Budget Disinvests in Public Education

Gov. Snyder today unveiled his budget recommendation, which custs spending for public schools while at the same time using K-12 money to pay for community colleges and universities.

Here are some of the details:

  • Cut per pupil funding by $300, in addition to the currently budgeted $170 per pupil reduction. This cut is on top of the expected increase in the retirement rate, which is expected to cost districts at least $250 more per pupil.
  • Roll funding for universities ($700 million) and community colleges ($196 million) from the General Fund to the School Aid Fund.
  • The preservation of over $1.4 billion in funding for programs that assist nearly 55,000 special education students, as well as $1.2 billion for core education programs such as services for academically at-risk students and adult education.
  • Protection of student financial aid at fiscal year 2011 levels ($51.5 million) while creating the Pathway to Higher Education grant, to be awarded to needy qualifying students at public or private schools.
  • Drop the individual income tax rate from 4.35 percent to 4.25 percent on Oct. 1; the tax will then remain at 4.25 percent rather than being decreased to 3.9 percent in future years.
  • Eliminate the Michigan Business Tax in favor of a flat 6 percent tax.
  • Eliminate the state income tax exemption for pensions, but Social Security benefits will continue to be exempt.
  • Eliminate statutory revenue sharing payments for cities, villages and townships for FY 2012, impacting 509 local units of government.

State Budget Office - click here for complete budget details.