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This report reviews the likely effect of the proposed “K-16” initiated law, which was Proposal 5 on Michigan’s election ballot on November 7, 2006. In this report we describe how each provision of the K-16 initiated law would change the School Aid Act. We then forecast, using assumptions based on historical data on Michigan’s economy, taxation, and expenditures, the cost impact that would likely result if the K-16 law is adopted and implemented. We also review a number of important Constitutional questions, and estimate the additional costs of this proposal.