Gov. Jennifer Granholm officially rescinded the additional $127 per pupil cut in K-12 funding that she imposed in anticipation of flagging revenues after the annual January revenue estimating conference concluded that revenues should be stable for the rest of FY 2010. This move was expected after state budget officials said a few weeks ago that the short-term revenue forecast seemed to be avoiding the worst case scenarios after years of being lower than expected.
Local schools will certainly be pleased with this, but their relief may be short-lived. The revenue estimating conference also said that the School Aid Fund would likely be over $400 million short in 2011, which could force an additional $268 per pupil cut in state funding unless additional revenues are raised by the legislature.