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…

This study analyzes the effectiveness of a "guaranteed tax base" (GTB) as a reform measure designed to reduce the traditional heavy reliance of school financing on local property tax revenues and to help equalize per pupil expenditures across districts. Such measures call for matching locally raised tax dollars with state aid and…