Extending contracts could cost schools funding

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LANSING, Mich. (AP) — Education funding legislation passed by Michigan House panels Tuesday could cost some universities millions in state aid because they signed long labor contracts before the state’s divisive right-to-work law goes into effect later this month.

The legislation that won approval from GOP-controlled House appropriations subcommittees for public K-12 schools and universities would limit state aid for those that approve employee contracts between Dec. 10 and March 28 — unless they can prove the new contract resulted in more than a 10 percent savings over the existing contract.

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