News and Analysis

22 February -- An appropriations bill on school aid for FY2008 was introduced yesterday by Sens. Michael Switalski (D-Roseville) and minority leader Mark Schauer (D-Battle Creek). The bill increases spending from the School Aid Fund by 2.9% to $11.986 billion, raising per-pupil foundation allowances by $178 from what was originally budgeted for the current year. (This brings the "basic" foundation allowance to $7,286 from $7,085, since the $23 "equity payment" for low-spending districts was factored in as well.)

15 February -- According to press reports, the Republican majority on the Senate Appropriations committee has rejected Gov. Granholm's executive order proposing limited budget cuts. Republican Senators objected to the fact that the Governor's plan depended on new taxes to make up much of the shortfall in revenue. The defeat of the executive order also leaves school funding in limbo.

Governor Jennifer Granholm's budget proposal for the 2008 fiscal year includes a number of provisions that affect school aid, including changes which would help plug the funding shortfall for the current year (fiscal 07). Below are some extracts from the release on the budget proposal with some commentary; a full analysis of the budget, and legislative action, will follow soon.