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The research reported in this document was undertaken to determine the relative costs of educating a child in a charter school and a traditional public school in Michigan. To assess the costs, the following research was done: a review of the laws that govern public schools in Michigan; a review of the statutes that govern the funding of public schools in Michigan; and three analyses to assess the relative costs of educating a child in a charter schools and a traditional public school. Following are some of the results of the analyses: (1) A review of the statutes indicated that charter schools are entitled by law to the same operational funding, or less, than the host school district, yet they receive no additional capital funding, establishing that charter schools cost taxpayers less than district schools; (2) charter schools receive $1,036 per student less, on average, than district schools; and (3) charter schools receive no capital funding, which accounts for the largest share of the disparity in funding between charter schools and traditional public schools. The report also contains findings from related research (literature reviews) of charter schools in Michigan. (Contains numerous tables.) (WFA)

In 1994, Michigan voters approved Proposal A, which reduced school property taxes, increased the sales tax, and established a per-pupil funding guarantee for public schools. This report describes the effects of Proposal A and challenges to it. Since Proposal A was implemented, funding for schools has grown substantially while property taxes have fallen, as promised. However, school districts have levied additional taxes, resulting in a millage-rate growth of over 60 percent in 6 years. Michigan legislators continue to explore ways to increase the taxing powers of local school districts beyond those allowed by Proposal A. One proposal would allow districts to use "sinking-fund" taxes to pay costs that go beyond their intended use. To better understand the impact of such legislation on taxpayers, this report simulated the effects of increased school sinking-fund taxes over a 10-year period and found a substantial tax increase. As a result, the report presents the following options for Michigan policymakers: (1) retain Proposal A; (2) consider regional taxes; (3) prohibit "double dipping"; (4) tighten allowable purposes for debt millage; (5) expand charter schools; and (6) insist on better management. (Contains nine charts and graphs, and photocopies of state documents itemizing Proposal A.) (WFA)