Senate Subcommittee Approves School Aid Budget

The Senate Appropriations K-12, School Aid and Education Subcommittee approved a $13.739 billion total School Aid budget on Wednesday. Senate Bill 775 maintains the state’s current 2X formula for differentiating increases between high-spending and low-spending districts, and removes a number of categorical funding items. The proposal also includes a substantial increase in funding for the Michigan Public School Employees Retirement System (MPSERS) rate cap, as well as an increase in spending for the Great Start Readiness Program.

Governor Snyder proposed a modification to the 2X formula in order to distribute an additional $83 to $111 per pupil. Not changing the formula has allowed the Senate to propose an increase of between $150 and $300 per pupil, making the basic foundation allowance $8,199 and the minimum $7,376. The Senate added language that defines a schools total foundation allowance to be considered the sum of its statutory allowance as well as its MPSERS rate cap per pupil. The Department of Education is also required to publish a list of total foundation allowances under the bill.

Governor Snyder proposed eliminating MPSERS payments and using it to “buy down” the rate cap from 20.96 percent of payroll to 19.76 of payroll. Instead, the Senate kept the rate cap, and allocated the money to the foundation grant. The Governor also recommended a $50 million transfer from the School Aid Fund, but the Senate did not agree with the recommendation. The Senate budget also moves $150 million School Aid dollars from the community colleges budget into the K-12 budget, while moving $150 million from the General Fund in the K-12 budget into the community colleges budget. The move stems from the Democrats push for less School Aid money for non-K-12 purposes.

The Senate did not include the Governor’s proposed $10 million allocation for an account through which grants could be made to dissolving districts to ensure they provide students services until the end of the school year. The budget retains online learning eligibility for 5^th- 12^th graders and requires students to register for an online course in the semester prior to enrolling, unless the student has just moved to the district. The Senate did not approve the Governor’s proposal to alter the use of at-risk funds for the purpose of ensuring that third graders are proficient in reading and that high school graduates are career and college ready. It also did not include a $250,000 appropriation for a study analyzing the state’s current career and college readiness education system.

The Senate agreed with the Governor on a $250,000 appropriation to increase the number of pupils who participate and succeed in Advanced Placement and International Baccalaureate programs. The original plan was to cover part or the entire test cost for low income pupils, but the Senate included a provision that students pay at least $5 toward each test paid for by the state. Also included was a new categorical appropriation of $5 million to convert buses from diesel fuel to natural gas. Districts would have to apply for the grant, and priority would be ranked by total miles driven. School districts could receive $8,000 per bus, up to a limit of $50,000.

posted by PAA Online , Friday, March 21, 2014 11:30 AM
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