MI school cuts not expected in 2010-11

LANSING, Mich. (AP) - Michigan school districts are safe from further cuts this school year and likely will escape budget cuts next year as well, state economists said Friday.

The directors of the House and Senate fiscal agencies and state Treasurer Robert Kleine agreed Friday after a revenue estimating conference that school aid revenue is up $292 million above January estimates. General fund revenue, however, is down nearly $244 million below estimates because income and business tax revenue has come in lower than expected.

Senate Fiscal Agency director Gary Olson estimates that will leave a shortfall of about $219 million in the general fund budget for the current fiscal year, which ends Sept. 30.

Kleine, Olson and House Fiscal Agency director Mitch Bean said Gov. Jennifer Granholm and lawmakers could come up with ways to shift funds or make other changes so more programs don't have to be cut. Granholm spokeswoman Liz Boyd said meetings are set for Monday with lawmakers to decide what to do about the general fund budget gap.

"Clearly we've received some encouraging news for the School Aid fund that will ensure there will be no cuts to K-12 education in the 2011 fiscal year budget," Boyd said. "We have some work to do on the general fund and will be working with state lawmakers on solutions."