Early Warning System Bills

On Wednesday, the Senate Appropriations Committee heard public testimony on a package of bills designed to reduce the number of Michigan school districts in deficit or financial distress. State Senator Roger Kahn (R-Saginaw Township), Chair of the Senate Appropriations Committee, decided to delay voting on the bills until concerns of school groups could be addressed. The package of bills (SB 951, SB 952, SB 953, SB 954, SB 955, SB 957, and SB 978) had been discussed and modified over the summer in three work group sessions, but the original intent remains the same.

State Senator Howard Walker (R-Traverse City), who has spearheaded the effort, said the legislation was designed to institute a graduated scale of non-improvement, with greater degrees of disincentives such as the withholding of state aid or the placing of an emergency manager in the event a school or district continues to slide into financial distress. State Senator Bruce Caswell (R-Hillsdale) noted that financial information that schools submit to the state is inaccessible for nearly a year, making it difficult for the state to discern whether a school is in trouble.

Senator Mark Jansen (R-Gaines Township) expressed concern over the cost of additional employees that would be necessary to oversee the implementation of the legislation, but an official from the Department of Treasury said the cost is minimal when compared to the costs of having deficit districts or the appropriation of emergency funds. The Michigan Association of Intermediate School Administrators, Oakland Schools, Wayne Regional Education Service Agency, the Michigan Association of School Boards, and the Genesee Intermediate School District (ISD) showed support for some, but not all of the legislation. Others, such as the Calhoun ISD, felt the bills could be too burdensome. Senator Kahn said he would get together with Senator Caswell, Senate Majority Leader Randy Richardville (R-Monroe), and officials in the education community to discuss a future course of action and the timeframe to come to a compromise.

posted by PAA Online , Friday, September 12, 2014 1:01 PM
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