Granholm to sign K-12 budget

LANSING, MI – Governor Granholm is expected to sign the K-12 school budget Monday or Tuesday. That will allow the quarterly school aid payments to go out on time, but the debate over school funding is far from over.

Michigan has has been without a school budget since the state's new fiscal year started October first. That's already delayed payments of federal funds for special education and school lunches.

The budget reflects a reduction of 165 dollars for every student. Some larger districts will lose millions of dollars. Many districts will be forced to lay off teachers and other staff with the school year already underway.

David Martell is the executive director of Michigan School Business Officials. He says a survey found mid-year cuts would force schools to lay off thousands of teachers and other staff.

"Districts are in a mode now of not having any choice but to make very difficult decisions," Martell says.

There could be even more layoffs early in 2011 if the governor and the Legislature don't fill a hole in the School Aid Fund of $100 million or more.