A new report commissioned by three Michigan education groups provides this breakdown of how several, seemingly minor changes in state and federal income-tax laws have had the cumulative effect of eliminating $155 million that would have been available for Michigan schools in fiscal 2002.
| FY 2002, by Policy |
In millions |
| Indexed personal exemption | -$67.6 |
| Private-pension deductions | -15.6 |
| Dividend and interest deductions | -5.6 |
| Child exemptions | -13.6 |
| Special exemptions | -15.8 |
| Dependent exemptions | -7.1 |
| College-savings-account deductions | -1.9 |
| Federal IRA changes | -27.0 |
| Federal student-loan deductions | -0.8 |
| Total | -155.0 |
SOURCE: “A Review and Analysis of Michigan Tax Policies Impacting K-12 Finances” (Executive Summary), Douglas C. Drake, 2002. (Requires Adobe’s Acrobat Reader.)
