We Have a Vision for Great Schools & Strong Communities!
Do you have a story to share about how school funding has affected you or your children?
What is the Invest in MI Kids Proposal?
A Constitutional Amendment to:
(1) impose a fair share surcharge on annual taxable income of more than $1,000,000.00 for joint returns of individuals and $500,000.00 for single returns of individuals at a rate of 5%, beginning with the 2027 tax year;
(2) require that money from the surcharge be spent only to support classrooms in local school districts, including funding for career and technical education, attracting and retaining high-quality educators, and reducing class sizes; and
(3) prohibit use of the money for other purposes, with spending subject to annual audits.
Why a "Fair Share" Surcharge?
A Balanced Tax Code
Michigan currently has a regressive tax code, where the highest earners pay a lower effective tax rate than everyone else. A fair share surcharge creates a new tax bracket for annual income over $500,000 for individuals and over $1,000,000 for joint filers. It makes our tax code more balanced and funds our future!
How It Works in Practice
Mary is a single woman who makes $600,000 a year
- Now: Mary pays $600,000 x 4.25% = $25,500
- With a fair share surcharge: Mary pays ($500,000 x 4.25%) + ($100,000 x 9.25%) = $30,500
Frequently Asked Questions
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.
It is certainly possible that some high income individuals will pursue lower taxes in other states, although they can do that now. However, research shows that on average, state tax levels have minimal impact on decisions to move into or out of states.
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.
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.
Background Research on School Funding in MI
School Finance Research Collaborative
What Will it Take to Achieve Funding Adequacy for all MI Students?
Michigan School Finance at a Crossroads
SFRC led Michigan's foundational adequacy study in 2018 with an update in 2021, and a supplemental transportation study in 2022.
Michigan School Finance at a Crossroads
What Will it Take to Achieve Funding Adequacy for all MI Students?
Michigan School Finance at a Crossroads
In 2019, Professor David Arsen at MSU compared school funding growth across states and found that Michigan came in last.
What Will it Take to Achieve Funding Adequacy for all MI Students?
What Will it Take to Achieve Funding Adequacy for all MI Students?
What Will it Take to Achieve Funding Adequacy for all MI Students?
Led by the Education Law Center, this is a 2023 updated costing of the SFRC's adequacy study.
Michigan Statewide School Facilities Study
MI Special Education Finance Reform Blueprint
What Will it Take to Achieve Funding Adequacy for all MI Students?
In 2025, the School Finance Research Foundation found that Michigan school districts will need about $23B to maintain adequate facilities through 2033.
MI Special Education Finance Reform Blueprint
MI Special Education Finance Reform Blueprint
MI Special Education Finance Reform Blueprint
Coming soon: The Autism Alliance of Michigan is developing a fair, student-centered model for funding special education in Michigan.
Volunteering is fun and simple. Watch this 2 minute conversation to see what it's like and then sign up to collect signatures yourself!
Press inquiries please contact info@investinmikids.org
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Paid for with regulated funds by Invest in MI Kids, PO Box 11022, Lansing, MI 48901-1022
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