FINANCIAL LITERACY COURSE

Senate Bill 834

Sponsor:  Sen. Michael Switalski

House Committee:  Education

Senate Committee:  Education

Complete to 9-15-08

A SUMMARY OF SENATE BILL 834 AS PASSED BY THE SENATE 5-13-08

Senate Bill 834 would amend the Revised School Code (MCL 380.1278a) to include a course in financial literacy among specific courses that satisfy the math credit requirements under the Michigan Merit Standard Curriculum.

Currently, the code requires a student (beginning with those entering Grade 8 in 2006) to meet certain requirements before receiving a high school diploma. The requirements include the successful completion of at least four credits in math, including at least algebra I, geometry, and algebra II (or an integrated sequence of that course content that consists of three credits), and an additional math credit, such as trigonometry, statistics, pre-calculus, calculus, applied math, accounting, business math, or a retake of algebra II.

Senate Bill 834 would add a course in financial literacy (as described in Section 1165 of the code) as one of the additional math credits possible for students to study.

(Section 1165 of the code, added by Public Act 111 of 2002, requires the Department of Education to make available to schools one or more model programs for youth financial education, which must be designed to incorporate financial education throughout the curriculum for grades K through 12.  The model program(s) must be based on the concept of achieving financial literacy through the teaching of personal financial management skills and the basic principles involved with earning, spending, saving, borrowing, and investing. Each school district and public school academy is encouraged to adopt and implement the model program or one or more similar financial education programs.)

FISCAL IMPACT:

            SB 834 would have no fiscal impact on the state or school districts.

                                                                                           Legislative Analyst:   J. Hunault

                                                                                                  Fiscal Analyst:   Mary Ann Cleary

                                                                                                                           Bethany Wicksall

                                                                                                                       

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.