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This study investigates how Michigan school district leaders experience and implement the state’s tiered funding policy for multilingual learners classified as English learners (ML-ELs). Drawing on interviews with 17 district officials across 10 diverse districts, the research explores whether current funding mechanisms align with ML-EL needs and how local contexts shape implementation. Grounded in critical resource theory and education policy implementation theory, findings reveal widespread perceptions of underfunding, particularly in low-incidence districts lacking capacity, guidance, and oversight. In contrast, high-incidence districts demonstrate stronger infrastructure but remain concerned about funding volatility. The study identifies design limitations in tiered funding policies and calls for greater state-level support, stability, and clearer guidance to promote equity in ML-EL education.