FY 2016-17 SCHOOL AID BUDGET S.B. 796: GOVERNOR'S RECOMMENDATION
Senate Bill 796 (as introduced) Vehicle for Governor’s Recommendation line items is Senate Bill 824.
Committee: Appropriations
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$13,900,654,300 |
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1. Foundation Allowance. Governor recommended a $150.0 million GF/GP increase in foundation allowance funding to provide per-pupil dollar increases ranging from $60-$120. |
150,000,000 |
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2. MPSERS Rate Cap. Governor recommended an $89.3 million increase in the statutory rate cap for the Michigan Public School Employees' Retirement System (MPSERS). |
89,300,000 |
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3. Detroit Schools' Foundation Allowance. Governor included $72.0 million in additional spending to pay the additional foundation allowance costs that would arise if the existing 18-mill property tax levy (currently paying a portion of the district's foundation allowance) is diverted to pay off debt. Governor also proposed to earmark Tobacco Settlement dollars into a Detroit Public Schools (DPS) Trust Fund, which would be used to pay for this School Aid cost. |
72,000,000 |
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4. State Special Education Funding. Governor included an increase of $54.5 million for estimated costs in special education. |
54,500,000 |
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5. Federal Grants. Governor included an increase of $42.9 million in Federal grants. |
42,863,500 |
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6. Flint Declaration of Emergency. Governor included $10.1 million GF/GP to provide Early On, Great Start Readiness Program, school nurses, school social workers, and other staff and materials for Flint Schools and Genesee Intermediate School District (ISD). This is an estimate for one-half of the year's costs, with the other one-half proposed to be set aside in FY 2015-16 for future use. |
10,142,600 |
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7. Career and Technical Education (CTE) Equipment Upgrades. Governor included $10.0 million GF/GP in a new categorical to provide equipment upgrades at CTE centers. |
10,000,000 |
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8. Educator Evaluations. Governor included $10.0 million in a new categorical to provide reimbursement to districts for costs associated with educator evaluations. |
10,000,000 |
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9. Water Testing in Schools. Governor included $9.0 million in a new categorical to provide reimbursement to districts that voluntarily choose to test water for lead levels. Total estimated cost statewide is $27.0 million, with $9.0 million recommended in a supplemental for FY 2015-16, and $9.0 million anticipated for FY 2017-18, if necessary. |
9,000,000 |
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10. State School Reform Office (SRO). Governor included $5.0 million to provide additional financial resources to districts with schools placed under the oversight of the SRO due to chronically low-performing status, and to provide funding for chief executive officers who have been appointed to take control of one or more schools in the district. |
5,000,000 |
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11. CTE Early/Middle College. Governor increased funding to reimburse for costs associated with establishing or operating CTE early/middle colleges, from $10 million to $15 million. |
5,000,000 |
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12. Integrated Behavior and Learning Support (MiBLISi). Governor funded a new program designed to decrease disruptive classroom behaviors and increase reading skills. |
1,370,000 |
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13. ISD Operations. Governor increased ISD funding by 1.6% to match the proposed increase in the foundation allowance, costing $1.1 million. |
1,074,000 |
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14. Pupil Membership Blend Change. Governor recommended placing a higher weight on the prior February and a lower weight on the current September count (from 90/10 to 50/50). |
1,000,000 |
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15. Other Increases. Governor recommended a $1.0 million increase in cash flow borrowing costs, a $1.25 million increase for science, technology, engineering, and math- (STEM) related activities, a $500,000 increase for FIRST Robotics, $390,000 for increased Promise Zone reimbursements, and $128,300 for increased Payments in Lieu of Taxes (PILT) reimbursement. |
3,268,300 |
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16. Technical Foundation Allowance Cost Adjustments. Governor included savings from year-to-date spending of $126.7 million related to adjustments in pupils and taxable values. |
(126,700,000) |
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17. Technology Grants. Governor eliminated funding for technology grants since FY 2015-16 was the last scheduled year for these payments, designed to ensure districts were able to switch to online assessments. |
(23,500,000) |
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18. Reductions in other Programs' Costs. Governor reduced funding to align with projected costs in the following areas: Renaissance Zone reimbursements ($6.3 million), school breakfasts ($3.1 million), strict discipline and dropout recovery ($1.5 million), and educational costs associated with the closure of Maxey ($0.9 million). |
(11,813,800) |
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19. State Assessments. Governor reduced funding for State assessments which was used to provide paper and pencil options while districts converted to online learning, and to eliminate funding for the kindergarten entry assessment. |
(10,100,000) |
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20. Elimination of Programs. Governor eliminated funding for the following programs: updates of teacher certification tests ($1.8 million GF/GP) because they have been completed; gang prevention and intervention funding ($1.0 million); elimination of Michigan Education Corps funding ($1.0 million); Parents University pilot project ($1.0 million) because it was one-time; early literacy teacher test ($500,000) because it was one-time; cooperative education grant ($300,000); and Civics Education ($60,000). |
(5,660,000) |
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21. Computer Adaptive Test. Governor eliminated funding to reimburse districts for the purchase of computer adaptive tests. |
(4,000,000) |
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22. College and Career Readiness Outreach. Governor reduced outreach funding for career and college readiness from $600,000 to $50,000. |
(550,000) |
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23. Economic Adjustments. Includes $58,680 Gross and $46,500 GF/GP for OPEB and $204,520 Gross and $159,700 GF/GP for other economic adjustments. |
263,200 |
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$282,457,800 |
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FY 2016-17 Governor's Recommendation........................................................................... |
$14,183,112,100 |
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Boilerplate Changes from FY 2015-16 Year-to-Date: |
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1. Definitions - General Educational Development (GED). Governor recommended replacing references to GED testing with GED, the test assessing secondary completion (TASC), the HISET test, or another comparable test, and also replaced GED certificate with high school equivalency certificate. (Sec. 4 and Sec. 6(4)(m)) |
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2. Pupil Membership Blend. Governor recommended changing the pupil membership blend form 90% weight on the current-year September count plus 10% weight on the prior-year February count to 50/50. (Sec. 6(4)) |
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3. Shared Time/Nonpublic Pupils. Governor proposed language such that a nonpublic part-time pupil enrolled in grades 1 to 12 be counted for not more than one-third of a full-time equated membership. (Sec. 6(4)(gg)) |
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4. Reporting of Financial Data. Governor proposed language requiring that financial data submitted be consistent with audited statements, and if the data are not consistent with the audit, the Department may withhold State aid. (Sec. 18) |
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5. Section 20j. Governor proposed language that would allow for districts with foundation allowances at or above the basic foundation allowance to receive the full dollar increase in the basic, although the portion of the increase in excess of inflation would not be built into the district's base foundation allowance funding. (Sec. 20j) |
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6. Enrollment in Virtual Courses. Governor included numerous changes to the section prescribing policies and procedures for districts enrolling students in virtual courses, including allowing districts to deny enrollment in an online course if a pupil is in kindergarten through fifth grade. (Sec. 21f) |
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7. Expansion of Consolidation Incentive Grants. Governor included language allowing consolidation incentive grants (appropriated at $5.0 million) also to be used for dissolutions that occur on or after June 1, 2016. (Sec. 22g) |
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8. Great Start Readiness Program. Governor included a change from "children" to "slots" to ensure that each ISD receives at least as many funded slots as in the prior year, unless fewer children are actually in need. (Sec. 32d) |
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9. Removal of Penalty Intent Language in Special Education. Governor removed legislative intent language that stated the intent to penalize districts, charters, or ISDs 10% of their State aid payment if they failed to comply with a requirement that the district/ISD of residence is responsible for special education services provided to the resident pupil who is enrolled in a charter school located in a different ISD. (Sec. 51a(15)) |
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10. Career and Technical Education. Governor added language allowing for CTE early/middle college funding to also be provided to programs that receive funding under Section 61a for allowable costs not reimbursed under that section, which provides for "traditional" CTE funding to districts. (Sec. 61b) |
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11. MiSTEM Programs. Governor included language allocating funds for the purpose of funding Michigan science, technology, engineering, and math (MiSTEM) based on recommendations of the MiSTEM advisory council, and if the council is unable to make specific funding recommendations by March 1, 2016, the Department is directed to distribute the funds on a competitive grant basis. (Sec. 99s) |
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12. Kindergarten Entry Assessment (KEA). Governor removed language requiring field testing of the KEA, and replaced the entry assessment with assessments in the fall and spring for English language arts and math. (Sec. 104c) |
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13. Adult Education. Governor changed eligibility definitions in this section, such that the individual can be enrolled in an adult basic education program, an adult secondary education program, an adult English as a second language program, a high school equivalency test preparation program, or a high school completion program, and the individual must either be at least age 20 or be defined as an "out-of-school youth". The payment cap of $2,850 per full-time equivalent participant also was removed, as was language allowing a participant to be enrolled in a job- or employment-related adult education program operated on a year-round basis. The Governor also proposed a change to the funding formula, striking the 80% enrollment/20% completion formula and replacing with a formula that uses statewide allocation criteria, three-year averaging of actual enrollments, census data, local needs, participant completion of adult basic education objectives, participant completion of core indicators, and allowable expenditures. (Sec. 107) |
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14. MPSERS. Governor included updates to MPSERS contribution rates and the continued reduction in the amortization period, falling from 23 years to 22 years. Average MPSERS rate cap per pupil is $660. (Sec. 147 and 147c) |
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15. Nonpublic Pupils. Governor added clarification that school aid can be provided only for courses that are offered and being provided to pupils in the district during regularly scheduled school hours. (Sec. 166) |
Date Completed: 2-18-16 Fiscal Analyst: Kathryn Summers
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.