News and Analysis

Michigan Governor Rick Snyder presented his first budget proposals to the state legislature on 17 February. While it wasn't quite the "atomic bomb" Lt. Governor Brian Calley had promised, it produced shock waves nonetheless. By scrapping the Michigan Business Tax and replacing it with a much narrower corporate income tax, the proposed budget cuts business taxes by over $1 billion in 2011-12 and by $1.7 billion in the year after. To pay for this and still balance the budget, the governor wants to cut overall education spending by nearly $1.1 billion next year; his proposal also makes changes to the income tax that will increase revenues in large part by requiring retirees and low-income families to pay more in taxes. School districts may face overall reductions of $715 per pupil. Evidently, this is Gov. Snyder's vision for "reinventing Michigan."

The State's key financial agencies released their consensus revenue estimate today, updating their predictions for state tax revenue for both this fiscal year and next. The consensus estimate for School Aid revenue for this year (2009-10) is now $10.75 billion, up $292 million (2.8%) from the estimates made in January. The estimate for next year (2010-11) is now $10.83 billion, up $352 million (3.4%) from the January estimates. These new projections may limit school aid cuts for next year to the $118 per pupil passed by the Senate earlier this spring, or possibly reduce it even more.

One of the interesting things about doing local advocacy work is that it gives you a whole new perspective on how the public views school funding issues. It can also give you a detailed look at the fuzzy thinking of those who argue that our schools can't, or shouldn't, be given the resources to avoid major cuts to programs and personnel. As part of our "Project Washtenaw," MIPFS volunteers have been engaging the communities in Washtenaw County about the crisis their public schools now face. One year, a failed county millage proposal, and a bundle of desperate budget cuts later, we've learned some important lessons about how school funding is often treated in the public discourse and how that might be changed for the better. We'd like to share them with you.

*Our lawmakers are once again at a crossroads, figuring out how to manage the tremendous decline in revenues for public services, including schools. Time is running out.*

Constant readers will notice the shortage of news on the state K-12 education budget in recent months. There is a good reason: there hasn't been any.

Rushing to get budget bills passed before adjourning for the July 4th recess, the state Senate on 24 June passed its version of the K-12 school aid budget bill. Senators made only minor changes to the amended bill reported from the Appropriations Committee and voted along party lines to approve a budget that includes some $413 million in cuts to schools, including a $110 per pupil cut to local school districts and the near-elimination of several early childhood and school-readiness programs. _More...._