DEPARTMENT OF EDUCATION: FY 2010-11

Summary: As Passed by the Senate

Senate Bill 1154 (S-1)

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Analysts: Mary Ann Cleary and Bethany Wicksall

	FY 2009-10	FY 2010-11	FY 2010-11	FY 2010-11	FY 2010-11	*Difference: Senate* *From FY 2009-10 YTD*
	Year to Date	Executive	Senate	House	Conference	*Amount*	%
IDG/IDT	$0	$0	$0	$0	$0	$0	--
Federal	76,297,900	93,936,700	76,004,800			(293,100)	(0.4)
Local	7,008,700	7,220,000	7,103,900			95,200	1.4
Private	3,096,500	3,124,500	3,107,100			10,600	0.3
Restricted	7,038,900	6,992,900	6,911,200			(127,700)	(1.8)
GF/GP	19,429,600	20,011,900	19,795,700			366,100	1.9
Gross	$112,871,600	$131,286,000	$112,922,700			*51,100*	*0.0*
FTEs	544.5	552.5	537.0			(7.5)	(1.4)

Note: FY 2009-10 appropriation figures do not reflect the impact of executive order, supplemental, or transfer adjustments made after the release of the FY 2010-11 Executive Budget on February 11.

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 2009-10 YTD Appropriations	FY 2009-10 YTD	Senate Change From YTD
*1. Race to the Top Education Reforms - Federal* Executive includes $17.0 million and 14.0 FTEs supported by potential Federal Race to the Top funding to implement changes in the education reform package including developing assessments to measure students' knowledge growth in each grade, correlation of student achievement to individual teachers, creation of an alternative teacher certification process, and oversight of the school administrator certification program. (The Executive also requested a FY 2009-10 supplemental of $25.0 million in assumed Federal Race to the Top funds.) Senate does not include this funding.	FTEs Gross Federal GF/GP	0.0 $0 0 $0	0.0 $0 0 $0
*2. Race to the Top Education Reforms - State* Executive includes $1.7 million GF/GP and 13.0 FTEs to implement additional activities required in the State's education reform package that are not eligible for support from Federal Race to the Top funding. The new MDE responsibilities include the school reform/redesign officer, oversight of the new schools of excellence, and processing claims submitted to the basic instructional materials hotline. (PA 47 of 2010 approved a FY 2009-10 supplemental of $492,800 GF/GP, ) Senate reduces the Executive recommendation by $150,000 and 1.5 FTE.	FTEs Gross GF/GP	0.0 $0 $0	11.5 $1,565,900 $1,565,900
*3. Library ofMichigan*** Executive decreases the budget for the Library of Michigan operations by $1.1 million and reduces FTEs by 13.0 positions to find savings pursuant to EO 2009-36 and EO 2009-43. The proposed reductions include eliminating maintenance and oversight of the non-Michigan Genealogy Collection, the Federal Documents Collection, and the Regional Depository Program; eliminating circulation of the remaining Library of Michigan collection materials; ending participation in the interlibrary loan program; and recognizing savings from reductions in collection purchases. Also revises FTEs further by 16.0 positions to adjust the authorization to recognize the actual number of positions transferred in under the EO. Senate concurs.	FTEs Gross GF/GP	59.0 $4,601,400 $4,601,400	(29.0) ($1,070,300) ($1,070,300)
*4. State Aid to Libraries* Executive decreases funding for state aid to local libraries by $150,000 or 2.5% to $5,850,000. Senate maintains current funding levels.	Gross GF/GP	$6,000,000 $6,000,000	0 0
5. *Book Distribution Centers* Executive eliminates $200,000 in funding for book distribution centers. Senate includes a $100 placeholder.	Gross GF/GP	$200,000 $200,000	($199,900) ($199,900)
*6. Office of the State Superintendent* Executive proposes an administrative reduction of $105,500 or 9.3% of the line's GF/GP appropriation. Senate concurs.	Gross Federal Private Restricted GF/GP	$2,338,800 610,600 27,000 565,600 $1,135,600	($105,500) 0 0 0 ($105,500)
*7. Economic Adjustments* Executive provides an increase of $2.5 million Gross and $431,500 GF/GP for economic changes in salaries and wages, retirement, insurance, workers compensation, and building occupancy charges. Senate eliminated the economic increases associated with a 3% salaries and wages increase equaling a decrease from the Executive recommendation of $1,363,400 Gross and $216,300 GF/GP.	Gross Federal Local Private Restricted GF/GP	N/A N/A N/A N/A N/A N/A	$1,169,000 775,700 95,200 10,600 72,300 $215,200

Major Budget Changes From FY 2009-10 YTD Appropriations

FY 2009-10 YTD

Senate Change

From YTD

1. Race to the Top Education Reforms - Federal

Executive includes $17.0 million and 14.0 FTEs supported by potential Federal Race to the Top funding to implement changes in the education reform package including developing assessments to measure students' knowledge growth in each grade, correlation of student achievement to individual teachers, creation of an alternative teacher certification process, and oversight of the school administrator certification program. (The Executive also requested a FY 2009-10 supplemental of $25.0 million in assumed Federal Race to the Top funds.)

Senate does not include this funding.

FTEs

Gross

Federal

GF/GP

0.0

2. Race to the Top Education Reforms - State

Executive includes $1.7 million GF/GP and 13.0 FTEs to implement additional activities required in the State's education reform package that are not eligible for support from Federal Race to the Top funding. The new MDE responsibilities include the school reform/redesign officer, oversight of the new schools of excellence, and processing claims submitted to the basic instructional materials hotline. (PA 47 of 2010 approved a FY 2009-10 supplemental of $492,800 GF/GP, )

Senate reduces the Executive recommendation by $150,000 and 1.5 FTE.

FTEs

Gross

GF/GP

0.0

11.5

$1,565,900

$1,565,900

3. Library ofMichigan

Executive decreases the budget for the Library of Michigan operations by $1.1 million and reduces FTEs by 13.0 positions to find savings pursuant to EO 2009-36 and EO 2009-43. The proposed reductions include eliminating maintenance and oversight of the non-Michigan Genealogy Collection, the Federal Documents Collection, and the Regional Depository Program; eliminating circulation of the remaining Library of Michigan collection materials; ending participation in the interlibrary loan program; and recognizing savings from reductions in collection purchases. Also revises FTEs further by 16.0 positions to adjust the authorization to recognize the actual number of positions transferred in under the EO.

Senate concurs.

FTEs Gross

GF/GP

59.0

$4,601,400

$4,601,400

(29.0)

($1,070,300)

($1,070,300)

4. State Aid to Libraries

Executive decreases funding for state aid to local libraries by $150,000 or 2.5% to $5,850,000.

Senate maintains current funding levels.

Gross

GF/GP

$6,000,000

$6,000,000

5. Book Distribution Centers

Executive eliminates $200,000 in funding for book distribution centers.

Senate includes a $100 placeholder.

Gross

GF/GP

$200,000

$200,000

($199,900)

($199,900)

6. Office of the State Superintendent

Executive proposes an administrative reduction of $105,500 or 9.3% of the line's GF/GP appropriation.

Senate concurs.

Gross

Federal

Private

Restricted

GF/GP

$2,338,800

610,600

27,000

565,600

$1,135,600

($105,500)

($105,500)

7. Economic Adjustments

Executive provides an increase of $2.5 million Gross and $431,500 GF/GP for economic changes in salaries and wages, retirement, insurance, workers compensation, and building occupancy charges.

Senate eliminated the economic increases associated with a 3% salaries and wages increase equaling a decrease from the Executive recommendation of $1,363,400 Gross and $216,300 GF/GP.

Gross

Federal

Local

Private

Restricted

GF/GP

N/A

N/A

$1,169,000

775,700

95,200

10,600

72,300

$215,200

Major Boilerplate Changes From FY 2009-10

Sec. 207. Office of Safe Schools DELETED

Earmarks $225,000 out of the federal drug-free grant for the safe school program and establishes program guidelines. Executive and Senate delete.

Sec. 210. Information Technology Work Projects DELETED

Allows for funds appropriated in part 1 for information technology to be designated as work projects and carried forward into future fiscal years to support technology projects subject to the management and budget act.

Executive and Senate delete.

Sec. 211. Adequate Yearly Progress (AYP) Appeals RETAINED

Requires that the department allow districts to appeal a determination of failure of AYP, consider and act upon each appeal within 30 days, and wait to publish a list of districts that failed AYP until all such appeals have been decided.

Executive deletes. Senate maintains current law.

Sec. 213. Hiring Freeze REVISED

Establishes a hiring freeze for state civil service positions, allows for certain exceptions, and requires quarterly reports of the number of exceptions granted and their justification.

Executive deletes. Senate maintains this section but allows hiring for State activities related to recent Race to the Top related education reforms.

Sec. 215. Travel for Professional Development or Training RETAINED

Allows for only 1 departmental employee to attend a professional development conference or training seminar outsideMichigan unless it is funded with federal and private funds and requires that more than 1 person attend or unless it includes multiple issues in which 1 employee does not have expertise.

Executive deletes. Senate maintains current law.

Sec. 216. Communication with the Legislature RETAINED

Prohibits disciplinary action against an employee for communicating truthfully and factually with a member of the legislature or his or her staff.

Executive deletes. Senate maintains current law.

Sec. 220. Information Requested by the Legislature RETAINED

Requires that MDE provide data requested by a member of the legislature, his or her staff, or the fiscal agencies in a timely manner.

Executive deletes. Senate maintains current law.

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

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 deletes. Senate maintains current law.

Sec. 223. FTE Quarterly Reports DELETED

Requires the department to report quarterly the number of FTEs in pay status by civil service classification.

Executive and Senate delete.

Sec. 225. Pupil Membership Fraud DELETED

Provides intent that the State Superintendent of Public Instruction investigate and report on issues of pupil membership fraud, including the incidence of students being counted in membership but not remaining in the district.

Executive and Senate delete.

Sec. 226. Lapse Report RETAINED

Requires a report of the projected year-end General Fund Lapse amount for FY 2009-10 byOct. 15, 2010.

Executive deletes. Senate maintains current law.

Sec. 802. Book Distribution Centers RETAINED

Requires that the funds appropriated for book distribution centers be distributed equally to the public enrichment foundation and theMichigan friends of education.

Executive deletes. Senate maintains current law.

Sec. 803. Keep Library Functions Together RETAINED

Provides intent that the Library of Michigan and its related programs be kept together in a state department.

Executive deletes. Senate maintains current law.

Sec. 804. Keep Library Functions Together NEW

Senate adds new language. Requires the department and Library of Michigan to maintain custody of all collections maintained, housed, owned, or otherwise kept by the Library in FY 2009-10 and prohibits the sale, lease or other disposal of those collections. Provides that the Library need not make the non-Michigan genealogy or federal documents collections available to the public.

Sec. 903. Cyberschools DELETED

Requires MDE report on barriers to cyberschools for special student populations including dropouts and expelled students. Executive and Senate delete.