LANSING -- Governor Granholm has vetoed most of a bill spelling out how $316 million in federal money should be spent on public schools.

The governor announced the veto Tuesday.

She encourages lawmakers to correct the legislation, which includes money for K-12 and intermediate school districts.

She cites a letter from the U.S. Department of Education saying the way lawmakers wrote the bill could cause Michigan to forfeit the $316 million.

The veto doesn't affect the $13 billion school aid budget passed earlier this year.  But it could keep school districts from getting the higher per-pupil amounts they were promised until the bill is fixed.

The governor signed the higher education spending bill cutting operations funding at state universities by 2.8 percent. 

Leaders of Lake Superior State University in Sault Ste. Marie and Ferris State University in Big Rapids say the state cuts were anticipated.  Below are the statements from the universities regarding the budget cuts.

"Ferris State University was anticipating cuts to funding from the state in the range of the 2.8 percent cut we received. In anticipation, we had already taken action to reduce University expenditures, including some early retirement incentives offered this past spring. This put Ferris in a position where the budget cuts could be managed in a way that will help restrain educational costs for our students despite a loss of approximately $1.4 million from the state. We understand that this is a difficult economic time for Michigan, which has resulted in very difficult choices for state lawmakers. Ferris has been growing steadily in enrollment. We believe our graduates will help position Michigan to be a leader in such new economy areas as green construction and advanced health care that will help the state return to financial stability."
Marc J. Sheehanm, Communications Officer
Ferris State University

"It's not going to affect us greatly.  We budgeted about  3.1 percent less so the budget cut was not unexpected."

Sherry Brooks, Vice president for finances
Lake Superior State University