Michigan's public higher education institutions have seen decades of decline in per-student funding, leaving students to face costs that are simply out of reach. The state, for the most part, relies on institutions to provide aid to bring down costs for students at four-year institutions, rather than providing students with aid directly via state grants--but Michigan funds its institutions inequitably, and requires little in the way of accountability for how they disburse their institutional aid. Although, the state's community colleges and four-year institutions alike have gotten more expensive, four-year degree programs in particular are unaffordable compared to those of other states in the region. These trends have put enrolling in higher education out of reach for many students and make completing a degree more difficult. Some of these challenges require both significant new investment and restructuring of the state's financing system--changes that take time, revenue, and the right political window. This report summarizes core challenges, provides a pathway for future structural changes to the state's financing of higher education, and suggests concrete immediate steps that policymakers can take to move toward that vision.