LANSING – News of more money than expected coming into state coffers isn’t necessarily good news for Michigan schools facing massive budget cuts.
Revenues coming in are $314 million above the amount anticipated at the revenue estimate conference in January, due in part to a reduction in income tax refunds, and that number could soar to $500 million. University of Michigan economists are sending out much more optimistic job-growth results.
Nevertheless, Governor Rick Snyder said Tuesday it’s way too soon to start spending any of that money, even if it means softening the blow on K-12 education, which is facing $470 per-pupil cuts under his recommendation, a $300 additional cut on top of maintaining the $170 cut implemented for the current school year.
“I don’t want to speculate on us having more dollars,” Snyder said. “I think it’s important that we look at the quality of that revenue in terms of, is it one-time funds, or is it sustainable dollars. We just shouldn’t go out and spend that money today.”
Snyder said he wants to have further discussion about the best way of addressing cuts.
“Education, in general, would be among the list of things that I recognize we had to make tough cuts, but we also need to make sure we’re being prudent on the savings side,” Snyder said. “If you look at our rainy day fund, what we have in the bank account right now would last about 30 minutes.
“I’m bullish that we’re on a positive economic path, but to say it’s a sure thing that we’re going to see an upward curve without a few bumps …I’d be careful speculating about that because of the challenge gasoline prices and such, at least in the near term.?
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