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Deadline Nears for 2005 - 2006 Budget Approval

As the final days of the 2005 fiscal year approach, legislators and the governor's office are working feverishly ironing out details and fly specking documents. The Governor must sign all budgets by September 30, as the new fiscal year begins October 1.

The state budgets appropriate $8.977 billion in general funds and $12.46 billion in school aid. The final agreement contains no tax or fee increases and was balanced using a combination of $235.5 million in land sales, fund shifts, and increased tax collections. With the exception of education, virtually all departments will see cuts.

Details of individual education budgets follow with the Higher Education, Community College, and Department of Education Budgets lumped into an omnibus bill, House Bill 4831, and the School Aid Budget contained in House Bill 4887.

We know this is not sufficient funding for education. To remedy this, please sign the K-16 petition to guarantee K-16 funding. The petitions were mailed to all local presidents. If you need more petitions or additional information, please contact Julie Matuzak at (313) 393-2200 or by e-mail at jmatuzak@aftmichigan.org. Return these petitions to our Detroit Office as soon as possible.

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FY 2005-06 School Aid Budget - HB 4887

The School Aid budget makes appropriations to the state's 552 local school districts, 216 public school academies, and 57 intermediate school districts for operations and certain categorical programs. It also appropriates funds to the Center for Education Performance, Department of Labor and Economic Growth, and other entities to implement certain grants and other programs related to K-12 education.

Highlights of the School Aid Budget are listed below:

Foundation Allowance. Increases the FY 2005-06 foundation allowance for all school districts by $175 per pupil to $6,875 but does not include the $50 per high school pupil grants. Sec. 22b

Reform Board Allocation. Eliminates funding of $15.0 million for the Detroit Public School District with a reform board in place. Sec. 20 (20)

Detroit Transition Grant. Adds a new section to make a one-time grant of $7.0 million to the Detroit Public Schools to aid in their transition back to an elected school board. Sec 33

Lending Library. Adds new funding of $250,000 to provide for a lending library to be located at Central Michigan University to provide special education assessment tools to districts and ISDs. Sec. 54a

Freedom to Learn. Reduces funding for 6th grade student laptop program to $500,000 state funding and $5.5 million in federal funds, of which $3.0 is from carryforward funding. Sec. 98b

Engineering Michigan's Future. Appropriates $3,850,000 to ISDs on a equal per-constituent pupil basis, estimated to equal $10 per student for each student in grades 6 through 8. Funds shall be used to improve pupil performance on the MEAP mathematics assessments and to help districts meet AYP requirement for mathematics. Sec. 99b

Court-Placed Pupils. Adds new language which phases in, over four years, the funding recommendations of the Court-Placed Pupils Task Force. The payment method changes from an added cost basis to a per-pupil allocation. Sec. 24

School Readiness Program. Retains current language allowing School Readiness funds to be used for preschool and parenting programs previously funded under former Sec. 32b. Adds new language that restricts administrative funding to not more than 10% of the total grant. Sec. 32d

Priority of School Readiness Funding. Eliminates the provision giving funding priority to districts with more than 50 eligible children, except over those that have received funding in one of the two immediately preceding fiscal years. Sec. 39(2)

Adult Education. Increases funding by $1,000,000 to a total of $21,000,000. Adds language to allow a district that formerly had a financial manager in place (Inkster) to receive adult education funding. Sec. 107

Pilot Adult Learning Program. Eliminates the pilot adult learning program. Current law Sec. 107b

Public School Employees' Retirement Rate. Estimates FY 2005-06 retirement rate is 16.34%, up from 14.87% in FY 2004-05. Sec. 147

Developmental Kindergarten. Adds intent language stating that beginning in FY 2006-07, payments for developmental kindergarten pupils will be paid on an actual cost basis. Sec. 6(4)(r)

Expelled Students. Adds new language allowing an expelled student to be counted in membership if the student returns to school within 45 days of the count day. Sec. 6(7)

At-Risk Funding. Maintains current-law funding. Changes from 10% to 15% the amount of At- Risk funds that may be used for providing school security. Sec. 31a

Full-Day School Readiness Programs. Adds new language allowing districts to use their original funding level to provide either a half-day or full-day program, or some combination of the two programs, but will not receive additional dollars for running the full-day program. Sec. 39(6)

Advanced and Accelerated. Changes the current program to a grant program allowing ISDs to apply for $5,000 grants for summer institutes. ISDs may form consortia to run the program. Sec. 57

Center for Educational Performance and Information (CEPI). Adds new language directing CEPI to develop and implement a comprehensive K-12 student tracking system. Also, adds language to allow CEPI to enter into agreements to develop custom data analyses, and other reporting to outside departments, state agencies, local units of government, and outside organizations, and to charge for such services. Sec. 94a(8), (9) and (11)

Michigan Virtual University (MVU). Eliminates language which states that the Department of Education may operate the Virtual High School (MVHS) or other functions of MVU if MVU ceases to operate. Also, the MVU is charged with examining math and science curricular needs, developing online courses, evaluate existing practices, and developing a web-based practice MEAP assessment for grades 3-8. Sec. 98

Michigan Virtual High School. Increases funding by $1,000,000 for operations and increases the federal Title II funds by $1,000,000 to support e-learning and virtual school initiatives contained in the U.S. National Educational Technology Plan. Sec. 98

Math and Science Centers. Increases funding to $874,700. Sec. 99a

Days and Hours. Allows for a department-approved alternative education program to maintain at least 50% daily attendance and not be penalized under a three-year pilot study. Sec. 101

Schools of Choice. Adds a provision to both sections which allow a district enrolling pupil under schools of choice guidelines to refuse to enroll a pupil convicted of a felony. Sec. 105 and 105c

Hold-Harmless Districts. Continues funding at current-law level to districts above the hold- harmless cap reflecting the difference between inflationary increase and actual dollar increase given in the basic foundation allowance. Sec. 20j

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FY 2005-06 Higher Education Budget - HB 4831

All 15 of Michigan's four-year universities will see increases for the 2005-06 budget from the base funding levels used for the current year under the approved bill. Increases range from a low of .2 percent to as 7.5 percent.

Highlights of the conference report include the following:

State Competitive Scholarships. Reduces Federal funds to reflect the expected FY 2005-06 Federal contribution of $2.0 million; total funding will be $34.6 million.

University Operations. Includes $2.5 million across-the-board for each university and $6.9 million each for the Senate funding floor and the House funding model.

Funding Model Calculations. Adds description of enrollment, degree, and research components (Sec. 418) and modified payment schedule to conform with model. Sec. 212

National Charter Schools Institute. Retains the $500,000 funding for this program operated by Central Michigan University.

King-Chavez-Parks Initiative. Retains the FY 2004-05 KCP structure and $5.2 million in funding. Secs. 501-507

Michigan Tuition Grants. Reduces funding for this program by $3.0 million and uses $4.0 million in FY 2004-05 carryforward funds as a replacement for GF/GP.

Tuition Grants. Includes application deadlines of July 15, 2005, July 1, 2006, & June 15, 2007, and guarantee of no less than a $2,000 award. Sec. 302

Work Study, Part-time Independent, and Education Opportunity Grants. Retains funding for these programs at FY 2004-05 level of $12.1 million.

Michigan Merit Awards. If no policy changes other than eliminating out-of-state awards are adopted, it estimates that funding of $126.4 million will be required for FY 2005-06.

Tuition Incentive Program (TIP). Increases funding by $1.75 million due to caseload, for a total of $12.0 million.

Tuition Tax Credit. Retains notification requirement. Sec. 214

Tuition Restraint. Pursuant to Executive Order 2005-7, adds legislative intent that if a university increases resident undergraduate tuition and required fees, then that university shall increase student financial aid expenditures by at least the same percentage; report required by November 15, 2005. Sec. 436

Michigan Public School Employees Retirement System (MPSERS). Retains legislative intent to provide a subsidy for the MPSERS contribution rate with an amount of $3.96 million. Sec. 437

State Competitive Scholarships. Excludes veterans' benefits from eligibility determination. Sec. 301(5)

Nursing Scholarship and Grant Programs. Allows for both to be funded. Sec. 312

Collegiate Employment Research Institute. Deletes program. Sec. 406

Per-Student Floor Funding. Uses per-student funding floor of $3,650 for FY 2005-06. Sec. 450

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FY 2005-06 Community College Budget - HB 4831

The Community College budget includes funds for the operation of the state's 28 community colleges, the At-Risk Student Success Program, and renaissance zone tax reimbursement to the colleges. Community colleges also receive operating revenue from local property tax revenue and student tuition and fees.

Highlights of the Community College Budget are listed below:

At Risk Student Success Program. Appropriates continuation-level funding of $3,322,700 for this categorical grant program designed to address the special needs of at-risk students. Funds are distributed based on the proportion of developmental and preparatory contact hours provided by each college.

Operations. Appropriates continuation-level support for college operations from the current FY 2004-05 base amount which includes the 1.8% across the board reduction to college operations approved in Executive Order 2005-07.

Tuition Restraint. Does not contain any form of tuition restraint for community colleges for FY 2005-06. Consequently, current-year language that describes the program's parameters was removed. Sec. 207

Entrepreneurship Curriculum. Retains existing language encouraging the Department of Labor and Economic Growth to work with colleges to develop an accelerated entrepreneurship curriculum and adds a reporting section. Sec. 208

Abortion Coverage in Employee Health Insurance. Retains current language that prohibits the use of State funds for health insurance that includes abortion services for college employees. Sec. 230

Benefits for Unmarried Partners. Retains current language that prohibits the use of State appropriations to provide benefits to unmarried partners of college employees. Sec. 231

Performance Indicators Task Force. Adds new language that creates a 8-member (4 legislators, 4 community college representatives) workgroup to develop performance indicators that will be used to determine all, or part, of future budgets for community colleges. Sec. 242

Nursing Education Programs. Includes new language encouraging colleges to expand nursing education programs by creating partnerships with health care providers, expanding the scope of the nursing scholarships program and redirecting existing resources. Sec. 241

Parity Intent Language. Includes new language stating legislative intent that if there is additional FY 2005-06 revenues determined at the January 2006 consensus revenue estimating conference, the legislature will review the possibility of providing an increase of up to $3.2 million for community colleges. Sec. 243

Community College operations funds remain at current-law levels as indicated below.

*Adjusted appropriation includes reduction after E.O. 2005-07, but does not include the May Revenue Estimating restoration of $2,705,800

# Does not include revenue colleges may receive from revenue that may be available at the State's FY 2004-05 book closing, and should recognize this revenue in the college's 2005-06 fiscal year.

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FY 2005-06 Dept. of Education Budget - HB 4831

Highlights of the Department of Education Budget are listed below:

National Governor's Association Grant. Includes a $1,000,000 private grant to fund costs associated with updating the high school grade level content expectations. ($1,000,000)

National Board Certification Grants (NBCG) and Alternative Route to Certification (ARC) at CMU. Discontinues NBCG, retains ARC, and implements a new $100,000 competitive grant program for higher education institutions to provide professional development or enhanced curricula in mathematics.

Best Practices Study. Includes a section earmarking $350,000 to the State Board of Education to undertake a study and advise the Legislature and Governor on local, state, and national education best practices in education. Sec. 303

Teacher Preparation Programs. Retains a section providing $75,000 for Central Michigan University's Alternative Route to Certification program, and eliminate the $75,000 for Wayne State University's Limited License to Instruct program. Sec. 503 ($75,000)

Middle School Math Project. Includes a section providing two $50,000 competitive grants to universities or the Michigan Virtual High School for the provision of professional development or enhanced curricula in middle school mathematics. Sec. 703

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School Start After Labor Day

House Bill 4803, requiring schools to wait until after Labor Day to begin their school year, has passed both houses of the legislature. Business representatives, mostly from tourist-reliant entities, believe what is good for them will wind up benefitting schools. School officials and education organizations, including AFT Michigan remain opposed to this legislation since it could hurt preparation for statewide tests given in October and because local school districts should control their own calendars.

The bill as presented would:

• Require the board of a school district or ISD or the board of directors of a PSA to ensure that pupils are not required to begin a school year before Labor Day, which would mean the first Monday in September.
• Allow for professional development days to be scheduled prior to Labor Day.


• Not apply to any school district, ISD, or public school academy under a collective bargaining agreement that conflicted with this requirement on the bill's effective date until the agreement expires.


• Not apply to any school district, ISD, or PSA operating a year-round school or program on the bill's effective date.


• Allow any school district, ISD, or PSA that begins operating a year-round school or program after the bill's effective date to apply to the Superintendent of Public Instruction for a waiver from the requirement.

It is unclear whether Governor Granholm will sign the bill. Her spokesperson said recently she is more favorably disposed to the measure than earlier and wants to review the final bill before signing. If you are unhappy with this piece of legislation, you need to immediately contact the Governor's office requesting a veto. Listed below are the Governor's address and phone and fax numbers.

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School Counselors' Tenure Rule Enacted

As reported in our May 2005 Capitol Report, the AFT Michigan has been working with various legislators and the Michigan Department of Education to develop an administrative rule to restore the ability of school guidance counselors who hold any Michigan teaching certificate with a school guidance counselor endorsement to earn teacher tenure. This provision was inadvertently taken away by passage of Public Act 288 of 2000.

The following administrative rule was filed with the Secretary of State and became effective on September 23, 2005.

R 390.661 Certification of teachers under teachers' tenure act.

Rule 1. (1) For the purposes of teacher tenure under the provisions of article II of 1937 P A 4, MCL 38.81 to 38.84, "certificated," as it refers to teachers, shall include any teacher who holds a Michigan teaching certificate, as defined by R 390.1101, which is valid for the position to which he or she is assigned, or any teacher employed in a school guidance counselor position holding any Michigan teaching certificate with a school guidance counselor endorsement, but shall not include nondegreed persons who hold special certificates as teachers or teacher aides in training in experimental programs.

(2) For the purposes of article III of 1937 PA 4, MCL 38.91 to 38.92, "certificated" shall include any teacher who holds a Michigan teaching certificate as defined by R 390.1101, but shall not include nondegreed persons who hold special certificates as teachers or teacher aides in training in experimental programs.

We will now start the process of establishing tenure retroactivity for certified counselors.

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