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Legislature OKs shifting money from School Aid to pay down budget deficit

Feb 27, 2015

The Michigan House and Senate passed two bills that balance the 2014-15 budget through fund shifts and cuts to state agencies. HB 4110 covers K-12, community colleges and higher education and calls for shifting money from the School Aid Fund to the General Fund. HB 4112 cuts money from state agencies and departments. Both bills are now on their way to the Governor for his signature. 

HB 4110 replaces $250.3 million in the General Fund with School Aid revenue. A shift of $167.1 million from the School Aid Fund is allocated for community colleges. 

The House and Senate Fiscal agencies provide a full analysis of the cost shifts and the impact on the School Aid Fund.

Both bills are meant to deal with a $325 million projected shortfall in the General Fund.