What is an ISD?

An ISD is an Intermediate School District.

Created by the Legislature in 1962, Oakland Schools is one of Michigan’s 56 educational service agencies that save money and resources for K-12 districts by:

• providing consolidated support and services
• training teachers in the latest research-based methods
• piloting innovative programs
• coordinating early childhood, special education and vocational services across the regions.

The mission of Michigan’s educational service agencies (ISDs, RESAs and RESDs) is to provide visionary leadership and quality services to strengthen teaching and learning for all citizens.

Have you ever wondered how K-12 schools in Michigan get their funding? Let’s take a look at this important topic to help you understand how schools are funded in our state.

In the state of Michigan, K-12 public school funding primarily comes from a combination of state and local sources. The funding formula involves a per-pupil allocation, meaning that schools receive a certain amount of money for each student enrolled. Here's a simplified breakdown of the key components:

The Foundation Allowance establishes a base funding level per student. This amount is determined by the state legislature through the annual budget process.

The State Aid fund is used to ensure a more equitable distribution of funds, the state provides additional funding to districts with lower property tax revenue. This is intended to bridge the gap between wealthier and less affluent districts.

In addition to the Foundation Allowance, schools may receive categorical funding for specific purposes such as special education, transportation, "At Risk" populations, or other targeted programs. These funds are designated for particular needs and are not part of the general per-pupil funding.

These three components are all managed at the state level and are supported by the following:

• A portion of the State Sales tax
• A portion of the Individual Income Tax
• The State Education tax,
• Profits from the State Lottery,
• A portion of the Michigan Use tax,
• The real estate transfer tax,
• and other smaller taxes.

Local voters can also choose to approve local property taxes called levies, or millages to contribute to their school district’s funding. The amount generated by any levy depends on the taxable value of properties within the district.

There are three types of levies. An Operating Millage is used to support the day-to-day operations of a school district. They can fund items such as teacher salaries, instructional materials, and other operational expenses.

A Bond Millage is used to finance infrastructure projects, such as building new schools, renovating existing facilities, or purchasing technology equipment.

And a Sinking Fund Millage provides dollars to maintain and repair current school facilities. This type of levy helps keep school buildings safe and up-to-date.

So, to recap: Michigan K-12 schools receive funding from the state government through the School Aid Fund, and local property taxes collected within communities. These funding sources work together to support our students, teachers, and school communities.

I hope this gives you a better understanding of how K-12 school funding works in Michigan. If you would like more information on school funding contact your local school district or Oakland Schools at CommunicationsServices@oakland.k12.mi.us