Snyder, Legislature Could Reduce K-12 Cuts (MI)
May 20, 2011
Lansing — Gov. Rick Snyder and legislative leaders were expected to resume talks today after coming close to an agreement Wednesday that would reduce proposed cuts to K-12 education by about $200 per student.
Leaders from both parties and Snyder left a meeting in his Capitol office shortly before 6 p.m. The Republican governor and House Speaker Jase Bolger, R-Marshall, reported “good progress” through their representatives. But Ari Adler, a spokesman for Bolger said nothing was finalized and they would continue discussions today.
The plan to restore money to schools follows a conference Monday at which officials agreed state revenues this year will be more than $428 million higher than anticipated.
“There’s still work to be done, but we’re moving in a very positive direction,” Snyder told reporters during a break.
“One of the things that’s important to me is doing this in a fiscally responsible way,” he said “We have a history in Michigan of having times somewhat improve and then not fixing the structural issues that we face.”
The budget talks were part of a busy day at the Capitol during which the Senate approved legislation requiring public employees of local governments and school districts to pay 20 percent of the cost of their health care premiums. The legislation next goes to the state House, also controlled by Republicans.
University employees and state employees who don’t already pay 20 percent of their health costs are not expected to be affected by the law without a constitutional amendment, which received the needed two-thirds approval in the Senate but is unlikely to get it in the House.
On K-12 funding, Adler said a framework was in place early Wednesday for a budget agreement that would reduce to about $100 per student the $300 per student cut Snyder recommended in his February budget.
He 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. However, 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.
Snyder’s budget sought to close what was then believed to be a $1.4 billion deficit while funding a business tax cut of close to $1.8 billion. It featured a tax on public and private pensions, elimination of the Michigan Business Tax in favor of a 6 percent profits tax that wouldn’t apply to most Michigan companies.
The budget stirred strong opposition and Snyder and the Legislature agreed to soften the pension tax and retreat on some proposals, such as total elimination of an Earned Income Tax Credit for the working poor.
Snyder said Wednesday the Legislature is on track to finalize the budget by his May 31 deadline, months ahead of the recent norm.
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 Whitmer, D-East Lansing, said, &qu ot;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.
The tax piece of Snyder’s budget is approved and awaits his signature.