Legislature Approves Restoring Some Funding to State’s Schools (MI)

July 2, 2010

The Michigan Legislature approved a new $12.8-billion school funding plan on Thursday that boosts state aid by $11 per pupil immediately and through the 2010-11 school year.

Gov. Jennifer Granholm will sign the budget bill, which passed on the first day of school districts ‘ fiscal year. Districts generally have already put in place their new budget plans by July 1 each year.

The new school aid budget, which takes effect Oct. 1, gives back $11 per pupil of a $165-per-pupil cut that affected schools for their recently concluded school year.

Lawmakers are not expected to finish the remaining 2010-11 state budget until after the Aug. 3 primary elections. The House and Senate recessed until July 21, although conference committees could meet to hammer out budget differences.

House Democrats and Senate Republicans agreed, for now, not to spend a $236-million surplus in the School Aid Fund. Key lawmakers say they’ll continue negotiating whether to divert some of the surplus to the state general fund, which faces a $300-million deficit this fiscal year.

Michigan’s deficit could balloon to $900 million next year if Congress does not approve extra Medicaid funding many states have requested.

A stalemate over school funding was broken Wednesday when House Speaker Andy Dillon, D-Redford Township, promised Senate Republicans that he would try to push through an early retirement plan for state employees, similar to one recently offered to school employees statewide.

Dillon said he still must reach a compromise with state employee unions, which have opposed a retirement incentive plan first proposed by Granholm. The plan would require employees who don’t retire by Oct. 1 to pay 3% of their wages toward retirement health insurance.