Budget deal saves schools - for now

Late Friday, Michigan’s top lawmakers hammered out a deal which both prevents last-minute cuts to schools and closes the current year’s deficit without a tax increase, but at a cost. Most of the cuts from the regular state budget went to fund increases for health care and prison beds, both of which are projected to increase because of the poor economy. To fill the overall gap, the Legislature intends to sell rights to some future tobacco settlement fund revenues (“securitize” these revenues), among other things. Closing the current year’s deficit without a tax increase is evidently part of an agreement with Senate Republicans not to block a vote on an income tax increase for fiscal 2008.

Read the rest of this story on the “Michigan Parents for Schools website”:http://www.miparentsforschools.org/node/82.