This research investigates Michigan’s system for funding public schools, particularly for Black students, via critical race theory, focusing on structural racism and discrimination embedded in education finance laws, housing policies, and residential and educational segregation. Our research questions are (i) How does district per-pupil funding in Michigan vary by race and income? (ii) Does variation by race and income depend on whether funding is from state or local sources? (iii) How does district property wealth in Michigan vary by race and income? and (iv) How does the proportion of property wealth Michigan districts commit to local education funding vary by race and income? We find that the average Black student receiving free or reduced-price lunch (FRL) receives $411 less per pupil than the average White student receiving FRL and $783 less per pupil than the average White student who does not receive FRL. These disparities stem entirely from differences in locally sourced district revenues that are the result of vast differences in property wealth. On average, a one-percentage-point increase in a district’s proportion of Black students receiving FRL is associated with a $2,354 decrease in taxable value of property per pupil, implying that a district with all Black students receiving FRL would have $235,400 less taxable value per pupil than a district with no Black students receiving FRL. Through its continued reliance on local property taxation, the school finance system in Michigan is just another example of how laws and policies reinforce structural racism and discrimination against Black students. This study can discern a self-reinforcing system that relegates Blacks to a subordinate socioeconomic status regarding school finance, segregation and housing policy, and discrimination.
