Thursday, October 21, 2010

A Question From Monday About Proposal A/School Aid Fund “Surplus”

My understanding is that Proposal A was passed in 1994 for the purpose of providing property tax relief to Michigan residents and to try to make education funding more equitable across school districts by having the State of Michigan collect statewide taxes and distribute the money to school districts on a per pupil funding basis which is supposed to level the playing field.

The taxes that are collected for schools is placed in the budget in the bucket called the School Aid Fund, which was supposed to be only used for K-12 education.

The estimation for the taxes for the School Aid Fund were made last January and they were dire due to the economy. In May, the taxes collected were $200 million mmore than anticipated. The money was taken out of the School Aid Fund and used elsewhere in the budget. I contacted my legislators to tell them that this was unfair and illegal under Proposal A. What would you have done?