Special Education Millage Proposal

State and federal funding only covers around 42% of the funds needed for mandatory special education services. In order to maintain programming at current levels, the remainder of costs must be funded through a special education millage, or local public school districts and academies must cover the gap by diverting funds from general education programs and services that serve all students. This millage helps cover the gap caused by underfunding at the state and federal levels, that in May 2025 left Ottawa Area ISD public school districts and academies districts underfunded by, on average, $14.5 million, annually.

Voters considered a 20-year Special Education Millage proposal, including an 18-year renewal of the 1.2425 mills approved by voters in 2007 and a 20-year restoration of 0.5000 mills which had been reduced due to Headlee rollbacks. For a $100,000 home (taxable value $50,000), this increased annual taxes from $62.13 to $87.13 or $25.00 per year.

The proposed 20-year levy was designed to provide stable, long-term funding to meet the ongoing needs of students. Because general education funds must be appropriated to cover the existing funding gap in mandatory special education programming, this approach supported strategic planning and freed up those general education dollars to benefit all students. It also promoted consistent services. Voters approved special education millages in 1961, 1970, 1989, 1999 and 2007, which factored into the decision to pursue a long-term renewal.

All students. Local public school districts and academies in the Ottawa Area ISD benefit from restored special education funding, freeing up general education funds expected to be used to support programs and services for all students.

Michigan law mandates that school districts provide special education services for individuals with disabilities from
birth to age 26, or until they graduate from high school. Students may qualify for services under one or more of
13 disability categories:

As of May 2025, Ottawa Area ISD, in partnership with local school districts, supported the academic and functional development of over 7,000 students with disabilities, representing about 13% of the total student population in the OAISD service area.

Students eligible for special education services come from diverse backgrounds. Some are born with disabilities, while
others may become eligible due to accidents, illness, or other unexpected life events. Regardless of how
they come to need support, our commitment is to provide them with the resources and opportunities they need
to thrive and succeed.

The public school district where a private school is located is responsible for providing special education services to eligible private school students. Public schools are also required by federal law (IDEA Part B) to allocate a portion of the federal dollars it receives equitably, which includes special education and related services for eligible private school students. 

Private school students with disabilities may receive the following services from the local public school district under
the equitable services provision of the Individuals with Disabilities Education Act (IDEA):

Revenue distribution follows a formula approved by local superintendents and the Michigan Department of Education,
based on special education needs in each district. The amount of revenue that local districts and academies receive is based on the cost of educating the number of special education students residing in the district. More than 70% of the money received from the levy is sent directly to local public school districts and academies.

Expenditures are audited annually by independent auditors. Reports are submitted to the Michigan Department of Education and Treasury, and are made publicly available on our website in accordance with transparency laws. 

It's a common misconception that rising property values automatically result in significantly more funding for schools. While higher property values can increase local revenue, the Headlee Amendment limits how much OAISD can receive by reducing the tax rate (millage rate) as property values rise. This legal limit ensures that revenue growth does not exceed inflation, even if property values increase.

At the same time, schools face rising costs—such as wages, materials, and the growing complexity of student needs, particularly in special education. Additionally, state and federal funding has not kept pace with these increasing demands. As a result, higher property values do not translate into surplus school funding.

May elections are one of four regular election dates established by Michigan law. The May 2025 Special Education Millage vote gave local school districts in the OAISD timely information to budget for their required share of special education expenses for the 2025–26 school year. If the proposal would not been approved, districts would have had time to plan budget adjustments or consider placing the proposal on a future ballot.

A portion of the proposal—0.5000 mills—included restoring millage lost over time due to Headlee Amendment rollbacks, along with additional millage to offset future rollbacks. This restored amount will begin with the 2025 tax year. Collection of the renewed portion of the millage will begin in 2027, when the existing millage expires.

A Special Education Millage is an operating millage that funds the daily operation of special education programs throughout the Ottawa Area ISD service region. This includes programs and services operated by local public school districts and academies, as well as those operated directly by the OAISD and include: Early On, Ottawa Area Center, Sheldon Pines School and Young Adult Services. Contact your local public school district to learn how the current Special Education Millage provides funding for their special education programs and services—and how the proposed millage would impact them.

Local public school districts and academies receive 72% of the special education millage funds through the distribution formula defined in our Special Education Plan.

The remaining 28% is included in OAISD’s special education budget which is allocated as follows

• OAC, SPS, YAS, and Early On instructional programs - 63%
• ISD and local public school district programs administration and consultant support - 33%
• Maintenance and Operations - 3%

For more information please see the OAISD Transparency Report.

While some mentioned a 40% increase, this applied only to the special education millage portion, not to a homeowner’s overall property tax bill.

In May, 2025, the average home value in Ottawa County was around $375,000. The owner of a home valued at that amount paid approximately $233 a year (($19/month) for the existing special education millage that passed in 2007. That cost increased to about $326 a year, or $27 a month - that’s an increase of approximately $93 a year, or less than $8 a month.