This brief is based upon a report that reviewed research on the role of money in determining school quality. The research documents that resource investments matter for student outcomes, especially when they are directed to under-resourced districts and students from low-income families. The research also shows that spending resources in ways that…

For decades, some politicians and pundits have argued that "money does not make a difference" for school outcomes. While it is certainly possible to spend money poorly, this viewpoint is strongly contradicted by a large body of evidence from rigorous empirical research. A thorough review of research on the role of money in determining…

This paper explores what happens to similar groups of children educated in different school districts. In this case, the "twins" in the study are groups of students who live in the same state in similar geographies and who share certain demographic characteristics. For this report, "twin districts" have very similar sizes and…

In 2009, the city of Detroit proposed a $500.5 million bond referendum to stem the declining enrollment in Detroit Public Schools (DPS) that mirrored the decades-long decline in the city's population. Proposal S was passed in November to fund the construction of 8 new schools, the renovation of 10 more, and the improvement of information…

Michigan radically altered its school finance system in 1994. The new plan, called Proposal A, significantly increased state aid to the lowest-spending school districts and limited future increases in spending in the highest-spending ones, abolishing local discretion over school spending. I investigate the impact of Proposal A on the distribution…

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,…

Michigan's state-run school system is the largest and most expensive government service taxpayers support. It employs more than 350,000 people who work in one of the more than 4,100 different entities. The total amount this system expends each year adds up to more than $20 billion. Given the enormity and complexity of the system, it's no surprise…

This paper, one of three related documents, examines the distributions of general revenues and instructional expenditures across school districts in Michigan. It discusses the equal yield formula for the funding of public schools and examines how the formula has accomplished its objectives. The data indicate success in reducing the effects of…

Describes a program of reform in the education tax support system proposed by the author, the governor of Michigan, for his state. (AN)

In 1994, Michigan voters amended the state constitution to reduce schools' reliance on local property taxes for financial support. School districts were also divided into three funding tiers that were determined by their 1993-94 state and local revenues. This paper presents findings of a study that examined the impact of Michigan's finance reform…

Unlike many other states, Michigan's school-finance reform was triggered not by a lawsuit but by legislative action that eliminated the property tax as a revenue source for public schools. Changes included an increase in the sales tax from 4 to 6 cents and a move to a foundation grant formula, which included a state foundation-allowance target for…

The historical background of and barriers to K-12 school finance reform efforts in Michigan from 1968 to 1989 are reviewed in this report. Factors inhibiting school finance reform are cost of equalization, local control, out-of-formula school districts, and property tax stability. Other factors include de facto unavailability of state personal…

This report presents case studies from seven states showing how state governments are: (1) responding to demands for more efficient and effective delivery of children's services; (2) taking on additional responsibilities formerly handled at the federal level; and (3) passing on added responsibilities to the local level (school districts, local…