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LANSING – In a move to prevent deep cuts to local schools late in the school year, House Democrats on Wednesday passed a bipartisan plan that will use a portion of the state's tobacco lawsuit settlement to shore up the state's School Aid Fund.

"Our schools cannot afford to absorb deep cuts so late in the year," said State Representative Lee Gonzales (D-Flint Township). "The action taken in the House will protect our schools and maintain our state's investment in preparing our children to be able to compete in the 21^st century global economy."

Michigan's schools face a cut of $125 in per-pupil state funding if Michigan's immediate $803.2 million budget deficit is not resolved. The House voted to securitize a portion of the $8.5 billion the state received from the 1998 tobacco settlement to protect schools from deep cuts.

"As we work to resolve our state's budget crisis, we have to make sure that K-12 education remains a top priority," said State Representative Richard E. Hammel (D-Mt. Morris Township). "Our schools are preparing our children for the good-paying jobs of the future, and we must provide the resources they need to achieve that goal. Education plays a huge role in Michigan's economic recovery."