Granholm, GOP still disagree on how to pay for education

Candice Williams / The Detroit News

Clinton Township -- Gov. Jennifer Granholm said Thursday she'd sign a measure the House passed Thursday that would use stimulus money to help lessen school cuts. But whether it gets past the Senate is uncertain.

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

Earlier, the House passed a supplemental school aid appropriations bill that would use federal stimulus funds to give back most of a $127 per student cut ordered by Granholm on Oct. 23 because tax receipts that feed the school aid fund are down due to the failing economy.

The bill would replace $184.9 million in school aid revenue with $184.1 million in stimulus cash. This would free up funding to eliminate all but $10 per student of the $127 a pupil proration. The bill also would provide $800,000 for school bus inspections, which were previously funded at $1.4 million but eliminated in the 2009-10 budget.

The bill has to be approved in the Senate, where it faces opposition from majority Republicans who are opposed to using the stimulus money set aside for next year.

"This is absolutely ridiculous," said Matt Marsden, spokesman for Senate Majority Leader Mike Bishop, R-Rochester. "The House has $100 million in revenue in the Earned Income Tax Credit freeze bill that Democrats refused to use.

Granholm called on the Legislature 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 she supports is to take 13 percent off the loophole and exemptions that special interests have carved into the tax structure, she said. A third measure would be to tax loose tobacco and flavored cigarillos at the same level as cigarettes.

About 55 teachers, school leaders and parents attended a roundtable Thursday afternoon.

The main sentiment among the group was that the way 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.

"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.

Granholm said her request of the Legislature would eliminate the $127 per pupil cut as well as the cut of the $52 million in 20-j funding.

The House bill passed Thursday also had an amendment that would restore $52 million for high-spending school districts that was eliminated in a line-item veto when Granholm signed the school aid budget. Half the $52 million would be divided equally between the high-spending districts and the state's lowest-spending districts.

The money to restore the $52 million would come from the Michigan Future Fund, a pot which does not yet have a revenue source.

Michelle Pugh, a parent with three students in the Utica Community Schools, said she wants the Legislature to work with the governor to find a solution.

"This is about our kids," she said. "They are going to have to come together so that we don't have further cuts to our schools and additional impacts on the classroom. It's not right."

Marilyn Rolfe, a parent of two young children in the Center Line Public Schools, said she may leave the state.

"I will do whatever it takes to get my kids a quality education and if that means I move out of state, I will do it," she said.

Laura Kropp, a board member for the Mount Clemens Community Schools, said the district has had to make some pretty deep cuts. Kropp said she supports Granholm's revenue generating plan.

"I think the three points for revenue are essential," she said. "You can not slash your way out of a problem. I think we're going to keep revisiting this problem if we don't bring this issue to the forefront and fix this issue."

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

Detroit News Staff Writer Karen Bouffard contributed.