Michigan’s school-financing woes first drew national attention a year ago, when Kalkaska, a rural district in the northern part of the state, closed its schools three months early because voters refused to raise taxes. Since then, educators and taxpayers’ groups have argued over the best way to finance schools. Many voters objected to regular property-tax hikes when the quality of education appeared to be declining. Critics of the sales-tax increase said it left schools vulnerable in bad economic times. Gov. John Engler argued that a sales tax was the fairest way to fund schools because everyone, not just property owners, has to pay. Under the new financing system, schools will also get some money from other taxes, including property taxes, real-estate-transfer taxes and even cigarette taxes.
Aside from capping the property-tax portion of school financing, the new plan could eventually equalize spending. Each district will get a minimum of 84,200 per pupil, about $1,000 more than the poorest districts now spend. Districts can add a limited amount to that minimum. But with a gap of as much as $7,000 between the richest and poorest districts, education officials say it could take decades before everyone gets an equal piece of the pie.
