The viability of prepaid tuition plans and whether they would unreasonably limit the choices of institutions students could attend are discussed. Many state legislatures are studying the plans; some favor bond plans because they allow students more choice. (MLW)

On December 24, 1994, the Michigan State Legislature passed a comprehensive school finance reform package for the K-12 education system. This document analyzes the school finance reform package and presents a comprehensive review of the issues affected by the proposed reforms. The first section reviews the overall financial components of the…

Michigan's legislature has approved the only statewide plan to allow parents to prepay their child's tuition to any of the state colleges, state universities, or community colleges. Prepayment may begin any time from the child's birth until his or her 18th birthday, and the money will be invested in a trust. (MSE)

Governor Blanchard of Michigan announced that the IRS planned to allow parents to participate in the state's prepaid-tuition program without paying additional federal income tax. A broader ruling will take additional time to formulate. The federal government is considering a national plan to allow tax breaks for college savings. (MLW)