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MI House raids School Aid Fund

By Laura Weber, Michigan Public Radio Network

http://stream.publicbroadcasting.net/production/mp3/wkar/local-wkar-920375.mp3

LANSING, MI –

The state House has approved a $208 million transfer from the School Aid Fund to fill holes in other areas of the state budget.

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The transfer is part of Governor Granholm's budget plan. Support for the transfer is a result - in part - of federal stimulus money awarded to the state for schools.

State Representative Chuck Moss says it could be dangerous to move any money away from schools.

"I think that the schools need to be saving all the money that they can, looking for all the reforms they can to get their overhead down, because there's not going to be anymore magic bailouts in Washington," he says.

Many lawmakers and officials argue the School Aid Fund is benefitting from a surplus because of higher sales tax revenue collections, and that money should be spread around to other areas of the state budget. But others say it's not a surplus, and the money should be left alone to protect against future cuts to schools.

The transfer bill now moves to the state Senate, which does not return to Lansing until September.

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