Michigan Legislature OKs bill that avoids further cuts in school state aid budget

Michigan Legislature approves school budget

LANSING, Mich. — Michigan’s public schools won’t get all of their financial problems fixed with a budget bill that sailed through the state Legislature on Thursday, but at least they’re safe from state aid cuts in the upcoming year.

Public schools will get a small $11 per student increase by the end of September, raising the minimum per student foundation grant received from the state to $7,162 a year but still leaving schools below 2009 funding levels. The new funding levels will remain intact for the state fiscal year that starts Oct. 1, meaning school districts will fare much better than most state programs in a budget plan that likely will be full of cuts.

Lawmakers wrapped up the $12.8 billion school aid budget before leaving town for a break expected to last at least two weeks. The Republican-led Senate passed the school aid bill 37-1, while the Democratic-led state House passed it 98-6. Democratic Gov. Jennifer Granholm will sign the bill, spokeswoman Liz Boyd said.

“It takes care of education in a difficult year,” said Sen. Ron Jelinek, a Republican from Three Oaks.

Tougher budget decisions — including those affecting prisons, social services and universities — won’t come for weeks or months.

The decisions will be more difficult than anticipated because Congress has not passed a federal spending bill that would have provided up to $560 million for Medicaid programs in Michigan in the next budget year. In a sharp contrast, the state’s school aid fund has a projected surplus of roughly $230 million — money that isn’t allocated in the new school budget bill.

In the coming months, lawmakers expect to fight over how to use those funds. Some Democrats, including House Speaker Andy Dillon, want the money reserved for schools. Some Republicans want to spend part of it to help offset an estimated $300 million deficit in the state’s general fund for the current fiscal year.

Schools want more of the surplus dedicated to their own budgets. The $11 per student increase headed their way does relatively little to offset a $165 per student cut districts absorbed entering this fiscal year.

Many districts have been helped by changes in state law to the public school employee retirement system. About 17,000 public school employees have opted to retire this year with slightly improved pension benefits, which will help some schools avoid layoffs.

The effects of the new state law and new schools budget will vary from district to district, but they’re not a cure-all for district finances.

“Most districts are going to have to move forward with (cuts),” said Don Wotruba, deputy director of the Michigan Association of School Boards. “They’ll still have to adjust their budgets downward to the new reality.”

Sen. Bruce Patterson, a Republican from Canton Township, was the only senator to vote against the bill.

Those voting against it in the House were Rep. Justin Amash, a Republican of Kent County’s Cascade Township; Rep. Vicki Barnett, D-Farmington Hills; Rep. Lisa Brown, D-West Bloomfield; Rep. Cindy Denby, R-Fowlerville; Rep. Tom McMillin, R-Rochester Hills; and Rep. Bill Rogers, R-Brighton.

Members of the House who did not vote were Rep. John Espinoza, D-Croswell; Rep. Tim Moore, R-Farwell; Rep. Tom Pearce, R-Rockford; and Rep. Coleman Young II, D-Detroit.