Budget Update – News from Lansing
Dec 11th, 2009 by Scot Graden
LANSING – Governor Jennifer M. Granholm today announced that the $127 per-pupil reduction in school aid payments to school districts is being paused. The decision is due to school districts spending less than authorized in 2009 and because of an unexpected increase in non- homestead property tax values. A formal letter from Budget Director Bob Emerson advising lawmakers of the pause in the reduction was sent to the chairs of the Senate and House Appropriations Committees today.
Without the pause, state officials would have processed the reduction in the December 20 school aid payments today. In preparation for the payment reduction, the governor asked budget and treasury officials for the latest information on the state School Aid Fund, which precipitated today’s announcement.
“The unexpected change in the School Aid Fund, which has led us to pause the proration ordered on October 22, provides temporary relief for school districts around the state,” Granholm said. “Throughout these uncertain economic times, our focus has been on giving school districts the most up-to-date information available so they can adjust their budgets accordingly. School districts still face tough decisions about how best to deal with significant funding cuts, but we are pleased that the closing of the books for 2009 has brought some short-term relief.”