FY 2019-20 SCHOOL AID BUDGET                                               S.B. 146 (S-3):  SENATE APPROPRIATIONS REC.

 

 

 

 

 

 

Senate Bill 146 (S-3 as reported)                           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..............................................................

                           0.0

                           0.0

 N/A   

 N/A   

GROSS..........................................................................

    14,844,588,800

    15,240,157,900

          395,569,100

               2.7 

Less:

 

 

 

 

   Interdepartmental Grants Received.........................

                              0

                              0

                              0

               0.0 

ADJUSTED GROSS....................................................

    14,844,588,800

    15,240,157,900

          395,569,100

               2.7 

Less:

 

 

 

 

   Federal Funds...........................................................

      1,745,943,500

      1,749,578,500

              3,635,000

               0.2 

   Local and Private.......................................................

                              0

                              0

                              0

               0.0 

TOTAL STATE SPENDING.........................................

    13,098,645,300

    13,490,579,400

          391,934,100

               3.0 

Less:

 

 

 

 

   Other State Restricted Funds..................................

    13,010,725,300

    13,222,579,400

          211,854,100

               1.6 

GENERAL FUND/GENERAL PURPOSE...................

            87,920,000

          268,000,000

          180,080,000

          204.8 

PAYMENTS TO LOCALS...........................................

    12,900,901,000

    13,261,779,600

          360,878,600

               2.8 

*As of March 5, 2019.


 

 

Gross

GF/GP

FY 2018-19 Year-to-Date Appropriation...............................................

$14,844,588,800

$87,920,000

 

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

 

 

  1.  Foundation Allowance. Governor increased foundation allowances between $120 and $180 per pupil using a 1.5x formula, which would cost $235.0 million. Senate increased foundation allowances between $135 and $270 per pupil using a 2x formula, costing $342.0 million.

342,000,000

0

  2.  Special Education. Governor increased special education reimbursement by an estimated 4% of costs. (The State is required to reimburse 28.6% of the cost of special education programming; this funding would be in addition to the required reimbursement.) Senate did not concur; however, Senate included $30.0 million in one-time funding for capital expenditures related to special education.

30,000,000

0

  3.  At Risk. Governor increased at risk funding by $102.0 million and restructured the formula to provide a payment equal to 11% of the minimum foundation allowance for each economically-disadvantaged pupil. (For hold harmless districts, the payment would be one-half of this amount.) Total funding for economically-disadvantaged students would be $619.0 million. (An economically-disadvantaged pupil is one who is eligible for free or reduced-price meals, in a household receiving supplemental nutrition assistance or temporary assistance for needy families, or who is homeless, migrant, or in foster care.) Senate increased standard At Risk funding by $9.0 million, and retained the hold-harmless provision at $12.0 million (with $6.0 million in negative adjustments to reflect declining enrollment). In addition, Senate included $35.0 million in one-time funding for capital expenditures related to At Risk.

38,000,000

0

  4.  Great Start Readiness Program (GSRP). Governor increased funding by $84.0 million for GSRP preschool for at-risk four-year-olds to pay for an increase in eligibility (changing from 250% to 300% of the Federal poverty level) and to increase payment for a full day of programming from $7,250 to $8,500. Senate increased $5.0 million, but did not change eligibility or per-child payments to providers.

5,000,000

0

  5.  Michigan Public School Employees' Retirement System (MPSERS) - Hold Harmless for Changes in Assumed Rate of Return (AROR). Governor and Senate increased funding to continue to hold districts harmless from costs arising due to changes in the AROR. Total hold harmless funding related to AROR would be $172.1 million.

83,930,000

35,000

  6.  Technical Special Education Cost Adjustments. Governor and Senate increased standard funding for special education programs to meet constitutionally-required reimbursement levels.

62,300,000

0

  7.  Career and Technical Education (CTE). Governor increased CTE funding and changed the formula to pay an estimated 6% of the minimum foundation allowance for each high school student in a CTE program. Total CTE funding would be $55.0 million. (Current law provides up to $50 per pupil enrolled in a high-demand CTE program.) Senate retained current law related to per-pupil payments, but increased CTE reimbursement under Sec. 61a by $1.5 million.

1,500,000

0

  8.  Technical Adjustments - Cash Flow Borrowing, Promise Zones, Renaissance Zones. Governor and Senate increased cash flow borrowing $32.0 million, promise zones $5.4 million, and renaissance zones $300,000.

37,700,000

0

  9.  Literacy Coaches. Governor added funding to triple the number of literacy coaches and to eliminate local cost sharing for the coaches. Senate concurred in tripling the number of coaches, but retained local cost sharing ($14.0 million cost).

14,000,000

0

10.  MPSERS Costs from Public Act 92 of 2017. Governor and Senate included funding to reimburse districts for the costs related to PA 92 of 2017. Total costs would be $42.6 million.

4,971,000

0

11.  Flint Declaration of Emergency. Governor and Senate increased funding for Flint from $3.2 million to $8.1 million.

4,845,000

4,845,000

12.  Federal Grants. Governor and Senate increased Federal grants based on anticipated funding levels.

3,635,000

0

13.  Intermediate School District (ISD) Operations. Governor increased operational funding for ISDs by 3.5%, to $70.8 million. Senate increased by 1%, to $69.1 million

685,000

0

14.  Technical Foundation Allowance Cost Adjustments. Governor and Senate recognized $218.0 million in savings due to fewer pupils and higher taxable values than estimated for the current year.

(218,000,000)

0

15.  Panic Button App. Senate funded $5.0 million as a one-time payment for schools to purchase access to the Panic Button app.

5,000,000

5,000,000

16.  Early On and Autism. Senate increased funding for Early On by $2.5 million, and earmarked $350,000 for autism training.

2,500,000

350,000

17.  10 Cents a Meal. Senate increased funding by $1.4 million, and added Prosperity Region 1 as a grantee.

1,425,000

1,425,000

18.  Rural/Isolated Districts. Senate increased funding by $1.0 million.

1,000,000

0

19.  Program Eliminations. Governor eliminated: Imagine Learning ($3.0 million); value-added assessment growth tool ($2.5 million); CTE equipment upgrades ($2.5 million); information technology certifications ($2.3 million); dual enrollment incentive payments ($1.75 million); strict discipline academies ($1.6 million); online algebra tool ($1.5 million); assessments ($1.5 million); financial data analysis tools ($1.5 million); Shiawassee ISD virtual CTE program ($1.2 million); CTE counselors and restaurant association culinary grant ($1.1 million); school bus safety program ($810,000); year-round schools ($750,000); dropout recovery ($750,000); summer reading project ($500,000); Michigan Fitness Foundation ($500,000); digital assessment preparation ($500,000); Detroit Precollege Engineering Program ($400,000); Teach for America ($300,000); reimbursement for nonpublic mandates ($250,000); district and dyslexia center grant ($250,000); conductive learning center study ($250,000); Pipeline 2 Promise ($200,000); early learning collaborative ($175,000); Grand Rapids dropout prevention program ($100,000); STEM and entrepreneurship program ($60,000); St. Clair ISD high demand jobs grant ($50,000); and, Dana Center ($25,000). Senate retained Imagine Learning; CTE equipment upgrades; strict discipline academies; online algebra tool; financial data tools; culinary instruction grant; year-round schools; summer reading; DAPCEP; Teach for America; reimbursement for nonpublic mandates; conductive learning; Pipeline-2-Promise; and Dana Center.

(12,695,000)

(6,285,000)

20.  Cyber Schools' Foundation Allowances. Governor reduced cyber schools' foundation allowances by 20%, or $22.0 million. Senate did not include a reduction to cyber schools' foundation allowances.

0

0

21.  Computer Adaptive Tests. Governor eliminated reimbursement to districts for the purchase of computer adaptive tests. Senate retained.

0

0

22.  School Mental Health - 'Train-the-Trainer'. Governor eliminated $8.0 million for the 'train-the-trainer' portion of school mental health grants. Senate retained the funding but distributed to ISDs for grants.

0

0

23.  Mi Bright Future, Square One, and College Board. Senate funded Mi Bright Future at $1.5 million, Square One at $300,000, and College Board at $80,000. All of the items are GF/GP.

1,880,000

1,880,000

24.  Program Reductions. Governor reduced FIRST Robotics $1.8 million (and removed nonpublic schools from eligibility) and MPSERS rate cap costs by $1.8 million. Senate concurred in MPSERS rate cap cost reduction, but increased Robotics by $200,000 and retained nonpublics.

(1,600,000)

0

25.  Youth ChalleNGe. Governor and Senate transferred this program to the Department of Military and Veterans Affairs.

(1,625,400)

0

26.  High School Per-Pupil Payments. Senate eliminated payments of $25 per high school student.

(11,000,000)

0

27.  Fund Shift. Governor reduced GF/GP support of the budget from $87.9 million to $45.0 million, resulting in a fund shift. Senate increased GF/GP support of the budget by $180.1 million.

0

172,729,500

28.  Economic Adjustments. Includes $118,500 Gross and $100,500 GF/GP for total economic adjustments, of which an estimated $132,500 Gross and $117,500 GF/GP is for legacy retirement costs (pension and retiree health).

118,500

100,500

29.  Comparison to Governor's Recommendation. The Senate is $131,081,000 Gross below and $223,000,000 GF/GP over the Governor.

 

 

 

Total Changes......................................................................................

$395,569,100

$180,080,000

FY 2019-20 Senate Appropriations Committee Gross Appropriation....

$15,240,157,900

$268,000,000

 


 

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

  1.  Foreign Exchange Students. Senate struck language that will prohibit a district from counting a pupil in membership if the district also charges tuition for that student, and they resided out of state in the prior year. (Sec. 6(4)(mm))

  2.  Reserving One-Half of Lapses. Senate included language requiring that one-half of lapses remain the School Aid Stabilization Fund and not be spent at the beginning of the next fiscal year. (Sec. 11a)

  3.  Hardship and Audits. Governor reduced the timeframe by which overpayments can be repaid, from nine years to four years, and extended the period by three years for which the department may conduct audits. Senate concurred in the first change, but grandfathered in existing agreements, and did not concur in the second change. (Sec. 15)

  4.  "Basic" to "Target". Senate changed "basic foundation allowance" to "target foundation allowance". (Sec. 20)

  5.  Compliance with Kindergarten Assessment. Senate added a requirement for districts to comply with requirements regarding assessing the readiness of kindergarteners to receive their full foundation allowance. (Sec. 22b)

  6.  Partnership Districts. Governor and Senate removed language requiring partnership districts to comply with Sec. 22p to get their discretionary payment. Governor also removed Section 22p (partnership district language). Senate retained the section but removed the reconstitution stipulation that 25% of faculty be removed. (Sections 22b and 22p)

  7.  Pupil-Weighted Allocations. Governor included a new section with language to implement a weighted per-pupil education funding model for a per-pupil base amount and weights for additional resources. The section includes funding, and estimated weights of 4% for special education, 11% (of the minimum foundation allowance) for at risk, and 6% for career and technical education (CTE). Senate did not include. (Sec. 28)

  8.  At Risk. Governor increased the funding to hold harmless districts for at risk payments, from 30% to 50% of the amount that a non-hold harmless district would receive. Senate did not concur. Governor and Senate added language requiring districts to use at risk funds to show progress toward meeting the goals of providing tutors, pupil support, summer school teachers, expanding professional development, and providing additional supports to complete the FAFSFA. Governor and Senate increased the amount of at risk funds that can be used for professional development from 5% to 10%. Governor and Senate removed the ability for a district to demonstrate proficiency by achieving at least one year's growth as measured by a local benchmark assessment (but retained the state benchmark to demonstrate proficiency). Senate retained the hold harmless provision, but with adjustments for changes in enrollment. (Sections 28 and 31a)

  9.  Professional Development as Hours of Instruction Guidelines. Governor restored language allowing districts to count up to 38 hours of qualifying professional development as hours of pupil instruction. (This was allowed until FY 2014-15.) Governor added language stating that qualifying professional development exceeding five hours in a single day may be counted as a day of pupil instruction, and eight hours of qualifying professional development counted as hours of pupil instruction must be recommended by a districtwide professional development advisory committee. Governor also changed the definition of "qualifying professional development" to be that which is aligned to the school district improvement plan, is linked to one or more criteria in a teacher evaluation tool, is approved by the department as continuing education credits, occurs after school starts and before school ends, and where at least 75% of teachers are in attendance. Senate concurred. (Sec. 101)

10.  Changes to Kindergarten Entry Observation. Governor removed the existing pilot kindergarten entry observation tool and assessment and replaced it with a program for the department to implement, on a sample basis statewide, a Michigan kindergarten entry observation tool. Senate changed the section to require all districts to sample. (Sec. 104)

11.  Michigan Merit Exam. Governor removed language allowing the scores for the statewide assessment and the graduation rate for consortium pupils to be included with the scores for the school building in the participating district in which the consortium pupil is enrolled or would otherwise attend. Senate retained current law. (Sec. 104b)

12.  English Language Arts (ELA) and Math Tests for K-2. Governor removed a requirement for the department to offer benchmark assessments to measure ELA and math in each of grades K-2. Senate did not concur. (Sec. 104c)

13.  Michigan Public School Employees' Retirement System (MPSERS) Retirement Obligation Reform Reserve Fund. Governor included a requirement to deposit $40.0 million from the School Aid Fund into the MPSERS reform reserve fund for 2019-20. Senate did not concur. (Sec. 147b)

14.  Section 166. Senate repealed Section 166, which requires the implementation of penalties for violations of Section 1507 of the Revised School Code (sex education), and for persons who refer a pupil for an abortion. (Sec. 166)

 

Date Completed:  5-1-19                                                                                           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.