Governor, Legislators Reduce Per-Pupil Cuts

The governor and legislative leaders announced a tentative deal Thursday that would lessen planned cuts to schools and put aside money in the state's rainy day funds.

For Clawson schools this could mean call backs for some of the 15 teachers who received lay off notices this year and reduce the $3.2 million deficit the district faces, said Business Services Director Gary Jackson.

"This is better," Jackson said. "More than likely we will be able to call back some teachers"

Gov. Rick Snyder, Senate Majority Leader Randy Richardville and House Speaker Jase Bolger made the announcement in Lansing.

The terms of the deal include:

• A per-pupil cut that would be less than $100. The original cut proposed by Snyder was to be $470 per student.
• $310 million in funding for K-12 schools more than was originally proposed. $150 million of that would be distributed on a per-pupil basis to districts that meet "specified financial best practice measures as defined in the K-12 appropriations bill." The schools would also get a one-time $160 million to help defray retirement system costs.
• $30 million in additional funding for local units of government, half of which goes to cities, villages and townships as part of the Economic Vitality Incentive grants, and the other half going for county revenue sharing.
• $50 million for the Michigan Strategic Fund for economic development activities, including brownfield redevelopment and historic preservation incentives. 
• A $25 million cap on incentives for the film industry.
• Money for the the state's rainy day funds, including $255 million for the  Budget Stabilization Fund and $133 million to a School Aid Fund reserve account.

The governor had asked for a deal by May 31.

"We will have a timely, balanced budget in place so that our municipal and school partners can accurately plan for the coming year, avoiding the chaos that too often has been foisted upon them due to Lansing's inaction," Snyder said in a statement.

Jackson said with this budget deal, districts will only lose about $270 per-pupil, noting the $170 per-pupil the state has already cut. The district will have a better idea of their budget for next school year once the legislation passes and they finalize negotiations with the Clawson Education Association, the teachers union for Clawson schools.