By Andrew Cluley
Ann Arbor, MI – The state of Michigan will return nearly five-million dollars to the Ann Arbor school district that was taken from the district's state aid payment two years ago.
The state had taken the funds because it said the district had been overpaid in the late 1990's, but the district and state officials finally determined that the state had taken back too much money.
The Dexter school district was facing a similar situation, and Ann Arbor district officials credit Dexter for helping Ann Arbor get the funding returned.
The news came Wednesday night just as the Ann Arbor school board was voting on the budget for the upcoming school year. That budget includes just over five million dollars in cuts.