The Michigan legislature completed its work on the FY2011 General Fund budget before October 1 and the governor signed all but one of the appropriations bills (higher education) before the start of the new fiscal year, thus avoiding another temporary government shutdown. The FY2011 state School Aid Fund budget, which provides operating funding for Michigan’s local and intermediate school districts, was completed in July, when local schools start their new fiscal year. Both “early” adoption of the SAF budget along with the avoidance of another government shutdown mark some progress in the budget development process compared to the experience in recent years; however, while the FY2011 budget did contain some cuts, it still relies heavily on nonrecurring resources.