MIPFS Newsbriefs

*While the economic news was bad, school funding didn't take a huge hit in 2008.* Part of this was because of the increase in income tax rates for FY08 (really a restoration of the rates in effect a few years ago), and because of earmarking from the new Michigan Business Tax. *The other reason is that Michigan as a whole has been losing students*, and since state money is paid out on a per-pupil basis, that means the state's overall obligations are lower. That's small comfort for districts that lose both students and money, even if their foundation allowance crept up a bit.

21 March -- The top-level negotiations among the Granholm administration and Democratic and Republican legislative leaders continued today, but news was thin on the ground. Press reports indicate that the largest sticking point so far was the Republican caucus' insistence that no revenue measures be considered for balancing the FY07 budget, and keeping the problem of the current fiscal year separate from plans for next year (fiscal 2008).

8 March -- Lawmakers representing both parties from the House and Senate did meet yesterday and today to try and hammer out a budget compromise. The talks were cloaked in secrecy, but apparently involved more than just the six lawmakers named earlier; the Governor's office was also represented, as was the Senate majority leader. The talks continue as the clock ticks on the school funding gap and the General Fund deficit.

Six members from both parties and houses will be meeting starting Wednesday (March 7) to work out a compromise on plugging the hole in the current year's budget. The group has set a March 15 deadline for their report, which is also the date by which Governor Granholm wants a budget agreement passed. Republicans have objected to the Governor's tying together solutions for the current and next fiscal years, because they feel it artificially builds pressure to increase taxes.