When Detroit voters go to the polls for the August 4 primary, they will see a proposal on the ballot regarding school funding for the Detroit Public Schools Community District. More specifically, Proposal S, as it is officially titled, asks voters whether DPSCD should be allowed to collect an operating millage from business and other non-homestead property.
An operating millage is a property tax that funds the day-to-day costs of running public schools. It covers the recurring expenses that keep classrooms functioning: teacher and staff salaries, academic programs, supplies, transportation, athletics, arts, career and college programming, and building maintenance. It is not a construction bond tied to a single project. It is the type of funding that determines whether a school district can plan, hire, and sustain services from one school year to the next.
Proposal S would allow DPSCD to collect that millage from business and non-homestead property in Detroit, including commercial, industrial, and rental properties. The rate is 18 mills, which is the standard operating millage required of all public school districts in Michigan under the state’s school funding law.
Detroit homeowners and renters would pay nothing. Proposal S does not apply to a primary residence. A Detroit resident who owns or rents the home they live in would see no tax increase if the proposal passes.
Nor is it a new or higher tax on businesses. Proposal S is a renewal of a millage Detroit voters previously approved. Non-homestead property owners already pay it. The proposal would allow the rate to continue at its current level. It does not increase the millage or expand which properties are covered.
That may sound technical. But the basic question is simple: should DPSCD be able to continue collecting local funding that helps support the day-to-day education of Detroit students?
Why the vote is happening now
Michigan law requires all public school districts in the state to levy an 18-mill operating millage on business and non-homestead property. That requirement has been in place since a 1994 statewide school funding reform that standardized how public schools are funded across Michigan.
Detroit’s school system has an unusual history within that framework.
When Detroit Public Schools Community District was created, the former district, Detroit Public Schools, remained a separate legal entity responsible for repaying decades of accumulated operating debt. The operating millage collected in Detroit went toward that debt repayment rather than to DPSCD’s current operations.
That debt is expected to be fully repaid in September 2026. With it cleared, DPSCD needs voter authorization to collect its own operating millage. District officials describe Proposal S as a replacement: the millage previously tied to legacy debt repayment would give way to one that supports current school operations, putting DPSCD on the same footing as public school districts elsewhere in Michigan.
What the money supports
Schools are funded through a combination of local, state, and federal dollars. The state provides a per-student foundation allowance, which was $10,050 per student in the most recent fiscal year, along with additional grants for students with specific needs, including special education and English language learners. Federal dollars flow through Title I, Title II, and other programs. County funds add another layer through the Wayne County Regional Educational Service Agency.
Local millage revenue is separate from all of those sources. It gives a district a measure of financial flexibility that restricted grants and per-pupil formulas do not provide.
Unlike a bond, which funds specific capital projects, an operating millage covers the everyday costs of running schools. DPSCD has said Proposal S revenue would support teacher and staff salaries, classroom supplies, academic programs, transportation, athletics, arts, music, physical education, career and college programming, student support services, and school building maintenance.
What happens if it does not pass
If voters reject Proposal S, DPSCD would not be authorized to collect the operating millage from non-homestead property. State and federal funding alone do not cover the full cost of district operations. The district has indicated it would need to reduce its budget to account for the loss of that local revenue, though it has not publicly specified which programs or positions would be affected.
The Bottom Line: What to know before voting
Proposal S is not a new tax. It is not a bond. It does not apply to primary residences. It does not raise taxes on homeowners or renters.
It asks whether DPSCD should be authorized to collect an operating millage from business and non-homestead property, the same mechanism that funds public school districts across Michigan.
For more information about Proposal S, including an explanation of how school funding works and what the millage covers, visit millage-2026.squarespace.com. Voters can confirm polling location information and review the complete ballot language through their local clerk or the Michigan Voter Information Center at mvic.sos.state.mi.us.