Approved nearly 10 years ago, a newly released report shows Proposal A has been effective. But researchers are recommending changes aimed at preserving the gains made under the proposal.
A Michigan State University Education Policy Center report shows Proposal A has been successful in keeping property taxes down and reducing inequities in school funding.
Passed in 1994, the proposal shifted the burden of financing schools from property taxes to the sales tax and other levies.
The two-year study also states that because revenues allocated for the School Aid Fund have never been adequate, the state has transferred an average of $500 million a year from the general fund.
The researchers say a 2 mil increase in the state education property tax would help by bringing in $600 million a year for schools. It would also maintain the current level of the state's per pupil funding.
Some legislators say raising property taxes would add to the inequities between schools that Proposal A was trying to defeat. The 2 mil increase would mean about a $100 increase in an average homeowners taxes.
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