From: Whipple, Deb (GOV)
Sent: Thursday, December 10,
2009 4:29 PM
Subject: What the Governor is talking about today
What the Governor’s Talking about
Today
Thursday, December 10,
2009
Governor Pauses Reduction in School Aid
Payments
Late this afternoon the governor announced that the
$127 per-pupil reduction in school aid payments to school districts is being
paused. The decision is due to school districts spending less than
authorized in 2009 and because of an unexpected increase in non-homestead
property tax values. A formal letter from state budget director Bob
Emerson advising lawmakers of the pause in the reduction was sent to the chairs
of the Senate and House appropriations committees earlier today.
Without the pause, state officials would have
processed the $127 per-pupil reduction in the December 20 school aid payments
today. In preparation for the payment reduction, the governor asked budget
and treasury officials for the latest information on the state school aid fund,
which precipitated today’s announcement.
The governor announced the $127 per-pupil reduction
on October 22 after treasury officials warned that declining state revenues
could lead to a potential revenue shortfall of $212 million in the fiscal year
2010 school aid budget.
Key messages:
• Unexpected changes in the school aid fund
brought about by a number of factors, including less spending by school
districts in fiscal year 2009, are resulting in a pause in the $127 per-pupil
reduction in state aid payments to schools.
• The changes in the school aid fund result from
school districts spending less than authorized in fiscal year 2009 and because
of an increase in non-homestead property tax values.
• The Granholm administration is committed to
providing school districts with the most up-to-date information on revenues that
is available so they can adjust their budgets accordingly.
• Today’s announcement does not impact the
$165 per-pupil reduction included in the fiscal year 2010 budget, or the $51
million veto of funds for 41 school districts in the state.
•
Michigan’s school funding crisis continues and the governor remains committed to
finding a way to ensure stable and adequate funding for public education next
year and beyond.
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