|March 26, 2015
SENATE RELEASES FY2015-16 SCHOOL AID BILL
The Senate Appropriations Subcommittee on K-12 funding released its version of the budget for the FY2015-16 school year and voted it out to the full Appropriations Committee yesterday. The SB 130 budget proposal looks very similar to the Governor’s proposal in many respects, including the addition of new categoricals focusing on early literacy and the expansion of At-Risk funding. The Senate version however, increases the foundation allowance ranging from $50 to $100 per pupil using the 2x formula and adds additional funds to ensure all districts are at least held harmless to this year’s funding level after specific categorical cuts.
As we said in our eblast on the House version of the budget, HB 4089, you’ll need to dig into the district-by-district details of the Senate proposal to see how your district fares in the exchange for categoricals! (Please note the Section 22d(4) column of the district-by-district detail represents the “new” qualifiers. Those districts that currently qualify would continue to qualify next year under the proposal.)
If the impact of eliminating specific categorical funding results in less funding than the proposed foundation allowance increases, the proposal allocates funds that bring all districts to at least this year’s level.
CATEGORICAL FUNDING CHANGES!
This is not an exhaustive list of changes but does hit many of the categoricals that you need to take into consideration when deciding how this version of the budget might impact your district. Please see the Senate Fiscal Agency analysis for even more detail.
Other notable categorical changes show an increase in Section 22d Isolated Districts Funding of nearly $2.5 million for a total of $5 million, Section 61a Career and Technical Ed of $12 million for a total of $40.0 million, and Section 81 ISD General Operations of $3 million for a total of $68.1 million. This proposal eliminates requirements of Section 81(7) ISD Best Practices and moves the funds to ISD operations. However, local districts will still be required to meet best practices as proposed by the Governor at a reduced rate of $20 per pupil.
MPSERS AND OTHER OBLIGATIONS
IMPORTANT “BOILERPLATE” LANGUAGE CHANGES
IMPORTANT TO REMEMBER: The release of the House and Senate budget proposals and the analysis of each are important steps in the process. Both budgets have been passed out of subcommittee and are on to their respective Full Appropriations Committee. They are not law and should only be used with caution when discussing next year’s funding. They paint a great landscape of the priority and total funds allocated, but are subject to change as more information becomes available.
An important difference between the Governor’s proposal, the House version and the Senate version as detailed above is the Governor’s plan allocated nearly $50 million more than the House version and the Senate allocated nearly $10 million more than the Governor. As the legislature makes progress on setting budgetary target amounts, the total allocation will become clearer. For more details on the differences between the three versions, see the Senate Fiscal Agency “side-by-side” document posted on our website!
We’ll keep watching the exchanges, but with Proposal 15-1 “Roads Funding” vote and the May Consensus Revenue Estimating Conference scheduled for May 15 quickly approaching, things do and will change. Stay Tuned!David and Bob
You received this e-mail as a member of MSBO. MSBO is a professional organization that provides programs and services to those in school business. MSBO promotes the highest standards of school business management practices and provides professional growth opportunities to achieve the most effective use of resources in the education of children.
Please do not click "Reply" to this e-mail. For any questions or concerns, please write to MSBO at: firstname.lastname@example.org.
© 2015 MSBO, 1001 Centennial Way, Suite 200
Lansing, Michigan 48917 • Ph: 517.327.5920 • Fax: 517.327.0768