Detroit school district loses court appeal against state over paying debt with operating tax revenue

The Michigan Court of Appeals has upheld a lower court’s decision against the Detroit school district in its battle over collecting operating tax revenue.

Unless appealed again, the ruling means the Detroit Public Schools Community District will have to rely on voter approval on a ballot measure that would allow the district to collect its own operating millage for the first time. Until now, Detroit Public Schools – which now exists only to take in tax revenue and pay off old debt – collected the operating millage and DPSCD received other state funds to pay for daily operations.

Because voters renewed the levy in 2024, district officials have said voters may be confused about why another ballot measure is needed…

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