State budget & taxes

It's budget season in Lansing, and there are some important issues that need to be settled about school funding. But, as any good magician knows, the key to a good trick is to keep your audience's attention focused someplace else.

For that flashy bit of distraction, we have the wrong-headed effort to end the school pension system at a cost of more than a billion dollars a year for the next four decades. Right now, legislative leaders are not only insisting on closing the state public school retirement system (MPSERS) to new hires, but have cut off budget negotiations with Gov. Snyder because of his continued opposition to the retirement changes.

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.

Governor Rick Snyder's proposed school aid budget for next year has been greeted with cautious optimism by public school advocates, and with good reason. All schools would receive an additional $50-$100 per pupil next year, funding earmarked for at-risk students would get a significant increase, and high schools would receive an extra $50 per student to cover their higher costs. But good ideas rarely make it through this Legislature unscathed. This budget in particular is likely to anger pro-privatization forces in the state, setting things up for a major battle over the coming months.

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.