|
|
||
| February 9, 2007 IN THIS UPDATE: Governor Jennifer Granholm presented her fifth and most ambitious budget proposal to the Legislature this week. As expected, all levels of education will be spared any general operating budget cuts as the state works to pare down the current year budget deficit. For 2007-08, public schools may see inflationary increases under the recently proposed budget. This does not mean we are out of the woods just yet! 06/07 SAF Budget Implications The administration will attempt to fix the $377 million SAF shortfall with a mixture of one time fixes, cuts and revenue enhancements. The plan is as follows: 1. One Time Fixes - The policy changes how the state makes payments to the pension contributions made for state employees, community colleges and the K-12 education system. Typically, the state uses a five-year rolling average of the stock market's health to make its payments, but with stock prices high, Michigan will dust off a maneuver used by the former Gov. John Engler administration in which the pension payments depended on how the market looks during an individual year. Since Wall Street looks good in 2007, it's estimated government can save $185 million in the School Aid Fund and $93 million in the General Fund for a combined savings of $278 million by using the snapshot method this year as opposed to the five-year rolling average. 2. Cuts - The Administration is proposing making cuts to 06/07 grants not yet awarded. Amount saved $5 million. 3. Revenue Enhancements - The Governor's plan creates a 2-cent excise tax on 84 new services which alone would create $1.47 billion. The new tax comes on top of a comprehensive tax and loophole closure which would save the SAF $187 million, avoiding a prorate cut. THE REALITY: The Governor would need her entire tax package, cuts and one time fixes — the new Michigan Business Tax (MBT), the service "excise tax," the estate tax, 5-cent cigarette tax and alcohol mark-up — passed by the time the Legislature goes on its Spring Break. Otherwise, serious mid-year cuts to education, among other services would be on tap. 07/08 Budget Implications Governor Granholm is proposing increasing the base foundation grant to $7,286 per pupil from the $7,108 for the current year, schools at all levels would see essentially inflationary increases of 2.5 percent. This proposed increase is also contingent upon passage of the Governor’s entire revenue enhancement package. Highlights of the Governor’s Budget Recommendation for School Aid include:
Click here for further details. THE LEGISLATIVE PRESSURE CONTINUES!!! NEXT WEEK YOU WILL BE CONTACED BY THE MASA LEGISLATIVE ACTION NETWORK. PLEASE CONTACT YOUR LAWMAKERS. IT IS IMPERATIVE THAT WE CONTINUE THE LEGISLATIVE PRESSURE TO AVOID A MID YEAR CUT. State Supt. Mike Flanagan Testifies In Over the next few months, the Senate will begin a process to make necessary changes to improve and strengthen NCLB, and ensure its effectiveness for students, parents, and teachers. Senator Kennedy will begin hearings, roundtables, and other events to hear from experts, educational leaders, and others who know what’s working in classrooms and what isn’t. To listen to the testimony given by State Superintendent |
||
- Brad
Biladeau |
||
 |
