To: Members of the House Committee on Government Operations
From: Michigan Association of School Boards, Michigan Association of Superintendents & Administrators, Michigan Education Association, Michigan Association of Intermediate School Administrators, AFT Michigan, Michigan Association of Secondary School Principals, Michigan Alliance for Student Opportunity, Michigan Association of Elementary and Secondary School Principals, Calhoun ISD, Education Advocates of West Michigan, Capital Area Regional Education Strategy, School Equity, K-12 Alliance of Michigan, Michigan Association of Administrators of Special Education
RE: Opposition to House Bills 5872-5878 and HJR T
Date: May 4, 2026
As organizations representing public education, we are writing today to express our strong opposition to House Bills 5872-5878 and House Joint Resolution T. These bills repeal multiple important taxes that provide significant funds for our local schools and communities, in the name of property tax reform.
This one package of bills will cut more than 20% of the revenues for our schools and students. House Bill 5873 repeals the State Education Tax, which alone is 16% of the School Aid Fund (SAF) revenues at $3.1 billion. House Bill 5874 repeals the real estate transfer tax, costing the SAF $475 million. House Bill 5878 repeals the personal property tax from the items that were purposely not included when that tax policy was amended during the Snyder Administration. This is another $400 million cut to the SAF, mostly due to exempting utility personal property from the tax. The total $3.98 billion from these three bills is in addition to the revenue that will be lost to local districts from the repeal of what is known as the pop-up tax in House Bill 5872.
While House Bills 5873 and 5874 include legislative intent language to backfill the SAF for all revenue lost, it is not enforceable. Nor can the state budget support backfilling more than $3 billion to the SAF. House Bills 5872 and 5878 also significantly cut revenues to our local communities, harming their ability to serve and protect our families.
These cuts will devastate services that schools and local governments offer. It will cut necessary resources needed to make sure our students succeed and thrive, including the state’s investment in early literacy, helping to make sure our kids can read at grade level. A strong education system and vibrant communities are what drive people and businesses to stay in, move to or invest in our state. We urge you to oppose this package of bills.
If you have any questions, feel free to contact any of the organizations listed.