Capitol Report - July 2001

Michigan Federation of Teachers & School Related Personnel

Capitol Report Archives

Go to current Capitol Report for links to complete archive.

2001
June
May
April
March
February
January

2000

July 2001

School Aid Budget Cuts Pending
Higher Education Budget Agreement Reached
Community College Budget Presented to the Governor
Post Retirement Earnings Limit Extension Signed into Law
Parental Involvement Contract Legislation Enacted
FOIA: exempt School Directories
Hearings of House Sub-Committee on Child Protection

Return to Top

School Aid Budget Cuts Pending

When the Legislature failed to complete action on House bill 4371 before adjourning for summer recess, Governor Engler used his authority to order across-the-board prorated cuts in school aid payments. He ordered a 5 percent proration of all line items in the school aid budget, except constitutionally protected items like special education and a large share of the foundation allowance. This order will take effect on October 1 for the 2001 - 2002 school year unless the Legislature reaches an agreement before September 30.

Under the Governor's order, $171.5 million will be taken out of the $11.5 billion school aid budget , approximately $90 million more than is necessary due to lapsed funds. The per pupil foundation grant would be reduced by an average of $73 , although it would vary greatly from district to district with public school academies being cut an average amount of $325 per pupil .

For bargaining purposes, please understand this is a work in progress. This bill has been sent to conference committee, where negotiations could take place over the summer legislative recess. We will update you as negotiations progress. In the meantime, please contact the Lansing office if you need more specific information.

HOUSE BILL 4371 - K-12 SCHOOL AID REDUCTIONS
FISCAL YEARS 2000 - 2001, 2001 - 2002, 2002 - 2003

Language added which states that if sufficient Federal reading program dollars are received then excess reading dollars will be transferred back to PIE.

SECTION	CURRENT LAW	HOUSE BILL PASSED	SENATE PASSED
Section 6 (4) (y) Membership (Declining Enrollment)	FY 2000 - 2001 only, districts to average the previous three member-ship counts if their enrollment is declining and their membership is less than 1,550 pupils.	Extends this section to 2001 - 2002; requires that districts have both less than 1,550 pupils and 4.5 or fewer pupils per square mile to utilize a 3-year blend.	Senate Concurs
Section 11k Infrastructure	FY 2001 - $34 million FY 2002 - $34 million FY 2003 - $34 million	Repealed Repealed Repealed	Senate Concurs
Section 20 Foundation Allowance Calculations	Preservation is planned for the increases in the student foundation allowance (raising to $6,700 per student in 2003 from $6,000 this year).	New language added allowing districts with foundation allowances above the “hold-harmless” cap to receive larger increases in their foundation allowances (with voter approval) than the increases in the basic foundation allowance.	Hold-harmless language deleted. Added language allowing Detroit Public Schools to recalculate their foundation allowance for 2002, by building in the $15 million.
Section 25 Membership Reimbursement Calculations	Allows for districts who meet certain conditions to be reimbursed for educating pupils who were not enrolled in the district on the count day but then subsequently enroll in the district after the count day. Requires a minimum number of 25 students or 1% before this adjustment occurs.	No change	Removes requirement of 1% before qualifying for reimbursement for Detroit Public Schools .
Section 31a (1), (13) At-Risk Funding	FY 2001 - $304 million FY 2002 - $319.2 million FY 2003 - $329.1 million Section 13 - Increase at the same percentage as the Basic Foundation Allowance	No Change Reduced by $2.65 million Reduced by $7.59 million Deleted Added language to allow Dearborn Schools to qualify for additional at-risk money.	No Change Reduced by $5 million Reduced by $10 million Deleted Deleted
Section 32b Parenting Grants ("PIE Grants")	FY 2001 - $45 million FY 2002 - $45 million FY 2003 - $45 million	No Change Reduced by $18 million Reduced by $30 million	Fully funded as in current law.
Section 32c Interagency Early Childhood Grants	FY 2001 - $2 million FY 2002 - $2 million FY 2003 - $2 million	Eliminated Reduced by $1 million Reduced by $1 million	Eliminated Eliminated Eliminated
Section 32d (1) to (3) School Readiness Full Day Grants	FY 2001 - $20 million FY 2002 - $25 million FY 2003 - $30 million	Reduced by $4 million Eliminated Eliminated	Senate Concurs Eliminated Senate Concurs
Section 32e (1) Small Class-Size Grants	FY 2001 - $29.8 million FY 2002 - $29.8 million FY 2003 - $29.8 million	Reduced by $3.1 million Reduced by $3.1 million Reduced by $3.1 million	Senate Concurs
Section 32f (3) Michigan Literacy Progress Profile	FY 2001 - $5 million FY 2002 - $5 million FY 2003 - $5 million	No Change Reduced by $2 million Eliminated	No Change Eliminated Eliminated
Section 32f (4) Reading READY Kits	FY 2001 - $2.5 million FY 2002 - $2.5 million FY 2003 - $2.5 million	No Change Reduced by $2 million Reduced by $2 million	No Change Reduced by $1 million Reduced by $1 million
Section 32f (7) Reading and Other Grants (LAP Grants)	FY 2001 - $50 million FY 2002 - $50 million FY 2003 - $50 million	No Change Reduced by $20 million Reduced by $35 million	No Change Eliminated Eliminated
Section 32g Summer School Grants	FY 2001 - $38 million FY 2002 - $38 million FY 2003 - $50 million	Reduced by $10 million Eliminated Eliminated Repeals language requiring summer school for students grades 1 - 4 with low test scores.	Senate Concurs
Section 32h Counseling Grants	FY 2001 - $10 million FY 2002 - $10 million FY 2003 - $10 million	Reduced by $8.4 million Eliminated Eliminated	Senate Concurs
Section 33 Student Achievement Grants	FY 2001 - $15 million (Payment to Detroit Public Schools)	Reduced by $5 million	FY 2001 $15 million
Section 57 (3) Gifted and Talented Comprehensive Programs	FY 2001 - $6 million FY 2002 - $6 million FY 2003 - $6 million	No Change Reduced by $500,000 Reduced by $1 million	No Change Reduced by $1 million Reduced by $1 million
Section 63 Michigan Manufacturing Technology Program	FY 2001 - $1.8 FY 2002 - $1.8 FY 2003 - $1.8	No Change Reduced by $900,000 Eliminated	No Change Eliminated Eliminated
Section 94 School Accreditation Assistance	FY 2001 - $3 million FY 2002 - $5 million FY 2003 - $10 million	Reduced by $1.5 million Reduced by $3.5 million Reduced by $8.5 million	Reduced by $1.5 million Reduced by $2 million Reduced by $5 million
Section 95 Professional Development	FY 2001 - $10 million FY 2002 - $10 million FY 2003 - $10 million	Repealed Repealed Repealed	Senate Concurs
Section 96 Golden Apple Awards	FY 2001 - $8 million FY 2002 - $8 million FY 2003 - $8 million	Reduced by $7.95 million Eliminated Eliminated	Reduced to $50,000 Eliminated Eliminated
Section 99 (1) and (10) Math and Science Centers	FY 2001 - $9.7 million FY 2002 - $11.2 million FY 2003 - $11.6 million Section 10 - Increased by the same percent-age as the Basic Foundation Allowance	No Change Reduced by $1 million Reduced by $1.2 million Deleted	Senate Concurs
Section 107 Adult Education	FY 2001 - $80 million FY 2002 - $80 million FY 2003 - $80 million	No Change No Change Reduced by $500,000	No Change Reduced by $5 million Reduced by $5 million Legislative Intent Language - if funding becomes available, funding restored
Section 108 Adult Learning Program "PAL Program"	FY 2001 - $20 million FY 2002 - $20 million FY 2003 - $20 million	No Change Eliminated Eliminated Legislative Intent Language - if funding becomes available, funding restored	No Change Eliminated Eliminated Eliminated
Section 147 Public School Retirement Rate	States the estimated payroll contribution rate as 12.16% for FY 2000 - 2001.	Includes an estimated payroll contribution rate for FY 2001 - 2001 at 12.17%	Senate Concurs

Return to Top

Higher Education Budget Agreement Reached

An agreement for a $1.8 billion 2001 - 2002 higher education budget was signed by the conference committee after lawmakers left for the summer. Therefore, the budget will have to be formally approved by the Legislature when they return in the fall. It includes the following:

University Operations Funding	FY 2001 - 2002 Conference Committee	$ IncreasesTD>	% Increases	FY 2002 Appropriations per FYES*
Eastern Michigan	87,637,200	$1,269,670	1.45%	4,727
Michigan State	325,982,300	$4.820,899	1.48%	8,262
U of M - Ann Arbor	363,562,700	$5,364,797	1.48%	9,791
Wayne State	253,644,700	$3,674,641	1.45%	10,983

*Fiscal Year Equated Student

Per Student Funding Floors. Adopted four funding floors: $4,600, $4,800, $5,800, and $9,100 per student. (Eastern Michigan University - 4,600, Michigan State University - 9,100, University of Michigan - Ann Arbor - 9,100, and Wayne State University - 9,100.) Grants and Financial Aid. Increased Michigan Merit Award Program funding by 13.7 percent. Tuition Restraint. Contained no language to restrict tuition and student fee increases set by universities. Tuition Tax Credit. Added contingency language that if tax credit is repealed by the legislature this fall, this additional funding will be put in each universities base appropriations. Senate Bill 371, ( repeal the tuition tax credit) would enable these funds to be used for university operations, is currently on third reading in the Senate. If this bill is passed, public universities will receive an additional $27.5 million and community colleges will receive an additional $5.1 million for operations. PLEASE URGE YOUR LEGISLATORS TO SUPPORT SENATE BILL 371 .

Return to Top

Community College Budget Presented to the Governor

Last month the Conference Committee on House Bill 4253 adopted a budget but did not sign it pending completion of the Higher Education Budget. This bill has now been signed by the committee , approved by the Legislature , and is being presented to the Governor or his approval. Governor Engler still has the authority to veto it in its entirety or on a line-item basis.

Return to Top

Post Retirement Earnings Limit Extension Signed into Law

In 1999, the Public School Employees Retirement Act was amended so that the earnings limit placed on retirees becoming re-employed by a "reporting unit" (a public school, intermediate school district, charter school, community college, etc.) does not apply to post-retirement employment in the case of an emergency situation that necessitates the hiring of a retiree in order to prevent depriving students of an education until July 1, 2002 .

The emergency employment cannot exceed three years , and the retiree is not eligible to use the service or compensation attributable to the post-retirement employment for a recompulation of his or her retirement allowance. Also, there is an earnings limitation placed on the retirant equal to the lesser of one-third of the retiree's FAC or the maximum earnings permitted under the Federal Social Security Act. The emergency exceptions apply only to retirees who retired before July 1, 1999.

Governor Engler signed House Bill 4789 (Allen, R-Traverse City) to become Public Act 30 of 2001. This law will:

extend the scheduled expiration date of these provisions, from July 1, 2002, until July 1, 2006;
make the exceptions apply to retirees who retired on or before July 1, 2000 , rather than on or before July 1, 1999; and
allow administrators and stationary engineers to be hired under an approved emergency situation.

Return to Top

Parental Involvement Contract Legislation Enacted

House Bill 4630 (Kuipers, R-Holland) was signed into law by the Governor. Public Act 29 of 2001 will:

Require the Department of Education, within 90 days after the bill takes effect, to develop and make available to school districts a model parental involvement contract that could be used for these purposes.
Require that model contract to address certain activities of a pupil's parent or guardian, a pupil, and a teacher.
Encourage school districts to develop and implement parental involvement contracts with parents and pupils.
Specify that the contracts should be voluntary and designed to encourage and facilitate a parent's involvement in his or her child's education.

Return to Top

FOIA: Exempt School Directories

House bill 4874 (Representative Stamas, R-Midland) would amend the Freedom of Information Act to allow schools to exempt from disclosure school student directory information . Specifically, the bill would:

allow a school district to exempt from disclosure directory information as defined in the federal Family Educational Rights and Privacy Act;
prohibit directory information from being withheld if a request is made by a "recognized" news organization for the purpose of gathering or preparing news for broadcast or publication; prohibit the withholding of directory information regarding a student who was employed at an institution of higher education if requested by a collective bargaining organization seeking to organize or service a collective bargaining unit ; and
require collective bargaining organizations or units that obtain directory information under this bill to use the information only for collective bargaining purposes and prohibit them from selling the directory information to another person.

House Bill 4874 has passed the House and is currently before the Senate Judiciary Committee. Originally, this bill did not include collective bargaining language. The MFT&SRP and AFL-CIO lobbying efforts lead to inclusion of the organizing and collective bargaining provisions.

MFT&SRP leaders and members are invited to share their experiences and observations as mandated reporters of child abuse and neglect under Michigan's Child Protection Law:

House Sub-Committee on Child Protection
9:30 a.m. to 12:30 p.m.
Wednesday, July 25, 2001
Room 307 House Office Building
Lansing, Michigan

Other Hearings Scheduled for August 16 and 23
For Details Call Representative Lauren Hager (R-Port Huron) at (517) 373-5712

bk:opiue42aflcio

Return to Top

Return to Legislative Hotline

Update:
August 14, 2001