SCHOOL AID SUPPLEMENTAL: H.B. 5872 (S-5):
EDUCATION JOBS FUND FLOOR SUMMARY
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House Bill 5872 (Substitute S-5)
Sponsor: Representative Terry Brown
House Committee: Appropriations
Senate Committee: Appropriations
CONTENT
House Bill 5872 (S-5) is a fiscal year (FY) 2010-11 school aid supplemental, appropriating Federal Education Jobs Fund dollars to school districts (including charter schools) and intermediate school districts (ISDs). The bill would appropriate approximately $316.3 million in total, with $311.8 million allocated to districts and the remaining $4.5 million to ISDs. The allocations would be one-time payments, and would be in addition to school aid payments allocated under Public Act 110 of 2010 (the FY 2010-11 school aid budget).
School districts would receive funding in two steps. The first step would be an amount equal to $154 per pupil, multiplied by the district's total pupils. This would be a temporary restoration of the cut in per-pupil funding that occurred first in FY 2009-10 and is continued in FY 2010-11. It is estimated that this would spend $246.0 million of the $311.8 million.
The remaining $65.8 million would be distributed where each district would get an amount equal to the difference between what their foundation allowance would be if the remaining funds were distributed through the "2x" formula, and what the districts' foundation allowances actually are, multiplied by the districts' pupils. The "2x" formula provides a minimum dollar increase to higher-funded districts, and twice that increase to districts at the minimum level of funding, with a sliding scale of increases provided to districts falling in between the minimum and maximum foundation allowances. The minimum increase provided to all districts using this formula to distribute the remaining available Federal funding is $23 per pupil, with a maximum increase of $46 per pupil. The attached document shows estimated increases for each school district under this legislation.
The $4.5 million set aside for ISDs equates to 6.9% of their FY 2010-11 allocations that were enacted under PA 110 of 2010. If funding remained after the dollars were allocated to districts and ISDs via the two formulae, then those funds would be distributed to eligible districts in relative proportion to their original "2x" allocations.
MCL 388.1611p
FISCAL IMPACT
The bill would appropriate an estimated $316,270,300 in Federal funds to school districts and ISDs, to distribute Education Jobs Fund dollars the State expects to receive. The Governor submitted Michigan's application for these funds on September 8, 2010.
Date Completed: 9-29-10 Fiscal Analyst: Kathryn Summers
floor\hb5872 Bill Analysis @ www.senate.michigan.gov/sfa
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.
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. 5872/0910