenue sources (state vs. local), adjusted for labor costs.
Key Findings: Black students, especially those receiving Free or Reduced-Price Lunch (FRL), were significantly overrepresented in charter schools. Because Michigan law prohibits charters from accessing local property tax revenue, these schools received substantially less total funding (approx. $3,800 less per pupil than traditional districts). The policy structurally underfunded the schools serving the most Black and FRL students.

Caldwell, P., II, Smart, R. E., & Richardson, J. T. (2021). An investigation to explain structural racism associated with Michigan public charter districts funding effort. Journal of Education Human Resources, 39(2), 165–183. https://doi.org/10.3138/jehr-2020-0033

Phase 3: The Systemic View - Intersectionality of Finance, Housing & Segregation (2022)

Study: "The Intersectionality of Educating Black Students in Michigan: Public School Finance, Racial Segregation, and Housing Policy" (Caldwell et al., 2022).
Focus: This study expanded the analysis to Michigan's entire school finance system, examining the interconnectedness of funding laws, historical housing policies (like redlining), and ongoing residential and educational segregation. We sought to quantify the total impact of these intersecting factors.
Methodology: Quantitative analysis using CRT. We correlated district funding, property wealth, demographics, and geographic data. A key innovation was developing the Adapted Comparable Wage Index for Teachers (ACWIFT) to adjust revenues for geographic differences in labor costs, revealing the true purchasing power of allocated funds.
Key Findings: After cost-adjusting, the funding disparity was stark: a district with 1,000 Black and FRL students received, on average, $1.36 million less annually than a comparable district. This gap stemmed entirely from lower local property wealth, a direct legacy of discriminatory housing policies. Furthermore, districts serving Black students demonstrated higher "local fiscal effort" (taxing themselves more) yet still received less, debunking narratives about community priorities.

Caldwell, P., II, Richardson, J. T., Smart, R. E., & Polega, M. (2022). The intersectionality of educating Black students in Michigan: Public school finance, racial segregation, and housing policy. Journal of Education Human Resources, 40(4), 524–563. https://doi.org/10.3138/jehr-2021-0031

Phase 4: The Human Cost - The Impact on Human Resources (2023)

Study: "The Crisis of Michigan's Public School Funding and Its Influence on Human Resources Management" (Smart et al., 2023).
Focus: This study connected the financial inequities to their most critical real-world consequence: the ability of districts to recruit, retain, and compensate a qualified teaching force.
Methodology: Integrated CRT and CPA. We developed "Michigan Financial Health Indicators"—an indexing system grading districts (A-F) based on financial stability—and correlated these grades with funding levels and demographics.
Key Findings: A direct link was established between inequitable funding and a human resources crisis. Districts with high concentrations of Black and FRL students faced greater challenges in staffing, higher teacher turnover, and lower financial health scores (more likely to be in "Financial Early Warning" or "Watch"). This demonstrated a vicious cycle where inadequate funding compromised the most crucial in-school factor for student success: the teacher.

Smart, R. E., Caldwell, P., II, Richardson, J. T., & Sim, G. (2023). The crisis of Michigan's public school funding and its influence on human resources management. Journal of Education Human Resources, 41(3), 477–503. https://doi.org/10.3138/jehr-2021-0066

Phase 5: Reality vs. Perception - Do Leaders See the Problem?

Study: "The Crisis of Michigan's Public School Funding and Its Influence on Human Resources Management" (Smart et al., 2023).
Focus: This study connected the financial inequities to their most critical real-world consequence: the ability of districts to recruit, retain, and compensate a qualified teaching force.
Methodology: Integrated CRT and CPA. We developed "Michigan Financial Health Indicators"—an indexing system grading districts (A-F) based on financial stability—and correlated these grades with funding levels and demographics.
Key Findings: A direct link was established between inequitable funding and a human resources crisis. Districts with high concentrations of Black and FRL students faced greater challenges in staffing, higher teacher turnover, and lower financial health scores (more likely to be in "Financial Early Warning" or "Watch"). This demonstrated a vicious cycle where inadequate funding compromised the most crucial in-school factor for student success: the teacher.

Smart, R. E., & Caldwell, P., II. (Pending). Educational influencers perceptions of Michigan school funding equity.

Conclusion

This research agenda provides a comprehensive, multi-layered body of evidence demonstrating that Michigan's school finance system, despite race-neutral language, functions as an "inequity engine." It systematically disadvantages districts serving Black and low-income students through mechanisms tied to historical segregation and property wealth disparities. This structural inequity manifests not only in dollar amounts but also in diminished human capital, ultimately hindering the educational opportunities of Michigan's most vulnerable students. The work concludes by highlighting the critical need for systemic reform grounded in an honest acknowledgment of these deeply embedded inequities.