Schools, Municipalities Face More Reductions Under Snyder Proposal

Statewide funding for municipalities and schools face hits that run into the hundreds of millions of dollars under the proposed budget that Gov. Rick Snyder unveiled Thursday in Lansing.

K-12 schools face a $470 per pupil reduction that would save the state $452.5 million. He also proposed reducing statutory state shared revenue by $92.1 million and tying the remaining $200 million to an incentive plan in which municipalities would need to adopt "best practices" and "meet specific standards."

Counties also face a $51.8 million reduction in revenue sharing.

Snyder, who said he'd refund his pay except for $1 this year, spoke in broad terms emphasizing his priorities over specifics, calling the proposal an opportunity to reshape Michigan's future and set an example for the nation. He spoke for about 35 minutes before the joint session of the House and Senate Appropriations, Finance and Tax Policy Committees.

"This day should have happened a long time ago," said Snyder during the address, which was televised live on Michigan Government Television. "We shouldn't waste an opportunity. Not doing this would be kicking the can down the road. That's not why I got elected and it's not why you got elected. A lot of us are going to have to make sacrifices.

"The reason to do this isn't to avoid the negative. It's to jump to the positive."

After the governor and Lt. Gov. Brian Calley spoke, state Budget Director John Nixon focused on education, saying a system that focuses on early childhood through higher education needs to be adopted. Specifically focusing on K-12, he said districts could avoid instructional cuts if they adopt an 80-20 employer-employee split on their health care contributions. He said that would generate $300 million in savings.

In addition, if districts cut 10 percent non-instructional costs by following "best practices," it would generate another $300 million in savings.

"We feel this a very defensive plan that doesn't have to impact the classroom," he told lawmakers. "We know that's the critical area that needs to be maintained in school funding."

For a full reaction on the proposed budget's potential impact on school funding in Dearborn, check Dearborn Patch at 6 a.m. Friday.