CHICAGO -- Gov. John Engler of Michigan yesterday proposed a $7.5 billion fiscal 1995 general fund budget two months early to provide lawmakers with a budgetary blueprint as they deliberate over a school funding plan.

The governor, who would normally wait until February to introduce his budget for the fiscal year, which begins Oct. 1, 1994, said the early release will allow lawmakers to debate the replacement of more than $6 billion of property taxes used by schools for operating purposes "in the context of the entire state budget." The Legislature in July eliminated school operating property taxes effective next year.

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