School cut delayed

LANSING, Mich. - A $127 per-student cut in public school funding has been delayed until the state estimates tax revenue in January, according to The Detroit News.

The cut was announced in October by Gov. Jennifer Granholm, who said at the time it was necessary because state tax revenue was lower than anticipated, The News reported. Now it appears that commercial property tax income has brought in about $100 million more than expected, due primarily to tax increases that take effect when businesses change hands, state Treasurer Robert Kleine said, according to The News.

The state also took in $30 million more than anticipated from the lottery powerball game and paid school districts $50 million less than expected in special education costs, according to state Budget Director Robert Emerson, The News reported.

"We believe the $127 (cut) will be a lot less if at all," Granholm said, according to The News. 

A Senate Fiscal Agency report showed the state took in $1.6 billion in tax receipts in November, less than 1 percent above the previous year.

The Detroit News, "Granholm to delay cut to school aid for one month," Dec. 10, 2009

Mackinac Center for Public Policy, "School Funding Myths," Nov. 11, 2009