Wednesday, February 6, 2019

Michigan ranks dead last among states in total education revenue growth




Michigan’s current school -funding system was established a quarter century ago with the passage of a major reform commonly known as Proposal  A. The new system accomplished what it set out to do —it lowered property taxes and narrowed, but did not eliminate, revenue inequalities  across districts. Proposal A also sharply restricted the ability of  Michigan citizens to determine the level of funding for their local public schools.  

Although the state controls most operating revenue available to Michigan’s public schools, it has never  calibrated  funding levels to  the resources needed  for students to  meet outcome standards,  even as the federal No Child Left Behind act and the Michigan Merit Curriculum dramatically increased achievement  expectations. Michigan’s public school system is at a crossroads. It is not performing well.  In contrast to 1993, Michigan’s tax rates and student performance now fall well below the national  average . …

After adjusting for inflation, total K -12 education funding declined by  30 percent between 200 2 and 2015.  Seventy -four percent of th is decline was due to declining state support for schools. Per -pupil revenue declined by 22 percent during this same period.
Michigan ranks dead last among states in total education revenue growth since the passage of Proposal A. After adjusting for inflation, Michigan’s education revenue in 2015 was only 82 percent of the state’s 1995 revenue. No other state is close to a Michigan School Finance at the Crossroads decline of this magnitude. In 48 states, 2015 education revenue was higher, often much higher, than in 1995. M chigan’s real per -pupil revenues declined by 15 percent over th is same period , ranking  48 th among the 50 states. This represents a  net  decline of over $1.2 billion annually in state revenues devoted to K -12 education between 1995 and 2015 (more than  $850 per pupil ), or a decline of $1.6 billion w hen adjusted for inflation.
If Michigan devoted the same fraction of its economy to state and local taxes as the national average, it would generate an additional $3 billion in revenues per year, an amount nearly sufficient to lift  school funding to the level that prevailed in 1994. Among states, Michigan’s funding of special education services is unusually stingy, and this hurt s both special education and regular education students.
Federal law grants students with disabilities the right to a free and appropriate education, but allows states to decide how to pay for those services. Michigan has placed most of the funding respons ibility on  the local and county levels. Proposal A, however, precludes local districts from levying taxes to cover additional special education costs  and intermediate school districts  have very unequal ability to raise revenues for special education services.
Under Michigan’s funding arrangements, students with disabilities almost always represent a financial loss to districts and charter schools, and the more serious a student’s disabilities, the larger the financial loss.
Because revenues from other levels of government fall short of required special education costs, Michigan districts on average devote over $500 per student of regular education funds to pay for special education services. In some districts this diversion of funds exceeds $1, 200 per pupil. Consequently, the state’s inequitable and inadequate special education funding impacts  both special education and regular education students. Michigan’s approach to school facility finance guarantees unequal opportunities for  students and unequal burde ns for taxpayers.  
Michigan is one of 13 states that provide no state aid for facilities. The state’s only role has been to lower local district borrowing costs under certain circumstances through the state School Bond Loan Fund. In recent years lawmakers have curtailed even this meager state supports.

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