A budget compromise that calls for a $96 increase in per-pupil funding for the state's poorest districts would help Suttons Bay Schools, but the superintendent isn't celebrating yet.

The Michigan Legislature this week approved a compromise agreement developed by a joint House/Senate conference committee’s recommendation for school funding in 2007-08.

As proposed, an additional $156 million has been earmarked for increases in basic per-pupil foundation payments based on a formula that will give every district a minimum increase of $48 per pupil. Higher payments of up to $96 per pupil will be made to districts with lower foundation allowances.
Suttons Bay, with a foundation allowance of $7,085, would qualify for the $96 increase.

“They’re changing funding from a two- to a three-tier formula,” said Suttons Bay Superintendent Mike Murray, whose district would gain an estimated $86,400 for the 2007-08 school year. “It appears they are using more of a sliding scale.”

Districts like Suttons Bay with allowances of $8,300 or below will get an additional $96 per student. Others that receive more than $8,380 will get more than $48 (per pupil), but not $96, Murray said.

The $20 million which had been included for distribution to districts with declining enrollment has been trimmed to $10 to $15 million.

“This won’t be a factor for us this year because we’re so close to what (our enrollment) was last year,” Murray said.

Leland Superintendent Mike Hartigan was out of town this week and could not be reached for comment.

Glen Lake and Northport, recognized as out-of-formula districts, are supported by local property tax revenue and are not directly affected by the state budget implications.

All public school districts are required to adopt their budgets by July 1. Suttons Bay did not include any per-pupil increase for 2007-08 in its $8.1 million budget. And Murray doesn’t plan on spending the additional $86,400 anytime soon.

“Like many superintendents throughout the state, I’ll deposit the money in the general fund and let it sit there,” Murray said. “I’m not convinced they’ve solved the budget problems in Lansing. And just because this was approved doesn’t mean (the state) won’t try to take it back next spring.”