More budget cuts

As I write this message, Governor Granholm is conducting a press conference where she is announcing an additional cut to school aid for 2009-10 of $127 per pupil which will go into effect in 30 days unless the Legislature finds a way to overcome the revenue shortfall we face. This cut is in addition to the $165 per pupil reduction contained in the school aid bill that was passed 2 weeks ago and in addition to the elimination of all Section 20j funding that was implemented through a line item veto three days ago.

This latest action simply underscores the huge budget deficit faced by Michigan that results from several billion dollars of permanent, special interest tax cuts that were enacted when the economy was booming that are now exacerbating the effects of the economic downturn. Unless the legislature comes up with a fix to this structural deficit the Governor has no choice but to reduce funding to schools and other units of government.

Current law requires that the Treasurer notify the Governor if the actual revenue collections are less than the estimated revenue on which the budget is based. In that case the Governor is required to notify the Legislature that payments to school districts will be reduced on a per pupil basis in 30 days unless the Legislature adopts a solution to the revenue shortfall. In other words, the budget is out of balance and the Governor is forced to make the reduction unless the Legislature finds another way to balance it.

Unfortunately, Senate Majority Leader Mike Bishop (R) – Rochester announced earlier this afternoon that the “official” revenue estimate shows a surplus in the school aid fund, apparently trying to justify doing nothing to fix the problem. The official estimate to which he refers is the estimate of the Revenue Estimating Conference that was held last May on which the budget was built. It is this revenue estimate that is grossly out of touch with reality and that does not come close to reflecting actual tax collections that are occurring in the State.

All of the insiders know that the Michigan law forces the Governor to make budget reductions if the actual revenue is less than the budget estimated. They also know that it’s up to the Legislature to decide whether fix the problem or allow the axe to fall. It has 30 days to act and the clock is ticking.

PEA members contribute to scholarship fund

Nice job PEA members!!! 10 sick days were donated to the scholarship fund for a total of $1043. The scholarship committee will be meeting and discussing on how to best award the money to Portland students. WAY TO GO PEA!!!

MEA sponsored Art Contest and Photo Contest

Are you interested in photography? Do you have students who are interested in art? Check out the photo and art contest that MEA is sponsoring at the link below.
http://www.mea.org/contests/index.html

News on K-12 Budget

FOR IMMEDIATE RELEASE
Contact Kerry Birmingham, MEA Communications, 248-421-7222


MEA President comments on K-12 budget resolution

LANSING, Mich., Oct. 8, 2009 -- Regarding tonight’s agreement on a K-12 budget, the following can be attributed to MEA President Iris K. Salters:
“Thousands of school employees, parents, business leaders and voters made their voices heard during the past few weeks in an effort to stop massive K-12 budget cuts from becoming reality.
“While tonight’s cut of $165 per pupil is less than what had been previously turned down by legislators, this cut is still a deep one that will adversely impact the education of Michigan’s children. Reducing the per pupil cut is certainly a win for students. But the lack of a full investment in public schools is disturbing, especially since the vast majority of our legislators ran for office touting the importance of education to our economic recovery.
“MEA is proud of our members and all other Michigan citizens who exercised their right to speak up for our state’s children. But tonight’s decision underlines that while their efforts kept the absolute worst from coming to pass, their voices can’t go silent now.
“The lesson of the past two weeks is that we have a chronic budget problem -- and cuts aren’t making it go away. After a decade of budget shortfalls and cuts, more shortfalls and more cuts, we still lack the necessary resources to invest in our state and our future. Next year, we face the potential of an even bigger hole in the budget -- one that cannot be filled with cuts alone.
“Our leaders in Lansing have less than a year to address our antiquated tax structure and build a new one that helps Michigan face the challenges of a 21st century economy. The simple fact is that we need tax reform that leads to stable, predictable and sufficient revenue to pay for the services we all want -- sturdy roads and bridges, police and fire protection, clean air and water, health care and especially, world class public schools for our students.
“We have to take a hard look at how we’re investing our state’s money. Can we afford to spend money on tax incentives that don’t bring long-term economic growth to Michigan? Can we afford tax-free luxury items or tax loopholes that don’t serve the common good? Can we afford the massive tax breaks that many claimed would bring economic prosperity -- prosperity that obviously hasn’t reached the homes of millions of Michigan citizens?
“It’s time to invest in our state. It’s time to invest in our schools. MEA is proud to have been part of leading that charge during this budget debate and we’re proud to commit today to continuing that fight because of our solemn belief that the key to our economic future is preparing our students for the jobs Michigan needs.”
"The mission of the MEA is to ensure that the education of our students
and the working environments of our members are of the highest quality."

PAC

Our 2009-2010 PAC drive is about to get underway. Check your mailboxes the week before Halloween for some tasty reminders about what your PAC donations do for us all!!! Right now, your dollars are going toward fighting the cuts to K-12 budgets and the Michigan Promise Scholarship that our legislators are debating for balancing Michigan's budget. Also, it's PAC money battling to keep our right to bargain our health care benefits. All PAC contributions are important - even a dollar helps!

Update on budget

Check out the comments on the 9G/H blog about Jonathan's experience at the capital yesterday.