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MIRS, January 30, 2007
A January 2007 survey conducted by the Michigan School Business
Officials (MSBO) found that if the Legislature reduces the per
pupil foundation grant by $224 per student, about 120 districts
(20 percent) would go into deficit by the end of the 2006-07
school year.
The survey revealed that if districts were cut by $100 per pupil
about 60 districts (10 percent) would go into deficit by the end
of the 2006-07 school year. MSBO officials said district
administrators told surveyors that they feel frustrated because
they've done the things they're supposed to do to be fiscally
responsible.
State officials announced this month that the state's chief
piggy bank for local school funding — the School Aid Fund — will
be short $377 million by the end of Fiscal Year (FY) 2007 unless
action is taken. Filling the hole with cuts alone would cost
schools $224 per student, this coming after the Legislature and
governor gave schools a $210 per student increase for FY 2007.
"Our members are more frustrated than I've ever seen," said MSBO
Executive Director Tom WHITE. "They're frustrated because before
the elections we were told we would be receiving $210 per pupil,
which is a three percent increase. But after the elections,
we're being told to expect significant cuts."
White said that this would mean that in four of the last six
years, districts have dealt with cuts or no increase in their
foundation allowance.
The survey also found that if there is no increase in the
foundation allowance from the 2006-07 year to the 2007-08 school
year 28 percent (168 districts) would be in deficit, 53 percent
(318 districts) would cut their workforce by five percent or
more and 70 percent (420 districts) would reduce programs for
students.
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