Capitol Report - July 2003

SECTION	CURRENT LAW (BEFORE PRORATION)	CONFERENCE REPORT
Sec. 6 (4) Pupil Membership Blend	A sum of 80% of current September pupil count plus 20% of the previous February count.	Retains current law blend of 80/20.
Sec. 6(4)(y ) Declining Enrollment for Lower Peninsula 1,550 pupils or less & 4.5 pupils per square mile & allow 3 year average of pupil membership	For FY 2003 - 2004, allows small, rural districts located in Lower Peninsula only, to use a 3-year average membership blend if that results in higher membership than the actual current year blend.	Retains current law and includes districts in Upper Peninsula.
Sec. 11 (3) Proration Language	Requires an across-the-board proration when revenues are expected to fall short of appropriations.	Inserts language requiring any proration to be calculated to have districts receive an equal per pupil reduction.
New Sec. 11 (4) Proration Language	NA	New proration language: an equal per dollar amount of proration if necessary, with 95% of the total proration absorbed by local districts and the remaining 5% of the shortfall deducted from intermediate school district payments. Adds provision that entities that are non-school districts also receive a proration. The amount of proration for districts, ISDs and non-districts is proportionate to the total amount of School Aid they receive.
New Section 11a School Aid Stabilization Fund	NA	Establishes the School Aid Stabilization Fund within the School Aid Act. Sets up an automatic transfer to the SAF if expenditures exceed revenues. If there is insufficient funds available in the fund the remaining shortfall will be prorated as stated in section 11 (4).
New Section 11b & 11c Transfer of Federal Funds	NA	Transfers $22,000,000 from the General Fund to the School Aid Stabilization Fund. Transfers $73,100,000 from the General Fund to the School Aid Stabilization Fund if the balance in the General Fund at the end of FY 2003 is at least $350,000,000.
Sec. 20 (l0) School Consolidation Foundation	Foundation allowance for districts that consolidate after June 1, 2002, to be equal to the lesser of $8,000 or the highest foundation allowance among the consolidated districts plus $50.	The new foundation allowance for district that consolidate after June 1, 2002 is a pupil weighted average of the foundation allowance of the original districts not to exceed the state maximum.
Sec. 20 (19) Foundation Allowance Increase for Small Class-Size Grants	$26,7000,000 Increases the foundation allowance of districts that received a grant under former Section 32e for small class-size grants by the per-pupil amount of the small class-size grant in FY 2001 - 2002.	Retains the class-size grant that was rolled into the foundation allowance at 100% of the amount eligible districts received in FY 2002. Adds two flexibility provisions: 1. Reduces class-size in at least one of grades K-3, rather than all grades, and 2. If districts meet AYP, then can apply for waiver to use funds in new manner.
Sec. 20 (20) Foundation Allowance Increase for Districts with a Reform Board	Increases the foundation allowance of a district with a reform board in place by a per-pupil amount sufficient to result in additional revenue to the district of $15,000,000.	Eliminates language that would allocate $15,000,000 on a per-pupil basis to the Detroit School District in FY 2003 - 2004. Veto anticipated to restore funding.
Sec. 24 Court-Placed Pupils	$8,900,000	$8,000,000 Adds new language restricting any new program starting after the count day from receiving funding until all existing programs first receive 100% of the added costs.
Sec. 26a Renaissance Zones Reimbursement	$10,174,000	$25,260,000. Also increases the current-year appropriation by $8,526,000 to $18,700,000.
Sec. 31a At-Risk Funding	$314,200,000	$314,200,000 Allows uses of funds in current law plus tutorial services, early childhood programs for ages 0-5, and reading programs under former Section 32f, and English as a Second Language. If a district meets AYP, it can apply for a waiver to use these funds in a new manner.
Sec. 31d (1) State School Lunch Program	$17,337,200 from the School Aid Fund and $722,300 from the General Fund	$21,300,000 from the appropriation in Sec. 11 to make payments to districts and public school academies. Adds language specifying how non K-12 districts and PSAs shall be paid (to reflect current practice at the MDE). Increases the FY 2003 appropriations by $215,315,000 to $18,315,000.
Sec. 32c Early Childhood Grants	$2,000,000 from General Fund.	$250,000
Sec. 32d School Readiness	$72,600,000 from School Aid Fund and $200,000 from General Fund to operate the Michigan School Readiness Program (MSRP) and $200,000 from the General Fund to continue a longitudinal study of the MSRP.	$72,800,000 Allows districts to use funds for the current school readiness program or for the uses in former Sec. 32b, Parental Involvement and Education (PIE)program. Districts will get formula grants based on current law for school readiness distributions.
New Sec. - 32j ISD Early Literacy & Parent Education	Not Applicable	$3,326,000 to intermediate districts for competitive grants to parents of children age 5 or younger.
Sec. 41 Bilingual Education	$4,212,000	$2,800,000 in state funds. Federal funds are in new Section 41a. Language is added to state that funds shall be used solely for instruction in speaking, reading, writing, or comprehension of English. Also, pupils shall not be instructed or counted under this section for more than three years.
New Sec. 41a Federal Bilingual Program	NA	States that $1,232,100 in federal Language Acquisition State Grant funds is appropriated for the instruction of pupils with limited English-speaking ability.
Sec. 57(1) & (2) Gifted & Talented Programs	$1,000,000 for gifted and talented programs, including $600,000 to ISDs that provide support services for gifted and talented programs and $400,000 for summer institutes.	$50,000 to ISDs for gifted and talented programs. Retains the language for summer institutes, but appropriates $0. Renames "Advanced and Accelerated" programs.
Sec. 57(3) Gifted & Talented Programs Offered by School Districts	$4,000,000 for the development and operation of comprehensive gifted and talented programs.	$200,000 to districts for the development and operation of programs.
Sec. 61a Vocational Education	$31,027,600	$30,000,000
Sec. 62 ISD Vocational Education Millage Equalization	$9,860,000	$9,000,000
Sec. 67/68 Career Preparation	$21,850,000	$1,000,000
Sec. 74 Bus Driver Safety	$1,625,000	$1,625,000
Sec. 81 (1) ISD General Operations	$95,028,100	$91,702,100 Each ISD will receive 96.5% of the FY 2003 funding level.
Sec. 94a Center for Educational Performance and Information (CEPI) & Standards & Poors	$4,500,000 from general funds in FY 1004, of which $2,519,000 is to maintain the contract with Standards and Poors for the development and maintenance of the School Evaluation Services informational web. $2,357,600 in FY 2004 from federal funds.	$1,863,400 in state funds for CEPI, including $1,500,000 for a contract with Standards and Poors. Allows CEPI to bill other departments as necessary to fulfill the reporting requirements of state and federal law.
Sec. 96 Golden Apple Awards	$1,300,000	$0
Sec. 98 Michigan Virtual University	$5,000,000 ($3,500,000 allocated to Wireless Technology Program) $6,584,700 in federal funds	$750,000 in state funding and $2,2500,000 in federal funds, with $1,250,000 earmarked for online professional development. Required MVU to make at least 5 hours as hours of on- line professional development available. Allows districts to have teachers take 5 hours of professional development through MVU, and count those 5 hours as hours as pupil instruction. Adds provision allowing home-schooled or nonpublic students to use the services of MVU without cost (unless cost is assigned to a public school student), if their resident public district subscribes to services at MVU.
New Sec. 98b Freedom to Learn Program (former Learning Without Limits and Wireless Technology)	Not Applicable. ($3,500,000 for Learning Without Limits grants is currently in Section 98)	$22,000,000 from the School Aid Stabilization Fund and $17,343,200 in federal funds, "Freedom to Learn" program. Adds new language that expands a pilot program to purchase wireless technology for all 6th grade pupils.
Sec. 99 Math/Science Centers	$10,232,300 for funding 33 math and science centers throughout the state.	$2,500,000 in state funds and $2,487,700 in federal funds with preference in awarding federal grants to eligible existing centers.
Sec. 99a School Health Curriculum Grants	$3,200,000	$0
New Sec. 101 Days and Hours of Pupil Instruction	N/A	Exempts districts from making up 30 hours of instruction time lost during April 3 through April 11 due to storms. Increases the number of "snow days" from 2 days to 30 hours. Eliminates the 180 days of instruction time requirement and maintains the hours of instruction at 1,098. Retains language stating that 75% of the district's membership must be in attendance in order to count it as a day of instruction.
Sec. 105 (17) - (20) Schools of Choice Guarantee	If fewer than 90% of the pupils living in a local school district attend school in that district, the district foundations allowance payment shall be paid as if exactly 75% were enrolled in the district for 02 - 03, 50% for 03 - 04, and 25% for 04 - 05.	Eliminates
Sec. 107 (1) Adult Education Sec. 107 (3) Allocation of Adult Education Funding	$77,500,000 Allocated funds to districts operating adult education programs based on a formula.	$20,000,000 in state funding and no federal funding Allocated to districts a maximum of 26.6% of the amount they received under this section in FY 2002. Adds provision to forgive future repayments by districts that resulted from pupil audits in adult education and alternative education programs in FYs 2000, 2001, and 2002.
Sec. 108 Adult Learning (PAL)	$20,000,000	$1,000,000
Sec. 147 Public School Employees' Retirement Rate	12.99%	12.99% Adds language specifying that "eligible" districts that do not refinance shall pay 14.37% in estimated retirement contribution rates.

County

District Name

FY 2002
Foundation
Allowance

FY 2003
Foundation
Allowance

FY 2004
Foundation
Allowance

Arenac

Arenac Eastern School District

$ 6,500*

$ 6,700

Chippewa

Rudyard Area Schools

$ 6,500*

$ 6,700

Chippewa

Whitefish Schools

$10,730

$10,930

Crawford

Crawford Ausable Schools

$ 6,500*

$ 6,700

Grand Traverse

Kingsley Area School

$ 6,500*

$ 6,700

Ingham

Lansing Public School District

$ 6,905

$ 7,268

Iosco

Hale Area Schools

$ 6,500*

$ 6,700

Iosco

Tawas Area Schools

$ 6,500*

$ 6,700

Lapeer

Imlay City Community Schools

$ 6,500*

$ 6,700

Leelanau

Glen Lake Community School District

$ 6,660

$ 6,860

Mackinac

Les Cheneaux Community School District

$ 6,940

$ 7,140

Macomb

East Detroit City School District

$ 7,200

$ 7,400

Macomb

Roseville Community Schools

$ 7,152

$ 7,352

Macomb

Lake Shore Public Schools

$ 7,673

$ 7,873

Macomb

Utica Community Schools

$ 7,039

$ 7,239

Macomb

Van Dyke Public Schools

$ 7,450

$ 7,650

Macomb

Warren Woods Public Schools

$ 8,540

$ 8,740

Midland

Midland Public Schools

$ 8,216

$ 8,416

Midland

Windover Enterprise High School

$ 6,800

$ 7,000

Missaukee

Lake City Area School District

$ 6,500*

$ 6,700

Oakland

Huron Valley Schools

$ 6,606

$ 6,806

Oakland

Lamphere Public Schools

$10,237

$10,437

Oakland

Waterford Public Schools

$ 6,868

$ 7,068

Oscoda

Fairview Area School District

$ 6,500*

$ 6,700

Presque-Isle

Onaway Area Community School District

$ 6,500*

$ 6,700

Saginaw

Chesaning Union Schools

$ 6,500*

$ 6,700

Saginaw

Hemlock Public School District

$ 6,500*

$ 6,700

Sanilac

Brown City Community School District

$ 6,500*

$ 6,700

Washtenaw

Ypsilanti School District

$ 7,224

$ 7,424

Wayne

Detroit City School District

$ 6,884

$ 7,179

Wayne

Dearborn City School District

$ 8,394

$ 8,594

Wayne

Melvindale/North Allen Park Schools

$ 8,574

$ 8,774

Wayne

Hamtramck Public Schools

$ 6,500*

$ 6,700

Wayne

Highland Park City Schools

$ 7,174

$ 7,374

Wayne

Inkster City School District

$ 7,287

$ 7,487

Wayne

Plymouth-Canton Community Schools

$ 6,825

$ 7,025

Wayne

Romulus Community Schools

$ 8,450

$ 8,650

Wayne

Taylor School District

$ 7,267

$ 7,632

Wayne

Crestwood School District

$ 7,046

$ 7,246

Wayne

Ecorse Public School District

$ 7,119

$ 7,319

Wayne

Northville Public Schools

$ 7,850

$ 8,050

College

FY 2003
Current Law

FY 2004
Conference Committee

Change From
Current Year

GF/GP

$1,741,466,933

$1,632,687,000

-6.2%

All Funds

$1,831,501,735

$1,789,837,000

-2.3%

Eastern Michigan

$84,569,756

$78,873,300

-6.7%

Michigan State

$314,572,583

$293,383,700

-6.7%

U of M - AA

$350,837,633

$327,206,100

-6.7%

U of M - Dearborn

$27,013,503

$25,193,900

-6.7%

U of M - Flint

$23,225,711

$21,661,300

-6.7%

Wayne State

$244,766,818

$228,279,900

-6.7%

Community
College

2002 - 2003
Year-to-Date

FY 2003
Supplemental

FY 2004
Conference Committee

Change From
Current Year

All Funds

$309,808,094

$1,077,700

$289,013,100

-6.71%

Henry Ford

$21,912,770

$77,600

$20,436,700

-6.74%

Kirtland

$2,951,218

$10,400

$2,752,400

-6.74%

Lansing

$31,093,928

$110,100

$28,999,400

-6.74%

Wayne County

$16,620,124

$58,800

$15,050,600

-9.44%

Community
College

2002 - 2003
Current Law

FY 2004
Conference Committee

Change From
Current Year

Henry Ford

$163,814

$146,500

-10.6%

Kirtland

$169,343

$146,600

-13.4%

Lansing

$162,796

$147,600

-9.3%

Wayne County

$142,389

$129,500

-9.1%