2007 House Bill 5375 (Authorize college tuition subsidy tax increment finance districts )

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Public Act 550 of 2008

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Introduced by Rep. Tim Melton (D) on October 25, 2007, to authorize the creation of “promise zone” tax increment financing authorities (TIFA) in a low income city, township, county, local school district, or intermediate school district, that would be authorized to “capture" one-half of any increases in the six-mill state education property tax revenue in the area and use the money to subsidize college tuition for students from the area, or allow it to be used by the public schools in the zone for certain "educational improvement activities".
- Referred to the House Education Committee on October 25, 2007.
  - Reported in the House on December 11, 2007, with the recommendation that the substitute (H-2) be adopted and that the bill then pass.
- Substitute offered in the House on December 13, 2007, to replace the previous version of the bill with one that revises various details, but does not change its substance. This version was subsequently superseded by another substitute with more changes. The substitute passed in the House by voice vote on December 13, 2007.
- Amendment offered by Rep. Judy Emmons (R) on December 13, 2007, to establish that all the students attending a school located in a "promise zone" would be eligible for the tuitions subsidies it provides, even if they don't live within the zone. The amendment failed in the House (52 to 54) on December 13, 2007. [Vote Details and Comments]
- Amendment offered by Rep. Jacob Hoogendyk, Jr. (R) on December 13, 2007, to remove a provision that would allow the "captured" tax revenue to also be used by the public schools in the zone for certain "educational improvement activities," rather than distributed to students as college tuition scholarships. The amendment failed in the House (43 to 62) on December 13, 2007. [Vote Details and Comments]
- Amendment offered by Rep. Jacob Hoogendyk, Jr. (R) on December 13, 2007, to require that any portion of the "captured" tax revenue used by the public schools in the zone for certain "educational improvement activities" rather than distributed to students as college tuition scholarships be distributed equally among all public schools within the zone. The amendment failed in the House (48 to 57) on December 13, 2007. [Vote Details and Comments]
- Amendment offered by Rep. Paul Opsommer (R) on December 13, 2007, to not take the money that would be "captured" and sent to the promise zone authorities out of the School Aid Fund, but instead take it out of the state General Fund. The amendment failed in the House (51 to 54) on December 13, 2007. [Vote Details and Comments]
- Substitute offered by Rep. Tim Melton (D) on December 13, 2007, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed in the House by voice vote on December 13, 2007.
Passed in the House (71 to 34) on December 13, 2007. [Vote Details and Comments]
Motion by Rep. Dave Hildenbrand (R) on December 13, 2007, to give the bill immediate effect. The motion passed in the House (74 to 32) on December 13, 2007. [Vote Details and Comments]
Received in the Senate on January 9, 2008.
- Referred to the Senate Education Committee on January 9, 2008.
- Substitute offered in the Senate on December 19, 2008, to replace the previous version of the bill with one that divides the provisions among this bill and Senate Bill 861, which caps the number of "promise zones" at 10. The substitute passed in the Senate by voice vote on December 19, 2008.
Passed in the Senate (31 to 0) on December 19, 2008, to authorize the creation of up to 10 “promise zone” tax increment financing authorities (TIFA) in low income and low educational attainment areas that would be authorized to “capture" a portion of any increases in state education property tax revenue in the area and use the money to partially subsidize college tuition for students from the area attending institutions in Michigan. See also Senate Bill 861. [Vote Details and Comments]
Received in the House on December 19, 2008, to concur with the Senate-passed version of the bill, which caps the number of "promise zones" at 10. Passed in the House (59 to 30) on December 19, 2008. [Vote Details and Comments]
Signed by Gov. Jennifer Granholm on January 13, 2009.

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1) Rob Peter to pay Paul [by Anonymous Citizen on December 13, 2007]
This takes money out of K-12 funding, which supports all students, and gives it to selected students for college education. Since the state ed fund is perpetually short of funds, this is a problem. What are the requirements to receive the funds? Since the district is not only low income but also educationally deficient, what are the standards?
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2) Achievement vs. Class Status [by Anonymous Citizen on November 28, 2007]
Why are we giving preference to students from low income families only? This legislation is based on the Kalamazoo Promise where the students receive free college from private funds because they attend Kalamazoo Public Schools and maintain a "C" average. The promise is based on achievement, not class status.

My family will not fall into the "low income" category and our children will have to pay for their own college. Why should they be excluded? Isn't their hard work to get good grades worth something?

Students should control funding of public universities as they do K-12 funding. Let the money follow the students.
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3) Stop All [by Anonymous Citizen on November 28, 2007]
the college funding. Let them compete with one another and you will see them learn to make education affordable for all. Then we can get rid of all the government indoctrination camps.
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