Michigan didn't make it to the final round in the competition for up to $500 million in federal school reform money. That's despite a school reform package approved by state lawmakers in December.

Those reforms include making it easier for charter schools to compete with traditional public schools that have high dropout rates or low test scores. Another part of the reform plan will evaluate teachers based on the performance of their students.

Representative Tim Melton, the chairman of the state House Education Committee, says the reforms are still worthwhile even though Michigan didn't get any of the federal funds. But unions representing teachers say Michigan will have to carry out its school improvement plans without the money to fund them. The Michigan Education Association and the Michigan Federation of Teachers say the state's new education laws are too harsh and chip away at collective bargaining rights.

There will be a second round of applications for federal "Race to the Top" money in June.