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GRANHOLM TO ISSUE BUDGET E.O. NEXT WEEK

Governor Jennifer Granholm
<http://www.gongwer.com/index.cfm?link=bio.cfm&nameid=6701&locid=1>
said Tuesday that she will issue an executive order to cut the state's
2008-09 budget on Tuesday, May 5, but an agreement on what would be cut
and by how much has still yet been reached.

Ms. Granholm met into the early evening at her Capitol office with
legislative leaders and Budget Director Bob Emerson on what the
agreement would include, but officials exiting the meeting said there
was still work to be done.

What is also certain not be in the EO is a provision to cut the entire
$785 million the state budget is short so far for this fiscal year.

Senate Appropriations Chair Sen. Ron Jelinek
<http://www.gongwer.com/index.cfm?link=bio.cfm&nameid=21201&locid=1>
(R-Three Oaks) told reporters that he did not want to put a number to
the level of cuts that could be in the executive order because no
agreement has been reached, and more research needs to be done on
potential cuts.

"We need to do more research on how the numbers will affect things," he
said.

But all parts of the budget are on the table for action, he said, even
though the federal stimulus money will be used to help balance the
current year's budget.

At an education summit (see related story) Ms. Granholm told attendees
that the state will have to cut the important things to preserve the
essential in the state's budget.

She also indicated she has told her budget team to try to preserve those
things that will help diversify the state's economy and will help boost
the number of college graduates in the state.

The required five-day notice that a budget cutting executive order will
be issued was released to legislators on Tuesday.

Sources said Ms. Granholm has decided to move ahead with an EO, even
without an agreement at this time, in order to keep advancing the
process of balancing the state's budget, as well as help move
negotiations forward.

GRANHOLM WARNS EDUCATORS OF TOUGH TIMES TO COME

The state still has its goal of doubling the number of college
graduates.   But that will have to come despite less funding for
education, Governor Jennifer Granholm
<http://www.gongwer.com/index.cfm?link=bio.cfm&nameid=6701&locid=1>
told the Governor's Education Summit in Lansing on Tuesday.

Ms. Granholm said the state has programs designed to get both youth and
adults through college or trade school programs.   And she unveiled a
new website to give students and their parents access to more
information about college options and financing.

"The bottom line is we've got to get all these kids to go beyond high
school," she said.   "The question is how do we shake these kids and
make them understand that the world has changed."

But she warned that the state funding to support that education at all
levels will at least not be what educators would like.   "I hope you're
not discouraged by the challenges the budget will present," she said.
"We are going to have to cut the important to fund the essential."

Ms. Granholm said the effort to increase the number of college graduates
would continue to be a focus for the administration, but was not on the
list of things that would not be touched as part of budget balancing
efforts.   What was on that protected list, she said, was the social
safety net and efforts to diversify the economy.

"In every way we are trying to fund the means to double the number of
college graduates," she said.

Where there still will be money in the process, she said, was the
tuition support through the various state scholarships, the new Michigan
Promise Zones and, for adults, the No Worker Left Behind program.

"There should be no excuses left for kids who might not otherwise be
able to afford it," she said.

The new Michigan College Access Network website is designed to further
assist in that effort to get people into higher education by providing a
single portal for comparing various programs and for finding financial
aid, Ms. Granholm said.

"We wanted to make sure it accessible and communities can use it to get
kids to go to college," she said.

The network also released a report Tuesday showing, based on surveys and
interviews, that Michigan has substantial racial gaps in both high
school and college graduation and that the state is below the national
average for college graduation for all racial groups.

The report also found that students were not prepared academically or
financially for college and that the state had to create more links
between high schools and higher education.

"There is significant opportunity to create an early and sustainable
impact for Michigan youth by providing them with the promise of
financial access to college, and the knowledge and tools to become
'college ready'," the report said.

Among the recommendations in the report is having college readiness
programs reach students before high school.   "Expanding the capacity of
programs to reach these students at this critical time would greatly
improve their likelihood of being prepared for and aspiring to college,"
the report said.

It also called for statewide efforts to create college access programs,
particularly in areas not currently served by some kind of community
scholarship fund.

But even with the college efforts, Ms. Granholm acknowledged a
substantial gap remains.   While No Worker Left Behind has provided
training for 61,000 residents, the state has lost some 700,000 jobs
since 2000.

And she expected it would be some time before the state's job market
would recover.   "The last thing employers do is make a commitment to
hire because they want to make sure it's going to last," she said.

In the end, though, the economy will recover and people will go back to
work, she said.   "We are redefining Michigan and we're going to be all
right," she said.

HAYCOCK: MICHIGAN SCHOOLS ARE FAILING AND IT'S THEIR FAULT

Michigan schools are, in general, struggling relative to the rest of the
nation and the world.   And if they want to change that, they have to
stop blaming race and poverty and take the steps needed to improve, said
Kati Haycock, president of the Washington, D.C.-based Education Trust,
at the 2009 Governor's Education Summit in Lansing on Tuesday.

The summit focused on efforts to get more students prepared for and into
college, and Ms. Haycock said doing that in Michigan will mean expecting
more from students and teachers and making the changes in schools and
curricula to allow them to meet those expectations.

While she said poverty and race have been correlated to poor
performance, schools and teachers also traditionally expect less of
those groups that historically performed below average.

"There is no way you can blame our performance on poor kids, kids of
color or the schools that serve them," Ms. Haycock said.   "What schools
do matters hugely. ...What colleges do turns out to matter as well."

"We appreciate the honesty but we've got work to do," said Governor
Jennifer Granholm
<http://www.gongwer.com/index.cfm?link=bio.cfm&nameid=6701&locid=1>  of
Ms. Haycock's presentation, which had been provided earlier at a cabinet
meeting.   "We had just come off patting ourselves on the back for the
MEAP scores."

"We know we have to deal with all kinds of problems and many kids come
to school without the proper support from home, but they're at school
and what we do there can transform their lives," said State Board of
Education President Kathleen Straus (D-Detroit).

The schools that are performing well for low-income and minority
students are looking beyond the traditional performance correlations and
concentrating on the things they can do to improve achievement, Ms.
Haycock said.   And she said there are colleges and universities making
similar efforts to improve their graduation rates above schools serving
similar populations.

"The schools that really work succeed by focusing like a laser on the
things they can do, things they can change, not by wasting a lot of
energy on the things they can't," she said.   "They don't leave anything
about teaching or learning to chance."

And she said there are performance gains across the nation.   "What
you're seeing is improvement for all groups of kids and faster
improvement for groups of kids that have been behind," she said.   "When
we focus on something as a nation, we make progress."

Those gains, however, are largely lost when students hit high school,
she said.

And Ms. Haycock said on national assessments, Michigan students are
largely behind their national counterparts, with poor and minority
students substantially behind on many measures.

Superintendent of Public Instruction Mike Flanagan argued in many cases
schools and districts still do not understand where they stand in
relation to other schools or the rest of the world.

"You have to have clarity about what your record is because if you don't
know where you stand you can't improve," Mr. Flanagan said.

And he said even the state has contributed to the problem.   While the
state curriculum and Michigan Educational Assessment Program has
sufficiently high standards, he said the department has in recent years
set artificially low cut scores because not all students have been
exposed to the curriculum needed to meet the standards.

He warned those cut scores will go up in the future, potentially meaning
more students will drop from the ranks of proficiency.

Ms. Haycock said many school officials have argued that recent data
showing the United States falling behind other developed countries on
student performance is the result of factors outside its control, like
the percentage of students allowed to go onto high school and levels of
poor and minority students in its schools.   But she said changes in
other nations have negated many of those arguments.

She said the United States is now 17th in the percentage of students it
sends through traditional high school programs, down from first.

The one area the nation does excel, and not a compliment, is it is
second among 29 nations for the gap between higher income and lower
income students.

"The gap between our top kids and bottom kids is among the largest in
the world," she said.   "Rather than organize our education system in
this country to ameliorate that problem, we actually organize the
education system to exacerbate that problem.   It turns out we take the
kids who arrive at school behind and give them less of everything."

"Unless you and I are prepared to argue that children from high income
families are more than eight times as smart then something's wrong with
education system because that is precisely the result we're getting,"
she said, pointing to differences in college attendance and graduation.
She said some 75 percent of upper income students have a bachelor's
degree by age 24 compared to 9 percent of lower income students.

And Mr. Flanagan said all parties in the schools have to take
responsibility for action.   "I'm not sure we together are understanding
that, whether it's unions or management or boards, that we need to get
together or we're going down," he said.   "We need to focus on student
achievement."

Push will also come from the state for changes in local operations and
performance, Mr. Flanagan said.   "I plan to use every authority I have
the next few years to have change happen," he said.

Using that authority will include sending in more financial managers
where school districts cannot get their budgets in balance, he said.

Mr. Flanagan urged schools to participate in his reimagining schools
project.   While only a few schools will be selected as demonstration
programs highlighted by the state and potentially having easier access
to federal stimulus money, he said all schools need to realize they are
going to have to operate in a new economy with new parameters.

"This is why you have to reimagine: because you can't fund the current
system and you deserve more money but there won't be any more money," he
said.

Among the examples he raised of reimagining the system was the extra pay
teachers receive for having advanced degrees.

"There's no evidence to support that paying extra for a master's degree
has any impact on student achievement, but that's the system," he said.

He did not call for districts to eliminate that extra pay to save money,
but he did recommend that, going forward, districts look at ways to
provide additional pay for teacher's efforts that do improve student
learning.

But he also said he would be willing to offer waivers to some state
requirements for innovative programs, like allowing high school
certified teachers to teach in elementary schools to move up language
programs.

"The kids will learn language better" in earlier grades, he said.   And
"the band parents are going to kill you when you can't fit in band and
the requirement for language hits."

While he agreed that all children can learn and high standards for all
are appropriate, Doug Pratt with the Michigan Education Association said
the state was not likely to see as much improvement as needed without
additional funding to education.   Current funding levels are leaving
many districts without the resources they need to be sure students and
teachers have proper materials like textbooks.

But Ms. Haycock argued that was yet another excuse for inaction.   "It
then makes the achievement gap not about us; it makes it about those
policy makers," she said.   "It flows not from choices policy makers
make but choices that we as educators make."

TENURE:  Despite his April 1 announcement (an April Fool's announcement
that he had found a better job and was leaving the department), Mr.
Flanagan indicated Tuesday that he planned to be around awhile longer to
follow up on the efforts he has already led.

"I hope to be involved through at least the first term of the next
governor to make some of the changes that we urgently need happen or
we're going down," he said.