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Deal Close to Restore Some K-12 Funds (MI)

May 19, 2011

Lansing — A framework is in place for a budget agreement that would reduce to about $100 per student the $300 per student cut for K-12 education Gov. Ric k Snyder recommended in his February budget, an official said today.

Ari Adler, a spokesman for House Speaker Jase Bolger, said details need to be worked out, but GOP lawmakers and the governor’s office have agreed to put about another $310 million into K-12 education after recent revenue estimates show the state with more tax revenues than earlier anticipated.

But the additional money would be one-time funding with strings attached, Adler said.

He said school districts could reduce the proposed cut by $100 per pupil by agreeing to “best practices” such as bringing the percentage of health insurance premiums employees pay to a certain level, such as 20 percent. Details on the “best practices” that will be tied to the extra funding need to be worked out, he said.

The other additional state allocation of $100 per student would go directly into the school employee retirement system to reduce long-term liabilities, Adler said.

Bolger, R-Marshall, went into the negotiations with the view he would not put more money toward paying for the status quo, Adler said.

“The schools have been saying they need more money, but we’ve got taxpayers saying, ‘You’ve got to be fiscally responsible,’ ” he said.

Any cuts to K-12 education are on top of a $170 per student cut that’s already on the books.

Katie Carey, a spokesman for Senate Minority Leader Gretchen Whitmer, said, “Senate Democrats are pleased that the cuts to schools are being mitigated,” but remain opposed to using a surplus in the School Aid Fund to help pay for a business tax cut of nearly $1.8 billion.

Whitmer believes the amount of the reduced cut is close to what was informally agreed to by GOP Senate leadership when the revenue piece of the budget was approved, she said.

The tax piece of Snyder’s budget is approved and await s his signature.

Another meeting is expected at the Capitol this afternoon between Snyder, Bolger, and Senate Majority Leader Randy Richardville, R-Monroe.

A spokeswoman for Snyder could not immediately be reached.

Michigan lawmakers are working this week in conference committees to resolve the differences between their various proposals on the spending side of the budget.

Nothing has been finalized that would change cuts to higher education funding that are proposed to be in the 15 percent range, Adler said. The amounts universities will receive is under discussion, as is a controversial House amendment that would financially penalize universities that provide health care benefits to unrelated housemates of university employees, he said.

Snyder’s budget recommended no cuts to community college funding. The budget passed by the House included a 15 percent cut to community colleges; the Senate version calls for a much smaller cut.