FY 2004-05 EDUCATION BUDGET S.B. 1065 (H-1): HOUSE-PASSED

House Changes to Senate-Passed:
1. School Breakfast. The House reduced the GF-funded School Breakfast line item by $2,000,000 with the presumption that the line is over-funded. The Governor later included this reduction in her revised recommendation dated 5/27/04.	(2,000,000)
2. Travel. The House restored the 50% reduction in Travel allocations that were included by the Senate, of which $37,750 were GF-funded.	409,250
3. National Board Certification Grants. The House restored the elimination of restricted fund grants which assist teachers in obtaining National Board certification.	100,000
4. State Board of Education Per Diem Payments. The House restored the elimination of GF-funded per diem payments to State Board of Education members.	24,400
Total Changes	($1,462,350)
FY 2004-05 House-Passed Gross Appropriation	$113,557,400

FY 2004-05 EDUCATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2004-05 Senate-Passed:

1. Personal Service Contracts. The House eliminated two subsections included by the Senate which: 1) prohibit the Department from entering into personal service contracts awarded without competitive bidding valued at more than $10,000; and, 2) prohibit the Department from entering into more than one personal service contract with any one contractor (other than utility contractors) in a fiscal year. (Sec. 214)

2. Travel Restrictions. The House added an exemption to the prohibition against out-of-state travel if the travel is required to "maintain" Federal funding. (The Senate had included an exemption for "receiving" Federal funding). (Sec. 215)

3. Auditor General Costs. The House did not include the Senate's new section requiring the Department to pay the full amount of any bills submitted by the Auditor General for all costs incurred by the AG while conducting audits of Federally-funded programs. (Sec. 218)

4. Contingency Funds. The House included contingency fund appropriations for Federal ($1,000,000), Local ($250,000), Private ($3,000,000), and State Restricted funds ($700,000). (Sec. 218)

5. State Board Per Diem Payments. The House restored the per diem payments boilerplate that the Senate had eliminated because the House also restored the funding for these payments in Part 1. (Sec. 301)

6. State Board of Education Travel. The House did not adopt the Senate's prohibition that no funds in Part 1 be expended for in-state or out-of-state travel for the State Board. Instead, the House retains current law which states that no amount appropriated in Part 1 be expended for out-of-state travel. (Sec. 302)

7. Expenditure Report on the Michigan School for the Blind Former Site. The House retained a current law section requiring quarterly reports on expenditures made from the amount appropriated for General Services at the MSB former site. The Senate had concurred with the Governor to delete the section. (Sec. 410)

8. Earmarking of up to $2,000,000 for Before- and After-School Programs. The Senate had included a boilerplate section requiring the Department to use up to $2,000,000 in Part 1 funds to support statewide before- and after-school programs. Additional funding was not provided in Part 1. The House did not include this section. (Sec. 704)

9. National Board Certification Grants. Since the House restored funding in Part 1 for this program, the House also restored language eliminated by the Senate which describes the National Board Certification grants program. (Sec. 704)

Date Completed: 6-9-04 Fiscal Analyst: Kathryn Summers-Coty Bill Analysis @ http://www.senate.michigan.gov/sfa June 11, 2004 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hiedu_hp.doc