Gov: More money needed for K-12 funding

Gov. Jennifer Granholm has made it clear she wants more money for things such as K-12 funding.

The current budget cuts per-pupil funding by about $165. Granholm cut another $127 with a proration letter because there isn't enough money in the budget to pay the bills, she said.

24 Hour News 8 asked Granholm if she had any intention of rescinding her order to cut per-pupil funding, as some Republicans have suggested. They argue that the official estimate made in May says there is enough money, at least until the next revenue estimating conference in January. Granholm rejects this idea.

Some Republicans argue that the official revenue estimate is the one from May, and until there is a new estimate, the Governor should use those numbers.

As Granholm has said before, estimates, though not done in the official estimating conference, are that revenues are down and Michigan cannot afford to pay the per-pupil allowance.

If the Governor doesn't withdraw her proration letter and the Legislature doesn't come up with more money, the cut per-pupil, starting in December, will be nearly $300.

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Four West Michigan projects received money from the Michigan Economic Growth Authority, or MEGA, on Tuesday. They are:

Consolidated Resource Imaging LLC - The high-tech electronic and aerospace company serving both the government and private-sector customers plans to invest $3 million to expand its facility in Walker to accommodate business and staffing growth. The project will create 96 jobs, including 50 directly by the company. The Michigan Economic Development Corporation estimates the increased economic activity created by the project will create an additional 46 indirect jobs. Based on the MEDC's recommendation, the MEGA board on Tuesday approved a state tax credit valued at $625,915 over seven years to encourage the company to expand in Michigan instead of a competing site in Alabama. Walker is considering an abatement valued at $248,000 to support the project.

Toda America Inc. - The world's leading manufacturer of iron oxide and mixed metal oxide particles plans to invest $70.1 million to produce materials for lithium ion-batteries at a facility in Battle Creek. The project will create 148 jobs, including 57 directly by the company. The MEDC estimates the increased economic activity created by the project will create an additional 91 indirect jobs. Based on the MEDC's recommendation, the MEGA board on Tuesday approved a state tax credit valued at $1.6 million over 12 years to encourage the company to locate its first U.S. company in Michigan. Granholm also met with the company during her September 2009 investment mission to Japan. Battle Creek is considering incentives valued at $5.5 million to support the project.

Steelcase Inc. - The manufacturer of office environments that supports work wherever it happens around the globe plans to invest $18.2 million to expand its global headquarters in Grand Rapids. The project will retain 707 jobs, including 350 directly by the company. The MEDC estimates the increased economic activity created by the project will retain an additional 357 indirect jobs. Based on the MEDC's recommendation, the MEGA board on Tuesday approved a state tax credit valued at $4.7 million over eight years to encourage the company to expand in Michigan. Grand Rapids is considering an abatement in support of the project.

Battle Creek -- Covance Laboratories - The provider of a wide range of integrated product development services in the pharmaceutical, biotechnology and medical-device industries plans to invest $15 million to renovate the former SEMCO Gas building in Battle Creek. At this facility, the company will provide analytical, microbiological, stability and sensor testing for numerous food service customers throughout the United States. Based on the MEDC's recommendation, the MEGA board on Tuesday approved a state brownfield tax credit valued at $2.8 million to support the project, which will create 43 jobs.