2003 Senate Bill 556 ↩

House Roll Call 750: Passed

A supplemental K-12 school aid budget for FY 2003-2004. The bill makes spending cuts and shifts of approximately $130 million to close an expected $330 million shortfall in the School Aid Fund. It amends a December, 2003 agreement struck between Sen. Majority Leader Ken Sikkema and Gov. Granholm to make up the shortfall. Part of that deal included Senate Bill 852, which would increase the income rate from 3.9 percent to 4.0 percent between Jan. 1, 2004 and July 1, 2004. However, that tax bill was defeated by the House shortly after this vote. Instead, this bill cuts an additional $22.5 million in “categorical” grants to schools and intermediate school districts, and transfers additional general fund money to the school aid fund. The bill also appropriates revenue from new lottery games, a proposed tax amnesty and boosted tax collection enforcement; and cuts $22 million previously appropriated to give laptop computers to all public school sixth-graders. The balance of the school aid shortfall will be closed by an executive order imposing “pro-rated” cuts of approximately $100 from per pupil grants to schools. The statewide average per-pupil grant is approximately $8,000, and the minimum grant is $6,700. See also House Bill 4367. Much more information on Michigan’s budget is available at <a href="http://www.mackinac.org/4964">Hot Topics: Michigan’s Budget Challenge</a> at www.mackinac.org/4964.