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This paper, one of three related documents, explains a model for school finance in Michigan. First, it analyzes where school districts get their money and how they spend it. Next, it details a financial model that identifies the factors related to staff adequacy levels, estimates the strength of those factors, offers ideas for the components of a policy regarding school funding, and estimates the impact of a possible policy alternative. The paper concludes that the model can be improved in three areas. Salary data can be refined and brought up to date. More factors contributing to staff adequacy levels can be identified. Finally, the model can be observed over time to see if it consistently predicts school district behavior. (Author/LD)

This paper, one of three related documents, examines the distributions of general revenues and instructional expenditures across school districts in Michigan. It discusses the equal yield formula for the funding of public schools and examines how the formula has accomplished its objectives. The data indicate success in reducing the effects of property tax wealth on the level of school revenues and in providing some measure of property tax relief. The second half of the paper examines the state's broad goals regarding the distribution of resources in terms of three norms: equity, equality, and excellence. This section of the paper concludes that Michigan has achieved equity in the distribution of general revenues and expenditures for nearly 92 percent of its pupils. Secondly, equality has not been achieved. Finally, to achieve a minimum level for either expenditures or staff adequacy ratios, a constitutional amendment would be necessary. (Author/LD)

This paper, one of three related documents, examines statewide trends in the distribution of staff in the Michigan public schools. Along with its related documents, it provides a basis for analyzing the impact of state financing mechanisms and funding levels on the overall distribution of resources throughout the state and on the resource allocation and programmatic decisions of the individual school districts. This paper begins with a breakdown of aggregate staffing and staffing ratios and concludes with a discussion of educational equity, equality, and excellence. Graphs and tables are included. (Author/LD)

Following adoption of a district power equalizing school aid formula intended to achieve equity in the distribution of general revenue, in per pupil expenditure, and in property taxes, significant progress was made toward attaining wealth neutrality that has subsequently been eroded by a depressed state economy. (MJL)