Monday, May 19, 2008

Michigan School Funding - Part 2, Where's It Come From?

Michigan will spend $13.4 billion on School Funding in 2008-2009 if, and this is a big if, the state foundation allowance is increased by the promised $71/$142 per student.

That funding allocation represents the biggest component of Michigan's budget followed closely by Community Health (which sees it funding growing at nearly 5 times the rate of school funding).

Many people, and more than a few elected officials, don't have a clue as to where the money comes from; to help shed some light please take a look at the following "mind map" of the School Aid money flows (NOTE: you can click on the "+" or "-" to move within the image, and the "iPaper" arrow allows you to print the image file).
Read this doc on Scribd: School Funding Map MI

The graphic shows where the money originates (which tax), how much of the aggregate total and how much of a percentage of the total each line item represents. Dedicated Michigan taxes represent 87.7% of the School Aid total ($11.733 Billion), General Fund contributions (which are funds controlled by the Legislature) represent 0.3% of the total and a modest contribution from the School Aid Stabilization fund represents 0.3% of the total. Rounding out the the total are targeted funds from the Federal Government aggregating 11.7% or $1.562 Billion.

A few highlights: Lottery contributes only 6.4% ($853 million) of School Aid, Legislators only contribute 0.3% ($43 million) to School Aid. Federal funds for IDEA represent only 2.6% ($351 million) of School Aid which falls woefully short of the Federal Promise made to states for Special Education - in fact it's less than 1/2 of what was promised to schools and children for help with special education needs.

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