Public Finance and Elections
Truth-in-Taxation & Budget Hearing Reminder
Michigan law requires public schools to adopt their annual budgets by June 30 each year. A taxing entity, including a school district or ISD, must satisfy the truth-in-taxation process if its anticipated operating tax revenue will exceed what it collected in the previous fiscal year (with exceptions for certain taxable additions). Elements of this process…
Read MoreSinking Fund Expenditures 101
As school officials plan for facility updates or major purchases, a common question often arises: can sinking fund revenue be used for this expense? Sinking fund revenue, distinct from general fund money or bond proceeds, comes with its own set of statutory and voter-approved spending restrictions. Understanding these restrictions is crucial for complying with permissible…
Read MoreSave the Date: 2026 Election Dates & Deadlines
For 2026, the regular election dates for millage or bond proposals are: May 5 August 4 November 3 Because schools are responsible for any “added costs” of an election, placing proposals on the ballots during an even-year statewide primary election in August or the general election in November can significantly reduce expenses. Schools should contact…
Read MoreBeware of Penalties Under New State Budget
Last month, we provided a general overview of the new state budget, which amends the State School Aid Act (“SSAA”) for State fiscal year 2025-2026. We are now drawing attention to SSAA Section 164k to highlight potential penalties resulting from non-compliance. Section 164k mandates that schools comply with the following, or risk losing 5% of…
Read MoreMind the (Cash Flow) Gap: Borrowing Options
The State of Michigan’s new fiscal year begins on October 1 and, as of this newsletter’s publication date, the Legislature has not yet passed a state budget. For schools, this uncertainty creates multiple concerns. Without an approved budget, state aid payments could be delayed or disrupted, leading to cash flow challenges. While these concerns are…
Read MoreReminder: Budget and Financial Information Posting Requirements
School is out for the summer, and the fiscal year 2025-26 budget has been adopted, so administrators can finally rest, right? Almost! School officials must comply with State School Aid Act (SSAA) Section 18, which establishes a deadline for posting the school’s annual budget and certain required financial information. Budget Posting and Expenditure Displays Within…
Read MoreTruth-in-Taxation & Budget Hearing Reminder
Michigan law requires public schools to adopt their annual budgets by June 30th each year. A taxing entity, including a school district or ISD, must satisfy the truth-in-taxation process if its anticipated operating tax revenue will exceed what it collected in the previous fiscal year (with exceptions for certain taxable additions). Elements of this process…
Read MoreAvoid Terms That Take the “Ease” Out of Lease Financing
When schools seek to purchase new equipment (e.g., buses, copiers, or tablets), vendors frequently offer financing packages in the form of a lease purchase agreement (LPA) or other type of financing lease with a third-party leasing company. Though seemingly straightforward, the terms contained in LPAs can be extremely detrimental to schools. LPAs are different from…
Read MoreSave the Date: 2025 Election Dates & Deadlines
For 2025, the regular election dates for millage or bond proposals are: May 6 August 5 November 4 While January’s blistering cold makes springtime feel far away, schools interested in placing a millage or bond proposal on the May ballot should contact their election attorney right away. A certified copy of the board resolution approving…
Read MoreFiling Requirements for Issuers of Tax Credit Bonds
Schools that issued tax credit bonds on or before December 31, 2017 must annually complete and file Form 1097-BTC with the IRS. For tax year 2024, Form 1097-BTC must be filed by mail by February 28, 2025 or filed electronically by March 31, 2025. Tax credit bonds differ from conventional school bonds because the bond…
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