LANSING (WTVB) - Michigan has cut K-12 education funding 8.8 percent since 2008 -- a deeper cut than in 28 other states, according to a new report from the Washington, D.C.-based Center on Budget and Policy Priorities.  “Our ability to educate Michigan's children has been undermined by these cuts and there will be consequences for our economy,” said Gilda Jacobs, president and CEO of the Michigan League for Human Services (MLHS). “We need good schools and an educated workforce to foster economic growth, and we are shooting ourselves in the foot by reducing our investment in education.”  Michigan cut $542 per pupil since 2008, based on unadjusted numbers. Alabama cut the most with $1,318 per student and North Dakota increased spending the most with $1,133 per student.  However, other states have chopped education funding more. Seventeen states have cut per-student funding by more than 10 percent from 2008 levels. Three states — Arizona, Alabama, and Oklahoma — each have whacked K-12 more than 20 percent.  Only 13 states increased education funding during that time period. North Dakota upped its spending the most -- 28.2 percent.  The report said that more than half of states, including Michigan, cut funding from Fiscal Year (FY) 2012 to FY '13. Michigan's cut was only .1 percent or $6 per student -- the lowest of the bunch. Twenty states increased funding over FY 2012.  The recession caused state revenue to decline sharply, MLHS said. But the state also cut services, including education, and the federal government didn't extend emergency financial aid to states after the stimulus ended.  The report said that cuts have hurt the state's economy in the short- and long-term.  “Across much of the country, kids are going back to school to find more crowded classrooms, and - in some cases -- shorter school weeks,” said Phil Oliff, policy analyst at the Center on Budget and Policy Priorities and author of the report. “That's no way to develop our future workforce and build a strong economy.”