Home

You are here

State budget & taxes

State education and school aid budget, and revenue sources for schools

Budget: House & Senate fire their first shots

[UPDATE: Budget bills as passed by each chamber] Before the April break, the House and Senate appropriations subcommittees on school aid issued their alternatives to the budget proposed by Gov. Snyder in February. As expected, many of the innovative provisions included in the Governor's draft have been stripped out of the subcommittee versions. Both legislative versions manage to offer higher foundation allowances while also spending less, in the case of the Senate, than the executive recommendation. The House's proposal is only marginally higher than Gov. Snyder's version. When things like that happen, it's time to check your wallet. We've got the details.

Action alert: The Great Pension Diversion

It's budget season in Lansing, and there are some important issues that need to be settled about school funding. But, as any good magician knows, the key to a good trick is to keep your audience's attention focused someplace else.

For that flashy bit of distraction, we have the wrong-headed effort to end the school pension system at a cost of more than a billion dollars a year for the next four decades. Right now, legislative leaders are not only insisting on closing the state public school retirement system (MPSERS) to new hires, but have cut off budget negotiations with Gov. Snyder because of his continued opposition to the retirement changes.

By the numbers: how the school aid budget proposals affect students

[With corrected data] Each year, we try to bring some clarity to the school aid budget debate by showing how it affects students around the state. How many students are going to receive how much of an increase (or cut)? How many students will have their school's funding keep up with inflation? How do the proposals shake out for low-income students in particular? The graphs attached to this article are one way of trying to answer that question.

Budget update: the perils of plenty

The state's top economists met last week to forecast state tax revenues for the next fiscal year, and they found both good and bad news. On the good side, projected revenues to the state School Aid Fund were higher than previous estimates, making some $153 million more available for the current fiscal year than estimated in January. Estimated revenues for next year (fiscal 2018) were also revised upward, adding almost $190 million to projected revenues, mainly on the strength of higher sales tax collections.

First look at Snyder's 2018 school aid budget

Governor Rick Snyder's proposed school aid budget for next year has been greeted with cautious optimism by public school advocates, and with good reason. All schools would receive an additional $50-$100 per pupil next year, funding earmarked for at-risk students would get a significant increase, and high schools would receive an extra $50 per student to cover their higher costs. But good ideas rarely make it through this Legislature unscathed. This budget in particular is likely to anger pro-privatization forces in the state, setting things up for a major battle over the coming months.

School Aid budget meets reality

The state's top economists met on Tuesday, and delivered the not-so-good news: state tax revenue, including school aid funding, was going to be lower than we thought, by almost $175 million this year and $160 million in the next year. Since the state budget has to be balanced, the proposed budgets for next year have to be "adjusted" accordingly.

First look: Snyder FY16-17 school aid budget

It's February, and as most of you know that means it's Budget time in Lansing. (You were thinking hearts and chocolate?)

Governor Rick Snyder presented his recommended budget last week to a packed room. The focus, not surprisingly, was on the water crisis in Flint and the restructuring of Detroit Public Schools. But the budget determines what kind of education can be offered to every child in the state, and the important bits are often in the details. At first glance, parent advocates have reason to be modestly pleased, though the reality is not as pretty as the picture painted on the cover. What happens in the end, however, depends on what comes out after the document has been reflected in the legislative funhouse mirrors - which may or may not resemble the original.

A little bit more
The governor's executive budget recommendation is headlined by a modest increase in per-pupil funding. Districts at the current minimum level of $7,391 - which includes some 60% of all students - would receive $120 more per pupil for their general operating needs. Districts at or above the state maximum (currently $778 higher or $8,169) would get an increase of $60 per pupil.

For most students, then, that means a funding increase of 1.6% - just a tad more than the projected inflation rate of 1.2%. But a goodly number of students will get a smaller relative increase: 0.7% or less, lagging inflation.

School Aid Budget - policymaking as theater

The last of three budget proposals for next year was presented in Lansing yesterday. On Wednesday, the Senate appropriations subcommittee on school aid endorsed its chairman's budget proposal, just as the corresponding House committee had done the day before. These two proposals join Gov. Snyder's proposed budget, offered in February. Now we enter the second act.

As is so often the case, the public portion of these proceedings resembles theater more than open discussion. The Governor proposes his budget with much fanfare to a joint meeting of the legislative appropriations committees. Then the subcommittees begin their work, going through the motions of asking invited guests to proffer advice. But during this time, backroom negotiations ensue, out of the pubic eye. This week, to get the budgets off their plates before the legislature's spring break, the subcommittees met again. The results of the backroom negotiations were rolled out, admired, subjected to some pro-forma criticism from the opposing party, and in due course approved and sent on their way to the full appropriations committees. All according to the script. The public was definitely NOT invited to participate. The outcome was never in doubt.

These competing proposals are really the opening offers in a game of political "Pit" which will also take place mostly out of the public eye. No one but well-heeled lobbyists are invited. But we end up living the consequences of the horse-trading we cannot see.

Time to stop using kids' schools as a cookie jar

When does a "supplemental" spending bill not actually supplement anything? When it's a "negative supplemental," of course! (In everyday language, that's a mid-year budget cut.) Who is being "negatively supplemented"? Our children.

It turns out that our state government is in the hole some $532 million for the current year because some tax credit promises to business made years ago are being presented for payment. In characteristic fashion, however, our state government has chosen to partly duck the issue by taking money from - you guessed it - our K-12 public schools. To the tune of $250 million. It's like a rerun of a bad TV sitcom.

Our story, Part I: What really happened to school funding?

The election's over - can we talk reality now?

For a while, it was gratifying that school funding issues took center stage in the recent election for Michigan's governor. Unfortunately, the amount of spin and, well, dishonesty, left the situation more confusing than before. Now that the election is over, our choices about school funding need to be based on facts, not confusion.

Here are three basic facts that everyone needs to understand. The evidence for them is indisputable:

  • Starting with the 2012 fiscal year, the Governor and Legislature together took away roughly $1 billion that would normally have gone to K-12 education.
  • Schools took a major cut that first year, but they didn't have to: the tax cuts that year made the school cuts necessary.
  • The slow growth in school funding since that first year had nothing to do with the Governor or Legislature or any decisions they made. It was all automatic.

"Come again?" you might say. That's not what we were hearing from all the campaign commercials. But it's the reality we need to come to terms with. So let's go over it in a little more detail. (Go to article >>>)

Pages

Drupal theme by pixeljets.com D7 ver.1.1