Governor asks Michigan Legislature to pass revenue-raising measures

Candice Williams / The Detroit News

Clinton Township -- Governor Jennifer Granholm said today she has asked the Legislature to pass three revenue-generating measures that will save $212 million in cuts for Michigan schools. It has one week to act.

She also said she'd sign a measure the House passed today that would use stimulus money to help lessen school cuts.

Granholm made the announcements as she met with a group of education and community leaders this afternoon in Clinton Township.

The first measure is to freeze the personal exemption on the income tax at the same level it is this year. It is not a tax increase, Granholm said, but it would generate $55 million for the school aid fund. The second measure would take 13 percent off of the loophole and exemptions that special interests have carved into the tax structure, she said.

"For example the oil and gas companies get a double deduction," she said. "If they were to pay 13 percent of what everybody else pays and we were able to put that money toward the schools that would generate $150 million."

The third measure would be to tax loose tobacco and flavored cigarillos at the same level as cigarettes.

"Those three solutions would generate enough revenue to protect schools from these cuts," she said. "I'm asking the Legislature to act."

About 55 teachers, school leaders and parents attended a roundtable this afternoon to discuss their concerns and ideas about K-12 education funding at the Macomb Intermediate School District Administration Building on Hayes Road.

The main sentiment among the group was the ways Michigan schools are funded has to change.

"We have to find other ways through reforms and revenues to provide our students with high quality education," said Christine Johns, superintendent of Utica Community Schools. Over the past seven years the district has had to cut $42 million from its budget. The district faces a $20 million reduction this year.

"If we want high quality schools we have to pay for them," Johns said.

Last month Michigan public school districts suffered a double setback when the governor signed a school aid bill that cut $165 per pupil in funding as well as another $127 per pupil in additional cuts due to a shortage in school aid funding. Also, 39 high-spending districts lost funding when the governor cut $52 million earmarked for those districts in the wake of 1994 Proposal A school finance reform.

Today's roundtable discussion was one of several Granholm is conducting with educators and parents around the state. She's been to communities including Rochester, Traverse City and Muskegon.

Granholm will continue her meetings in Monroe on Friday and the Plymouth-Canton School District on Monday, said Megan Brown, the governor's deputy press secretary.

cwilliams@detnews.com (586) 468-0529