Detroit braces for cuts to state’s local revenue sharing, K-12 education

Woodward Avenue in Detroit. (Creative Commons photo by gehad83 via Flickr)

DETROIT — As state lawmakers scramble to finalize an overdue budget in Lansing, cities and schools across the state are bracing for major cuts in funding from the state.

In Michigan’s largest city, where Mayor Dave Bing has warned that the municipal government may run out of cash and the public school district finances have fallen under state control, news of a projected slash in state aid to cities and schools could be devastating.

On Wednesday as the budget deadline closed in, Bing’s press office issued a statement saying that the mayor was “monitoring the budget negotiations in Lansing,” especially the proposed 11 percent cut to revenue sharing which could cost Detroit $38 million a year.

“Any reduction in revenue sharing dollars will have an adverse effect on our budget,” Bing press secretary Edward Cardenas told Michigan Messenger in an e-mail. “We are awaiting official word from Lansing before we can assess the impact these cuts will have on the city.”

Now that state legislators have an extra 30 days to finalize the budget, it is still unclear whether the proposed cuts to education and local government funding will stand as negotiations unfold. Gov. Jennifer Granholm is threatening to veto budget bills that contain cuts she considers too steep, and she particularly referred to bills that affect education, but she has not said she would veto any specific bill.

The cuts in revenue sharing for cities are contained in the budget for general government operations, which has passed both houses by narrow margins. The cuts in per-pupil state education aid are contained in the K-12 schools budget, which has passed the state Senate but was voted down in the House by a virtually unanimous vote of 106-2 after nearly all the Republicans suddenly switched their yes votes to no late Wednesday night.

Detroit Public Schools could lose $18 million in funding if the temporary budget is adopted. The DPS district operates on a budget of $1.2 billion a year. One Detroit School Board member, Otis Mathis, says the impact of any budget cuts in Detroit will be reflected immediately in class sizes.

“The only place left to cut is human resources — reduce the number of teachers and class sizes will get larger,” Mathis told Michigan Messenger in an interview. “Utility bills are not going down. You have to pay the utility bills and upkeep.”

Mathis said parents of children in DPS can expect to see average classes grow to reach 45 students per classroom if the state cuts funding by $218 per pupil. According to Mathis class sizes have already grown significantly since Bobb closed 29 schools this year.

Last year DPS got national attention for a budget deficit of more then $408 million. Since then, Bobb has reportedly shaved that deficit to less than 300 million by closing schools and cutting jobs. This year Detroit lost its first class standing, lifting the bar to the number of charter schools that can open in the district.

If the state cuts school funding dramatically, more schools will face deficits similar to DPS, Mathis said. “What’s the state gonna do, send emergency financial managers into all of [the districts]?” he asked.

Count day for DPS was Wednesday and the results will determine what funding the district will receive in the upcoming year. The upcoming year will present more fiscal challenges for DPS.

At this point in time Mathis fears a disaster is looming DPS. “I’m glad I don’t have any babies. It’s turning into a nightmare.”