Governor Jennifer Granholm addressed 800 members of Michigan's largest teacher's union, the Michigan Education Association, Saturday. She recieved a warm reception, although her message is not a welcome one.
There is a $350 million budget shortfall in the state's school aid fund. To balance the budget, the state will likely make a $200 per pupil cut in state aid. Districts were notified about the cut on November 6th. The $200 reduction means lay-offs and cuts to student programming for some districts. Granholm says education is still her top priority, but cuts are inevitable.
Some MEA members say districts with more than 15% fund equity should allow the state to borrow the money, allowing districts without rainy day funds to avoid making cuts. Granholm says the other side of the coin is that those districts with fund equity saved in anticipation of the cuts.
Districts will likely know if the $200 cut is final in December.