Millage Vote
This is an intriguing story of our times and the fascinating ways we continue to pay for public education.
Back in 1993, with the passage of Proposal A, many people believed that schools would no longer be funded through property taxes. Why, then, are we asking our Fremont residents to approve a property tax millage renewal this May 6?
Because of a quirk in that 1993 law.
Funding for school districts did change significantly in 1993-1994 when Proposal A was passed by Michigan voters. Proposal A requires the State to pay the majority of the cost, but, to receive full funding, schools must levy 18 mills on non-homestead property in their district.
If a school district’s voters do not support these 18 mills, the state does not make it up.
The awkward thing about this millage vote is that, while homeowners vote on the tax, the tax is not applied to them. Primary residences are exempt.
The tax is applied only on non-homestead properties. It is paid only by people who have second homes in the school district and by certain businesses: apartments, rental homes, vacant land, and commercial and industrial properties.
Our challenge, since this renewal vote only takes place every 5 years, is to make sure everyone understands that the 18-mill renewal is a tax applied only to businesses and second homes and not to their own home.
The revenue generated for Fremont schools from the 18 mills is more than $2.5 million annually, which is more than 10 percent of our budget. The balance of our funding for general operations comes from the state on a per-pupil basis, what is called our Foundation Allowance. We now receive $7,204 from the state for each student.
| Student Count |
2,471 |
| Foundation Allowance |
$ 7,204 |
| Total Allowance | $17,801,084 |
| Less Non-Homestead Tax | $ 2,566,138 |
| Total State Payment | $15,234,946 |
By law, to obtain the total Foundation Allowance, we must collect a non-homestead millage for a portion of our budget. The State reduces its payment by this amount and pays only the balance. It is critical to note that the state always assumes we will collect these 18 mills; their payment to us will always factor in this money.
You can see why it is critical that we continue to collect these 18 mills on non-homestead property in the school district, and why we are telling our story once again.
John D. Kingsnorth
Superintendent
Fremont Public Schools
(231) 924-2350
jkingsnorth@fremont.net