Creating a Better Funding System for Michigan.

In 1994, Michigan voters approved a ballot initiative that transferred the power in Michigan’s education system from local communities to the state. Proposal A succeeded in slowing the growth of local property taxes and narrowing the gap between the richest and poorest districts in Michigan. However, due to a decade of sluggish economic growth, revenue available to schools has deteriorated, placing strain on local school districts facing declining enrollment and expanded school choice. This commentary considers Michigan’s current educational funding system, explores two recently released school finance reports, and offers recommendations for funding reform. The history of Michigan’s Proposal A is explored along with the challenge of providing additional revenues in an anti-tax climate. The analysis and recommendations are relevant to states facing similar problems with regard to fostering funding adequacy and equity in public education.