David Hecker
President

Lois Lofton Doniver Secretary-Treasurer

Louise Somalski
Legislative Coordinator

February 2008

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

Mark Your Calendar! Lobby Day - April 22, 2008

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2008-09 Executive Education Budgets

Each year the legislative budget process starts with the Governor's proposal for appropriations to all departments in state government. Budget bill initiation is then equally divided between the House and Senate. This year all education budgets will start in the Senate. The Senate's goal is to have these budgets through their chamber by mid-April. Education funding bills will then travel to the House for their consideration.

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2008-09 Executive School Aid Budget

The Governor's proposal for the fiscal year 2009 School Aid Budget contains $13.5 billion, $11.9 billion of state funds and nearly $1.6 billion of federal funds. In addition, schools are estimated to receive nearly $4.1 billion from local property tax revenues.

Foundation Allowance. Proposes to increase per-pupil funding by at least $108 and up to $216, with the smallest increase provided to districts above $8,433 in the current year, and the largest to those at $7,204. Districts in between would receive an increase between $108 and $216, depending on their foundation allowances. Sec. 20

Kindergarten Membership. Proposes language that states, beginning in FY 2009-2010, in order to qualify for full per-pupil funding for children in kindergarten, the program must be full-day. Current law provides full funding for either a half-day or full-day program. Sec. 6

Reduction in Per-Pupil Increases for High School Grades Not Offered. Includes reduction in foundation allowances for schools not offering grades 9 - 12. For each high school grade not offered, the proposed foundation allowance increase would be reduced by 7.5%. Sec. 20(22)

Declining Enrollment. Maintains appropriations at the 2007-08 level of $20,000,000. Sec. 29

At-Risk Funding. Maintains appropriations at the 2007-08 level of $321,350,000. Sec. 31a

School Readiness Program. Proposes an increase of $24.0 million ($2.0 million in GF/GP) to expand the number of at-risk four-year-olds serviced by approximately 7,000. Sec. 32d

FY 2007-08 Hold Harmless for MSRP. Appropriates $4,700,000 in FY 2007-08 to ensure districts receive at least what was received in FY 2006-07 for MSRP. NEW - Sec. 32e

Great Start Innovative Grants. Appropriates $2,500,000 for FY 2008-09 to ISDs to identify practices that provide children ages 0-5 with quality early learning experiences that promote school readiness. NEW - Sec. 32h

Great Start Readiness Competitive Grants. Appropriates $14,650,000 for FY 2008-09. The additional funding is to increase the number of children served by the program. Changes proposed for defining teachers qualified to teach in the program. Sec. 321

MSRP Per Pupil Allocation. Proposes a three-tier formula. Step l: fund the lesser of children in need (calculated in Section 38) or capacity. Step 2: ensure districts receive at least prior year funding. Step 3: distribute remaining funds. Caps a new program at 32 children. Sec. 39

ISD Operational Funding. Increases funding for ISD operations to $83,812,000. ISD would receive a 1.2% increase in basic funding, and the remaining $1,929,000 would be for ISDs to collaborate with the Department to strengthen curriculum and instruction related to the Michigan Merit Curriculum in high schools not achieving AYP. Sec. 81

21st Century Fund. Authorizes $300 million in bond revenues to help districts replace high schools with over 800 pupils that have not made Adequate Yearly Progress for two years and high dropout rates with small high schools that use strong personal relationships, consistent discipline, and real-world relevance to help at-risk students achieve high academic goals. Related debt-service costs of $32 million are appropriated. NEW - Sec. 11n

Center for Educational Performance and Information (CEPI). Appropriates $6,755,400 from GF/GP in FY 2008-09. Adds a requirement that the CEPI coordinate the electronic exchange of students among K-12s and postsecondary institutions. Appropriates 1,793,200 in FY 2008-09 from Federal funds. Sec. 94A

Adult Education. Continues the current $24,000,000 appropriation into FY 2008-09. Requires a funded program to determine educational gain by testing participants before enrollment and at the end of the instructional period or program year using assessment instruments approved by the Department. Sec. 107

Michigan Public School Employees Retirement System Rates. Reduces the contribution rate from 16.72% in the current year to 16.54% in fiscal year 2008-09. Sec. 147

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2008-09 Executive Higher Education and Financial Aid Budget

The Governor's proposal for the fiscal 2009 Higher Education Budget contains $1.8 billion for Michigan's fifteen public universities. Listed below are some of the highlights of the 2009 Executive Higher Education Budget.

State University Operations. Increases by an overall 3% totaling $43.6 million. All fifteen state-funded universities will receive increased funding distributed on an incentive-based formula of degree completion, federal research expenditures, and opportunities for low-income student enrollment. The formula for the three research universities - University of Michigan, Michigan State University, and Wayne State University - will place a greater emphasis on research and commercialization activities. This formula will lead to increases in university operations ranging from 2.3% to 6.2%.

Tuition Restraint Language. Includes new boilerplate language stating the expectation that each state university will limit FY 2008-09 resident undergraduate tuition and required fee increase to inflationary level of 2.3 percent. Sec. 436.

Michigan Promise Grant Program. Recommends $90.5 million for Michigan Promise Grants for students from the graduating classes of 2007 and 2008.

Michigan Merit Award Program. Recommends an additional $5.2 million for students from previous classes eligible for Michigan Merit Awards.

Tuition Incentive Program (TIP). Increases funding by $4.1 million to $25.2 million to fund increasing numbers of TIP recipients and higher tuition costs.

Other Student Financial Aid Programs. Retains current funding of $114 million for state competitive scholarships, tuition grants, Michigan work-study, nursing scholarships, and other student financial aid programs.

Tuition Grants. Maintains at FY 2007-08 level of $56.7 million. Offsets $1.4 million in one-time carry forward fund with GF/FP.

Project GEAR UP. Continues current funding of $3,000,000 to target student scholarships in three urban school systems: Detroit, Flint, and Muskegon. The mission of the Federal "Gaining Early Awareness and Readiness for Undergraduate Programs" is to increase the number of low-income students prepared to succeed in postsecondary education.

Capital Outlay. Funds building and renovation projects at 10 university projects at a cost to the state of $315 million ($771 million with the university match).

Universities represented by AFT Michigan would receive the following Operations appropriations:

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2008-09 Executive Community College Budget

The Governor's proposal for the fiscal year 2009 Community College Budget contains $302.2 million for Michigan's twenty-eight community colleges. Listed below are some of the highlights of the 2009 Executive Community College Budget.

Operations Funding. Increases by 3% to $295.4 million. Funds are distributed using the funding formula developed by the Performance Indicators Task Force which considers enrollment and completion rates. Individual college increases range from 2.4% to 3.9%.

Community Colleges representative by AFT Michigan would receive the following Operational appropriations:

At Risk Student Success Program. Maintains $3.3 million in funding to assist academically at-risk students. Sec. 401. (1)

Community Colleges representative by AFT Michigan would receive the following At-Risk appropriations:

Renaissance Zones. Provides $3.5 million to reimburse colleges that lose property tax revenue as a result of the establishment of Renaissance Zones.

Capital Outlay. Funds 15 community college building and renovation projects at a cost of $105 million to the state ($210 million with the college match).

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Governor Signs Driver's License Bill

Governor Jennifer Granholm signed Public Act 7 of 2008 into law on February 15 restoring the ability of all legal residents to obtain drivers' licenses. The legislation will allow foreign citizens living in Michigan temporarily and lawfully to obtain a driver's license, but prevent illegal immigrants from obtaining one.

Public Act 7 resolves a misinterpretation by the Secretary of State of the Attorney General's opinion. There are approximately 400,000 foreign business people, students, and their families currently in Michigan.

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Taylor Awarded Healthy Kids Grant

The Taylor school district was recently awarded a $25,000 Healthy Kids, Healthy Michigan mini-grant by the Department of Community Health (DCH) to establish a nutrition and physical activity policy to help reduce childhood obesity.

The grant was made possible when Governor Granholm received a one-year, $100,000 grant from the National Governor's Association through the Healthy Kids, Healthy America program. The program is designed to provide the nation's governors with the opportunity and means to reduce childhood obesity in schools and communities in their state.

During the past four decades, obesity rates have soared among all age groups, more than quadrupling among children ages 6 to 11. Due to obesity, it is estimated that one in three children born in the United States in 2000 will develop Type 2 diabetes at some point in their lives - a 30 percent increase in risk for boys and 40 percent increase for girls.

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House Holds Hearing on All-Day Kindergarten

House Bill 4662 (V. Smith, D-7) would require Michigan school districts to provide all-day kindergarten and would change the required school attendance age from six to five years of age. Current law requires all school districts to maintain a kindergarten program, but this bill would make kindergarten mandatory in 2009 and ALL-DAY kindergarten mandatory beginning with the 2011 - 2012 school year.

The House Education Committee held a hearing on House Bill 4662 on February 19. We would like to thank Virginia Cantrell, President of the Detroit Federation of Teachers, and Dara Knill, Past President of the East Detroit Federation of Teachers, for traveling to Lansing and providing extensive testimony at this hearing.

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Think B4 You Ink!

The following section outlines several of the proposals that may appear on the November ballot. All would have huge ramifications for the future of our state. Look for more information in future issues of the Capitol Report. Each committee must collect over 400,000 signatures between now and the July filing deadline for their proposal to qualify for the November ballot.

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Two Part-Time Legislature Petitions Being Circulated

The Part-Time Legislature Ballot Question Committee began circulating petitions in January to limit legislators' time in session. Their ballot proposal would allow the chambers to be in session only from the second Wednesday in March through July 1. If needed, the Governor could call them back for another 20 days each year.

Under their proposal, legislators would have their pay cut to $40,000. They would be able to increase that at a special session running from the second Wednesday in October through November 1 of each even-numbered year. Legislators' pay would be docked for not attending session and they would not be eligible for retirement pay or healthcare benefits.

The Committee To Turn Michigan Around (supported by Representative Hoogendyk, R-Portage) began circulating their petitions in mid-February to put their part-time ballot proposal on the November ballot. Their proposal calls for elimination of the current term limits.

Under their proposal the legislature would be allowed only 100 regular session days each year concluding by May 31. Their proposal would allow 15 special session days called by agreement between the Governor, House Speaker and Senate Majority Leader.

Their plan would also eliminate any lifetime benefits and would cut legislative pay, as well as taking the authority for legislative pay out of the hands of legislators. Instead, their pay would be reduced to 80 percent of the median household income and would reimburse only for documented expenses. Legislators' pay would be docked for not attending session.

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Two Tax Proposals Seeking Spot on Ballot

The People's Choice Tax Repeal Ballot Question Committee is circulating a petition that would automatically add any tax or fee increases since May 1, 2007 to the general election ballot every two years. If the increase is rejected, it would be repealed at the end of the then-current fiscal year. This proposed constitutional amendment would also make it easier to subject other legislation to referendum by eliminating some of the technical reasons for rejecting signatures. Among other changes, the proposal would require acceptance of one signature if a person signs multiple times, would allow misdated signatures and would allow the person to omit their city/village/township of residence. Petitions would be able to be printed on letter-sized paper.

The Michigan Fair Tax Proposal Committee (supported by Representative Sheen, R-Plainwell) proposes a constitutional amendment that would replace three of the state's major taxes with a sales tax. It would replace Michigan's Income Tax of 4.35% , Michigan's Business Tax, and the state personal and real taxes on business property for school funding with a 9.5% sales tax. The tax would be charged on all consumer purchases of goods and services, including food and medicines, but not business to business transactions. Under their proposal, no other statewide tax could be restored, or enacted, or the sales tax rate increased without a vote of the people. The state would remit to every household an amount based on the Federal Poverty Level Guidelines.

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School Vouchers Ballot Proposal Approved

The Personal Education Account Committee proposes a constitutional amendment to require the state legislature to provide every Michigan resident ages 4 to 18 with per pupil education funding. These vouchers would be controlled by the parent(s) or legal guardian(s) to send their children to a public or private school.

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Senate Restructuring Ballot Proposal Approved

The Proportional Senate Committee proposes to amends the state constitution to stipulate that the State Senate would consist of 50 members to be elected off of candidate lists at large from the statewide election.

Lobby Day 2008 - Tuesday, April 22 Download Registration Form or Register On-Line

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