SCHOOL AID: FY 2010-11 Supplemental

Summary: Senate Passed

Senate Bill 4860 (S-4)

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Analysts: Mary Ann Cleary and Bethany Wicksall

	PA 110 of 2010	RTTT Contingency	FY 2010-11	FY 2010-11	FY 2010-11	*Difference: Senate* *From FY 2010-11 YTD*
	FY 2010-11	FY 2010-11 YTD	Senate	House	Conference	*Amount*	%
IDG/IDT	$0	$0	$0	$0	$0	$0	--
Federal
ARRA	184,256,600	184,256,600	184,256,600	0	0	0	--
Non-ARRA	1,682,008,400	1,676,944,700	1,677,806,400	0	0	861,700	0.1
Local	0	0	0	0	0	0	--
Private	0	0	0	0	0	0	--
Restricted	10,948,659,200	10,974,826,700	10,937,260,500	0	0	(37,566,200)	(0.3)
GF/GP	30,206,200	27,842,400	18,642,400	0	0	(9,200,000)	(33.0)
Gross	$12,845,130,400	$12,863,870,400	$12,817,965,900	$0	$0	*($45,904,500)*	*(0.4)*

Note: FY 201011 figures reflect supplementals and Executive Order (EO) actions throughSeptember 1, 2010.

Overview

The School Aid budget makes appropriations to the state s 551 local school districts, 240 public school academies, and 57 intermediate school districts (ISDs) for operations and certain categorical programs. It also appropriates funds to the Center for Education Performance and Information, Department of Energy, Labor and Economic Growth, and other entities to implement certain grants and other programs related to K-12 education.

Note

HOUSE: HB 4860 (H-1) as passed the House is a FY 2009-10 school aid supplemental and the current version of the Senate bill is a FY 2010-11 school aid supplemental thus this analysis does not include House action.

Major Budget Changes From FY 2009-10 YTD Appropriations	FY 2010-11 YTD	Senate From YTD
*1. School Bond Loan Fund (Sec. 11j)* Senate decreases appropriation by $40.0 million to recognize one-time savings created by refinancing the current bonds.	Gross Restricted	$45,134,000 45,134,000	($39,966,200) (39,966,200)
2. *MBT* *Impact on Out of Formula Districts (Sec. 22e)* Senate adds an additional $500,000 forPontiacSchool District.	Gross Restricted	$1,300,000 1,300,000	$500,000 500,000
*3. Challenge Grant Program (Sec. 24c)* Senate adds an additional $100,000 for the Challenge grant program.	Gross Restricted	$642,300 642,300	$100,000 100,000
*4. Renaissance Zone Reimbursement (Sec. 26a)* Senate eliminates the State Education Tax (SET) reimbursement from the General fund to the School Aid Fund per the target agreement. Maintains School Aid reimbursements to districts.	Gross Restricted GF/GP	$35,500,000 26,300,000 $9,200,000	($9,200,000) 0 ($9,200,000)
*5. Federal Grants (including No Child Left Behind) (Sec. 39a)* Senate increases funding by $861,700 to recognize increased available Federal funding for rural and low income schools grant.	Gross Federal	$794,333,300 794,333,300	$861,700 861,700
*6. Postsecondary Agriculture Education Program (Sec. 92)* Senate appropriates $300,000 toSaginawValleyState University for the purpose of establishing an agriculture education program.	Gross Restricted	N/A N/A	$300,000 300,000
*7. State Aid to Libraries for MELCat Support (Sec. 93)* Senate appropriates $1.5 million to the Library of Michigan for state aid to libraries to help support theMichigan electronic library (MELCat) in public schools and public libraries. This is a 26% increase in the amount appropriated in the Department of Education budget.	Gross GF/GP	N/A N/A	$1,500,000 $1,500,000
*8. CEPI (Sec. 94a)* Senate recognizes thecontingency appropriation of $10.2 million GF/GP to support CEPI in the implementation of recent education reforms becauseMichigan did not receive a Federal Race to the Top award.	Gross Federal GF/GP	$23,928,900 10,067,800 $13,861,100	$0 0 $0
*9. MEAP Testing (Sec. 104)* Senate recognizes thecontingency appropriation of $13.6 million School Aid Fund and the transfer of $5.1 million in Federal funds to the Department of Education for assessment requirements in the recent education reforms becauseMichigan did not receive a Federal Race to the Top award.	Gross Federal Restricted	$43,444,400 3,250,000 40,194,400	$0 0 0

Major Budget Changes From FY 2009-10 YTD Appropriations

FY 2010-11 YTD

Senate

From YTD

1. School Bond Loan Fund (Sec. 11j)

Senate decreases appropriation by $40.0 million to recognize one-time savings created by refinancing the current bonds.

Gross

Restricted

$45,134,000

45,134,000

($39,966,200)

(39,966,200)

2. MBT Impact on Out of Formula Districts (Sec. 22e)

Senate adds an additional $500,000 forPontiacSchool District.

Gross

Restricted

$1,300,000

1,300,000

$500,000

500,000

3. Challenge Grant Program (Sec. 24c)

Senate adds an additional $100,000 for the Challenge grant program.

Gross

Restricted

$642,300

642,300

$100,000

100,000

4. Renaissance Zone Reimbursement (Sec. 26a)

Senate eliminates the State Education Tax (SET) reimbursement from the General fund to the School Aid Fund per the target agreement. Maintains School Aid reimbursements to districts.

Gross

Restricted

GF/GP

$35,500,000

26,300,000

$9,200,000

($9,200,000)

($9,200,000)

5. Federal Grants (including No Child Left Behind) (Sec. 39a)

Senate increases funding by $861,700 to recognize increased available Federal funding for rural and low income schools grant.

Gross

Federal

$794,333,300

794,333,300

$861,700

861,700

6. Postsecondary Agriculture Education Program (Sec. 92)

Senate appropriates $300,000 toSaginawValleyState University for the purpose of establishing an agriculture education program.

Gross

Restricted

N/A

N/A

$300,000

300,000

7. State Aid to Libraries for MELCat Support (Sec. 93)

Senate appropriates $1.5 million to the Library of Michigan for state aid to libraries to help support theMichigan electronic library (MELCat) in public schools and public libraries. This is a 26% increase in the amount appropriated in the Department of Education budget.

Gross

GF/GP

N/A

N/A

$1,500,000

$1,500,000

8. CEPI (Sec. 94a)

Senate recognizes thecontingency appropriation of $10.2 million GF/GP to support CEPI in the implementation of recent education reforms becauseMichigan did not receive a Federal Race to the Top award.

Gross

Federal

GF/GP

$23,928,900

10,067,800

$13,861,100

9. MEAP Testing (Sec. 104)

Senate recognizes thecontingency appropriation of $13.6 million School Aid Fund and the transfer of $5.1 million in Federal funds to the Department of Education for assessment requirements in the recent education reforms becauseMichigan did not receive a Federal Race to the Top award.

Gross

Federal

Restricted

$43,444,400

3,250,000

40,194,400

Major Boilerplate Changes From FY 2010-11
*Sec. 81. ISD Operations* REVISED Senate modifies language added in PA 110 of 2010 which would protect from future reductions the portion of an ISD's allocation under Section 81 equal to the amount transferred into Section 81 for each ISD in 1995-96 from former section 146 and section 147 related to FICA and retirement and revises base year to 1994-95.
*Sec. 102. Deficit District Reporting* REVISED Senate adds language to the deficit district reporting requirement by also requiring any district adopting a current year budget that projects a deficit fund balance to follow the same rules as a district currently in deficit.
*Sec. 166b. Districts providing instruction for Nonpublic Schools* REVISED Senate makes technical change to language added in PA 110 of 2010 which allows aPSA that is located in the district, or in a district contiguous to the district, in which the nonpublic school is located to provide instruction to a nonpublic student under the same conditions that apply to the contiguous district.

Major Boilerplate Changes From FY 2010-11

Sec. 81. ISD Operations REVISED

Senate modifies language added in PA 110 of 2010 which would protect from future reductions the portion of an ISD's allocation under Section 81 equal to the amount transferred into Section 81 for each ISD in 1995-96 from former section 146 and section 147 related to FICA and retirement and revises base year to 1994-95.

Sec. 102. Deficit District Reporting REVISED

Senate adds language to the deficit district reporting requirement by also requiring any district adopting a current year budget that projects a deficit fund balance to follow the same rules as a district currently in deficit.

Sec. 166b. Districts providing instruction for Nonpublic Schools REVISED

Senate makes technical change to language added in PA 110 of 2010 which allows aPSA that is located in the district, or in a district contiguous to the district, in which the nonpublic school is located to provide instruction to a nonpublic student under the same conditions that apply to the contiguous district.