ERIC Number: ED398656
Record Type: Non-Journal
Publication Date: 1996-Mar
The Impact of Michigan's Finance Reform on Three Poor School Districts.
Sielke, Catherine C.
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 on three of its low-revenue school districts, each of which had received significant revenue increases for the 1994-95 school year. Methods included a review of 5 years of financial data and minutes of the districts' 1994-95 board meetings, and discussions with the superintendent and/or business administrator. The data indicate that finance reform in Michigan increased revenues for the school districts but did not resolve the equity issue. Increased dollars were accompanied by increased costs for school districts. New dollars were being used to cover the costs of nondiscretionary items and to recover losses of a rollback that forced districts to use fund equity rather than make massive cuts. New dollars were used for administration for only one district, which had been understaffed. The study concludes that finance reform has allowed them to maintain the status quo with only modest programmatic changes. (Contains 11 references.) (LMI)
Publication Type: Speeches/Meeting Papers; Reports - Research
Education Level: N/A
Authoring Institution: N/A
Identifiers - Location: Michigan