Granholm says schools facing new cuts

LANSING, MI – Governor Granholm has increased the pressure on the Legislature to raise more money for schools. She says a growing shortfall in the School Aid Fund will require an additional cut to schools of $127 per pupil.

The new cut would bring the total loss to schools in this budget to almost $300 for every student.

The governor says she has no choice. Sales tax revenues are tanking. The hole in the School Aid Fund has grown to $212 million. And she says it would be unfair to schools, students, and parents to wait longer to address the shortfall.

"We've never seen times like this in Michigan, where we've had to cut like this," Granholm says.

She's calling on the Legislature to adopt options such as rolling back business tax breaks to avert bigger school cuts. "That can be prevented, at least to a certain extent if the Legislature acts in the next 30 days," the Governor says.

But Republican leaders say the governor is ginning up a school funding crisis to lay the groundwork for tax hikes.