
Millage Facts
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Is a millage required?
The state of Michigan requires school districts to levy 18 mills on non-homestead properties (commercial and non-owner occupied rentals).
The tax is only on businesses – this is not a tax on homeowners.
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Have Detroit voters approved a millage before?
Detroit voters approved the renewal of the DPSCD 18 Mill Non-Homestead Operating Millage in August 2020. Since the renewal, the Operating Millage has been rolled back from 18 Mills to 16.6 Mills due to the Headlee Act. This will result in a $10M loss of funding to the District in 2024 and up to $225M over the next 10 years.
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What does Proposal S bring?
Proposal S brings the non-homestead property tax (commercial and non-owner occupied rentals) back to 18 mills -- the same rate businesses pay to support local schools in every other Michigan school district.
Proposal S
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How would an approval of Proposal S affect businesses?
Approval of Proposal S will
- Ensure Detroit businesses pay their fair share – 18 Mills.
- Require Detroit businesses to pay the exact same rate to support local schools as businesses do in every other school district in Michigan.
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How would an approval of Proposal S affect the debt issue?
Approval of Proposal S will
- Repay legacy debt from the state takeover faster.
- Allow DPSCD to exit the Financial Review Commission sooner and restore full local control.
- Save millions in interest. If businesses pay their fair share, the District won’t need to borrow money and pay high interest rates.
Millage History
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What happened in 2016?
In 2016, the state created DPSCD and assigned the Operating and Capital Debt to DPS. Proposal S will repay that legacy DPS debt. Once the legacy debt is repaid, the Operating Millage reverts to DPS.
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How is the District paying the legacy debt?
While the Operating Millage is repaying DPS debt, the state is fully funding the DPSCD Foundation Allowance. After the legacy debt is repaid using the operating millage, DPSCD will be able to issue new capital debt to address district facilities.
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What will change when the debt is paid?
After the legacy debt is repaid using the Operating Millage, DPSCD will be able to issue new capital debt to address district facilities. Operating Millages (in other districts) go to the school district's general fund to support:
- Principal and Teacher salaries
- Lower class sizes
- Athletics, arts, and other student programming
- Building repairs
- School operations – custodial, transportation