BY RICK PLUTA
Michigan Public Radio Network
LANSING - Schools will face even bigger budget cuts unless the Legislature comes up with more money for education, Gov. Jennifer Granholm announced late Thursday.
Republicans have resisted Democratic proposals to reduce business tax breaks, raise taxes on some tobacco products, and sell late-night liquor licenses to generate revenue. But the governor says the alternative is cuts to schools of almost $300 per student.
The governor says she has no choice. Sales tax revenues are tanking. The hole in the School Aid Fund has grown to $212 million. And she says it would be unfair to schools, students, and parents to wait longer to address the shortfall.
"We've never seen times like this in Michigan, where we've had to cut like this," she said.
Schools were already facing a $165 per pupil funding cut under the school aid budget signed by Granholm on Monday. The cuts announced Thursday equate to an additional $127 per student.
Granholm called on the Legislature to adopt options such as rolling back business tax breaks to avert bigger school cuts.
"That can be prevented, at least to a certain extent if the Legislature acts in the next 30 days," she said.
But Republican leaders say the governor is ginning up a school funding crisis to lay the groundwork for tax hikes.
© Copyright 2009, MPRN
