Gov. Snyder Revises Budget, Gets GOP Agreement

Gov. Rick Snyder is pressing forward with his budget plans but making adjustments along the way, starting with some relief from what have been called "draconian" cuts to education funding.

Snyder revised his initial $470 per-pupil cut in education funding to $100 per student. Some lawmakers, including Rep. Dian Slavens, D-Canton, say that's not enough, because the state's education fund account is one of the few still in the black.

Snyder's initial proposal caused Plymouth-Canton Community Schools' officials to plan cuts up to $18 million from the district's $162 million budget. Already the district has sent pink slips for 269 employees. The school board is weighing whether to close Fiegel Elementary School as part of the cost-saving measures.

But Rep. Kurt Heise, R-Plymouth, hailed the new figures as "historic" in a note on his Facebook page. He had voted against the House bill, which passed by a slim margin.

On Thursday, Snyder announced several other changes to a budget plan he proposed in February along with his intent to persuade financiers that Michigan can regain its AAA bond rating. Improving the state's bond rating means creating the ability to borrow money at a lower interest rate.

The Senate and House each passed budget bills that are similar, but neither reached the education cuts proposed by Snyder. In order for Snyder to sign a budget bill — which he has promised to do by May 31 — the House and Senate must agree to all the details on a single bill. Those negotiations are under way; Thursday's announcement means Republicans have agreed on the major points.

In a meeting with constituents Friday morning, Heise said getting the budget completed by June 1 was "phenomenal" and helps area school districts.

"The budget has always been done in recent years in the September time frame," he said. "It's a nightmare for local school districts."

Snyder's proposed education funding cuts led to rallies on the state Capitol steps, town hall-style meetings led by Democratic lawmakers and letter-writing campaigns.

Thursday's announcement follows Monday's news that the state received more than $400 million extra in payments than anticipated.

That money will be used, he said, to do the following:- $310 million will go to K-12 education, but that money will be split, with $150 million being divided again, on a per-pupil basis, to districts willing to adopt what Snyder's announcement called "specified financial best practice measures."

The remaining $160 million would help school districts pay for state-mandated increased in retirement and pension costs.Snyder's announcement Thursday said having a timely, balanced budget would allow municipal and school officials to plan more accurate budgets."

The budget we are working toward is a solid building block for Michigan's future," Snyder's statement said, in part. "Coupled with the recent tax overhaul, this fiscally disciplined, structurally balanced budget will let investors and job providers know that Michigan's house is in order."

Snyder indicated he intends to use some of the extra money to create incentives for city, county and state employees to make concessions in union contracts.

Other plans for the budget in Snyder's announcement:

- Reducing a requirement for state employee concessions from $180 million to $145 million.

- Dishing out $30 million to local units of government, half for economic incentives to cities, villages and townships and the other half going for county revenue sharing.

- Putting $50 million into the Michigan Strategic Fund for economic development activities, including brownfield redevelopment and historic preservation incentives.

- Continuing Michigan's film industry incentives, but reducing them to a total of $25 million.

- Setting aside about $400 million in savings accounts; $255 million the state's budget stabilization fund and $133 million to the school aid fund specifically for future retirement costs.

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