LANSING – Action to erase a $330 million General Fund shortfall in the 2014-15 current fiscal year is now complete with Governor Rick Snyder signing Tuesday bills that make some reductions, but mostly a variety of moves to replace General Fund money with revenue from other sources.
HB 4110 (PA 5, immediate effect) and HB 4112 (PA 6, immediate effect) reduce General Fund spending by $419.7 million. The most significant move in the bill is to replace $167 million for community colleges that was to come from the General Fund with money from the School Aid Fund.
“These bills continue our efforts to fiscal responsibility by reducing spending to help to keep Michigan’s economy growing,” Snyder said in a statement. “I appreciate the partnership from the Legislature to identify reductions that make sense and protect our key priorities areas such as K-12 education, community colleges, higher education, and funding for locals. Protecting the education system was a top priority for everyone.”
There was one item Snyder requested in the supplemental for K-12 schools that the Legislature omitted: $1 million to fund a study of how much money it costs to educate the state’s children.
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