2003 Senate Bill 556 ↩

Senate Roll Call 628: Passed

A supplemental K-12 school aid budget for FY 2003-2004. The bill appropriates $152.4 million in new revenue to close an expected $330 million shortfall in the School Aid Fund. It is part of a December, 2003 agreement struck between Sen. Majority Leader Ken Sikkema and Gov. Granholm to make up the shortfall. Part of that deal includes 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. This bill appropriates part of that revenue, plus revenue from new lottery games, a proposed tax amnesty and boosted tax collection enforcement. It 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.