Late Friday, Michigan's top lawmakers hammered out a deal which both prevents last-minute cuts to schools and closes the current year's deficit without a tax increase, but at a cost. Most of the cuts from the regular state budget went to fund increases for health care and prison beds, both of which are projected to increase because of the poor economy. To fill the overall gap, the Legislature intends to sell rights to some future tobacco settlement fund revenues ("securitize" these revenues), among other things. Closing the current year's deficit without a tax increase is evidently part of an agreement with Senate Republicans not to block a vote on an income tax increase for fiscal 2008.
Read the rest of this story on the Michigan Parents for Schools website.
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The school funding situation is at a critical juncture. State officials have just finished their review of expected tax collections. They found that revenues earmarked for schools will come in even lower than expected in January -- $153 million lower than the earlier estimates that were already revised downward. That means a total shortfall of as much as $560 million for this year and cuts to districts of $116 per pupil right at the end of the year unless new money is found.
See the rest of this action alert on the Michigan Parents for Schools web site.
The recent fuss in the Legislature with budget agreements that weren't and battling press releases has made it fairly clear that the Republican majority in the Senate is looking for cover on increasing taxes, but Democratic lawmakers are reluctant to give it to them.
See the rest of this story on the Michigan Parents for Schools web site:
http://www.miparentsforschools.org/node/76
Gov. Granholm made it official - aid to school districts will be cut by June 1st unless the Legislature acts. Speaking to the news media, the governor reiterated her frustration with the Legislature's inaction. "Nobody is more frustrated than I am," she said. "The Legislature has not filled that hole. The clock starts ticking today." If other funds are not found, the cuts would amount to approximately $122 per pupil taken out of school districts' final aid payments, and a further $8 million in cuts to intermediate school districts.
The state Senate yesterday gave its approval to a bill that closes about $300 million of the school-aid deficit for this year, even though it fails to account for $62 million of the deficit originally projected in January. State budget officials say Governor Granholm will sign the bill. Left unresolved is the question of how the growing school aid deficit, now reckoned to be an additional $150 million below the mark, will be handled.
I saw this letter to the editor in the Ann Arbor News last Friday (13 April) and was grinning from ear to ear! In three short paragraphs, Ms. Angle, of Ypsilanti, deftly summed up the reason we invest in public education and why it's worth defending. I wanted to share it with you.
In a late night session so tense that it degenerated into 'trash talking,' the state House voted last night not to make per pupil cuts to public schools. While the vote on school aid was unusually bi-partisan, other bills considered last night - aimed at closing the State's general fund deficit - were voted up or down on nearly straight party lines and occasioned the verbal tussling.
The news just keeps getting better and better. State officials are forecasting that state tax revenue for the rest of the year will end up even below the estimates which were revised downward in January. The state budget director has notified school districts across the state that, unless the Legislature agrees on measures to close the growing school funding gap, the governor will have no choice but to order substantial cuts to school funding - on the order of $90 to $125 per pupil.
Also in response to our original letter about school funding, Gov. Granholm sent this call to action to everyone who supports our efforts (a PDF version of the original letter is attached below).
Ann Arbor Parents For Schools
Ann Arbor, MI 48104
Dear Ann Arbor Parents for Schools members:
Thank you for sharing your thoughts regarding funding for Ann Arbor Public Schools. I have made it clear that I do not intend to slash school funding in Michigan this year and that I believe we should increase our investment in K-12 schools to keep Michigan competitive.