Issue Background

School Aid Budget

The budgets are now before their respective full Appropriations Committee for consideration.

The most notable sections repealed throughout all the budgets are many of those that created flexibility needed to deal with starting and continuing school through the pandemic for the 2020-2021 school year. The related pandemic language was designed to only be for the 2020-2021 year, so the budget is back to the 2019-2020 school year language, including pupil count.

Keep in mind the process and negotiations continue. The next Consensus Revenue Estimating Conference is set for May 21, 2021. This will give the Legislature and the Governor the most current revenue figures with which to set the final budget.

We will keep you informed as the budget continues to move through the process.

Updated April 28, 2021

In addition to Gov. Gretchen Whitmer’s proposal shared earlier this year, both the House and Senate K-12 Appropriations Subcommittees have released and approved their versions of the School Aid budget for 2021-2022. The budgets are now before their respective full Appropriations Committee for consideration.

Following, we break down the School Aid Budget by relevant sections and compare the three proposals – the Governor’s, House subcommittee and Senate subcommittee. We urge you to continue to talk to your legislators about how the proposals will affect your district and the timeliness of final budget decisions. We are pushing for the school budget to be completed by mid-June or earlier.

 

Sec 11d – Additional per-pupil payments

Governor: Does not include this section.

House Committee: Appropriates $172.5 million to allow for a one-time additional per-pupil payment of approximately $120.

Senate Committee: Does not include this section.

 

Sec. 20 – Per-pupil foundation allowance

Governor: Increases the foundation allowance by $82-164 per pupil through the 2x formula. It also sets the cyber school allowance at 80% of the per-pupil amount.

House Committee: Increases the foundation allowance by $50-100 per pupil through the 2x formula. It does not cut the cyber school allowance.

Senate Committee: Increases the foundation allowance by $125-250 per pupil through the 2x formula. It does not cut the cyber school allowance.

 

Sec 22d – Rural & isolated districts:

Governor: Increases this line item by $140,000, a 2% increase.

House Committee: Increases the line item by $342,700, a 5% increase.

Senate Committee: Increases the line item by $1.12 million and expands eligible districts to those with more than 250 square miles (that don’t already received funds under this section).

 

Sec 22e – Rural transportation

Governor: Does not include this section.

House Committee:  Creates new section with $50 million for transportation costs for district with fewer than 20 pupils per square mile to be distributed on a per-pupil basis.

Senate Committee: Does not include this section. However, budget does include a placeholder for a new transportation categorial in Sec. 78.

 

Sec 23b – Remediation services

Governor: Not applicable, this section was added by 2020-2021 supplemental budget after proposal was released.

House Committee: Maintains funding for this section for 2021-2022 and removes references to COVID-19 to say “remediation services”.

Senate Committee: Does not include this section.

 

Sec 23c – Community-based organization before/after school programs

Governor: Not applicable, this section was added by 2020-2021 supplemental budget after proposal was released.

House Committee: Maintains funding for this section for 2020-2021.

Senate Committee: Does not include this section.

 

Sec 26d – Brownfield redevelopment reimbursement

Governor: Appropriates $7.5 million to reimburse ISDs for taxes captured by brownfield redevelopment areas.

House Committee: Concurs with Governor.

Senate Committee: Concurs with Governor.

 

Sec 29b – Declining enrollment

Governor: Appropriates $200 million to allocate 70% of the district’s per-pupil foundation for each “lost” student between this year’s count and the 2021-2022 school year count.

House Committee: Does not include this section.

Senate Committee: Does not include this section.

 

Sec. 31a – At-risk funding

Governor: Increases funding by $12.5 million and states the allocation for each district should be equal to 35% of the eligible amount before any proration occurs (current law is 30%).

House Committee: Increases funding by $12.5 million and concurs with language stating the allocation for each district should be equal to 35% of the eligible amount before any proration occurs.

Senate Committee: Maintains current year funding and proration percentage. Increases child and adolescent health center funding by $2 million.

 

Sec 31b – Balanced calendar

Governor: Does not include this section.

House Committee: Creates new section appropriating $25 million for grants up to $150,000 per school building that implements a first-time balanced calendar for 5 years beginning in 2022-2023 school year.

Senate Committee: Does not include this section.

 

Sec 31n – School mental health and support services

Governor: Maintains funding at 2020-2021 levels.

House: Increases funding by $4.25 million.

Senate: Maintains funding at 2020-2021 supplemental budget level of $56.9 million.

 

Sec. 32d & 39 – Great Start Readiness Program

Governor: $32 million increase for the Great Start Readiness Program to bring the full day rate from $7,255 to the minimum foundation allowance of $8,275.

House Committee: Increases funding by $5 million and increases full day rate by $150 and half day by $125.

Senate Committee: Concurs with the Governor.

 

Sec 35g – Out-of-school learning

Governor: $120 million for summer learning engagement opportunities for 2021 and 2022. This funding would flow through ISDs and could be used for various programs, including partnership with outside agencies and nonprofits.

House Committee: Does not include this language. Instead, this new section appropriates $1 million for districts to establish/maintain innovative community libraries.

Senate Committee: Does not include this section.

 

Sec. 41 – English Language Learners

Governor: Increases funding by $260,000 for a 2% increase over last year.

House Committee: Maintains current funding level.

Senate Committee: Increases funding by $390,000, a 3% increase.

 

Sec 51f – Special education funding

Governor: Increases funding for special education programs by $1.4 million.

House Committee: Maintains current funding level.

Senate Committee: Concurs with Governor.

 

Sec. 81 – ISD funding

Governor: Increases funding to ISDs by $1.38 million for a 2% increase over last year.

House Committee: Maintains current year funding.

Senate Committee: Concurs with Governor but bases funding on the condition that charter schools be included in communications particularly related to COVID-19.

 

Sec 97 – School Safety Grants

Governor: Does not include this section.

House: Creates new section appropriating $10 million for competitive school safety grants with a cap of $50,000 per building and $250,000 per district.

Senate: Does not include this section.

 

Sec. 101 – Days and hours

Governor: Removes all references to pandemic learning for the 2020-2021, the section returns to language from beginning of 2019-2020 school year.

House Committee: Concurs with Governor.

Senate Committee: Concurs with Governor.

 

Sec 104h – Benchmark assessments in 2022-2023 school year

Governor: Does not include this section.

House Committee: Creates new section and appropriates $11.5 million for districts to implement a benchmark assessment system for the 2022-2023 school year that meets certain requirements.

Senate Committee: Does not include this section.

 

Sec. 147 – MPSERS rates

Governor: Makes annual adjustments to all of the rates.

House Committee: Concurs with Governor but allows for further adjustments if House Bill 4261 is enacted (requiring the use of level-dollar method for paying off unfunded actuarial accrued liability).

Senate Committee: Concurs with the Governor.

 

Sec 147a – MPSERS offset

Governor: Maintains the $100 million to offset district retirement costs and increases the funding to cover the increase in normal costs for districts by $22.3 million.

House Committee: Maintains the $100 million to offset district retirement costs but removes all funding to cover increased normal costs.

Senate Committee: Concurs with the Governor.

 

Sec. 147c – MPSERS rate cap

Governor: Increases the average rate cap per-pupil amount by $84, to $911, and sets the rate cap per-pupil for districts to a range of $5-$4200.

House Committee: Concurs with Governor but allows for further adjustments if HB 4261 is enacted.

Senate Committee: Concurs with Governor.

 

Sec 147d – MPSERS one time payment

Governor: Does not include this section.

House: Creates a new one-time appropriation of $250 million to pay for MPSERS unfunded accrued liabilities.

Senate: Does not include this section.

 

Sec 152b – reimbursement to nonpublic schools

Governor: Repeals this section.

House: Appropriates $2.5 million.

Senate: Appropriations $250,000.