David Hecker
President

Lois Lofton Doniver Secretary-Treasurer

Louise Somalski
Legislative Coordinator

May, 2006

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

Budget Update
School Aid Budget
Community College Budget
Higher Education Budget
Retirant Earning Limit
"Green School" Designation
School Lock-Down Drills
Emergency Drills During Non-Class Time
Drop-Out Bills

Budget Update

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School Aid

Total Appropriations. For total School Aid Fund appropriations for FY 2006 - 2007 the Governor recommends $11,671,277,800, the Senate recommends $11,668,853,000, and the House recommends $11,691,116,400. (Sec. 11(1)

Reimbursement for Fingerprinting. The Senate and House add $3.5 million to reimburse districts for cost of re-fingerprinting anyone previously fingerprinted between 1-1-93 and 12-31-05. (Sec. 11M)

Foundation Allowance. The Governor sets the basic foundation allowance at $7,075. The Senate proposal increases the basic foundation allowance to $7,100. The House sets the basic foundation allowance at $7,105 and reinstates the foundation allowance to $6,875 if the K-16 proposal initiative is adopted. (Sec. 20)

Equity Payment. The Senate adds a per pupil payment of up to $60 to districts with FY 2006-2007 foundation allowances below $7,160. The House adds per pupil payment of up to $35 to districts with FY 2006 - 2007 foundation allowance below $7,480. (Sec. 22c)

Supplemental Foundation Allowance Payment for FY 2005-06. The Governor appropriates $41,500,000 to make an additional payment of $25 per pupil in FY 2005-06. The Senate does not include this supplemental payment; however, this Section is used as a place holder for adjusting the foundation allowances of districts with deficit operating budgets. The House does not include this section. (Sec. 22E)

Declining Enrollment. The Governor appropriates $50 million to address the problems of eligible declining enrollment districts. The Senate appropriates $100 as a place holder. The House does not include this section. (Sec. 29 )

School Readiness. The Governor increases funding by $28,800,000. The Senate increases this line item by 10% and increases per pupil allocation to $3,400. The House allocates $72,600,000 from SAF and $200,000 in General Funds (Sec. 32d)

Teacher and Paraprofessional Requirements. The House adds language for districts that are unable to comply with current teacher requirements for school readiness teachers to be able to hire individuals who have one or more of the following: 1) a valid teaching certificate with an early childhood endorsement (ZA) or a child development associate credential (CDA); 2) a bachelor's degree in child care or child development; or 3) a child development credential CDA) combined with an associate's degree in early childhood education. The House changes the paraprofessional requirement to allow a district to hire an individual who has completed at least one course in an appropriate training program, including, but not limited to, a CDA, and associates degree in child development program, or similar program. (Sec. 37)

ISD General Operations. The Governor provides for a 2.9% increase and the Senate increases funding by 3.3% to mirror their foundation allowance increases. The House maintains the current year funding at $77.7 million. (Sec. 81(1))

Michigan Virtual High School. The Governor appropriates $6,525,000 Federal funds for operations. The Senate concurs with the Governor and adds language requiring the MVHS to provide online preparation resources for pupils that would be web- based tools for the ACT and the revised MEAP exam, and would include practice tests, test-taking strategies, diagnostic tools, self-paced online instructional tutorials, and electronic feedback reports for students and schools. The House concurs with the Governor and Senate and adds new subsection requiring the inclusion of the use of scientific method to critically evaluate scientific theories. (Sec. 98)

Math and Science Centers. The Governor and Senate increase appropriations by $1,000,000 and continues federation funding of $4,456,000. The Governor and Senate state that the additional $1,000,000 was earmarked for those centers determined by the Department of Education as able to provide curriculum and professional development support to assist districts in implementing the Michigan Merit core curriculum components for math and science. The House concurs and adds new subsection requiring the inclusion of the use of scientific method to critically evaluate scientific theories.(Sec. 99)

Engineering Michigan's Future. The House adds $30,000,000 for district grants of approximately $80 per eligible student enrolled in grades 6 to 8 to improve pupil performance on the MEAP and to help meet AYP requirements for mathematics. (Sec. 99c)

Automated External Defibrillators. The House concurs with the Senate to add this line item to provide grants for districts to purchase at least one AED. (Sec. 99d)

Hours of Instruction. The Senate changes the number of professional development hours that can be used as hours of instruction from 51 to 38 after the expiration of current local bargaining agreements. The House maintains current law allowing the option of 51 hours for professional development. (Sec. 101)

Enrollment of Pupils Under Schools of Choice. The House concurs with the Governor to maintain current law. The Senate adds a provision stating that if a district enrolls and counts a nonresident pupil in membership under the schools of choice provisions, the district must continue to enroll that pupil regardless of whether the pupil has been suspended or expelled from another district prior to the pupil being enrolled and counted in membership in that nonresident district. (Sec. 105(10) and Sec. 105c(10))

Adult Education. The Governor, Senate, and House concur on increasing funding by $4,000,000. The House concurs with the Governor to change the payment to be based on 75% for enrollment and 25% for completion. The Senate retains current law such that payment remains at 90% for enrollment and 10% for completion. The Senate adds language stating that the additional $4.0 million must first be used for new programs with any additional funds allocated equally among existing programs. The House allocates $2,000,000 of the increased funding for current programs and $2,000,000 for new adult education programs. (Sec. 107)

Retirement Rate. The Governor, Senate, and House propose the rate to be increased by 1.4 percentage points to a total of 17.74% of payroll. (Sec. 147)

Programs Transferred. The Senate and Governor appropriate $48,973,400 in the School Aid budget for transferred programs formerly funded in other department budgets with GF/GP in FY 2005-06. These included: Juvenile Detention Education, Youth Challenge Program, Vision and Hearing Screenings, School Breakfast Program, Pre-College Engineering Program, School Bus Safety Inspections and MEAP Assessments. The House returns Juvenile Detention Education, Youth Challenge Program, Vision and Hearing Screenings, and School Bus Safety Inspections to their original departments for funding.

Community College Support. The Senate replaces $43.9 million of General Fund support to the Community College budget with the same amount from the School Aid Fund. The House maintains school aid funding in K-12 budget.

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Community Colleges

Operations. The Governor recommends a 2% across-the-board increase. The Senate appropriates a 2.1% increase and the House appropriates 2.4% over the current years budget. (Sec. 102) The Senate and House distribute the increase as follows:

• Wayne County Community College receives an additional $225,000 which restores half of the funds that had been cut in 2003 - 2004 that was added to the totals of three other colleges that year. The other $225,000 was restored in Senate Bill 242, which awaits the Governor's signature.
• The balance of the funding is distributed through the model adopted by the Performance Indicator Task Force.
• In addition, the Senate replaces $43.9 million of General Fund support with the same amount from the School Aid Fund. The House funds Community Colleges with General Fund dollars.

Community College	FY 2005 - 2006 PA 154, 2005	FY 2006 - 2007 Governor's Proposal	FY 2006 - 2007 Senate Bill 1082	FY 2006 - 2007 House Bill 5796
Henry Ford	$19,800,700	$20,196,700 2.0% Increase	$20,153,800 1.8% Increase	20,250,000 2.27% Increase
Kirtland	$2,666,800	$2,720,100 2.0% Increase	$2,721,700 2.1% Increase	2,728,000 2.29% Increase
Lansing	$28,097,100	$28,659,000 2.0% Increase	$28,626,700 1.9% Increase	28,737,900 2.28% Increase
Wayne County	$14,582,200	$14,873,800 2.0% Increase	$15,072,600 3.4% Increase	15,139,000 3.82% Increase

Sources: House Fiscal Agency and Senate Fiscal Agency

At Risk Funds. The Senate and House restore language eliminated by the Governor that allowed for At-Risk funds to be used for the purchase of equipment. (Sec. 401)

The Governor, Senate, and House recommend the following at-risk funding for community colleges represented by AFT Michigan locals: Henry Ford - $151,900; Kirtland - $124,300; Lansing - $134,500; and Wayne County - $172,400.

Renaissance Zone Reimbursements. The Governor, Senate, and House recommend a 10.3% increase for this program to reflect anticipated need. (Sec. 404)

ITEM Funding. The Senate and House restore language eliminated by the Governor that states legislative intent to restore funding for infrastructure, technology, equipment, and maintenance. (Sec. 220)

Community College Increases. The Senate and House restore language eliminated by the Governor that states legislative intent to ensure community college funding increases are similar to university increases. (Sec. 239)

Economic Development Job Training. The Senate and House restore language eliminated by the Governor that states legislative intent that 70% of the Economic Development Job Training Grant money be awarded to community colleges. (Sec. 240)

Employee Health Insurance. The Senate and House restore language eliminated by the Governor that prohibits the use of state funds to provide benefits to unmarried partners or for abortion services for college employees. (Sec. 230 & Sec. 231)

Implementation of the Performance Indicators Task Force Recommendations. The House includes new language stating legislative intent that the performance measures in the Performance Indicators Task Force Proposal and Recommendations Report be reviewed and more fully implemented in the future. (Sec. 305)

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Higher Education

Total Appropriations. The Governor recommends $1,741,840,7000, the Senate recommends $1,777,886,800, and the House recommends $1,779,650,700.

State University Operations. The Governor recommends a 2.0% increase for Michigan State, University of Michigan-Ann Arbor, and Wayne State, and a 1.0% increase for the other 12 state universities. Additionally, 1.0% increase for other 12 state universities based on four data components.

The Senate provides increases to four universities for $3,750-per-FYES funding floor and a 1.8% inflation increase for all 15 universities. Additionally, $2.3 million is added for eight universities to bring them up to the amounts allocated to them under the executive recommendation.

The House utilizes funding model with enrollment, degree completion, and research-based components to determine state university appropriations amounts. Significant change from enacted versions of FY 2005 - 2006 funding model is higher weighting for math degrees and education degrees in math, science, technical, and special education-related subareas. Funding increases from FY 2005 - 2006 enacted amounts are limited to 4.0%; decreases are limited to 2.0%. Net funding increase is $35.2 million.

State Competitive Scholarships. The Governor offset $3.0 million appropriated from Michigan Higher Education Assistance Authority operating fund in FY 2005 - 2006 with GF/GP funds and removes $500,000 in federal funding no longer available. The Senate concurs with federal reduction but retains MHEAA funds. The House concurs with both the Governor and Senate.

Tuition Grants. The Governor eliminates program but allows current freshmen grant recipients to continue to receive their grants as undergraduates, at the same grant maximum as State Competitive Scholarships. The Senate and House do not concur with phase-out and retain current-year funding with an application deadline of July 1, 2006. (Sec. 302)

Michigan Merit Awards. The Governor, Senate, and House increase appropriations from Merit Award Trust Fund by 1.0% to fund projected costs of $2,500 Merit Awards and middle school exam-based awards; do not include $1,000 out-of-state awards.

Tuition Incentive Program (TIP). The Governor recommends a $2.0 million GF/GP increase due to an increase caseload and adds FAFSA filing as a criterion for Phase I eligibility, and achievement of junior-level status at a four-year institution as a criterion for Phase II eligibility. The Senate adds only a requirement for students to request FAFSA filing information. The House concurs with both of the Governor's recommended changes and provides that federal grant aid be deducted from TIP payment amounts. (Sec. 310(3))

Michigan Leadership, Education and Development (MiLEAD) Initiative. The Governor and Senate add $5.0 million to provide grants to higher education institutions for residential programs for at-risk youth to earn college credits while they perform conservation-based community service. The Senate adds eligibility for independent colleges and universities. House does not include section. (Sec. 313)

Michigan Public School Employees Retirement System (MPSERS). The Senate concurs with the Governor's proposal to increase MPSERS rate to 17.74% for 2006 - 2007. House adds $1.7 million in General Fund revenue for payment to MPSERS to be used to reduce payments by the seven state universities with employees in the system. Appropriation amount is equal to 10.0% of estimated FY 2005 - 2006 university MPSERS costs above estimated costs if MPSERS employees were instead subject to defined contribution retirement plan. (Sec. 437)

Education Degree. Senate and House add new section requiring each state university to report on its efforts to increase the number of education degrees conferred for teaching middle school and high school math, physics, chemistry, biology, and certain foreign languages. (Sec. 711)

Allocations to AFT Michigan locals are listed below:

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Retirant Earning Limit

When signed by the Governor, House Bill 5760 (Palsrok, R-Manistee) will extend until July 1, 2011, provisions that allow retired employees to work for certain school districts without a reduction in their retirement allowance. The current provisions are to expire on July 1, 2006.

Under current law, if a retirant is receiving a retirement allowance other than a disability allowance, and becomes employed by a public school district, intermediate school district, public school academy, tax-supported college or university, or agency with employees who are members of the retirement system, his or her retirement allowance must be reduced by either the amount that his or her earnings exceed the amount permitted without a reduction in benefits under the Social Security Act, or one-third of his or her final average compensation (increased by 5% for each full year of retirement), whichever amount is smaller.

Until July 1, 2006, those provisions do not apply to a retirant who is employed for six years or less by a reporting unit that has one of the following:

• An approved emergency situation, not including a situation caused by a labor dispute, in which hiring a retirant in the capacity of a teacher, principal, stationary engineer, or administrator is necessary to prevent depriving students of an education.
• A critical shortage discipline, as identified by the Superintendent of Public Instruction.

The bill would extend those exceptions until July 1, 2011, and would allow the hiring of a retirant during an emergency situation in any category determined to be necessary by the Superintendent of the Public Institution.

Currently, the exceptions apply only to retirants who retired on or before July 1, 2003. Under the bill, they would apply to retirants who had been retired for at least 12 months before becoming employed under these provisions.

House Bill 5760 has been ordered enrolled and is currently awaiting the Governor's signature.

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"Green School" Designation

House Bill 5554 will allow a public or private school in Michigan to apply to be designated as a "green school". This bill has been approved by the Governor and is waiting to be assigned a public act number.

Under this legislation, counties will have to designate a department of the county or the county's intermediate school district to accept and consider the approval of an application submitted by a school. A school will be eligible to receive a "Green School" designation if it meets at least ten of a list of activities aimed at protecting the environment and conserving energy.

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School Lock-Down Drills

House Bill 4460 (VanRegenmorter, R-Jenison) would reduce the number of required fire drills at State-supported schools from eight to six each school year, and would require at least two "Shelter-In-Place" drills in which the occupants were secured inside the building. This bill would:

• Require a school that operates any grades between kindergarten and 12th grade to conduct a minimum of two "Shelter-In-Place" drills in which the occupants are restricted to the interior of the building and the building are secured.
• Require the Department of State Police Emergency Management Division to develop a model policy to be used by a school, local emergency management coordinator, county sheriff, chief of police, fire chief, or their designee in coordinating "shelter-in-place" drills.
• Require a K-12 school to conduct a minimum of six, rather than eight, fire drills each school year. Four of the fire drills shall be held in the fall and two shall be held during the remaining part of the school year.
• Require schools, colleges, universities, and dormitories to provide for unrestricted emergency egress during school hours when the school is open to the public, rather than requiring all doors and exits to be kept unlocked during those times.

House Bill 4460 passed the House, was substituted and passed by the Senate, and now awaits concurrence from the House before being presented to the Governor for her signature.

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Emergency Drills During Non-Class Time

Senate Bill 1108 (Gilbert, R-Algonac) would require schools that operates any grades between kindergarten and 12th grade to conduct some of the required emergency drills during lunch or recess, or at other times when a significant number of students are gathered but not in the classroom. Since an emergency can occur at any time and without warning, it has been suggested that schools should practice what to do if something happens at a time when students are not in class.

Senate Bill 1108 has passed the Senate and is currently before the House Education Committee.

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Drop-Out Bills

Representatives Palmer and Hoogendyk introduced House Bills 5903 and 5904 allowing students to drop out of high school at age 15 to attend a higher education institution full time. Under this legislation, they only need to take one half of the Michigan Merit Curriculum or score in the top 20% on the ACT or SAT. These bills would apply to private and home schooled 15 to 19 year olds as well.

A grant equal to a portion of the foundation allowance would be used to pay for college. There have been discussions that foundation allowance funds would be used for the grant. This would result in a further financial drain on districts and the school aid fund.

Although this bill is being called the "Michigan Accelerated College Education Act", it is being perceived as a "back door" voucher. These bills are currently sitting on the House floor where passage could occur at any time. Go to the AFT MI Legislative Action page and E-mail a letter to your State Legislators urging their opposition to this legislation.

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