David Hecker
President

Lois Lofton Doniver Secretary-Treasurer

Louise Somalski
Legislative Coordinator

June 2008

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

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2008-09 School Aid Budget

The House approved a FY 2008-08 School Aid Budget totaling 13.4 billion, up $515.5million from the current Fiscal Year. This is $32 million above the Senate's version and $102 million below the Governor's recommendation. Senate Bill 1107 has been sentto Conference Committee for final deliberation. A conference committee meeting has been scheduled for the afternoon of June 24.

Foundation Allowance Increase. The Governor increased per-pupil funding between$108 and $216, with the smallest increase provided to districts above $8,433, and the largest to those at $7,204. The Senate increased per-pupil funding between $71 and$142. The House increased per-pupil funding between $55 and $110. Sec. 20(1)

Kindergarten Membership. The Governor and House included intent language that beginning in FY 2009-2010, to receive full foundation allowance for kindergarten students the class hours must match that of grades 1-12. Current law provides fullfunding for either a half-day or full-day program. The Senate did not concur. Sec. 6(4)(r)

District of the First Class. The House changed the definition of a District of the FirstClass from a district with a membership greater than 100,000 to a district with the most pupils in membership in the immediate preceding fiscal year. Sec. 6(6)(m)

Reduction in Per-Pupil Increases for High School Grades Not Offered. The Governor included a new provision affecting increases in per-pupil foundation funding, such that for each high school grade, 9-12, not offered, the proposed increase would bereduced by 7.5%. The Senate and House did not concur. Sec. 20(22)

Isolated District Funding. The Governor allocates $1.3 million to a new subsectionthat appropriates an estimated $55 per pupil to school districts located in the upper peninsula and has 5.0 or fewer pupils per square mile. The Senate allocates $1.3million to a new subsection that appropriates an estimated $32 per pupil to school districts that have 5.0 or fewer pupils per square mile and a total square mileage greaterthan 200. The House concurs with Senate. Sec. 22d

Pupils Transferring to Detroit Public Schools After Count Day. The Senate requires DPS to bill not later than December 31 of the fiscal year following the year in which the pupil transferred, and allows for payment no later than October 31of thesecond fiscal year after the pupil transferred. Also allows the original district to bill DPS if it is determined that DPS owes funds to the district after accounting for thetransfer of students between the two schools. The House maintains current law. Sec. 25c

Declining Enrollment. The Governor, Senate, and House maintained appropriationsat the 2007-08 level of $20,000,000. Sec. 29

At-Risk Funding. The Governor, Senate, and House maintained appropriation at the 2007-08 level of$310,457,000. Sec. 31a

School Readiness Program. The Governor proposed an increase of $24.0 million ($2.0 million in GF/GP)to increase by more than 7,000 the number of at-risk four-year-olds to be served in a preschool setting. The Senate did not include this increase. The House concurred with the Governor's recommendation. Sec. 32

FY 2007-08 Hold Harmless for MSRP. The Governor, Senate, and House appropriated current yearfunding of $4,700,000 in FY 2007-08 to ensure districts receive at least what was received in FY 2006-07 for MSRP. The Senate concurred. NEW - Sec. 32e

New Early Childhood Immersion Grants. The House appropriated $2,000,000 for FY 2008-09 to awardedgrants of $500 per student to districts for new foreign language immersion preschool programs. (To qualify for the funding, the district must be currently receiving funding under Sec. 32d.) Sec. 32g - New

Great Start Innovative Programs. The Governor appropriated $2,500,000 for FY 2008-09 to ISDs toidentify practices that provide children ages 0-5 with quality early learning experiences that promote school readiness. The Senate did not include this new section. The House concurred with the Governor but appropriated only $1.5 million. NEW - Sec. 32h

School Readiness Competitive Grants. The Governor increased appropriation by $2 million to $14.7million to increase the number of 4-year-olds served. The increase would serve 588 more kids. Changes proposed for defining teachers qualified to teach in the program. The Senate appropriated current yearfunding of $12,650,000; concurred with the Governor's proposed changes in defining teachers qualified to teach in the program; and added language detailing an effective recruitment and enrollment process, andrequiring an income-eligible child to be referred to Head Start. The House appropriated $15.1 million to increase the number of 4-year-olds served by almost 588 and increased the per pupil grant from $3,400 to$3,500. Sec. 32l

MSRP Per Pupil Allocation. The Governor proposed a three-tier formula. Step l: fund the lesser ofchildren in need (calculated in Section 38) or capacity. Step 2: ensure districts receive at least prior year funding. Step 3: distribute remaining funds. Caps a new program at 32 children. The Senate concurred.The House concurred with Senate and increased the per pupil amount from $3,400 to $3,500. Sec. 39

Advanced and Accelerated Programs. The Governor increased the appropriations to $1,000,000 for FY2008-09, with the grants up to $17,500 for each ISD. The Senate increased funding by $65,000 to $350,000, and increased grants from $5,000 to $6,100. The House maintained FY 2007 - 2008 appropriations levels.Sec 57

ISD Operational and Targeted Funding. The Governor increased funding for ISD operations to$83,812,000. ISD would receive a 1.2% increase in basic funding, and the remaining $1,929,000 would be for ISDs to collaborate with the Department to strengthen curriculum and instruction related to the MichiganMerit Curriculum in high schools not achieving AYP. The Senate proposed a 1.1% increase with no new language included. The House increased funding by $809,100 or 1% for ISD general operations. Sec. 81

21st Century Schools Fund. The Governor included language, guidelines, and bonding at $32 million peryear for the proposed 21st Century Schools Fund, including eligibility and grant funding. The Senate included a different infrastructure proposal, providing per pupil grants for paying down capital debt, depositinto a sinking fund, or immediate building repair equal to approximately $16 per pupil. The House concurred with the Governor and added digital learning environment using digital access, creation anddistribution tools to the list of allowable uses for startup grants. Sec. 11n

Center for Educational Performance and Information (CEPI). The Governor and House appropriated$6,755,400 from GF/GP in FY 2008-09. Added a requirement that the CEPI coordinate the electronic exchange of students among K-12s and postsecondary institutions. Appropriated 1,793,200 in FY 2008-09from Federal funds. The Senate increased CEPI's funding by $2.3 million and clarified that this applies to the extent funding is available. Sec. 94a

Michigan Virtual University. The Governor added requirements that the MVU work with postsecondarygroups to develop an outreach plan with access to online resources designed to increase postsecondary enrollments, and that MVU provide a report on schools served, courses offered, and number of onlineenrollments. The Senate and House concurred. Sec. 98

Math and Science Centers. The Governor and the House continued State appropriations of $3,500,000and increased Federal funds to $5,249,300. The Senate increased State funding by $1,000,000 to $4,500,000. The increase is for those centers that can offer credit recovery and remedial assistance in mathand science courses. The Senate concurred with Governor's increased Federal funding. Sec. 99

Algebra I Credit Recovery Grants. The House appropriated $3 million for competitive grants to ISDs forAlgebra I Credit Recover pilot programs. ISDs receive $5 per pupil for each student in their constituent district. The ISD must match 1/3 of the grant award, work with at least one other entity and assist studentswith achieving Algebra I mathematics standards and benchmarks. The maximum grant award to any entity is $1 million. An additional $725,000 is for pilot grants to mathematics and science centers that are selectedby the mathematics and science centers network and the Michigan virtual university to develop and implement pilot programs for after-school and summer mathematics for eighth grade students. Sec. 99c -NEW

Academic Improvement Grant (Inkster Public Schools). The Governor appropriated $125,000 for FY2008-09, the last year of funding. The Senate concurred with the Governor to maintain funding at current year levels. The House increased the funding by $125,000 to $250,000.

Earmarked Funding for Highland Park. The House included an earmark out of a $1.0 millionappropriation for community college access grants, such as that $250,000 would be directed to Highland Park Schools. Sec. 99n - NEW

Schools of Choice. The Governor changed "15 day period" to "at least 15 calendar days but not more than30 calendar days." Required enrollment to be not later than the end of the first week of school. Required the written agreement regarding special education costs to address how the agreement shall be amended inthe event of significant changes in the costs or level of special education programs or services required by the pupil. The Senate and House concurred. Sec. 105 & 105c

Adult Education. The Governor included a new requirement that Adult Education programs determineeducational gain by testing participants before enrollment and at the end of the instructional period, using assessments approved by the Department. The Senate and House did not concur, and retained current law.Sec. 107

Michigan Public School Employees Retirement System Rates. The Governor reduced the contributionrate from 16.72% in the current year to 16.54% in fiscal year 2008-09. The Senate and House concurred. Sec. 147

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2008-09 Higher Education Budget

The Governor, Senate, and House all agree on the appropriation of $1,799,426,000 for the 2008-09 FiscalYear Higher Education Budget. Senate Bill 1099 has been sent to Conference Committee for final deliberation. A conference committee meeting has been scheduled for the afternoon of June 24.

State University Operations. The Governor provided a total increase of 3.0%, with individual universityincreases ranging from 2.3% to 6.2%. The increases were distributed based on three factors: 1) number of undergraduate Pell Grant awards; b) amount of research and commercial licensing activity; and c) numberof academic degrees conferred, with a higher weight given to math, science, engineering, and health degrees. The Senate provided an across-the-board increase of 3.0% for each university, to rebuild base appropriations.The House provided an increase of 2.7% across-the-board increase of $39.0 million, utilizing remaining funds for Indian Tuition Waiver costs and State Competitive Scholarship funding increase.

Indian Tuition Waiver Costs. The House added funds to 15 University line items equal to the differencebetween funds built into FY 2007-08 appropriations for Indian Tuition Waivers required under state statute and actual FY 2006-07 waiver costs.

Universities represented by AFT Michigan would receive the following Operations appropriations:

Tuition Restraint Language. The Governor added expectation that universities will limit residentundergraduate tuition increases to 2.3%. The Senate and House did not include new language. Sec. 436.

Per Student Floor Funding. The Governor deleted intent to provide $3,775 per student. The Senate retained this language. The House deleted this language. Sec. 450

Michigan Promise Grants. The Governor recommended increasing funding from $43.5 million to $90.5million for this program that provides $4,000 merit-based grants to students who complete two years of postsecondary education with a GPA of at least 2.5. The Senate and House concurred.

Tuition Incentive Program (TIP). The Governor increased funding by $4.1 million to $25.2 million tofund increasing numbers of TIP recipients and higher tuition costs. The Senate and House concurred. Sec. 310

Tuition Grants. The Governor maintained funding at FY 2007-08 level of $56.7 and offsets $1.4 millionin one-time carry-forward funds with GF/GP funds. The Senate and House concurred.

Timely Student Graduation. The Senate added intent language for universities to limit any changes to thegeneral requirements or credits needed for a student to graduate from a degree program while that student is enrolled in that program and to provide sufficient counseling to students to facilitate timely graduation.The House did not include this section. Sec. 471

2007 Delayed Payment. The Senate added intent to penalize universities that did not provide promisedtuition rebates. The House Committee did not include language. Sec. 472

Conflict of Interest. House stated intent for each state university governing board to examine theuniversity's operations for potential conflicts of interest. Sec. 217 - NEW

Project GEAR UP. The Governor continued current funding of $3,000,000 to target student scholarshipsin three urban school systems: Detroit, Flint, and Muskegon. The mission of the Federal "Gaining Early Awareness and Readiness for Undergraduate Programs" is to increase the number of low-income studentsprepared to succeed in postsecondary education. The Senate and House concurred.

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2008-09 Community College Proposed Budgets

The Senate concurred with the Governor's proposal to appropriate $302.2 million for the fiscal year 2009 Community College Budget. However, the House appropriated $310,617,000 for this budget. Senate Bill 1093 has been sent to Conference Committee for final deliberation. A conference committee meeting hasbeen scheduled for the afternoon of June 24.

Operations Funding. The Governor provided an overall of 3%, totaling $8,604,800 for community collegeoperations. Funds would be distributed using the funding formula developed by the Performance Indicators Task Force which considers enrollment and completion rates. Individual college increases range from 2.4%to 3.9%. The Senate and House concurred with the Governor.

Indian Tuition Waiver Adjustment. The House included funding of $882,600 to offset the differencebetween the current cost of the Indian Tuition Waiver Program and the amount that was rolled into the community college appropriation base for the Program in FY 1996-97.

Community Colleges represented by AFT Michigan would receive the following Operationalappropriations for Fiscal Year 2009:

At Risk Student Success Program. The Senate and House concurred with the Governor's recommendation to maintain current-year funding of $3.3 million to assist academically at-risk students.

Community Colleges represented by AFT Michigan would receive the following At-Risk appropriations:

Community College	Amount		Community College	Amount
Henry Ford Community College	$161,900		Lansing Community College	$153,500
Kirtland Community College	$125,400		Wayne County Community College	$132,600

Renaissance Zones. The Governor and House increased funding from $3,025,000 to $3,480,000, toreimburse colleges that lose property tax revenue as a result of the establishment of Renaissance Zones. The Senate reduced this line by $100.

Nursing Programs. The Governor did not include these programs. The Senate included a $100 placeholderfor nursing programs. The House included $7,000,000 for nursing programs.

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2008-09 Department of Education Budget

The Governor and House appropriated $95,666,200, a 4.2 percent increase from the current year. The Senate appropriated $94,543,200 for the FY 2008-09 Department of Education Budget. Senate has been sent to Conference Committee for final deliberation. A conference committee meeting has been scheduledfor the afternoon of June 24.

Highlights are listed below:

Educational Assessment and Accountability. The Governor, Senate and House increased funding by$1.1 million and 7.0 FTEs as the Department assumes responsibility for certain educational assessment functions which are currently done under contract (test creation, psychometric analysis, and the operationof a testing item bank system), in order to avoid contract cost increases.

They also provided $117,200 and 1.0 FTE for additional English Language Proficiency Assessment staffand $300,000 to support a best practices study for assessing students with disabilities.

21st Century Schools Program. The Governor and House increased budget by $500,000 and 3.0 FTEsfor the administration of the grant program for building small high schools which is included in the School Aid budget. The Senate did not include this program in the School Aid or MDE budget. Sec. 11n

Detroit Public Schools Performance Audit. The Senate added $300,000 for a performance audit of Detroit Public Schools. The House did not include this line item. Sec. 506

Teacher Preparation Programs. Provided $100,000 each for Central Michigan University alternative routeto certification program and Wayne State University pathways to teaching program. Required a reporting requirement for the programs including number of teachers certified, time served in the classroom, and teacher evaluations. The Governor, Senate and House added language directing the department to work with the universities to review the report results to determine subsequent funding strategies. Sec. 503

Alternative Teacher Program Accreditation. The Senate added new language requiring that alternativeteacher education programs be accredited by the National Council for Accreditation of Teacher Education (NCATE) or be a candidate for accreditation. The House did not include this section. Sec. 604

Cyberschools. The Senate added new language requiring the Department to report on barriers to theoperation of cyberschools for special student populations including dropouts and expelled students. The House did not include this section. Sec. 605

Comprehensive School Reform and Finance Study. The House included a $100 placeholder for this study.

Teacher Tenure Support Staff. The House added $50,000 and 0.5 FTE to help eliminate the backlog inteacher tenure cases.

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Bill Would Return Special Education Authority to State Board

The House Education Committee reported out House Bill 5323, which would restore the State Board ofEducation's rulemaking authority and certain administrative powers, duties, and functions related to special education services. In 1996, former Governor John Engler removed authority from the board by executiveorder, and placed it in the hands of the state superintendent and ISD superintendents.

The parents and AFT Michigan members who testified at the hearing on June 3, stated that they believepolicy changes imposed at both the state and local ISD levels were counter-productive. They were also frustrated by the fact that they were never afforded the opportunity to express their objections before thepolicies were implemented.

AFT Michigan supports the House Bill 5323 and wishes to thank our members from the Macomb ISD and Wayne County RESA for testifying and attending the House Education Committee meeting. House Bill 5323 passed the House on June 10.

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Public School Retirees Re-Employment

Under current law, a retiree can be employed by a school district that has an emergency situation depriving students of an education without a reduction in pension. An "emergency situation" is determined by the state superintendent of public instruction. (Since July 1999, the state superintendent has been required to issuean annual list of critical shortage disciplines.)

Under authorized emergency conditions, a retiree who has been retired for at least 12 months can be hiredas a teacher, principal, stationary engineer, administrator, or other approved category, for a period not to exceed six years. The emergency employment cannot be used to re-compute a retirement allowance.

These provisions are due to expire on July 1, 2011. AFT Michigan has lobbied to amend House Bill 4593from its original version to include the provisions listed below in exchange for extending the period of possible employment from six to eight years.

House Bill 4593 (Melton, D-Auburn Hills) would do the following:

• extend from six years to eight years, the maximum time a public school retiree could work in a schoolfollowing retirement;
  
  
• remove the July 1, 2011 sunset in the law;
  
  
• require school districts to pay 50 percent of a rehired retiree's health care to the retirement system during the third year, and 100 percent in the fourth and subsequent years of employment;
  
  
• and require the State Board of Education to approve or disapprove a local school district's request to fillpositions with retired teachers.

The district must include written documentation that the district has posted the positions and has beenunable to employ a qualified person.

House Bill 4593 has passed the House and is currently before the Senate Education Committee.

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