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Yifang Shi
Oakland University
THE LIMITATIONS OF PROPOSAL A ON MICHIGAN SCHOOL FINANCE 2
Abstract
In 1994, Michigan's school finance Reforms-Proposal A were placed to shift school funding
from the property tax to the sales tax. A significant reduction in property taxes has been led by
Proposal A, while Michigan public schools is facing real loses in their financial resources;
Educators are forced to meet rising academic standards in the face of insufficient funding.
However, if policymakers use the same share of the national economy to support education, as
they did ten years ago, Michigan could provide the school with the dollars it needs.
As a quasi-public product, education will benefit individuals. People can get higher social
status and rich rewards through education. At the same time, education also has a huge social effect.
The improvement of education level is of great significance for accelerating the development of
social economy and improving the fairness of the whole society. Therefore, education should be
valued both from a personal perspective and from a national perspective. Education is the bond of
social politics, economy and culture, and it is also the specific function of the society evolved from
education is to meet two needs, namely, educating the needs of society and educating individual
needs.
quality and the long-term development of the country. At the same time, the basic rights of the
people and the provision of public education services are the important contents of public services
provided by the government. Although the expenditure on public education keeps growing, and
great achievements have been made in this regard. However, the total amount of funds for
Michigan schools is still insufficient. There is a serious imbalance between urban and rural areas
and between schools, and the burden structure between governments and educatees, between urban
and rural residents, and between governments at all levels, thus the imbalance is affecting the
Discussion of Proposal A
Prior to 1994, Michigan, in the same way as other different states over the U.S., depended
extremely on income from nearby property tax to subsidize schools. With the section of Proposal
A that year, subsidizing moved toward a state-based adjustment framework. From that point
THE LIMITATIONS OF PROPOSAL A ON MICHIGAN SCHOOL FINANCE 4
forward, neighborhood financing from property imposes in Michigan has been mixed with state
subsidizing gathered through a two percent expansion in the statewide sales charge (from 4% to
the current 6%). The planned results of Proposal A were to: (1) substantially reduce property taxes;
(2) increase the state share of total K-12 revenue; (3) assure all local districts a minimum level of
per-pupil revenue with which to meet state and local student performance standards and (4) achieve
equity for pupils in Michigan public schools (Kearney & Addonizio, 2002). Nonetheless, in recent
years the debate has moved beyond providing equitable funding, toward a focus on educational
Although there have been some improvements, the equity problem still exists. Until there
is an equal level of foundation allowances across all districts, people will never truly have an
Initially, Proposal A is attached intensely to the financial cycle of the state. Proposal A was
received when Michigan's monetary viewpoint was promising. At the point when the state is liable
to higher joblessness and less discretionary cash flow, the business charge that was assigned to
help the School Aid Fund endures a noteworthy shot. Furthermore, reserves that have been
appropriated for the School Aid Fund have been reliably taken advantage of by the administration
for different zones that have encountered deficiencies. At long last, Proposal A ought to be
supplanted in light of the fact that an extensive hole still exists between the least fortunate and
wealthiest areas. Particularly since this is one of the essential reasons Proposal A was at first
created.
Generally, economic growth restricts and guides the development of education. The level
of economic development determines the scale, content, organizational form, teaching methods
THE LIMITATIONS OF PROPOSAL A ON MICHIGAN SCHOOL FINANCE 5
and educational methods of education, as well as the quality of labor force and the quality of
part of social development, and its development is ultimately restricted by the level of economic
development. Proposal A makes education extremely attached to the economics of the state. The
level of economic development determines both the demand and supply of educational investment.
In addition, changes in any of the state income instruments may lessen reserves focused to the
Prop A does not address expenses of teaching understudies with exceptional necessities,
the individuals who are in danger, living in neediness, English Language Learners, or the
staggering expenses of transportation. Michigan’s current school finance system was supposed to
more equitably support schools, yet it does not address the adequate distribution of resources. An
adequacy study would look at factors such as socioeconomic status, the needs of English language
learners (ELL), special education requirements, and specialized needs in both rural and urban
combine regional development with personal assistance to students with special needs, so as to
effectively focus poverty alleviation on students with extra needs. The government should allocate
different financial appropriations according to the actual development level of schools in different
regions, conduct accounting according to the needs of students, the region where the school is
located, the size of the school and other factors, and specify the amount of state financial funds for
different types of schools. At the same time, the management of school funds will be delegated to
THE LIMITATIONS OF PROPOSAL A ON MICHIGAN SCHOOL FINANCE 6
the local government, which will allocate funds according to the allocation system stipulated by
the state, so that the allocation of education funds will be more targeted and appropriate.
In order to ensure the effectiveness and feasibility of Proposal A, the competent authorities
need to constantly review and reflect on the proposal after the implementation of the action plan,
make corresponding adjustments and improvements according to the specific situation of the
implementation, and form a dynamic development process. The entrance and exit of schools in
poor areas and students with special needs shall also be reflected in the plan. At the same time, in
order to ensure that the public can obtain sufficient information, management departments need to
publicly release the entire implementation process, effectiveness and reflection of the action plan.
The State should use action plans to manage and ensure that schools fulfill their primary
“Michigan is trying to improve schools in a cheap way, with a focus on more accountability
and school choices,” said David Arsen, professor of Michigan State University. Today, the federal
government in Michigan requires less than a third of the special education costs, which means that
the school district provides an average of $500 per student per year to pay for these services. In
addition, students from low-income families now account for half of all students, but each student's
support for them has fallen more severely, by 60%. Educators are forced to meet rising academic
Along with the education finance system reforming, the unbalance and unreasonableness
of the structure have not been fundamentally improved, and the average expenditure of public
school students is still low. Hence this is not conducive to the balanced development of education.
THE LIMITATIONS OF PROPOSAL A ON MICHIGAN SCHOOL FINANCE 7
Conclusion
All in all, Proposal A was an extreme shift along with various measurements. It adjusted
spending crosswise over school districts by raising the most minimal spending areas and basically
solidifying the incomes of higher spending regions; it moved subsidizing duties to the state level
and obliged the income raising limit of nearby wards; it diminished and evened out property charge
rates and expanded the business assessment; and it acquainted school decision with Michigan as
sanction schools and open enlistment. Every one of these progressions makes new difficulties and
openings.
THE LIMITATIONS OF PROPOSAL A ON MICHIGAN SCHOOL FINANCE 8
References
Arsen, D., & Plank, D. N. (2004). Michigan school finance under Proposal A: State control, local
Mattoon, R. (2004). School funding ten years after Michigan’s Proposal A: Does equity equal
Quinn, Daniel. (2015). Creating a Better Funding System for Michigan. Mid-Western