Dearest reader,
Lady B has noticed quite a few 18-mill non-homestead operating proposals appearing on ballots across Michigan.
And, as usual, the words on the ballot don't exactly make school finance easy to understand. 🪶
So let's simplify it.
First, an 18-mill non-homestead operating millage generally does NOT apply to your primary residence. It generally applies to businesses, rental properties, second homes and other non-exempt property.
One mill equals $1 for every $1,000 of taxable value.
So 18 mills on $100,000 of taxable value = $1,800 per year.
Now for the school-funding side.
For 2026–27, Michigan's target foundation allowance is $10,300 per pupil. But that doesn't mean Lansing simply sends a district a $10,300 check for every student.
Think of it this way:
LOCAL OPERATING REVENUE
+
STATE AID FOUNDATION ALLOWANCE
The state funding calculation assumes the district collects its required local operating millage. If voters reject that millage, the state does NOT simply replace all of the local revenue the district didn't collect.
That means a NO vote can result in a significant loss of operating revenue for the district.
But there is another side of the ledger.
The businesses, landlords, second-home owners and other non-exempt property owners paying those 18 mills are paying REAL property taxes.
If the millage isn't authorized, they don't pay that particular local school operating levy.
Whether a landlord passes those savings to a tenant, or a business passes them to customers, is another question entirely. Nothing requires them to do so.
And then there's Headlee.
Sometimes a ballot asks voters to authorize slightly more than 18 mills so the district can compensate for possible Headlee rollbacks while still levying no more than 18 mills.
So don't assume that AUTHORIZED MILLS and LEVIED MILLS are necessarily the same thing.
The takeaway?
A YES vote has a financial consequence.
A NO vote has a financial consequence.
The important question is WHO pays, WHO receives the revenue, HOW MUCH is actually being levied, and WHAT happens under either outcome.
So when you see one of these proposals, read past the words "18 mills." Look at the actual ballot language and the district's numbers.
Lady B will bring the ledger.
You decide what the numbers mean for your community.
With receipts and respect. 🪶
#LadyBudgetdown #WithReceiptsAndRespect #MichiganSchools #SchoolFinance #PropertyTaxes #ProposalA