"The right to criticize government is also an obligation to know what you are talking about."

-Lent Upson, first director of Citizens Research Council

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July 7, 2026

Special Friends Edition

Highlights:

• New Council Memorandum: Detroit Ballot Issue: Proposal S- School Operating Millage Replacement
• Webinar Tomorrow, July 8: Hyperscale Data Centers & Controversies in Michigan
• Coming this Week: Analysis of the Newly Adopted FY2027 State Budget
• Save the Date: Annual Public Policy Dinner, September 30

Proposal S on the August Detroit ballot asks voters to transfer existing school operating taxing authority from Detroit Public Schools (DPS) to Detroit Public Schools Community District (DPSCD). This would allow DPSCD to receive its full 2026-27 state foundation allowance of $10,300 per student. The tax is expected to generate $112 million in 2026 for the district’s portion of the state-local funding formula, or about $2,300 for each of the roughly 49,000 pupils counted in the foundation allowance formula.

A recent Research Council paper evaluates the issues that are commonly at the center of conversations about bringing hyperscale data centers to Michigan. It addresses the economic impacts, potential impacts on the electric grid, impacts on water resources, noise pollution, and other potential negative externalities

This webinar will explain why data center development proposals should be evaluated on a case-by-case basis, why the economic benefits will likely be modest except for the potential benefits from property tax revenue and community benefits agreements, and why the negative impacts are often overstated.

Later this week, the Research Council will publish an analysis of the newly adopted FY2027 state budget. While the budget is balanced and the state is on solid financial footing for the next fiscal year, signs of fiscal stress are starting to appear. New budget pressures related to changes in federal policies and ongoing spending that has been funded with one-time resources are among the causes we'll discuss. Look to our website late Wednesday or during the day Thursday to review this analysis that you'll not find from many other sources.

The Metro: Are concerns about data centers overblown?, WDET Public Radio (July 6)

Officials in Saginaw, Michigan, seek changes to property tax revenues, WVTF Public Radio (July 6)

Michigan’s new budget is billions larger than it appears | Insider, Detroit News (July 5)

Michigan lawmakers approve compromise budget after marathon session, Detroit Free Press (July 3)

New Report Says Federal Policies Are Raising Household Costs – Here’s What Michigan Families Are Paying More For., MITechNews (July 2)

Legislature returns to Lansing for July 1 budget sprint, Michigan Public (July 1)

Michigan’s AI Ambitions Collide With Growing Backlash Over Data Centers, MI Tech News (July 28)

Tim Skubick: Not in my backyard, The Daily News (June 27)

Michigan’s next governor could change how the state spends on economic development, WCMU (June 26)

Opinion | Michigan’s school funding system is overdue for a smart update, Bridge Michigan (June 26)

No middle ground on data centers, Alpena News (June 26)

Growing chorus of Michigan lawmakers call for data center regulation, Detroit Free Press (June 24)

Michigan forgives $200M in medical debt. Should it help prevent debt instead? Bridge Michigan (June 23)