DPSCD operating millage proposal set to appear on August ballot

March 12, 2026

Detroit Public Schools Community District (DPSCD) will place an 18-mill operating levy on the August 2025 ballot, seeking to transfer an existing tax currently collected by the old Detroit Public Schools entity to DPSCD, which now operates the district's schools. This transfer is necessary because DPSCD must obtain voter approval to collect the operating millage by July 1, 2027, or face a $120 million deficit, as districts need to levy 18 mills to qualify for state education funding. The millage would only affect non-homestead properties like businesses and rental properties, not primary residences, and represents a continuation rather than an increase of existing taxes.

Who is affected

Detroit voters
Detroit Public Schools Community District (DPSCD)
Superintendent Nikolai Vitti
DPSCD Board of Education members, including Ida Short
Business owners in Detroit
Owners of rental properties in Detroit
DPSCD students and parents, including Aliya Moore
Treasury Department
Detroit Public Schools (the debt-collection entity)
Detroit activist Russ Bellant
Compass Strategies (public affairs firm)

What action is being taken

DPSCD is placing an 18-mill operating levy on the August 2025 ballot
The district has approved a $1.4 million contract with Compass Strategies for a voter education campaign through June 30, 2027
DPSCD is appealing the Court of Claims' decision regarding use of operating revenue for debt payment
The old DPS entity continues collecting debt millages to pay off remaining loans

Why it matters

This millage is critical for DPSCD's financial survival, as Michigan districts must levy 18 mills to receive state aid that covers the minimum per-pupil funding of $10,050. Without voter approval by July 1, 2027, DPSCD would face a $120 million deficit and lose its ability to function as a normal school district. The situation highlights ongoing consequences of the 2016 debt crisis and years of emergency management that left DPS with over $3.5 billion in debt, with current property owners and businesses now bearing the burden of financial mismanagement that occurred under state-appointed emergency managers. The outcome will determine whether DPSCD can operate with stable funding like other Michigan districts or face severe financial constraints.

What's next

Detroit voters will vote on the millage in August 2025
If the millage fails in August, it will appear on November's ballot
If it fails in November, the district may have to pay between $1 million and $2 million for a special election in May 2027
DPSCD is waiting for a decision on its appeal of the Court of Claims ruling
Vitti will work with the city to determine how many rental property homeowners would be affected and their payment amounts
The operating debt is expected to be paid off at the end of 2025

Read full article from source: bridgedetroit.com