Q: Concerns have been raised about the impact of the elimination school property taxes on the outstanding debt of school districts. How is the administration addressing those concerns?

A: We were well aware of the impact of any proposals for school reform in Michigan on outstanding debt, and we addressed it in three or four different ways. First, we made a conscious policy of not changing the millage rate levied by schools for outstanding general obligation debt. It was a policy of both the legislature and the governor that the existing general obligation debt of school districts would be safe and held harmless. The millage rate will be levied in 1994 as it has in past years. So number one, all GO debt of the schools will remain, and the millage rate to support that debt will remain in place.

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