House Passes EAA Expansion

Almost exactly a year after passing the bill the first time, the House of Representatives voted again late Thursday afternoon on a new version of House Bill 4369, legislation that allows the Education Achievement Authority (EAA), intermediate school districts and local school districts to now takeover a failing school.

The bill passed 56–54, with Representative Harvey Santana (D-Detroit) voting in favor of the bill and five Republicans voting no. The five Republicans were Representatives Jon Bumstead (Newaygo), Ben Glardon (Owosso), Peter Pettalia (Presque Isle), Phil Potvin (Cadillac), and Pat Somerville (New Boston).

The House debate lasted nearly 90 minutes as numerous Democratic members gave passionate floor speeches in opposition.

House Education Committee Chair and sponsor of the measure Representative Lisa Posthumus Lyons (R-Alto) has been working with the Senate and other stakeholders since the Senate moved their version of the reform in December, in the hope of moving a measure that will gain concurrence and move to the Governor’s desk.

posted by PAA Online , Friday, March 21, 2014 11:31 AM
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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 , 11:30 AM
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Health Groups Call For Phys. Ed. Requirement

State Representative Matt Lori (R–Constantine) has proposed a bill, House Bill 5196, which would require that all children through 5^th grade have a minimum of 30 minutes at least twice a week as well as another 60 minutes a week of physical activity. Grades 6 through 8 would have to have at least one semester of physical education lasting at least 45 minutes a day. Representative Lori acknowledged the program could be an unfunded mandate, but floated the idea of providing additional funding the in future. He pointed out that improving the health of the state’s children saves General Fund dollars, which the state could reallocate to schools.

Michael Maisner, Vice President of Active Communities for the Michigan Fitness Foundation, a member of the Healthy Kids, Healthy Michigan Coalition, said physical fitness is something that has to be learned, like any of the other skills taught in school. He and others pointed to studies that have shown students who exercise regularly perform better in class. Representative Theresa Abed (D–Grand Ledge) agreed with the need to allow local districts to set physical education standards. The committee did not take action on the bill Wednesday.

posted by PAA Online , 11:29 AM
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Poleski Proposes Revenue Sharing Overhaul

State Representative Earl Poleski (R-Jackson) proposed a new formula for disbursing revenue sharing dollars that would increase the number of communities receiving aid under the Economic Vitality Incentive Program (EVIP). While the formula more than doubles the number of communities that will receive funding, it provides for smaller increases than Governor Snyder has proposed for those currently in the system. Representative Poleski’s proposal includes the same total amount of funding as Governor Snyder’s proposal while allocating funds differently.

EVIP currently provides revenue sharing dollars to 486 cities. Under Representative Poleski’s proposal, current members would receive a 1 percent increase. 1,105 additional cities, villages, and townships would receive per capita payments of $7.14609, as long as they receive at least $5,000, raising the total number of local government entities receiving revenue sharing payments to 1,492. The current threshold is $3,000, and if the proposal is approved the new minimum of $5,000 will cut off 17 local governments from revenue sharing.

In order for local governments to receive their share of EVIP funds they must satisfy state requirements on financial transparency, service sharing, and retirement benefits. Governor Snyder proposed an alternative plan where local governments could instead meet a number of thresholds for financial health. He also proposed a new pot of funds, a total increase of 15%, that local governments could receive funding from if they meet the necessary financial health thresholds or fall below a series of thresholds on finances and crime indicating trouble. The Governor’s proposal would not provide any aid to local governments that aren’t currently receiving EVIP funding.

The proposal would also change the eligibility requirements for communities receiving more than $50,000. The transparency requirement would stay intact, but the service sharing aspect would be replaced by a requirement that the community commits 5 percent of one-third of its revenue sharing resources to road maintenance, and another 5 percent of one-third of shared revenue towards unfunded accrued liabilities.

posted by PAA Online , 11:29 AM
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Election Update

According to a survey conducted by Denno Research and commissioned by the Lambert, Edwards and Associates (LEA) consulting firm, Governor Snyder leads Democratic challenger Mark Schauer 42 percent to 39 percent, within the margin of error of +/- 4%. The last survey Denno Research did for LEA showed Governor Snyder at 45 percent and Mr. Schauer at 31 percent.

Southfield Mayor Brenda Lawrence became the first candidate out of many to have an official place on the ballot for the 14^th Congressional district when she filed her petitions on Wednesday. Ms. Lawrence filed the maximum of 2,000 signatures. The minimum amount required to get on the ballot is 1,000.

In the U.S. Senate race, Congressman Gary Peters has a slight lead over Terri Lynn Land at 37 percent to her 36 percent.

Former Republican State Representative Marty Knollenberg of Troy will run in the primary along with four other Republican candidates in the race to fill the 13^th State Senate District seat, where State Senator John Pappageorge (R-Troy) cannot seek re-election due to term limits. He will join Representative Tom McMillin (R-Rochester Hills), former Representative Andrew Raczkowski, former Representative Chuck Moss, and Republican Al Gui in the primary.

Former Representative Leon Drolet said Monday that it is unlikely he will challenge State Senator Tory Rocca (R-Sterling Heights) in the Republican primary for the 10^th Senate District. Mr. Drolet had considered a primary challenge after Sen. Rocca’s vote for Medicaid expansion.

State Representative Rob VerHeulen (R-Walker) has joined the House Republican Campaign Committee, according to a statement on Tuesday. He will take the place of Representative Mike McCready (R-Bloomfield Hills), who was appointed co-chair.

posted by PAA Online , 11:28 AM
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March 14th Trivia Results

In the March 14^th edition, PAAdvisory asked: How many chandeliers are in the State Capitol Building?

27 percent of respondents replied with the correct answer 19. The 19 chandeliers in the Capitol in Lansing are one of a kind and designed especially for the building by Tiffany's of New York. Weighing between 800-900 pounds apiece they are composed of copper, iron and pewter. 36 percent replied 91, and 27 percent answered 36.

posted by PAA Online , 11:26 AM
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PAAdvisory Briefs

Director of Veterans Trust Fund Named

Lieutenant Colonel Lindell Holm, a 25-year veteran of the U.S. Marine Corps, was named Director of the Michigan Veterans Trust Fund on Monday. He will oversee the daily operations of the fund which provides emergency grants for the state’s combat veterans. In 2013 the trust fund awarded grants totaling more than $2.3 million to more than 1,800 veterans in financial emergencies. While in service, Mr. Holm was decorated 16 times. He has received four Navy-Marine Corps Commendation Medals, was twice awarded the Air Medal and the Armed Forces Reserve Medal, as well as the Southwest Asia Service Medal and the Afghanistan Campaign Medal. Mr. Holm is a graduate of the University of Minnesota and Biola University.

Snyder Confirms Financial Emergency in Royal Oak Township

Governor Rick Snyder formally confirmed that Royal Oak Township is in a financial emergency. Township officials will have until March 26^th to determine if they will accept an emergency manger, reach a consent agreement with the State, call for a neutral evaluation, or file for Chapter 9 bankruptcy. Governor Snyder first declared a financial emergency on January 30^th after a financial review team issued a report on the township’s difficulties.

Michigan Charter Law in Top Five Nationally

The Center for Education Progress ranked Michigan’s charter school law fourth among the 50 states and Washington D.C. in a recently released scorecard. Michigan was one of four states to receive an A for its charter school law. Washington D.C., Minnesota, Indiana, and Arizona occupied the other four positions in the top 5.

Jeff Guilfoyle named Vice President at Public Sector Consultants

Public Sector Consultants recently announced that Jeff Guilfoyle, former President of the Citizens Research Council of Michigan, will join Public Sector Consultants. He will specialize in school finance, tax policy, intergovernmental fiscal relations, and issues pertaining to Michigan’s economy and state budget.

posted by PAA Online , 11:24 AM
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Question of the Week 3/21/2014

posted by PAA Online , 10:50 AM
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