The Impact of Proposal A on Two Michigan School Districts


Book Description

In 1994 the state of Michigan changed its school finance system. Over a nine-month period between July, 1993, and March, 1994, state legislators and the voters of Michigan acted to change the tax structure and address funding equity for public schools. In the fall of 1994, Michigan's public schools began operating under an entirely new set of school finance reforms. The primary focus of this research is the articulation of the effects of the 1994 Michigan school funding reform (Proposal A). The purpose of this research was to conduct a policy analysis and impact analysis of Proposal A on two Michigan school districts. The research, which is drawn from Thompson (1967) and Pfeffer & Salancik (2003), traced the relationship between environment and governance actions as it pertained to fund allocation in the K-12 Michigan school system. A case study design with a qualitative emphasis was chosen as the structure of this research. The research centered upon the formulation and instrumentation of organizational changes for two northern lower Michigan school districts, as they occurred, as well as the results of those changes. Research focused around data which consisted of interviews, observational notes, state and local documents, and other artifacts. The initial focus was upon the events leading to Proposal A and why these factors necessitated change. Those data are followed by a review of the relationship between fiscal federalism, governance, and resource dependency theory and application of those findings to data relevant to the two districts in northern Michigan. This study is unique in its narrowed focus and structural specificity.







Impact of School Finance Reform on Resource Equalization and Academic Performance


Book Description

The state of Michigan radically altered its school finance system in 1994. This was a legislature-led reform that took place somewhat unexpectedly and without the intervention of any courts. The new plan, called Proposal A, significantly increased state aid to the lowest spending districts and limited future increases in spending in the richest ones. I investigate the impact of Proposal A on distribution of resources and educational outcomes in Michigan. In the process this paper offers a first detailed look at the effectiveness of a legislature-led school finance reform. Using panel data on Michigan K-12 districts from 1990 to 2001, I find that Proposal A was quite successful in reducing inter-district spending disparities. The effect on academic performance is more modest. Though there is evidence of significant gains by the lowest spending districts in state tests, as yet these do not show up in nationwide tests like NAEP and ACT. The results are largely unchanged when I use Indiana and Ohio as control states.