House Passes Education Budget

Reblogged from mea.org

Before adjourning for much of the summer – except for one scheduled session day in July – the state House passed an education budget that now goes to the Senate this Thursday. The education spending plan is expected to be signed by the governor shortly after that. 

A review of the budget’s highlights is below. For more specific information, you can read the House Fiscal Analysis.

Per Pupil Increase:
The final budget has the 2x formula and increased the foundation allowance between $60 and $120 per pupil.

In addition, $11 million has been appropriated to add $25 per pupil for all high schools students in grades 9-12.

Third Grade Reading:
This budget appropriates $26.4 million for literacy coaches, professional development, diagnostic tools, etc.  The money will be distributed to districts in an amount equal to $210 per 1st grade FTE.

At Risk:
At Risk funding increased by $120 million to a total of $499 million.  It caps newly eligible Hold Harmless and Out-of-Formula districts at 30% funding.  Currently eligible districts would receive an estimated $777 per eligible pupil and newly eligible districts would receive an estimated $233 per pupil.

MPSERS Cost Offset:
A little over $23 million to offset increased MPSERS costs due to new MPSERS legislation.

$100 million to maintain the current district contribution rate for MPSERS.

An additional $200 million will be paid toward the MPSERS unfunded liability.

State School Reform/Redesign (SRO)
State School Reform/Redesign funding for CEOs has been eliminated.

Declining Enrollment:
No money has been provided for declining enrollment districts.

Educator Evaluations:
No additional money has been appropriated.

There are several changes to Boilerplate language.  Three that are particularly important to us include:

  • Sec. 160. Labor Day Waiver Hearing includes a new requirement that if a district requests a waiver to begin school before Labor Day, the district must hold a joint hearing with the MDE to be held in the district before said waiver can be granted.
  • Sec. 164g. establishes a penalty in an amount spent if a district or ISD uses funds appropriated under this act to pay for an expense relating to any legal action initiated by the district or ISD against the state.
  • Sec. 164h establishes a penalty equal to 5% of total state aid if a district or ISD enters into a collective bargaining agreement that does any of the following: establishes racial and religious preferences for employees; automatically deducts union dues from employee compensation; is in conflict with any state or federal laws regarding district transparency; includes a method of compensation that does not comply with the requirements of section 1250 of the Revised School Code, MCL 380.1250 (Merit Pay).

Community Colleges:
.9% increase

Higher Ed Budget:
2.9% increase

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