FY 2015-16 SCHOOL AID BUDGET S.B. 130 (S-1, Draft 3): SENATE SUBCOMMITTEE REC.
Senate Bill 130 (S-1, Draft 3 as reported) Throughout this document, Senate means Subcommittee.
Committee: Appropriations
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CHANGES FROM FY 2014-15 YEAR-TO-DATE |
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FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE |
FY 2014-15 YEAR-TO-DATE |
FY 2015-16 SENATE SUBCOMM. |
AMOUNT |
PERCENT |
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FTE Positions.............................................................. |
N/A |
N/A |
N/A |
N/A |
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GROSS......................................................................... |
13,686,960,100 |
13,968,913,900 |
281,953,800 |
2.1 |
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Less: |
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Interdepartmental Grants Received..................... |
0 |
0 |
0 |
0.0 |
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ADJUSTED GROSS.................................................. |
13,686,960,100 |
13,968,913,900 |
281,953,800 |
2.1 |
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Less: |
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Federal Funds.......................................................... |
1,808,162,700 |
1,775,769,200 |
(32,393,500) |
(1.8) |
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Local and Private.................................................... |
0 |
0 |
0 |
0.0 |
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TOTAL STATE SPENDING....................................... |
11,878,797,400 |
12,193,144,700 |
314,347,300 |
2.6 |
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Less: |
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Other State Restricted Funds................................ |
11,845,097,400 |
12,151,444,700 |
306,347,300 |
2.6 |
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GENERAL FUND/GENERAL PURPOSE.............. |
33,700,000 |
41,700,000 |
8,000,000 |
23.7 |
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PAYMENTS TO LOCALS.......................................... |
11,720,149,600 |
12,032,877,700 |
312,728,100 |
2.7 |
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$13,686,960,100 |
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1. MPSERS Rate Cap. Governor and Senate increased funding to pay for the State support of the local employer rate cap in the Michigan Public School Employees' Retirement System (MPSERS). Total funding for the rate cap in the K-12 budget is $893.5 million. |
216,600,000 |
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2. Foundation Allowance. Governor proposed a $75 across-the-board increase in the foundation allowance, bringing the minimum to $7,326. Senate proposed an increase between $50 and $100 per pupil, using the '2x' formula, which costs $22.0 million more than Governor's plan. Senate included $1.0 million for $200 per-pupil consolidation incentives. |
131,000,000 |
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3. At Risk. Governor and Senate proposed a 32.4% increase ($100 m) in the At Risk program. |
100,000,000 |
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4. District Fiscal Emergency Contingency Fund. Governor proposed $75.0 million for this reserve fund (up from $4.0 million current year); Senate funded at $8.9 million. |
4,935,900 |
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5. Career and Technical Education (CTE). Governor proposed $17.8 million for career and technical education/dual enrollment, $3.0 million GF/GP for the Michigan College Access Network (MCAN), which was transferred into the budget from the Higher Education budget, and $600,000 GF/GP for a public awareness campaign and an online career planning tool. Senate concurred and further increased the traditional CTE funding by $13.4 million. |
34,788,700 |
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6. Pupil Membership Blend. Senate changed the calculation for pupil memberships from 90% fall count/10% subsequent spring count, to 85% fall/15% prior-year spring. |
9,000,000 |
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7. Adult Education. Senate increased Adult Education funding to a total of $29.0 million. |
7,000,000 |
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8. Federal Grants. Governor and Senate reduced Federal grants by $32.4 million. |
(32,393,500) |
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9. Early Literacy Initiatives. Governor proposed $10.0 million in grants to support additional instruction time for kindergarteners; a $5.0 million increase to expand home visits for parenting skills and early identification of children with additional needs; a $3.0 million investment in literacy coaches; a $2.6 million increase in assessments for grades K-2; and other early literacy funding totaling $5.4 million (of which $2.0 million is GF/GP). Senate doubled the funding available for additional instructional time for kindergarteners, and did not fund a best practices clearinghouse or development of an elementary reading assessment (though both of these items are required to be undertaken by the Department of Education.) |
35,000,000 |
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10. Categorical Offset Payments. Senate included $6.4 million in additional funding to ensure no district receives less funding compared to last year when summing the per-pupil changes in the foundation allowance, at risk, best practices, and pupil performance. |
6,400,000 |
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11. Computer Adaptive Test and Financial Data Analysis Tools. Senate provided reimbursement to districts that purchase a computer adaptive test ($5.0 million), and reimbursement to districts to purchase a financial data analysis tool ($1.5 million). |
6,500,000 |
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12. Transportation Funding, ISD Operations, Math/Science Centers, Civics Education, Albion/Marshall. Senate increased grants for transportation costs by $2.4 million, math/science centers by $1.0 million, ISD operations by $1.0 million, provided $350,000 to Marshall for support of Albion high school pupils, and provided $60,000 for Civics Education. |
4,825,400 |
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13. School Bond Loan Fund Debt Service, Payments in Lieu of Taxes (PILT), Promise Zones. Governor and Senate funded required increases in obligation payments. |
18,383,700 |
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14. Gang Prevention and Intervention. Governor proposed a new $1.0 million program to provide grants for gang prevention and intervention. Senate did not include. |
0 |
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15. Michigan Virtual University (MVU). Governor proposed a $600,000 GF/GP increase for MVU to include community college courses in the online course catalog and for a network of school-based mentors for online learning. Senate did not include the increased funding. |
0 |
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16. MPSERS Additional Payment toward Liabilities. Governor and Senate proposed eliminating an additional payment toward unfunded accrued liabilities. |
(19,634,500) |
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17. Technical Cost Adjustments. Governor and Senate included technical adjustments for foundation allowances and special education due to newer estimates. |
(66,400,000) |
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18. Pupil Performance, Best Practices, and Technology Grants. Governor and Senate eliminated funding for pupil performance grants ($51.1 million), reduced best practices by $45.0 million, and reduced technology infrastructure grants by $16.5 million. |
(112,600,000) |
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19. Durant Bonds. Governor and Senate eliminated funding for Durant non-plaintiff debt service, since FY 2014-15 was the last year of payments. |
(39,500,000) |
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20. Educator Evaluations. Governor and Senate eliminated FY 2015-16 funding for educator evaluations, but added language for FY 2014-15 funding to be designated as a work project. (Senate also reduced current-year funding of the program from $14.8 million to $650,000.) |
(14,800,000) |
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21. Other Program Eliminations. Governor and Senate eliminated bus conversion grants ($3.0 million), professional development in STEM ($330,000), and a career readiness study ($250,000). Senate also eliminated stand-alone consolidation incentive grants ($2.0 million). |
(5,580,000) |
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22. Other Program Reductions. Governor reduced funding for strict discipline academies ($1.0 million), vocational education earmark ($1.0 million), and a payment for consolidated Intermediate School Districts ($7,000). Senate restored $500,000 of the reduction to SDAs. |
(1,507,000) |
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23. Economic Adjustments. Includes ($98,200) Gross and ($68,300) GF/GP for OPEB and $33,300 Gross and $12,500 GF/GP for other economic adjustments. |
(64,900) |
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24. Comparison to Governor's Recommendation. The Senate is $10.0 million Gross over and $4.2 million GF/GP below the Governor's recommendation. |
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$281,953,800 |
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FY 2015-16 Senate Appropriations Subcommittee Gross Appropriation................................ |
$13,968,913,900 |
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Boilerplate Changes from FY 2014-15 Year-to-Date: |
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1. Foundation Allowance. Governor proposed a $75 across-the-board increase. Senate proposed using '2x' formula with increases ranging between $50 and $100. In addition, Senate provided a two-year increase in the foundation allowance of consolidated districts, equal to $200 per pupil. (Sec. 20) |
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2. Online Learning. Governor and Senate added community colleges to the section allowing for dual enrollment in online courses, and added clarifying language that the primary district (instead of educating) is responsible for the program. Governor and Senate added a requirement that the primary district assign to each pupil a mentor to monitor the pupil's progress during the online course and supply the providing district with the mentor's contact information. Governor reduced payment from 8.33% of minimum foundation to 6.66%; Senate used 6.67%. (Sec. 21f) |
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3. Best Practices. Governor and Senate reduced the maximum per-pupil grant from $50 to $20, and changed the eligibility from meeting seven out of the current eight, to meeting both financial best practices (including providing department-approved training to board members if the General Fund balance is below 5.0%) and academic best practices (including administering a kindergarten entry assessment, administering department-approved diagnostic tools to monitor early literacy and reading skills in grades K-3, or assessing the effectiveness of college and career advising programs in the district), newly defined in the bill. (Sec. 22f) |
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4. Technology Readiness Grants. Governor added data systems that use evidence-based literacy diagnostic tools to inform teachers of pupils in grades K-3 as an allowable use of grant funding. Senate concurred, but also earmarked the funding into specific areas to focus the distributions, and added non-compete language. (Sec. 22i) |
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5. Enrollments from Out-of-State. Senate added a requirement for CEPI to investigate the number of children newly enrolling in Michigan between the fall and spring count days. (Sec. 25e) |
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6. Strict Discipline Academies. Senate restructured this section to be an added cost reimbursement. (Sec. 25f) |
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7. At-Risk. Governor and Senate deleted from the definition of at-risk pupil the following three criteria: victim of child abuse or neglect; pregnant teenager or teenage parent; and, family history of school failure, incarceration, or substance abuse. In addition, Governor and Senate added language requiring the Department of Education to collaborate with the Department of Human Services to prioritize assigning Pathways to Potential Success coaches to elementary schools that have a high percentage of pupils in grades K-3 not reading at grade level. Senate added language requiring that 50% of the increase be used for third grade reading, and earmarked $2.0 million for one-time funding to child and adolescent health centers to increase access to nurses and behavioral health services in schools. (Sec. 31a) |
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8. School Readiness. Senate added language allowing eligible three-year-olds to be funded if a four-year-old class would have had to return slot funding due to insufficient class size. (Sec. 32d) |
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9. Early Literacy. Governor added a new section stating that the increased funds in (new) sections 35a to 35g will be used to ensure children are reading at grade level by the end of third grade, and so that Michigan will be in the top 10 most improved states in fourth grade reading proficiency as measured by the 2019 National Assessment of Educational Progress (NAEP), and in the top 10 states overall by 2025. Senate concurred and further required the Superintendent to identify all staff hired under the early literacy sections to be designated as critical shortage. (Sec. 35.) |
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10. Parent University. Governor and Senate added a new section outlining a pilot of a parent education program for parents of children less than four years old so that children are ready to success at school entry. Grants would be the lesser of $130,000 or $120 per four-year-old in the district or consortium. The program would be overseen by a certificated teacher with an early childhood focus, with at least two hours per week for parents and their eligible children to participate in parent education programs with structured learning activities. (Sec. 35a) |
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11. Professional Development Related to Current State Literacy Standards. Governor and Senate added a new section providing funding for professional development with the Department determining the level of grant awards and collaborating with MVU to provide the training online to educators of pupils in grades K-3. (Sec. 35b) |
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12. Other Early Literacy Sections. Governor added five additional sections related to early literacy, including adoption of a certification test for newly certified elementary teachers (Sec. 35c); diagnostic tools to monitor the development of early literacy and reading skills of pupils in grades K-3 (Sec. 35d); early literacy coaches (Sec. 35e); grants for providing additional instructional time to pupils in grades K-3 that have been identified as needing additional support (Sec. 35f); and, establishing a clearinghouse of best practices (Sec. 35g). Senate did not include Sections 35c or 35g, but did require the Department of Education to complete these tasks under boilerplate in the Department budget bill. |
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13. Reallocation of Lapsing Special Education Money. Governor proposed eliminating a provision that distributes money that otherwise would lapse under special education to districts affected by changes related to the costs of itinerant staff. Senate did not concur and retained the language. (Sec. 51a(7)(c)) |
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14. Career and Technical Education (CTE)/Adult Education. Senate allowed CTE programs to enroll Adult Education participants, and allowed for the billing of general ed. course costs to Adult Education providers. Further, Senate added language prioritizing reimbursement based on capital and program expenditures, and other items. Finally, Senate halted the planned phase-out of funding based on prior providers, included a $500,000 pilot program linking CTE, Adult Education, and Michigan Works!, and returned funding to 90% enrollment, 10% completion. (Sec. 61a and 107) |
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15. CTE Early/Middle College Programs. Governor and Senate added early/middle college programs (five-year programs) designed to increase the number of residents with high quality degrees or credentials, and to increase the number of students who are college- and career-ready upon high school graduation, for programs that have been identified in the highest five career cluster rankings, allowing for a student to earn a high school diploma and achieve either a certificate, associate's degree, apprenticeship, or transferable credits. (Sec. 61b) |
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16. Dual Enrollment Reimbursement. Senate added a requirement for districts seeking reimbursement under this section to ensure that college credit awarded is accepted at any Michigan community college or university. (Sec. 64b) |
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17. Michigan College Access Network (MCAN). Governor and Senate transferred from the Higher Education budget the MCAN, which is intended to inform students of college and career options and provide an array of tools to increase the number of students adequately prepared to make decisions on college and career. Of the $3.6 million appropriation, $0.6 million is earmarked for dual enrollment outreach and an online career planning tool. (Sec. 67) |
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18. ISD Best Practices. Governor and Senate deleted two current best practices and changed the eligibility to meeting all remaining four best practices. Senate eliminated ISD best practices and rolled funding into the base. (Sec. 81) |
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19. Educator Evaluations. Governor and Senate struck language prohibiting the use of these funds unless HBs 5223 and 5224 of the previous legislative session were enacted. Senate reduced current-year funding to $1.0 million. (Sec. 95a) |
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20. Michigan Virtual University. Governor and Senate added a requirement that MVU create a statewide network of school-based mentors to help more students be successful online learners. Also, MVU must include online courses offered by community college in the statewide catalog of online learning, and language was added capping the amount of funding that MVU can use to subsidize the cost paid by districts for online courses at $1.0 million. (Sec. 98) |
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21. Deficit Districts. Governor and Senate included numerous changes related to deficit elimination plans and enhanced deficit elimination plans, reflective of 'early warning' legislation from the previous legislative session. (Sec. 102) |
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22. Transmittal of Budgetary Assumptions. Governor and Senate included a new section for transmitting budgetary assumptions, reflective of 'early warning' legislation that was deliberated in the previous legislative session. (Sec. 103a) |
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23. Determination of Fiscal Stress. Governor and Senate included a new section requiring a notification of fiscal stress, deficit, or financial emergency and a request for assistance, reflective of "early warning" legislation. (Sec. 103b) |
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24. Periodic Financial Status Reports. Governor and Senate included a new section requiring a district to submit periodic financial status reports if the Superintendent or State Treasurer determine that financial stress may exist, that a deficit is projected to arise, or that the district may be unable to meet its financial obligations, reflective of "early warning" legislation that was deliberated in the previous legislative session. (Sec. 103c) |
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25. Merit Exam. Governor and Senate changed 'shall' to 'may' for the requirement of one or more writing components, and added language allowing the Department to augment the college entrance and work skills components to develop the assessment, dependent on their alignment to Michigan content standards. (Sec. 104b) |
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26. M-STEP. Governor and Senate added grade 11 to the summative assessments for English Language Arts (ELA) and math (currently grades 3-10), and added language requiring the Department to field test additional components (fall and spring assessments to measure ELA and math in grades 1 and 2, and kindergarten entry assessment) in the assessment system beginning in FY 2015-16 for full implementation in FY 2016-17. |
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27. Repealers. Sections 12 (intent to appropriate for the upcoming year), 22c (equity payment), 22j (pupil performance grants), 31b (year-round schooling), 32r (Race to the Top Federal grant), 64c (career readiness study), 64d (IT education opportunities), 74a (bus conversion grants), 99b (STEM professional development), 147d (one-time additional payment toward MPSERS liabilities), and 166 (5.0% penalty if dispensing a family planning drug or device), were repealed by the Governor. Senate concurred, but did not repeal Sec. 166, and did repeal Sec. 22g (consolidation). |
Date Completed: 3-27-15 Fiscal Analyst: Kathryn Summers
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.