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 |  The Associated Press -
Nov-06-2009Mich. House taps 2010 stimulus funding for schools(topic overview)
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Gov. Jennifer Granholm said Thursday night that if the state Senate passes the bill the House passed to use $184 million more in federal stimulus funds to reduce the depth of cuts for K-12 education in this year's budget, she'll sign it. Gov. Jennifer Granholm said she'll support a measure passed by the House today that would use remaining stimulus money to avoid deep cuts to school districts. She said it's only a temporary solution. "If it comes to my desk, I'll sign it," Granholm said this afternoon after meeting with parents and educators at the Macomb Intermediate School District. She said, "It's basically kicking the can down the road. [1] The Democratic House bill also calls for reinstating half of the $51.5 million that Granholm ordered cut from 39 specific school districts that are relatively high-cost. "This bill goes to the Senate, and let's see if they do the right thing and put the funds in this bill so that we can get these schools whole," said Rep. Mark Corriveau, D-Northville, whose home school district is among the hardest hit by cuts. Senate GOP spokesman Matt Marsden said tapping extra federal money for schools this year will create bigger problems next year, when lagging state revenues are expected to force more reductions.[2] House Bill 4860, sponsored by Terry Brown, D-Pigeon, would tap $184 million in American Recovery and Reinvestment Act money that was to be used in the state School Aid Fund in the next fiscal year, fiscal 2011. The money would instead be used this year to reduce an upcoming $127 per-pupil cut to $10 per pupil. The Granholm administration in October notified school districts that they would receive the $127 per-pupil cut because of new estimates of declining revenues in the School Aid Fund.[3] Granholm opposes giving businesses a tax break if it relies on freezing workers' tax credits, even if it means more money for schools. The governor said she cut $127 per student because state revenues are falling, creating a $212 million hole, and she doesn't want to wait until a revenue estimating conference in January to adjust school aid payments. Republicans dispute that the school aid budget is in the red and say any shortfall can be addressed with the extra $100 million they've suggested. School districts have said that, regardless of the size of the cut, they'll to have to slash staff and services halfway through the school year to make ends meet. Brad Biladeau of the Michigan Association of School Administrators said lawmakers aren't living up to their vow to support public education. "This is just more political posturing, and it's predicated on more promises," he said.[4]
DETROIT, MI (Michigan Radio) - Governor Granholm says she will sign legislation to use federal stimulus money to shore up the K-12 budget if it reaches her desk. She says she still prefers her own plan for raising revenue. That includes scaling back tax loopholes for some businesses, and extending the cigarette tax to include loose tobacco and small flavored cigars. "So my request to the Legislature is that they use that fund - the Recovery Act fund - for for next year, when we face an enormous cliff, and we still have deep cuts to make, and not kick the can down the road," she said. Granholm has put schools on notice that they will see about a $300 per-student cut unless the Legislature plugs a hole in the school aid fund.[5] Marsden said that link could be broken. The state has cut more than $500 million in school aid for this year, which amounts to $600 per pupil or more for some districts, including Northville, Harper Woods, Livonia and Avondale. Granholm, in Macomb County on Thursday, said she would accept using $184 million in federal stimulus money to restore some of those cuts. She added, "It's basically kicking the can down the road.[2] "While it moves the ball down the road, it will by no means get us across the finish line." Lawmakers voting against using the stimulus money said the state was wrong to solve its current budget problems with money it should be saving for next year, when schools are likely facing cuts of $300 to $400 per student even if the $184 million in federal stimulus funds is still available.[4]
The Michigan House of Representatives voted today to restore a large portion of the cuts in per-pupil spending on K-12 education by using $184 million in federal stimulus funds that were set aside to help balance next year's budget. "While this plan will help ease the pain felt by schools across the state, districts are still going to see significant cuts.[6] Deep cuts in state aid to schools stirred action Thursday, as the House voted 74-29 to restore $184 million using federal stimulus money set aside for fiscal year 2011.[2]
The plan could create bigger problems for next year. The House voted to use $184 million in federal stimulus money to eliminate about a third of this year's funding cut for schools.[7] John Helmholdt is spokesman for Grand Rapids Public Schools. He said it's hard to be against funding for schools, but this plan could create more problems. "If there's one thing, there's one message, we don't need a short term solution," he says. "And this is kind of smells like a short term solution that may have a longer term impact unfortunately." Michigan schools are facing a cut of about $300 per student this year. The plan to use the stimulus money this year still has to be approved by the Senate, and be signed by the governor.[7]
We will be back at it again in a couple more months." Granholm said she'll sign it to avoid the nearly $300 per students school districts would absorb this school year. After the private meeting she held with Macomb parents and educators, she called on the Legislature to come up with a solution in the week that remains for them to act. Parents who spoke this afternoon said they're concerned about the impact continued cuts are having on their children's education. Marilyn Rolfe, a parent of two children in the Center Line school district, said she will consider leaving Michigan if things don't improve.[8] Last month, Michigan public school districts suffered a double setback when the governor signed a school aid bill that cut $165 per pupil in funding as well as another $127 per pupil in additional cuts due to a shortage in school aid funding. 39 high-spending districts lost funding when the governor cut $52 million earmarked for those districts in the wake of 1994 Proposal A school finance reform. Granholm said her request of the Legislature would eliminate the $127 per pupil cut as well as the cut of the $52 million in 20-j funding.[9] Earlier, the House passed a supplemental school aid appropriations bill that would use federal stimulus funds to give back most of a $127 per student cut ordered by Granholm on Oct. 23 because tax receipts that feed the school aid fund are down due to the failing economy.[9] By a mostly party-line vote of 74-29 on Thursday, a majority of House members said the $184 million should be used to help schools avoid all but $10 of a $127-per-student cut Granholm ordered last month. Schools still would see their funding drop by the equivalent of $165 per student. That was the decrease lawmakers passed in the school aid budget for the fiscal year that started Oct. 1.[4]
Clinton Township -- Governor Jennifer Granholm said today she has asked the Legislature to pass three revenue-generating measures that will save $212 million in cuts for Michigan schools. It has one week to act. She also said she'd sign a measure the House passed today that would use stimulus money to help lessen school cuts. Granholm made the announcements as she met with a group of education and community leaders this afternoon in Clinton Township.[10] Gov. Jennifer Granholm said she'll support a measure passed by the House today that would use remaining stimulus money to avoid deep cuts to school districts. She said it's only a temporary solution.[8] The state House has passed a measure to use federal stimulus money to stave off most of an impending $127 per-pupil cut facing school districts.[3] LANSING, Mich. (NEWSCHANNEL 3) - The education funding battle continues in Lansing. Thursday the state House voted to use federal stimulus money to help reduce the cuts districts will see this year.[11] LANSING, Mich. — The Michigan House voted to tap federal stimulus money set aside for next year to soften a cut in school funding now, but it's unlikely the move is going to win the support of the state Senate.[4] LANSING, MI (MPRN) - The state House has voted to dig deeper into its bank of federal stimulus money to try and avert big cuts to schools before the end of the year.[12]
The House is "trying to take $184 million in federal stimulus money that we've all agreed that we're going to need to not run off a cliff in the next fiscal year. and ignoring $100 million in revenue that's sitting there available for use," said Matt Marsden, spokesman for GOP Senate Majority Leader Mike Bishop of Rochester.[4] A Senate Republican spokesman said the House should tap $100 million saved by freezing a tax credit for low-income workers rather than the stimulus money. A bill to do that has passed the Senate but has not been taken up by the House, in part because the bill is tied to one that would begin rolling back a business tax surcharge this year.[4] "The House has $100 million in revenue in the Earned Income Tax Credit freeze bill that Democrats refused to use. Granholm called on the Legislature to freeze the personal exemption on the income tax at the same level it is this year. It is not a tax increase, Granholm said, but it would generate $55 million for the school aid fund. The second measure she supports is to take 13 percent off the loophole and exemptions that special interests have carved into the tax structure, she said. A third measure would be to tax loose tobacco and flavored cigarillos at the same level as cigarettes.[9] The first measure is to freeze the personal exemption on the income tax at the same level it is this year. It is not a tax increase, Granholm said, but it would generate $55 million for the school aid fund. The second measure would take 13 percent off of the loophole and exemptions that special interests have carved into the tax structure, she said. "For example the oil and gas companies get a double deduction," she said. "If they were to pay 13 percent of what everybody else pays and we were able to put that money toward the schools that would generate $150 million."[10]
Senator Valde Garcia, R-Howell: "The version that the House passed today virtually uses up all the stimulus dollars, and our concern with that is that next year the funding crisis for schools will be even worse, and we will be left with no money." Garcia said the Senate has already approved a plan, their version would generate funds by adjusting the state's tax credits. Garcia: "We provided an option that they can act on now that would provide 100 million dollars to schools." [13] "The schools are going to suffer if don't do something. I thought we should use it (the money) this year, because I am worried about programs being destroyed by these budget cuts, programs that can't be recovered by this money next year." said Representative Mark Meadows, D-East Lansing. The House has made it's final decision, but the plan may have a tougher time making it through the Senate.[13] Democratic Representative Terry Brown chairs the House schools budget subcommittee. He says plugging the hole in this year's budget will give schools time to plan. "School districts, I think, if we can get the money to come this year, they will appreciate understanding where they are set for next year. Even if it's a larger hole, they need to do planning for that hole," says Brown, "Where we are this year is schools don't know how much they have, so this will actually help them prepare for next year."[12]
There was one item in that bill that does help in that regard, however, and that is a provision that requires the legislature to finalize the next fiscal year's school aid budget on June 1 instead of October 1 each year. This is a very good idea and one that is long overdue. As it stands, the local school districts have to set their budgets for the next school year in July but they don't have any idea what the state funding package is going to look like until October, nor do they begin to get any state aid until October. They're left guessing at what the legislature is going to do and it forces school districts to borrow money every year to cover their expenses between July and October.[6] The House bill passed Thursday also had an amendment that would restore $52 million for high-spending school districts that was eliminated in a line-item veto when Granholm signed the school aid budget.[9] The bill also would give back half of the nearly $52 million Granholm vetoed from 39 of the state's wealthier districts and spend an equal amount on school districts at the lower end of the scale. House Democrats say they'd pay for this with a mix of tax and fee hikes that have yet to pass the House and are unlikely to pass the Senate.[4] The bill even contains a provision calling for an additional $52 million to restore half the cuts made by Gov. Granholm by line-item veto to the state's highest spending school districts and also supplement funding for the state's poorest school districts.[6]
The money to restore the $52 million would come from the Michigan Future Fund, a pot which does not yet have a revenue source. Michelle Pugh, a parent with three students in the Utica Community Schools, said she wants the Legislature to work with the governor to find a solution. "This is about our kids," she said. "They are going to have to come together so that we don't have further cuts to our schools and additional impacts on the classroom. It's not right." Marilyn Rolfe, a parent of two young children in the Center Line Public Schools, said she may leave the state. "I will do whatever it takes to get my kids a quality education and if that means I move out of state, I will do it," she said.[9] "We have to find other ways through reforms and revenues to provide our students with high quality education," said Christine Johns, superintendent of Utica Community Schools. Over the past seven years the district has had to cut $42 million from its budget. The district faces a $20 million reduction this year.[10]
"We're creating false hopes out there," said Rep. David Hildenbrand, R-Lowell. Supporters, however, said school districts simply couldn't cope this year with cuts ranging from nearly $300 per student for all school districts to more than $600 for the 39 losing the extra funding.[4]
The bill would replace $184.9 million in school aid revenue with $184.1 million in stimulus cash. This would free up funding to eliminate all but $10 per student of the $127 a pupil proration.[9] Marsden called on House Democrats to approve a Senate bill that would add $100 million to school aid by halting a scheduled increase in the Earned Income Tax Credit for low-income families.[2] Every dime spent on interest is a dime that can't be spent on the education of students. The legislature needs to set the school aid budget before the local schools set their budgets. That's the only rational way to do things which probably explains why we don't do it that way. In order to become law, this bill would have to be passed by the Republican-led Senate.[6]
That would increase state aid to schools by about $115 per pupil more than the new budget signed last week by Gov. Jennifer Granholm. Majority Republicans in the Senate oppose the idea, though Granholm said she would back it.[2] School districts shouldn't count on getting any of the money back just yet, given the reaction of Republicans who control the Senate. Granholm said Thursday she would sign the bill if it got to her desk, but she'd prefer a longer-term option.[4] "If it comes to my desk, I'll sign it," Granholm said this afternoon after meeting with parents and educators at the Macomb Intermediate School District. She said, "It's basically kicking the can down the road.[8]
Granholm met with parents and educators at the Macomb Intermediate School District, where parents expressed concern about the impact of state cuts. Marilyn Rolfe, a parent of two in the Center Line school district, said she will consider leaving Michigan if things don't improve.[2] Today's roundtable discussion was one of several Granholm is conducting with educators and parents around the state. She's been to communities including Rochester, Traverse City and Muskegon. Granholm will continue her meetings in Monroe on Friday and the Plymouth-Canton School District on Monday, said Megan Brown, the governor's deputy press secretary.[10]
The state still needs to qualify for the additional $184 million federal grant though by matching school spending from 2006. Governor Granholm says she'll apply for a waiver just in case, to make sure Michigan does not miss out on the extra money.[14]
GRAND RAPIDS, MI (Michigan Radio) - A new plan in the state House could reduce a deep cut in school funding this year.[7] Laura Kropp, a board member for the Mount Clemens Community Schools, said the district has had to make some pretty deep cuts. Kropp said she supports Granholm's revenue generating plan. "I think the three points for revenue are essential," she said.[9]
The plan would also require the legislature to provide additional funding to schools that have received even larger cuts.[13] Investing in our children is the best decision we can make right now. With tough economic times ahead, we must do all we can to protect their future and find ways to avoid even deeper cuts to funding next year." The problem is that this only kicks the can down the road, leaving next year's school budget in even worse shape.[6] "Investing in our children is the best decision we can make right now," said Rep. Terry Brown, D-Pigeon, who oversees the public schools appropriations subcommittee. "With tough economic times ahead, we must do all we can to protect their future and find ways to avoid even deeper cuts to funding next year."[4]
The measure now goes to the state Senate, where the idea is getting a cool reception. "The stimulus dollars aren't going to be around forever," says Republican Majority Leader Mike Bishop, "and it they try to plug that hole using these phantom dollars, their putting themselves in a bigger hole next year. We've got to figure out how to resolve this funding gap better than just short-term fixes." Bishop says he'd prefer to focus on finding a long-term solution to stabilizing school funding. [12] The bill has to be approved in the Senate, where it faces opposition from majority Republicans who are opposed to using the stimulus money set aside for next year. "This is absolutely ridiculous," said Matt Marsden, spokesman for Senate Majority Leader Mike Bishop, R-Rochester.[9] The plan is not expected to pass in the Senate though, which has talked about using that stimulus money to help low-income workers.[11]
Right now it stands at a loss of nearly $300 per student, but the stimulus money would nearly cut that in half.[11] Governor Granholm has warned superintendants that schools will lose almost 300 dollars per student if the Legislature does not come up with more money.[12] The Democratic governor has urged lawmakers to restore the $127 per student by raising taxes on tobacco products other than cigarettes, reducing certain business tax breaks and eliminating an inflationary increase in the state income tax personal exemption.[4]
Wednesday a state House committee passed a bill that would boost funding by $117 per pupil by tapping into stimulus funding.[14] The problem is that the money would come out of the Michigan Future Fund which, for all practical purposes, does not exist. It has no funding source and the House didn't bother giving it one. They might as well pledge to fund the schools with monopoly money.[6] The House has not approved the Senate's plan. If the two can not come to an agreement on a plan, Michigan's schools will be left to figure out the financial problems on their own.[13] Thursday the House of Representatives approved a plan that would restore about 184-million dollars to school districts.[13]
The House's plan would force lawmakers to complete the school aid budget by June 1st, instead of October 1st.[13]
"Using Recovery Act dollars merely kicks the can down the road and creates a bigger problem for the school aid fund next year," Granholm spokeswoman Liz Boyd said.[4] The stimulus funds were being saved to help schools get past a budget shortfall next year.[12] The funds that would come from federal stimulus dollars, is money many lawmakers planned to save for next year.[13]
The state had been planning to save that stimulus cash for next year, when the financial picture for schools could be even worse.[7] The legislation, which now goes to the Senate, also calls for completing the annual K-12 budget by June 1 instead of the Oct. 1 deadline that is the start of the state's fiscal year.[3] A spokesman says the Senate has already approved legislation that would raise money through a freeze in the tax credit for low-income wage earners and scaling back a tax credits for filmmakers.[5]
The third measure would be to tax loose tobacco and flavored cigarillos at the same level as cigarettes. "Those three solutions would generate enough revenue to protect schools from these cuts," she said. [10] "We have to find other ways through reforms and revenues to provide our students with high-quality education," said Christine Johns, superintendent of Utica Community Schools.[9]
"I'm asking the Legislature to act." About 55 teachers, school leaders and parents attended a roundtable this afternoon to discuss their concerns and ideas about K-12 education funding at the Macomb Intermediate School District Administration Building on Hayes Road.[10] We will be back at it again in a couple more months." It's time for both parties to put aside partisan bickering and political cowardice and come up with a realistic plan to put school funding in this state on a solid footing.[1]
The bill also would provide $800,000 for school bus inspections, which were previously funded at $1.4 million but eliminated in the 2009-10 budget.[9] If additional revenues are identified, the bill would also direct $25.7 million to districts that get among the highest per-pupil payments statewide, and $25.7 million to under-funded districts.[3]
Half the $52 million would be divided equally between the high-spending districts and the state's lowest-spending districts.[9]
"You can not slash your way out of a problem. I think we're going to keep revisiting this problem if we don't bring this issue to the forefront and fix this issue." Granholm will continue her meetings in Monroe today and the Plymouth-Canton Community Schools on Monday, said Megan Brown, the governor's deputy press secretary. [9]
SOURCES
1. Granholm will sign House school aid measure « Michigan Messenger
2. State aid for schools gets House boost | freep.com | Detroit Free Press
3. House passes bill to use federal stimulus money to reduce school cuts - Detroit News and Information - Crain's Detroit Business
4. The Associated Press: Mich. House taps 2010 stimulus funding for schools
5. MICHIGAN: Granholm Continues Push for School Revenues (2009-11-05)
6. House votes to reduce K-12 cuts « Michigan Messenger
7. MICHIGAN: New School Funding Plan Could Create Problems Next Year (2009-11-05)
8. Granholm says she'll back measure to tap stimulus money for schools | freep.com | Detroit Free Press
9. Granholm, GOP still disagree on how to pay for education | detnews.com | The Detroit News
10. Governor asks Michigan Legislature to pass revenue-raising measures | detnews.com | The Detroit News
11. Top Stories: Education funding battle continues | battle, continues, education : WWMT onSet Site - WAP
12. MICHIGAN: House Votes For More Education Money (2009-11-05)
13. Lawmakers work on School Funding Bill - WLNS TV 6 Lansing Jackson Michigan News and Weather - WLNS.COM |
14. Top Stories: Some school funding may be restored | restored, margin, 0in : WWMT onSet Site - WAP
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