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Governor signs higher ed budget, vetoes part of stimulus money for schools

By Rick Pluta, Michigan Public Radio Network

http://stream.publicbroadcasting.net/production/mp3/wkar/local-wkar-928840.mp3

LANSING, MI –
Governor Granholm used her line-item veto power to reject the Legislature's plan to spend $316 million in federal stimulus money for classrooms. This could set the stage for a new fight with lawmakers and schools.

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The governor says the money was diverted from its original purpose of hiring teachers. Instead, much of the stimulus funding would have been used to restore earlier cuts this year to public schools. The governor says that would have put Michigan at risk of having to return the money. Now, schools will have to wait until the governor and the Legislature can agree on a new plan for divvying the funds.

Peter Spadafore is with the Michigan Association of School Boards. He says this development poses a new hardship for schools.

"They're going to have to make the tough decision of laying off staff, cutting bussing, charging more for sports, any number of things they're going to have to do to make up for that money they were counting on," he says.

Legislative leaders say they're still weighing their options.

The governor also signed a budget for the state's 15 public universities that cuts their funding by almost 3%.

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