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Michigan schools to tap into savings, explore loan options amid state budget impasse

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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.

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“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.

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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.

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“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.

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“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.

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“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.”

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Why Ohio State’s Path to Breaking the Michigan Curse Is Simpler Than Anyone Realizes

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Why Ohio State’s Path to Breaking the Michigan Curse Is Simpler Than Anyone Realizes


COLUMBUS, Ohio — After three consecutive losses to Michigan and countless hours of analysis, the solution for Ohio State might be simpler than anyone thought: just win the damn game.

This straightforward conclusion emerged as the central theme of Monday’s Buckeye Talk podcast, where hosts Stephen Means and Stefan Krajisnik cut through the typical complex analysis to deliver a message that resonated with many frustrated Buckeye fans.

“I think you and I both watch that Northwestern game and our reaction was like just win the damn game. You’re better than them. Like let’s not overthink this, dude,” Krajisnik said bluntly on the podcast, referring to Michigan’s uninspiring performance against Northwestern the previous weekend.

This sentiment captures the mounting frustration within Buckeye Nation as the team prepares for its fourth attempt to overcome Michigan under head coach Ryan Day. After years of overthinking and falling short, the podcasters suggest the solution isn’t about intricate schemes but about executing and letting superior talent take over.

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Means emphasized this isn’t dismissing the rivalry’s importance but acknowledging the straightforward reality of the situation: “It’s not that’s not flippant. That’s not dismissing the rivalry. It’s we’re just four years into this thing and this is the point we’ve reached of just go win the freaking game… But the conclusion at the end of every single thing we do is going to be this is all great. Just go win the freaking football game.”

The podcast hosts expressed optimism that all the pieces Ohio State has been developing throughout the season – from the emerging right guard rotation to the improving run game – could finally come together against Michigan. Means painted a hopeful picture of what that might look like: “Everything that we think this offense is finally comes all together in two weeks against Michigan. And it’s like, that’s the Ohio State offense we thought we were going to get this year. And they spent 12 weeks putting it together. Now they’re now they’re fully unloading it on Michigan and they never close the book again.”

This perspective shifts the conversation from “how can Ohio State beat Michigan?” to “Ohio State simply needs to play to its potential.” The hosts noted that over-analysis of Michigan’s weaknesses isn’t necessary when Ohio State clearly possesses superior talent at most positions.

The podcast touched on how the Buckeyes have methodically built their offense over 12 weeks with a mixture of veteran leadership and young talent. From Julian Sayin’s precise passing to the emergence of running backs like Bo Jackson and Isaiah West, plus receivers Jeremiah Smith and Brandon Innis, all the pieces appear to be in place.

For Ohio State fans tired of complicated explanations for the team’s struggles against Michigan, this straightforward message from the podcast offers a refreshing perspective: stop overthinking and just win the damn game.

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Here’s the podcast for this week:

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Michigan State basketball responds to early tongue-lashing ahead of featured matchup

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Michigan State basketball responds to early tongue-lashing ahead of featured matchup


EAST LANSING – The lengthy delay for Tom Izzo to go from locker room to postgame press conference was a sign.

The Michigan State coach called out his team’s lack of energy in the second half of last week’s 79-60 win against San Jose State and promised the roster would be challenged. Less than 72 hours later, Izzo was a lot more upbeat about his team.

“We’ve had two of the best practices I’ve had in two years,” Izzo said after the team wrapped up on Sunday. “What will that mean? I don’t know but they got after it. And, by the way, they took it. And, by the way, they gave some of it, so that puts me in a good mood too, to be honest with you.”

This is a good time for No. 17 Michigan State (3-0) to answer an early bell with an annual marquee game on tap. The Spartans will face No. 9 Kentucky (3-1) on Tuesday (6:30 p.m., ESPN) in the Champions Classic at Madison Square Garden.

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“It’s been physical, it’s been more focused,” point guard Jeremy Fears said of weekend practices. “I think we’ve just got to understand that we have to be more focused.”

Michigan State is the defending Big Ten champion but is still in the very early stages of testing a new roster. There are four starting spots seemingly locked up with returning co-captains in Fears, wing Coen Carr and bigs Jaxon Kohler and Carson Cooper.

Fears was exempt from Izzo’s postgame tongue-lashing after San Jose State crept back within 10 after being down 23 at the half. Fears is the guy running the show on the floor and there are hiccups to work through.

“A lot of new guys, (defensive) scouts and things change day by day,” Fears said, “so you can’t come in expecting to see one thing or another thing to happen. … I think the sooner we’re able to realize and understand that, we’ll keep getting better.”

Michigan State lost a lot of experience and guard play after reaching the Elite Eight last season. Jase Richardson wasn’t expected to be a one-and-done first-round NBA pick. Tre Holloman’s transfer departure for NC State was also a surprise so Izzo hit the portal with four additions.

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From the seniors who have been with Izzo since day one to the newcomers, being called out after a 19-point win isn’t unexpected.

“They told me what they want to accomplish, that’s the difference with me,” Izzo said. “I don’t put goals up every year that are my goals. I say give me a piece of paper, tell me what you want to accomplish then I’ll work mine in within that. They tell me what they want to accomplish, it’s my job to hold them accountable to that.”

After dropping its exhibition finale at UConn, Michigan State won its first three games that count, including a ranked victory against Arkansas. The Spartans will leave the Breslin Center for an early national spotlight at Madison Square Garden.

“It’s always one of the most watched nights of basketball and I look at that as a privilege,” Izzo said. “Yeah, we had to earn it, but it’s still a privilege to play in it so I’m excited to go to New York, I’m excited to see where we are.”

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Michigan AG to challenge DTE’s proposed 8% natural gas rate hike

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Michigan AG to challenge DTE’s proposed 8% natural gas rate hike


LANSING, Mich,. (WPBN/WGTU) – – Michigan Attorney General Dana Nessel is set to intervene in DTE’s recent request to raise natural gas rates by 8%.

The request, submitted to the Michigan Public Service Commission, could result in a 10% increase in bills for DTE gas customers, with at least an 8% hike for residential users.

The Attorney General’s office, alongside energy experts, plans to scrutinize the filing to ensure that customers are not burdened with additional costs that lack tangible benefits for their households.



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