Funded: Charters

A Detailed Look at Each State's Charter School Funding Policies

Below, see summaries of the state’s education funding policy in each issue area. Click the Expand icon next to any summary to see more detail, if available, about that state’s policy regarding that issue area. Click the Citation icon
next to any summary to see the sources of the information regarding that issue area.
Michigan
Funding Basics
Authorizer

Charter funding policies and reporting practices within each state may vary depending on the entity that authorized the charter school. Charter schools in Michigan may be authorized by local school districts and other entities, such as intermediate school districts, community colleges, and state public universities.

References:
“Charter Schools: What organizations may authorize charter schools, and is there a statewide authorizing body?” Education Commission of the States, 50-State Comparison, January 2018. 
Funding Formula

Funding for charter schools in Michigan is calculated based on a formula distinct from the one used to calculate funding for traditional public schools.

Charter schools in Michigan receive either the base per student funding equal to that of the district where the school is located or the state maximum charter school allocation, whichever is less. Virtual charter schools receive the base per student funding equal to that of the district that authorized the school or the state maximum, whichever is less. The state maximum charter school allocation is calculated each year. For 2018-2019, the maximum charter school allocation is $7,871.

However, like traditional public schools, charter schools are eligible for increased funding for students with particular needs, such as English-language learners and students from low-income households.

References:
Kathryn Summers, Associate Director, Senate Fiscal Agency, Michigan Senate, “The Basics of School Funding” (Presentation, July 2017),
Mich. Comp. Laws Ann. § 388.1620 (Lexis 2019)
Mich. Comp. Laws Ann. § 388.1631a (Lexis 2019)
Mich. Comp. Laws Ann. § 388.1641 (Lexis 2019)
Funding Distribution
Funding Distribution

Charter schools in Michigan receive all funding directly from the state.

References:
Mich. Comp. Laws Ann. § 388.1620 (Lexis 2019)
pers. comm. Christopher May, Michigan Department of Education, email, September 28, 2018.
Withholdings

Charter schools in Michigan will have a share of their funding withheld, with the maximum set by state law.

Entities that authorize charter schools, which include local school districts, intermediate school districts, community colleges, and state public universities, may withhold up to 3% of charter funding for oversight costs.

References:
Mich. Comp. Laws Ann. § 380.502 (Lexis 2019)
Local Taxes

Charter schools in Michigan do not receive a share of local tax revenue.

References:
Mich. Comp. Laws Ann. § 388.1620
pers. comm. Christopher May, Michigan Department of Education, email, September 28, 2018.
Data and Reporting
Legal Status

Charter schools in Michigan constitute their own local education agencies.

References:
pers. comm. Christopher May, Michigan Department of Education, email, October 1, 2018.
Student Count

Charter school students in Michigan are counted as students of the charter they attend for state reporting purposes.

References:
pers. comm. Christopher May, Michigan Department of Education, email, October 15, 2018
Funding

State funding for charter schools in Michigan is reported separately from state funding for any district.

References:
pers. comm. Christopher May, Michigan Department of Education, email, October 15, 2018.
Expenditures

Charter school expenditures in Michigan are reported separately from expenditures of any school district.

References:
pers. comm. Christopher May, Michigan Department of Education, email, October 15, 2018.