MFT and SRP Michigan Federation of Teachers & School Related Personnel

 

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January, 2003

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February 2003

Higher Education Budget Cuts
Community College Budget Cuts
Alternative K-12 School Aid Budget Cut Introduced
Charter School Legislation Introduced Again
Educational Flexibility & Empowerment Contracts Are Back
WCCC Separation Bill Returns
Lobby Day 2003--Tuesday, March 18

Links to current Legislative Action Alerts
may be found on the Legislative Hotline page of this website.

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Higher Education and Community College Budget Cuts Ordered

On Wednesday, February 19, 2003, Governor Jennifer Granholm submitted to the House and Senate Appropriations Committees her proposal to eliminate the $158.2 million FY 2002-03 General Fund/General Purpose (GF/GP) budget deficit. Details of the cuts contained in Executive Order 2003-3, as approved by the House and Senate Appropriations Committees, are listed below.

Higher Education Budget Cuts Include:

Higher Education (1.5% GF/GP appropriation reduction) . . . . . . . . . . . . . . . $ 25,497,600
Rare Isotope Accelerator (5.0% reduction) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000

Each GF/GP line-item in the Higher Education budget has already been reduced by 2.0% pursuant to Executive Order 2002-22 and Public Act 746 of 2002. The 1.5% reduction contained in Executive Order 2003-3 brings the cumulative total reduction to 3.5%. Listed below are the results of these cuts on MFT&SRP universities.

University Funding Under Act 144, 2002 Funding After 2003 Reduction
Eastern Michigan University 87,637,200 84,569,756
Michigan State University 325,982,300 314,572,583
University of Michigan-Ann Arbor 363,562,700 359,837,633
Wayne State University 253,644,700 244,766,818

Excluded from the 1.5% GF/GP reduction are the Midwest Higher Education Compact dues ($82,500), State Competitive Scholarships ($35,993,486), Tuition Grants ($64,778,121), Work Study Grants ($7,855,475), Part-Time Independent Grants ($2,844,937), and Michigan Education Opportunity Grants ($2,234,692), since the academic year is more than half over and students have already received their financial aid packages.

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Community College Budget Cuts

Community College Budget Cuts

Community Colleges (1.5% GF/GP Appropriations Reduction). . . . . . . . . . . . $ 4,788,100
At-Risk Student Success Program (1.5% GF/GP Appropriations Reduction). . 55,400
Postsecondary Access Student Scholarship . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Actual PASS program expenditures are not expected
to exceed $500,000 of the $700,000 still available.)
1,300,000

The Executive Order reduces community college operational funding and the at-risk program by 1.5%. This brings total year-to-date reductions to 3.5%. MFT&SRP Community College budgets will be cut as follows:

Community College Operational Funding Under Act 161, 2002 Operational Funding After 2003 Reduction At-Risk Funding Under Act 161, 2002 At-Risk Funding After 2003 Reduction
Henry Ford 22,708,494 21,908,642 163,814 158,074
Kirtland 3,058,415 2,947,001 169,343 163,408
Lansing 32,223,042 31,089,806 162,343 157,090
Wayne County 17,223,721 16,616,602 142,398 137,407


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Alternative K-12 School Aid Budget Cut Introduced

Legislators have been struggling to find an "equitable" alternative to the mandated proration of approximately 3.8% across-the-board cut in payments to school districts. The problem is that what seems fair depends on the school district where you live or work. Two bill have been introduced:

Senate Bill 183 (Cropsey, R-DeWitt) would provide for a one-time proration in fiscal year 2002 - 2003 of all noncategorical items for local and intermediate districts and public school academies equal to 0.9443% of total state and local revenue. Also, the bill would allow school districts to designate which unprotected sections they would like the proration reductions to be taken.

Senate Bill 192 (Jelinek, R-Three Oaks) would provide for a one-time proration in fiscal year 2002-2003 of non-protected categorical items equal to $69 per pupil for local school districts and public school academies and a 3.87% proration of non- protected categorical items for intermediate school districts.


Both bills are alternatives to the Section 11 proration language in the School Aid Act. They are extremely controversial as some districts' funding is reduced more or less than the mandated proration. Because of this, the likelihood that either bill will pass both the Senate and House is slim.

If no legislation is adopted, the pro-rata reduction of 3.8% set in current law will go into effect and reductions totaling $127 million will be made in six equal installments to districts' state school aid payments beginning with the March 20, 2003 payment.

Fiscal experts are also predicting a $366 million shortfall for the 2003 - 2004 school aid budget. This will result in an estimated 11% budget reduction for districts next year, unless the Legislature enacts additional revenues.

Come to LOBBY DAY -- MARCH 18!


Personally express your views to legislators on :

School aid payments reduction of an additional 11% in for next year
Higher Education and Community College Budgets for 2003-2004
Education Flexibility and Empowerment Contracts
Community College Boundaries
Charter School Expansion
Retirement and Pension Issues


Lobby Day Information
Online Registration


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Charter School Legislation Introduced Again

House Bill 4148 (Palmer, R-Romeo) would:
  • remove the charter school cap for state public universities;
  • allow statewide chartering agency in the Bay Mills Community College;
  • allow a community college to charter public school academies in Detroit;
  • encourage more oversight by authorizing bodies;
  • allow enrollment priorities for siblings and children of employees;
  • specify how charter schools borrow money and issue bonds,
  • allow legal agreements to finance operations;
  • provide for more disclosure by educational management corporations when they operate public schools and charter schools;
  • extended collective bargaining provisions to ISD chartered schools;
  • assets revert to the state when a charter school closes.
House Bill 4148 is currently before the House Education Committee.

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Educational Flexibility & Empowerment Contracts Are Back

Senate Bill 70 and 71 (Kuipers, R-Holland) would create the "Educational Flexibility and Empowerment Law" within the Revised School Code to permit school districts to apply for an Ed- Flex contract, which would allow the State Superintendent of Public Instruction to waive for a district, for up to five years, State statutes and rules that were part of a performance-based contract with clearly defined and measurable performance goals, or certain Federal requirements in accordance with Federal law allowing educational waivers.

Except for health and safety requirements, any requirement placed on a school district under the state stature or State School Aid Act, or any rule promulgated under the Code or the Act, would be subject to waiver under an Ed-Flex contract.

The Michigan Federation of Teachers and School Related Personnel is opposed to Senate Bills 70 and 71. A Senate Education Committee hearing on these bill was cancelled due to 24 hours of intense lobbying. However, we expect this issue to return to the committee's agenda...

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WCCC Separation Bill Returns

The Michigan Federation of Teachers and School Related Personnel is very concerned about the potential impact of House Bill 4228 (Gaffney, R-Grosse Pointe) on the future of Wayne County Community College. It is identical to House Bill 5157 introduced during the last legislative session. House Bill 4228 proposes that:

  • By majority vote of the electors of a school district, city, village, or township, that entity may separate from Wayne County Community College established under the Community College Act of 1966.

  • The question could be placed on the ballot by resolution of the governing body of the local entity or by a petition signed by at least 500 electors.

  • The separation would become effective on the date of the separation election or the date specified in the resolution or petition.

  • Following the separation, residents in that local entity would no longer be subject to operating taxes levied by the community college district; however, they remain responsible for any outstanding bonded indebtedness until the debt is retired or the bonds refunded.

  • The local entity also is required to purchase any real property belonging to the community college at fair market value within six months following separation.
House Bill 4228 is currently before the House Committee on Higher Education.

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Lobby Day 2003
Tuesday, March 18
LUNCH WITH YOUR LEGISLATORS
FOLLOWED BY
LEGISLATIVE PANEL


Coach Transportation from Detroit Area and Northern Michigan
Make Personal Contact with Legislators on Important Issues
* Education Funding * Class Size
* Charter Schools * Technology
* Privatization * Infrastructure
* Health Care * Adult Education
* Retirement * Part-Time Faculty
* Staff Development * School Readiness
* Affordable Higher Education * Collective Bargaining


ALL MEMBERS WELCOME


REGISTER NOW BY --

Mail: 419 South Washington , Suite 301-B, Lansing, MI 48933
Website: http://mftsrp.org/lobby03.html
E-Mail: mftsrp2@aol.com
Fax: (517) 371-1022
Phone: (517) 371-4300

Lobby Day Information
Online Registration


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Update:
March 1, 2003
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