Katrina Aid Won't Bust Budget

By: Associated Press
By: Associated Press

Gov. Jennifer Granholm says taking in evacuees from the Hurricane Katrina disaster area shouldn't put any strain on the state budget. She expects the Federal Emergency Management Agency to reimburse the state.

Michigan is set to accept evacuees Monday, at a time when state services already are strained by budget problems.

Michigan's unemployment rate was the highest among the 50 states in July. With fewer people working, the state has not collected as much as expected in sales taxes and other revenue to pay for programs.

Cash-strapped school districts are preparing for possible new students relocating from the disaster area. In Michigan, that could help finances at the local level. Districts are given a minimum of $6,700 in state aid per student.

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