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Three Things to Know About the Non-Homestead Operating Millage

Most of us don’t think much about how public schools are funded in our state and in our district. And frankly, Michigan’s school funding system can be complicated.

But the non-homestead operating millage does not have to be. As we approach the November 3 election, I hope every Rockford voter understands three important things about the proposal.

1. It does not apply to your principal residence.

The non-homestead operating millage is not levied on a homeowner’s principal residence. It applies primarily to businesses, commercial and industrial properties, rental properties, second homes, and vacation homes.

This proposal replaces an existing operating millage. It does not create a new source of operating revenue for Rockford Public Schools.

2. It supports the day-to-day operation of our schools.

The approximately $9.5 million generated annually through the non-homestead millage supports the work happening in our schools every day. It helps pay for classroom instruction, teachers and support staff, student transportation, utilities, instructional materials, technology, school safety, student services, and building maintenance.

This is different from a bond or sinking fund. Those dollars are generally restricted to buildings, facilities, technology, and other capital needs. The non-homestead millage is operating revenue that supports the programs, services, and people our students rely on each day.

3. If it is not renewed, Rockford Public Schools loses approximately $9.5 million in annual operating revenue.

For the 2026-27 school year, Rockford Public Schools receives $10,300 per student through Michigan’s foundation allowance. Part of that funding comes from the local non-homestead operating millage. The state provides the remaining portion.

The simplest way to think about it is that the local revenue and the state contribution are two pieces of the same per-pupil funding. The non-homestead millage is not additional money on top of the $10,300 per student. It is already part of how that amount is funded.

If the district does not collect the full 18 mills, the state does not replace that missing local revenue. Rockford would lose approximately $9.5 million in annual operating revenue.

Part of our responsibility as a school district is making sure our community has clear and accurate information about how our schools are funded. I hope this makes an otherwise complicated topic a little easier to understand.

Dr. Steve Matthews, Superintendent