Capitol Report Archives
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February, 2003
January, 2003
2002
2001
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March 2003
Lobby Day Getting Bigger and Better Every Year
Charter School Expansion Bill Moves to the Senate
Psychotropic Drug Bill Moving Through the Legislature
Governor's School Aid Budget Proposal
Governor's Higher Education and Financial Aid Budget - Fiscal Year 2004
Higher Education Financial Aid Changes
Higher Education Budget Highlights
Community Colleges Budget Highlights
Foundation Allowance Chart
Links to current Legislative Action Alerts
may be found on the Legislative Hotline page of this website.
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Lobby Day Getting Bigger and Better Every Year
We would like to thank our members for attending Lobby Day 2003. It was huge success because of you. We had 197 members representing 37 locals and 81 legislators registered to attend this year. A special surprise guest, Governor Jennifer Granholm, assured our members that public education is her top budget priority for 2003 - 2004.
After a highly inspirational presentation by MFT&SRP President, David Hecker, $1,100 was collected from those present for the MFT&SRP PAC Fund. We appreciate your generosity and please know this money will be well spent to support legislators who assist our efforts to improve education in Michigan.
We appreciate the comments made on the evaluation forms. There were many good ideas and we will try to incorporate as many as we can in next year's program.
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Charter School Expansion Bill Moves to the Senate
House Bill 4841 (Sub. H-8) was reported out by the House Education Committee on March 19 and was narrowly passed on the floor of the House on March 20 by a vote of 56 to 51. All House Democrats voted "no", joined by six Republicans: Representatives Bruce Caswell (Hillsdale), Lauren Hager (Port Huron Township), Charlie LaSata (St. Joseph), Mike Pumford (Newaygo), John Stewart (Plymouth), and Gary Woronchak (Dearborn). Please contact them expressing your appreciation for their "no" vote.
Substitute H-8 contains the following provisions for charters schools:
- Increases charter schools 30 per year capped at 450 in 2012
- Bay Mills authorization is included under university cap
- Includes language mandating the Michigan Department of Education
- to issue a school aid number to charter schools within 30 days of request
- Includes priority enrollment status to siblings and children of staff
- Wayne County Community College will be authorized to charter schools
- Assets of a closed charter school would revert to the state
- Charters schools could join together to form a high school
- Incomplete charter school oversight
- The collective bargaining language for ISD's has been deleted
Action Needed: Please contact your State Senators immediately requesting their opposition to House Bill 4841 or any charter school expansion bill. For your convenience there are pre-written letters on our website on the Legislative Hotline page: http://mftsrp.org/legislative.html, which you can easily e-mail to your legislators. A few minutes of your time could make the difference whether this bill passes or not. The votes are that close!
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Psychotropic Drug Bill Moving Through the Legislature
House Bill 4025 (Tabor, R-Delta Township) would require that not later than ninety days after the effective date of this legislation, the Department of Education develop and distribute to all school districts, intermediate school districts, and public school academies, a state model policy concerning chronic behavioral issues and psychotropic medication for pupils.
Under the bill, if school personnel suspect a child has a chronic behavioral condition, or if requested by a child's parent, school personnel would be permitted to do any of the following:
- discuss the child's behavior with the child's parent;
- if appropriate and with parental consent, refer the child for an educational evaluation by appropriate educational evaluators (appropriate school personnel, including certified school psychologist, approved school social workers, approved or certified speech pathologists, school nurses, and school counselors);
- if appropriate, recommend to the child's parent that the child be evaluated by an appropriate health care provider;
- refer the parent to appropriate health professionals affiliated with the school district, intermediate school district, or public school academy for possible evaluation of the child; and,
- if behavior issues persist after taking the above listed steps, follow local procedures to provide specialized educational services as appropriate for the child.
A teacher would not be permitted to (unless licensed, certified, or registered to do so):
- make a psychological or medical diagnosis of a behavioral condition or disorder in a child; or,
- recommend a psychotropic drug for any child.
Additionally, if a school district or intermediate school district operates or provide educational services for pupils in a residential care facility for court-placed children, the local policy may exclude or exempt that facility and children and teachers in that facility.
Further, House Bill 4025 specifies that not later than the beginning of the 2003-2004 school year, the board of a school district, a local act school district, or intermediate school district, or the board of directors of a public school academy, would be required to adopt, implement, and notify parents of a local policy concerning chronic behavioral issues and psychotropic medication for pupils that was consistent with the state model policy.
House Bill 4025 was reported out of the House Education Committee on March 25 and could be taken up on the House floor at any time where passage is likely. The MFT&SRP has concerns about the bill's unintended consequences stifling counsel between parents and staff.
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Governor's School Aid Budget Proposal
Fiscal Year 2004
The Governor's Executive Budget Proposal includes a revised school aid budget for fiscal year 2004 totaling $12.4 billion, supported with $11.2 billion in state revenues and $1.2 billion of federal revenues. The Governor's FY 2004 school aid budget maintains the per-pupil foundation allowance of $6,700 already provided for FY 2003.
At-risk funding will remain at the FY 2003 level and modifications are recommended to allow its use for before and after school programs. Funding for preschool readiness programs are also protected at the FY 2003 level, and a new preschool program for ISD's is being proposed.
Under the Governor's proposal, the district's pension contribution rate will not be increased. Instead, about $140 million will be moved from the pension stabilization sub-account established in 1997. There is no funding in the newly created "advance funding" sub-account for retiree health.
Declining enrollment districts will benefit from a pupil membership formula from the current 20/80 to a 50/50 shift between the prior years February and current year fall count. This change saves $40 million in school aid costs for fiscal year 2004. Other significant details of the Executive Budget proposal are listed below:
| Section |
Current Law
(before proration) |
Governor's Proposal |
| Foundation Allowances |
See Foundation Allowance Chart |
Same as FY 2003 See Chart |
| Special Education |
$852.7 million |
$853.2 million |
| At-Risk (31a) |
$314.2 million |
$314.2 million |
| School Readiness (32d) |
$72.8 million |
$72.8 million |
| Bilingual Education (Sec. 41) |
$4.2 million |
$4.2 million |
| Bus Driver Safety (Sec. 74) |
$1.6 million |
$1.6 million |
| Durant Cash Payments (Sec.11f) |
$32 million |
$32 million |
| School Lunch (Sec. 31d) |
$18.1 million |
$21.3 million |
Renaissance Zones
Reimbursement (Sec.26 A) |
$10.2 million |
$27.9 million |
| Court Placed Pupils (Sec.24) |
$8.9 million |
$10.9 million |
ISD Early Literacy & Parent
Education (NEW - 32j) |
--------------- |
$3.3 million |
| Durant Bonds (Sec. 11g) |
$40 million |
Refinanced $0 Payments restart in 2006 |
| Federal Funds |
$1.22 billion |
$1.24 billion |
| Adult Education (Sec. 107) |
$77.5 million |
$20 million-- Language added to allow providers to charge tuition unless participant's income is at or below 200% of federal poverty level. |
| ISD General Operations (Sec. 81) |
$95 million |
$88.7 million |
CEPI - (Sec. 94A) &
Standards & Poors |
$6.8 million |
$2.8million Standards & Poors not renewed |
ISD Special Education Millage
Equalization |
$38.1 million |
$36.9 million |
ISD Vocational Education Millage
Equalization (Sec. 62) |
$9.8 million |
$9.5 million |
| Vocational Education (Sec. 61a) |
$31 million |
$30 million |
Michigan Virtual High School
(Sec. 98) |
$5 million |
$2 million ($1 million for Wireless Technology) |
| Career Preparation (Sec. 67/68) |
$22.2 million |
$0 |
| PAL (Sec. 108) |
$20 million |
$0 |
| Math/Science Centers (Sec. 99) |
$10.2 million |
$0 |
| Gifted & Talented (Sec. 57) |
$5 million |
$0 |
School Health Curriculum Grants
(Sec. 99a) |
$3.2 million |
$0 |
Interagency Multi-Collaborative
Bodies (Sec. 32C) |
$2 million |
$0 |
Accreditation Assistance Grants
(Sec. 94) |
$2 million |
$0 |
| Golden Apple Awards (Sec. 96) |
$1.3 million |
$0 |
| Autism Grants to GVSU (Sec. 55) |
$500,000 |
$0 |
| Pupil Membership Blend |
Previous February 20% /
Current September 80% |
50% / 50%
(Saves $40 million) |
| Retirement Rate (Sec. 147) |
12.99% |
12.99% * If districts participating the School Bond Loan Fund assist State Treasurer with refinancing bonds. Rate will revert back to 14.37% for all districts if this does not occur. |
| Consolidation Language (Sec. 20 ) |
Calculation of the foundation allowance for districts that consolidate after June 1, 2002, to be $50 per-pupil above the highest foundations allowance of the consolidating districts, capped at the *hold-harmless* state maximum. |
Districts that consolidate will receive the average weighted foundation plus $10, or the state maximum, whichever is less. |
| GF/GP Contribution to SAF |
$198 million |
Will use $198. 6 million from Revenue Sharing Payments |
Schools of Choice Guarantee
(Sec. 105 (17) |
If fewer than 90% of the pupils living in a local school district attend school in that district, the district foundations allowance payment shall be paid as if exactly 75% were enrolled in the district for 02 - 03, 50% for 03 - 04, and 25% for 04 - 05. |
Deleted |
Declining Enrollment for Lower Peninsula (Sec. 6(4)y )
1,500 pupils or less & 4.5 pupils per square mile & allow 3 year average of pupil membership |
Districts that educate high school students from a contiguous district can use the square mileage of both districts in determining the number of pupils per square mile.
Districts that receive students from a closed public school academy, in operation for more than two years, can count the new students as if they were in attendance on the February count date. |
Deleted |
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Governor's Higher Education and Financial Aid Budget
Fiscal Year 2004
The Governor's budget includes over $2 billion for higher education. For fiscal year 2004, state support for public universities and community colleges is reduced by 6.5 percent, resulting in a cumulative reduction of 10 percent from the original fiscal year 2003 appropriated levels.
Higher Education Financial Aid Changes
- Creation of the Michigan Opportunity Scholarship Program, a new need-based scholarship program created by consolidating funding from current financial aid programs.
- Elimination of the current State Competitive Scholarship, Tuition Grants, Michigan Work Study, Adult and Part-Time Independent Student Aid, and Michigan Education Opportunity Grants programs for students not currently receiving them.
- Reduction of the maximum Michigan Merit Award to $500 beginning with the 2004 high school graduating class.
- Reduction by 6.5 % from the current year to $2.7 million for the Martin Luther King, Jr. - Ceasar Chavez - Rosa Parks program grants.
- Continuation of the $4 million nursing scholarships.
- Funding for the Tuition Incentive Program, which encourages low-income Medicaid- eligible students to finish high school by providing financial assistance to attend college, is increased by 76% to $9.25 million. However, the recommended budget discontinues new enrollments in the program in anticipation of merging this program with the Great Lakes, Great Hope scholarship fund created by the Governor.
- Currently, students attending private colleges receive 65% of $112.4 million in financial aid with the remaining 35% going to public university students. Under Governor Granholm's budget recommendation, students from public universities are forecast to receive 75% of the $112.4 million while those at private schools would get 25%.
Grants and Financial Aid
Higher Education - Fiscal Year 2004
| Program |
FY 2003
Enacted |
FY 2003
Current Law |
FY 2004
Recommended |
| Competitive Scholarships |
$36,654,616 |
$35,993,486 |
$0 |
| Tuition Grants |
$66,100,200 |
$64,778,121 |
$0 |
| Michigan Work Study |
$8,015,800 |
$7,855,475 |
$0 |
| Adult Part-time Grant |
$2,903,000 |
$2,844,937 |
$0 |
| Dental Degree Grant |
$5,052,300 |
$4,875,449 |
$4,547,000 |
| General Degree Reimbursement |
$6,184,100 |
$5,967,611 |
$0 |
| Allied Health Degree Reimbursement |
$935,100 |
$902,397 |
$0 |
| Michigan Education. Opportunity Grants |
$2,280,300 |
$2,234,692 |
$0 |
| Michigan Opportunity Scholarships |
$0 |
$0 |
$112,441,900 |
| Byrd Scholarship Program |
$1,900,000 |
$1,900,000 |
$1,500,000 |
| Nursing Scholarship Program |
$4,000,000 |
$4,000,000 |
$4,000,000 |
| Michigan Merit Award Program |
$114,323,850 |
$64,323,850 |
$65,100,000 |
| Tuition Incentive Program (TIP) |
$5,250,000 |
$5,250,000 |
$9,250,000 |
Grants and Financial Aid
Community Colleges - Fiscal Year 2004
| Program |
FY 2003
Enacted |
FY 2003
Current Law |
FY 2004
Recommended |
| At-Risk |
$3,692,103 |
$3,562,706 |
$3,322,700 |
| PASS |
$2,000,000 |
$700,000 |
-0- |
| Merit Awards |
$2,000,000 |
$2,295,982 |
-0- |
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Higher Education Budget Highlights
The fiscal year 2004 budget includes over $1.45 billion in state aid for the state's 15 public universities. This funding includes a reduction in each university's support equal to 6.5 percent of current year funding levels, a cumulative 10 percent from the enacted fiscal year 2003 budget.
- Reduces funding to $33.9 million (a 6.5 % reduction from the current year, a cumulative 10 % from the enacted fiscal year 2003 budget) for the Agricultural Experiment Station and $28.6 million for the Cooperative Extension Service operated through Michigan State University, with $5.6 million of these two budgets set aside for Project GREEEN.
- Eliminates funding for Japan Center for Michigan Universities, the Midwestern Higher Education Compact and Rare Isotope Accelerator.
- Contains tuition restraint language proposing "reasonable" tuition increases without stating a limit either in dollars or percentages.
- Freezes the MPSERS pension contribution rates at 12.99% charged to community colleges and state universities. State funding that became available after recent changes to the Public School Employees Retirement System would be used to subsidize additional retirement costs for the participating universities and community colleges.
Governor's Recommendation
Higher Education - Fiscal Year 2004
| College |
FY 2003
Enacted |
FY 2003
Current Law |
FY 2004
Recommended |
% Change from
Current Law |
| GF/GP |
$1,812,271,316 |
$1,741,466,933 |
$1,632,687,000 |
-6.2 |
| All Funds |
$1,943,345,166 |
$1,831,501,735 |
$1,715,437,000 |
-6.3 |
| Eastern Michigan |
$87,637,200 |
$84,569,756 |
$78,873,300 |
-6.7 |
| Michigan State |
$325,982,300 |
$314,572,583 |
$293,383,700 |
-6.7 |
| U of M Ð AA |
$363,562,700 |
$350,837,633 |
$327,206,100 |
-6.7 |
| Wayne State |
$253,644,700 |
$244,766,818 |
$228,279,900 |
-6.7 |
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Community Colleges Budget Highlights
The fiscal year 2004 budget includes nearly $284 million in state aid for the state's 28 community colleges. This budget level includes a funding reduction equal to 6.5 percent of current year funding levels, or a cumulative 10 percent from the fiscal year 2003 enacted budget.
- Includes $3.3 million to fund the At-Risk Student Success Program at each college.
- Increases funds to $1.75 million (226%) to reimburse colleges that lose property tax revenue as the result of the establishment of Renaissance Zones
- Eliminates the Postsecondary Access Student Scholarship (PASS) program in fiscal year 2004. (Only 666 students used this program in fiscal year 2002.)
- Freezes the MPSERS pension contribution rates at 12.99% charged to community colleges and state universities. State funding that became available after recent changes to the Public School Employees Retirement System would be used to subsidize additional retirement costs for the participating universities and community colleges. These funds will pay an estimated $7 million in additional costs that would otherwise be charged to the colleges.
Governor's Recommendation
Community Colleges - Fiscal Year 2004
| College |
FY 2003
Enacted |
FY 2003
Current Law |
FY 2004
Recommended |
Percentage
Change |
| GF/GP |
$ 319,732,319 |
$ 307,512,112 |
$ 289,013,100 |
-9.6% |
| All Funds |
$ 321,732,319 |
$ 309,808,094 |
$ 289,013,100 |
-10.% |
| Henry Ford |
$22,708,494 |
$21,912,770 |
$ 20,436,770 |
-10% |
| Kirtland |
$3,058,415 |
$2,951,218 |
$ 2,752,400 |
-10% |
| Lansing |
$32,223,042 |
$31,093,928 |
$ 28,999,400 |
-10% |
| Wayne County |
$17,223,721 |
$16,620,124 |
$ 15,500,600 |
-10% |
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Foundation Allowance Chart
EXECUTIVE BUDGET FOR FISCAL YEAR 2004
K-12 FOUNDATION ALLOWANCES
|
| County |
District Name |
FY 2002
Foundation
Allowance |
FY 2002
Foundation
Allowance |
FY 2002
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 |
$ 7,268 |
$ 7,268 |
| 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 |
| Midland |
Windover Enterprise High School |
$ 6,800 |
$ 7,000 |
$ 7,000 |
| 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 |
Creative Montessori Academy |
$ -------- |
$ 7,000 |
$ 7,000 |
| Wayne |
Detroit City School District |
$ 6,884 |
$ 7,179 |
$ 7,179 |
| 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 |
$ 7,632 |
$ 7,632 |
| 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: March 24, 2003
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Michigan Federation of Teachers & School Related Personnel
