MFT and SRP Michigan Federation of Teachers & School Related Personnel

 

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2002
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Capitol Report
Email the MFTSRP Legislative office in Lansing at MFTSRP2@aol.com

July 2002

Budget Package Agreement Reached
K-12 FOUNDATION ALLOWANCES
Inkster Report Recommends Financial Manager
Special Education Advisory Committee Membership Increased by Five
Merit Award Scholarship Act Time-Limit Reduced
Campus Sex Crimes Prevention Act

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

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Budget Package Agreement Reached

The struggle to solve the $700 million state budget shortfall over the next two years came to a successful end as the Senate, House, and Governor came to an agreement on a multi-bill package which increases Michigan's cigarette tax and effectively assures a delay in the rollback in the single business tax rate. All bills in this package await the Governor's signature. Listed below are the three major component of the package:
  • House Bill 5248 increases Michigan's tobacco tax by 50 cents per pack, effective August 1, 2002. Of the increase, 20 cents (about $103.7 million) will go to the state School Aid Fund. The remaining 30 cents will go to the general fund, the Healthy Michigan Fund, the Medicaid Benefits Trust Fund, and to Wayne County for indigent health care.


  • Senate Bill 117 lowers the current single business tax trigger from $250 million to $50,000. As part of the deal, the Governor is expected to veto this bill. This means the current law will remain in effect. The single business tax rollback is expected to save $87.3 million for the 2002 - 2003 budget.


  • House Bill 5883 authorizes withdrawals from the Budget Stabilization Fund of $685 million this fiscal year and $245 million in 2002-03, thus delaying the Single Business Tax rate rollback.
House Bill 5881, the Supplemental School Aid Appropriations for fiscal years 2001 - 2002, 2002 - 2003, and 2003 - 2004 also awaits the Governor's signature. Listed below are the highlights of the bill:
  • Maintains basic foundations allowance for FY 2003 and FY 2004 at same levels as current law ($6,700). (See attached chart for your district.)


  • Maintains all FY 2002 and FY 2003 appropriations at the same levels as current law.


  • Creates new FY 2004 appropriations, which are at the same level as FY 2003. (The only exceptions are two one-time appropriations that are not continued to FY 2004.)


  • Starting in FY 2003, appropriates $15 million on a per pupil basis to the Detroit school district as long as the district is operated under the reform board.


  • Adds Upper Peninsula school district as qualifying for declining enrollment grants for FY 2003 only.


  • Requires that if the Revised School Code is amended to require assessments at grade levels in addition to those required under current law, districts must comply with those requirements in order to receive state aid under Sec. 22b.


  • Requires Center for Education Performance and Information (CEPI) to submit a proposal to the Senate and House Appropriations Subcommittees before implementing or changing any data collection processes.


  • Allows expelled 16 to 20 year old students with no appropriate alternative education programs to enroll in adult education courses.


  • Repeals language in the Department of Community Health Budget specifying that Medicaid reimbursements for school based services shall only be made to districts not in default on contracts with vendors providing bill for medicaid school based services.


  • Makes all FY 2004 appropriations continent upon enactment of a 50-cent per-pack increase in the cigarette tax, with 20 cents earmarked for the School Aid Fund.

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K-12 FOUNDATION ALLOWANCES

K-12 FOUNDATION ALLOWANCES
Fiscal Year 2001-2002, 2002-2003, and 2003-2004

County District Name FY 2001-2002
Foundation
Allowance
FY 2002-2003
Foundation
Allowance
FY 2003-2004
Foundation
Allowance

Arenac Arenac Eastern School District $ 6,500* $ 6,700 $ 6,700
Chippewa Rudyard Area Schools $ 6,500* $ 6,700 $ 6,700
Chippewa Whitefish Schools $10,730 $10,930 $10,930
Crawford Crawford Ausable Schools $ 6,500* $ 6,700 $ 6,700
Grand Traverse Kingsley Area School $ 6,500* $ 6,700 $ 6,700
Ingham Lansing Public School District $ 6,905 $ 7,105 $ 7,105
Iosco Hale Area Schools $ 6,500* $ 6,700 $ 6,700
Iosco Tawas Area Schools $ 6,500* $ 6,700 $ 6,700
Lapeer Imlay City Community Schools $ 6,500* $ 6,700 $ 6,700
Leelanau Glen Lake Community School District $ 6,660 $ 6,860 $ 6,860
Mackinac Les Cheneaux Community School District $ 6,940 $ 7,140 $ 7,140
Macomb East Detroit City School District $ 7,200 $ 7,400 $ 7,400
Macomb Roseville Community Schools $ 7,152 $ 7,352 $ 7,352
Macomb Lake Shore Public Schools $ 7,673 $ 7,873 $ 7,873
Macomb Utica Community Schools $ 7,039 $ 7,239 $ 7,239
Macomb Van Dyke Public Schools $ 7,450 $ 7,650 $ 7,650
Macomb Warren Woods Public Schools $ 8,540 $ 8,740 $ 8,740
Midland Midland Public Schools $ 8,216 $ 8,416 $ 8,416
Missaukee Lake City Area School District $ 6,500* $ 6,700 $ 6,700
Oakland Huron Valley Schools $ 6,606 $ 6,806 $ 6,806
Oakland Lamphere Public Schools $10,237 $10,437 $10,437
Oakland Waterford Public Schools $ 6,868 $ 7,068 $ 7,068
Oscoda Fairview Area School District $ 6,500* $ 6,700 $ 6,700
Presque-Isle Onaway Area Community School District $ 6,500* $ 6,700 $ 6,700
Saginaw Chesaning Union Schools $ 6,500* $ 6,700 $ 6,700
Saginaw Hemlock Public School District $ 6,500* $ 6,700 $ 6,700
Sanilac Brown City Community School District $ 6,500* $ 6,700 $ 6,700
Washtenaw Ypsilanti School District $ 7,224 $ 7,424 $ 7,424
Wayne Detroit City School District $ 6,884 $ 7,084 $ 7,084
Wayne Dearborn City School District $ 8,394 $ 8,594 $ 8,594
Wayne Melvindale/North Allen Park Schools $ 8,574 $ 8,774 $ 8,774
Wayne Hamtramck Public Schools $ 6,500* $ 6,700 $ 6,700
Wayne Highland Park City Schools $ 7,174 $ 7,374 $ 7,374
Wayne Inkster City School District $ 7,287 $ 7,487 $ 7,487
Wayne Plymouth-Canton Community Schools $ 6,825 $ 7,025 $ 7,025
Wayne Romulus Community Schools $ 8,450 $ 8,650 $ 8,650
Wayne Taylor School District $ 7,267 $ 7,467 $ 7,467
Wayne Crestwood School District $ 7,046 $ 7,246 $ 7,246
Wayne Ecorse Public School District $ 7,119 $ 7,319 $ 7,319
Wayne Northville Public Schools $ 7,850 $ 8,050 $ 8,050


*Includes equity payment adjusted in per-pupil foundation to bring them up to the $6,500 minimum.


bk:opeiu42aflcio- July 11, 2002
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Inkster Report Recommends Financial Manager

The five-member Inkster Financial Review Team, named on June 13 by Governor John Engler at the request of state Superintendent of Public Instruction Tom Watkins, has determined that the Inkster School District "is experiencing a serious financial emergency." They recommend that Governor Engler appoint an emergency financial manager for the school district.

The Inkster School Board has requested a hearing to contest Mr. Watkins' determination. It was scheduled for July 18, from 1:00 p.m. to 5:00 p.m., in Room 426 of the State Capitol Building in Lansing, Michigan.

An analysis of the district's revenues and expenditures shows that Inkster schools has a negative fund balance by more than $1 million. According to the report, Inkster owed Edison schools nearly $1.7 million through April 30, 2002. The school district also has major internal financial control weakness, including the fact the district has not conducted a bank reconciliation for the past six months.
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Special Education Advisory Committee Membership Increased by Five

House Bill 4990 (Wayne Kuipers, R-Holland) amends Public Act 287 of 1964, to increase the size of the Special Education Advisory Committee by five members, from 27 to 33 appointees, ensuring compliance with Federal law. This bill has been approved by the State Legislature and is awaiting the Governor's Signature.

The Special Education Advisory Committee is required under the Federal Individuals with Disabilities Education Act (IDEA), and functions as an advisor to the State Board of Education in the field of special education.

The Committee's 27 members are appointed by the Board for three-year terms; each member represents a larger interest group who has a stake in the teaching and learning of special education students.

When IDEA was amended in 1997, a new provision required 51% of state special education advisory committee members to be made up of people with disabilities, or their parents. Further, the committees were required to add members who represent charter schools and organizations that provide transition services.
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Merit Award Scholarship Act Time-Limit Reduced

Senate Bill 926 (Schwarz, R-Battle Creek) restricts student eligibility for scholarships to within four years of graduating from high school or passing the general educational development (GED) test. Currently a student has seven years after graduating or passing the GED to apply for the scholarship.

The bill allows a student who became a member of the United States armed forces or the Peace Corps during this four-year period to extend his or her eligibility by a period equal to the number of days served, not to exceed four years. Also, the Merit Award Board could extend the four-year period due to an illness or disability of the student or in the student's immediate family, or another family emergency.

In addition, the bill adds a requirement for eligible students to certify their participation in the scholarship program by September 30 in the academic year in which they would use the scholarship funds. If a student did not certify by September 30, he or she could not receive a scholarship until the following academic year.

This bill expands the reporting requirements of information to the Governor and the Legislature to include the number of graduating high school seniors who met the requirements for a Michigan Merit Award Scholarship.

This change in usage time-limit from seven years four years saves an estimated $12.3 million in Fiscal Year 2002. Senate Bill 926 has passed both houses of the state Legislature and has been ordered enrolled. It now awaits the Governor's Signature to become law.
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Campus Sex Crimes Prevention Act

House Bill 1275 (Hammerstrom, R-Temperance) would amend the Sex Offenders Registration Act to require certain sexual offenders who are employed by or students at institutions of higher education to report their sexual offense status to the law enforcement agency with jurisdiction over the campus.

The bill would take effect October 1, 2002. It would define institution of higher education to mean either a public or private community college, college, or university; or a public or private trade, vocational or occupational school.

The provisions in this bill are necessary to ensure compliance with federal law and to maintain federal formula grant funding. House Bill 1275 has passed the House and Senate and has been ordered enrolled. It now awaits the Governor's signature.

bk:opeiu42aflcio

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Update:
July 13, 2002
© 2002 MFT&SRP