FY 2002-03 EDUCATION BUDGET - S.B. 1103 (S-1): FLOOR ANALYSIS

Senate Bill 1103 (S-1 as reported)

Committee: Appropriations

FY 2001-02 Year-to-Date Gross Appropriation $995,124,900
Changes from FY 2001-02 Year-to-Date:
1. Restoration of Unclassified Salaries. The budget restores the reduction from Executive Order 2001-9 to the Unclassified Salaries line item. 150,000
2. Increased Federal Administration Funding. The budget recommendation includes several large increases in administrative funding for IDEA (special education) and ESEA reauthorization, with partial offsetting decreases in Goals 2000 administration funding. 7,949,700
3. Transfer of Federal Grants to K-12. The Governor's budget transferred all Federal grants to the School Aid budget. The Senate restores 5 grants that are in their last year of funding. (790,407,900)
4. Economic, Lump Sum, and Sick Leave Adjustments. The budget includes positive economic adjustments, elimination of $375 lump-sum payments, and elimination of sick leave payouts from the 1997 Early Retirement package. 205,600
5. Revenue Source Shift for the Michigan Schools for the Deaf and Blind (MSDB). The budget recommends replacing all GF/GP funding supporting the MSDB with Federal special education dollars. The Department anticipates no problems with this revenue source shift. 0
6. Elimination of Technical Resource and Reproduction Center. The budget eliminates this Federally and Locally funded program, which will instead be funded by a direct special education Federal grant. No change in services provided is anticipated. (1,250,000)
7. Roll-Up of Several MSDB Lines. Funding appropriated for Camp Tuhsmeheta, Private Gifts for the Blind, and Private Gifts for the Deaf are proposed to be rolled into the MSDB Operations line item. 0
8. Teacher Quality Enhancement Grant. The budget eliminates the "placeholder" for this line item, since the State did not receive this grant. (1,000)
9. School Breakfast Program. The budget recommends an increase in funding for the State's School Breakfast Program to cover the increased costs and numbers of breakfasts served. 946,900
10. Information Technology (IT) Operations. The budget proposes to reduce Federal authorization funding levels in the IT Operations line for IT services that are no longer needed. (1,863,200)
11. Other Changes. Miscellaneous changes in the proposed budget include offsetting decreases in various lines to fulfill the reductions required in E.O. 2001-9 and an increase in Special Education Operations to fund another auditor at $95,100. (54,900)
12. Comparison to Governor's Recommendation. The Senate recommendation is $120,904,100 Gross (Federal) and $0 GF/GP over the Executive recommendation.
Total Changes ($784,324,800)
FY 2002-03 Senate Appropriations Committee Gross Appropriation $210,800,100
FY 2002-03 EDUCATION BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 2001-02 Year to Date:
1. Office for Safe Schools. The budget increases the allocation to fund this office from $200,000 to $225,000, and eliminates a subsection requiring the Office to work with the State Police to establish a toll-free school violence hotline since it has already been established. (Sec. 211)
2. Special Education Auditors. The budget includes new language allocating funds from Part 1 to support two special education auditors to audit school districts. (Sec. 213)
3. User Fees for Department of Information Technology (DIT). The budget includes a new section requiring the Department to pay user fees to the DIT for technology related services and projects. (Sec. 214)
4. Information Technology (IT) Work Projects. The budget includes a new section stating that IT appropriations may be designated as work projects and carried forward to support technology projects under the direction of the DIT. (Sec. 215)
5. Receive and Retain Reports Funded Through Appropriations. The Governor eliminated this section, requiring the Department to receive and retain reports funded through appropriations. The Senate retained the section. (Sec. 216)
6. Privatization Plans. The Governor eliminated this section, requiring the submission or project plans before beginning attempts to privatize. The Senate retained the section. (Sec. 217)
7. Buy American/Depressed and Deprived Communities. The Executive budget eliminates these sections, requiring the Department to purchase American-made products, and to encourage business in depressed and deprived communities. The Senate retained the sections. (Sec. 218 and Sec. 219)
8. Personal Service Contracts Reports. The Governor eliminated this requirement that the Department report on the number and types of personal service contracts awarded without competitive bidding. The Senate retained the section. (Sec. 222)
9. Special Education Quality Assessment Panel and School Health Services Consultant. The budget eliminates two sections allowing the Department to allocate funds to support these services.
10. Report on Restricted Fund Balances. The budget eliminates this section, requiring the Department to report on FY 2001-02 restricted fund balances, projected revenues, and projected expenditures.
11. Per Diem Payments to the State Board and State Tenure Commission. The budget reduces the number of days members of these boards can be reimbursed, from 30 to 24. (Sec. 301)
12. Michigan School for the Blind (MSB) Superintendent's House. The budget removes a subsection prohibiting the Department from declaring the Superintendent's house at the MSB as surplus property. (Sec. 403)
13. Reclassification of Michigan Schools for the Deaf and Blind (MSDB) Employees Study. The budget eliminates a subsection requiring the Department of Civil Service to conduct a review of all positions within the MSDB and consider appropriate reclassifications. (Sec. 404)
14. National Board Certification Grants. The Governor's budget changes language in this section from "shall pay one-half of the application fee" to "may pay one-half of the application fee". The Senate retains the "shall pay" language. (Sec. 704)
15. Compliance with School Aid Act for Ages 0-5 Funding. The budget eliminates a section requiring Federal, State, or Local funding for early childhood programs be in agreement with the comprehensive community plan created to meet the requirements of the K-12 Parent Involvement and Education grants.
16. $1,000 Earmark to Grand Valley State University for Autism Programs and Services. The budget eliminates this section earmarking $1,000 from Special Education Operations to fund autism programs and services at GVSU.

Date Completed: 2-28-02 - Fiscal Analyst: Kathryn Summers-Coty