DEPARTMENT OF EDUCATION

Summary: FY 2008-09 Appropriations

SB 1096 CR-1

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Analysts: Mary Ann Cleary and Bethany Wicksall

		FY 2008-09	FY 2008-09	FY 2008-09	FY 2008-09	*Difference: House* *From FY 2007-08 YTD*
	FY 2007-08 YTD	Revised Executive	Senate	House	Conference	*Amount*	%
IDG/IDT	$0	$0	$0	$0	$0	$0	0.0
Federal	76,072,200	70,598,500	69,675,500	70,598,500	70,598,500	(5,473,700)	(7.2)
Local	6,448,900	6,924,600	6,924,600	6,924,600	6,924,600	475,700	7.4
Private	3,171,800	3,087,800	3,087,800	3,087,800	3,087,800	(84,000)	(2.6)
Restricted	7,136,500	6,980,800	6,980,800	6,980,800	6,980,800	(155,700)	(2.2)
GF/GP	7,075,400	8,074,500	7,874,500	8,124,600	7,551,400	476,000	6.7
Gross	$99,904,800	$95,666,200	$94,543,200	$95,716,300	$95,143,100	*($4,761,700)*	*(4.8)*
FTEs	472.5	491.0	483.0	491.5	488.5	16.0	3.4

Note: FY 2007-08 figures reflect supplementals and Executive Order (EO) actions throughMay 29, 2008.

Overview

The State Board of Education is an eight-member elected board constitutionally mandated to provide leadership and supervision for public education inMichigan. The Michigan Department of Education (MDE) is the administrative arm of the Board charged with implementing state and federal educational mandates and administering programs. Major responsibilities of the MDE include developing and overseeing the K-12 school system, certifying teachers, disbursing funds to educational organizations, and providing technical assistance to school districts.

Major Budget Changes From FY 2007-08 YTD Appropriations	FY 2007-08 YTD	House Change From YTD
*1. Educational Assessment and Accountability* Executive, Senate and House increase funding by $1.1 million and 7.0 FTEs as the Department assumes responsibility for certain educational assessment functions which are currently done under contract to avoid contract cost increases. Also provides $117,200 and 1.0 FTE for additional English Language Proficiency Assessment staff and $300,000 to support a best practices study for assessing students with disabilities. Budget reductions include eliminating $4.0 million in funding for the data articulation system, eliminating the one-time funding of $3.0 million for the creation of the testing item bank, eliminating $455,000 for the longitudinal data system, and reducing administrative funding by $292,100.	FTEs Gross Federal GF/GP	34.3 $15,608,100 15,608,100 $0	8.0 ($6,222,000) ($6,222,000) $0
*2. Audit and Oversight of School Aid Programs* Executive, Senate and House increase budget for audit and oversight of school aid programs including $300,000 and 3.0 FTEs for high priority schools, $100,000 and 1.0 FTE for at-risk programs, $100,000 and 1.0 FTE for the school readiness program, and $100,000 and 1.0 FTE for special education programs in order to comply with recent audit recommendations. Conference reduces the increase to $89,000 for each new FTE.	FTEs Gross GF/GP	N/A N/A N/A	6.0 $534,000 $534,000
*3. 21st Century Schools Program* Executive and House increase budget by $500,000 and 3.0 FTEs for the administration of the grant program for building small high schools which is included in the School Aid budget. Senate does not include this program in the budget. Conference concurs with the Senate	FTEs Gross GF/GP	0.0 $0 $0	0.0 0 0
4. *Michigan* *School* *for the Deaf and Blind (MSDB)* Executive, Senate and House add 6.0 FTEs at the MSDB at a cost of $480,000 in anticipation of 10% growth in student membership. The budget is reduced by $90,000 to recognize the elimination of the Summer Institute program whose services are now offered at the department'sLowIncidenceOutreachCenter.	FTEs Gross Federal Local Private Restricted	103.0 $13,184,100 5,997,300 6,227,600 740,600 218,600	6.0 $390,000 0 480,000 (90,000) 0
*5. Detroit Public Schools Performance Audit* Senate adds $300,000 for a performance audit of Detroit Public Schools. House does not include this line. Conference concurs with the House.	Gross GF/GP	$0 $0	$0 $0
*6. Consolidated Administrative and IT Services* Executive, Senate and House recognize the transfer of human resources operations to the Civil Service Commission for a reduction of $603,500 and 5.0 FTEs as well as IT administrative savings of $10,300. The budget also includes an increase of $100,000 to support consolidated internal audit operations.	FTEs Gross Federal Local Restricted GF/GP	N/A N/A N/A N/A N/A N/A	(5.0) ($513,800) (342,400) (500) (54,400) ($116,500)
7. *Federal* *School* *Improvement Grant* House recognizes the Revised Executive recommendation, which includes 5.0 FTEs and $923,000 in federal funds to administer a new $17.5 million federal grant for school improvement included in the School Aid budget. Conference concurs with House.	FTEs Gross Federal	0.0 $0 $0	5.0 $923,000 $923,000
8. *Comprehensive* *School* *Reform and Finance Study* House includes $100 placeholder for this study. Conference concurs with Senate.	Gross GF/GP	$0 $0	$100 $100
*9. Teacher Tenure Support Staff* House adds $50,000 and 0.5 FTE to help eliminate the backlog in teacher tenure cases. Conference includes $48,300 and 0.5 FTE.	Gross GF/GP	$0 $0	$48,300 $48,300
*10. Economics* Executive, Senate and House provide $137,000 Gross/$15,600 GF/GP increase for economic changes in salaries and wages, retirement, insurance, workers compensation, and building occupancy charges.	Gross Federal Local Private Restricted GF/GP	N/A N/A N/A N/A N/A N/A	$137,000 120,500 (3,800) 6,000 (1,300) $15,600

Major Budget Changes From FY 2007-08 YTD Appropriations

FY 2007-08 YTD

House

Change

From YTD

1. Educational Assessment and Accountability

Executive, Senate and House increase funding by $1.1 million and 7.0 FTEs as the Department assumes responsibility for certain educational assessment functions which are currently done under contract to avoid contract cost increases.

Also provides $117,200 and 1.0 FTE for additional English Language Proficiency Assessment staff and $300,000 to support a best practices study for assessing students with disabilities.

Budget reductions include eliminating $4.0 million in funding for the data articulation system, eliminating the one-time funding of $3.0 million for the creation of the testing item bank, eliminating $455,000 for the longitudinal data system, and reducing administrative funding by $292,100.

FTEs

Gross

Federal

GF/GP

34.3

$15,608,100

15,608,100

8.0

($6,222,000)

($6,222,000)

2. Audit and Oversight of School Aid Programs

Executive, Senate and House increase budget for audit and oversight of school aid programs including $300,000 and 3.0 FTEs for high priority schools, $100,000 and 1.0 FTE for at-risk programs, $100,000 and 1.0 FTE for the school readiness program, and $100,000 and 1.0 FTE for special education programs in order to comply with recent audit recommendations.

Conference reduces the increase to $89,000 for each new FTE.

FTEs

Gross

GF/GP

N/A

N/A

N/A

6.0

$534,000

$534,000

3. 21st Century Schools Program

Executive and House increase budget by $500,000 and 3.0 FTEs for the administration of the grant program for building small high schools which is included in the School Aid budget.

Senate does not include this program in the budget.

Conference concurs with the Senate

FTEs

Gross

GF/GP

0.0

4. Michigan School for the Deaf and Blind (MSDB)

Executive, Senate and House add 6.0 FTEs at the MSDB at a cost of $480,000 in anticipation of 10% growth in student membership. The budget is reduced by $90,000 to recognize the elimination of the Summer Institute program whose services are now offered at the department'sLowIncidenceOutreachCenter.

FTEs

Gross Federal

Local
Private

Restricted

103.0

$13,184,100

5,997,300

6,227,600

740,600

218,600

6.0

$390,000

480,000

(90,000)

5. Detroit Public Schools Performance Audit

Senate adds $300,000 for a performance audit of Detroit Public Schools.

House does not include this line.

Conference concurs with the House.

Gross

GF/GP

6. Consolidated Administrative and IT Services

Executive, Senate and House recognize the transfer of human resources operations to the Civil Service Commission for a reduction of $603,500 and 5.0 FTEs as well as IT administrative savings of $10,300. The budget also includes an increase of $100,000 to support consolidated internal audit operations.

FTEs

Gross Federal

Local

Restricted

GF/GP

N/A

N/A

N/A

(5.0)

($513,800)

(342,400)

(500)

(54,400)

($116,500)

7. Federal School Improvement Grant

House recognizes the Revised Executive recommendation, which includes 5.0 FTEs and $923,000 in federal funds to administer a new $17.5 million federal grant for school improvement included in the School Aid budget.

Conference concurs with House.

FTEs

Gross

Federal

0.0

5.0

$923,000

$923,000

8. Comprehensive School Reform and Finance Study

House includes $100 placeholder for this study.

Conference concurs with Senate.

Gross

GF/GP

$100

$100

9. Teacher Tenure Support Staff

House adds $50,000 and 0.5 FTE to help eliminate the backlog in teacher tenure cases.

Conference includes $48,300 and 0.5 FTE.

Gross

GF/GP

$48,300

$48,300

10. Economics

Executive, Senate and House provide $137,000 Gross/$15,600 GF/GP increase for economic changes in salaries and wages, retirement, insurance, workers compensation, and building occupancy charges.

Gross

Federal

Local

Private

Restricted

GF/GP

N/A

N/A

$137,000

120,500

(3,800)

6,000

(1,300)

$15,600

Major Boilerplate Changes From FY 2007-08

Sec. 215. Professional Development Travel NEW

Senate adds new language prohibiting more than one employee from traveling out of state for a specific professional development conference or training seminar unless it is funded with federal or private dollars and requires more than one person from the department to attend.

House does not include this section.

Conference includes revised Senate language.

Sec. 215. Departmental Employee Contact with Legislature DELETED

Prohibits disciplinary action against a department employee for communicating with a Legislator or his or her staff.

Executive and House delete. Senate restores but renumbers to Section 216.

Conference concurs with Senate.

Sec. 217. Auditor General Bills - DELETED

Requires MDE pay Auditor General bills within 60 days for costs incurred doing audits of federally funded programs.

Executive, Senate and House delete.

Sec. 220. Timely Data MAINTAINED

Requires Department to provide data requested by Legislature, staff, and fiscal agencies in a timely manner.

Executive deletes. Senate and House restore.

Sec. 222. Policy Changes, Preparation of Regulatory Plans and Rule Promulgation REVISED

Requires a report of policy changes made to implement enacted legislation; prohibits MDE from spending funds to prepare regulatory plans or promulgate rules that fail to reduce the disproportionate economic impact on small businesses.

Executive and House delete. Senate restores. Conference includes revised Senate language.

Sec. 503. Teacher Preparation Programs REVISED

Provides $100,000 each forCentral Michigan University alternative route to certification program andWayneStateUniversity pathways to teaching program. Requires a reporting requirement for the programs including number of teachers certified, time served in the classroom, and teacher evaluations. Executive, Senate and Houseadd language directing the department to work with the universities to review the report results to determine subsequent funding strategies.

Sec. 506. Alternative Teacher Program Accreditation DELETED

Senate adds new language requiring that alternative teacher education programs be accredited by the National Council for Accreditation of Teacher Education (NCATE) or be a candidate for accreditation.

House does not include this section.

Conference concurs with House.

Sec. 604. Cyberschools NEW

Senate adds new language requiring the Department to report on barriers to the operation of cyberschools for special student populations including dropouts and expelled students.

House does not include this section.

Conference concurs with Senate.

Sec. 605. Detroit Public School Performance Audit DELETED

Senate adds new language requiring a performance audit ofDetroit Public Schools and a report on the results of the audit.

House does not include this section.

Conference concurs with House.