1 Michigan Constitution of 1963, Article VIII, Section 2.

2 Michigan Constitution of 1963, Article VIII, Section 3.

3 Michigan Constitution of 1963, Article VIII, Section 3.

4 Michigan Constitution of 1963, Article VIII, Section 3.

5 Michigan Constitution of 1963, Article VIII, Section 3.

6 MCL § 16.402.

7 The No Child Left Behind Act of 2001, Public Law 107-110, 20 U.S.C. § 6301 et seq.

8 For a table of federal outlays for education by department or program, see Table 359 in "Digest of Education Statistics 2005," (Institute of Education Sciences, National Center for Education Statistics, U.S. Department of Education, 2006), http://nces.ed.gov/programs/digest/d05/.

9 MCL §§ 380.1280, 380.11a.

10 MCL § 380.1246(1).

11 MCL § 380.1129.

12 MCL § 380.502(2).

13 MCL § 380.601 et seq.

14 MCL § 388.1601 et seq.

15 Michigan Constitution of 1963, Article IX, Section 3.

16 Michigan Constitution of 1963, Article IX, Section 31.

17 Michigan Constitution of 1963, Article IX, Section 29.

18 Durant v. State, 456 Mich 175 (1997) (Durant I).

19 Mary Ann Cleary and Kathryn Summers-Coty, "Durant: What happened and implications for the future," (Michigan House Fiscal Agency, 1999), 3.

20 MCL § 380.501.

21 MCL § 380.501.

22 MCL § 388.1606(11).

23 MCL § 211.34c(2).

24 For the classification of real property, see MCL § 211.34c.

25 MCL § 211.7ee.

26 See, e.g., MCL § 380.1211(1); Andrew Lockwood, "The Michigan Property Tax Real and Personal, 2003," (Office of Revenue and Tax Analysis, Michigan Department of Treasury, 2005), 36, http://www.mi.gov/documents/2003PropertyTaxReport_128524_7.pdf (accessed December 31, 2005).

27 Michigan Constitution of 1963, Article IX, Section 3.

28 MCL § 211.27(1).

29 MCL § 211.27(5).

30 MCL § 211.27(2); for information on local tax assessors, see MCL § 211.10d.

31 See MCL § 211.34d.

32 MCL § 211.27a(3).

33 MCL § 211.27a(2).

34 MCL § 211.34d(1)(b)(iv)(A), (C)(v), (C)(vii).

35 Tax amounts are to be rounded down to the nearest cent (MCL § 211.39(3)).

36 MCL § 211.27a(2).

37 MCL § 211.27d; for definitions of homestead exemptions, §§ 211.7cc, 211.7ee.

38 MCL § 380.1211.

39 MCL § 380.1613.

40 MCL § 211.34d(2).

41 "Grand Ledge Public Schools: Headlee Override Vote," Michigan School Business Officials Web site, http://www.msbo.org/services/biz/2005/Headlee_Override.ppt.

42 For simplicity, we have not included losses that would be subtracted from Year A’s TV or additions that would be subtracted from Year B’s TV. This concept is explained briefly below in the text.

43 Bonding to make up for a current or projected operating deficit is allowed if the deficit is at least $100 per pupil and if other requirements specified at MCL § 380.1356 are met.

44 MCL § 380.1211(8)(f).

45 MCL § 380.1211(4).

46 MCL § 380.1211(1).

47 MCL § 388.1620j.

48 MCL § 380.1211(3).

49 MCL § 380.1211(1), MCL § 380.1211a: "the department of treasury shall certify … the number of mills by which a school district may reduce the exemption for a homestead and qualified agricultural property for 1994. …"

50 MCL § 380.1212(1).

51 See C. Philip Kearney and Michael F. Addonizio, A Primer on Michigan School Finance, 4th ed. (Wayne State University Press, 2002), 61.

52 MCL § 380.1212(3).

53 Lockwood, "The Michigan Property Tax Real and Personal, 2003.", 16 n. 14.

54 Michigan Constitution of 1963, Article IX, Section 31.

55 For types of bond issues, "State of Michigan Bond Qualification Process Overview," (Michigan Department of Treasury, 2006), 1, 5, http://www.michigan.gov/documents/3160_2815_7.pdf.

56 MCL § 380.1351(3).

57 "Bill Analysis: School Bond Loan Fund Reform," Michigan Senate Fiscal Agency, http://www.legislature.mi.gov/documents/2005-2006/billanalysis/Senate/ pdf/2005-SFA-0406-S.pdf.

58 MCL § 388.1925(2), which is part of the School Bond Qualification, Approval, and Loan Act, 93rd Legislature, Public Act 92 of 2005. For the complete act, see MCL § 388.1921-388.1925. For a rough summary of new and revised provisions in this statute, see "Bill Analysis: School Bond Loan Fund Reform." The Michigan Senate Fiscal Agency’s analysis summarizes the state Senate bills, not the public act, so it must be read with care.

59 This is the statute’s method of determining need for the project. The following are factored into utilization calculation: (1) Current enrollment data as filed with the Michigan Department of Education; (2) projected enrollment for next five years as estimated by an independent party; (3) number of current and proposed rooms or areas to which a teacher is assigned; and (4) Pupils per room or area (as per item (3)) utilization standards: (a) elementary: 25 students per room/area x 100 percent, (b) junior high: 25 students per room/area x 90 percent, (c) senior high: 25 students per room/area x 85 percent. The district-wide utilization percentage must equal 85 percent or greater for facilities to be built and 60 percent or greater for facilities to be renovated. For this description, see "State of Michigan Bond Qualification Process Overview," 2.

60 For an explanation of these loans, see below. Qualified bonds that were outstanding before July 20, 2005 — the date on which Public Act 92 of 2005 became effective — are subject to slightly different provisions: see MCL § 388.1929(2), (6). The stipulation that an application include evidence that the new debt issue would not prevent a district repaying existing loans on time is an addition in the 2005 law to the Public Act 108 of 1961; see "Bill Analysis: School Bond Loan Fund Reform."

61 MCL § 388.1928(1).

62 For full details on MSBLF, see "State of Michigan Bond Qualification Process Overview."

63 MCL § 123.52.

64 MCL § 123.52.

65 MCL § 211.205j.

66 MCL § 380.624.

67 MCL § 380.625a.

68 MCL § 380.625(2).

69 MCL § 380.681(1).

70 MCL § 380.681(4)(b).

71 MCL § 380.681(4)(a).

72 MCL § 380.1711(1).

73 MCL § 380.1723.

74 MCL § 380.705(1).

75 MCL § 380.705(4).

76 MCL § 380.705(3).

77 See Joe Carrasco Jr., "Declining Enrollment and Its Effect on School District Revenue," (Senate Fiscal Agency, 2004), 3, http://www.senate.michigan.gov/sfa/Publications/Notes/2004Notes/ NotesNovDec04jc.PDF (accessed February 2, 2006). "Holland Union, District Still Split," Michigan Education Digest 7, no. 41 (2005), http://www.educationreport.org/7417.

78 MCL § 380.629(2).

79 Michigan Constitution of 1963, Article IX, Section 31.

80 See MCL § 380.629(1)(b); for other details, see the whole of MCL § 380.629.

81 "State School Aid Fund by Source of Revenue 1992-93 to 2005-06," (Michigan Department of Education, 2007), http://www.michigan.gov/documents/SAFREV04_117962_7.pdf (accessed April 12, 2007).

82 For a concise summary of sales tax exemptions in terms of purchasers, items, transaction types, status of sellers and the use of the personal property or service, see "Outline of the Michigan Tax System," (Citizens Research Council of Michigan, 2007), 25-26, http://www.crcmich.org/PUBLICAT/1990s/1999/rpt327d.pdf (accessed February 27, 2007). For a legislative history of the sales tax that led to the various exemptions currently in place, see "Michigan’s Sales and Use Taxes 2005," (Tax Analysis Division, Bureau of Tax and Economic Policy, Michigan Department of Treasury, 2006), 5-7, http://www.mi.gov/documents/ SalesAndUseTaxReport2005_May2006_160159_7.pdf (accessed February 28, 2007).

83 See "Michigan’s Sales and Use Taxes 2005," 1.

84 "State of Michigan Revenue Source and Distribution: June 2006."

85 MCL § 205.93(2).

86 For a convenient list of exemptions, "Outline of the Michigan Tax System," 29-30.

87 Michigan Constitution of 1963, Article IX, Section 8.

88 Ibid.

89 MCL § 205.111(1).

90 See "Michigan’s Sales and Use Taxes 2005," 1.

91 "State of Michigan Revenue Source and Distribution: June 2006."

92 The cigarette excise tax is not to be confused with the state’s excise tax on cigars, noncigarette smoking tobacco and smokeless tobacco: MCL § 205.427(1)(g).

93 MCL § 205.427(1)(b)-(e).

94 The aggregate percentage of the cigarette tax appropriated to the state School Aid Fund is from the following calculations based on the percentages of various cigarette tax raises in the Tobacco Products Tax Act of 1993, as amended by Public Act 164 of 2004. The relevant figures are: 63.4 percent of the original 37.5 mills per cigarette tax (23.775 mills) [see MCL § 205.432(3)(e)], 56.3 percent of the 15 mill increase on cigarettes (8.445 mills) [see MCL § 205.432(4)(b)] and 94 percent of a 10 mill raise on the cigarette tax (9.4 mills) [see MCL § 250.432(6)(a)]. The sum is 41.62 mills, which is 41.62 percent of 100 mills.

95 "State School Aid Fund by Source of Revenue 1993-94 to 2005-2006," (Michigan Department of Education, 2007), http://www.michigan.gov/documents/SAFREV04_117962_7.pdf (accessed April 13, 2007).

96 MCL §§ 436.2201, 2205, 2207.

97 MCL § 436.2203. This tax should not be confused with the tax on beer and wine, which is not credited to the state school aid fund.

98 "State School Aid Fund by Source of Revenue 1993-94 to 2005-2006."

99 MCL §§ 207.523-524.

100 "State School Aid Fund by Source of Revenue 1993-94 to 2005-2006."

101 For exemptions, see MCL § 207.1-21.

102 MCL § 211.903(1).

103 MCL § 211.905(1).

104 MCL § 211.905(6).

105 "State School Aid Fund by Source of Revenue 1993-94 to 2005-2006."

106 MCL § 324.51103(2)(a)-(c).

107 MCL § 324.51103 et seq.

108 MCL § 324.51109(1).

109 It could levy these on commercial forests listed in its district, which would include some of those in Emmet County, as reported by "Lands Listed as of 08/22/2005 14:09:39, County: Emmet (24)," (Michigan Department of Natural Resources, 2005), http://www.midnr.com/Publications/pdfs/ForestsLandWater/forestry/ CFListings/Emmet/Emmet.pdf (accessed February 3, 2006).

110 MCL § 324.51301.

111 MCL § 324.51311.

112 MCL § 324.51312.

113 MCL § 207.561(2), § 207.561(5); for cases when the revenue is allocated to the local district, see MCL § 207.561(3).

114 MCL § 207.712(6), (4).

115 MCL § 125.2102.

116 MCL § 125.2121(5)(a).

117 MCL § 125.2121b(9); for the calculation of the specific tax rate, see MCL § 125.2121b(2).

118 MCL § 207.779(9).

119 MCL § 207.773(1).

120 See MCL §§ 207.771 – 207.787.

121 MCL § 207.779(10), (11).

122 MCL §§ 207.843(1), 207.843(5).

123 MCL § 125.1415a(2).

124 MCL § 125.1415a(2).

125 MCL § 125.1415a(4).