FY 2006-07 SCHOOL AID BUDGET S.B. 1095 (S-1, Draft 1): COMMITTEE SUMMARY






Senate Bill 1095 (S-1, Draft 1, as reported)
Committee: Appropriations

FY 2005-06 Year-to-Date Gross Appropriation $12,757,151,300
Changes from FY 2005-06 Year-to-Date: 1. Proposal A Obligation Payment. The sub. and Gov. decreased line item to reflect changes in taxable value and pupil estimates and savings from PPT audits. (245,000,000) 2. Discretionary Payment. The sub. proposed to increase the basic foundation allowance by $225 per pupil to $7,100 and to reflect changes in taxable value and pupil estimates. 406,913,200 3. Reimbursement for Finger Printing. The sub. adds new line item to reimburse districts for cost of re-fingerprinting anyone previously finger printed between 1-1-93 and 12-31-05. 3,500,000 4. Equity Payment. The sub. adds new line item to provide additional per pupil payment of up to $60 to districts with FY 2006-07 foundation allowances below $7,160. 41,200,000 5. Deficit Adjustments. The sub. adds a place holder for adjustments to the foundation allowances for districts facing an operating deficit. 100 6. School Readiness. The sub. increased this line item by 10% and increased per pupil allocation to $3,400. 7,400,000 7. ISD 0-5 Program. The Sen. and Gov. increased line item refined usage to include learning opportunities promoting age-appropriate language, math, and early reading skills. 6,674,000 8. Detroit Transition Payment. The payment to help Detroit transition back to an elected school board is no longer needed and thus eliminated. (7,000,000) 9. Child and Adolescent Health Centers. The Sen. adds additional funding for 11 centers that received planning grants in 2005. 2,000,000 10. Children of Incarcerated Parents. The Sen. adds new line item for a pilot program to address the needs of children with incarcerated parents. 1,875,000 11. Special Education. Substitute increases line item to meet costs associated with the $225 increase in the foundation allowance and Durant. State funding increased by $38.3 million while Federal funding increased by $13.9 million. 52,150,000 12. Middle School Math Initiative. The Sen. and Gov. eliminated funding for this program. (3,850,000) 13. Book-A-Month Program. The Sen. adds new line item for grants to provide children with a book each month from birth to age 5. 1,000,000 14. Automated External Defibrillators. The Sen. adds new line item to provide grants for districts to purchase at least one AED. 100,000 15. Programs Transferred. The Sen. and Gov. transfer programs formerly funded in other department budgets with GF/GP in FY 2005-06. These included: Juvenile Detention Education, Youth Challenge Program, Vision and Hearing Screenings, School Breakfast Program, Pre-College Engineering Program, School Bus Safety Inspections and MEAP Assessments. 48,973,400 16. Other Changes. Increases include: School Bond Loan Fund, Court-Placed Children, Ren Zones, At-Risk, School Lunch, ISD operations, CEPI, Michigan Virtual High School, Math and Science Centers and Adult Education. Decreases include: Federal NCLB grants and Freedom to Learn. 20,802,800 17. Comparison to Governor's Recommendation. This substitute is ($25,124,900) Gross below the Gov. and matches the Gov.'s GF/GP. Total Changes $336,738,500 FY 2006-07 Senate Appropriations Subcommittee Gross Appropriation $13,093,889,800  

Changes from FY 2005-06 Year to Date:
  1. Developmental Kindergarten. The Senate substitute concurred with the Gov. and eliminated current law that stated that beginning in FY 2006-07, costs for educating pre-kindergarten pupils shall be reported and reimbursed under Section 31b. (Sec. 6(4)(r))
2. Pupil Membership Count Day. The Senate substitute concurred with the Gov. and proposed to change the fall count day to the fourth Wednesday following Labor Day to account for the now mandatory post-Labor Day school start. (Sec. 6(7))
3. Expenditures Guidelines and Financial Audits. The Senate substitute concurred with the Gov. and added new language requiring districts and ISDs to post their annual operating budget on their website within 30 days of adoption or revision. (Sec. 18(2))
4. Foundation Allowance Index. The Gov. eliminated language that required the basic foundation allowance to increase by the index determined at the Consensus Revenue Estimating Conference. Senate substitute retains current law. (Sec. 20(14))
5. Supplemental Foundation Allowance Payment for FY 2005-06. The Gov. appropriated $41,500,000 to make an additional payment of $25 per pupil in FY 2005-06. Senate substitute does not include this supplemental payment; however, this Section is used as a place holder for adjusting the foundation allowances of districts with deficit operating budgets. (Sec. 22e)
6. After-School Tutoring for At-Risk Female Pupils. The Senate substitute adds additional funding of $100,000 earmarked to the Detroit Public Schools to provide after-school tutoring programs for at-risk girls in grades 1 through 8. (Sec. 31a(8))
7. Child and Adolescent Health Centers. The Senate substitute adds additional $2.0 million to fund 11 centers that previously received planning grants. Also increased the number of grant years to 5 beginning with FY 2003-04. (Sec. 31a(6))
8. Children of Incarcerated Parents. The Senate substitute adds a new pilot program for children with incarcerated parents. Eligible districts must have a free breakfast or lunch eligibility rate of 60% or more and must use the funds to provide video and/or audio conferencing and academic or social support from qualified personnel. (Sec. 31c)
9. School Readiness Competitive Grants. The Senate substitute concurred with Gov. and added clarification language that the grants are for the purpose of preparing children for success in school, including language, early literacy, and early mathematics. (Sec. 32l)
10. ISD General Operations. The Senate substitute concurred with the Gov. and provided $500,000 for ISDs to collaborate with the DOE to develop expanded professional development opportunities for teachers to update and expand their knowledge and skills needed to support the Michigan Merit core content standards and credit requirements. (Sec. 81(2))
11. Michigan Virtual High School. The Senate substitute concurred with the Gov. and added new language requiring the MVHS to provide online preparation resources for pupils that would be web-based tools for the ACT and the revised MEAP exam, and would include practice tests, test-taking strategies, diagnostic tools, self-paced online instructional tutorials, and electronic feedback reports for students and schools. (Sec. 98)
12. Math and Science Centers. Senate substitute concurred with the Gov. and stated that the additional $1,00,000 was earmarked for those centers determined by the DOE as able to provide curriculum and professional development support to assist districts in implementing the Michigan Merit core curriculum components for math and science. (Sec. 99)
13. Hours of Instruction. Senate substitute changes the number of professional development hours that can be used as hours of instruction from 51 to 38. Also adds exemption for districts with union contracts allowing up to 51 hours to be used to continue to do so until those contracts expire. (Sec. 101)
14. Adult Education. The Gov. changed the payment to be based on 75% for enrollment and 25% for completion compared to current law 90% enrollment and 10% completion. Senate substitute retains current law. (Sec. 107)
15. Retirement Rate. The Senate substitute concurred with the Gov. and proposed the rate to be increased by 1.4 percentage points to a total of 17.74% of payroll, compared to the FY 2005-06 rate of 16.34%. (sec. 147)

Date Completed 3-17-06 Fiscal Analyst: Joe Carrasco, Jr. & Kathryn Summers-Coty Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hik-12_cs.doc