Introduced
by
To substitute an across-the-board cut of approximately $69 per pupil in all school districts for the “pro-rated” cuts contained in Gov. Granholm’s budget-cutting executive order of January, 2003. The pro-rated cut affects lower-funded rural districts more than higher-funded urban districts, due to the higher proportion in the former of "discretionary nonmandated" grants, compared to Constitutionally-mandated foundation grants. The lower-funded schools get more of the discretionary money in an effort to narrow spending disparities, so they take a relatively bigger “hit” when this funding is reduced, as under the pro-rated cuts. The executive order cuts were imposed to close an expected $127 million deficit in the fiscal year 2002-2003 state school aid fund, which is the source of school operating funds. State law requires the governor to execute the pro-rated cuts unless the legislature adopts a different formula. The pro-rated cuts for each school district can be viewed at: <a href="http://www.house.mi.gov/hfa/PDFs/proration_b.pdf "> ESTIMATED FY 2003 Proration And Other Options to Reduce Expenditures</a>, from the non-partisan House Fiscal Agency. Additional background information is available at <a href="http://www.mackinac.org/4970"> Michigan's Budget Challenge</a> and <a href="http://www.mackinac.org/5033">Information on Cuts to School Districts</a> from the Mackinac Center.
Referred to the Committee on Appropriations
