Education Funding

Mich. Legislature Cuts Budget, But Keeps Basic Aid to Schools Intact

By Bess Keller — October 03, 2001 2 min read
  • Save to favorites
  • Print

Michigan lawmakers finally shaped a pared-down education budget last week, cutting about a half-billion dollars in public school aid over three years. One large chunk of the money was to have gone to provide new services for young children and their families.

The reductions in specific programs preserved the state’s basic “foundation” aid to schools. Republican Gov. John Engler had tentatively trimmed the aid by 5 percent after legislators failed to reach a K-12 budget agreement this past summer. The changes apply to the state’s first three-year plan for public school spending, passed in 2000, when the state was buoyed by a budget surplus. State officials have faced dwindling tax revenues this year.

Now, the revised budget goes to the governor, who had not finished reviewing it as of late last week, according to a spokeswoman for the state budget office.

The spending plan for precollegiate education, which would rise from $10.9 billion in the fiscal year that began Oct. 1 to $11.9 billion in the succeeding one, does not include further restrictions on the authorization of charter schools, as did an earlier House budget bill. That contentious issue complicated budget negotiations. (“Mich. Deal in Works on School Aid and Charter Schools,” Sept. 19, 2001.)

Rep. Wayne Kuipers, the Republican who chairs the House education committee, said he was satisfied with the final product. “My No. 1 goal, and I think that of many of my colleagues, was to preserve the foundation grant,” he said. Lawmakers, he added, had taken pains to shield public schools from the downturn in the state’s economy. “Education is really the only budget where we’ve seen increases.” Under the budget, overall spending on schools is set to increase by 4.7 percent this fiscal year and 1.9 percent in 2002-03—figures that are both lower than they would have been under the original three-year budget that was passed in 2000. The basic per-pupil grant to districts is to go from $6,500 this school year to $6,700 in the next one.

Conflict Over Charters

But Rep. Rose Bogardus, a Democrat on the House education committee who voted against the budget, said the Republican-controlled legislature and the governor had brought the cuts on by reducing taxes and earmarking the state’s tobacco-settlement money for college scholarships. She said preserving the basic aid would not be much help to districts, because they would be stuck with the bills from the programs that got chopped in the revision.

Ms. Bogardus and some other Democrats also voted against the budget because it left the door open for Bay Mills Community College, run by American Indians, to charter additional K-12 schools anywhere in the state.

The college is not restricted to chartering schools in its local area, as are other community colleges in Michigan. “Charter schools are especially hurtful to urban districts,” Ms. Bogardus argued.

A bill that would restrict Bay Mills, but raise the cap on the number of charters that can be granted by universities, is pending in the legislature.

Most of the heavy hits to the budget passed by the legislature last week would come in 2002-03. Under that bill, grants for early-literacy improvements would drop from $50 million to $43 million to zero over the three years. Money for summer school for elementary students would sink from $38 million to $28 million to nothing in the same period. Other reductions include money for extending half-day preschool to full day and for parent training.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Recruitment & Retention Webinar
Hiring, Retention, and Fill Rates: A Data-Driven Sub Strategy
Explore what keeps substitutes coming back and hear how one district rebuilt its substitute hiring process and improved its fill rate.
Content provided by Frontline Education
Early Childhood K-12 Essentials Forum Early Childhood Education: Building Essential Skills for Success
Join this free virtual event to examine the biggest challenges in supporting young children, from preschool through elementary school. 
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Absenteeism Webinar
Attendance Isn't an Attendance Problem
Boost attendance by strengthening relationships, belonging, and support with practical strategies from Doug Fisher & Nancy Frey.
Content provided by Corwin

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Averting a Shutdown, Congress Punts Federal Spending Decisions to December
Federal funding talks will continue into December as Congress agrees to avoid a shutdown.
2 min read
Speaker of the House Mike Johnson, R-La., arrives for a closed-door meeting with Republican lawmakers as he prepares for a vote on a stopgap spending bill to keep the federal government fully funded through early December, avoiding the possibility of a shutdown before the midterm elections, at the Capitol in Washington, Tuesday, Sept. 1, 2026.
Speaker of the House Mike Johnson, R-La., arrives for a closed-door meeting with Republican lawmakers at the U.S. Capitol on Sept. 1, 2026, as he prepares for a vote on a stopgap spending bill to keep the federal government fully funded through early December, avoiding the possibility of a shutdown before the midterm elections. The continuing resolution carries over the current year's funding levels for education programs into the first two months of the federal fiscal year that starts Oct. 1.
J. Scott Applewhite/AP
Education Funding Education Department Will Keep Sending Most K-12 Funds Through Its Own System
The agency will send formula funds through its own system again despite program shifts to other agencies.
5 min read
A sign from the General Services Administration is posted outside of the Department of Education headquarters in Washington, D.C. on Friday, July 17, 2026.
A sign installed by the General Services Administration is posted outside the Department of Education headquarters in Washington on July 17, 2026. Despite shifting its programs to other agencies, the Education Department will send billions of dollars in formula funds for schools through its own grants portal on Oct. 1, rather than a portal run by the Department of Labor.
Eric Lee for Education Week
Education Funding Video What's in Store for School Funding for 2026-27?
A new education tax credit, federal budget negotiations, and more are in store.
The U.S. Capitol building in Washington, D.C. on Friday, July 17, 2026.
The U.S. Capitol building in Washington, D.C. on Friday, July 17, 2026.
Eric Lee for Education Week
Education Funding Trump's Education Department Is Letting Tens of Millions of Dollars Expire
Education Week found the agency didn't spend its full budget last year and appears on track to do so again.
10 min read
A collage-style illustration of images of the U.S. Department of Education building, the U.S. Capitol building, and dollar bills on top of a wooden school desktop with a pencil on it and a school bus underneath. The dollar bills appear to have been punched out with a hole punch in a few areas, and those missing circles are sprinkled on the desk and school bus below.
Illustration by Emily Wright for Education Week + Getty