Anderson Economic Group Work

Expanding School Sinking Fund Taxes: Infrastructure Investment, or Backtracking on Proposal A

Michigan lawmakers have considered several pieces of legislation that would expand the allowable use of school debt, “sinking fund,” and building & site property taxes. Such legislation presents several questions to which Michigan taxpayers should have answers. These include:

  • What property tax limits were covered by Proposal A’s 3/4 super-majority vote requirement?
  • What changes have occurred in the use of school millages since Proposal A in 1994?
  • What, if any, tax increases have taxpayers already shouldered for “infrastructure”?
  • Is expanding the allowable use of “sinking fund” taxes consistent with fiscal prudence?
  • What would be the cost to taxpayers of expanding the use of debt, “sinking fund,” and building and site property taxes?
  • Are there any other laws that give school districts the ability to properly fund infrastructure?

The Michigan Chamber of Commerce Foundation asked Anderson Economic Group to address these questions, as well as to measure the expected impact on taxpayers of the proposed legislation.

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