West Michigan superintendent addresses Proposal 1 impact on school funding

GRAND RAPIDS, MI -- Forest Hills Public Schools Superintendent Dan Behm continued a conversation with district families about the impact of school funding, specifically a look at how Proposal 1 in the upcoming May election will affect schools throughout the state.

In his second letter to district families, Behm explained in detail how money from Proposal 1 would be dispersed, if passed by voters on May 5.

"Proposal 1 represents a bi-partisan plan to address Michigan's deteriorating roads. The plan seeks to ensure that all taxes collected at the gas pump go solely to maintaining our roads," Behm wrote in his April 13 letter. "Proposal 1 would also amend the Constitution to restrict the use of School Aid Fund dollars to only K-12 schools, community colleges, and career and technical education. This restriction would prevent future transfers of School Aid Fund dollars to other areas of state government."

Proposal 1 would raise the sales tax and change how gas is taxed in order to raise $1.25 billion for roads. Additional money also would be raised, including $200 million for schools, $116 million for public transportation, $111 million for cities, and $173 million for the state's general fund. The ballot measure would eliminate the sales tax on fuel, but trigger new wholesale gas and diesel taxes that could rise with inflation. In year one, motorists would pay a 42-cent tax on each gallon of gas, with all resulting revenue earmarked for transportation.

Related:

Full coverage of Michigan's Proposal 1

Will Proposal 1 mean new money for Michigan's K-12 schools? The answer isn't clear

Behm explained that revenue from gas sales tax is a "significant" contribution dedicated to schools and local services, such as police and fire. With the proposal's elimination of this tax those services would lose over $700 million a year, he said. To make up for that loss, the state would increase the state sales tax from 6 percent to 7 percent.

"Importantly and with respect to the allowable uses of School Aid Fund dollars, Proposal 1 would amend the state Constitution to clarify that School Aid Fund dollars can only be used to support public elementary and secondary schools, community colleges, and career and technical education. This constitutional change would be very significant as it would prevent lawmakers from using School Aid Fund dollars for any other purpose than stated above," Behm wrote.

"Currently and problematically, the Constitution allows for School Aid Fund dollars to be used to provide funding to universities. Historically, university funding has come out of the state's general fund. Today, public universities receive $1.5 billion in state support with $1.3 billion coming out of the general fund and ($200 million) coming out of the School Aid Fund.

"Without a change in the Constitution, lawmakers would be able to move the remaining $1.3 billion from the general fund and into the School Aid Fund. This would free up $1.3 billion in the general fund to be used for any other purpose and burden the School Aid Fund with less support for K-12 education as more of the funds would be going to universities. Proposal 1 would constitutionally prohibit such actions and clearly limit the uses of School Aid Fund dollars."

If Proposal 1 is rejected by voters next month, Behm is concerned by proposed back-up legislation, which would eliminate the sales tax on gas while increasing the wholesale excise tax on fuel. School leaders say this would cause districts to lose $400 to $500 per student. In Forest Hills, this would equal about a $4.2 million loss in annual revenue, according to Behm.

"These new fuel tax revenues would be 100 percent dedicated to road repair. ... Such a cut in revenue would certainly result in the loss of staff, higher class sizes, and reductions in programs and services," Behm said. "Proposal 1 is certainly complex as it attempts to untangle aspects of the current complicated funding system for roads, public schools, and local police and fire services."

In his letter to families last month, Behm expressed "deep concern" of the state Legislature's proposed transfer of $250 million from the School Aid Fund to the state's general fund to cover a budget deficit related to business taxes.

Related: Michigan superintendent wants lawmakers to stop siphoning money from education fund

"These unprecedented actions represent a dangerous trend where the School Aid Fund - the fund voters established in the Michigan Constitution in 1994 (Proposal A) to support K-12 education - continues to be used as an ATM to siphon money away from the education of our kids," Behm wrote in the March 6 letter. "Unfortunately, state leaders did indeed enact a mid-year budgetary change that will result in the School Aid Fund having $250 million less in it at the end of the fiscal year than if they had left the money alone. Many people expressed the common concern that this money was being used for things other than support of Michigan's public schools."

Forest Hills will host two information meetings on Proposal 1 later this month. The first meeting will be at 7 p.m. Thursday, April 16, at Central High School's auditorium, 5901 Hall St. SE. The second meeting will be held at noon April 21 at the Forest Hills Fine Arts Center, 600 Forest Hill Ave. SE.

Rockford Public Schools will continue its series of informational meetings on Proposal 1 throughout April:

• 6:30 p.m. Wednesday, April 15, at North Rockford Middle, 397 E. Division
• 6:30 p.m. Thursday, April 16, at Meadow Ridge Elementary, 8100 Courtland
• 7 p.m. Monday, April 20, at Roguewood Elementary, 3900 Kroes
• 6:30 p.m. Wednesday, April 22, at East Rockford Middle, 8615 Nine Mile
• 5:30 p.m. Thursday, April 23, Rockford High School, 4100 Kroes

Kyle Moroney covers suburban schools and general assignments for MLive/Grand Rapids Press. Email her at kmoroney@mlive.com or follow her on Twitter or Facebook

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