Hold Harmless Renewal Vote November 4, 2014

Time To Travel Back To 1994 “To understand the future you have to go back in time” At The Movies - “Life is like a box of chocolates” was the quote of the day as Forest Gump won best picture. On TV - Seinfeld, Home Improvement, Friends, Controversy - Tonya Harding arranged to have the knee caps of rival skater Nancy Kerrigan shattered as she took part in a competition in Detroit. World Series Champ - None, MLB was on strike Gallon of Gas - $1.09 New Car - Average $12,350 Number of Students - 14,601 The Hold Harmless millage was first approved in 1995 then renewed in 2004.

History Of School Funding Prior to 1994 - Local property taxes paid for local schools 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. This method of school funding created some inequities between school districts. Per Pupil Funding

History Of School Funding After 1994- Michigan voters approve PROPOSAL A. Local property taxes went to the state and evenly distributed on a per student basis. In an attempt to equalize school funding across the state, and reduce property tax, voters approved Proposal A 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. This method of school funding created a guaranteed amount of per- student funding for all districts across the state Per Pupil Funding

History Of School Funding The Problem Under the new funding method (Proposal A), several school districts across the state, including Dearborn, would receive less money per student from the state than they were collecting under the old method. The Answer The state allowed districts to ask voters to approve a Hold Harmless Millage that would make up the difference in funding. School district residents approved a 10- year, 6.17 mill Hold Harmless tax. 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.

Hold Harmless + State Aid = Per Student Funding 1995 2004 2014 51% 64% 61% State Education Budget $6,500 State Education Budget State Education Budget 41% $7,769 29% 32% $8,000 Hold Harmless Approved 1995 The original difference between what Dearborn was receiving locally per student and what Dearborn would receive per-student from the state under what was then the new Proposal A law was $593. School district residents approved a 10-year Hold Harmless millage that would generate $593 per student in revenue. The $593 per student amount cannot change. Hold Harmless Approved 2004 Local Business Local Business Hold Harmless RENEWAL November, 2014 Local Business 8% 7% 7% $ 593 $ 593 $ 593 Homeowners Homeowners Homeowners $7,093 $8,593 $8,362 Per Student Amount

THANK YOU THANK YOU FOR YOUR SUPPORT! FOR YOUR SUPPORT! History Of School Funding In 2004 Voters Approved a 10 year Renewal of the Hold Harmless Millage. The Hold Harmless millage was first approved in 1995 then renewed in 2004. THANK YOU FOR YOUR SUPPORT! THANK YOU FOR YOUR SUPPORT!

Total $39.3 Million Two Ballot Questions-Two Renewals Part of Proposal A- Non-Homestead Millage (Business and Industry) 18 Mill RENEWAL Hold Harmless Homestead Millage 6.17 Mill RENEWAL $27.8 Million $11.5 Million 1 5 Hold Harmless Dollar RENEW November 4, 2014 The Hold Harmless millage is really two ballot questions: •One question on the ballot will ask voters to RENEW an 18 mill tax paid by business & commercial property. This generates almost $28 million. •The second Hold Harmless ballot question will ask voters to RENEW a 6.17 mill tax on homeowners that generates $11.5 million. Together these two renewals total almost $40 million or about one fifth of the district’s total $178 million budget. Hold Harmless Total $39.3 Million

Total $139.4 Million Total $39.3 Million Total Budget - $178.7 Million The Importance of Hold Harmless State Guarantee And Other Sources Total $139.4 Million Hold Harmless Total $39.3 Million 1 5 Hold Harmless Dollar 1 5 RENEW 1 5 1 5 November4, 2014 The Hold Harmless millage generates $39.3 million. This is about one fifth of our general fund budget. Dearborn Public Schools Total Budget - $178.7 Million

Can You Live With 1/5 Less? The loss of these funds would mean a 1/5 reduction in all areas that address the needs of students including personnel, programs, special services for students, facility needs, and capital improvements. Clearly, a 22% reduction in the budget would force the administration and Board of Education to make dramatic reductions across the spectrum of opportunities now offered to students. Services such as busing, programs such as art, music, and sports, co-curricular and extra-curricular activities and numerous elective classes would come under scrutiny and might need to be cut or drastically reduced. With a 1/5 reduction in the total budget classrooms would become places where only the very basic instruction would be available.

operation of all schools and teaching students. Hold Harmless Vs 2013 Bond 2014 Renewal - 6.17 mill Hold Harmless RENEWAL 2013- $76 million Bond Proposal approved by voters Voters approved a $76 million SMART Bond in November of 2013. By law the money from the SMART Bond can only be used for the specific projects outlined in the application to the state. These projects include capital improvements at several schools, new busses, and new technology. Bond money cannot be used for the day-to-day operation of the district such as buying supplies, paying employees, or other operational expenses. Hold Harmless funds are used to cover the cost of running the district. The funds from the Hold Harmless Millage are used for the operation of all schools and teaching students. By law, the Funds from the 2013 Bond Proposal can only be used for the construction and renovation of schools.

Are you registered to vote? Important Dates Are you registered to vote? - If you are 18 years old and a U.S. citizen, you can register to vote. - To be eligible to vote in the November 4 election, you must register by October 6, 2014. Where will you be on November 4, 2014? - If you can’t vote in person sign up for an Absentee Ballot- Where do I sign? Registration and Absentee Ballot Request forms are available right now at any school office, the administration building, or on-line at www.cityofdearborn.org/government/city-clerk/online-forms If you are not registered to vote please register by October 6, 2014. If you will not be in town on election day you can vote ahead of time with an Absentee Ballot.

10 Years - My How Time Flies! Both millages expire in the spring of 2015 Asking residents for a 10 year RENEWAL Not a new tax- only a RENEWAL Generates $39.3 million about 1/5 of total budget Money is used for day to day operations A review the basics one more time.

Hold Harm Less - HOLD- HARM- LESS- This is not a new tax, only a RENEWAL. This would HOLD the Funding at current levels. HARM- Without Hold Harmless funding, the district would face massive cuts that would HARM the quality of education and the level of service provided to students. Here’s a simple way to remember what the Hold Harmless millage is all about and how important it is to the Dearborn Public Schools. LESS- Can you live with 1/5 less funding for the district? 1/5 less teachers, programs, services to students, and maintenance to buildings?

Hold Harmless Renewal Can you live with 1/5 less ? Vote November 4, 2014 Thank you, please remember to vote on November 4. If you have any questions please contact the Communications Office at 827-3006 or communications@dearbornschools.org Hold Harmless Renewal