Michigan
Michigan schools to tap into savings, explore loan options amid state budget impasse
Lansing — Michigan school administrators say some K-12 districts are exploring the possibility of taking out short-term loans or tapping into limited savings to tide them over in the event of a state government shutdown on Oct. 1.
Those who are not making contingency plans for a shutdown could be forced to close their doors temporarily until the Legislature and governor reach an agreement, superintendents said Wednesday at a press conference in Lansing.
“Every day that passes without a budget, districts are forced into further contingency planning,” said Tina Kerr, executive director of the Michigan Association of Superintendents & Administrators. “Instead of focusing on what we should be right now, which is student success, these superintendents and their entire teams are spending time and resources trying to guess what the funding will look like.”
For one Michigan district with fewer than 1,000 students, officials would pay more than $70,000 in service fees and interest for loans to ensure enough cash flow to continue operations, Kerr said.
“How is it that we’re expected to meet student needs but, at the same time, we don’t know what funds we’re going to have to do this?” Kerr said.
Senate Appropriations Chairwoman Sarah Anthony, D-Lansing, described herself as “frustrated” with the pace of negotiations on Wednesday, 20 days before the Oct. 1 budget deadline. And Senate Majority Leader Winnie Brinks, D-Grand Rapids, said it is “unacceptable” that schools find themselves in this position.
“Passing a budget on time is a top priority for Democrats, but I want to be very clear that we will not get backed into a corner and settle for a bad deal for our kids,” Brinks said in a statement Wednesday.
House Speaker Matt Hall, R-Richland Township, did not immediately respond to a request seeking comment.
But Hall noted last month that each of the budgets proposed so far — the governor’s, the Senate’s and the House’s — is increasing education funding overall, so it’s likely a final budget won’t drop below the floor set in those proposed spending plans. Any schools laying off individuals in light of those proposed increases are “probably doing it for performance reasons,” Hall said.
The Republican-led House and the Democratic-led Senate have been unable to reach a budget deal, with roughly three weeks remaining in the fiscal year. If the chambers fail to reach a deal by Oct. 1, most state operations will shut down, including payments to K-12 schools. Schools are expecting a state aid payment on Oct. 20, a payment that may be in jeopardy in the event of a shutdown.
The state budget year begins Oct. 1, but the fiscal year for K-12 public schools began July 1, making the lack of a state funding plan for schools over the past two months a challenge for administrators. In 2019, the Republican-led Legislature passed a law requiring budget passage by July 1, in part to accommodate the school calendar. But the law contained no penalties for lawmakers who failed to meet that deadline.
The Legislature blew through the July 1 deadline and have yet to pass a spending plan, causing some school districts lay off staff, wait to fill positions or plan for larger class sizes.
In addition to Wednesday’s press conference with superintendents, a group of 13 Lansing-area school superintendents sent a letter to parents in their districts this week, urging them to contact lawmakers to reach a “quick agreement” on the budget.
“At the heart of the deadlock is a proposal to redirect dollars from the School Aid Fund – the fund voters were promised would be dedicated to K-12 education – to other priorities, including road repairs,” the superintendents wrote. “Many believe this violates the original intent of the system voters approved in 1994 to provide fair, statewide funding for public schools.”
The House budget passed by the lower chamber this summer moved School Aid Fund dollars to other areas of the budget, including higher education, prompting concerns about further “raids” on a fund that’s supposed to be dedicated to K-12 schools.
Asked if she would commit to not re-directing more School Aid Fund dollars away from K-12 schools, Anthony said she wants to see “adequate backfills” in the form of some new revenue source for the School Aid Fund.
“That’s the goal,” Anthony said.
On what sources of new revenue she would support, Anthony cited a $3 billion road funding plan Gov. Gretchen Whitmer rolled out in February that included increasing taxes on marijuana and businesses, including big tech companies.
“Many of the concepts that the governor put out early this year we are in agreement with,” Anthony said.
Education leaders on Wednesday expressed some concerns about any attempt to “backfill” the School Aid Fund, arguing similar promises to do so in the past have not been kept.
“The School Aid Fund has served as the state’s piggy bank when lawmakers want to spend more money but don’t want to raise the revenue,” said Peter Spadafore, executive director for the Michigan Alliance for Student Opportunity. “We’re in that situation right now. There is not enough money, particularly with the changes from the federal government, to fund a roads plan and keep all of the government open the way that it was this year.”
While the fight over the School Aid Fund and other elements of the budget continues, the delay in passing a budget has already taken a toll on operations at districts across the state, Spadafore said.
Spadafore noted that it takes time for the state to program the line items contained in the budget into the state aid payment program, meaning even if a budget were passed tomorrow, it could take days or weeks to get the payments to schools.
“Wealthier districts can sometimes patch the holes, but for low-income and rural schools, there’s no safety net,” Spadafore said.
Scott Koenigsknecht, superintendent for Clinton County RESA, the countywide intermediate school district, noted that the budget often includes grants, which take time to process and award to schools, creating further delays in funding for the districts.
“We will see a delay in funds even if the budget passes soon,” Koenigsknecht said.
Lori Haven, a superintendent at Perry Public Schools, said the district already has reduced two staff positions, increased class sizes and delayed purchases in light of Lansing’s budget uncertainty. The situation could become “critical” if lawmakers don’t act soon, Haven said.
“If we don’t receive our state aid payment on Oct. 20, Perry Public Schools could soon face a cash flow crisis,” Haven said. “In the coming months, this would force us to take out high-interest loans in order to make our payroll to keep our schools open.”
eleblanc@detroitnews.com
cmauger@detroitnews.com
Michigan
Trump’s retribution? What to watch in Tuesday’s elections in Indiana, Ohio and Michigan
President Donald Trump’s campaign to politically punish Republicans who stand in his way moves through Indiana on Tuesday, when seven state senators face Trump-backed primary challengers.
In neighboring Ohio, primaries for U.S. Senate and governor will lock in the candidates for two major races with national implications.
And in Michigan, voters in a bellwether district will fill a vacancy in the state Senate, a race with implications for the balance of power in a battleground state.
Here’s what to watch for.
How strong is Trump’s grip on the Republican Party?
Trump is taking aim at seven Republican state senators in Indiana who opposed his plan to redraw congressional district boundaries to help the party gain seats in the U.S. House.
Groups allied with the president have spent millions on advertising, an extraordinary flood of cash and attention into races that are typically low profile.
The races are a test of Trump’s enduring grip over his party as Republicans grow increasingly anxious about the midterm elections in November.
The results will signal to Republicans everywhere about how big a price they’ll pay with their voters if they distance themselves from Trump even as his popularity fades. And it will show the president whether he can still credibly threaten consequences for Republicans who cross him.
The Trump-targeted state senators all represent districts he carried in 2024, mostly by 20 percentage points or more.
The key races to watch are districts 1, 11, 19, 21, 23, 38 and 41.
Ohio races get started in earnest
The state’s primary is the wind up to the big show. Although Ohio has become increasingly conservative, Democrats believe their path back to a U.S. Senate majority runs through the state.
They’re putting their hopes behind former Sen. Sherrod Brown, who lost Ohio’s other Senate seat to Bernie Moreno in 2024.
He’s expected to face off with Republican Sen. Jon Husted, who was appointed last year to fill the vacancy created when JD Vance became vice president.
The race is a special election to fill the last two years of Vance’s term.
In the campaign for governor, Republican Vivek Ramaswamy has parlayed his national name recognition, tech industry connections and alliance with Trump into a record fundraising haul. He’s largely ignoring Republican rival Casey Putsch, focusing his rallies and television ads on the general election.
An engineer and vehicle designer who calls himself “The Car Guy,” Putsch has attracted fans with provocative YouTube videos that troll Ramaswamy and criticize national Republicans over their handling of the Epstein files, positions on energy-guzzling data centers and support for Israel.
Amy Acton, Ohio’s former public health director, is running unopposed for the Democratic nomination. She played a key role in the state’s response to the COVID-19 pandemic.
Will Democrats sweep another special election?
The special election for a state Senate seat in central Michigan carries outsized importance.
It’s another test of enthusiasm in a series of special elections that have swung almost universally toward Democrats since Trump returned to the White House. It also could affect the balance of power in the Michigan State Capitol. A Democratic victory would give the party a firm majority in the state Senate, while a Republican win would deadlock the chamber in a 19-19 tie.
The district is closely matched. Democrat Kamala Harris beat Trump there by less than 1 point in the 2024 presidential election.
The seat has been vacant for more than a year, since Democrat Kristen McDonald Rivet resigned to take a seat in Congress.
Democrats are showing surprising strength in special elections and off-year contests across the country, winning races in unexpected places and significantly narrowing the gap, even when they fall short.
There’s no guarantee the trend will continue through the midterms, when turnout will be much higher, but it has nonetheless energized Democrats and spooked Republicans worried about keeping their congressional majorities.
Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Michigan
Bridge Michigan welcomes four interns for the summer of 2026 – Bridge Michigan
- Four early-career journalists have joined Bridge Michigan for the summer
- The internship program is now in its eighth consecutive year
- Alumni have worked at major national and regional news outlets
Four emerging reporters will spend the summer working with Bridge Michigan.
This marks the eighth year of summer internships at Bridge. Alumni have gone on to careers at outlets like The New York Times, USA TODAY, MLive, the Petoskey News-Review and WKAR, as well as paths including Harvard Law School and a Fulbright scholarship. One former intern, Asha Lewis, now serves as Bridge’s full-time digital marketing associate.
“At Bridge, we’re dedicated to helping make Michigan a better state and part of that mission is growing the next generation of great journalists,” said Joel Kurth, Bridge Michigan executive editor for impact. “We’re excited to welcome them to our newsroom.”
Isabella Figueroa Nogueira is a junior studying journalism and economics at Michigan State University. During the school year, she is a writer for Great Lakes Echo, which covers stories about the environment and sustainability.
She is passionate about using journalism to explore the connection between people, policy and the natural world. Outside of writing, she loves to travel, watch movies, spend time with friends and walk her dogs, Oso and Polo.
Figueroa Nogueira will be reporting on Michigan’s environment through Aug. 21.
Nate Miller is from Berrien Springs, Michigan. He will be a senior at the University of Michigan, where he studies English.
Miller will be a general assignment reporter for Bridge through June 19.
Blace Carpenter is a rising senior at Central Michigan University, studying journalism with a minor in multimedia design. Since starting his career in the news industry in 2022, Carpenter has worked for publications such as the Grand Haven Tribune, Alpena News and Greenville Daily News.
Carpenter has also had some work published in statewide and national publications. For the past year, he has served as the managing editor of CMU’s student publication, Central Michigan Life.
Carpenter will report on northern and rural Michigan for Bridge through Aug. 14.
Ella Miller is Bridge Michigan’s photojournalism intern. A metro Detroit native and recent graduate of Central Michigan University, she studied photojournalism and multimedia design.
She was a staff photographer and photo editor at Central Michigan Life during her time in college, where she discovered her love for visual storytelling and community-centered journalism.
Related
Michigan
Faculty Senate chair praises student activists at commencement
While delivering his speech at the University of Michigan’s spring 2026 commencement ceremony, history professor Derek Peterson, outgoing chair of the University of Michigan’s Faculty Senate and Senate Advisory Committee on University Affairs, told graduates to remember pro-Palestine student activists when singing the University’s fight song.
“Sing for the pro-Palestinian student activists, who have over these past two years opened our hearts to the injustice and inhumanity of Israel’s war in Gaza,” Peterson said.
Since 2023, student activists have called for the divestment of the University’s endowment from companies with financial ties to Israel’s military campaign Gaza, which has killed more than 75,000 people and has been classified as a genocide by the United Nations. The University has consistently refused demands for divestment and financial transparency.
Peterson also told graduates to remember historical activists and social movements. These included Sarah Burger, a suffragette who campaigned for the University to accept women in 1858; Moritz Levi, who fought against antisemitism as one of the University’s first Jewish faculty members in 1896; and the Black Action Movement of the 1970s and 80s, which fought for the rights of students of Color on campus.
“The greatness of this institution does not only rest on the shoulders and on the accomplishments of our student athletes, who deserve all the congratulations we can offer them,” Peterson said. “The greatness of this university rests also on the courage and the conviction of student activists who have pushed this university down the path towards justice.”
Following the commencement ceremony, excerpts of Peterson’s speech quickly spread across social media. An Instagram post by Students for Justice in Palestine praising his remarks currently has 430,000 views, and a post to X by StopAntisemitism calling for Peterson to be fired currently has 1.9 million views.
In an email to The Michigan Daily, Peterson wrote that he believes his statements have recieved an excessive amount of controversy online.
“It should not be controversial to have one’s ‘heart opened to the inhumanity and injustice of Israel’s war in Gaza’, which is what I credited activists with doing,” Peterson wrote. “Having an open heart to other people’s suffering is a fundamental human virtue, and it is a quality that I hope we teach our students, whatever their political posture might be.”
The University has previously reacted negatively toward pro-Palestine student activists at commencement and elsewhere, and Peterson’s speech received a similar response. The University’s commencement recording has since been removed from YouTube, and University President Domenico Grasso issued a statement apologizing for Peterson’s remarks, calling them “hurtful and insensitive.”
“Everyone in our community is entitled to their own views; but this was neither the time nor the place,” Grasso wrote. “Commencement is a time of celebration, recognition and unity. The Chair’s remarks were expected to be congratulatory, not a platform for personal or political expression. Introducing such commentary in this setting was inappropriate and did not align with the purpose of the occasion.”
When asked about his reaction to the issued statement, Peterson told The Daily he has had a productive working relationship with Grasso, but wrote that it was “not his finest hour.”
Grasso’s statement has received backlash from the U-M community. The day after commencement, several faculty members wrote an open letter demanding Grasso retract his statement and apologize to Peterson. The letter says Peterson’s remarks were an appropriate celebration of the University’s students and values.
“Professor Peterson’s remarks were thoughtful, informed, instructive, and ethically rich,” the letter read. “President Grasso’s response was none of that. It represents a sad abrogation of the ideals and principles which should have been upheld and celebrated on the dais and from the Office of the President. President Grasso and those who compelled him to issue his unfortunate statement would do well to go back and rewatch Professor Peterson’s speech, this time listening for what they can learn, from history and about the future.”
At press time more than 600 students, faculty and staff have signed their names to the letter.
Daily News Editor Glenn Hedin can be reached at heglenn@umich.edu.
Related articles
-
California4 minutes agoCalifornia junior college athletes speak out on trans controversy that’s now in the Trump admin’s crosshairs
-
Colorado10 minutes agoBasic income programs remain popular in Colorado despite steep challenges
-
Connecticut16 minutes agoConnecticut Senate approves bill introducing new regulations on homeschooling families
-
Delaware22 minutes agoNeighborhood Feud Spirals Into Felony Charges for Delaware Man
-
Florida28 minutes agoSwig opens in Cape Coral, bringing more ‘dirty soda’ to SW Florida
-
Georgia34 minutes ago
Trump extends red snapper fishing in 4 states, including GA. How long?
-
Hawaii40 minutes agoAccesSurf to host 18th annual Hawaii Adaptive Surfing Championships
-
Idaho46 minutes ago
Clavijo joins U of I to advance Idaho fruit production | University of Idaho