This Week in Politics in 5 Sentences (or Fewer)

Bob Kefgen's picture

Governor Rick Snyder, Senate Majority Leader Arlan Meekhof (R-West Olive) and House Speaker Tom Leonard (R-DeWitt) have reportedly reached a tentative agreement on restructuring the MPSERS system. While rumors are rampant (many of them contradictory) about the shape of the agreement, no solid details are available, though it seems clear that any agreement is limited to new school employees who are hired after this proposed compromise takes effect. The conference committee on the 2017-18 School Aid Fund budget reported out a budget bill that calls for a $60-$120 per pupil foundation increase using the 2X formula, an increase in At-Risk funding of $120 million, retention of a $100 million offset for MPSERS costs, a nearly $500 million set aside to fund the rumored reforms the state's MPSERS system. Given uncertainty about a deal on MPSERS changes, the size of the pot of money set-aside to pay for the rumored agreement, and the possibility of the Governor using his line-item veto authority to strip out some of the categoricals added during the conference process, it is still possible that the budget could change before it makes it across the finish line. It is also possible that disagreement on MPSERS could scuttle the budget process and delay a final K-12 budget.