O Taxpayers for Michigan Constitutional Govt v. State of Michigan

CourtMichigan Court of Appeals
DecidedDecember 22, 2022
Docket334663
StatusUnpublished

This text of O Taxpayers for Michigan Constitutional Govt v. State of Michigan (O Taxpayers for Michigan Constitutional Govt v. State of Michigan) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O Taxpayers for Michigan Constitutional Govt v. State of Michigan, (Mich. Ct. App. 2022).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

TAXPAYERS FOR MICHIGAN FOR PUBLICATION CONSTITUTIONAL GOVERNMENT, STEVE December 22, 2022 DUCHANE, RANDALL BLUM, and SARA 9:00 a.m. KANDEL,

Plaintiffs,

v No. 334663 Original Action STATE OF MICHIGAN, DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET, OFFICE OF AUDITOR GENERAL, GOVERNOR OF THE STATE OF MICHIGAN, and DIRECTOR OF THE DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET,

Defendants.

ON REMAND

Before: BORRELLO, P.J., and SHAPIRO and GADOLA, JJ.1

BORRELLO, P.J.

This original action to enforce the Headlee Amendment, Const 1963, art 9, § § 25-34, returns to this Court on remand from our Supreme Court. As observed by our Supreme Court, “[a]t issue in this case is a dispute over what monies should be included in calculating ‘total state spending paid to all units of Local Government’ under § 30 of the Headlee Amendment, Const 1963, art 9, § 30.” Taxpayers for Michigan Constitutional Government v State of Michigan, 508 Mich 48, 56; 972 NW2d 738 (2021) (TMCG). Our Supreme Court has tasked this Court with determining, in the first instance, “whether state funding to PSAs [Public School Academies] authorized by a school district, an intermediate school district [ISD], or a community college

1 Judge Gadola was selected by blind draw to replace our now retired colleague.

-1- should be counted as state spending to a unit of local government for purposes of § 30 of the Headlee Amendment.” TMCG, 508 Mich at 76. This Court is also tasked with reconsidering its decision to grant plaintiffs mandamus “as it deems appropriate” and to “take other action not inconsistent with this opinion.” TMCG, 508 Mich at 81, 86. The parties and the amici have submitted supplemental briefing. Plaintiffs have amended their complaint in an attempt to cure the deficiencies in the pleading of their mandamus request, as identified by our Supreme Court. We hold that state funding to PSAs authorized by a school district, an ISD, or a community college other than the Bay Mills Community College must be counted as state spending to a unit of local government for purposes of § 30 of the Headlee Amendment. Accordingly, we deny plaintiffs’ petition for mandamus as plaintiffs have failed to demonstrate an entitlement to mandamus relief.2

Payments to PSA Authorizing Bodies

As noted, we have been tasked with determining whether state funding to PSAs authorized by a school district, an ISD, or a community college should be counted as state spending to a unit of local government for purposes of § 30 of the Headlee Amendment. Section 30 provides:

The proportion of total state spending paid to all units of Local Government, taken as a group, shall not be reduced below that proportion in effect in fiscal year 1978-79. [Const 1963, art 9, § 30.]

Section 33 of the Amendment defines the term “Local Government” as “any political subdivision of the state, including, but not restricted to, school districts, cities, villages, townships, charter townships, counties, charter counties, authorities created by the state, and authorities created by other units of local government.” Const 1963, art 9, § 33.

For the reasons detailed below, we hold that school districts, ISDs, and community college districts are units of local government for purposes of § 30. We also hold that state funding paid

2 By order entered on November 23, 2021, this Court granted plaintiffs’ motion to file an amended complaint and, thereby, allowed plaintiffs the opportunity to cure the deficiencies in the pleading of their mandamus request. Taxpayers for Michigan Constitutional Government v State of Michigan, unpublished order of the Court of Appeals, issued November 23, 2021 (Docket No. 334663). The amended complaint filed with this Court retained plaintiffs’ claims concerning public school funding under Proposal A (Count I) and funding paid to local units of government in satisfaction of the state’s funding obligations under § 29 of the Headlee Amendment, Const 1963, art 9, § 29 (Count III). Defendants now seek summary disposition as to Counts I and III. The amendments authorized by this Court did not revive the claims pleaded in Counts I and III. More importantly, our Supreme Court remanded the instant matter to this Court for two express purposes, neither of which involve revisiting the merits of Counts I and III. This Court is bound by the “rule of mandate” to strictly comply with, and not to exceed the scope of, a remand order. International Business Machines Corp v Department of Treasury, 316 Mich App 346, 350-351; 891 NW2d 880 (2016). The Court has neither the authority nor the justification to revisit either its or our Supreme Court’s rulings disposing of Counts I and III. Because the issues advanced in Counts I and III are not before this Court, summary disposition is inappropriate. Accordingly, the motion for summary disposition is dismissed.

-2- to PSAs authorized by these three units of local government must be counted as state spending to a unit of local government for purposes of § 30. A PSA is a species of public school that coexists with traditional public schools. These two species of public schools provide local units of government with the means for the delivery of free local public education services. The state funds the operation of these two species of public schools by paying a per-pupil foundation allowance to each school district, as well as to ISDs and community college districts that have authorized PSAs within their limited geographical areas of operation. In other words, the state pays this foundation allowance to units of local government. These units of local government, in turn, disburse this local public education funding provided by the state in the manner prescribed by our Legislature to pay the costs incurred by each species of public school in the delivery of free local public education, and by doing so, further our Legislature’s obligation to maintain and support a system of free public education. See Const 1963, art 8, § 2.

Our conclusions follow from an analysis that is guided by the rule of common understanding. Adair v Michigan, 497 Mich 89, 101; 860 NW2d 93 (2014); CVS Caremark v State Tax Comm, 306 Mich App 58, 61; 856 NW2d 79 (2014). “Under the rule of common understanding, this Court must apply the meaning that, at the time of ratification, was the most obvious common understanding of the provision, the one that reasonable minds and the great mass of the people themselves would give it.” CVS Caremark, 306 Mich App at 61.

We begin our analysis by acknowledging that our Legislature authorized the creation of PSAs in their current form in 1993 PA 362, which is commonly referred to as the charter schools act. MCL 380.501 et seq.; Council of Organizations and Others for Education about Parochiaid, Inc v Governor, 455 Mich 557, 560-561; 566 NW2d 208 (1997). Act 362 recognizes the following public bodies as authorizing bodies that may issue a contract to organize and operate a PSA: (1) the board of a school district that operates grades K to 12; (2) the board of an ISD; (3) the board of a community college; and (4) the governing board of a state university. MCL 380.501(a)(i)- (iv); MCL 380.502(2).

We also acknowledge that our Supreme Court recently ruled that a state university, although a public school authorizing body, is not a political subdivision of the state under § 33. TMCG, 508 Mich at 75-76. As a consequence, state spending paid to a state university cannot qualify as state spending to a unit of local government under § 30.

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