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Michigan

Historical Background

In 1972, the Supreme Court of Michigan found that the state's school finance system violated the equal protection clause of the U.S. Constitution in Governor v. State Treasurer, 203 N.W.2d 457. However, after the U.S. Supreme Court decision in San Antonio v. Rodriguez, 411 U.S. 1 (1973), the Michigan court vacated its earlier decision, in Milliken v. Green, 212 N.W.2d 711 (1973). In 1984, a coalition of school districts again challenged the school funding formula, but the suit was dismissed on the grounds that the school districts, as creations of the state, lacked the right to sue the state.

Between 1972 and 1992, voters in Michigan defeated eleven different referenda designed to change education funding. In 1991, the legislature adopted a law requiring districts with extensive industrial and commercial property to share their property wealth with property-poor school districts and, in 1993, eliminated the use of local property taxes for school funding. In 1994, Michigan voters approved a constitutional amendment increasing the sales tax, and the legislature expanded funding for the state education foundation program. In 1997, the Supreme Court of Michigan ruled that the state must reimburse local school districts for the cost of special education services mandated by law, in Durant v. State, 566 N.W.2d 272.

Last updated: March, 2008