Legislative news

Well, they cut a deal. In return for a nebulous agreement on a "framework" for shifting new public school employees entirely to a 401k-style retirement plan, Gov. Snyder was allowed to rejoin negotiations over the budget. Literally the same day, a House/Senate conference committee passed a "compromise" version of the School Aid budget for fiscal 2018. As you might expect, it's a mixed bag.

The state's top economists met last week to forecast state tax revenues for the next fiscal year, and they found both good and bad news. On the good side, projected revenues to the state School Aid Fund were higher than previous estimates, making some $153 million more available for the current fiscal year than estimated in January. Estimated revenues for next year (fiscal 2018) were also revised upward, adding almost $190 million to projected revenues, mainly on the strength of higher sales tax collections.

The state's top economists met on Tuesday, and delivered the not-so-good news: state tax revenue, including school aid funding, was going to be lower than we thought, by almost $175 million this year and $160 million in the next year. Since the state budget has to be balanced, the proposed budgets for next year have to be "adjusted" accordingly.

It's February, and as most of you know that means it's Budget time in Lansing. (You were thinking hearts and chocolate?)

Governor Rick Snyder presented his recommended budget last week to a packed room. The focus, not surprisingly, was on the water crisis in Flint and the restructuring of Detroit Public Schools. But the budget determines what kind of education can be offered to every child in the state, and the important bits are often in the details. At first glance, parent advocates have reason to be modestly pleased, though the reality is not as pretty as the picture painted on the cover. What happens in the end, however, depends on what comes out after the document has been reflected in the legislative funhouse mirrors - which may or may not resemble the original.

A little bit more
The governor's executive budget recommendation is headlined by a modest increase in per-pupil funding. Districts at the current minimum level of $7,391 - which includes some 60% of all students - would receive $120 more per pupil for their general operating needs. Districts at or above the state maximum (currently $778 higher or $8,169) would get an increase of $60 per pupil.

For most students, then, that means a funding increase of 1.6% - just a tad more than the projected inflation rate of 1.2%. But a goodly number of students will get a smaller relative increase: 0.7% or less, lagging inflation.