David Hecker
President

Lois Lofton Doniver Secretary-Treasurer

Louise Somalski
Legislative Coordinator

January, 2007

Links to current Advocacy Campaigns
may be found in the Legislative Action Center

Budget Shortfalls for General and School Aid Funds

A Revenue Estimating Conference is required in January of each year in Michigan. The principal participants in the conference are the State Budget Director and the Directors of the Senate and House Fiscal Agencies or their respective designees. Other participants may include the Governor and senior officials from the Department of Treasury.

This official economic and revenue outlook is the starting points for putting together the revenue estimates. Their estimates are then used to formulate an accurate prediction of revenue available for appropriation in the upcoming fiscal year.

Recommendations made by the Revenue Estimating Conference taken into consideration to determine policy changes that will have to be made to the state's existing budget as lawmakers and the administration craft the state's budget for this year and next.

The January Revenue Estimating Conference has announced that the state has a combined $819 million deficit for the current fiscal year of Fiscal Year 2007. The General Fund is expected to finish $442 million in deficit for the current fiscal year and the School Aid Fund is expected to finish $377 million in deficit. The Governor and state lawmakers will need to either cut state spending and/or raise revenue by a combined $819 million by September 30 or finish the year in deficit.

Schools are faced with the possibility they could lose at least some of the additional $210 per student they are scheduled to receive from the state. Governor Jennifer Granholm and the Legislature planned on a school aid fund totaling more than $13 billion from all sources. The projected revenue shortfall of $377 million in the school aid fund translates to about $224 per pupil. With the general fund also facing a projected $442 million deficit, it may be difficult for schools to emerge unscathed.

Fourteen school districts are in the red this year and about 20 more have a cushion of 2 percent or less, below the 15-20 percent experts recommend. Colleges and universities could also see their state funds cut as the state attempts to balance their budget.

The governor has appointed a 12-member Emergency Financial Crisis Panel headed by former Governors William Milliken and James Blanchard to submit budget-balancing proposals by early February, which some say are likely to include tax increases.

Governor Granholm wants the panel's recommendations in hand before she presents her State of the State Address on February 6, and her budget proposal two days later on February 8.

Tax hike scenarios drawing the most attention in Lansing include taxing services, moving from a flat-rate income tax to a graduated tax and raising the gas tax for roads. All would require a public vote or at least legislation, so they would not be short-term solutions to the immediate problem.

Next year's outlook. . . .

The auto industry's declining market share, a stagnant housing market, a high jobless rate and legal woes over a settlement with tobacco companies are among the factors battering tax collections. Sales tax receipts are down slightly; proceeds from state income and business taxes are static.

Michigan's economic outlook for 2007 and 2008 also remains weak, with unemployment expected to increase significantly and motor vehicle sales slightly declining. Those factors alone will hurt revenues for both the remainder of the current fiscal year and the 2007-2008 fiscal year. But what could really knock state revenues down in 2007-2008 is the current lack of a replacement for the Single Business Tax.

While a replacement tax for the Single Business Tax is anticipated, the Revenue Estimating Conference based its estimates on current tax law, and current law has the Single Business Tax expiring on December 31 with no replacement yet enacted.

If a tax replacement is enacted that fully replaces the Single Business Tax revenues, then experts' estimate total state revenues of $19.75 billion, some $300 million more than the current year.

Unemployment in Michigan is expected to increase over the levels it has seen for the last several years. Projected average unemployment rates are approximately 7.5 percent in 2007 and 7.7 percent in 2008. Those projections compare to the 6.9 percent jobless rate in November and an average to that point of 6.7 percent.

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Wrap-Up of 2006 Legislature

During the marathon final days of the 93rd legislative session, action was taken on many education- related bills. The following bills were ordered enrolled and sent to the Governor:

School Retirement - SB 1017 (Jelinek, R-Three Oaks) - PUBLIC ACT 617, 2006
Allows public school employees to name a second spouse as retirement beneficiary if first spouse predeceases him or her naming of spouse as beneficiary if marriage occurs after retirement allowance effective date.

Capitol Outlay Budget - SB 1081 (Prusi, D-Ishpeming) 2006 - 2007 -VETOED
Contains $529,382,300 in state funding for university and community college construction projects. The Governor VETOED this bill stating that although it contained many worthwhile projects the state could not face the fiscal stress of those projects at this time when its finances are severely strained.

Michigan Merit Award - HB 6302 (Hunter, D-Detroit) - PUBLIC ACT 478, 2006
Creates new Michigan Merit Award Program as reported in the December 2006 Capitol Report.

Merit Scholarship - SB 1335 (Cherry, D-Burton) - PUBLIC ACT 479, 2006
Creates new Michigan Merit Scholarship Program as reported in the December 2006 Capitol Report.

Teacher Certificates - SB 1327 (Kuipers, R-Holland) - PUBLIC ACT 619, 2006
Revises procedure for nullifying teacher certificates as reported in the December 2006 Capitol Report.

High School Graduation - SB 1427 (Kuipers, R-Holland) - PUBLIC ACT 623, 2006
Amends the recently enacted Michigan Merit Core Curriculum, in which a parent or legal guardian can request a personal curriculum that modifies certain aspects of the requirements. This bill would amend provisions dealing with the personal curriculum option for special education, as reported in the December Capitol Report, except it excludes references to transfer students.

Teacher Crimes - HB 4931 (Schuitmaker, R-Lawton) - PUBLIC ACT 654, 2006
Enacts sentencing guidelines for crime of school employees failing to report conviction for listed offenses.

Criminal Background Checks - HB 6173 (Taub, R-Bloomfield Hills) - PUBLIC ACT 580, 2006
Revises the provisions concerning the background checks and revocation of teaching certificates. House Bill 6173 does the following:

• Requires a school district, ISD, PSA, or nonpublic school to retain the results of an individual's criminal background checks in his or her employment records.
  
  
• Allows a school district, ISD, PSA, or nonpublic school to use results maintained by the Department of Education (DOE) to confirm that an individual did not have any criminal history.
  
  
• Requires a school district, ISD, PSA, or nonpublic school to verify a report of certain convictions or the results of a criminal history check or criminal records check using public records before taking any action based on the report.
  
  
• Requires the DOE to provide schools with information on how to verify a conviction using public records.
  
  
• Requires a school district, ISD, PSA, or nonpublic school, if it received a report of certain convictions by an employee or contract worker, to report the information and any action taken to the Department of Education within 60 days, and requires the DOE to maintain a copy of the report for at least six years.
  
  
• Specifies that if the required criminal history and criminal records checks had been completed for an individual, then another check would not be required for that individual as long as he or she remained employed or working regularly and continuously under contract with no separation from service in any school district, ISD, PSA, or nonpublic school in the State; and stipulates that a layoff or leave of absence of one year or less would not be considered a separation from service.
  
  
• Expands a current requirement for an automated program that compares registered educational personnel and others with conviction information from the State Police, to include any other DOE list of individuals employed by or working regularly and continuously under contract in a school.
  
  
• Prohibits a school district, ISD, PSA, or nonpublic school from employing an individual who did not comply with a requirement to provide fingerprints for a criminal records check or to give written consent for a criminal history check, effective July 1, 2008.
  
  
• Provides that a conviction of a listed offense would demonstrate that an individual was unfit to teach elementary or secondary school in the State, and would be sufficient to warrant the suspension or revocation of his or her teaching certificate or State Board of Education approval.

Criminal Background Checks - House Bill 6174 (Schuitmaker, R-80) - PUBLIC ACT 580, 2006
Amends the Child Care Licensing Act. This law does the following:

• Provides that if a child care center or day care center that was operated by a school district, ISD, PSA, or nonpublic school applied for or renewed a license under the Act, the required criminal history and criminal records checks would have to comply with the Revised School Code.
  


• Provides that a person or entity applying to renew a license to operate a child care center, day care center, or group day care home, or a certificate of registration to operate a family day care home, would not have to undergo criminal history and criminal records checks if the person or entity had remained licensed continuously after an initial criminal history and criminal records check.

I.S.D. Boards - HB 6004 (Palmer, R-Romeo) - POCKET VETOED BY GOVERNOR
Revises procedures for election of intermediate school district boards and certain provisions concerning intermediate school district expenditures. The Governor did not sign this bill during the allowable time frame.

• This bill was amended and expanded in the Senate to allow a specific public school academy (University Preparatory Academy High School sponsored by Doug Ross) with the approval of its authorizing body, transfer its currently enrolled pupils and property to an urban high school academy.
  


• The urban high school academy must include at least grades 9 through 12 within five years after the beginning of operations and may include other grades and any configuration of those grades, including kindergarten and early childhood education, an adult basic education program, adult high school completion program, or general education development testing preparation program, as specified in its contract.

The following bills were reported in the December Capitol Report but were NOT ENROLLED:

Because the 93rd Legislative Session has ended, these bills are dead. We expect many of these issues to return with new bill numbers this session.

House Bills 4079 and 4080 (Palmer, R-Romeo) Education Flexibility Contracts
House Bill 6287 (Pastor, R-Livonia) School Board Conflict of Interest Policy
House Bill 6528 (Pavlov, R-St. Clair) School Employee Strikes
House Bill 5963 (Elsenheimer, R-Bellaire) Hiring Non-Certificated Teachers
House Bill 4319 (Lemmons, D-Detroit) Unlimited Charter Schools in Wayne County

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Board Allows Limited Seclusion &Restraint for Students

After newly two years of study, public comments, and four drafts, the State Board of Education unanimously adopted state standards to guide schools in emergency use of seclusion and restraint of students. Under a policy adopted at the December meeting, students can be secluded or restrained only if they pose a threat to themselves or others and any such action would have to be taken over, as soon as possible, by someone trained in the process.

Restraint is any act of holding a student in place but it cannot involve use of drugs and it cannot place the student facedown on the floor. School staff ending a restraint with the student in a prone position would have to take efforts to move the student to another position and no position could interfere with the child's breathing.

Seclusion is placing the child in a room alone where he or she is prevented from leaving although the room cannot be locked and the child must be observed by staff at all times.

Because the policy now covers all students under the jurisdiction of the board, not just special education students, it prohibits use of seclusion for pre-school students.

• Any staff involved in seclusion or restraint, except for an initial emergency restraint, be trained in permissible actions and use of the practice.
• All staff, including substitute teachers, are to be trained in techniques to avoid the practice and to de-escalate potentially dangerous situations.
• The Department is to report back by April on the feasibility of more extensive training for all teachers in the state on "positive behavior supports."
• Schools are required to record each time a student is restrained or secluded, with the information being analyzed at the state, intermediate and local district level.
• Individual student behavior plans may include provisions that would allow for restraint or seclusion if the student has a history of violent or aggressive behavior, but clarified that those provisions could only be used if the student's actions pose a threat.

The entire document "Supporting Student Behavior: Standards for the Emergency Use Of Seclusion and Restraint" is available on the Michigan Department of Education's website: http://www.michigan.gov/mde.
Download .pdf of complete document >>

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Outperforming School Districts in Michigan in 2004-05

Standard & Poor's has identified 43 school districts, or 8.4 percent of the 512 districts in Michigan with sufficient data for analysis, that have outperformed demographically similar school districts in reading and math proficiency (RaMP) for two consecutive years (2003-04 and 2004-05). This report represents Standard & Poor's second risk-adjusted performance analysis of Michigan school districts, updating the initial study using data for the 2004-05 school year.

It is particularly noteworthy that 30 of these 43 school districts have outperformed for three consecutive years. These districts were among those recognized in Standard & Poor's initial Michigan study, which covered data from the 2002-03 and 2003-04 school years. These "outperforming" school districts are diverse, serving student populations in 2004-05 that range from 2.0 to 89.0 percent economically disadvantaged, while achieving average proficiency rates in reading and math that range from 65.2 to 93.4 percent.

To be identified at an "outperforming school district" a school district must:

1. Achieve higher levels of student proficiency than peers. Outperformers must report higher percentages of students that score at or above state standards on reading and math tests than other school districts that serve similar proportions of economically disadvantaged students.
   


2. Perform at a level that significantly exceeds statistical expectation. Outperformers must achieve proficiency levels that fall above the threshold for the expected performance zone, as simply beating peers is not sufficient.
   


3. Outperform consistently. Outperformers must repeat this performance for at least two consecutive years.

It is important to note that school districts may be identified as outperformers and still not meet Adequate Yearly Progress (AYP). There are two reasons for this: 1) the criteria used for determining outperformers differ from those used to determine if a school district makes AYP; and 2) examining school districts, even those not making AYP, may uncover practices that, if replicated, can help lower-performing school districts to improve.

Of the 43 "outperforming" districts, AFT Michigan represents the following four: Brown City Community Schools; Lake City Area School District; Midland Public Schools; and Tawas Area Schools. Brown City Community Schools; Lake City Area School District; and Midland Public Schools have outperformed for three consecutive years (2002-03, 2003-04 and 2004-05). The data reveal that ongoing improvements are occurring in these Michigan classrooms.

Our congratulations to our members serving children in Brown City, Lake City, Midland and Tawas.

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House and Senate Committees

Listed below are the House and Senate Standing Committee members and Senate Appropriations Subcommittee members. It was not sure at press time who the two additional Democratic members of the New Economy and Quality of Life Committee would be. The House Appropriations Subcommittee members are yet to be announced:

AGRICULTURE (3/2): Van Woerkom, Gilbert, Birkholz, Gleason, Whitmer

APPROPRIATIONS (11/7): Jelinek, Pappageorge, Hardiman, Kahn, Cropsey, Garcia, George, Jansen, Brown, McManus, Stamas, Switalski, Anderson, Barcia, Brater, Cherry, Clark-Coleman, Scott

BANKING & FINANCIAL INSTITUTIONS (4/3): Richardville, Sanborn, Cassis, Stamas, Hunter, Clarke, Olshove

CAMPAIGN & ELECTIONS OVERSIGHT (3/2): McManus, Brown, Jansen, Jacobs, Schauer

COMMERCE & TOURISM (3/2): Allen, Gilbert, Stamas, Clarke, Hunter

ECONOMIC DEVELOPMENT & REGULATORY REFORM (4/3): Sanborn, Richardville, Allen, Gilbert, Thomas, Hunter, Jacobs

ENERGY POLICY (5/3): Patterson, Brown, Birkholz, Kuipers, Richardville, Olshove, Prusi, Thomas

EDUCATION (3/2): Kuipers, Van Woerkom, Cassis, Whitmer, Gleason

FAMILIES & HUMAN SERVICES (2/1): Jansen, Hardiman, Jacobs

FINANCE (4/3): Cassis, Gilbert, McManus, Jansen, Prusi, Jacobs, Whitmer

GOVERNMENT OPERATIONS & REFORM (4/3): Bishop, Patterson, Cassis, Kuipers, Schauer, Clarke, Olshove

HEALTH POLICY (4/3): George, Patterson, Sanborn, Allen, Clarke, Gleason, Jacobs

HOMELAND SECURITY & EMERGING TECHNOLOGIES (4/3): Brown, Garcia, Richardville, Pappageorge, Hunter, Olshove, Thomas

JUDICIARY (4/3): Kuipers, Cropsey, Sanborn, Patterson, Whitmer, Clarke, Prusi

LOCAL, URBAN & STATE AFFAIRS (3/2): Van Woerkom, Birkholz, Allen, Gleason, Basham

NATURAL RESOURCES & ENVIRONMENTAL AFFAIRS (3/2): Birkholz, Van Woerkom, Patterson, Basham, Prusi

SENIOR CITIZENS & VETERANS AFFAIRS (3/2): Allen, Pappageorge, Garcia, Olshove, Basham TRANSPORTATION (3/2): Gilbert, Kahn, Van Woerkom, Basham, Gleason


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SENATE APPROPRIATIONS SUBCOMMITTEES

AGRICULTURE (2/1): Brown, Jelinek, Scott CAPITAL OUTLAY (6/4): McManus, Jelinek, Brown, Cropsey, Hardiman, Pappageorge, Switalski, Cherry, Clark-Coleman, Scott

COMMUNITY COLLEGES (2/1): Hardiman, McManus, Clark-Coleman

COMMUNITY HEALTH (4/3): Kahn, Pappageorge, George, Stamas, Cherry, Barcia, Switalski

ECONOMIC DEVELOPMENT (3/2): Hardiman, George, Stamas, Scott, Anderson

ENVIRONMENTAL QUALITY (2/1): Garcia, Cropsey, Brater

GENERAL GOVERNMENT (2/1): Pappageorge, Garcia, Anderson

HIGHER EDUCATION (4/3): Stamas, George, Hardiman, McManus, Barcia, Anderson, Brater

HISTORY, ARTS & LIBRARIES (2/1): George, Jansen, Clark-Coleman

HUMAN SERVICES (3/2): Hardiman, Kahn, Jansen, Scott, Barcia

JUDICIARY & CORRECTIONS (2/1): Cropsey, Kahn, Brater

K-12, SCHOOL AID, EDUCATION (3/2): Jelinek, Brown, Garcia, Switalski, Clark-Coleman

NATURAL RESOURCES (2/1): McManus, Jelinek, Brater

RETIREMENT (2/1): Jansen, Kahn, Cherry

STATE POLICE & MILITARY AFFAIRS (2/1): Garcia, Cropsey, Barcia

TRANSPORTATION (2/1): Hardiman, Cropsey, Anderson


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HOUSE STANDING COMMITTEES

AGRICULTURE (7/4): Mayes, Byrum, Angerer, Brown, K. Law, Leland, Sheltrown, Walker, Ball, Meekhof, Nitz

APPROPRIATIONS (18/12): Cushingberry, Gillard, Bauer, Bennett, Byrnes, Cheeks, Espinoza, Gonzales, Hammel, Hood, Jackson, Lahti, LeBlanc, McDowell, Sak, A. Smith, Spade, Vagnozzi, Acciavatti, Agema, Amos, Booher, Brandenburg, Caswell, Caul, Hansen, Moss, Nofs, Proos, Shaffer

BANKING AND FINANCIAL SERS (5/4): Coulouris, Johnson, Clemente, Mayes, V. Smith, Moore, Calley, Green, Robertson

COMMERCE (12/7): Meisner, Robert Jones, Accavitti, Byrum, Clemente, Coulouris, Dean, Griffin, Johnson, Sheltrown, Simpson, Valentine, Hildenbrand, Huizenga, Rick Jones, Knollenberg, Meltzer, Palsrok, Stakoe

EDUCATION (14/9): Melton, Valentine, Angerer, Brown, Byrum, Clack, Corriveau, Dean, Hopgood, Lindberg, Meisner, Miller, Polidori, Scott, Moolenaar, Emmons, Hildenbrand, Hoogendyk, Knollenberg, Opsommer, Pearce, Schuitmaker, Steil

ENERGY AND TECHNOLOGY (12/7): Accavitti, Mayes, Angerer, Brown, Clemente, Ebli, Hammon, Hopgood, Lemmons, Lindberg, Melton, Miller, Nofs, Garfield, Horn, Huizenga, Moolenaar, Opsommer, Palsrok

ETHICS AND ELECTIONS (5/3): Corriveau, Clemente, Bieda, Donigan, Hammon, Pearce, Ward, Wenke

FAMILIES AND HUMAN SERS (5/4): Clack, Dean, Accavitti, Hammon, Wojno, Sheen, Hoogendyk, Palmer, Stahl

GOVERNMENT OPERATIONS (6/3): Wojno, K. Law, Condino, Constan, Polidori, Young, Hoogendyk, Hune, D. Law

GREAT LAKES AND ENVIRONMENT (9/6): Warren, Donigan, Ebli, Griffin, K. Law, Leland, Meadows, Miller, Valentine, Robertson, Emmons, Meekhof, Moolenaar, Palmer, Walker

HEALTH POLICY (11/7): Angerer, Simpson, Byrum, Clack, Corriveau, Coulouris, Donigan, Hammon, Robert Jones, Valentine, Wojno, Gaffney, Ball, Calley, Green, Hune, Marleau, Ward

INSURANCE (10/7): V. Smith, Farrah, Condino, Constan, Johnson, Lemmons, Polidori, Scott, Simpson, Wojno, Hune, Emmons, Hildenbrand, D. Law, Moore, Robertson, Rocca

INTERGOVERNMENTAL, URBAN AND REGIONAL AFFAIRS (7/4): Byrum, Young, Coulouris, Farrah, Griffin, Johnson, Meadows, Pavlov, Meekhof, Nitz, Opsommer

JUDICIARY (9/6): Condino, Coulouris, Bieda, Corriveau, Meadows, Meisner, Scott, V. Smith, Warren, Schuitmaker, Elsenheimer, Rick Jones, D. Law, Rocca, Stakoe LABOR (7/4): Miller, Meadows, Bieda, Constan, Farrah, Hopgood, Lindberg, Wenke, Rick Jones, LaJoy, Steil

MILITARY AND VETERANS AFFAIRS AND HOMELAND SECURITY (5/4): Polidori, Brown, Dean, Lemmons, Sheltrown, Emmons, Garfield, Horn, Pastor

NEW ECONOMY AND QUALITY OF LIFE (7/4): Clemente, Leland, Clack, Meisner, Melton, 2 Vacancies, Huizenga, Garfield, Hildenbrand, Pastor

OVERSIGHT AND INVESTIGATIONS (3/2): Tobocman, Condino, Hood, Rick Jones, Horn

REGULATORY REFORM (5/4): Farrah, Scott, Meadows, V. Smith, Wojno, Marleau, Gaffney, Palsrok, Ward

SENIOR HEALTH, SECURITY AND RETIREMENT (5/4): Robert Jones, Constan, Hopgood, Lemmons, Warren, Ball, Green, Sheen, Stahl

TAX POLICY (10/7): Bieda, Condino, Farrah, Robert Jones, Mayes, Meisner, Melton, Sheltrown, Warren, Young, Meltzer, Calley, Palmer, Pastor, Sheen, Steil, Wenke

TOURISM, OUTDOOR RECREATION AND NATURAL RESOURCES (7/4): Sheltrown, Ebli, Brown, Hammon, K. Law, Lindberg, Simpson, Casperson, Horn, Stakoe, Walker

TRANSPORTATION (10/7): Hopgood, Griffin, Accavitti, Bieda, Donigan, Ebli, Leland, Mayes, Miller, Young, LaJoy, Casperson, Knollenberg, Nitz, Pavlov, Pearce, Stahl

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