The automatic spending cuts that took place
on the Federal level, through the process known as sequestration, will not
result in layoffs for state employees according to Governor Rick Snyder.
Several weeks ago, six layoffs were planned with the necessary paperwork being
issued by state departments and agencies to provide the required notice to
state employees; however, Governor Snyder’s administration was able to avoid
any layoffs. The state will lose a total of $150.5 million in federal funds for
programs this year and in future years.
The children’s clothing allowance, the
state-funded program providing $137 annual allowance for 21,000 children, is
completely eliminated. Other spending cuts were more or less automatic due to
the reduction in federal grants and the decision of Governor Snyder to not
replace federal dollars with state dollars.
In total, fiscal year 2012-13 will have
program reductions of about $59.2 million and fiscal year 2013-14 will have
another $91.3 million in reductions. Due to federal funding cuts the state will
have spending reductions in education totaling $54 million. They will be
specifically in special education services, Title I, career and technical
education, after-school programs, teacher quality grants, and other categorical
grants.