Schools Brace for Second Round of Decreased State Funding
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December 9, 2009
LANSING, Mich. - While most Michigan public school students will be home for their holiday breaks and anticipating gifts, the school districts are preparing for what some expect will seem more like getting lumps of coal in their Christmas stockings.
On December 21, the second allocation of state money is being sent to schools. The first payment decreased funding per student by about $165, and another cut is expected this time, too. Michigan Education Association spokesman Doug Pratt predicts it will be as much as $600 less per student for some schools.
"Every community is going to end up dealing with that differently. There are some that were already in deficit going into this; there are others that are sliding into a deficit because of it. This is a turning point in Michigan, and our leaders need to step up and find solutions that are going to work."
Teachers have done their part, he says, by agreeing to salary and health care concessions that have saved the state over $1 billion in the last few years. In Pratt's view, it is not a spending issue, but a problem of generating too little revenue.
"Michigan gives out $6.3 billion more in tax incentives than it actually takes in, in taxes. So the first thing the legislature really needs to do is look at those incentives and make sure that we're getting the best bang for our buck."
The state House Appropriations panel meets this week to take public input and consider reallocating tax revenue, or using more stimulus money to offset the cuts. Pratt suggests the growing service industry is one area that legislators should consider taxing as a potential source for new revenue.