Granholm calls on Legislature to fund schools

LANSING, MI – Governor Granholm says she had no choice but to use her veto power to find savings in the school aid budget. The most controversial cut might be to extra payments that go to the state's highest-spending school districts.

She says that was necessary because schools are underfunded. And she says across-the-board cuts might occur later in this school year unless the Legislature comes up with more money for K-12 education.

"This is only the first step," she says. "It is clear that there is more work to do on the School Aid Fund budget this year and into the future. I think we all agree that the system is broken. It does not work."

The governor says the Legislature has only weeks before schools face another financial crisis. Republican Senate Majority Leader Mike Bishop says the governor is using "political extortion" to try and get the Legislature to approve more revenue.