Metro Detroit school districts propose election maneuver to protect finances

School finance is a long game, and Michigan school districts are adapting in a bid to avoid losing money from operating property tax millages.

The proof is on the Feb. 27 ballot, where a dozen Metro Detroit school districts are asking for more than the standard 18 mills to levy on non-homestead property to counter what's known as the Headlee "roll back." School millage, bond and sinking fund requests are the dominant local ballot measures before voters in the tricounty area.

Michigan's Headlee tax limitation amendment limits state spending and "rolls back" millage rates when annual growth on existing property is greater than the rate of inflation.

Under Headlee, school district lose out on the full 18-mill tax levy they collect every year to fund operations. While legally schools cannot levy more than 18 mills, they can ask for a higher rate so when the rollback begins, they can collect more via the additional mills.

As an example, the 18 mills approved by voters for Ecorse Public Schools was reduced to 17.7138 mills in 2023 due to Headlee.

Some districts are increasing their ask a small fraction above 18 mills while others, such as Lake Orion in Oakland County, increase it to 21 mills as a hedge against Headlee reductions. Others like Melvindale-North Allen Park in Wayne County are asking for an 18-mill renewal for 10 years but for approval up to 28 mills.

“This is becoming increasingly more commonplace," said Craig Thiel, research director at the Citizens Research Council of Michigan. "Over the last couple decades, schools have not wanted to have their hands tied to generating revenues they can control. They control so few of the dollars that schools get anyway."

Under state law, the maximum rate is 18 mills. The proposals essentially asks voters to approve a constant 18 mills that won't be reduced through property tax growth.

"The rollbacks are a fraction of the mills, but it means a lot when you have a large tax base," Thiel said.

Plymouth-Canton Community Schools is asking for an 18-mill renewal for 20 years and approval of up to 22 mills.

District spokesman Frank Ruggirello, Jr. said the remaining amount would only be used to restore the millage lost to Headlee. The language on the ballot says so: "the remaining 2 mills are only available to be levied to restore millage lost as a result of a 'Headlee' rollback and will only be levied to the extent necessary to restore that rollback."

“This is nothing new for the district. It is because for Headlee you can never determine where home values are going to be and home values are what kicks Headlee in," Ruggirello said. "You need the 18 mills you're putting yourself in the position to get the 18 mills.”

In Lake Orion Public Schools, Superintendent Ben Kirby said the district is asking voters for the 18 mills operating renewal and approval for 21 mills. The district has a budget of $100 million and serves about 7,100 students.

"If we were to ask for 18 mils the first year, we get less than 18 mills," Kirby said, due to Headlee. "That means we wont get the full foundation allowance. That is what we are trying to avoid."

School operating millages

Wayne CountyDearborn: 18 mill renewal (10 years) through 2034 generating $41 million in 2025.Melvindale-North Allen Park: 18 mills replacement (10 years) through 2033. Would approve up to 28 mills. Generates $7.66 million in 2024.Plymouth-Canton Community Schools: 18 mills renewal (20 years) through 2044. Would approve up to 22 mills. Generates $33.5 million in 2025.Van Buren Public Schools: 18 mills renewal (8 years) through 2032. Would approve up to 19.3197 mills. Would generates $13.25 million in 2025.

Oakland CountyRochester Community Schools: 18 mills operating renewal (5 years) through 2029. Would approve up to 18.5004 mills and generates $24.57 million in 2025.Lake Orion Public Schools: 18 mills operating replacement (10 years) through 2034. Would approve 21 mills and generate 10.6 million in 2024.South Lyon: 18 mills operating renewal (10 years) through 2034. Would approve 18.7151 mills and generate $15.4 million in 2025.West Bloomfield: 18 mills operating renewal (10 years) through 2034. Would approve 18.6967 mills and generates $13.4 million in 2025.

Macomb CountyLake Shore Public Schools: A proposed 11-year request for 18 mills (not a renewal or replacement) through 2034. Would approve 19.3227 mills and generate $2.63 million in 2024.Romeo Community Schools: 18 mills operating renewal (5 years) through 2029. Would approve 19.5 mills and generate $10.67 million in 2025.

School bond/sinking fund plans

Macomb CountyAlmont Community Schools: $58.4 million bond for 22 years for constructing new buildings or making renovations to existing structures, improving playgrounds and athletic fields, among other things. Would require 3.7 mills property tax, which is claimed to be 1 mill less than now applies. Estimated retirement millage: 6.27 mills.Romeo Community Schools: Would renew and restore 1.25 mill sinking fund millage (now at 1.21 mill) for five years through 2029. Would generate $3.47 million in 2025.

Oakland CountyLake Orion Public Schools: Would renew sinking fund of 1.8862 mills for 10 years through 2033 and generate $4.997 million in 2024.

Community college millage

Wayne County: Henry Ford College 4 mill operating millage for eight years. It is estimated that the 4 mills would raise $16 million operations.

Other issues

Wayne County

Grosse Ile Township: 1.1 mill increase for five years in police operating millage, generating $850,000 in first year. Romulus charter amendment: Reduce mandatory council meeting from three a month to two a month.

Oakland County Pontiac: A proposed adult use marijuana business amendment would change the definitions of individuals businesses that can apply for pot licenses. There would be new disclosure requirements on the identities of parties tied to applicants.Walled Lake public safety millage: Replace existing millage with 4.2 mill one for eight years through 2031. Existing 3.95 mill has declined to 3.7349 mills under Headlee Amendment. The new millage would generate $980,000 in 2024.Bloomfield Township library renewal: Renew 0.5047 mill for 10 years through 2033. Would generate $2.5 million in 2024.

jchambers@detroitnews.com