When kids win, we all thrive.
Putting kids first. Building a stronger Michigan for everyone.
Putting kids first. Building a stronger Michigan for everyone.
Read the full proposal here (It's short! Read it!)
Constitutional amendment to: add, beginning in 2027, an additional 5% tax on annual taxable income over $1 million for joint filers and over $500,000 for single filers. This tax is in addition to existing state income taxes, and is to be deposited into the State School Aid Fund and required to be used exclusively on local school district classrooms, career and technical education, reducing class sizes, and recruiting and retaining teachers; and subject funds to annual audits.
No, The “fair share surcharge” is levied only on individuals whose annual taxable income exceeds $500,000 for single filers or $1,000,000 for joint filers. The fair share surcharge is not a tax on businesses. There are some business owners, corporate executives, and others whose individual taxable income is high enough to trigger the fair share surcharge - about 2% of all tax filers in Michigan. The 5% surcharge is only levied on their income above and beyond $500,000/$1,000,000.
Yes, the amendment states “100% of the money…must be expended to support classrooms in local school districts, including funding for career and technical education, attracting and retaining high-quality educators, and reducing class sizes. The money may not be expended for other purposes and…is subject to an annual audit.”
The lottery is an important contributor to public schools in Michigan, but probably makes up less of the total than you think. In FY2023, the lottery made up 6.2% of the School Aid Fund.
For every $1 spent on Lottery during FY23, 61 cents went to prizes, 27 cents went to the School Aid Fund, 9 cents went to retailer and vendor commissions, and 3 cents funded Lottery operations.
Yes! Recent research has consistently found that expenditure increases improve student achievement, high school graduation rates, adult income and earnings, and reduced poverty for disadvantaged students.
Because each state relies on a different mix of types of taxes (sales, property, income, etc.), it doesn’t make sense to compare the surcharge to one specific tax in another state. However, Michigan currently ranks 14th lowest in the country for average overall effective tax rate, and is lower than all neighboring Great Lakes states.
Massachusetts passed a similar fair share tax in 2022. You can learn about its incredible impact here.
While is certainly possible that some high income individuals will pursue lower taxes in other states, they can do that now. Unfortunately, when it comes to hiding their income, American millionaires and billionaires are already evading about $150 billion a year in taxes, according to the IRS. The best way to handle this is not to lower their tax rates, but to fund the IRS to audit wealthy individuals.
Like many states, Michigan starts its definition of "taxable income" with the federal adjusted gross income. You can read more details here.
Like the rest of the country, Michigan has become a more unequal state since the 1980s. The top 1% take home a greater and greater share of income than the rest of us.
Michigan also has regressive tax laws, where the highest earners pay a lower effective tax rate than everyone else.
A fair share surcharge creates more balance in our taxes, protects everyday families from rising costs, and ensures sustainable funding for our future!
SFRC led Michigan's foundational adequacy study in 2018, followed by an update in 2021, and a supplemental transportation study in 2022. These expert nonpartisan studies are the basis of the Invest in MI Kids campaign.
In 2019, Professor David Arsen at MSU compared school funding growth across states and found that Michigan came in last. This stark reality helps explain some of the reason that Michigan has fallen behind other states in recent years.
Led by the Education Law Center, this 2023 updated costing of the SFRC's adequacy study puts clear numbers on the budgetary shortfalls that our schools are facing.
In 2025, the School Finance Research Foundation found that Michigan school districts will need about $23B to maintain adequate facilities through 2033, highlighting the cost pressures that school districts are under and the urgent need to invest in MI kids.
Recruiting and retaining teachers, managing the financial challenges of declining enrollment and shrinking local tax bases - rural schools in Michigan face a particular set of challenges.
Coming soon: The Autism Alliance of Michigan is working on a fair, student-centered model for funding special education in Michigan.
Volunteering is both fun and simple! Check out this 2-minute conversation to see what it's like to collect signatures for our kids.
Press inquiries please contact info@investinmikids.org
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