If current programs are maintained in the face of current state budget cuts, AAPS will be facing a deficit of $17.5 million in 2011. This updated projection reveals major problems with the outmoded state financial structure.

By 2011, the current forecast is a drop of $680 million in the beginning balance of the School Aid Fund as federal stimulus dollars are exhausted. The cumulative cut over 2010 -2011 would be about $427 per student. These estimates are best case assuming a steady economy from this point, perhaps an optimistic assumption.

AAPS would receive a higher rate of return from the proposed countywide millage than from an increase of two mills in the statewide property tax for education. For every dollar Ann Arbor sends to Lansing in property tax for education, only 38¢ is returned to our schools. With the proposed millage, we will receive 71¢ for every $1 collected to Ann Arbor, with the full dollar returned to Washtenaw County schools.

Using legally mandated accounting definitions, Ann Arbor public schools spends 82% of its resources on staff with direct responsibilities for the learning of students. 14 percent of total expenditures were spent on Operations & Maintenance and Transportation. The final 4% is dedicated to General Administration, which encompasses payroll, procurement , research & evaluation, the superintendent and core staff.

If policy makers had not changed the priority of K-12 education since 2001, the percentage of our state’s resources devoted to education would have remained constant. A return to the priority of 2001-2003 would equate to an increase of about $1,050 per student in 2010 from 2009 levels for every student in Michigan public school districts and charter schools.

The discussion of “donor” and “recipient” districts is misguided. Much of Ann Arbor’s advantage in property tax base stems from being the commercial center of the region, which depends on and benefits people from around the region. Commercial property owners can also deduct a portion of their taxes, reducing the net cost. Things are more even when you look at just homestead property, and homeowners can also take advantage of both state and federal tax credits to reduce the impact of their taxes. When you take these credits into account, every district wins.

Taxpayers within the WISD will provide $30.3 million of revenue to Washtenaw County schools at a net cost of only $21.2 million due to offsetting federal tax deductions and homestead tax exemptions.

Passage of the millage would restore the total district and county tax rate for education paid by homeowners closer to the level citizens voted to support quality schools before the state changed school funding. We are funding our schools at 3 mills lower than in the late 1990s.

In 2001-2003, the School Aid fund expenditures equaled 3.66% of the state personal income. In 2010, school aid from state sources is projected to equal 3.06% of state personal income. These tax cuts have resulted in $87 million for 2010, in Washtenaw County alone, that is not available from the state to fund schools. The millage will only raise $30 million, 1/3 of what has been lost to tax cuts.