FY 2002-03 EDUCATION BUDGET - S.B. 1103 (H-1): HOUSE PASSED

FY 2002-03 Senate-Passed Gross Appropriation $210,800,100
House Changes to Senate-Passed
1. Revised Executive Recommendation Federal Funding. The House concurred with the Revised Governor's recommendation to increase Federal funding (and corresponding FTEs) in several lines. 4,964,000
2. Corrections Academy Lease. The House concurred with the Revised Governor's recommendation to increase the IDG (rent) from Corrections for the Corrections Academy Lease at the former Michigan School for the Blind site. 482,000
3. Motorcycle Safety. The House included $200,000 in restricted Motorcycle Safety Fees to purchase new motorcycles for the safety program. 200,000
4. Off Road Vehicle Safety Training Grants. The House included $100,000 in restricted revenues to increase training grants to a total of $294,300. 100,000
5. National Board Certification. The House doubled the National Board Certification grants line, which covers up to one-half of the cost for approved teachers to seek National Board Certification. This funding would come from restricted Teacher Certification Fees. 50,000
6. School Support Services. The House concurred with the Revised Governor's recommendation to increase restricted revenues (Commodity Distribution Fees) in this program by $20,000 to reflect an increased need for services. 20,000
7. Items-of-Difference. The House included $100 items-of-difference in 18 GF/GP-funded line items, in order to create points-of-difference with the Senate-passed version of the bill. 1,800
8. Michigan Virtual University. The House included a $100 "placeholder" for the Michigan Virtual University. 100
9. Early Retirement. The House included a $100 "placeholder" for early retirement, pending estimates of the cost savings due to persons applying for early retirement. (100)
Total Changes $5,817,800
FY 2002-03 House-Passed Gross Appropriation $216,617,900


FY 2002-03 EDUCATION BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 2002-03 Senate-Passed
1. Hiring Freeze and Early Retirement. The House amended the hiring freeze reporting requirement to be electronically submitted, and also exempted positions funded 80% or more with Federal or restricted dollars from the early retirement replacement ratio of 1 to 4. (Sec. 205)
2. Internet Reporting. The House amended this section to require that reports be transmitted via e-mail to the appropriations subcommittees, fiscal agencies, and State budget office. (Sec. 207)
3. Buy American/Buy Michigan. The House restored preference language for purchasing Michigan products. (Sec. 218)
4. Anti-Violence School Hotline. The House includes an earmark of up to $50,000 for advertising the toll-free anti-violence school hotline previously established by the State Police. (Sec. 211)
5. Maximum Number of Per Diem Payments. The House retained the current law maximum number of days (30) that State Board and State Tenure Commission members may be reimbursed. The Governor and Senate had reduced this number to 24 to reflect funding in Part 1. (Sec. 301)
6. Michigan Schools for the Deaf and Blind (MSDB). The House retained current law boilerplate prohibiting the Superintendent's House from being declared surplus property, and retained language establishing a yearly work project for the purpose of special maintenance at the site. (Sec. 403)
7. Civil Service Reclassification Study. The House retained current law requiring the Department of Civil Service to evaluate and recommend any possible job reclassifications at the Michigan Schools for the Deaf and Blind. (Sec. 404)
8. Intent Language, MSDB. The House retained intent language, stating that parents continue to have a choice regarding the educational placement of their deaf or hard of hearing children. (Sec. 406)
9. Expenditures at the Michigan School for the Blind Former Site (MSB). The House retained current law language requiring detail of expenditures at this former site, and a section requiring the Department to report on expenditures for capital improvements funded from Mid-Michigan Academy lease revenues. (Sections 408 and 407 respectively)
10. Rental Payments at MSB. The House included a new section requiring that rental payments at the MSB former site be used only to upgrade the building designated in the lease agreement. (Sec. 409)
11. Restricted Fund Balances. The House included a new section requiring the Department to provide an annual report on restricted fund balances, and to explore minimizing the costs to teachers for services rendered by the Department. (Sec. 503)
12. Audit Processes. The House retained current law regarding audit and enrollment processes. (Sec. 601)
13. Reading Plan for Michigan. The House includes language stating that the Reading Plan for Michigan is eligible for Federal reading grants appropriated in the School Aid Act. (Sec. 705)
14. Innovative Program Demonstration Grants Reporting. The House requires districts that received these grants to report on program results by September 30, 2002, and requires the Department to compile these reports. (Sec. 706)
15. Federal Grant Application. The House concurred with the Revised Governor's recommendation to include a new section requiring the Department to provide assurance to the U.S. Department of Education that the application for certain Federal grants was developed in consultation and coordination with State officials. The House further added a subsection to this, requiring the Department to encourage grantees to collaborate with local organizations that deliver services to children from birth to age 5. (Sec. 708)
16. Michigan Virtual University (MVU). The House concurred with the Revised Governor's recommendation to include new language requiring the Department and MVU to work collaboratively to implement Sec. 98a of the School Aid Act. The House added another section earmarking $100 to MVU to promote the use of educational technology and technology-based education, and to support general operations at the MVU. (Sections 904 and 905)

Date Completed: 5-15-02 - Fiscal Analyst: Kathryn Summers-Coty