FY 2008-09 SCHOOL AID BUDGET S.B. 1107 (H-5): CONCURRENCE SUMMARY


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House Changes to Senate-Passed:
  1. Foundation Allowance. The House reduced the per-pupil increase to a range from $55 for higher-funded districts up to $110 for lower-funded districts, and also built in revised cost estimates for new taxable value data. 3,269,900
2. School Readiness Program. The House added funding for the Michigan School Readiness Program, both in districts and in entities other than districts. The funding would serve more students and increase the per-pupil amount from $3,400 to $3,500. 22,757,900
3. Other Early Childhood Funding. The House added numerous other funding for early childhood: $5.0 million for the Early Childhood Investment Corporation, $2.5 million for ages 0-3 child abuse and neglect prevention grants, $2.0 million for a new foreign language immersion grant program (for at-risk four year olds), and $1.5 million for new innovative program grants run through intermediate school districts (ISDs). 11,000,000
4. Algebra I Credit Recovery. The House added a new program ($3.0 million) aimed at providing grants to ISDs to operate credit recovery programs for Algebra I, and $725,000 for Math and Science centers to run after-school and summer math programs for 8th graders. The House did not include the Senate's $1.0 million to Math and Science Centers for credit recovery and remedial assistance in math and science courses. 2,725,000
5. Center for Educational Performance and Information. The House added $2.0 million to CEPI, beyond the $2.0 million the Senate had included. 2,000,000
6. Retention of Specific District Grants. The House retained several district-specific grants, eliminated by the Governor and Senate: $900,000 for Redford Union, $1,050,000 for Grosse Pointe (an increase of $700,000), $450,000 for Harper Woods (an increase of $300,000), $400,000 for both Chippewa Valley and Pontiac, $300,000 for Pontiac's anti-bullying project, $250,000 for Clintondale, and $200,000 for Ewen Trout. 3,950,000
7. Child and Adolescent Health Centers. The House added $1.0 million to school health centers, beyond the $1.0 million the Senate had included. 1,000,000
8. New Programs. The House added the following new programs: $1.0 million for FIRST Robotics, $1.0 million for community college access grants, $800,000 for cultural access grants, $299,900 for Communities in Schools, $100,000 for Mercy Education, $100,000 for Wayne State's science/math program, and $300,000 for pre-college engineering. 3,599,900
9. Cash Flow Borrowing. The House reduced the amount of School Aid Fund used to pay for School Aid Fund cash flow borrowing below the level recommended by the Governor and Senate. This results in a net cost to the General Fund budget. (14,200,000)
10. Special Education. The House adjusted special education for latest cost estimates. (2,000,000)
Total Changes $33,558,900
  FY 2008-09 House-Passed Gross Appropriation $13,415,379,900
FY 2008-09 SCHOOL AID BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2008-09 Senate-Passed:
  1. Kindergarten. The House concurred with the Governor to include language that, beginning in 2009-10, in order to receive full funding, a district must operate a full-day kindergarten program. (Current law allows full funding for a half-day kindergarten program, and the Senate had retained current law.) (Sec. 6)
2. District of the First Class. The House changed the definition of "district of the first class" from one over 100,000 pupils to the district with the most pupils in membership (i.e., Detroit Public Schools). (Sec. 6)
3. Foundation Allowance. The House set the basic foundation allowance at $8,488, an increase of $55 per pupil, with increases up to $110 per pupil for lower-funded districts. The House also included language recommended by the Governor, to allow districts to use foundation allowance payments for programs that prepare children from birth to age five for success in school. (Sec. 20)
4. Pupils Transferring to Detroit Public Schools after Count Day. The House did not concur with Senate changes that would modify bill-back requirements and timelines in this section. (Sec. 25c)
5. School Readiness Program. The House did not concur with some changes made by the Senate, including the prohibition of supplanting Federal funds, and maintained current law on defining teachers qualified to teach in the program. The House also changed the name to Great Start Readiness Program, and allowed an ISD to administer and act as a fiscal agent, retaining up to 5.0% for administration and professional development. (Sections 32d, 32l, 37)
6. Earmarked Funding for Highland Park. The House included an earmark out of a $1.0 million appropriation for community college access grants, such that $250,000 would be directed to Highland Park Schools. (Sec. 99n)
7. Adult Education in Prisons. The House did not include Senate language that earmarked $700,000 out of a $24.0 million appropriation for grants to districts who operate adult education programs in prisons. (Sec. 107)
8. Repealers. The House repealed Section 166 as proposed by the Governor, but not repealed by the Senate. This section imposes a 5.0% financial penalty if a district provides family planning drugs or abortion referrals.

Date Completed: 6-11-08 Fiscal Analyst: 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. hik12_cc.doc