April 11, 2018

House Subcommittee 2018-19 School Aid Budget Released

Yesterday, the House Appropriations Subcommittee for K-12 School Aid released its version of the FY 2018-19 School Aid Budget and approved it with two amendments to go to the full House Appropriations Committee. House Bill 5576 (H-1) Draft 1 resembles the Governor’s foundation increase but doesn’t limit cyber school foundations or shared time services to the extent the Governor or Senate Bill 863 proposals suggested. See our emails of the Governor’s Proposal and the Senate Proposal for details. You may also visit our webpage dedicated to the FY2018-19 School Aid Budget.

House Bill 5576 (H-1) Draft 1 includes:

    • Foundation allowance increase of $120 - $240 per pupil using 2x formula

    • Maintains current law for shared time cap of .75 FTE

    • Maintains current law allowing for shared time kindergarten

    • Maintains current year full Cyber Schools foundation; not limited

    • Reduces funding for the Flint water emergency by $5.5 million to $3.2 million

    • Section 31a At-Risk – Maintains current funding level and offers alternative boilerplate changes from the Governor’s proposal

    • Maintains the current year Special Education Millage Equalization funding

    • Does not include the Governor’s CTE per pupil incentive

    • Maintains FIRST Robotics current year allocation for districts and non-public schools but does not include ISD’s. Expands to other robotics competitions.

    • Maintains additional allocation for High School students

    • Maintains current year funding for ISDs operating funds (Section 81); no increase

    • Maintains current year Section 102d data analytical tools funding

    • Maintains current year funding for Adult Education Section 107

    • Maintains current year funding for Non-Public Schools Reimbursement

    • MPSERS Sections 147a remains intact but does NOT include any additional funds for ISD’s.

    • All other MPSERS allocations funded at or above current year amounts, with the exception of the current year 147c2 One Time MPSERS Retirement Incentive Payment, which is eliminated as expected

    • Many other changes, so if you are looking for specific sections, we recommend reviewing the Full Text or the Section by Section information linked below

Ringing in at the highest funding level, the House Appropriations Subcommittee for K-12 School Aid proposal comes in at $86.3 million above the Governor’s proposal and $89.7 more than the Senate Subcommittee proposal.

We have posted all of the documents on our webpage for the FY2018-19 School Aid Budget, including:

The budget process is steadily moving forward, and it appears that a significant foundation allowance increase might be a reality! The next piece of the puzzle, which is just around the corner, is the May Consensus Revenue Estimating Conference (CREC) which will provide the latest measure of revenues available to fund the FY2018-19 School Aid Budget.

What more can you ask for? How about a presentation by fiscal staff that explains the differences in the budget proposals and the “inside scoop” on the potential outcome? We’ve got it for you next Tuesday at the Finance Pre-Conference at the 2018 MSBO Annual Conference in Detroit, April 17-19. There’s still room if you haven’t registered but you better hurry because online registration closes this FRIDAY!

We will continue to review and monitor the progression of the school aid budget and will provide greater detail of the final House and Senate proposals when they are passed in the chambers.

See you next week!

David and Bob

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