To assess the impact of the UTTC on state and local finances, a model of state and
local finance of public schools in the state of Michigan was developed. This model is used
to project future financial changes under both the current system of public finance of
public schools and the proposed UTTC plan. The model captures the most significant
dynamics in the complicated financial structure for public schools and explicitly
incorporates incentives that apply to parents as they choose whether to send their
children to the assigned public schools or alternative schools.
Appendix I contains a complete discussion of the model, including a comprehensive set
of tables showing how the model projects student enrollment costs and other variables.
This appendix also includes extensive discussion of the sources of the information used as
well as a discussion of key techniques.