Annual report. [1946]

9...Income and Outgo
31

IPUBLIC education in Detroit is
big business. In fact, it represents the
largest single item in the annual local tax bill
of Detroiters. The employment of approximately 192,000 men and women, the maintenance and operation of the city's 32~5
school buildings, the furnishing of books and
supplies, and the enforcement of the school
attendance laws, as well as paying the costs
for the daily transportation of several
thousand pupils who are. not served by,a
school in their immediate community,
requires the* annual expenditure of more
than $40,,000.,000.
From what source does the Board of
Education receive its income and how does
it plan its expenditures? During the school
year 1946-47, the Board received income
from two main sources: (a) local taxation
as reflected in the personal billing of taxes
to each property owner, and (b) contributions from the State of Michigan.
In the fiscal year ended June 30, the
Board levied the sum of $~25,964,~246 against
local property for the support of the city's
public schools. But this did not represent
all of the income required to pay the bills.
The State of Michigan contributed the sum
of $12~,850,000 as the state's share in meeting the cost of the local schools. * In addition, the Board of Education received a
small amount of money from special purpose
grants and from the federal government.
*This~j figure is as originally budgeted by the Board of
Education. As a result of the November election in
which the constitution was amended to return onehalf of the state sales tax to the public schools, the

From the local property tax levy for the
support of public schools in Detroit, an item
of $25,964,O00 i's realized by the apportionment of 8.65 mills for the support of the
public schools. In addition, the debt service
rate (to pay off past obligations) represented
an item of 1.492 mills. The item of 8.65 mills
actually represents the maximum for which
the Board- can levy during the year in
question for current school purposes. The
maximum for school and county purposes
in Detroit is set by law at fifteen mills.
The contribution of the state towards -the
support of Detroit's Public Schools 'is listed
under the heading "General Purpose
Grants." This includes a primary interest
fund, the general fund, and currently (for
the, first time in the history of the state)
monies from the state sales tax as provided
in a recent amendment to the constitution.
Of the $39,84~2,179 income of the Board of
Education, an amount totaling $1,835,391 is
set aside for the operation of Wayne University. An additional amount in the
sum of $1,000,000 is earmarked for the
Employees' Retirement System.
The matter of distribution of income constitutes a subject of major concern. The
Board cannot legally spend more than it
receives. It should not receive money substantially in excess of what it spends.
Consequently, the budget job of the public
schools is one requiring the most exact
estimates of the administration. The first
item of expenditure in any school system is
that to cover the- employment of teaching
personnel. In Detroit it was estimated that
$25,,438,625 would be required to pay the