Carolyn Claerhout MPAAA Legislative Chairmpaaa.org/images/downloads/Conference_Spring_2015/legislative... · 4/21/2015 1 Legislative Update MPAAA 2015 Spring Conference Carolyn Claerhout

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Legislative Update

MPAAA 2015 Spring ConferenceCarolyn Claerhout

MPAAA Legislative Chair

Overview• 14-15 School Aid Supplemental• School Funding 101 • Ballot Proposal and Tie Barred Bills• Adequacy Study• Days and Hours Reminder• Kindergarten Start Age• Immunization Waiver Change• 64b Dual Enrollment• Other Laws and Issues• School Aid Funding Proposals for 2015-16

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Supplemental School Aid 2014-15• 2015 PA 5, HB 4110 eff 3/10/15• General Fund shortfall of $456m used School Aid Fund to fix• MPSERS one time payment of $108m, reduced by $88.4m (§147d)• Reduction in Foundation Allowances $71m (§§22a, 22b) and Special Ed $24m

(§§51a, 51c) based on revised pupil counts• Eliminate $1.2m for online nutrition program (§31g)• Reduce by $1m cash flow borrowing costs based on lower than anticipated

interest rates (§11m)• Transfer $2.2m to fund Library MPSERS from MDE to SAF (147c)• Replace $167m GF Funding with SAF for Community Colleges and their MPSERS

state share, now Community Colleges 100% funded by SAF (§201) = $204 per pupil• Replace $2m GF MPSERS support for Higher Ed with SAF (§236) so SAF for Higher

Ed = $136 per pupil

Revised deadline for financial reporting from Oct 15 to Nov 1 (NOTE: 2014 PA 196, 2014-15 School Aid Budget had changed deadline from Nov 15 to Oct 15) (§18) and more expense reporting (also in SB 80). . . . MCL 388.1618

Michigan Constitution Mandates Free Public Education

• Article VIII, Section 2The legislature shall maintain and support a system of free public elementary and secondary schools as defined by law.

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School Funding

Source for School Funding Slides: “The Basics of School Funding,” Kathryn Summers, Associate Director, Senate Fiscal Agency, September 2014 http://www.senate.michigan.gov/sfa/Departments/DataCharts/DCk12_SchoolFundingBasics.pdf

School Funding Before Proposal A

• Before Proposal A, schools were financed primarily through local property taxes (69% local, 31% state)

• In July, 1993, PA 145 of 1993 exempted all real and personal property taxes to fund schools beginning in 1994

• The law eliminated 64% ($6.4b) of total k-12 school funding ($10b). The Legislature had 5 months to create a new funding structure

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School Funding Proposal A

Proposal A approved by voters revamped the way the state funds k-12 education 1994-1995 (80% state, 20% local)• reduced property taxes and limited annual

property tax to lower of inflation rate or 5%, increased sales tax and use tax to 6% and earmarked increase for school aid

• reduced funding disparities among school district by basing school aid on per pupil foundation allowance

Proposal A Then and Now

1994-95 minimum foundation allowance $4200; basic foundation allowance $5000, if below $5000 target then 2x formula; and cut off amount of $6500, anything above that was raised from local mills (hold harmless districts)2014-15 minimum foundation allowance $7126, basic $8099, charter schools receive maximum of $7128 (no such thing as hold harmless district)Since 2012-13 School Aid Fund also supports Postsecondary Budgets

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School Funding 2014-15

• Total k-12 budget $13.9b ($12.1 state + $1.8 federal)

• Foundation allowance is 65% of k-12 budget• 2014-15 -

– 1,352,500 FTEs in 549 local school districts and 159,500 in 300 charter schools

New Proposal 15-1: Roads and Schools

• May 5, 2015 election (today)• 1 cent sales tax increase to help fund roads

and schools• Package of 9 bills tied to proposal, it’s all or

nothing • IF it passes . . . .

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MI Constitution Art IX Amended

• Section 8 – sales tax increase from 4 to 5% (Proposal A’s 2% increase was handled differently); after 10/1/15 no sales tax on gas at pump

• Section 10 – sales tax increase from 4 to 5%; local government revenue sharing

• Section 11 – eliminate higher ed access to School Aid ($200m) but allow access to community colleges and CTE programs and student scholarships for same; 12.3% use tax for SAF

Tie-Barred bills

• HB 5477 current 19¢ fixed gas tax to 14.9% of ave. wholesale price of fuel ($1.2b for roads)

• SB 847 increase earned income tax credit from 6 to 20% and reduces income qualifiers for homestead property tax credit (offset regressive impact increase in sales tax has)

• HB 4630 increase truck registration fees and eliminate depreciation tax rates for cars, vans and trucks

• SB 80 $40m for at-risk funding

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Adequacy Study

• 2014 PA 555, SB 423, eff 3/31/15, MCL 380.1281a

• Dept. of Tech, Mgmt. & Budget contract for comprehensive statewide cost study to determine per pupil resources needed for public education to provide successful completion of MI curriculum requirements

• Must be completed in one year

Days and Hours Reminder

• 2015-16 175 days, 1098 hours, and no p.d. unless cba in effect as of 7/1/13 until cba expires

• 2016-17 180 days, 1098 hours unless cba in effect as of 6/24/14 MCL 388.1701(3)

• HB 5669, 2014 PA 483, eff 1/13/15, LEAs, PSAs, ISDs provide at least 5 days of PD each year; state approved nonpublic school may provide same PD for nonpublic school teachers MCL 380.1527

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Kindergarten Start Age

• Cleanup bill, 2014 PA 479, SB 492, eff 1/13/15 to make School Code MCL 380.1147 match School Aid MCL 388.1606(4)(l)(iii)

• 2015-16 and thereafter 5 by Sept 1• Parent waiver still– if 5 by Dec 1 – parent

notifies district in writing (no longer a June 1, August 1 deadline for parent notifications), includes SOC district and PSAs MCL 380.1147

• MDE’s interpretation since June 2014

Kindergarten Start Age

• Not a complete cleanup though because when changed kindergarten start age 2012 PA 198, HB 4513, eff 6/26/12 also amended MCL 380.1147(1) for districts who don’t provided kindergarten (are there any?) to enroll a child who is 5 by first day of school to attend school in district (1st grade?)

• Before the 2012 amendment, the age was 6 by the first day of school for districts that didn’t provide kindergarten (1st grade) MCL 380.1147(1)

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Immunizations – Law Refresher

• Child enrolling in a public or nonpublic school for first time or enrolling in 7th grade, must submit immunization record, doctor’s statement or nonmedical waiver MCL 380.1177(1)

• Schools must report to MI Dept. of Community Health immunization status of newly enrolled and 7th grade by Nov 1 and update it Feb 1 MCL 380.1177(3)

• 5% state aid penalty for failing to comply MCL 388.1767

Immunization – Law Refresher• Person enrolling child for first time or in 7th grade, must

provide certificate of immunization state or exemption MCL 333.9208

• School shall not permit child to enter or attend school unless certificate indicates at least 1 dose of each immunizing agent for each disease given MCL 333.9208 (same for preschool, daycare MCL 333.9211)

• Child who enters school in September and not completed immunizations or filed exemption must be excluded from school by Feb 1 or within 4 months after enrolled MCL 333.9209

• If immunization level in grade or school falls below necessary levels, public or nonpublic school may require immunization as condition of admission MCL 333.9212

• Exemptions: physician certification for medical waiver; parent written statement for nonmedical waiver. MCL 333.9215

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Immunizations – New Waiver Rule• Waivers: medical and nonmedical• Medical signed by physician – no change• Nonmedical certified by county health department –

change R325.176 (12)

Effective January 1, 2015, child entering daycare, kindergarten, 7th grade or newly enrolled in school, parent must receive vaccine education from local health dept. to be issued a nonmedical immunization waiverMDCH Immunization Waiver Informationhttp://www.michigan.gov/mdch/0,4612,7-132-2942_4911_4914_68361-344843--,00.htmlhttp://www.michigan.gov/documents/mdch/Waiver_Flyer_for_schools_and_childcare_Ctrs_478621_7.pdf

Immunization Update – MDE Memo January 15, 2015

Effective January 1, 2015• Amend rule to reflect law change to report 7th

grade rather than 6th grade immunization status• Require parent education at time nonmedical

waiver signed and certified by local health dept.• Require use of State of Michigan Immunization

Waiver Form when waiver is signedhttp://michigan.gov/documents/mde/Immunization_479078_7.pdfhttp://www.michigan.gov/mdch/0,1607,7-132-2942_4911_4914---,00.html

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Dual Enrollment Incentive 64b

• 2014-15 $1.75m available to support 9-12 graders in dual enrollment

• $10 per credit hour up to 3 credits and $30 if successfully completed and awarded both high school and postsecondary credit = $60 per pupil

• District must have written agreement with postsecondary institution, agree to pay all eligible charges, award high school credit if pupil successfully completes course MCL 388.1664b

Dual Enrollment Incentive – MDE Memo January 29, 2015

• Section 64b Claim Worksheet available on CEPI’s website on MSDS page under “Resources”

http://www.michigan.gov/cepi/0,1607,7-113-986_50502---,00.html

• 2 page worksheet Page 1 is district information and affirmation statement and Page 2 is Student list by UIC, course name, college credits, successfully complete,

http://michigan.gov/documents/mde/Dual_Enrollment_Attendance_480153_7.pdf

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Section 31a At Risk

• MDE Memo August 21, 2014 on Legislative Changes to 31a At-Risk Programs http://michigan.gov/documents/mde/Section_31a_changes_466063_7.pdf

• MDE website dedicated to Section 31a At-Risk http://www.michigan.gov/mde/0,1607,7-140-6530_30334-43638--,00.html

• CEPI’s MSDS page under Resources is 31a at risk funding Eligibility Determination Flowchart http://michigan.gov/documents/cepi/31a_EligibilityFlowchart_483083_7.pdf

• Not covering 31a, it’s a separate session MCL 388.1631a

Cyber Bullying

• 2014 PA 478, SB 74, eff 3/15/15 amended the bullying policy to require LEAs, PSAs and ISDs to include cyber bullying by 9/15/15 and confidentiality for person reporting bullying

• Submit to MDE bullying incidents annually and MDE share report with public

• If modify bullying policy, submit copy to MDE within 30 days of modification MCL 380.1310b

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Cyber BullyingMDE Memo February 19, 2015

• Bullying policy must include cyber bullying• Must update bullying policy within 6 months of

March 31, 2015• Submit policy to MDE via MEGS+• If policy already meets new law submit to MDE

on or before May 31, 2015• MDE will collect bullying incident reports in SID

EOY submission beginning 2015-16http://www.michigan.gov/documents/mde/Cyber_Bullying_481850_7.pdf

Seat Time Waivers – MDE Memos

• Dec 4, 2014 Process for Approving STW for Feb 2015 Count http://www.michigan.gov/documents/mde/Seat_Time_475555_7.pdf

• Dec 4, 2014 Section 5-0-B Project Based Learning Option http://www.michigan.gov/documents/mde/5OB_475552_7.pdf

• March 12, 2015 Expansion of Grade k-5 STW Program http://www.michigan.gov/documents/mde/K-5_STW_483943_7.pdf

• April 2, 2015 Process for Approving Grade 6-12 STW for 2015-16 http://www.michigan.gov/documents/mde/Approving_STW_Process_486012_7.pdf

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“Parent Opt Out” of AssessmentsMDE Memo March 25, 26, 2015

• Parents have right to opt out of state assessments

• If opt out, counts against school and district participation rates (95%)

• Consequence - lower Scorecard outcomes• Benefit for parents – determine child’s

progress in learning content standardshttp://www.michigan.gov/documents/mde/OptOut_Position_485416_7.pdfhttp://www.mi.gov/documents/mde/OptOut_Position_485412_7.pdf

Graduation Requirements• 2014 PA 208, HB 4465 eff 3/31/15 Alg II credit in CTE

program, 1 health/gym credit fulfill .5 gym credit with extracurricular athletics or activities with physical activity (marching band), 2 foreign language credits in k-12, not just 9-12. MCL 380.1278a

• 2014 PA 209, HB 4466 eff 3/31/15 added anatomy and agricultural science to options for 3 science credits, CTE program fulfill many requirements, revised personal curriculum requirements MCL 380.1278b

• 2014 PA 288, SB 66 eff 3/31/15 MDE and schools share info regarding meeting grad requirements thru CTE MCL 380.1278c

• 2014 PA 293, HB 5793 eff 9/30/14 clarified foreign language requirement for class of 2016, not 2015 MCL 380.1278a

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Expense Reporting

• 2014 PA 476, SB 80, eff 3/31/15 Website: add policy on purchasing supplies, materials and equipment and policy on reimbursable expenses, and check register or statement of total amount of board/employee expenses reimbursed in school fiscal year MCL 388.1618

• 2014 PA 477, SB 81 eff 4/12/15 Adds PSAs and EAA to reimburse board member expenses, pursuant to board approval and under board policy MCL 380.1254 and amends ISD provision to include districts, PSAs, EAA to prohibit use of public funds for alcohol, jewelry, gifts, golf, illegal items MCL 380.1814

FOIA Law Amended eff 7/1/15

• 2014 PA 563, HB 4001 eff 7/1/15• Requires FOIA guidelines and procedures be

established and posted on website, standard fee form that itemizes fees and written public summary of FOIA guidelines/procedures

• Impacts responding to requests and charging of fees

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2015-16 School Aid Bill

• Governor’s Proposal http://www.michigan.gov/snyder/0,4668,7-277-61409_71099---,00.html

• House Bill 4089 http://legislature.mi.gov/doc.aspx?2015-HB-4089

• Senate Bill 130 http://legislature.mi.gov/doc.aspx?2015-SB-0130

• Comparison http://www.house.mi.gov/hfa/PDF/Summaries/School_Aid_FY16_Section_by_Section_HouseSubcommittee.pdf

• MSBO School Aid 2015-16 webpage http://www.msbo.org/school-aid-fund-2015-16

Governor’s Proposal

• $75 per pupil increase in base• $100m added to at risk funding• Eliminates performance based funding and scales

back best practices funding• Increases funding for early childhood and early

literacy programs• Maintains $100m for MPSERS costs• Expands “early warning” state takeover ability• Net zero increase for most

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Senate Version

• Retains many of initiatives and priorities found in Governor’s proposal

• Instead of $75 flat per pupil foundation increase , uses 2x formula ($50 for higher funded districts or $100 for lower funded districts) distribution

• Includes “hold harmless payment” to ensure every district receives at least a net zero per pupil impact

• Change to prior year count (85/15) to benefit districts with declining enrollment

House Version

• Differs significantly from Governor’s proposal• Removes Best Practices, Third Grade Reading,

Adult Ed and increase to At-Risk categorical• Increases foundation 2x ($137/$274) with $25

per pupil equity payment and hold harmless guarantee of $25 per pupil net

• Reduces MPSERS offset categorical by 50%• $5m to private schools for expenses required

by education law

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Side-by-Side Comparisons§6 definition of “membership” & “pupil”§18 financial reporting/audits due Nov 1§20 foundation allowance§21f adds community colleges as provider$22f best practice incentives§25e transfers between count days§35 early literacy programs (new)§61b CTE early middle colleges (new)§67 Michigan College Access Network (new)§81 ISD funding§94a CEPI funding§98 MVU funding§99 Math/Science, STEM, First Robotics, Science Olympiad, Van Andel Inst.§101 days and hours§102 & 103 distressed districts (new)$104 state-wide testing – MME, M-STEP§107 Adult Ed funding§147 MPSERS funding§163 Noncertified teachers

Other bills to watch• HB 4041 – link welfare cash assistance to school

attendance (if child under 16 not attending school, family loses cash assistance if child 16-17 not attending school, child not included in family for cash assistance calculation), passed House

• SB 139 – bake sales 3x/week, passed Senate• SB 103 – teacher/admin evaluations• SB 169-170 – STEM endorsed diplomas• HB 4325-4330 - early warning/emergency loan• HB 4396 – pre labor day start for schools

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MDE

• New Superintendent in July: Brian Whiston replaces Mike Flanagan

• Governor Issued Executive Order 2015-9 eff May 4, 2015, transferring the State School Reform/Redesign Officer (State Supt) from MDE to Dept. of Tech, Mgmt. & Budget to new State School Reform/Redesign Office (person to be hired by Director of DTMB)

Office of State Aid and School Finance Website

• State School Aid Updates – monthly http://www.michigan.gov/mde/0,4615,7-140-6530_6605-21108--,00.html

• State School Aid and School Finance Forms, includes Days & Clock Hours, Preliminary Pupil Headcount Report for new PSAs, Waivers http://www.michigan.gov/mde/0,4615,7-140-6530_6605-66897--,00.html

• Pupil Accounting Information, key webpage http://www.michigan.gov/mde/0,4615,7-140-6530_6605-21534--,00.htmlhttp://www.michigan.gov/mde/0,1607,7-140-6530_6605---,00.html

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Other State Website Links

• Office of Audits http://www.michigan.gov/mde/0,1607,7-140-6530_9091---,00.html

• MDE Memos http://www.michigan.gov/mde/0,1607,7-140-6530_6526_34913---,00.html

• School Finance and Law – School Lawhttp://www.michigan.gov/mde/0,1607,7-140-6530_6564_35176---,00.html

• MDE Administrators Websitehttp://www.michigan.gov/mde/0,4615,7-140-5235---,00.html

Stuff I Found Looking For Other Stuff

• 2014-15 Student Count Day and School Funding Information http://mi.gov/documents/mde/2011-2012_and_2012-2013_Student_Count_Day_Information_362677_7.pdf

• State Aid Payment Calculation Website http://www.michigan.gov/mde/0,4615,7-140-6530_6605-166291--,00.html

• State Aid Payment Information Website http://www.michigan.gov/mde/0,4615,7-140-6530_6605-20450--,00.html

• Who to Call with Questions on State Aid Sections http://www.michigan.gov/documents/whotocall-041702_18607_7.pdf

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FERPA and PPRA Notices

• USDOE Annual Notice of FERPA and PPRA Responsibilities December 2014

http://www2.ed.gov/policy/gen/guid/fpco/hottopics/index.htmlwww.ed.gov/fpco

• USDOE Privacy Technical Assistance Center Protecting Student Privacy While Using Online Educational Services

http://ptac.ed.gov/

Questions?

MPAAA Legislative Committee• Meets at Fall and Spring Conference• Met Monday May 4 4:00 – 4:30pm