What effect did Proposal A have on school property taxes?

Proposal A, which was enacted in Michigan in 1994, was significant for its role in reforming the funding of public education. The primary effect of Proposal A was to reduce the existing school property tax rate on homesteads by capping it at a specified level and providing a means of funding education through other avenues, primarily the sales tax. The reduction of up to 18 mills aimed to alleviate the burden on homeowners by lowering property taxes specifically levied for schools. This reform intended to create a more equitable funding system for schools across different districts and assist in limiting the volatility of school funding that depended on local property values.

In contrast, the other options do not accurately reflect the essence of Proposal A. While it did indeed rework the funding mechanism, it did not add new taxes specifically for non-homestead properties as suggested, nor did it eliminate all property taxes for schools. Instead, it significantly altered the rate structure, focusing on providing stability and fairness in educational finance.