David Hecker
President

Lois Lofton Doniver Secretary-Treasurer

Louise Somalski
Legislative Coordinator

September 2008

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

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AFT Gears up to Oppose "School Vouchers"

Based on available information, Senate Education Committee Chair Senator Wayne Kuipers (R-Holland) is proposing legislation that would allow community groups or corporations to form new schools that would draw from the local community as an alternative to the local school district.

Unlike current charter schools, these "neighborhood schools" would not have a chartering entity approving their operation. It appears to be a plan to put schools in the hands of private entities to run. Reports indicate the proposal would also require local districts to make vacant school buildings available to the new schools. The Senate Education Committee held hearings on September 17 and 24 to discuss the status of urban K-12 education.

AFT Michigan and other education groups are concerned this is really a "Trojan horse" for a voucher/tuition tax credit scheme. This proposal as outlined would allow charter schools to distance themselves from poor achievement data and reinvent themselves as a voucher school along with private and home school groups.

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Flanagan Requests Review of Detroit Schools Finances

On September 17, Mike Flanagan, Superintendent of Public Instruction, requested that a review team be appointed to conduct a more in-depth investigation of the Detroit Public School District's finances. In a letter to Governor Granholm, Flanagan explained that the deficit plan the district approved is not acceptable. He said the district's problems appear to be long-term, with a current deficit of $408 million.

Flanagan noted that the district is not meeting the 2004 agreement that allowed the district to borrow $216.1 million as part of a deficit reduction plan. "Under the Agreement, DPS is required to file a monthly financial report and, while the reports are filed on time, they have consistently failed to reflect the actual financial condition of the district," he said in the letter to Ms. Granholm.

Under law, the Governor has thirty days to appoint a review team consisting of Mr. Flanagan, Treasurer Robert Kleine, Budget Director Bob Emerson, a nominee of the House Speaker, and a nominee of the Senate Majority Leader. The review team has thirty days to issue findings, which can include an agreement that would correct the district's financial problems or a finding of a financial emergency. In the latter case, an emergency financial manager would be appointed for the district.

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Criminal Checks for Sub Bus Drivers/Charter School Expansion

Senate Bill 1252 (Gleason, D-Flushing) would permit the board of a school district, intermediate school district, public school academy, or nonpublic school to use the results of a criminal history check and criminal records check obtained by another district, ISD, PSA, or nonpublic school to confirm that a substitute bus driver did not have any criminal history, if the individual agreed in writing to permit the sharing of that information. This allows the same procedure to substitute bus drivers as has been given to substitute teachers.

A charter school expansion amendment sponsored by Senator Kuipers (R-Holland) was added to this bill on the Senate floor. Currently, charter school law allow a one-year window (expiring December 2008) for PSAs to transfer their pupils and assets without having to disband. This would effectively allow charter schools to expand to high schools and other sites without having to obtain another charter. The floor amendment would repeal the one-year sunset, thus allowing charters the ability to expand indefinitely.

All Democratic Senators plus Senator Roger Kahn (R-Saginaw,) voted against the amended bill. This bill now goes to the House for their consideration.

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MPSERS: Community College Employees

Senate Bill 1450 (Kuipers, R-Holland) would amend the Public School Employees Retirement Act to exclude from the Michigan Public School Employees' Retirement System (MPSERS) a person who becomes employed by a tax-supported community or junior college that has submitted a resolution to withdraw from MPSERS by December 1, 2008.

Under current law, a public school employee is considered to be a member of MPSERS. "Public school employee" means an employee of a public local school district, intermediate school district, public school academy, tax-supported community or junior college, certain universities, or a district library, with some exceptions.

Under the bill, "public school employee" would not include a person who first becomes employed by a qualified tax-supported community or junior college on or after January 1, 2009. "Qualified tax supported community or junior college" would mean a tax-supported community or junior college that has submitted an appropriate resolution to withdraw from the retirement system to the retirement board by December 1, 2008.

Service performed by a person who first becomes employed by a "qualified tax-supported community or junior college" on or after January 1, 2009, would be considered out-of-system public education service. The bill would also remove from the definition of "reporting unit," beginning January 1, 2009, a "qualified tax-supported community or junior college" except to the extent that the college has employees on its payroll who are members of MPSERS.

Testimony on Senate Bill 1450 was heard by the Senate Education Committee on September 24.

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Legislative Commission on Government Efficiency

The Legislative Commission on Government Efficiency has split into nine subgroups to hash out details of how to get to the $1.5 billion to $3 billion in estimated savings the group wants to find in Michigan's Budget. The low estimates are targets and the high figures are the "stretch goal."

The areas are: Corrections ($300 million to $600 million), Medicaid and Community Health ($300 million to $600 million), Local Government and Revenue Sharing ($200 million to $400 million), Employee Benefits ($100 million to $200 million), K-12 Education ($200 million to $400 million), Higher Education ($125 million to $250 million), Interdepartmental Efficiency ($75 million to $150 million), Purchasing and Sourcing ($75 million to $150 million) and Information Technology ($75 million to $150 million).

Education savings are being advertised as coming from areas such as consolidating benefits, consolidating services, changes in retirement, special education services, and prevailing wages.

The full committee will meet on September 26 to review the subgroup findings and make their final recommendations to the Legislature.

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Financial Literacy Course

Senate Bill 834 (Switalski, D-Roseville) (Sub. H-1) would include a course in financial literacy among specific courses that satisfy the math credit requirements under the Michigan Merit Standard Curriculum. The Revised School Code requires a pupil, beginning with those entering 8th grade in 2006, to meet certain requirements before receiving a high school diploma.

The current requirements include the successful completion of at least four credits in math, including at least algebra I, geometry, and algebra II (or an integrated sequence of that course content that consists of three credits), and an additional math credit, such as trigonometry, statistics, pre-calculus, calculus, applied math, accounting, business math, or a retake of algebra II.

Senate Bill 834 would include in the list of additional math credits a course in financial literacy, a math support class, a pre-algebra class, or other math courses approved by the district school board. It also allows for the pupil to complete algebra II over two years with credit awarded for each of those years.

The House passed a substitute to Senate Bill 834 on September 19. The House substitute must now be returned to the Senate for concurrence.

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Personal High School Curriculum

House Bill 6247(Hopgood, D-22) (Sub. H-1) would allow a student who has completed Grade 9 to request a personal curriculum that modifies the Michigan Merit Standard Curriculum. In addition, the bill would allow modification of the high school mathematics requirements to occur after a student has completed, without necessarily having obtained a passing grade, in 1-1/2 credits of math (instead of 2-1/2 credits).

Currently under the law, a student or a student's parent may request a personal curriculum in lieu of the standard high school curriculum, and a high school diploma will be awarded if that alternate curriculum is successfully completed. However, the mathematics credit requirement of the standard curriculum can be modified only after the student has successfully completed at least 2-1/2 credits of the mathematics credits required for high school completion. (The four-credit math requirement includes the successful completion of algebra I, geometry, algebra II, or an integrated sequence of this content, and a fourth year of mathematics taken during the senior year of high school.)

This bill was amended before being reported out of the House Education Committee to require the Department of Education by June 1, 2009, to meet with and solicit input from career and technical education teachers and others with expertise in career and technical education, industrial technology, or vocational education to determine how the curricular math requirements can be met through career and technical education, industrial technology courses, or vocational education or a combination of these.

House Bill 6247 specifies that a teacher, school counselor, or person acting in a counseling role may contact a student's parent or legal guardian to discuss the possibility and potential benefits of a personal curriculum. The bill also adds a teacher at the high school to the group who develops the personal curriculum.

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High School Curriculum Options Explored

House Bill 5943 (Sheltrown, D-West Branch) would provide for an alternative to the Michigan high school graduation requirements. Basically, this bill would allow students to adopt either a college preparatory or career education track.

The House Education Committee heard testimony on House Bill 5943 on September 23. This bill faces stiff opposition from the Michigan Department of Education and the State Chamber of Commerce.

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Income Tax Deduction for Tuition Payment Fund

House Bill 6263 (Corriveau, D-Northville) would allow a taxpayer to take a deduction from taxable income for the amount of a charitable contribution made to the Advance Tuition Payment Fund beginning with the 2008 tax year.

The Tuition Payment Fund was created by the Michigan Education Trust Act and is used to hold payments made by purchasers of advance tuition payment contracts on behalf of qualified beneficiaries of those contracts. (These are prepaid tuition contracts typically purchased on behalf of a child by a parent or relative to cover college tuition. They can be purchased by semester, up to a total of eight semesters.)

Currently, the Income Tax Act allows a state income tax deduction for the purchase price of these prepaid tuition contracts. House Bill 6263 would additionally allow a deduction for a contribution not toward the purchase of specific contract but made to the Tuition Payment Fund in general. This is understood to apply to cases where a donor wants to contribute to a project such as adopting a classroom or a group of students to help pay for their college educations.

House Bill 6263 has passed the House and is currently before the Senate Finance Committee.

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Income Tax Check-Off for School Aid and Higher Education

Under current law, an individual may designate on his or her annual tax return that contributions of $5, $10, or more of his or her State income tax refund (or additional tax liability) be credited to any of the funds specified in the Act. The Department of Treasury must create a schedule of the specified check-offs to be included with an annual income tax return. New check-offs must be incorporated as soon as practical on the schedule, and the Department may discontinue a check-off that fails to raise $100,000 in a tax year for two consecutive years.

Currently, check-offs on the schedule include the Children of Veterans Tuition Grant Program, the Children's Trust Fund, the Prostate Cancer Research Fund, Amanda's Fund for Breast Cancer Prevention and Treatment, the Animal Welfare Fund, and the Michigan Housing and Community Development Fund.

Senate Bill 1479 and Senate Bill 1482(Cassis, R-Novi) would add the State School Aid Fund and State General Fund to the funds listed on the schedule of contribution designations (check-offs) included with a taxpayer's income tax return.

Senate Bills 1480 and 1481 (Cassis, R-Novi) would enact the "Michigan Higher Education Fund Act" and create the "Michigan Higher Education Fund" to supplement appropriations to institutions of higher education. Senate Bill 1481 would add the Michigan Higher Education Fund to the funds listed on the schedule of contribution designations (check-offs) included with a taxpayer's income tax return. The bills are tie-barred to each.

Senate Bills 1479, 1480, 1481, and 1482 have been reported out by the Senate Finance Committee and are currently before the full Senate.

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School Bus Driver Cell Phone Use

Senate Bill 449 (Kahn, R-Saginaw) would amend the Pupil Transportation Act to prohibit a school bus driver from using a cellular phone while the school bus is in motion or at any time when pupils were boarding or exiting it.

A person who violates this provision would be responsible for a civil infraction and could be ordered to pay a maximum civil fine of $100. A civil infraction under the bill would have to be processed in the same manner as a civil infraction under the Michigan Vehicle Code.

Senate Bill 449 was introduced on April 26, 2007, and referred to the Senate Education Committee. The Senate Committee on Energy Policy and Public Utilities discussed Senate Bill 449 at its September 11 hearing on other cell phone bills, however no formal action was taken.

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School Food Purchases Exempt from Competitive Bidding

A package of four bills passed by the House would open the doors for more school districts to consider local options for food. House Bills 6365, 6366, 6367 and 6367 are now before the Senate Agriculture Committee.

House Bill 6365 (Gonzales, D-Flint) and House Bill 6366 (Hansen, R-Hart) would allow school districts, public school academies, and ISDs to make food purchases costing less than $100,000 without formal competitive bids and would update the generally-applicable small purchase threshold amount to $20,102 to reflect the actual current level after previously-made adjustments for inflation.

The small purchase threshold would continue to be adjusted annually for inflation. House Bill 6365 applies to school districts and charter schools. House Bill 6366 applies to intermediate school districts.

House Bill 6367 (Angerer, D-Dundee) would create the "Select Michigan Act" requiring the Department of Agriculture to administer a program to identify and promote farm products grown, processed, or manufactured in Michigan.

House Bill 6368 (Mayes, D-Bay City) would create the "Farm-to-School Procurement Act" to promote the purchase of local farm products by school food programs. The act would be implemented by the Departments of Education and Agriculture under a memorandum of understanding, and the Departments could accept funds from any federal, state, or private source for this purpose.

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Divestment from Terror

A package of divestiture bills prohibiting or discouraging the investment of public funds in companies doing business with countries that are considered "state sponsors of terrorism" became effective July 17, 2008. Each bill includes the Tier I Retirement Plan available under the Public School Employee Retirement Act in the definition of "fiduciary."

The main bill, Senate Bill 846 (PA 234 of 2008) created the "Divestment from Terror Act." House Bill 4854 (PA 233 of 2008) and House Bill 4903 (PA 232 of 2008) amended the Public Employees Retirement System Investment Act to add similar divestment requirements pertaining to Sudan and Iran.

House Bill 5996 (Leland, D-Detroit), House Bill 5997 (Angerer, D-Dundee), House Bill 5998 (Valentine, D-Muskegon), and House Bill 5999 (Meisner, D-Ferndale) amend various statutes to require the State Treasury, the board of the Michigan Strategic Fund, or an Investment fiduciary to comply with the Divestment from Terror Act when making investments under those statues. House Bills 5996, 5997, 5998, and 5999 have been ordered enrolled, but have not been assigned public act numbers.

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Michigan Department of Education Regional Update

The Office of Professional Preparation Services will conduct statewide regional information meetings providing an update of important information on the current status of No Child Left Behind policy and other issues impacting teacher preparation and certification. Recent revisions to elementary and administrator certification and the "Professional Standards for Michigan Teachers," and Early Childhood Standards will also be covered.

Agenda items include:

• No Child Left Behind Issues
• Elementary Certification
• Administrator Certification
• Professional Standards for Michigan Teachers
• Early Childhood Standards

You are invited to attend any session that is convenient. Registration begins at 8:30 a.m., with meetings starting at 9:00 a.m. Staff presentations will be followed by a question and answer period. In order to help plan for refreshments, you are asked to e-mail your attendance to Denise Dickenson at dickensond@michigan.gov by September 30, 2008. There is no registration fee for attendance.

The 2008 schedule is as follows:

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