Albion — Over a decade ago, Albion closed down its high school.
Faced with a staggering $1.1 million deficit, declining enrollment, and years of academic struggles, the local school board voted in 2013 to dissolve Albion High School and consolidate it with another district. Though driven by necessity, it has left a lasting mark on this small community in mid-Michigan.
In the years that followed, Albion’s remaining K-8 student enrollment declined substantially, eventually prompting residents to dissolve the district entirely in 2016.
Today, the town of 8,000 buses its students to Marshall, a nearby town smaller than Albion.
This decision shifted community life. For over 125 years, Albion students attended high school at the historic Washington Gardner building. Now, Friday night games, band performances, and school traditions take place miles away.
While consolidation sounds drastic, Albion is no longer unique. In recent years, more Michigan districts are doing the same. West Michigan schools have been especially hard hit. Earlier this year, Grand Haven Public Schools became one of the latest districts to announce a consolidation of elementary schools.
“If we do nothing, we will not be able to keep our doors open in two years,” said Kristin Perkowski, superintendent of Grand Haven Area Public Schools. “That’s the current state with 10 years of loss in students.”
Across the state, many schools are confronting the same pressures as Albion and Grand Haven. Districts are navigating ballooning debt, rising operational costs, and fewer students in their classrooms, all while Michigan spends more per student than ever before.
Michigan had 1.4 million public school students in the 2019–2020 school year. By 2024–2025, enrollment was nearly 5% lower. This trend predates Covid-19 though, with one report finding that enrollment is down 17% since 2002.
And, even among enrolled students, attendance is faltering.
“Far too many students are chronically absent,” said State Superintendent Dr. Michael F. Rice in 2024, when a report from the Michigan Department of Education found that 30% of students were chronically absent. That’s up 10% from the 2019-2020 school year.
These challenges have dragged down Michigan’s national standing. The Annie E. Casey Foundation’s 36th Kids Count Data Book ranked Michigan’s K–12 system 44th in the nation this year, down three spots from 2024.
Academic concerns aren’t Michigan’s only issue. Financial burdens are also mounting, as previously reported by the Michigan Enjoyer.
Labeled a “death spiral of debt,” a recent report from Reason Foundation found that long-term liabilities for school districts have soared. Of the $113.1 billion in long-term liabilities held by Michigan governments, school districts account for $59.6 billion. Nearly 60% of that is tied to pensions.
Another Reason report also found that Michigan now spends more than $6,200 per student on pension debt and employee benefits alone. The state was just one of 13 states where employee benefit costs exceeded $5,000 per student. Meanwhile, Michigan’s average teacher salary has fallen 21.8% from 2002 to 2022 when adjusted for inflation.
This debt crisis is not new. Michigan recently earned a “C” fiscal ranking from Truth in Accounting, and, as federal Covid-era funding dries up, school districts will face even tougher decisions.
Long-term debts like unfunded pensions can mean reduced retirement benefits or higher required contributions from school employees and residents. This creates real-world consequences for many communities already strapped for resources.
Yet, Michigan’s public school establishment continues to call for more funding, arguing that districts need additional resources to support students. Others counter that Michigan has increased school funding year after year, even as outcomes have declined.
In October, the Michigan Legislature successfully voted for a record $10,050 in per-pupil K-12 funding—a 4.6% increase from last year. The “Invest in MI Kids” ballot initiative, now gathering signatures for 2026, proposes a new 5% tax surcharge on high earners with the promise of raising up to $1 billion annually for public schools.
Supporters say schools need that funding, while opponents argue it’s a “dangerous” tax increase that could drive residents and businesses elsewhere. Yet, even with historic funding levels, the rapidly growing financial pressures on school districts are unlikely to ease.
Albion’s consolidation may soon become more common, and it should. In Albion’s case, the move away ultimately improved student achievement, despite early worries from parents.
Today, many districts face the same mix of declining enrollment, rising costs, and falling academic performance.
Whether that future can be avoided will depend on how Michigan and local communities choose to navigate educational and financial challenges in the years ahead.
Elyse Apel, a graduate of Hillsdale College, is a reporter for The Center Square covering Colorado and Michigan. Her work has appeared in a range of national outlets, including the Washington Examiner, The American Spectator, and The Daily Wire.
