Governor reverses school cuts

LANSING, MI – Governor Granholm has reversed her order to cut school funding by $127 per student. But she says that does not mean the threat of cuts to schools is passed.

Looming cuts to K-12 schools were the centerpiece of the governor's arguments that the Legislature has to come up with more revenue. But, the governor says a windfall of property tax payments helped avert the cuts at the last minute. School officials expressed relief that they don't have to lay off more teachers or close buildings.

This new development does not restore cuts of $165 per student enacted last month. And the governor says there could be a new round of cuts in January if the state's revenue picture does not improve.

"This does not solve the school aid funding crisis," Granholm says. The way we fund schools in Michigan is broken."

Republicans say the governor's turnaround shows she was concocting a crisis to try and force the Legislature into raising taxes.