UPDATE: Budget Deal Reduces Funding Cuts for Schools

Royal Oak looks to be in better shape when in comes to education funding aid from the state as outlined in a tentative state budget deal that would lessen planned cuts to schools and put aside money in the state's rainy day funds.

Gov. Rick Snyder, Senate Majority Leader Randy Richardville and House Speaker Jase Bolger made the announcement in Lansing on Thursday. The terms of the deal include:

• A per-pupil cut that would be less than $100. The original cut proposed by Snyder was to be $470 per student.
• $310 million more in funding for K-12 schools than was originally proposed. Of that, $150 million would be distributed on a per-pupil basis to districts that meet "specified financial best practice measures as defined in the K-12 appropriations bill." The schools would also get a one-time $160 million to help defray retirement system costs. 
• $30 million in additional funding for local units of government, half of which goes to cities, villages and townships as part of the Economic Vitality Incentive grants, and the other half going for county revenue sharing.
• $50 million for the Michigan Strategic Fund for economic development activities, including brownfield redevelopment and historic preservation incentives. 
• A $25 million cap on incentives for the film industry. 
• Money for the the state's rainy day funds, including $255 million for the  Budget Stabilization Fund and $133 million to a School Aid Fund reserve account.

The governor had asked for a deal by May 31.

"We will have a timely, balanced budget in place so that our municipal and school partners can accurately plan for the coming year, avoiding the chaos that too often has been foisted upon them due to Lansing's inaction," Snyder said in a statement.

The devil will be in the details for Royal Oak schools.

"The final deal … is still being discussed, so it's not a definite," Superitendent Dr. Tom Moline said Friday morning. "I would say that based on what I saw this morning in getting an additional $100 per student, Gov. Snyder listed five things ... of the five, Royal Oak is doing or has done all five, so there is no doubt that we would not be eligible if this deal is approved, that Royal Oak schools would receive the additional $100  allocation.

"The remaining funds are really an offset to the retirement rate, and that’s good, that helps, so that we don’t have to budget for that additional expenditure next year," Moline said, refering to the $133 million earmarked for a School Aid Fund reserve account for future retirement liabilities.

Moline stressed that the final details and approval are pending.

Already cutting essential services not impacting the classroom, including busing, the Royal Oak Board of Education issued layoff notices to 27 teachers last month and increased class size to 30 students during its April 14 meeting. The action was in response to an estimated $5.5 million dollar net loss Superintendent Thomas Moline anticipated the district would see as a result of Snyder’s proposed cuts announced in February. Snyder proposed a $470 cut in per-pupil funding, $900 million raid on the school aid fund for state colleges and universities, special education funding reduction and health care and pension fund contribution increases.

Other Royal Oak school cuts already made include increasing fees to play school sports and eliminating the student council class at Royal Oak High School.

The state budget plan would divide up $428 million in surplus 2011 revenue among K-12 schools and the state's savings account. In total, about $900 million in surplus funds would be used to lessen the blow of the more painful reductions planned for the fiscal year that starts Oct. 1.