News Photo by Reagan Voetberg Students work on schoolwork at Alpena High School on Tuesday. Schools and local governments could see increased funding if Gov. Gretchen Whitmer’s proposed budget passes.

ALPENA — Gov. Gretchen Whitmer’s proposed $83.5 billion 2025-26 budget may, if passed by the state legislature, increase funding for schools and local governments.

However, local school and municipal leaders say the proposed increase in revenue may not offer much financial relief because of the increased expenses they face from inflation.

In her proposed budget, Whitmer asks the legislature to allocate $515 million to increase the amount of money schools are paid per student. This is an increase of $392 per student, bringing the total per student up to $10,000 this upcoming budget year.

The state pays school districts money per student based on their blended headcount, which happens several times a year.

Alpena Public School Superintendent Dave Rabbideau said the state revenue allocated per pupil helps the school fund staffing costs, building maintenance, and a host of other things. He said an increase from the state is appreciated and welcome, but it still isn’t enough to make up for the rising costs all of the schools in Michigan face.

Rabbideau said over the years before and after the COVID-19 pandemic, the state’s allocation for students has increased. But, he said, it still isn’t enough to keep pace with rising costs.

“We certainly are getting more dollars from the count but when you look at inflation over the last 10 years, we’re still underfunded,” he said. “I mean, a dollar just doesn’t go as far as it used to.”

In Michigan, the state shares a portion of its revenue collected from the 6% sales tax with local units of government.

Revenue sharing was promised to local communities in the Michigan Constitution to help pay for core government services such as police protection, fire services, roads, water, sewer, and garbage collection services.

Most municipalities depend on their state revenue sharing to keep critical services solvent and to shore up budgets that are often in the red.

Whitmer proposed an increase in revenue sharing, which would be welcome news for local municipal governments.

Alpena County Administrator Jesse Osmer said in 2024, the county received $871,931 in state revenue sharing and this year it is slated to receive $963,025. In the governor’s proposal, it could increase to $997,902.

Osmer added he hoped the legislature would create a trust fund for revenue sharing money.

A trust fund would dedicate a portion of general sales tax revenue to a restricted fund to distribute those resources to cities, villages, townships, and counties.

“It’s always good to see Lansing sending more of our tax dollars back home where they’ll have a larger impact through local investment rather than being spent on pet-projects in faraway cities,” Osmer said. “While I greatly appreciate Governor Whitmer including this increase in her budget recommendation, I still hope Michigan pursues the creation of a revenue sharing trust fund. This sort of a fund would both safeguard those committed dollars, while also putting counties in a better position to plan for the future.”

Other counties in Northeast Michigan may see a slight bump in their state revenue if the legislature signs off on Whitmer’s recommendation.

Alcona County is slated to receive $318,671, Montmorency County $286,930, and Presque Isle County $415,568.

Whitmer’s proposed budget is just that, a proposal, and it is likely her requests will be argued and debated in the state House and Senate, which will likely lead to changes. The budget needs to be adopted by Oct. 1 and runs until Sept. 30.

Steve Schulwitz can be reached at 989-358-5689 or sschulwitz@TheAlpenaNews.com. Follow him on X @ss_alpenanews.com.