The state's portion of the funding would come from tax dollars now set aside for education. In communities that create Promise Zones, half of the annual increase in the six mills homeowners pay for education would go toward the college scholarships.
But the Promise Zones could trigger economic development and boost property values, supporters said, resulting in more education tax dollars flowing into Lansing. That's what has happened in Kalamazoo.
Enrollment increased 10 percent in Kalamazoo, and property values have surged. More students are taking advanced placement classes, and more students are graduating and attending college. All around good thing. Will it work elsewhere? Most of the money still has to come from the communities themselves.
The legislation says the governing body of an eligible city, county or school district -- one that has a higher percentage of poor students than the state average of 11 percent -- may create a Promise Zone after securing funding that would cover at least two graduating classes. The state would capture taxes during those first two years and begin distributing the money in the third year as a supplement to local funds.
The amount needed for scholarships would depend upon how the Promise Zone is structured by each community. Scholarships could be restricted based on maintaining a minimum college grade point average, number of years in a school district, and type or location of the college or technical school, for example.
"The state's portion will be considerable, but a majority of the funding will come from local, private sources," said Jeff Cobb, aide to Gerald VanWoerkom, R-Norton Shores, who sponsored the bill in the Senate.
Tim Melton (D-Auburn Hills) sponsored the bill in the House. The fact that it is sponsored by a Republican in the Senate shows there might be some bipartisan co-operation on this one.
If they can work it out, it sounds like this might be an excellent idea. We need more college graduates in this state, and it is certain to attract more investment in the areas that could really use it.