SCHOOL AID

Summary of FY 2009-10 One-Month Interim Budget

SB 252 (H-2)

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Analysts: Mary Ann Cleary and Bethany Wicksall

		FY 2009-10	FY 2009-10	FY 2009-10	FY 2009-10
	FY 2008-09 YTD	Executive	Senate	House	Enacted
IDG/IDT	$0		$0	$0
Federal	1,562,008,600		1,562,008,600	1,562,008,600
Fed ARRA	600,000,000		0	0
Local	0		0	0
Private	0		0	0
Restricted	11,019,798,200		1,050,000,000	1,087,000,000
GF/GP	78,000,000		2,900,000	2,900,000
Gross	$13,259,806,800		$2,614,908,600	$2,651,908,600

Note: FY 2008-09 figures reflect supplementals and Executive Order (EO) actions throughSeptember 1, 2009.

Overview

The School Aid budget makes appropriations to the state s 552 local school districts, 232 public school academies, and 57 intermediate school districts (ISDs) for operations and certain categorical programs. It also appropriates funds to the Center for Education Performance and Information, Department of Labor and Economic Growth, and other entities to implement certain grants and other programs related to K-12 education.

Budget Changes From FY 2008-09 YTD Appropriations	FY 2009-10 One-Month
*1. Total Appropriation (Sec.11)* Senate provides $2.62 billion to appropriate available full-year federal funding other than American Recovery and Reinvestment Act (ARRA) funds, as well as $1.05 billion in School Aid Funds and $2.9 million GF/GP to fund School Aid appropriations at 1/11 of their total FY 2008-09 levels with the following exceptions: Reduce total payments to districts by $20 per pupil, which is 1/11 of the per pupil reduction agreed to in HB 4447 CR-1. Reduce payments to ISDs in order to reflect the 44.36% reduction made in HB 4447 CR-1. House appropriates $2.65 billion and provides for 1/11 of payments but does not recognize any reductions made in HB 4447 CR-1*.	Gross Federal Restricted GF/GP	$2,651,908,600 1,562,008,600 1,087,000,000 $2,900,000
*2. School Loan Bond Redemption Fund (Sec. 11j)* Senate and House provides $40.0 million to make required payments to the school loan bond redemption fund.	Gross Restricted	$40,000,000 40,000,000
*Sec.17b. Payment Schedule* REVISED Senate and House adjusts the payment schedule so the department can make payments based on the one month budget and can adjust grant payments accordingly.
*Sec. 147. MPSERS Retirement Rate* REVISED Senate and House estimates percentage of payroll districts must pay for public school employee retirement at 16.94%.
*Enacting Section* REPEALS SECTIONS Senate repeals Sec. 99e (financial emergency district grant) House does not repeal any sections.
*Enacting Sections* EFFECTIVE DATE Senate makes the bill effective as of October 15 as long as House Bill 4447 does not take effect prior to October 14. House makes the bill effective as of October 9 as long as House Bill 4447 does not take effect prior to October 8.

Budget Changes From FY 2008-09 YTD Appropriations

FY 2009-10 One-Month

1. Total Appropriation (Sec.11)

Senate provides $2.62 billion to appropriate available full-year federal funding other than American Recovery and Reinvestment Act (ARRA) funds, as well as $1.05 billion in School Aid Funds and $2.9 million GF/GP to fund School Aid appropriations at 1/11 of their total FY 2008-09 levels with the following exceptions:

Reduce total payments to districts by $20 per pupil, which is 1/11 of the per pupil reduction agreed to in HB 4447 CR-1*.

Reduce payments to ISDs in order to reflect the 44.36% reduction made in HB 4447 CR-1*.

House appropriates $2.65 billion and provides for 1/11 of payments but does not recognize any reductions made in HB 4447 CR-1*.

Gross

Federal

Restricted

GF/GP

$2,651,908,600

1,562,008,600

1,087,000,000

$2,900,000

2. School Loan Bond Redemption Fund (Sec. 11j)

Senate and House provides $40.0 million to make required payments to the school loan bond redemption fund.

Gross

Restricted

$40,000,000

40,000,000

Boilerplate Changes From FY 2008-09

Sec.17b. Payment Schedule REVISED

Senate and House adjusts the payment schedule so the department can make payments based on the one month budget and can adjust grant payments accordingly.

Sec. 147. MPSERS Retirement Rate REVISED

Senate and House estimates percentage of payroll districts must pay for public school employee retirement at 16.94%.

Enacting Section REPEALS SECTIONS

Senate repeals Sec. 99e (financial emergency district grant) House does not repeal any sections.

Enacting Sections EFFECTIVE DATE

Senate makes the bill effective as of October 15 as long as House Bill 4447 does not take effect prior to October 14.

House makes the bill effective as of October 9 as long as House Bill 4447 does not take effect prior to October 8.