[Tax and fiscal policy] is a method of encouraging certain behavior"
In an undergraduate architecture class, Madhu Rustagi Anderson (MPP ‘84) first discovered the power of environments to shape social outcomes. She remembers examining how the design of neighborhoods and public spaces could influence crime rates and residents' sense of safety, realizing that physical spaces could be a powerful lever for positive change.
At the Ford School, Madhu built on this initial interest, sharpening her analytical and problem-solving skills. She developed a deeper appreciation for the economic, legal, and social components of complex government systems—and quickly realized the importance of considering every side of an issue. "I learned to understand all perspectives to find a solution," she said.
Madhu's early professional experiences reinforced her understanding of public policy's power in shaping large-scale change. After graduating from the Ford School, Madhu found herself at Pacific Gas and Electric Company in California, navigating the complexities of utility pricing during a time of industry upheaval. Still, it was in Michigan's state government that Madhu made her most lasting impact.
As a policy staffer she worked on tax policy. Then later as deputy state treasurer at the Department of Treasury, Madhu played a pivotal role in shepherding legislation and implementing Proposal A—Michigan's most significant educational finance reform. Enacted in 1994, Proposal A was a state constitutional amendment that completely reshaped the K-12 school funding system.
When the state legislature repealed all school operating property taxes, eliminating funding for public schools, Madhu's team was tasked with reimagining the entire finance structure for Michigan schools. "Proposal A fundamentally changed how schools were financed, and also cut property taxes by putting a cap on the growth of property tax assessments in the State," she explained.
The team and others identified new revenue options—such as sales or income taxes. Voters weighed in, and ultimately, in March 1994, Michigan residents decided an increase in sales taxes would fund schools. This amendment triggered other reforms such as per-pupil funding, schools of choice, and established charter public schools.
Once Proposal A was adopted, Madhu's team managed its execution and implementation, a process that took several more years. "What's often forgotten is that the execution of a policy is so important," said Madhu. "Going through the details and determining how changes are actually implemented takes concentrated effort.."
Throughout her career, Madhu developed a deep appreciation for tax and fiscal policy, recognizing its power not only to shape markets but also to influence individual behavior and family choices. "It's a method of encouraging certain behavior," she noted, pointing out how government programs and tax systems profoundly affect people's lives. Her experience with tax policy and school finance reform highlighted how carefully designed public policy can drive meaningful change at both the individual and societal levels.
Today, Madhu serves as a senior research associate at the Citizens Research Council, where she evaluates Michigan's municipal finance system and offers insights to help local governments provide high-quality services and grow to meet the needs of their communities.
Her advice to future public policy students?
- Be open to different roles. Public policy isn't about championing a single issue; it's about understanding systems as a whole.
- Get your hands dirty. While working for big think tanks can be appealing, starting on the ground level is often the best way to launch your career.
- Think about being good leaders. Your relationships with colleagues and partners—inside and outside your organization—are really important, and they will last a long time.
- Maintain your integrity. Respect and listen to others.
- One of the best pieces of advice I ever received from a boss was: It's not enough to identify problems—you should always work toward solutions.
"And that's what public policy students do really well—they identify problems and offer solutions," Madhu said.