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Legislative Update

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The following are summaries of final action by legislatures on education-related matters.

IOWA

Governor: Terry E. Branstad (R)

FY 1994 state budget: $3.5 billion
FY 1994 K-12 budget: $1.33 billion
FY 1993 K-12 budget: $1.28 billion
Percent change K-12 budget: +4 percent

Highlights

  • House and Senate initially deadlocked on education spending, but Governor eventually signed compromise plan providing for smaller increase than he had proposed.

MICHIGAN

Governor: John Engler (R)

FY 1994 state budget: $7.7 billion
FY 1994 K-12 budget: $3.5 billion
FY 1993 K-12 budget: $3.5 billion
Percent change K-12 budget: No change

Highlights

  • Legislature passed measure abolishing property taxes as source of school funding, creating an estimated $6.3 billion gap in district revenues. Governor has proposed far-reaching plan to counter shortfall by raising sales and other taxes while creating a state-funded system of grants that students could use to attend any public school.
  • State voters in June rejected referendum that mandated property-tax relief while raising sales tax to 6 cents from 4 cents.

MONTANA

Governor: Marc Racicot (R)

FY 1994-95 state budget: $1.84 billion
FY 1994-95 K-12 budget: $812.1 million
FY 1992-93 K-12 budget: $802.9 million
Percent change K-12 budget: +1.2 percent

Highlights

  • Lawmakers approved a complex state equalization formula in the face of legal challenges to existing school-funding system.
  • Apparent increase in education spending is expected to be more than offset by enrollment increases.

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