ERIC Number: ED402690
Record Type: Non-Journal
Publication Date: 1996-Oct
Reference Count: N/A
Re-inventing Education: Transforming Financial Support for Michigan Schools.
Sielke, Catherine C.
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 lower revenue districts. This paper provides a brief history of the last 25 years of finance reform in Michigan and then examines the short-term effects on revenues and expenditures of local school districts. Methodology involved analysis of 5 years of revenue and expenditure data (1990/91-1994/95) from the Michigan Department of Education for all school districts. Although the wealthier districts now rely more heavily on state funding, they still receive a substantial number of local dollars generated by the 18-mill levy on nonhomestead property and hold-harmless mills. The data also show that there is greater horizontal equity in terms of dollars per pupil going to the school districts. Data show that, after the reform, districts spent more for employee benefits and less for purchased services and instructional supplies. Questions remain about the stability of the new funding sources and the ability of the state to fully fund schools in the future. (Contains 4 tables and 12 references.) (LMI)
Descriptors: Court Litigation, Educational Equity (Finance), Educational Finance, Elementary Secondary Education, Equalization Aid, Expenditure per Student, Finance Reform, Full State Funding, Income, Politics of Education, Property Taxes, Resource Allocation, School District Spending, State Aid, State Legislation
Publication Type: Speeches/Meeting Papers; Reports - Research
Education Level: N/A
Authoring Institution: N/A
Identifiers - Location: Michigan