Michigan requires ballot question elections if a school district wants to issue new bonding or exceed the sinking fund levy limit or property tax cap set by law. Michigan law restricts how school districts can use excess levy limit election proceeds if approved. Also, Michigan has some of the toughest school bond laws in the nation requiring approval by the Michigan School Bond Qualification and Loan Program which is guaranteed by the Michigan Constitution. Michigan is one of a handful of states that uses the mill rate formula over a lengthy mathematical formula in expressing the property tax cap. The cap protected by the Michigan Property Tax Limitation Act of 1933.