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Gov. Snyder Announces Plan For Budget Cuts, Education Funding

LANSING (WWJ/AP) - Gov. Rick Snyder says Michigan's current budget shortfall will be met by more than $102 million in spending cuts across state departments.

Snyder signed an executive order Wednesday to reduce various state agencies and streamline government expenses in order to invest in education, skilled trades, and health and communities.

He said about 76 percent of the total budget is dedicated to education and health and human services.

"We should be proud. Michigan's strong. We're making strong investments and we're doing it together," Snyder said in unveiling his 2016 budget proposal to the Republican-led Legislature's budget committees.

He's assigning the largest reductions to state police, the Department of Corrections and the Department of Community Health. The state police budget will be cut by more than $23 million, the corrections budget will be cut by $17.8 million and the health budget will be cut by $16.55 million.

Snyder also proposed providing dental coverage to low-income children in Wayne, Oakland and Kent counties - the last three counties not participating in the Healthy Kids Dental program. He did not call for a statutory increase in state revenue sharing with local governments, except an increased required by the constitution.

"I believe that across the board cuts are bad management; I don't believe in doing that," Snyder said. "You have to make tough calls, tough decisions and smart decisions, and that's what we've attempted to do in this process."

The cuts come after economists agreed state revenue is $289 million short of projections in the current budget - mostly because of large companies cashing in tax credits at a higher rate than expected.

As expected, Snyder's plan includes a strong commitment jobs —  specifically to skilled trades.

Education is also a top priority.

The plan includes a 2 percent funding increase for Michigan's 15 public universities, along with $75 extra per student for school foundations.

"It's not about not cutting," Snyder said, "but literally putting more money in the most important areas that we need to invest in our state."

If approved by lawmakers, K-12 appropriations would come in at $12 billion.

"This shows that, over the course from 2010 there's been over a $1.2 billion additional investment in K-12 through state resources,and that process is going to be continuing," Snyder said.

Snyder also proposed providing dental coverage to low-income children in Wayne, Oakland and Kent counties - the last three counties not participating in the Healthy Kids Dental program. He did not call for a statutory increase in state revenue sharing with local governments, except an increased required by the constitution.

Brian Whiston, the Superintendent of Dearborn Schools, says districts could use the money in a lot of ways, as he's had to cut his budget six out of the last seven years.

"Class sizes are important — particularly in early K through 3," Whiston said. "Certainly things like facilities... I mean, we used to invest $4 million to $5 million a year in our facilities, and we're only investing, you know, $400,000 to $500,000. So, we're behind in some facility issues and we need some money for that."

He said he still would like to see the details of the governor's plan before calling it "good news."

"If the $75 is new money on top of best practice, an in addition to funding that helps us with the retirement costs, then it is a great start, and we look forward to the conversation," Whiston said.

Among the governor's priorities is third-grade reading, considered an education benchmark because it's when students transition from learning to read to reading to learn. Snyder also is focusing the start of his second term on getting more funding for skilled trades and career technical education.

He also wants to implement a kindergarten entry assessment to gauge the effectiveness of the state's early childhood spending.

Republicans, who control the House and Senate, want to finalize the budget in early June, four months before the fiscal year begins. But they are expected to sign off on the mid-year cuts sooner.

The proposed budget does not assume passage of a May 5 statewide ballot measure that would raise the state sales tax to 7 percent from 6 percent as part of a plan to pump $1.3 billion more a year into road and bridge construction and public transit. If the proposal is passed, Snyder and lawmakers could enact supplemental budgets to reflect the additional spending.

Click the links below for a summary of Snyder's 2016 budget recommendations:

Budget Recommendation: Overview

Budget Recommendation: K-12 Education

Budget Recommendation: 3rd Grade Reading

Budget Recommendation:  Higher Education

Budget Recommendation: Career Tech/Skilled Trades

TM and © Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2015 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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