A Michigan School Money Primer
For Policymakers, School Officials, Media and Residents
By Dr. Ryan S. Olson and Michael D. LaFaive, published on May 30, 2007
Contents
- Acknowledgements
- Introduction
- A Brief Overview of the Structure of Michigan’s Public School System
- Revenues
- Appropriations for K-12 Education
- Local Receipt and Expenditure
- State Aid Financial Status Reports
- Reading a State Aid Financial Status Report
- ‘Current Year Allowances’ in a State Aid Financial Status Report
- ‘22a Prop A Obligation (Statepp: $3,873.11)’
- ‘51c Spec Ed Headlee Obligation’
- ‘26a Renaissance Zone’
- ‘22b Discretionary Payment’
- ‘22c Equity Payment’
- ‘29 Declining Enrollment’
- ‘11F Nonplaintiff Durant Settlement’
- ‘24 Court Placed Children’
- ‘31A At Risk’
- ‘31d School Lunch’
- ‘32d Mich School Readiness’
- ‘53A Court And State Agency Placed Pupi[ls]’
- ‘61a.1 Vocational Education’
- ‘99c Middle School Math’
- ‘107.1 Adult Education Participants’
- Districts’ Receipt of Funds
- School District Budgeting
- General Format of a School Budget
- The Government Accounting Standards Board
- The Budget Process
- Step 1: Local Program Review and Preliminary Revenue Forecasts (August-November)
- Step 2: Request Early Cost Estimates (September-December)
- Steps 3 and 3A: Board of Education Workshop and Budget Submissions (January-February)
- Step 4: Central Office Review (March-April)
- Step 5: Budget Review With Board of Education (April-May)
- Step 6: Preparation of Final Budget (April-May)
- Step 7: Adoption of Final Budget (June)
- Expenditure Reporting
- Fund Balance
- Deficits
- School District Financial Audits
- State Aid Financial Status Reports
- Appendix 1: U.S. Department of Education Spending in Michigan
- Appendix 2: Summary of ‘Durant’ Court Decisions
- Appendix 3: Guide to a New School Finance Electronic Module
- About the Authors
- Endnotes
SKU: S2007-04

"A Michigan School Money Primer":
“I have long believed the media generally does a disservice to its readers, listeners and viewers by failing to convey factual information about Headlee rollbacks, bond millages, foundation grants and similar subjects. Due to the complexities of the subjects, many reporters are content to simply allow a school official to spout the company line. I can’t count how many times I’ve heard or read (unchallenged) that a Headlee override is not really a tax increase.
“Reporters are entering the field, in some cases, without even a basic understanding of auditing, budgeting and taxation. A few years back, I asked a prospective reporter to define a mill as used in property taxation. He thought about it for about 30 seconds and told me it was the clearinghouse for property tax collection!
“It is difficult and time-consuming to teach reporters how to deal with audits, budgets and millages. Thanks to the primer, my job just got easier. It will be required reading for members of the editorial staff.”
— Holly Nelson
Oscoda Press
“‘A Michigan School Money Primer’ was very helpful to me while writing my newspaper stories regarding school financing. The Michigan public needs to know the eye-opening information that is in this book! It is a complete and understandable resource that is useful on many levels.”
— Donna Gundle-Krieg
Journalist


