In a Nutshell

If Proposal S passes: Existing school operating taxing authority effectively would be transferred 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. Proposal S asks Detroit voters to approve the operating millage through 2045.

If Proposal S is rejected: DPSCD would have to seek approval for the 18-mill tax at another election before July 2027. Without voter approval by then, the district would need to reduce or otherwise adjust its $1.1 billion 2026-27 general fund budget by at least $112 million, or roughly 10 percent.

Major issues to consider: Voters providing authorization to eventually authorize DPSCD to levy the local school operating tax was a key part of the 2016 state-financed DPS financial recovery package. The State of Michigan provided ten years of state-financed legacy operating debt repayments. Once all DPS’s legacy debts are repaid (September 2026), the local school operating taxing authority must transfer to DPSCD to allow the district to receive its full per-student foundation allowance consistent with the local-state funding arrangement used by other Michigan school districts.