| Changes from FY 2010-11 Year to Date:
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| Items Included by the Senate and House
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| 1. Proration Language. Governor, House, and Senate proposed to change the proration formula to include the school aid support of community colleges and universities. In other words, if a shortfall in School Aid Fund occurred and proration was implemented, a reduction would be spread proportionally across K-12, community colleges, and universities in proportion to their share of the total SAF appropriation. (Sec. 11)
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| 2. FY 2012-13 Earmark of Foundation Allowance Funding. Governor earmarked $300.0 million of foundation allowance funding that would be available only to those districts that charged their employees the same percentage of health care costs that State employees pay. If districts did not do so, their foundation allowance payment would be further reduced beyond the level enacted for FY 2011-12. (Sec. 22b(12)) Senate and House did not include.
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| 3. ISD Operational Funding Guarantee. Governor, House, and Senate proposed to eliminate language protecting ISD operational funding from falling below certain levels paid in 1994-95. (Sec. 81(6))
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| 4. MPSERS Retirement Contribution Rate. For employees hired before July 1, 2010, the MPSERS contribution rate is 24.46% of payroll in FY 2011-12 and 27.37% of payroll in FY 2012-13. For employees hired on or after July 1, 2010, the MPSERS contribution rate in FY 2011-12 is 23.23% of payroll and, in FY 2012-13, the rate is 26.14%. (Sec. 147)
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| Conference Agreement on Items of Difference
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| 5. Pupil Count Day. Conference concurred with the Governor and Senate to change the pupil count day from the last Wednesday in September to the first Wednesday in October. House did not include this change. (Sec. 6)
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| 6. Half-Day Kindergarten. Senate included a change in funding for kindergarten such that programs that operate half day would receive half funding, rather than current-law full funding. The Senate made this change effective for the upcoming school year, FY 2011-12. House included this change, but made it effective in FY 2012-13. Conference concurred with the House to make the change effective in FY 2012-13. (Sec. 6(4)(r))
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| 7. Counting Certain Vocational Education Pupils in Membership. Senate included language allowing educating districts to count certain vocational education pupils in membership, without the approval of the district of residence. Conference did not include these definitions. (Sec. 6 (6)(p)(q) and (r))
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| 8. FY 2012-13 Appropriations. Senate included language stating the intent of the Legislature to appropriate funding in FY 2012-13 at FY 2011-12 levels, adjusted for caseload and cost factors. House included actual FY 2012-13 appropriations, throughout the bill. Conference concurred with Senate. (Sec. 12)
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| 9. Reporting of Health Care Bids. Senate included a new requirement that districts post the health care bids required under the Public Employees' Health Benefit Act to their web sites. Conference concurred. (Sec. 18)
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| 10. Best Practices Incentive Grants. Senate included $200.0 million for FY 2011-12 for best practices incentive grants. House included the grant, but without an appropriation. Conference appropriated $154.0 million to provide $100 per-pupil one-time grants to districts meeting four of five criteria: providing a dashboard with indicators, obtaining competitive bids on non-instructional services, charging employees at least 10% of health costs, holding the policy for medical benefit plans (if directly employing staff), and continuing to implement consolidation plans. (Sec. 22f)
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| 11. Dearborn and Baldwin At-Risk Earmarks. Conference concurred with Governor to remove Dearborn and Baldwin from the list of districts eligible for At-Risk funding. The funding tied to those two districts (totaling $5.0 million) will remain and be redistributed to remaining eligible grantees. (Sec. 31a)
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| 12. Early Childhood Language. House included numerous changes to various sections of early childhood funding, including intent to consolidate funding into a block grant in FY 2012-13, changing fiduciary agents, maintaining the use of GSRP funds for Parents in Education programming, not including the definition of full-day GSRP programming, and other items. Conference concurred with House. (Sections 32b, 32d, 32j)
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| 13. MPSERS Reserve for Retirement Obligation Reform. Conference included a new section allocating from the FY 2010-11 estimated year-end balance $133.0 million to the MPSERS reserve for retirement obligation reform. Conference included language stating the intent of the legislature to appoint a workgroup to examine potential reforms. (Sec. 147b)
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| 14. Health Care Costs. Senate included language encouraging districts to review their health care costs and consider additional employee cost sharing. House did not include this language. Conference did not include. (Sec. 166f)
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