TRADE ACADEMIES - S.B. 1110 (S-2): FLOOR ANALYSIS

Senate Bill 1110 (Substitute S-2 as reported)

Sponsor: Senator Mike Rogers

Committee: Human Resources, Labor and Veterans Affairs

CONTENT

The bill would amend the Revised School Code to exempt trade academies from the cap on the combined total number of contracts allowed for public school academies whose authorizing body is the governing board of a State public university. ("Trade academy" would mean a public school academy that was required by contract issued by its authorizing body to operate a curriculum that would require all pupils to engage in job-shadowing, work-study, externships, cooperative programs, or similar vocational experience opportunities with one or more specified businesses or industries.)

The Code limits the combined total number of contracts for public school academies issued by all State public universities to 125 through 1998 and 150 thereafter. The total number of contracts issued by any one university must not exceed 50% of the maximum combined total number that may be issued. The bill would exclude trade academies from both of these caps.

Under the Code, if the State Board of Education finds that an authorizing body is not engaging in appropriate continuing oversight of one or more public school academies operating under a contract, the State Board may suspend the power of the authorizing body to issue new contracts. The bill would replace the State Board with the Superintendent of Public Instruction.

MCL 380.502 - Legislative Analyst: N. Nagata

FISCAL IMPACT

The bill would have an indeterminate fiscal impact on State and local government. Of the 107 public school academies currently in operation, 89 were authorized by State public universities. Exempting trade academies from the limit on authorizations by universities would tend over time to increase the number of public school academies by an unknown amount.

It is estimated that 75% of public school academy enrollment comes from students previously enrolled in a local school district. The transfer of a student from a local district to a public school academy results in reduced foundation allowance revenue to the local school district. Approximately 25% of public school academy enrollment consists of students formerly in private or home schools. Enrollment of these students in public school academies would increase the State cost of the foundation allowance. The foundation allowance appropriation, however, is set in the State School Aid Act. Pupil enrollment in excess of the budgeted amount could result in proration of foundation allowance payments to local districts and public school academies.

Date Completed: 5-11-98 - Fiscal Analyst: E. Prattfloor\sb1110 - Analysis available @ http://www.michiganlegislature.org

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.