Gov. Jennifer Granholm decided to delay a $127 per pupil cut to K-12 funding that she ordered in addition to the $165 per pupil cut that was passed by the state legislature in October. She ordered the additional cuts because there was a $100 million unfunded mandate in the education funding bill and the Treasury Department were forecasting lower revenues than originally expected.
But now the governor says that revenues have been better than expected, allowing her to delay that particular cut until after the regular January revenue forecasting conference:
Among the reasons for the delay:
• The state took in $100 million more than expected in commercial property tax partly because the struggling economy is causing many businesses to change hands and when the property is sold it moves up to a higher taxable rate, said state Treasurer Robert Kleine.
• Belt-tightening school districts spent about $50 million less in aid than expected. Much of that came from unspent special education money, said state Budget Director Robert Emerson.
• Revenue from the lottery powerball game is coming in about $30 million above expectations.
This is good news, but the schools are still facing hundreds of millions of dollars in cuts in the middle of the school year even without these specific cuts.