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Debate over Proposal A continues seven years later

School officials criticize lack of taxation power

Fri., September 21, 2001

In 1994, a Michigan ballot measure called "Proposal A" changed the source of school funding for districts throughout the state. What was once a local responsibility, based on property tax levies, became primarily a state responsibility, funded through a variety of state revenue sources including a 50 percent sales tax increase.

Before Proposal A, local school districts were responsible for approximately 68 percent of school funding. This method of funding was criticized for creating high property taxes and large per-student funding differentials between districts. Proposal A sought to reduce property taxes, reduce the need for local millage votes to provide money for education, increase the state share of total revenue for K-12 education, and provide a guaranteed minimum per-pupil level of funding, while reducing the gap between districts' per-pupil funding.

The measure achieved many of its goals. The change in method of school funding successfully narrowed the spending gap in many areas around the state, boosted funding for the poorest districts, and reduced property taxes. The state is now responsible for providing approximately 80 percent of school funding.

But some say the new school funding plan is leaving small districts behind and stifling local control of schools.

Proposal A does not allow local districts to ask voters for additional funds (millages) for operating purposes, with the exception of 39 high-spending districts. They can seek tax increases for capital expenditures such as facilities. If schools are losing enrollment, and therefore per-pupil funding, they must adjust their budgets; a difficult task for some districts.

Officials representing small schools with declining enrollments, particularly in the Upper Peninsula, say Proposal A has limited their ability to provide educational services, because those services don't lend themselves to the per-pupil model.

"You've got fixed overhead per class. It doesn't matter if you've got two kids or 30 kids," Rep. Ron Jelinek, R-Three Oaks, recently told The Detroit News. "You've got to heat that room. You've got to have a teacher."

Even in larger districts, complaints are rising over Proposal A. Districts losing students to charter schools or other public schools through the state's schools-of-choice program also lose the corresponding per-pupil funding, but they no longer have to spend money on students who no longer attend their schools.

Many districts, including Redford Union, Comstock Park, Grand Rapids, and Holland have made significant budget cuts, teacher layoffs, or cuts to extracurricular programs due to declining enrollments.

Holland Superintendent Marcia Bishop and others are urging the Legislature to provide extra money to districts that are losing students to schools of choice. "What we're faced with is reducing programs without reducing the quality of the education we offer," she recently told the Grand Rapids Press.

Some critics also say Proposal A has stifled local control of school districts, giving more decision-making and regulatory power to the state. Dependent on the state for the bulk of their funding, and without the ability to ask local voters for additional funds, districts are subject to the state's direction and control over school issues.

Despite complaints about Proposal A, overall funding for public schools has increased by more than 50 percent since 1994, more than double the rate of inflation.

Nevertheless, Proposal A has forced many districts to re-examine spending practices and look for ways to save money and shift more funds away from administrative expenses into the classroom.

One of the most effective methods for saving districts significant funds has been the privatization of school support services. School districts including Pontiac, Mt. Pleasant, and Detroit have saved millions of dollars by contracting out school services such as food, groundskeeping, janitorial, and computer services. By exercising these options, districts have been able to direct more money into the classroom.

The Mackinac Center for Public Policy recently offered to help Redford Union school district to avert a layoff of teachers through privatization. It guaranteed the district $350,000 in savings if the district would adopt its ideas for outsourcing and competitive bidding for non-classroom services. The Mackinac Center also offered to give the district up to $350,000 if the savings failed to materialize. Redford Union has yet to accept the offer.

It appears that the debate over Proposal A will continue and even intensify in the next legislative session. Recent legislation was introduced that would amend Michigan's school finance system and grant more taxation power to districts. What is not apparent is whether Michigan citizens are willing to keep the sales tax increase and accept higher property taxes as a result.

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User Comments
Since 2009, the EFM was allocated $500.5 million in stimulus funds. They tore down a High School and built a multi-million dollar Cass Tech, the structure alone costing $94 million. $45 million was spent for a safety program. $41 million was used to purchase a reading series not needed, $50 million was used to buy all new computers for staff and students. $1.6 million was used for administrative travel and all leadership positions recieved significant raises. The EFM in the first year gave himself a $86,000 raise, including resources from philanthropist contributions, his salalry was somewhere beyond $450,000. This is a leadership who spent more to rent and eventually buy five floors of the Fisher Bldg for office space, paying more than the owner paid for the entire building one year earlier, adorned with rare and expensive artifacts.

Teachers have had pay freezes since 2001, they have had pay cuts, benefit cuts and an additional $500.00 has been deducted from their monothly pay for two years and counting.

Oh the money is in the schools alright, it just doesn't make it to the classroom. >>
except/accept??????? per pupil funding. If you're a teacher, I hope this was a typo. >>
Yes, I am agree with you. Educational equity argument can help, But also cause blowback credits are more popular than vouchers.

Thanks
_______
Daniel

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Yes, I am agree with you. Educational equity argument can help, But also cause blowback credits are more popular than vouchers.

Thanks
_______
Daniel

<a href=“http://www.legalx.net”>Find Attorney</a> >>
Your comment "No one is that poor that they cant provide a boloney sandwich..." was the definition of "out-of-touch". First, I agree whole-heartedly that parents matter. I would love to see parents drive or car pool kids to school. Even provide them with food, too. However, sadly it is unrealistic. The economy is so weak that everything is shrinking. If we eliminate transportation and food for students we may find many families electing not to send the child to school at all...then what?

Please respond! >>
This agreement has saved the districts money yet we are chastised for it despite the fact the wording at issue was known to be invalid and unenforceable by either side. I applaud our effort and believe this suit is frivolous. http://www.godfrey-lee.org/education/components/board/default.php?sectiondetailid=3458&threadid=554 >>
education is an all around development for a child
he should be mentally and physically strong


<a href="http://rescueyoursavings.com" rel="dofollow">Savings</a> >>
education is an all around development for a child
he should be mentally and physically strong >>
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Public servants like Presidents, Vice-Presidents, Senators, Congressmen, Judges, Secretaries of Various Departments and the like should be first to be compensated for performance.
The idea that the playing field for students is level everywhere is as Quixotic as thinking all politicians are honest and competent.
There are neighborhoods where only Portugese or gang sign language is spoken, where the parents both work two jobs to pay rent, where getting to school and back is more dangerous than Iraq and Afghanastan.
This Secretary of Education has to remove the silver spoon, roll up his sleeves and take his superior intellect attitude into the trenches and show the poor slobs that are taking their teachers jobs for granted how he would do it. Just because his mommy used to help out in Chicago doesn't give him the Congression Medal of Honor. Actually he's a stuffed shirt pretending to know it all.
How much do you want to bet that he wouldn't attempt entering these neighborhoods let alone these schools without security. >>