October 5, 2009

LANSING – The state budget impasse that has left Michigan without a Fiscal Year 2010 School Aid budget is preventing the Michigan Department of Education from paying federal funds to Michigan school districts this week for programs ranging from Special Education to Title I, and the wide variety of school meals programs.

The state Legislature did not meet the October 1 budget deadline, leaving the Department of Education without legal authority to process millions of federal funds that recipients receive on a weekly basis.

School districts and private organizations that operate federal programs appropriated in the School Aid Act normally are reimbursed their federal funds on a weekly basis. Without a School Aid budget, those funds cannot be paid.

“This will deeply affect the cash flow for schools, day care centers, and adult care facilities, to name a few,” state Superintendent of Public Instruction Mike Flanagan said. “But I am confident that the Legislature will do the right thing and pass at least a continuation budget this week and allow us to start passing through these federal dollars.”

The Michigan Department of Education processes federal payments for the U.S. Department of Education and U.S. Department of Agriculture three times a week.  Over a normal two-week period, the Department processes approximately $43 million in payments.

Some of the federally-funded programs that are affected include: Title I; Special Education; School Lunch Program; Adult and Child Care Food Program; Career and Technical Education; Educational Technology; Improving Teacher Quality; Charter School Funds; Even Start; Migrant Education; Comprehensive School Reform; and the 21st Century Community Learning Centers (After-School Programs).