State Budget and Birmingham: 5 Things You Need to Know

With the , Gov. Rick Snyder made history, signing the budget into law earlier than any other administration in three decades. The $47.4 billion budget also resolves a $1.5 billion shortfall, cuts funds to public education and local government while also funding the elimination of the Michigan Business Tax.

But what does this mean for Birmingham and its residents? Stay tuned to Birmingham Patch for the next two days as we examine the impact Snyder's budget will have on the city, public services and the district. Until then, here's five things you should know going forward:

1. Birmingham representative sponsors bill: Birmingham resident and House Rep. Chuck Moss (R-Birmingham) was the sponsor of both budget bills, House Bill 4526 and House Bill 4325. Moss is currently the chairman of the House Appropriations Committee and has said
2. Funding for K-12 education and public universities to take a hit: In Snyder's budget, state aid for universities will drop 15 percent while funding for K-12 education was cut by 2.2 percent. The per-pupil foundation allowance for public school students drops from $7,316 to $6,850. In Birmingham, that means a $470 per-pupil loss. 
3. Making up for lost revenue: The new budget calls for the elimination of the Michigan Business Tax, a loss of nearly $1 billion in yearly revenue for the state. The cut essentially eliminates business taxes for all companies except for large corporations with shareholders. For a city defined by a downtown shopping and restaurant district, this means less taxes for many Birmingham small businesses.
4.  Local governments to see less money: Local governments will see $100 million less during the next fiscal year, however most of that cut will be in statutory revenue sharing. Birmingham won't feel the brunt of that cut, as .
   
5. Social programs to take a hit: The highlights from Snyder's final budget includes a reduced clothing allowance program for children on welfare, monthly state disability assistance payments slashed from $269 to $200 and greater restrictions for those looking to claim welfare benefits.