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Michigan Student Opportunity Scholarships: Overview and Fiscal Analysis

… passed legislation in October 2021 to create the Student Opportunity Scholarship Program, which would give thousands of families across the state more spending power to help meet their children's educational needs. This report unpacks this proposed education savings account program and analyzes its potential …

Students Led Astray by Environmental Indoctrination

A Michigan high school student contacted the Mackinac Center, asking for help with research on pollution and its impacts on the natural environment. … a fully renewable electricity system, Michigan residents would need to spend tens of billions and carpet the state with wind turbines and solar panels, …

Using Atypical Households to Represent All Households

… comparison to estimate the spending needs for a very specific, … young children not yet of school age face significantly higher … consider a family of four with school-age children enrolled in public schools. While this household is similar … that this household needs to spend more than $1,100 per month …

Overall Funding Impact

… combine to provide Michigan schools with substantial revenues … All told, Michigan public school revenues increase by up to … additional dollars will boost K-12 spending for each of the current and … relief bills, Flint Community Schools will receive nearly twice … districts, including charter schools, in terms of the total combined …

Breaking Down the CARES Act

… relief to the nation’s public schools. Federal policymakers gave broad flexibility to school districts on how the relief … of that, Michigan public schools received four streams of supplementary … follows: Districts and charter schools across the state received … Michigan agencies reported spending only one-eighth, or $48.8 …

Flex Learning: Two Possible Fiscal Approaches

… a mechanism that redirects school aid dollars to extra support … equivalent to a public charter school’s authorizer fee. This amount … would remain to the family’s spending discretion. Low-income students … providers, whether they be school districts, charter schools or institutions of higher …

A New Model for Flexible Learning

… learners greater agency, especially for middle-school and secondary students and their families. Charting … per-pupil allotment to “purchase” courses from schools for both online and face-to-face instruction. … broad menu of providers. Accountability for this spending can be achieved through tested and reported measures …

Current Operation of Trust Funds

… Investment returns finance the annual spending programs allowed through the funds. … language prohibits the state from spending more than half of the annual revenue … department, determines how much to spend each year. The board also decides … Gregory J. Parker, “Michigan Public School Employees’ Retirement System Retirement …

Conservation

… Gardens Participants discussed the idea that the public is willing to spend private dollars to enjoy and protect the ecosystem, a benefit that society … activities on the land. A 250,000 acre parcel owned by the King Kamehameha School in Michigan’s Upper Peninsula was discussed as an example. The land was …

COVID-19: Coalition Offers Blueprint for Health, Safety and Economic Opportunity

… or assumed to be ongoing spending. Spend Some of Our State Reserves: … Therefore… Cut Non-Essential Spending Now: The Governor and Legislature … that more Michigan public schools are able to deploy it — whether … emergency-related shutdowns. School districts that take the lead …

Michigan Landscape: School Transportation

… the share of families with school-age children who lived within range of different types of schools. Researchers found that 93% … conventional district elementary school. By that same measure, 83% … close to a private elementary school, 72% to an elementary school … schools in Michigan on average spend about 4% of their operating …

Conclusion and Policy Recommendations

… dedicated to other purposes. Such spending is likely to provide the most bang … roads. First, the state already spends hundreds of millions of dollars on … Such as system could resemble how school facilities are funded. The state generally … provide loan assistance to improve the school districts’ credit rating and thus …

Challenges with Funding Michigan’s Roads

… Legislature has a large range of spending interests, and funding for … would be a radical shift in spending priorities. Graphic 26 below … fiscal year 2018.[†] Public schools and health and human services … Michigan’s budget.[‡] HHS spending has since increased from … significant amount of this spending results from programs receiving …

How Road Funding Works in Michigan

… revenue is dedicated to public schools and local governments.[30] … some flexibility in how they spend MTF dollars. With some exceptions, … constructing primary roads. They can spend another 15 percent of local … government officials have to spend on road maintenance declined … discourages drivers from spending on fuel, which reduces the …

How Michigan Legislators Voted on Taxpayer-Funded Business Subsidies

… quantify the dollar value of business subsidies authorized by each Michigan legislator since 2001. Researchers analyzed 71 public acts that authorized spending $16 billion on business subsidies from 2001 through 2017 to build the scorecard. Of these, 37 bills were able to be scored and the voting record …

Doing More With Less: The Charter School Advantage in Michigan

… research suggests impacts both a school’s funding levels and its average … background of students in a school as well as the race and gender composition of a school’s students. Three key findings … average, Michigan charter schools receive about $2,782, or 20 … investment for each dollar it spends — 36 percent higher than the …

Results of Regression Analysis

… constant.[*] On average, charter schools spend $2,611 less per student, … demographic differences. Charter schools are more cost effective and … investment. On average, the charter school advantage in CAP points for … children in Michigan charter schools provides a return on investment … them per year than students spending 13 years in TPS. We estimate …

Cost Effectiveness and ROI

… differences in per-pupil spending and standardized differences in CAP scores. Charter schools in almost all Michigan cities … cities have public charter schools outperforming TPS based on … take into account relative spending efforts. The graphic below … Graphic 7: Michigan Charter School Spending and Performance Compared …

Cost Effectiveness Analysis

… productivity of public charter schools and TPS, we follow the methodology … University of Arkansas charter school productivity study and first … effectiveness of public charter schools and TPS using the following … in TPS and public charter schools for each city multiplied by … calculating society’s return on the spending decisions made by the schools …

Executive Summary

… nation about public charter schools. Opponents of charter schools typically argue that these schools fail if their average standardized … traditional, district-run schools. These types of comparisons, … investment for each dollar it spends — 36 percent higher than the …

Conclusion

After Adding It All Up, Does Money Actually Matter?

… e complexity of Michigan’s school funding system, relying on … system that funds public schools in Michigan, but rather a … layered on top of each other. School funding in Michigan is a result … unifying strategy used to fund schools, although certain types of … how much their district was spending. The average Michigander …

Funding for Special Education

… Like many other elements of school finance, special education … programs. Altogether though, spending on these services comprise … of what Michigan taxpayers spend on public education. The state’s … account for special education spending among districts, and recommended … 13 percent of total public school enrollment — were classified …

Funding for Intermediate School Districts

… Michigan’s 56 intermediate school districts are an entrenched … back-office support for local school districts, deliver or finance … funded differently than local school districts and public charter schools. The primary difference is … Meanwhile, total ISD operational spending has increased over the same …

Categorical Grants

… how much funding Michigan schools receive on average, a reasonably … falls in that range. But schools receive a lot more money than … to local and intermediate school districts based on certain … state’s massively underfunded school employee pension system. Just … purpose. Since most of this spending is dedicated to “catching …

Recommendations for Reform

… significant doubts on whether spending on Pure Michigan is economically … purchases to justify this spending.[*] In other words, taxpayers shouldn’t have to spend another dime promoting the … return on investment study of spending on tourism promotion contain … in a local college, public schools, transportation infrastructure, …

The Academic Research on State-Funded Tourism Promotion

… correlation between larger state spending on tourism and the share … increases in state tourism spending “depends on the existing … suggesting that an increase in spending may have a net positive impact … significant relationship between spending on tourism promotion and … post-doctoral fellow in the School of Hospitality and Tourism …

Results

… provisions. The goal of corrections spending, for instance, is to administer justice. That spending has economic impacts nevertheless. Spending on economic development should … Century Jobs Fund, the goal of spending these hundreds of millions … unfunded liabilities in the school retirement system. The state …

Conclusion

… data set of building-level spending, achievement and student … correlation between how much schools in Michigan spend and how well their students … are to graduate from high school. The results suggest that … are distributed and the way spending is prescribed by overlapping …

Results

… correlation between a school’s spending levels and its students’ … seventh-grade math — the impact of spending more was very small. The model shows that a school would need to spend 10 percent more to improve … percent increase in per-pupil spending. As is customary when reporting …

Endnotes

… “Assessing the Effects of School Resources on Student Performance: … Persico, “The Effects of School Spending on Educational and Economic Outcomes: Evidence from School Finance Reforms,” The Quarterly … 4 Joydeep Roy, “Impact of School Finance Reform on Resource … https://perma.cc/V6R2-L4LM. 6 Eric A Hanushek, “Spending on Schools,” in A Primer …

Appendix: The Regression Model and Detailed Results

… regression equation using school-level panel data that varies by school and time: (Education Outcomes)sy= β0+β1 ln?(spending per pupil)sy +β2 (% free … average scale scores. If school spending were positively correlated … the amount of money that schools spend have little correlation …

Discussion

… how much individual public schools in Michigan spend and how well their students … the impact of additional spending was very small. This implies that simply spending more on public schools is … considering that when schools spend more, they can hire more …

The State of Student Achievement and School Funding in Michigan

… performance and education spending in Michigan over the last … explained by poverty or a few bad school systems: Michigan’s middle- … show Michigan’s per-pupil spending grew by 11 percent in real … taxpayers dedicate to public schools on a per-pupil basis and how … for this study analyzes the spending and achievement of individual …

Michigan’s Forthcoming School Funding Adequacy Study

… pioneered the “successful school district” approach, one of … estimates by asking panels of school district officials what resources … systemwide performance goals.[14] School funding adequacy studies are … method to assess Connecticut’s school finance system, which at the … demonstrated a wide variation in the spending levels of “successful school …

Data and Methods

… significant relationships between spending inputs and academic outputs … than 4,000 Michigan public schools. Spending Inputs Detailed information … Education. For each assigned school building code, yearly expenditures … aggregated building-level spending amount for each building …

Literature Review

… meaningful correlation between school spending and student outcomes. … that even large increases in spending are likely to translate into … on the relationship between school resources and student outcomes, … only for previously low-spending school districts and only for … gains for relatively low-spending schools and little or no gains …

Introduction

… and secondary education? Do school districts receive enough revenue … the common assumption that spending more on K-12 schools will … relationship between school spending and student achievement … relationship between school spending and student achievement. … relationship between school spending and student achievement. …

School Spending and Student Achievement in Michigan: What's the Relationship?

… and secondary education? Do school districts receive enough revenue … tax dollars to allocate to schools. But these concerns about the adequate level of school funding are based in part … the common assumption that spending more on K-12 schools will … relationship between school spending and student achievement …

Net Impact of Proposal 1

… Transportation Fund[*] $414,800,000 School Aid Fund $292,600,000 Earned Income … larger tax liability depends on their spending and income levels. According to the BLS, consumers in the lowest quintile spend 47 percent less annually than those … credits or above-average taxable spending, some EITC recipients may pay higher …

Allowable Uses of the School Aid Fund

… the allowable uses of the School Aid Fund. Currently, the constitution allows the SAF to support “school districts, higher education and school employees’ retirement systems[.]”[21] … constitutional prohibition against spending SAF revenue on public universities, … longer have the option of spending school aid revenue on public …

Introduction

… taxes, modify the allowed use of School Aid Fund revenues, and earmark a portion … income tax credit, increase public school funding and create new rules for the … Gov. Rick Snyder advocated for more spending on road repair and maintenance, originally … 1 would increase state taxes and spending by about $2 billion in its first …

Introduction

… contracting out for common public school services, only outsourcing … was good reason for this: school districts are prohibited from … must be covered by general school funds. When deficits occurred, school officials often looked for … addition to this rationale, spending pressures, created in large …

Conclusion

In this survey of school district contracts, it is apparent that implementation … passage of a law aiming to change school district collective bargaining does … compliant with health insurance spending reforms, there are plenty of instances … performance in Michigan’s public schools. If districts are continuing to use …

Implications for Policy Leaders

This survey suggests that simply expecting school districts to unilaterally change the way that they … work. Public Act 152, which limits the amount school districts can spend on employee health insurance, contains a specific …

Charter Conversion

… emergency include deficit spending for more than three consecutive … revenues. During the 2010-11 school year, according to the report, … recommended that the Highland Park School District be taken over by … another district or charter school for the remainder of the 2011-12 school year.[33] After procedural …

Financial Difficulties

… revenue. During the 2011-12 school year, Highland Park received … reductions in total district spending did not decrease proportionately. … overspending was the 2010-11 school year when the district spent … Highland Park one of the highest-spending districts in Michigan. The … attendance during the 2011-12 school year — only six of Michigan’s …

The Savings

… is redirected to local governments in the form of state aid payment to schools, appropriations to colleges and universities, and revenue-sharing payments … savings to accrue to taxpayers. If policymakers were to reduce overall spending, at both the local and state levels, in response to balancing public sector …

Insurance Benefits

… participate.[19] Most of the 186,000 FTE school district employees also tend … health insurance benefits.[20] School districts, charter public schools and other government educational … survey of Michigan conventional school districts, average teacher … sector employers in Michigan spend less on average providing health …

Implementing ‘Benefits in Balance’

… services to taxpayers, but the more governments spend on employment benefits, the fewer services they … Jason Richwine, for example, found that public school teachers — the most common government employee … salaries. In theory, since most local government and school district officials are free to offer and negotiate …

Benchmarking Public and Private Sector Benefits

… payments and services.[*] The public school retirement system — MPSERS — was used … include the unique time off offered to school employees. However, the cost of providing … averages, governments would need to spend $84 million more on compensation such … systems, such as retirement benefits for school employees. [†]  Using the state employee …