FY 2002-03 EDUCATION BUDGET - S.B. 1103 (CR-1*): CONFERENCE REPORT

FY 2001-02 Year-to-Date Gross Appropriation $995,124,900
Changes from FY 2001-02 Year-to-Date:
Items Included by the Senate and House
1. Federal Grants. The House concurred with the Senate to transfer all but five Federal grants (those in their last year of funding) to the School Aid budget. (790,407,900)
2. Increased Federal Administrative Funding. The Senate and House concur with the Governor to include large increases in ESEA and IDEA administrative funding. 7,949,700
3. Information Technology Operations. The House and Senate concurred with the Governor to reduce this unit by $1,863,200 of Federal authorization for IT services no longer needed. (1,863,200)
4. School Breakfast. The House, Senate, and Governor increased funding for the reimbursement of school breakfasts due to increasing costs and number of breakfasts served. 946,900
5. Economic Adjustments. The House and Senate concurred with the Governor to include $500,500 Gross ($169,000 GF/GP) in economic adjustments. 500,500
6. Other Changes. The House and Senate concur with the Executive recommendation to eliminate a $1,000 "placeholder" for a grant that is no longer offered, eliminate funding for the Technical Resource/Reproduction Center (which will be funded via a direct grant), eliminate lump-sum payments, and fund an additional special education auditor ($95,100). (1,468,700)
Conference Agreement on Items of Difference
7. Elimination of $100 Points-of-Difference. The Conference Report eliminates 18 $100 points-of-difference for all GF/GP funded line items, and a $100 "placeholder" for the MVU. 0
8. Revised Executive Recommendation - Federal Administrative funding. The Conference Report concurs with the House's inclusion of $5,102,400 for administration of the Reading First, Improving Teacher Quality, AIDS Grants, and Elementary and Secondary Education Act programs, and with the reduction of $100,500 Rural Schools funding to be transferred to the MVU in compliance with distance learning provisions in the School Aid Act. 5,001,900
9. School Readiness Grants. The Conference Report reduces funding for the School Readiness grants by $1,200,000 from the year-to-date allocation (cigarette tax boilerplate). (1,200,000)
10. Restricted Fund Grants. The Conference Report concurs with three increases in restricted fund expenditures adopted by the House, including $200,000 for motorcycle safety, $100,000 for off-road vehicle safety, and $50,000 for National Board certification grants. 350,000
11. Other Changes. The Conference Report includes other changes including budgetary savings (1% reduction - $301,200), early retirement savings ($721,900), and additional lease revenue from the Dept. of Corrections at the Michigan School for the Blind former site of $482,000. (541,100)
Total Changes ($780,731,900)
FY 2002-03 Conference Report Gross Appropriation $214,393,000
Amount Over/(Under) GF/GP Target: $0
FY 2002-03 EDUCATION BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 2001-02 Year-to-Date:
Items Included by the Senate and House
1. Special Education Auditors. The Senate and House concurred with the Governor to require the Department to fund two special education auditors to audit school districts. (Sec. 213)
2. User Fees for DIT. The Senate and House concurred with the Governor to require the Department to pay user fees to the Department of Information Technology for technology-related projects and services. (Sec. 214)
3. Work Projects for DIT. The Senate and House concurred with the Governor to allow Information Technology projects to be designated as work projects and carried forward into future fiscal years. (Sec. 215)
4. "Standard" Boilerplate. The Senate and House included several sections of "standard" boilerplate, including receive/retain copies of reports funded through appropriations, privatization plans, encourage business in depressed/deprived communities, and personal service contracts. (Sec. 216, 217, 219, and 220 respectively)
Conference Agreement on Items of Difference
5. Office for Safe Schools. The Conference Report concurs with the House to earmark up to $50,000 for advertising the toll-free anti-violence school hotline. (Sec. 211)
6. Purchase of Michigan-made Products. The Conference Report agrees with the House to add preference language for Michigan-made products, in addition to American-made products. (Sec. 218)
7. Early Retirement and Budgetary Savings. The Conference Report includes target language on satisfying early retirement and budgetary savings line items. It also includes an exemption from early retirement replacement policies for positions funded 100% with Federal or restricted funds. (Sec. 222)
8. Contingency Appropriations Hinging on Cigarette Tax. The Conference Report includes a new section restoring $1,200,000 to School Readiness Grants if a 30 cent increase in the Cigarette Tax is approved. (Sec. 223)
9. Per-Diem State Board Reimbursements. The Conference Report concurs with the House to provide for 30 per diem payments to Board members. (Sec. 301)
10. Michigan School for the Blind Former Site. The Conference Report concurs with the House to retain current law language prohibiting the Superintendent's house from being declared surplus property, and setting up a work project for maintenance at the School. A new section is also concurred in which would require lease revenues to be designated specifically for maintenance and renovation of the space in the lease agreement. (Sec. 403 and 409)
11. Michigan Schools for the Deaf and Blind. The Conference Report concurs with the House to retain current law calling for a Civil Service reclassification study of positions at the Schools. Also, the Report retains language stating legislative intent that parents have a choice regarding educational placement of their children. (Sec. 404 and 406)
12. Restricted Fund Balances. The Conference Report concurs with the House to include a new section requiring the Department to report on restricted fund balances, and to look at ways to minimize testing/certification costs. (Sec. 503)
13. Federal Grant Applications. The Conference Report concurs with the Revised Executive Recommendation to include a section providing assurance to the U.S. Department of Education that the application for Community Service and 21st Century Learning Centers grants was developed in consultation with appropriate State officials. (Sec. 708)
14. Michigan Virtual University. The Conference Report concurs with the Revised Executive Recommendation to include a section requiring the Department and MVU to work collaboratively to implement Sec. 98a of the State School Aid Act. (Sec. 902)

Date Completed: 06-12-02 - Fiscal Analyst: Kathryn Summers-Coty