School Funding Proposal Hurts Grosse Ile 

            The Legislature is deliberating the state’s 2008-2009 fiscal year budget, which includes the school aid fund.  When voters adopted Proposal A more than a decade ago, a large portion of the funding for school districts shifted from local control through property taxes, to state control mostly through a fifty percent increase in the sales tax.  As a result, local control of public school funding was drastically reduced, and state control was significantly increased.  However, Proposal A never resolved the disparity in per pupil funding among public school districts.  Now a per pupil funding formula known as “2X” has been introduced in the Legislature to address this disparity. 

            The intent of the “2X” formula, according to lawmakers, is to begin to equalize per pupil funding among all districts by bridging the gap between lower funded districts and higher funded districts.  As an example, the current Senate proposal would provide an increase in funding for the 2008-09 school year that ranges from $71 to $142 per pupil based upon a district’s current per pupil foundation amount.  Under this proposal, Grosse Ile would receive a $71 increase, or less than 1% for the 2008-2009 school year.  If the “2X” formula continues, and the state’s economic climate does not improve in the foreseeable future, then Grosse Ile could continue to receive per pupil increases at or below 1%.  Obviously, this low level of per pupil funding, given inflationary growth of approximately 5%, would not sustain Grosse Ile’s ability to provide the level of programming and services this community expects. 

            Grosse Ile is one of approximately 50 school districts that receive funding under Section 20j of the School Aid Act.  Some legislators have stated that funding under Section 20j should be eliminated because they perceive it to be additional money received; however, the reality is that Section 20j was created during the 1999-2001 school years to allow districts such as Grosse Ile to receive the same funding as other districts.  This has been confirmed by the House Fiscal Agency in a memo dated February 15, 2007, that stated in part “Section 20j payments do not increase the gap between the lowest and the highest foundation allowance; it instead ensured that all districts receive the same foundation allowance increase.” 

            Grosse Ile is fortunate to receive a higher per pupil funding than other districts; however, there are many misconceptions surrounding this funding.  First, it is often reported that for the 2007-2008 school year Grosse Ile receives $9,019 per pupil from the state, which is incorrect.  The actual breakdown of this funding can be summarized as follows:

    $586 per pupil is collected locally through a supplemental millage to Grosse Ile residents taxpayers as reapproved in 2001 (on Homestead property – Hold Harmless millage levy);

    $653 per pupil is collected locally through Non-Homestead property taxes (i.e. business and individuals with second homes);

    $7,506 per pupil is received through the State;

    $274 per pupil is received through the State earmarked at Section 20j money; this equals $537,625 or 3.5% of all the money we receive from the State. 

The concept of equal per pupil funding appears to be politically appealing; there is a strong movement amongst lesser funded school districts to have districts promote the “2X” formula.  As far as Grosse Ile is concerned, Michigan’s current inability to provide all public schools with inflationary increases makes the concept seem unrealistic.  Further, eliminating Section 20j funding would undo the Legislature’s intent to provide the same funding increases to school districts during the 1999-2001 school years.  Finally, it is important to consider local versus state share of the per pupil formula.  Although Grosse Ile has a higher per pupil funding than many other districts, it is Grosse Ile citizens who bear a proportionately larger share of this cost than in many other districts.  On Grosse Ile, we think it is very wrong-minded to pit school districts against each other in this debate.  We do not believe that taking from the Section 20j school districts will truly even the score.  There is not enough money in this designated fund to resolve the long-standing discrepancy.  No district can afford to receive less than they did the year before and be able to remain solvent.  It is obvious that there are still many issues that need to be addressed in school funding. 

So, once again, the citizens of Grosse Ile are encouraged to contact our representatives. Here are some important points to share with them:

    We do not support taking funds away from some districts to give to others. 

    We support a fair funding plan for ALL districts with increases at the rate of inflation and a provision to address equity. 

    New programs should not be initiated at the state level while districts are cutting programs at the local level.

    Hold Harmless Districts would lose over $53 million if Section 20j funds were eliminated.  They must be made aware that Grosse Ile stands to lose $537,625 if the Section 20j money is redirected.   

On Grosse Ile, we have been trimming our spending – elimination of bus stops, increasing costs for athletics, and so many other cost-saving measures, in order to absorb the hard fact that we have not been receiving inflationary increases to keep pace.  We simply cannot afford to take a further reduction in our state funding due to the loss of Section 20j without dire ramifications.