Alignment to Purpose

Snyder: Put more money in schools

Governor promises more specifics when he unveils 2012-13 budget Feb. 9

By Paul Egan and Dawson Bell Free Press Lansing Bureau

   LANSING — After complaints that his second State of the State address was short on specifics, Gov. Rick Snyder told the Free Press on Thursday that he’s going to invest more state money in public schools in the coming year and press the Legislature to find a better way to pay for roads and bridges.

   He also detailed one option for replacing the personal property tax that businesses pay on equipment. The tax, he said, puts Michigan manufacturers at a disadvantage to their counterparts in other states.

   Snyder, who cut K-12 funding last year to help balance the budget, said he wants to boost spending for schools, but with strings attached.

   “Our intention is, from where we were last year, is hopefully to invest more in education,” Snyder said. But he stressed he wants to “invest more, not just spend more,” and funding would be tied to “best practices” and measurable results.

   More details, he said, would come Feb. 9 when he presents his 2012-13 budget to the Legislature.

   Though his Wednesday speech was widely panned as uninspiring and lacking specifics, Snyder said he “expected that.” He rejected suggestions he is losing the boldness that spurred what many saw as remarkable changes in tax, spending and regulatory policy in 2011.

   “I think we’re continuing to be bold,” but it’s important to gather public input on significant and long-standing issues, such as how to pay for roads in Michigan and make up a $1.4-billion annual shortfall there, he said.

   He said in many areas, he wants to focus this year on “not so much the flashy stuff,” but “let’s run a really good government,” and “it’s hard for people to get fired up about implementation.”

   Though deeper cuts were initially called for, public schools ended up with a 2% funding cut last year. Officials said the effect on classrooms was more dramatic because of hikes in costs, such as health care.

   Brad Biladeau, associate executive for government relations for the Michigan Association of School Administrators, said districts are “reeling” from funding cuts and more money for schools is “very welcome news.”

   The association, which represents more than 600 superintendents and frontline administrators, is ready to work with Snyder on pursuing efficiencies and measurable results, Biladeau said.

   For example, “we have been and will continue to share services and consolidate services” among districts.

   Republicans in the Legislature are working on proposals to address the rising cost of public school pensions, and some have suggested those costs to local schools could be offset by directing additional state funding into retirement rather than simply increasing the per-pupil foundation grant.

   Snyder did not directly address that idea in his Free Press interview.

   The governor also said figuring out road funding is a problem that goes back decades.

   Deciding on a funding formula, a regional approach to roads, sewer and water line improvements, and the proposed new public bridge to Canada is a “whole package … Iwould really like to see get done this year.”

   But he declined to endorse specific revenue proposals — raising fuel taxes or registration fees, for instance — instead urging the Legislature to get going on the public discussion of alternatives.

   Another high priority is repealing the personal property tax that businesses pay on their equipment.

   The problem, he said, is that the tax funds local governments and a replacement for the local government revenue stream is needed if the tax is repealed.

   Snyder said money now going to pay industrial tax credits may be part of the solution. The state eliminated most such tax credits in 2011with the repeal of the Michigan Business Tax but is continuing to honor tax credits that were promised earlier.

   “As they roll off, there’s actually a future opportunity for revenue coming in,” he said. “That could be the major element to deal with this reform.”