State takeover has become a consistent policy prescription for school districts who become financially insolvent and/or have low academic achievement. A look at the state of Michigan's state takeover laws and the case study of Detroit Public Schools (DPS) demonstrates the negative consequences and nuances of the policy to improve academic…

A state's special education funding structure affects both the level of special education services provided and how equitably these services are distributed across districts. Irrespective of the funding system, districts in almost all states use unrestricted funds to pay for special education services not covered by revenue designated for special…

This research applies critical race theory to investigate Michigan's system for funding public schools, focusing on structural racism and discrimination embedded in education finance laws, housing policies, and residential and educational segregation. We find that the average Black student receiving free or reduced-price lunch (FRL) receives $411…

Since the implementation of IDEA in 1975, as spending on education has continued to grow, a large portion of that spending has been dedicated to students with special needs. This study uses a panel dataset of local and intermediate school districts to examine the complex special education funding and delivery scheme in the State of Michigan. Using…

Like other states, Michigan has implemented a number of policies to change governance and administrative arrangements in local school districts deem to be in financial emergency. This paper examines two questions: (1) Which districts get into financial trouble and why?; and (2) Among fiscally distressed districts, are there significant differences…

We consider issues of equality and efficiency in two different school funding systems--a state-level system in Michigan and a foundation system in Ohio. Unlike Ohio, the Michigan system restricts districts from generating property or income tax revenue to fund operating expenditures. In both states, districts fund capital expenditures with local…

This report takes a closer look at not just student learning, but also the quality of school conditions that support that learning. There, too, Michigan has troubling weak spots. The state currently ranks 42nd of 47 for funding equity, meaning Michigan has some of the biggest gaps in resources between high-poverty and low-poverty school districts.…

This study investigates what factors are associated with the likelihood of passing school facility construction bonds by local district election. It uses statewide data from Michigan, 1998-2006, to examine the outcome of 789 bond elections in terms of the following ten variables: amount of the bond request; district enrollment; district locale;…

In the passionate debates over providing equal educational opportunity for all children, it's frequently argued that large financial inequities create challenges for many public schools, particularly those in lower-income urban areas. This study compares the revenues and operating expenditures of Michigan's urban, suburban, town and rural school…

Reforms in American public education have not resolved the wide academic performance gap between students attending schools in poor, large, urban centers versus schools in wealthier areas. Aggregate performance outcomes on state achievement tests reveal that some school districts consistently outperform others, a few fluctuate over time but are…

Examines how varying wealth and varying certainty of wealth influences budgetary decision making in (Michigan) school districts. Despite differences in revenues, balance, implementation, and process, there was little variation in the way districts spent their money. Budget implementation is most affected by lack of wealth. Certainty of wealth is…

The system that finances Michigan's schools from kindergarten through 12th grade is a perennial topic of conversation among policymakers, parents, taxpayers and voters. A constructive discussion of this issue, however, requires a sound knowledge of the financial workings of Michigan's elementary and secondary school system. This knowledge is…

In 1993 the Michigan Legislature voted to eliminate the property tax as a source of school revenue, cutting the educational budget by $6.3 billion. An alternative funding source was not identified. Proponents of the bill say it will move the Michigan educational system into the 21st century; opponents criticize the bill as being a political…