Memo
To: Members of Michigan Legislature
From: Michigan Education Association
Michigan Alliance for Student Opportunity
Michigan Association of School Boards
Michigan Association of Superintendents & Administrators
Michigan Association of Intermediate School Administrators
Michigan Association of Secondary School Principals
Michigan School Business Officials
Michigan Elementary & Middle School Principals Association
Upper Peninsula Education Consortium
School Equity Caucus
Re: Sales Tax on Fuel
Date: November 25, 2024
As organizations committed to the success of Michigan’s students, families, and communities, we have deep concerns with any lame-duck proposal to eliminate the sales tax on fuel without a clear and specific plan to replace the more than $650 million it generates annually for public schools, about $480 per student.
This is not the first time such a proposal has been introduced. Similar attempts were also made in 2018 and 2020. The consequences of such proposals then, as now, would be devastating, forcing schools to make drastic cuts to programs, staff, and resources. Michigan’s students cannot afford to sacrifice their education to pave our roads.
The sales tax on fuel provides critical funding for Michigan’s schools, supporting essential programs, staff, and resources for over a million students. Eliminating this revenue would force districts to make impossible
decisions—larger class sizes, fewer extracurricular opportunities, reduced support services—all of which harm educational quality statewide.
Michigan’s schools are still recovering from years of underfunding. While recent funding increases have helped, they still leave schools inadequately funded. Districts cannot absorb another massive loss without significant harm to students and families.
The Growing Michigan Together report, which charted a forward looking path to growing our state’s population and economy, realized the need for strong public schools and infrastructure. Infrastructure improvements, including fixing Michigan’s roads, are critical to achieving this plan. However, if good roads lead to underfunded schools, we face a future where students leave Michigan for opportunities elsewhere. Sacrificing the future of our students to solve a different problem is a short-sighted approach that will have long-term consequences. Strong schools are just as important to our infrastructure as our roads and both are critical to building a prosperous Michigan. Families and businesses alike consider the quality of education when deciding to put down roots. Without robust investment in education, Michigan will struggle to attract and retain the talent and innovation needed to thrive. Put simply, education is economic development.
We urge lawmakers to ensure any changes to the sales tax on fuel include a comprehensive plan to fully replace the funding schools rely on with new revenue. Failing to do so will undermine not just public education but the other crucial parts of our infrastructure that families and businesses rely on. That would jeopardize Michigan’s future and the success of its students.
The choices made in the coming weeks will have lasting effects on our students and our state. It’s critical that we protect and prioritize education as a foundation for the state’s growth and success.
