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Numerous U.P. school districts decline state educational funding due to legal concerns

by Andrew Hansz
January 8, 2026 - Updated on January 12, 2026
A A

MARQUETTE. Mich. (WZMQ) – After a late state budget, a large number of Michigan school districts have chosen to decline this fiscal year’s ‘Michigan School Aid’ funding. This includes a majority of school districts within Marquette-Alger Regional Educational Service Agency (MARESA).

WZMQ 19 spoke with MARESA Superintendent Gregory Nyen about the decision.

“This language in the budget could have been avoided, and this is a really unnecessary burden that we’re having to deal with right now,” he said.

11 out of 13 of MARESA’s school districts recently made the decision to decline, among what Nyen explains as roughly 80% of school districts in the state. MARESA says this follows a careful review of the requirements added to Section 31aa of the 2026 fiscal year budget.

In order to accept these funds, the state would require school districts to waive confidential attorney-client privileges in a case of a ‘mass casualty event.’ This would open the doors for state officials to form an investigation into a school who has experienced a tragic event, bringing unintended legal consequences and undermining local decision making.

“In the event of mass casualty event, it would necessitate all members who are involved, whether they’re administrators, teachers, paraprofessionals, bus drivers, board members, all would require their own legal counsel,” he explained. “Legal counsel is a necessary thing for school districts, but we try to control that cost as much as possible, and this would essentially uncap those costs.”

In a press release sent out on December 31 by MARESA, they explain the key driving concerns that were considered in the decision.

Undefined Terms: The legislation provides no clear definition of “mass
casualty event,” creating uncertainty about what circumstances could
trigger a state investigation.

Legal and Liability Risks: Participation could compromise
governmental immunity or expose districts and employees to
unintended legal consequences. The language may also be
construed as a waiver extending beyond a single fiscal year.

Shift from Prevention: The new language focuses on response after a
tragedy rather than supporting the prevention efforts, mental health
services, and early intervention programs the funding was originally
designed to support.

Loss of Local Control: Section 31aa was established to provide
flexible, locally driven funding. The new provisions undermine local
decision-making authority.

Nyen says the many districts across the state who are now in the same boat will have to adjust within themselves, while continuing to receive funding from local and alternative sources.

For questions regarding individual district decisions, MARESA requests contacting your local school district directly.

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