State Agrees on Budget Targets

While for the first time in years, according to state officials, the Michigan state budget targets have been agreed on so early, it remains unclear what it means to local schools.

Concessions for state employees could be reduced by $35 million and this would mean schools would not lose $300 per-pupil as original proposed. The deal would give school districts back $100 per student, plus another $100 if a district adopts what officials call “best financial practices," such as outsourcing non-instructional resources and finding ways to reduce costs associated with employee benefits.

“What does best practices mean?” Superintendent Wayne Wright said. “We’ve seen several different versions, and it’s only schools that qualify. I need to find out what that is.”

Wright said he has had many discussions with the business office, where Wright said, “I told the what I think it means, but I’m not sure.”

Wright said he’s still in “wait and see mode” before any action is taken.

He added that if it becomes finalized soon, officials will start crunching numbers the week of June 6.

“I want to see what the real numbers are before hacking and whacking,” Wright said.

executive director of finance and personnel Doug Busch, State Rep. Paul Scott, R-Grand Blanc and Fenton City Manager Lynn Markland did not immediately return phone messages.

A final budget must be pass in both the House and Senate by October. In the last few years, agreements on the budget haven't been reached until the "midnight hour" during marathon sessions of debate. These targets, agreed upon by both the state House and Senate, as well as Gov. Rick Snyder, could pave the way for the earliest completion of a state budget in recent years - setting a precedent for future budget negotiations.

In a press release, spokesperson Sara Wurfel in the governor's officer, said Snyder, Senate Majority Leader Randy Richardville (R-Monroe) and House Speaker Jase Bolger (R-Marshall) all emphasized that much work remains, however the setting of the spending targets at this point is something that should prevent the budget process from going into late fall.

"It's a new day in Michigan," Snyder said in the release. "We're leaving gridlock and negativity in the past. Michigan has not been well served by the annual budget dramas that have taken government to the brink of shutdown. 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."

 Highlights of the spending targets include:

• $30 million in additional funding for local units of government. Half of this will go to cities, villages and townships as part of the Economic Vitality Incentive grants, and the other half will go to county revenue sharing.
• $50 million will be added to the Michigan Strategic Fund for economic development activities, including brownfield redevelopment and historic preservation incentives.
• There will be a $25 million appropriation to the Michigan film industry to fund projects, with the primary goal of creating jobs and supporting a sustainable film industry.
• Approximately $400 million will go into "savings accounts." According to the release, the balanced budget will allow the state to pay down its long-term liabilities, allowing it to add $255 million to the Budget Stabilization Fund and $133 million to the School Aid Fund reserve account for future retirement liabilities.

 Snyder has asked the legislature to finalize the budget by May 31.