Please be sure to vote on November 4th. One important issue is the Hold Harmless Renewal. Why is the Hold Harmless Renewal important? Changes in the school funding system made in 1994 negatively affected Dearborn. This is NOT a new tax. HH Basic Info
- The Hold Harmless Millage will expire in the spring of 2015. The district is asking residents to RENEW this millage for another 10 years. This is not a new tax, only a RENEWAL of an existing millage.
- The Hold Harmless Millage is made up of two parts-
- 18 mills on business and commercial property generating $27.8 million.
- 6.17 mills on homeowners generating $11.5 million
- Combined the Hold Harmless Millage generates $39.3 million or 22% of the District’s total $178.7 million budget.
- The Hold Harmless millage was first approved in 1995 then renewed in 2004.
- Prior to 1994 local property taxes paid for local schools, tax money collected in Dearborn stayed in Dearborn. This method of school funding creating some inequities in school funding across the state. Larger districts with more residents and business would collect more revenue than smaller districts with fewer homes and little business.
- In an attempt to equalize school funding across the state, and reduce property tax, a law was passed in 1994 that changed school funding. Local property taxes were sent directly to Lansing and evenly distributed on a per-student basis. This method of school funding created a guaranteed per-student funding amount for all students across the state. No more could local districts hold elections to ask voters to support the operational expense of running a district.
- The Problem with the new law was that some districts received less money per-student than what they were receiving before the passage of the law, including Dearborn.
- To correct this problem the state allowed districts to ask voters to approve a Hold Harmless Millage that would make up the difference in funding from the old method to the new method.
- The original difference between what Dearborn was receiving locally per student and what Dearborn would receive per-student from the state was $593. School district residents approved a 10- year, 6.17 mill Hold Harmless millage that would generate $593 per student in revenue. The $593 per student amount cannot change.
- Without the renewal of the millage on November 4, 2014 the Dearborn Public Schools would face drastic reductions in services to students.