[nfbmi-talk] pdf file related to newsline funding

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FY 2009-10 SCHOOL AID BUDGET H.B. 4447: GOVERNOR’S RECOMMENDATION 

House Bill 4447 (as introduced) 

Committee: Appropriations 

FY 2008-09 Year-to-Date Gross Appropriation ........................................................................

Changes from FY 2008-09 Year-to-Date: 

1. Technical Baseline Adjustments. Numerous technical adjustments to the budget were 

made, primarily associated with changes in pupil estimates, taxable values, and special 

education costs. These adjustments merely reflect the changes in funding necessary to 

hold the budget stable from one year to the next. The costs are declining substantially 

overall due to the decline in pupils. 2. Foundation Allowance Reductions. The Governor recommended a $59 per pupil 

reduction (saving $94.4 million) to each district's foundation allowance, a $10.0 million 

reduction to Section 20j allocations (affecting 40 districts), the elimination of payments in 

lieu of levying mills ($0.7 million), and the elimination of foundation allowance adjustments 

to Wayne-Westland ($6.1 million), Garden City and Huron ($1.2 million), and Gibraltar 

($0.9 million). 3. Intermediate School District (ISD) Reductions. The Governor recommended reducing 

ISD operational funding by 20% (saving $16.3 million), eliminating ISD early childhood 

grants ($5.0 million), and eliminating an earmark of vocational education funding to 

Oakland ISD. 4. Elimination of Specific District Earmarks. The Governor recommended eliminating the 

following non-foundation allowance earmarks to specific districts: Dearborn's At-Risk 

payment ($5.9 million), Grosse Pointe/Harper Woods pilot programs ($1.5 million), 

Redford Union's deficit elimination payment ($0.5 million), Pontiac's crisis intervention 

funding ($0.3 million), Clintondale's deficit mills' payment ($0.3 million), and Chippewa 

Valley's payment to offset Headlee millage rollbacks ($0.2 million). 5. Reduction in Declining Enrollment Grants for Small, Rural Districts. The Governor 

recommended reducing by 50% the declining enrollment grants for small, rural districts 

(fewer than 1,550 pupils and fewer than 4.5 pupils per square mile). This was 

accomplished by changing the formula from a three-year average to a two-year average. 

The funding for other declining enrollment districts was not reduced, and remains at $20.0 

million. 6. Elimination of Programs. The Governor recommended eliminating the following 

programs in their entirety: Bilingual Education ($2.8 million), Great Start Ages 0-3 Child 

Abuse Prevention ($2.1 million), funding for MBT cuts to out-of-formula districts ($1.3 

million), small district transportation grants ($1.3 million), pre-college engineering ($1.0 

million), isolated districts funding ($0.8 million), after-school pilot math program ($0.7 

million), Advanced and Accelerated ($0.3 million), Cultural Access grants ($0.1 million), 

and Newsline services for the blind ($0.1 million). 7. Other Changes. Other programs recommended for reduced funding are a $4.0 million cut 

to Adult Education and cost adjustments for student assessments of $941,300. Total Changes..............................................................................................................................

FY 2009-10 Governor’s Recommendation................................................................................

$13,378,906,800 

(251,065,200) 

(113,322,300) 

(21,732,900) 

(8,525,000) 

(5,300,000) 

(10,420,100) 

(4,941,300) 

 ($415,306,800) 

$12,963,600,000 

Bill Analysis @ http://www.senate.michigan.gov/sfa 

FY 2009-10 SCHOOL AID BUDGET BOILERPLATE HIGHLIGHTS 

Changes from FY 2008-09 Year to Date: 

1. Schools of Choice within DPS' Boundaries. The Governor's budget recommended restoring the prohibition that 

school districts could not operate schools within the boundaries of the Detroit Public Schools, without DPS' approval. 

(Sec. 6(6)) 2. School Readiness Program. Numerous language changes in the statute governing the program for at-risk four-year 

olds were proposed in the Governor's budget. The only substantive change in the proposal was the recommendation 

that the Department have the ability to promulgate rules governing the certification of teachers in the program. (Sec. 

32d, 32l, and 39) 3. Itinerant Special Education Funding Redistribution. The Governor proposed to eliminate language requiring any 

special education funds that would otherwise lapse to be redistributed to districts and intermediate districts whose 

itinerant staffs had changed employers (and therefore changed reimbursement) since FY 2003-04. (Sec. 51a(7)) 4. Michigan Virtual University. The Governor proposed eliminating the requirement that the MVU explore options for 

providing rigorous civics curricula online, modified the professional development programs developed such that they 

teach Michigan educators how to develop and deliver online services, and mandated that the MVU offer courses and 

resources in the fields of science, math, and engineering for middle and high school students as part of a 

comprehensive stem academy, developed in conjunction with the math and science centers and the Department of 

Education. The MVU also was directed to implement an "Algebra 4 All" initiative to offer online and face-to-face 

professional development opportunities for math teachers in grades 8-12 that promote best practices for teaching 

algebra to all students. (Sec. 98) 5. Adult Education. The Governor proposed revising the Adult Education program from a formulary grant to a 

competitive application process, focused on a regional partnership between a district or ISD and other entities in the 

community that are "position to determined the basic skills development needs of the region", which must include at 

least one postsecondary institution and one workforce development partner. (Sec. 107) 6. Retirement Rate. The bill proposed the FY 2009-2010 retirement rate to increase by 0.4%, from 16.54% to 16.94%, 

with an amortization period of 28 years. (Sec. 147) Date Completed: 2-26-09 Fiscal Analyst: Kathryn Summers-Coty 

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. 

HIk12_gr.doc