January 16, 2006

LANSING – Governor Jennifer M. Granholm announced that on Tuesday, she will formally ask the Legislature to give schools across the state an immediate boost in funding by increasing the foundation allowance by $25 per pupil.  The increase, which will be primarily funded with savings from revised pupil counts agreed to at the revenue estimating conference, will bring the minimum foundation allowance to $6,900 per pupil.
 
“For Michigan to thrive in the new economy, our children must receive the best education we can offer,” said Granholm.  “This modest increase will not only prove that education is Michigan’s top priority, but we will continue to improve our economy using our great public schools as the launching pad.” 
 
Based on revenue estimates agreed to at Thursday’s Revenue Estimating Conference, Granholm is confident the state can provide the $25 increase in the per-pupil foundation allowance without adversely affecting the state’s budget.  Even after the increase, the fiscal year 2006 School Aid Fund will have approximately $80 million available to cover any unanticipated mid-year problems.  The total cost of the $25 per pupil increase is $42 million. 
 
Under Granholm, funding for K-12 Education is currently at its highest levels.  The 2006 Fiscal Year budget increased K-12 funding by nearly $300 million, which included a $175 increase in the per-pupil foundation allowance. 
 
Granholm said her administration supports an increase in funding while continuing to work on increasing academic standards as well.
 
“Our students must be prepared to pursue their education beyond high school,” Granholm said.  “We are committed to making sure they have the both the resources and standards to help make that goal a reality.”