Jul 3, 2024, 11:23
by
Jennifer Smith, MASB Director of Government Relations
In the early hours of June 27, the Legislature finally completed the School Aid Budget. It is now awaiting presentation to the Governor, after which she will have 14 days to sign it. It was a long week to get to that point of completion, as we outlined in a quick update.
The next day, MASB’s Executive Director, Don Wotruba, issued the following statement on the passage:
“The Michigan Association of School Boards is deeply concerned about the budget decisions made last night and the impact they will have on every school across our state. This budget fails to address crucial funding needs in our classrooms, exemplified by a zero-dollar increase to the foundation allowance and a refusal to enact a permanent reduction in the retirement tax burden on schools.
The consequences of this budget decision are grave. Without legislative action to revisit these issues, schools face significant challenges, including a freeze in foundation funding, a severe 98% reduction in school safety and mental health support funding, and allocations that complicate responsible financial planning.
We urge legislators to return to Lansing promptly to address these critical shortcomings. It is imperative that Senate Bill 911 or House Bill 5803 be swiftly passed and signed into law by Governor Whitmer to provide long-term financial relief and stability for our schools and educators. The future success of Michigan’s education system depends on decisive action to rectify these budgetary oversights without delay.”
MSBO and MASB held a Views From the Capitol - Budget Edition webinar July 1 to go through the details of the budget and took questions. If you missed it, the recording is now available on MASB's YouTube channel.
In the following paragraphs, we break down the School Aid Budget by relevant sections. You can also find more information on the budget from the House Fiscal Analysis and the District by District Impact sheet.
Sec. 12c – Consolidation and infrastructure fund
Appropriates $25 million from the fund for districts and ISDs facing an infrastructure emergency that threatens their students' and staff's health and safety. The district superintendent would have to submit a request to the state treasurer and state budget director.
Sec 12d – Rightsizing grants – NEW
Allocates $75 million for grants for internal consolidation with a district or intermediate district and $35 million for specific infrastructure grants.
Sec. 20 – Per-pupil foundation allowance
Maintains the target foundation allowance at $9,608 per pupil and the cyber school allowance at $9,150 per pupil.
Sec. 22d – Rural and isolated districts
Increases funding in this section by $705,900, a 6.1% increase, for rural and isolated districts.
Sec 22e – Per-pupil increase for public school academies - NEW
Allocate $57 million for a one-time per-pupil increase to charter schools of 3.9% of their foundation allowance. Does not include charter schools that participate in MPSERS.
Sec 22l – Transportation funding
Maintains $125 million for districts to offset transportation costs and changes the funding groups from quartiles to octiles.
Sec. 25l – Early warning and intervention system – NEW
Appropriates $5 million to an ISD for an early warning intervention and monitoring system for students at risk of dropping out of high school.
Sec. 27c – Student-teacher stipends
Maintains funding for higher education to provide stipends to student teachers.
Sec. 27k – Student loan repayment
Appropriates $24.4 million for student loan repayment and directs MDE to create an online portal to facilitate the grants to eligible recipients.
Sec. 29 – Enrollment stabilization fund
Maintains appropriations for the fund to assist districts with declining enrollment.
Sec. 30d – Universal breakfast and lunch programs
Includes $200 million to reimburse schools for the cost of providing free breakfast and lunch to all students. The increase reflects actual costs incurred during the 2023-2024 school year.
Sec. 31a – At-risk funding
Increases funding by $82.9 million, a more than 6% increase. Adds a provision allowing up to 30% of funds to be used for reducing the teacher to pupil ratio for grades K-3 and an additional 30% to be used for recruitment and retention of teachers in certain schools.
Sec. 31n – School mental health and support services
Maintains funding for this section for licensed behavioral health providers in schools. It also continues allowing those providers to qualify for federal Medicaid match funding.
Sec. 31aa –Mental health and school safety grants
Allocates $25 million for payments to districts for specific activities to improve the mental health of students and staff and/or to improve school safety. A district would have to opt in to receive funds.
Secs. 32d and 39 – Great Start Readiness Program
Increases funding for the Great Start Readiness Program by $85 million and expands eligibility to those families making up to 400% of the federal poverty guidelines. However, if all slots are not filled, then any child who will be four by Sept. 1 is eligible with no income guidelines. Increases the full-day rate to $10,185 and the part-day rate to $5,093. Includes grants up to $50,000 for classroom start-up costs.
Sec 32n – Before and after-school programs
Increases funding by $15 million and allocates a portion of the funds to specific programs.
Sec. 35a – Third grade reading
Increases funding by $5 million for literacy coaches and expands allowable grades to 5th grade. Also includes intent language to reduce funding by $15 million next year.
Sec. 35m – Committee for literacy achievement – NEW
Creates the committee for literacy achievement to identify and rank literacy tools and services available to districts. Appropriates $87 million for grants to districts and for stipends for committee members up to $8,000 annually. Districts using tools higher on the ranking would receive more funding than those using tools lower on the ranking.
Sec. 35n – READ innovative competition – NEW
Appropriates $10 million for reading excellence and advancing district innovation competition. MDE would establish the structure of the program, the categories of the competition and the award recipients. Startup funds would be provided to eligible districts to develop innovative literacy initiatives to compete for the final award of $500,000.
Sec. 41 – English Language Learners
Increases funding by $10.4 million, a 21% increase over last year, and adds a requirement that districts provide a minimum number of minutes per week of direct ELL instruction.
Sec. 51e – Special education funding
Increases funding for special education programs to continue to fund pupils at 100% of the target foundation allowance.
Sec. 54d – Early On
Increases funding by $1.4 million for Early On programs for children from birth to age three with a developmental delay, disability or both.
Sec. 56 – Special Education Millage Equalization
Maintains current funding and the current formula.
Sec. 61c – CTE equipment
Repeals this section.
Sec. 67f – FAFSA incentives
Appropriates $10 million to be distributed to districts that require students to fill out the FAFSA as a graduation requirement.
Sec. 81 – ISD funding
Maintains funding at current year levels.
Sec. 99h – First Robotics
Appropriates $5.3 million and expands eligible programs and competitions.
Sec. 147 – MPSERS rates
Makes annual adjustments to all rates.
Sec. 147a – MPSERS offset
Maintains current year appropriation for normal costs and increases the reimbursement for payroll costs. Appropriates $598 million to lower the district UAAL cap from 20.96% to 15.21% for participating entities. Also includes intent language that the savings realized by districts be used to support student mental health, school safety, the educator workforce and academic interventions.
Sec. 147c – MPSERS rate cap
Sets the rate cap per pupil for districts to a range of $2-$2,650. Also changes the payroll growth assumption to 0.25%.
Sec. 147g – Employee MPSERS reimbursement – NEW
Appropriates $181.5 million for districts to use to reimburse an employee’s 3% contribution for retiree healthcare.
Sec. 164j – Collective bargaining violations -- NEW
Final budget did not include the House language to prohibit the use of funds received under this Act to pay for litigation or legal costs resulting from a violation of the collective bargaining section of the Public Employment Relations Act.
