LANSING – Facing a $1.7 billion state budget shortfall, the Michigan House of Representatives on Thursday approved a budget that maintains funding that is vital to Michigan's economic recovery and public safety. Despite including approximately $500 million in cuts, House Democrats were able to largely preserve revenue sharing while also maintaining education funding at levels necessary to prepare students for 21st century jobs. The budget now heads to conference committee so that differences with the Senate can be resolved.
"These are obviously incredibly difficult times, but we're working to protect funding that will help us turn around our economy and create jobs," said State Representative Ellen Cogen Lipton (D-Huntington Woods). "In order to jumpstart our economy, we need to continue to keep the doors of higher education open to middle class families and prepare our students for 21st century jobs. Cutting education funding and eliminating scholarships is not the way to create the workforce we need to attract high-tech industry and good-paying job providers to Michigan."
By investing federal stimulus dollars, the House plan keeps per pupil education funding intact and preserves the Michigan Promise Scholarship, a program that provides Michigan students with $4,000 toward college tuition. The Senate plan, however, cuts $110 per student from K-12 funding and eliminates the scholarships altogether.
In addition to maintaining education funding, the House Democrats' plan largely protects revenue sharing. While the Senate plan includes $90 million in cuts, the House plan cuts revenue sharing by just $6 million. The massive cuts included in the Senate plan would make it difficult for local governments to maintain adequate police and fire protection services in their communities.
"Our plan allows for the revenue sharing necessary to keep local police and fire protection, which are essential to the safety of our residents," Lipton said. "In the face of the growing budget gap, we are making tough choices, but it's important to protect funding for services vital to our quality of life. Education and public safety are two areas we cannot continually gut and still expect things to improve. I encourage the Senate to revisit its plan."