Michigan Special Education Finance Reform Blueprint Legislative Report

December 10, 2025

Despite decades of effort from generations of families, educators, and policymakers, high-quality education largely is an unrealized promise for the hundreds of thousands of Michigan’s students with disabilities. Michigan’s special education system is underfunded, inequitable, and does not meet student needs. Without enduring reform, students with disabilities will continue to fall behind in academic progress, social development, and in access to postsecondary opportunities.

To address these systemic inequities, the Michigan Special Education Finance Reform Blueprint was created under Section 51h of the 2024 School Aid Budget. This initiative, mandated by the legislature and developed with extensive input from educators, families, administrators, advocates, and policy experts, the MI Blueprint outlines a student-centered, needs-based, and transparent funding system designed to ensure that every child with a disability in Michigan has the resources and support necessary to thrive.

Under the leadership of the Autism Alliance of Michigan, PSC provided project management and research support, conducting data collection to lay the groundwork for the final report. Our team also led the stakeholder engagement process, facilitating surveys and sessions to ensure the recommendations for special education finance reform were informed by diverse, real-world perspectives.

The final MI Blueprint report delivers a Michigan-made solution with a rigorous, equitable, and evidence-based roadmap for reform.

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A Student-Centered, Weighted Funding Model

The MI Blueprint proposes a four-tier weighted student funding (WSF) model that ties funding directly to student need rather than zip code or local wealth.

Key Features:

Tiered funding based on disability and service need: Supplemental to the foundation allowance, ranging from approximately $11,000 per student with lower support needs to
$39,000 for students with higher support needs.
High-cost fund (HCF): Covers 80 percent of expenses that exceed $57,615 per student, ensuring districts can provide for students with exceptionally high needs.
Equity across districts: Lower-wealth ISDs receive proportionally larger increases, reducing disparities caused by historic funding inequities.
Predictability and sustainability: Annual inflation adjustments and statutory review cycles ensure funding remains sufficient, accurate, and aligned with evidence-based best practices.