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 Pro-Rata
K-12 Cut?
by Tim Skubick, MIRS, November 17, 2004
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Discouraging
estimates are beginning to surface leading to speculation about
a possible pro-rata cut in the state School Aid Fund (SAF) that
could run from as low as $58 dollars per student to a high of
$147.
It is too early to nail a number down, but there are two
estimates being discussed. One places the potential shortfall at
"under $100 million" while another estimates that it could run
between $200 and $250 million. If that latter range is correct,
it could mean a slice out of school aid of between $117 and $147
per pupil.
Watching all these numbers is self-described Deficit Hawk and
Senator Majority Leader Ken SIKKEMA (R-Wyoming) who said he is
"really concerned."
"If we have a problem, I want to know it now. We need to be
fiscally responsible and need to know if we have a problem," he
tells MIRS regarding the potential shortfall.
Sikkema said this situation is why he wanted a revenue
estimating conference before Thanksgiving instead of the current
date of December 3rd.
"I want to be conservative and will go for the higher number and
hope, in this case, that I am wrong," says the West Michigan
legislator.
Fueling this problem was a fall off in state revenue during
September and October when the school aid fund was apparently
short between $50-75 million.
Regardless of the numbers, none of this is good news for the
budget strapped school community, which faces more budget cuts
if the pro-rata option is necessary. However, at this read, that
is not a foregone conclusion.
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