When it comes to school funding, Intermediate School Districts (ISDs) operate very differently from local districts. In this episode of the UnPacked Podcast, host Micki O’Neil talks with Jason Mellema, Superintendent of Ingham ISD, about where ISD dollars come from, why many grants are “restricted,” and how funding realities affect services for students across the region.
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ISD Funding 101
Unlike local districts, ISDs are not primarily funded per pupil. Most ISD revenue comes from voter-approved millages paid by taxpayers across the service area, typically in three buckets:
General Education
Special Education
Career & Technical Education (CTE)
ISDs also rely on state and federal grants, such as:
IDEA funds for special education
Perkins funds for CTE
State line-item grants (e.g., 31n for mental-health services)
What “Restricted” Really Means
Grant dollars must be spent exactly where they’re allocated. A few examples from the episode:
GSRP (free pre-K) funds can’t be shifted to buy welding equipment for CTE.
Perkins (CTE) dollars can’t be used to install a barrier-free playground at a center-based school.
31n mental-health funds support counselors and social workers who provide school-based triage where needs exceed provider capacity.
This guardrail ensures transparency—but it also means leaders can’t “plug holes” in one program with funds from another.
Special Education: Important, Complex, and Often Underfunded
Special education is both mission-critical and complex to fund. According to the episode, special education is not fully funded at the ISD level; local districts often backfill with general education dollars to meet legal requirements.
ISD leaders also seek Medicaid reimbursements for eligible services—covering supports like occupational/physical therapy, speech-language services, psychological services, and specialized equipment. With thousands of IEPs in the region and a majority of those students Medicaid-eligible, these reimbursements are a key piece of the puzzle.
Local Districts: The Per-Pupil Model
By contrast, local districts receive most of their dollars via the foundation allowance (per-pupil funding). In the episode, Mellema notes the current figure is about $9,600 per full-time equivalent (FTE) student, plus targeted state/federal grants (Title I, II, III, etc.).
Practically speaking: local districts’ budgets flow into a single large bucket; ISD dollars come from multiple, highly targeted streams.
Why the Reporting Load Feels Heavy
Every grant requires data, documentation, and reporting to show funds were used as intended—what was purchased, which students were served, and what outcomes were achieved. That accountability work is vital for advocacy (e.g., demonstrating that 31n counselors served 1,800+ students over three years) and for sustaining programs families rely on.
The Bottom Line
ISDs = millages + restricted grants that fund regional services (special ed, CTE, early childhood, mental health).
Local districts = per-pupil funding plus smaller grants.
Restricted funding promotes transparency, but can’t be repurposed—which is why advocacy, reimbursements, and community-supported millages matter so much.
Learn More
Explore ISD services and funding resources at inghamisd.org, and find more school success stories at BackPackPress.org.
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