Michigan notably does not fund schools through homeowner property taxes. I suspect that's probably the difference here and a reason we shouldn't use it as a representative example.
It depends on the state. In Texas, property taxes from wealthier districts are redirected to poorer districts to ensure more equitable funding (search for "texas robin hood").
The result is that most public schools are funded about the same regardless of where they're located.
The paper gives an overview of more recent research mostly using quasi-experiments. Before 2000 or even 2010 just doing some linear regressions was more common. Anyway my view is similar to Hanushek in short/medium terms. I do believe long term the pay of teachers, and therefore extra spending, is an important factor in keeping teaching prestigious compared to other jobs. In the US partly because of its strong private sector this is a lot more difficult/failed, I'm not sure if it's possible to fix since spending is only one part of it.
Regardless, I'd think that a study trying to find a correlation among practice, funding, and measurement would need at least a generation (~thirty years yea?) of results to show meaning