ERIC Number: ED369136
Record Type: RIE
Publication Date: 1994
Reference Count: N/A
Funding Crisis Forces Action in Michigan. Policy Seminars.
Fulford, Nancy; Kroeger, Marianne
In 1993 the Michigan Legislature voted to eliminate the property tax as a source of school revenue, cutting the educational budget by $6.3 billion. An alternative funding source was not identified. Proponents of the bill say it will move the Michigan educational system into the 21st century; opponents criticize the bill as being a political campaign. Michigan's education history shows attempts at restructuring educational financing; between 1972 and 1992 voters had 11 chances to vote on finance reform programs, all of which were defeated. With Michigan's educational system facing a financial crisis, a special summit was held in September of 1993 to address the problem. James Guthrie, John Augenblick, and Allan Odden spoke at the summit. Guthrie believes finance reform must occur along with governance changes. Augenblick sees the property tax cut as a move toward creating equity for taxpayers; however, the cut possibly creates a pupil equity problem. Odden promotes cutting the property tax, but raising the sales tax to replace the lost revenue. In March 1994 Michigan will vote on a rise in sales tax from 4 to 6 percent; if it is defeated, the income tax will be raised from approximately 4.5 percent to 6 percent. (KDP)
Descriptors: Change Agents, Economic Change, Elementary Secondary Education, Finance Reform, Financial Policy, Financial Problems, Financial Support, Fund Raising, Property Taxes, School District Wealth, Tax Allocation
North Central Regional Educational Laboratory, 1900 Spring Road, Suite 300, Oak Brook, IL 60521-1480.
Publication Type: Opinion Papers; Reports - Descriptive
Education Level: N/A
Sponsor: Office of Educational Research and Improvement (ED), Washington, DC.
Authoring Institution: North Central Regional Educational Lab., Oak Brook, IL.