Impact of Governor’s Proposal to Cut 20j Proposal A Hold Harmless Districts Section 20j.
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Transcript of Impact of Governor’s Proposal to Cut 20j Proposal A Hold Harmless Districts Section 20j.
Proposal A - 1994
Issue: Funding gap between MI school districts.
• Objective: Close gap with min/max funding levels
Time
Fun
ding
Proposal A – “Hold Harmless”
Districts above $6,500
Allow local millage to maintain funding level.
Walled Lake’s 1994 level of funding was $6,937. Time
Fun
ding
Hold Harmless
Non Hold Harmless
Proposal A – Millage Rate
Non Hold Harmless 6 mills
52 Hold Harmless districts pay up to 12 mills
In Walled Lake 7.7 mills
Time
Fun
ding
Hold Harmless
Non Hold Harmless
Effect of local
millage
Proposal A – 20j Holds us Harmless
Hold Harmless Error: No increases beyond the cost of living to hold harmless districts.
20j enacted in 1999, corrected this error.
20j
Non 20j
Time
Fun
ding
07-08 and 08-09 Non Hold Harmless districts received 2x funding increase as Hold Harmless
Walled Lake lost $1,632,000
Proposal A – 2X Funding
20j
Non 20j
Time
Fun
ding
07-08 08-09HH $48 $ 56NHH $96 $112
Effect of 2x funding
Proposal A – Cut 20j Funding
Governor proposes to cut portion of 20j.
Devastating loss to 52 HH districts.
09-10 – Walled Lake would lose $414,000.
Walled Lake could lose up to $4,400,000.
20j
Non 20j
Time
Fun
ding
Effect of new
proposals