Schools Sweat Out State Budget Process

The absence of a permanent state budget is making Michigan school districts very nervous, as state funding is put on hold.

If a 2010 state budget isn’t approved by the end of the week, districts will likely go the rest of October before receiving any state or federal funding.

It’s unsettling news for school districts that depend on state funding to balance their budgets.

85% of Negaunee’s budget comes from state aid.

Negaunee Superintendent Jim Derocher says that’s almost $900,000 every month.

Districts aren’t hitting the panic button yet.

But if they go an extended period of time without any state funding, they’ll have very tough decisions to make.

Derocher says if they don’t receive any state funds by mid-November, they may have no choice but to shut down.

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