SB0136: COMMITTEE OF THE WHOLE REC. (Date Completed: 5-14-19) - FY 2019-20 DEPARTMENT OF EDUCATION BUDGET

FY 2019-20 DEPARTMENT OF EDUCATION BUDGET S.B. 136 (S-1): COMMITTEE OF THE WHOLE REC.

Senate Bill 136 (S-1 as amended by the Committee of the Whole) Throughout this document Senate means Appropriations Committee.

Committee: Appropriations

			CHANGES FROM FY 2018-19 YEAR-TO-DATE
FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE	FY 2018-19 YEAR-TO-DATE*	FY 2019-20 SEN. FULL COMM.	AMOUNT	PERCENT
FTE Positions..............................................................	614.5	614.5	0.0	0.0
GROSS..........................................................................	406,134,900	422,044,500	15,909,600	3.9
Less:
Interdepartmental Grants Received.........................	0	0	0	0.0
ADJUSTED GROSS....................................................	406,134,900	422,044,500	15,909,600	3.9
Less:
Federal Funds...........................................................	298,074,500	318,152,900	20,078,400	6.7
Local and Private.......................................................	7,888,600	7,929,600	41,000	0.5
TOTAL STATE SPENDING.........................................	100,171,800	95,962,000	(4,209,800)	(4.2)
Less:
Other State Restricted Funds..................................	8,668,200	8,750,000	81,800	0.9
GENERAL FUND/GENERAL PURPOSE...................	91,503,600	87,212,000	(4,291,600)	(4.7)
PAYMENTS TO LOCALS...........................................	14,567,700	14,267,700	(300,000)	(2.1)

*As of March 5, 2019.

	Gross	GF/GP
FY 2018-19 Year-to-Date Appropriation...............................................	$406,134,900	$91,503,600

Changes from FY 2018-19 Year-to-Date:
1. Child Development and Care Public Assistance. The Governor increased appropriations to increase the child care provider reimbursement rate between $0.20 and $0.50 ($16.4 million) and increase the entry threshold to 140% of the Federal Poverty Level ($13.6 million). The funding would be for implementation on January 1^st. The Senate only included the increase to the child care provider reimbursement rate.	16,400,000	0
2. Office of Great Start Operations. The Governor increased appropriations $3.6 million Gross and Federal for administration and oversight of the Child Development and Care program to meet Federal requirements. The Senate increased $3.2 million Gross and Federal.	3,200,000	0
3. Child Development and Care External Support. The Governor/Senate increased IDG payments to LARA to account for economic adjustments.	323,200	0
4. Information Technology. The Governor increased teacher certification fees to support increased IT charges from the DTMB. The Senate did not include.	0	0
5. Child Development and Care Matching Requirement. The Governor/Senate shifted Federal funds to GF/GP to meet Federal matching requirements.	0	599,400
6. Adolescent and School Health. The Governor/Senate continued a $319,900 supplemental appropriation that replaced lost Federal funding to support HIV/STD education prevention programs in schools.	0	0
7. Supplemental Appropriation Removal. The Governor/Senate removed a $5.0 million supplemental appropriation for E-rate enhancements to increase the connection speed for schools and libraries.	(5,000,000)	(5,000,000)
8. Renaissance Zone Reimbursement. The Governor/Senate reduced Renaissance Zone Reimbursement to libraries to align with current projections.	(300,000)	(300,000)
9. Drinking Water Declaration of Emergency Placeholder. The Governor/Senate removed the placeholder.	(100)	0
10. Other. The Governor/Senate created the Office of Systems, Evaluation, and Technology, the Office of Financial Management, the Office of Strategic Planning and Implementation, the Office of Educator Excellence, and the Office of Educational Supports by reorganizing existing funds and FTEs throughout the Department.	0	0
11. Economic Adjustments. Includes $1,286,500 Gross and $409,000 GF/GP for total economic adjustments, of which an estimated decrease of $586,400 Gross and $187,100 GF/GP is for legacy retirement costs (pension and retiree health).	1,286,500	409,000
12. Comparison to Governor's Recommendation. The Senate is $14.3 million Gross and $0 GF/GP under the Governor.

Total Changes......................................................................................	$15,909,600	($4,291,600)
FY 2019-20 Senate Gross Appropriation.............................................	$422,044,500	$87,212,000

Boilerplate Changes from FY 2018-19 Year-to-Date:

1. Governor Deleted and Senate Retained Sections. The Governor deleted and Senate retained a number of sections , which include: 221 (retention of sexual misconduct records), 222 (protects employees who testify to the Legislature), 223 (retention of all reports), 225 (School Aid grant award date requirement), 227 (responding to requests from the Legislature within 30 days and reporting on due dates), 229 (notification when entering into contracts above $1.0 million or when changes are made to Federal accountability plans), 230 (nonpublic school report), 302 (State Board travel expenditure cap), 325 (notification of grants received), 409 (Administrative hearing requirements), 602 (Adolescent and School Health funding), 803 (Legislative intent for the Library of Michigan), 1003 (ECIC report), 1005 (LARA funding requirements), and 1010 (notification of Federal CDC changes).

2. Deleted Sections. The Governor/Senate deleted a number of sections, which include: 234 (restrictions of Administrative Rules), 502 (allowable teacher experience), 1011 (CDC biweekly block reimbursement implementation), and 1101 (Drinking Water Declaration of Emergency, CDC pilot program).

3. Contingency Fund Authorization. The Senate deleted the Department's contingency fund authorization language. (Sec. 210)

4. Sexual Abuse Report Modification. The Governor modified the sexual abuse report requirement, by removing the requirement to issue the sexual abuse report to all schools, but retained language requiring the collection of information on policies adopted by school districts, ISDs, and charter school academies. The Senate modified the section to only require schools, ISDs, and charter school academies that did not report adopting a policy or adopted a new policy since last year to report to the Department. (Sec. 231)

5. Low Incidence Outreach Fund. The Governor modified the Low Incidence Outreach Fund to allow the Department to spend funds in addition to those appropriated in Part 1. The Senate did not include. (Sec. 408)

6. A-F Accountability System. The Senate included a new section that requires that the Superintendent of Public Instruction request a waiver and state accountability plan amendment to the State's federal accountability plan to implement the A-F accountability system passed in Public Act 601 of 2018 prior to expended funds from the line item. (Sec. 702)

7. Child Development and Care Reimbursement Rate Increase. The Governor/Senate increased the CDC reimbursement rate for providers. The increase includes a $0.20 increase to all provides serving children between the ages of 0-5, a $0.20 increase to all 0 to 2 star-rated providers, and a $0.30 increase to all 3 to 5 star-rated providers. (Sec. 1002)

8. Child Development and Care Income Entry Level Increase. The Governor increased the income entry threshold for the CDC program from 130% to 140% of the FPL. The Senate did not include. (sec. 1009)

9. Technical Changes. The Governor/Senate made a number of technical modifications that include date changes, changes in Part 1 appropriations, legacy costs, and name changes. (Sec. 201, 203, 212, 201, 501, 701, 804, 1007)

Date Completed: 5-14-19 Fiscal Analyst: Cory Savino

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.