FY 2021-22 SCHOOL AID BUDGET                                                               H.B. 4411 (S-1): 

                                                                              SUMMARY OF BILL ON THIRD READING

 

 

 

 

 

 

 

House Bill 4411 (Substitute S-1)                                                 Throughout this document Senate means Senate Substitute                                                                                            

Committee:  Committee of the Whole

 

 

 

 

 

CHANGES FROM

FY 2020-21 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2020-21

YEAR-TO-DATE*

FY 2021-22

HB 4411 (S-1) REC.

FY 2021-22

HB 4411 (H-2) HOUSE-PASSED

SENATE

AMOUNT

HOUSE

AMOUNT

FTE Positions.............................................................

 0.0

 0.0

 0.0

 N/A   

 N/A   

GROSS.............................................................

 15,525,164,800

 17,134,110,700

 16,807,871,500

 1,608,945,900

 1,282,706,700

Less:

 

 

 

 

 

   Interdepartmental Grants Received.....................................................................

 0

 0

 0

 0

 0

ADJUSTED GROSS.............................................................

 15,525,164,800

 17,134,110,700

 16,807,871,500

 1,608,945,900

 1,282,706,700

Less:

 

 

 

 

 

   Federal Funds.....................................................................

 1,806,878,500

 2,179,478,500

 1,943,478,500

 372,600,000

 136,600,000

   Local and Private.....................................................................

 0

 0

 0

 0

 0

TOTAL STATE SPENDING.............................................................

 13,718,286,300

 14,954,632,200

 14,864,393,000

 1,236,345,900

 1,146,106,700

Less:

 

 

 

 

 

   Other State Restricted Funds.....................................................................

 13,667,321,700

 14,869,232,200

 14,784,393,000

 1,201,910,500

 1,117,071,300

GENERAL FUND/GENERAL PURPOSE.............................................................

 50,964,600

 85,400,000

 80,000,000

 34,435,400

 29,035,400

PAYMENTS TO LOCALS.............................................................

 13,546,289,200

 14,744,857,700

 14,668,145,400

 1,198,568,500

 1,121,856,200

*As of February 8, 2021.


 

 

Gross

GF/GP

FY 2020-21 Year-to-Date Appropriation...............................................

$15,525,164,800

$50,964,600

 

Changes from FY 2020-21 Year-to-Date:

 

 

   1.   Foundation Allowance. The House proposed a 2x increase ranging from $171 to $342 per pupil ($421.0 million), bringing the minimum foundation allowance to $8,453 per pupil, and then included a separate equity payment to provide all districts with funding of $8,700 per pupil ($262.0m). The Senate closed the gap by statutorily funding the minimum foundation allowance at $8,700 per pupil and provided a $171 per pupil payment to all districts at or above the target ($683.0m). The Senate included a $3.0 million equity payment for out-of-formula districts to ensure they receive the $171 per-pupil increase. Neither the House nor Senate included the Governor's February recommendation to reduce cyber schools by 20%. Finally, the bill provided $40.0 million for taxpayer equity related to the State share of the foundation allowance for hold harmless districts.

723,000,000

0

   2.   Enrollment Stability Supports. The Governor recommended $200.0 million to provide declining enrollment districts with funding to restore 70% of their enrollment decline from FY 2020-21 to FY 2021-22. The Senate and House did not include.

0

0

   3.   MPSERS Payments. The Governor increased MPSERS payments by a total of $145.4 million, for a total of nearly $1.6 billion. The Senate and House added another $140.0 million.

285,354,000

(10,000)

   4.   School Nurses and Counselors. The House and Senate included $240.0 million for school nurses and counselors.

240,000,000

 

   5.   Reading Scholarships. The Senate included $155.0 million Federal funds for reading scholarships to be administered by Grand Valley State University.

155,000,000

 

   6.   Balanced Calendar. The Senate included $75.0 million Federal for one-time HVAC (and other capital) improvements for districts operating balanced year-round calendars, and $60.0 million SAF to provide a 3% foundation allowance increase for ongoing operational cost increases for districts operating a balanced calendar.

135,000,000

 

   7.   Out-of-School Learning Opportunities. The Governor proposed a second year of funding for summer school and other out-of-school learning opportunities to address learning loss from COVID-19. Supplemental 2021-6 included the first-year funding request. The Senate and House did not include.

0

0

   8.   State Special Education Mandatory Cost Reimbursement. The Governor, Senate, and House included an increase of $44.4 million for required payments.

44,400,000

0

   9.   Great Start Readiness Program (GSRP). Per-child full day funding was increased to $8,700 ($47.5 million) and Federal funds were used to expand the program by adding more slots.

168,520,000

0

10.   Inkster Debt. The Senate and House included $25.5 million to pay off Inkster Schools' remaining debt.

25,500,000

 

11.   Ongoing Federal Grants. Ongoing Federal grants were increased $15.6 million, for a total of $1.8 billion in ongoing Federal funds.

15,600,000

0

12.   Other New Programs - Senate. The Senate included $6.0 million for PRIME (career and technical education) schools, $4.0 million for LETRS (early literacy), $2.5 million for CTE programming at COOR ISD, $1.4 million for Flint Early Childhood Collaborative, $450,000 for Mi Alma, $1.7 million for the Jewish Federation for camps and schools, and $1.0 million for Huron Valley for transportation costs. The Senate concurred with the House to include $10.0 million for school safety grants, $3.75 million for YMCA Youth in Government, $1.9 million for Navigator 360, $1.5 million for Project SEARCH, $1.0 million for nonpublic schools reimbursement for mandates, $1.5 million for a study on reporting and noninstructional costs, $1.5 million for a study on attracting and retaining special education personnel, $1.0 million for Flint Educare, $2.0 million for math essentials, $3.0 million for a special education learning library, $7.5 million for CTE equipment grants, $11.5 million for the development of benchmark assessments for the 2022-23 school year, $1.0 million for innovative community libraries, and $1.5 million for dental screenings.

65,731,900

25,731,900

13.   Program Increases. The Senate increased Imagine Learning by $4.5 million, Algebra Nation by $1.0 million, rural districts by $820,000, island districts by $600,000,  dropout recovery by $4.0 million, school mental health grants to health clinics by $5.0 million, 10 Cents a Meal by $2.5 million, Michigan Education Corps by $727,000, Orton Gillingham by $500,000, Boys and Girls Club by $1.0 million, and Chaldean Community Foundation by $250,000,     The Senate concurred with the House on the following increases: $34.2 million for ISD special education millage equalization, $12.2 million for bilingual education, $30.0 million for special education nonmandated additional reimbursements, $7.0 million for early on, $500,000 for court-placed pupils, $694,400 for school lunch, $7.4 million for school breakfast, PILT/Promise Zones/Brownfields by $11.7 million, At Risk by $2.5 million, ISD operations by $2.8 million, school mental health grants to ISDs by $12.0 million, robotics at nonpublic schools by $300,000, and robotics at public schools by $323,200.

142,445,200

12,577,000

14.   Center for Educational Performance and Information (CEPI). The Senate concurred with the House to increase funding to CEPI by $2.0 million, bringing total State support of CEPI to $18.8 million.

2,000,000

2,000,000

15.   GF/GP to School Aid Fund (SAF) Fund Shift.

0

(4,167,000)

16.   Foundation Allowance Cost Adjustments. Due primarily to declining enrollment, foundation allowance costs are reduced $221.0 million.

(221,000,000)

0

17.   Elimination of One-Time Per-Pupil Payment. The Governor, House, and Senate removed funding of roughly $66 per pupil in one-time funding.

(95,000,000)

0

18.   Elimination of Growing Districts Payment. The Governor, House, and Senate removed funding for districts whose normal pupil membership blend exceeded the 'superblend' that is in place for FY 2020-21.

(66,000,000)

0

19.   Elimination of Categoricals. The Senate concurred with the House to eliminate virtual learning supports ($2.0 million), school meal lunch debt ($1.0 million), a placeholder for the Connecting Information in Education Commission ($100), teacher retention incentives ($5.0 million), the kindergarten entry observation tool ($1.5 million), and the virtual learning study ($150,000).

(9,650,100)

(1,650,100)

20.   School Aid Fund Cash Flow Borrowing. The line item for cash for borrowing was reduced by $1.9 million, for a remaining total of $9.5 million.

(1,900,000)

0

21.   Other - Deposits into the School Aid Stabilization Fund (SASF) and the MPSERS Reforms Reserve Fund. The House included a $100.0 million School Aid Fund deposit into the SASF and a $560.0 million deposit into the MPSERS Fund. The Senate did not include either deposit.

0

0

22.   Other - ESSER 3 Equity Payment for FY 2020-21. While this analysis is for FY 2021-22, it is worth mentioning that the bill includes $362.0 million in Federal ESSER 3 funds to provide equalization payments to ensure districts receive at least $1,093 per pupil in Federal ESSER 3 funding.

0

0

23.   Economic Adjustments. Includes negative $55,100 Gross and negative $46,400 GF/GP for total economic adjustments, of which an estimated negative $259,800 Gross and negative $222,500 GF/GP is for legacy retirement costs (pension and retiree health).

(55,100)

(46,400)

 

Total Changes.........................................................................................

$1,608,945,900

$34,435,400

FY 2021-22 Senate Revised Recommendation Appropriation.................

$17,134,110,700

$85,400,000

 


 

Boilerplate Changes from FY 2020-21 Year-to-Date:

   1.   Membership Definitions for Pandemic Learning. The Governor, House, and Senate eliminated special membership provisions and definitions related to pandemic learning. The calculation of pupils in membership for FY 2021-22 would be 90% applied to the count of students in October 2021 plus 10% of the count of students in February 2021. (All pandemic-related 'Return to Learn' provisions were removed from the bill.) (Sec. 6, 21f, 101)

   2.   Teacher of Record/Definition of Class. The Senate extended by one year the date by which districts have to ensure that all teachers are 'appropriately placed'. (Sec. 6(8))

   3.   Pupil Accounting Manual. The Senate added a date (March 31) by which any changes to the pupil accounting manual must be made, in order to be effective for the following school year and required MDE to provide districts in violation of the PAM with a 30-day window to correct the violations. (Sec. 18)

   4.   Reduction to Cyber School Foundation Allowance. The Governor proposed a 20% reduction. The Senate and House did not concur. (Sec. 20)

   5.   At Risk. The Governor, House, and Senate increased the percentage, from 30% to 35%, of the amount higher-funded districts receive in per-pupil at risk payments as compared to lower-funded districts. The Senate also added a new allowable use of up to 10% of at risk funds for districts to provide evidence-based pre-kindergarten instructional and non-instructional services to children who meet at risk criteria. The Senate concurred with the House to broaden At Risk to include prekindergarten students. (Sec. 31a)

   6.   10 Cents a Meal Administrative Funding. The Governor changed the funding designated for administration, from up to 10% by districts and 6% by MDE, to up to 10% for MDE and 1% for each project partner. The Senate reduced this to 5% for MDE (because the overall funding for the program was doubled). (Sec. 31j)

   7.   ISD Mental Health Grants. The Senate included a change to the funding for ISDs such that each ISD would get a base grant of $575,000 (the FY 21 amount) and the rest of the funding would be distributed based on population. Also, the Senate and House included language encouraging ISDs to provide suicide prevention and awareness education and counseling. (Sec. 31n)

   8.   GSRP. The Senate increased from 10% to 15% the percentage of children who can enroll in GSRP classrooms who are in families above the required income levels. (Sec. 32d)

   9.   Early Literacy. The Senate retained both existing early literacy programming and added $4.0 million and substantive changes throughout the section to focus on professional development for early literacy teachers and coaches. (Sec. 35a)

10.   ISD Operational Funding. The Senate and House added language requiring ISDs to include public school academies in all communications where traditional local districts are included, or not receive operational funding. (Sec. 81)

11.   CEPI Reporting. The Governor included language narrowing CEPI's reporting to those areas where State or Federal laws require the reporting. The Senate and House did not include. (Sec. 94a)

12.   Benchmark Assessment Reporting. The Senate concurred with House language requiring districts, in order to receive State aid, to publicly present the results from benchmark assessments and local benchmark assessments, and the progress toward meeting educational goals. (Sec. 98b)

13.   Adult Education. The Governor and Senate changed the payments for adult education from the amounts paid in FY 2018-19 to a formula based on each ISD's population aged 18-24 who are not high school graduates (60%), each ISD's proportion of population aged 25 and up who are not high school graduates (35%), and each ISD's proportion of the State population age 18 and up who lack basic English language proficiency (5%). (Sec. 107)

14.   MPSERS. The Senate concurred in House language allowing the Office of Retirement Services to adjust employer contribution rates if necessary. (Sec. 147 and 147c)

15.   Shared Time. The Governor included new language requiring a district offering shared time programs to report each course for which participation by nonpublic or homeschool students exceeds 50% of all students. The Senate and House did not concur. (Sec. 166b)

 

Date Completed:  6-30-21                                                     Fiscal Analyst:  Kathryn Summers

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.