Snyder Says Budget Agreement Will Lessen Cuts to Schools

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.

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

Reached shortly after the deal was announced on Thursday, Debbi Hartman, community relations director for Rochester Community Schools, said it was not clear how the news would affect an anticipated budget shortfall in Rochester. The district is facing an estimated $17 million shortfall; at the most recent Board of Education meeting earlier this month, school administrators recommended spending down part of the district's fund balance to help counter the budget deficit.

The state cuts to K-12 education funding would have to be substantially less to have an impact in Rochester, Hartman said.

The terms of the state deal announced Thursday include:

• $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 budget agreement 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.

A statement issued by the Michigan Education Association suggested this latest agreement had strings attached.

"Even with the changes included in today's announcement, schools face major budget cuts and layoffs," the statement said.

In Rochester, a "" is planned for 6:30 p.m. Monday at the school administration building. State Rep. Tom McMillin and state Sen. Jim Marleau will attend, and district leaders are expected to present an up-to-date look at the budget.