School funding in Michigan is inadequate and inequitable. Michigan does not provide a sufficient base per-pupil amount, nor does the state properly address the cost of educating students with additional needs, especially students with disabilities, English learners, and low-income students. It would cost $4.5 billion to bring districts to funding…

This Policy Snapshot provides examples of legislation in 13 states that have proposed or enacted legislation addressing the following principles of K-12 funding models: attendance and enrollment, revenue, and equity-based initiatives. All 50 states allocate K-12 funding in different ways. Refer to this two-page reference guide, which defines and…

Like other states, Michigan has implemented a number of policies to change governance and administrative arrangements in local school districts deem to be in financial emergency. This paper examines two questions: (1) Which districts get into financial trouble and why?; and (2) Among fiscally distressed districts, are there significant differences…

We consider issues of equality and efficiency in two different school funding systems--a state-level system in Michigan and a foundation system in Ohio. Unlike Ohio, the Michigan system restricts districts from generating property or income tax revenue to fund operating expenditures. In both states, districts fund capital expenditures with local…

In 1994, Michigan voters approved a ballot initiative that transferred the power in Michigan's education system from local communities to the state. Proposal A succeeded in slowing the growth of local property taxes and narrowing the gap between the richest and poorest districts in Michigan. However, due to a decade of sluggish economic growth,…

In the passionate debates over providing equal educational opportunity for all children, it's frequently argued that large financial inequities create challenges for many public schools, particularly those in lower-income urban areas. This study compares the revenues and operating expenditures of Michigan's urban, suburban, town and rural school…

This paper, one of three related documents, explains a model for school finance in Michigan. First, it analyzes where school districts get their money and how they spend it. Next, it details a financial model that identifies the factors related to staff adequacy levels, estimates the strength of those factors, offers ideas for the components of a…

This paper, one of three related documents, examines the distributions of general revenues and instructional expenditures across school districts in Michigan. It discusses the equal yield formula for the funding of public schools and examines how the formula has accomplished its objectives. The data indicate success in reducing the effects of…

In 1994, Michigan voters amended the state constitution to reduce schools' reliance on local property taxes for financial support. School districts were also divided into three funding tiers that were determined by their 1993-94 state and local revenues. This paper presents findings of a study that examined the impact of Michigan's finance reform…

This handbook is one in a series prepared for use at workshops designed to help teachers, administrators, and legislators understand and deal with the intricacies of school finance equalization plans in their states. Michigan's education finance plan is discussed in this particular book. Chapter 1 discusses how Michigan's plan undertakes its…

Retrenchment and reallocation processes at five public colleges and universities were studied: the University of Washington; University of Idaho; University of Michigan, Ann Arbor; Michigan State University; and Seattle Community College District. After an overview of institutional approaches to retrenchment and reallocation, the five individual…

Voters in the State of Michigan reformed K-12 school financing significantly in 1994. The reform largely removed local government from playing a role in the determination of school finance and lodged this authority mainly with state government. In this article we examine the long-term impacts of the reform legislation. We find that although the…

The system that finances Michigan's schools from kindergarten through 12th grade is a perennial topic of conversation among policymakers, parents, taxpayers and voters. A constructive discussion of this issue, however, requires a sound knowledge of the financial workings of Michigan's elementary and secondary school system. This knowledge is…

Based on data submitted by Michigan's 28 community colleges for 1996-97, this report describes instruction, personnel revenues, and expenditures at the state's colleges and reviews the state funding formula. Section 1 provides historical data from 1986 to 1998 on state appropriations, property tax revenue, tuition and fee revenues, state equalized…

Unlike many other states, Michigan's school-finance reform was triggered not by a lawsuit but by legislative action that eliminated the property tax as a revenue source for public schools. Changes included an increase in the sales tax from 4 to 6 cents and a move to a foundation grant formula, which included a state foundation-allowance target for…