The omnibus education budget was passed
Wednesday by slim margins in both the House and the Senate. The budget
allocates $15.75 billion to state universities, community colleges, and K-12
schools. The budget was approved with $177 million to increase foundation allowances.
A $50 per-pupil increase could be seen in all districts along with a new equity
payment, for school districts with foundation allowances lower than $7,251, of
up to $125 per pupil if Governor Rick Snyder’s recommendation of distributing
$150 million through the 2X formula is followed. The basic allowance would be
set at $8,099 while the minimum pupil allowance would be $7,251.
The budget is a 4.1 percent increase to the
current fiscal year’s budget and it is also higher than the original
suggestions from the House, Senate, and the Governor. The Great Start Readiness
Program will receive a reserve fund balance of $25 million while they will see
a $65 million increase. The budget, as passed, would also allow families who
have income levels of 300 percent of the poverty line or below to enter the
program if all children whose families are at 250 percent of the poverty line
have been helped. Included in the budget is $1.2 million for the contracting of
health and nutrition education software. The bill also stipulates the use of
the Michigan Educational Assessment Program (MEAP) for the 2014-2015 fiscal
year and then requires the bidding out of a new test.
The Michigan Public School Employees’
Retirement System (MPSERS) received a $108 million increase in funding in order
to maintain the 20.96 percent of payroll cap rate. Both the Governor and the
House suggested $100 million to bring the cap rate down to 19.76 percent. The
increase in the MPSERS funding is heralded by Republicans as an average of $500
per student of additional funding. The Democrats believe that while the MPSERS
funding was good for schools it was a Republican policy that hurt the schools
in the first place. School leaders have also expressed opposition saying that
the $50 increase is not enough to close the gap of rising MPSERS costs and will
lead to a $16 cut. These leaders said that it is possible for up to 150 school
districts to feel the effects of these cuts.