September 2006

Proposal 06-5 A Legislative Initiative To Establish Mandatory School Funding Levels. 

The League of Women Voters of Michigan has traditionally supported adequate funding for education and recognizes the serious financial problems faced by our public education system.  However, LWVMI  believes that Proposal #5 is not the appropriate solution.  Our position on Taxation and Budgeting states, ‘The Legislature should have broad and fundamental taxing powers, free of constitutional restrictions except for constitutional provisions requiring a balanced budget and property tax millage limits.’   Although this law does not deal directly with taxes, it would seriously curtail the ability of future legislatures to manage the general fund and maintain a balanced budget in the face of unforeseen economic circumstances. The League has opposed earmarking funds in the past, most notably in opposing the Tobacco Settlement Ballot Initiative in 2002.  Overturning or modifying the law would require a 3/4 majority in the legislature, or another vote of the people. 

LWVMI is also concerned about the effect this proposal will have on funding for the many other government programs we support such as social services, public safety, natural resources.  The cost to the FY07 budget is estimated at $565 million to $707 million, and the ability to absorb future required increases will depend on the state’s ability to generate increased revenue, regardless of economic conditions in Michigan.  Last but not least, the provision that transfers responsibility for retirement benefits to the state will result in increased costs well beyond the rate of inflation, putting an even greater strain on the general fund.   This information is derived from an analysis by the Citizens’ Research Council of Michigan.  http://www.crcmich.org/election/index.html.