The Michigan Association of School Boards did some numbers crunching based upon a new memo sent by Department of the Treasury to Gov. Jennifer Granholm and say it appears that K-12 schools could face budget cuts twice as deep as those in the current budget because of continuing shortfalls in predicted revenues each month.
Schools are being held hostage to the outrageous antics and games with the school budget. Yesterday the state treasurer sent a memo to Gov. Granholm indicating that the predicted shortfall in the School Aid Fund (SAF) was much larger than expected. According to the memo, Treasury now estimates that the shortfall will be approximately $264 million for fiscal year 2009-10. To view the memo, click here.
To put that in perspective, that’s an additional $165 per pupil reduction on top of the $165 cut that the legislature passed last week. Without serious action by the legislature and governor in coming months, schools face total cuts of $330 per pupil.
If the monthly shortfalls in expected revenue continue and are as deep as Treasury is now predicting, that will force more cuts in the middle of the fiscal year on top of the cuts already present in the budget. The MASB says the resulting cuts would be a “devastating blow to public education” and they are no doubt right.