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School Districts could see a financial squeeze.

Written by on May 6, 2020

IRONWOOD – With students learning from home for the rest of the year, the effect of the coronavirus has already been felt by schools across Michigan. However, it remains unclear what the future impact of the pandemic will be on the state’s school districts — including the potential budgetary consequences of declining state tax revenue.  Several local superintendents have warned their school boards that, while the numbers haven’t been determined yet, the economic consequences of the pandemic could lead to steep cuts in the amount of funding the state provides for each student. The Detroit Free Press reported in April that early estimates from the state Treasury Department show revenue could drop by $1 billion-3 billion for the 2020 fiscal year, with another potential $1 billion-$4 billion decline next year, as the state’s closure of non-essential businesses and other measures taken to fight the pandemic have led to sharp cuts in consumer spending and a surge in the number of people not working.   Although the state hasn’t provided information on what the per-pupil amount will be next year, cuts could be as steep as $600 or more per student.  The Ironwood School District currently has 755 students and currently receives $8,111 per pupil.