Michigan Association of School Administrators

Service | Leadership | Collaboration | Excellence

Deficit districts could quadruple if cuts stand

The number of deficit districts in Michigan could quadruple if the $700 per pupil decline in funding proposed in the executive budget stands as is.  According to Michigan School Business Officials Executive Director Dave Martell, the roughly 40 districts that are without any fund equity or reserved savings right now could easily climb to 160 or more.

Martell said that in addition to the new $300-per-pupil cut proposed in the executive budget and the $170 per pupil slice already in place, schools could add another loss of $230 per pupil due to rising retirement costs.  The percentage that schools pay into the retirement account is going from 20.66 percent to 24.46 percent next year and that works out to another $361 million cost to districts.  All told, schools will be operating with $700-per-pupil less than current year funding.

Check the March 4 MASA Legislative Update, in your e-mailbox now, for more policy and legislative news.