David Hecker
President

Lois Lofton Doniver Secretary-Treasurer

Louise Somalski
Legislative Coordinator

July 2008

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

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2008-09 School Aid Budget

The Conference Committee has completed work on the 2008-09 School Aid Budget, appropriating $13,378,906,800 to this fund. The Governor is expected to sign this budget in August. Listed below are highlights:

Basic Foundation Allowance. Increases the foundation allowance based on a formula that will give every district an increase of at least $56 per pupil and as high as $112 per pupil. (See chart at end of report.) Sec. 20(1)

MBT Impact on Out of Formula Districts. Includes $1.3 million for districts that do not receive state foundation allowance payments but will see reduced local revenue from school operating taxes due to the property tax exemptions contained in the MBT. Sec. 22e AFT Michigan districts qualifying for this payment include: (House Fiscal Agency)

Small High School Infrastructure Program. Appropriates $15.0 million for start up and implementation grants of up to $3.0 million over 4 years for each newly-configured school with at least an average 75 pupils per grade and not more than 110 pupils per grade. Districts with a graduation rate less than 70% (or PSAs with a majority of students residing in such a district) are eligible. By its third graduating class, a school must achieve a graduation rate of at least 80% as well as have 80% of its graduates enroll in postsecondary studies within 6 months of graduating or must return 50% of its total grant award. Sec. 11n

Kindergarten Membership. Provides that beginning in FY 2009-10 to receive a full foundation allowance for pupils in a developmental or prekindergarten program, the number of class hours will need to match that of grades 1-12. It also provides that by FY 2010-11 to receive a full foundation allowance for kindergarten pupils class, hours must to be at least 60% of the hours required for grades 1-12 and that by FY 2011-12, they must to be 70% of the required hours for grades 1- 12. Sec. 6(4)(r)

District of the First Class. Adds a definition of a District of the First Class as a district with amembership greater than 60,000 in the immediately preceding fiscal year for the purposes of the School Aid Act except for in section 6(6) which still refers to the definition in the Revised School Code. (Section 6(6) prohibits another school district from enrolling pupils from a first class district at an instructional site inside the boundaries of a first class school district without the approval of the first class district.) Sec. 6(11)

Small, Isolated Districts. Maintains current-year funding of $1.3 million for grants to sparsely populated, rural districts. (Districts with five or fewer pupils per square mile, 200 or more square miles or has consolidated transportation with combined 200 or more square miles.) Funds will be distributed on equal per pupil basis - approximately $32 per pupil. Sec. 22dAFT Michigan districts qualifying for this payment include: (House Fiscal Agency)

Pupils Transferring to Detroit Public Schools (DPS) After the Count Day. Amends section to require Detroit Public Schools to bill not later than Dec. 31st of the fiscal year following the year in which the pupil transferred, and allows for payment not later than Oct. 31st of the second 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 the transfer of students between the two schools. Sec. 25c

Declining Enrollment Grants. Maintains funding at current-year levels. Sec. 29

Great Start Communities Grants-ECIC. Increases funding by $5 million for competitive grants awarded to eligible ISDs as determined by the Early Childhood Investment Corporation (ECIC). Sec. 32b

Early Childhood Grants. Maintains current funding levels. Sec. 32c

Great Start Readiness Program - District Grants. Increases funding by $2.5 million to increase the number of at-risk 4-year-olds served by 735 slots and added language prohibiting the supplanting of Federal funds, with per-slot funding remaining at $3,400. Sec. 32d

School Readiness Teacher Qualifications. Retains current law pertaining to teacher credentials in school readiness programs and requiring an effective recruitment and enrolling process. Sections 32l and 37

School Readiness Formula - District Grants. Changes the formula for distribution of the School Readiness district grants to include a hold harmless provision prior to awarding increases in funding. Sec.39

Advanced & Accelerated Grants. Maintains FY 2007-08 appropriation levels. Sec. 57

Precollege Engineering and Science Grants. Maintains current funding for Detroit and Grand Rapids and provides $75,000 each for new programs in Kalamazoo, Huron, Tuscola and Bay- Arenac ISDs. Sec. 65

ISDs General Operations. Increases funding by $809,100 or 1% for ISD general operations. Sec. 81

Center for Educational Performance-CEPI. Provides $2.5 million for the continued development of the longitudinal data collection, management and reporting system to the extent funding is available. CEPI is to coordinate the electronic exchange of student records among K12s and postsecondary institutions. Sec. 94a

Math and Science Centers. Increases Federal funds by $793,300. Sec. 99

Math Remediation Grants. Appropriates $725,000 for pilot grants to mathematics and science centers that are selected by 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.

Assessment Testing Costs. Reduces state funds by $449,600 because of implementation of Public Act 112 of 2008 (HB 5531) and changes boilerplate to require all non-free lunch eligible students to pay for Merit Exam retakes, restrict any Merit Exam writing exams to only the ACT writing test, and require all three WorkKeys components to be administered. Sec. 104

Special Education PSA Students. Clarifies that in the absence of an agreement both the responsibility to provide and pay the added costs of special education services would be that of the resident district and ISD. Sec. 51a(15)

Michigan Virtual University. Adds requirements that MVU work with postsecondary groups to develop an outreach plan with access to online resources designed to increase postsecondary enrollments, and that the MVU provide a report on schools served. Sec. 98

Academic Improvement Grant. Maintains current-year funding of $125,000 to Inkster Public Schools as compensation for having received a reduced foundation allowance due to proration while having had an emergency financial manager in place. This is the third and final year for this funding. Sec. 99e

Adult Education. Allocates $500,000 out of the appropriation for competitive grants to districts who go into prisons to provide GED or high school completion programs. Maintains current law for progress tests. Also adds language allowing Inkster to have a program based on an average of the three most recent fiscal years for which it received funding under this section. Sec. 107

MPSER Retirement Rate. Estimates percentage of payroll districts must allocate for public school employee retirement at 16.54%. Sec.147

Not Included: Funding for Early Childhood Foreign Language Immersion Grants (Sec. 32g); Innovative Programs (Sec. 32h); International Baccalaureate (Sec. 57a); Math Remediation Grants (Sec. 99a); or FIRST Robotics (Sec. 99h).

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2008-09 Higher Education Budget

University Operations. Includes an across-the-board increase of 1% for university operations. Universities represented by AFT Michigan would receive the following Operations appropriations:

Michigan Merit/Promise Grants. Reflects net reduction of $7.8 million for transition from Merit Award Program to new Michigan Promise Grant Program. $90.5 million is appropriated for Program Grant awards to 2007 and 2008 high school graduates; $5.2 million is appropriated for ongoing Merit Awards to high school graduates from prior classes. Estimates cost increase of $60-$80 million/year for Promise Grant awards paid after completion of two years of college will begin in FY 2009-10.

Tuition Incentive Program (TIP). Increases appropriation for projected 19.4% growth in program costs. Program provides financial aid to Medicaid-eligible students subsequently graduating from high school and enrolling in college. Sec. 310

Grants and Financial Aid. Retains funding at FY 2007-08 levels for Tuition Grants, Work Study, Part-time Independent Grants, Michigan Education Opportunity Grants, Byrd Scholarships, Nursing Program, Children of Veterans Tuition Grants, and Gear-Up, including $3.3 million in fund shifts from State restricted revenue to General Fund.

Conflicts of Interest. Adds intent for each university governing board to examine its operations for potential conflicts of interest. Sec. 217

Per Student Floor Funding. Retains $3,775 floor and intent to fund from FY 2007-08 year end balances. Sec. 450

Timely Graduation. Adds new section stating intent that universities limit changes to general graduation requirements during a student's enrollment and provide counseling to facilitate timely graduation. Sec. 471

Receipt of 2007 Delayed Payment. Includes new section stating intent that any university that Increases its tuition rate based on assumption it would not receive delayed August 2007 payment rebate the tuition increase to its students. Sec. 472

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2008-09 Community College Budget

The Governor has signed Senate Bill 1093 to become Public Act 255 of 2008, which appropriates $299,360,500 for the 2008-09 Community College Budget. Listed below are the highlights:

Operations Funding. Provides an overall increase of 2% totaling $5,736,500 GF/GP for community college operations. Funds are distributed based on formula developed by the 2006 performance indicator task force.

At Risk Student Success Program. Maintains current-year funding of $3.3 million to assist academically at-risk students. See chart below:

Renaissance Zones. Increases for projected growth of 15.0% in statutorily-required renaissance zone reimbursements to colleges, which amounts to an increase of $455,000.

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2008-09 Department of Education Budget

The Governor has signed Senate Bill 1096 to become Public Act 212 of 2008, which appropriates $195,143,100 for the 2008-09 Department of Education Budget. Listed below are highlights:

Educational Assessment and Accountability. Provides $117,200 and 1.0 FTE for additional English Language Proficiency Assessment staff and $300,000 to support a best practices study for assessing students with disabilities.

Teacher Tenure Support Staff. Includes $48,300 and 0.5 FTE to help eliminate the backlog in teacher tenure cases.

Teacher Preparation Programs. Provides $100,000 each for Central Michigan University alternative route to certification program and Wayne State University pathways to teaching program. Requires a reporting requirement for the programs including number of teachers certified, time served in the classroom, and teacher evaluations. Adds language directing the department to work with the universities to review the report results to determine subsequent funding strategies.(REVISED) Sec. 503

Cyberschools. Adds new language requiring the Department to report on barriers to the operation of cyberschools for special student populations including dropouts and expelled students. (NEW) Sec. 604

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2008-2009 Foundation Allowances

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