Governor Granholm has signed the K-through-12 schools budget. The governor's action allows school aid payments to be electronically transferred on time although schools are bracing for cuts adding up to $165 for every student. It also allows the state to start processing payments to school districts of federal funds to school districts that were delayed. But the budget is under-funded by as much as $264-million until the Legislature comes up with additional money to pay for K-12 education.

To help save some money, the governor vetoed additional payments to 39 school districts. Among the items vetoed by the governor is $75,000 for a pre-engineering program run by the Kalamazoo Regional Educational Services Agency.