0196: GOVERNOR'S RECOMMENDATION (Date Completed: 2-14-13)

FY 2013-14 EDUCATION BUDGET S.B. 196: GOVERNOR'S RECOMMENDATION

Senate Bill 196 (as introduced) Vehicle for Governor’s Recommendation line items is House Bill 4328

Committee: Appropriations

FY 2012-13 Year-to-Date Gross Appropriation.....................................................................

$328,909,900

Changes from FY 2012-13 Year-to-Date:
1. Child Development and Care IDG Reduction. Governor included a $12.5 million reduction in an IDG with the Department of Human Services (DHS) to reflect actual DHS expenditures for child development care external support, $11.8 million of which was transferred to DHS to help address a statewide Temporary Assistance for Needy Families (TANF) shortfall. The remaining $646,900 was transferred into child development care public assistance, resulting in a gross reduction of $11.8 million ($0 GF/GP).	(11,820,600)
2. Charter School Support. Governor proposed a $255,000 ($127,500 GF/GP) and 2.0 FTE increase for the Office of Field Services to support and monitor newly opened charter schools resulting from the lifted charter school cap with the enactment of PA 277 of 2011.	255,000
3. School Improvement Plans. Governor proposed a $137,500 ($137,500 GF/GP) and 1.0 FTE increase to allow the Department to review up to 300 School Improvement Plans annually (an increase from the current 180 reviews annually).	137,500
4. School Aid Transfer - Libraries. Governor included a $2.8 million ($2.8 million GF/GP) transfer from the School Aid budget to consolidate all library funding into one budget. The transfer includes funding for State aid and renaissance zone reimbursements.	2,804,300
5. MPSERS Rate Cap - Libraries. Governor included $1.3 million ($1.3 million GF/GP) to cover MPSERS contributions to libraries over the established cap on local contributions with the enactment of PA 300 of 2012.	1,300,000
6. Michigan College Access Network. Governor proposed the transfer of the Michigan College Access Network ($2.0 million Gross, $2.0 million GF/GP) into the Higher Education budget to better align with program objectives.	(2,000,000)
7. Accounting Support. Governor included a $114,000 ($13,700 GF/GP) and 1.0 FTE increase for additional accounting support for the Child Development and Care program not transferred from DHS with the creation of the Office of Great Start.	114,000
8. Information Technology Services. Governor included $104,000 ($31,700 GF/GP) for increased rates for the Department of Technology, Management, and Budget's statewide investment in wireless equipment, bandwidth infrastructure, and other technical increases.	104,000
9. Carl D. Perkins Grant. Governor proposed a $40,000 ($40,000 GF/GP) increase to meet the Carl D. Perkins Career and Technical Education grant's maintenance of effort requirements; this is a $38.7 million Federal grant.	40,000
10. Economic Adjustments. Includes $249,400 Gross and $44,100 GF/GP for OPEB and $2,151,200 Gross and $466,000 GF/GP for other economic adjustments.	2,400,600
11. Other Changes. Includes a reduction of $2.7 million ($0 GF/GP) for Federal and private funding authorization to reflect actual revenue and $674,300 ($164,100 GF/GP) for the expiration of one-time funds from FY 2012-13.	(3,356,300)

Total Changes.....................................................................................................................	($10,021,500)
FY 2013-14 Governor's Recommendation...........................................................................	$318,888,400

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.

FY 2013-14 DEPARTMENT OF EDUCATION BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2012-13 Year-to-Date:

1. "Standard Boilerplate" Deleted. The Governor proposed to eliminate the following sections of "standard" boilerplate that were consistent among departmental budgets: 202 (Management and Budget Act); 204 (Civil Service Commission billing); 205 (departmental use of the Internet to fulfill reporting requirements); 209 (Department of Technology, Management and Budget (DTMB) user charges); 210 (work projects carried forward); 212 (Buy American/Buy Michigan); 215 (out-of-state travel limitations); 216 (employees who communicate with Legislature); and 218 (retention of records).

2. Other Deleted Sections. Governor proposed to eliminate the following sections specific to the Department of Education budget: 208 (requiring districts to maintain complete personnel records); 211 (appeal of AYP status); 220 (providing reports and data requests within a certain time period); 225 (investigation and report of pupil membership fraud); 229 (activities and duties completed no later than deadlines); 501 (maintain professional personnel register and certificate revocation/felony conviction files); 601 ($600,000 and 5.5 FTE earmark for charter schools office); 803 (intent for Library of Michigan to keep its component programs together, with genealogical collections exemption); 901 (notification of Federal and private grants received); 902 (funding uses for college access grant program); 903 (report on cyber schools); 1001 (eligible child care providers report); and 1002 (OGS report on an early childhood learning and development plan).

3. Changes to Sections. Governor proposed to keep, but revise, the following sections: 203 (definitions - Governor added definitions relevant to the School Aid library funds transfer); 207 (website with pertinent fiscal information- Governor changed required administrator to DTMB); and 214 (out of State travel conditions - Governor removed certain conditions and report information); 405 (assistance with securing Medicaid reimbursements for eligible services provided in schools - Governor moved from MSDB to general boilerplate) and 1003 (Early Childhood Investment Corporation (ECIC) report - Governor removed certain information required in the report and removed the RFP requirement for certain ECIC contracts).

4. Additional Boilerplate. Governor proposed adding the following sections: 6-206 (Department scorecard maintained online); 6-212 (payments for sub-recipient monitoring services); 6-602 (renaissance zone reimbursements for libraries); 6-603 (MPSERS rate cap payments to libraries).

Date Completed: 2-14-13 Fiscal Analyst: Cameron S. Mock

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.