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Michigan School Finance at the Crossroads

A Quarter Century of State Control


David Arsen, Tanner Delpier, and Jesse Nagel
Twenty-five years ago, the passage of Proposal A shifted control of funding for Michigan’s public schools from local
districts to the state. This report provides an accessible primer on how Michigan schools are funded. It then
analyzes trends in funding over the last quarter century, compares Michigan’s policies to those of other states,
identifies a series of key school finance problems, and advances a comprehensive set of policy recommendations.

Compared to other Proficiency Michigan’s schools need a coherent


states, Michigan is
bottom of the pack
50 th growth
(2003-2015)
and supportive policy framework
as a foundation for student learning

The state
Real funding

50th continued to fall


due to declining
tax effort even
underfunds special
education forcing
districts to redirect
$500 per general
50th out of the 50 after the end of Facilities funding is
education student
states in school the Great Funding for at-risk unfair for both
to make up the
funding growth Recession students has fallen students and tax
difference
since 1995 by 60% per-pupil payers

$26
Michigan Education Revenue

Possible Revenue
$24 Revenue if Michigan maintained
Billion constant 2007 level tax effort
Billions of 2017 dollars

$22 Adequate Revenue


Revenue necessary to meet the
Billion adequacy study’s recommendations
Drop in
funding from
Actual Revenue
2002 to 2015 $18 The actual revenue generated for
Billion education from 2000 to 2015

2000 2005 2010 2015

Getting Michigan should


Adequate,
equitable and
back on Michigan’s Effective follow the
efficient school
experience shows accountability and guidance of the
the road to funding is an
success what happens
when schools are
choice policies
require adequate
landmark 2018
Adequacy study
essential first step
to improving
overburdened and funding and Crossroads
student learning
underfunded report
and is well within
reach
https://education.msu.edu/ed-policy-phd/forum/

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