SB0833: SENATE-PASSED (Date Completed: 05-4-22) - FY 2022-23 DEPARTMENT OF EDUCATION BUDGET

FY 2022-23 DEPARTMENT OF EDUCATION BUDGET S.B. 833 (S-3): SENATE-PASSED

Senate Bill 833 (S-3 as passed by the Senate)

Committee: Appropriations

			CHANGES FROM FY 2021-22 YEAR-TO-DATE
FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE	FY 2021-22 YEAR-TO-DATE*	FY 2022-23 SENATE-PASSED	AMOUNT	PERCENT
FTE Positions............................................................	615.5	616.5	1.0	0.2
GROSS.....................................................................	1,928,277,900	414,471,000	(1,513,806,900)	(78.5)
Less:
Interdepartmental Grants Received.......................	0	0	0	0.0
ADJUSTED GROSS.................................................	1,928,277,900	414,471,000	(1,513,806,900)	(78.5)
Less:
Federal Funds........................................................	1,807,875,600	302,950,800	(1,504,924,800)	(83.2)
Local and Private....................................................	8,108,800	8,119,000	10,200	0.1
TOTAL STATE SPENDING......................................	112,293,500	103,401,200	(8,892,300)	(7.9)
Less:
Other State Restricted Funds.................................	9,785,400	9,919,700	134,300	1.4
GENERAL FUND/GENERAL PURPOSE.................	102,508,100	93,481,500	(9,026,600)	(8.8)
PAYMENTS TO LOCALS.........................................	18,327,700	18,858,700	531,000	2.9

*As of April 12, 2022.

	Gross	GF/GP
FY 2021-22 Year-to-Date Appropriation.................................................	$1,928,277,900	$102,508,100

Changes from FY 2021-22 Year-to-Date:
1. Michigan School for the Deaf. The Governor included $3.0 million Gross and GF/GP to support ongoing costs at the Michigan School for the Deaf. The Senate did not include.	0	0
2. Educator Recruitment initiatives. The Governor included an additional $800,000 Gross and GF/GP and 4.0 FTE positions in the Educator Excellence line item to oversee programs in the School Aid budget that are focused on the recruitment and retention of educators in Michigan. The Senate did not include.	0	0
3. Great Start Readiness Operations. The Governor included an additional $700,000 Gross and GF/GP and 6.0 FTE positions in the Great Start Readiness Operations line item to oversee the expansion of early childhood programs in the School Aid budget. The Senate did not include.	0	0
4. Mental health support. The Governor included $200,000 Gross and GF/GP and 1.0 FTE position to coordinate and provide technical assistance to schools receiving mental health funding. The Senate did not include.	0	0
5. Child Development and Care matching adjustment. The Governor/Senate included a fund shift of $624,200 from Federal funds to GF/GP to align with Federal matching requirements.	0	624,200
6. State Aid to Libraries. The Senate included $500,000 Gross and GF/GP to increase State Aid to Libraries. This would bring total FY 2022-23 appropriations to $15.5 million and the per capita rate to $0.50.	500,000	500,000
7. Library MPSERS costs. The Senate included $31,000 Gross and GF/GP to offset the increased MPSERS costs to participating libraries.	31,000	31,000
8. Michigan Center for Educational Research. The Senate included a $100 Gross and GF/GP placeholder for the Michigan Center for Educational Research.	100	100
9. FY 2021-22 One Time Removal. The Governor/Senate included the removal of $1,499,773,500 Gross and $3,910,000 GF/GP in FY 2021-22 One-Time Appropriations, of which $1,495,863,000 Gross and Federal was related to One-Time child care enhancements.	(1,499,773,500)	(3,910,000)
10. FY 2021-22 Supplemental Removal. The Governor/Senate included the removal of $16.0 million Gross and $6.0 million GF/GP contained in FY 2021-22 Supplemental appropriation from PA 133 of 2021 and $250,000 Gross and Federal from PA 9 of 2022.	(16,250,000)	(6,000,000)
11. Partnership District Support. The Senate reduced the Partnership District Support line item $791,100 Gross and GF/GP.	(791,100)	(791,100)
12. Other Changes. The Governor rolled up the TEACH Scholarship line item into the Child Development and Care Contracted Services line item. The Governor continued the One-Time Appropriation for the School Board Member Training Reimbursement ($260,000 Gross and GF/GP) and Poet Laureate ($100,000 Gross and GF/GP). The Senate maintained the TEACH Scholarship line item, continued the School Board Member Training line item in ongoing appropriations, and included 1.0 FTE position in the Before- and After-School Programs line item.	(100,000)	(100,000)
13. Economic Adjustments. Includes $2,576,600 Gross and $619,200 GF/GP for total economic adjustments, of which an estimated negative $800,800 Gross and negative $217,700GF/GP is for legacy retirement costs (pension and retiree health).	2,576,600	619,200
14. Comparison to Governor's Recommendation. The Senate is $5,060,000 Gross and GF/GP under the Governor.

Total Changes.....................................................................................	($1,513,806,900)	($9,026,600)
FY 2022-23 Senate Passed Appropriations..................................................	$414,471,000	$93,481,500

FY 2022-23 Boilerplate Changes from FY 2021-22 Year-to-Date:

1. Deleted Sections. The Governor/Senate deleted a number of sections, which include: 235 (Department Survey) 236 (Rural Transportation Funding Report), 1020 (30% Hourly Reimbursement Increase), 1021 (Enrollment Based Payments), 1022 (Stabilization Grant Program), 1023 (Technical and Financial Support Grants), 1024 (Bonus Reimbursement Payments), 1025 (Waiving Copays), 1026 (Bonus Pay), 1027 (Infant And Toddler Contracts), 1028 (Department Administration), 1030 (ARP-Child Care Stabilization Work Project), 1031 (CRRSA-Child Care Stimulus Work Project), 1032 (ARP-Child Care Stimulus Work Project), 1033 (Child Care Award Work Project), 1034 (ARP-Child Care Entitlement Work Project), and 1102 (Michigan Poet Laureate).

2. Retained Sections. The Governor deleted and Senate retained a number of sections, which include: 216 (FTE Quarterly Report), 218 (State Administrative Board transfers), 221 (policy change report), 222 (protects employees who communicate with the Legislature), 223 (retention of reports), 224 (work project prioritization), 225 (Severance Pay Report), 227 (Vaccine Requirement Prohibition), 229 (Federal Accountability Plan amendment notification), 230 (nonpublic school mandate report), 1004 ($5.0 million to the TEACH Scholarship Program), 1010 (notification of Federal changes to the Child Development and Care Program), and 1012 (Early Childhood Mental Health Consultation).

3. Legal Services. The Senate modified the section that requires that the department conduct all legal services through the Attorney General, from "shall" to "may" and allows the department to seek reimbursement from the Attorney General for legal services performed outside of the Attorney General. (Sec. 208)

4. General Fund Lapse Report. The Governor/Senate modified the date for the General Fund lapse report from November 30 to December 31. (Sec. 209)

5. Contingency Funds. The Governor increased the Federal contingency fund amount from $5.0 million to $10.0 million, the Restricted amount from $400,000 to $700,000, and the Private amount from $1.5 million to $3.0 million. The Senate deleted the section. (Sec. 210)

6. Teacher Certification Test Requirement. The Senate included "grounded in the science of reading" to the teacher certification text. (Sec. 507)

7. Early Childhood Literacy Program Administration. The Governor/Senate modified the appropriation for the administration of early childhood literacy programs from "not to exceed $1.0 million" to "not less than $1.0 million". (Sec. 702)

8. Before- and After-School Program. The Governor replaced the language for the before- and after-school programs from a competitive grant program to appropriating $500,000 to administer section 32n in the School Aid Act. The Senate included: (1) $750,000 to development professional learning opportunities for Indian boarding schools; (2) $150,000 and 1.0 FTE to provide departmental administrative support; and (3) to continue to provide before- and after-school program grants with any remaining dollars. (Sec. 1001)

9. Income Entry Threshold. The Governor increased the income entry threshold for the Child Development and Care program from 185% to 200% of the Federal Poverty Level and removed the trigger for implementing a waiting list if enrollment exceeds 40,000 children and the triggers that allow the entry threshold to be increase or decrease depending on enrollment. The Senate removed references to the one-time Federal funding. (Sec. 1009)

10. Child Care Enhancement Report (NEW). The Senate included a status report on the various child care enhancements that were part of the $1,495,863,500 in Federal one-time appropriations in FY 2021-22. (Sec. 1013)

11. MPSERS costs to Libraries (New). The Senate included a new section that appropriations $31,000 to offset a portion of MPSERS retirement contributions owed by participating libraries. (Sec. 803)

12. Michigan Center for Educational Research (NEW). The Senate included a new section to appropriate $100 to the Michigan Center for Educational Research and Information to upgrade educational data analytics in the State. (Sec. 1101)

13. Technical Changes. The Governor/Senate made a number of technical modifications that include date changes, Part 1 appropriation changes, legacy cost adjustments, and standardized language. (Secs. 201, 212, 214, 225, 230, 505, 601, 701, and 1007)

Date Completed: 05-4-22 Fiscal Analyst: Cory Savino

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.