In her budget, she increased the per-pupil foundation to $10,000, a 4% increase. The proposal also includes 4% increases to special education, English Language Learners, rural/isolated districts, at-risk students, and ISDs. It increases the Great Start Readiness Program’s target full-day allowance to $10,577 per slot. It also eliminates the income cap and allows all 4-year-olds access to the pre-k programs, with preference being given to lower-income students first.
The school safety and mental health grants in Sec 31aa are funded at $150 million, however, her proposal also includes language requiring districts to allow a comprehensive state investigation of any mass casualty event in order to qualify for funding.
Finally, the proposal includes a new “SMART plan” focused on Students, Metrics And Results with Transparency. We are still working through the details of the plan, but it includes $250 million in additional funding for intervention strategies, best practices, and reporting for “support category buildings.” These are school buildings identified as comprehensive support and improvement schools, additional targeted support schools, and targeted support and improvement schools.
Appropriations subcommittees will now begin their work on the budget. We urge you to continue to talk to your legislators about how this proposal will affect your district, other items that would be useful, and the timeliness of final budget decisions.
Secs. 16-16a – Targeted student supports – NEW
These new sections are part of the “SMART” plan put forward by the Governor to focus on Students, Metrics And Results with Transparency. These two sections create an additional funding mechanism for “targeted student support dollars” and outline their uses in detail, including high-impact tutoring. The support categories include schools that are comprehensive support and improvement schools (CSI), additional targeted support schools (ATS) and targeted support and improvement schools (TSI).
Sec. 16b – Best practices -- NEW
Also part of the SMART plan, it allocates $232 million for districts to implement “educational best practices”. Seventy-five percent of the funding must be appropriated to CSI, ATS and TSI schools. The funds must be used to implement the targeted student supports outlined in Sec 16a. Any district receiving funds under this section must report to the Michigan School Turnaround Hub on how the funds were used.
Sec 16c – ISD support – NEW
Appropriates $18 million for an ISD or a group of ISDs to monitor and provide technical support for their constituent districts for Secs. 16, 16a, 16b and 16d.
Sec. 16d – Notifications and reporting – NEW
Another section of the SMART plan. It requires CSI, ATS and TSI schools to provide a mailed notification to parents with a description of what the district has been doing to increase academic achievement. It also expands reporting for any district receiving Sec. 31a at-risk funds and a review every five years of a district’s literacy curriculum. It also requires school boards to include in each meeting discussion, presentation and public comment on strategies to enhance parental engagement and transparency and accountability dashboards. Three times a year a board must report on student progress on local and state assessments.
Sec 16e – Performance funding -- NEW
The final piece of the SMART plan, beginning in the 2026-2027 school year, a rating system will be created based on performance on state assessments to award districts with a per-pupil amount based on the score.
Sec. 20 – Per-pupil foundation allowance
Increases the target foundation allowance by $392 per pupil for an allowance of $10,000, a 4.1% increase. It sets the cyber school allowance at $8,000 per pupil, 80% of the target foundation allowance.
Sec. 22d – Rural and isolated districts
Increases funding in this section by $510,000, a 4.1% increase, for payments to rural and isolated districts.
Secs. 22k and 22l – Transportation funding
Deposits $36 million into the school transportation fund. Allocates $125 million for district transportation costs through the same formula as last year.
Sec 27b – Grow Your Own
Allocates $50 million to districts and ISDs for grow your own programs.
Sec. 29 – Enrollment stabilization fund
Maintains current appropriation level for the fund to assist districts with declining enrollment.
Sec. 30d – Universal breakfast and lunch programs
Maintains $200 million to reimburse schools for the cost of providing free breakfast and lunch to all students.
Sec. 31a – At-risk funding
Increases funding by $42.3 million, a 4% increase. Adds language that a district must comply with Secs 16, 16b, 16c and 16d to be eligible for funds under this section.
Sec. 31n – School mental health and support services
Maintains funding for this section for licensed behavioral health providers in schools. It also continues allowing those providers to qualify for federal Medicaid match funding.
Sec. 31aa –Mental health and school safety grants
Maintains $150 million for payments to districts for certain activities to improve the mental health of students and staff and/or to improve school safety. However, it removes the provision that the funding would be disbursed on a per-pupil basis to districts. It also requires a district to consent to a comprehensive investigation by a person or entity chosen by the Governor in the event of a mass casualty event in order to receive funds under this section.
Secs. 32d and 39 – Great Start Readiness Program
Increases funding for the Great Start Readiness Program by $41.35 million and expands eligibility to all children who will be four by Sept. 1. However, students in low-income households must be given priority for enrollment slots. It moves most of the oversight, regulation and licensing from MDE to MiLEAP. Increases the GSRP target foundation to $10,577.
Sec. 35a – Third grade reading
Increases funding for this section by $3.25 million to increase the number of literacy coaches and $20 million additional for funding for additional instructional time.
Sec. 41 – English language learners
Increases funding by $2.1 million, a 4% increase over last year.
Sec. 51e – Special education funding
Increases funding for special education programs to continue to fund pupils at 100% of the target foundation allowance.
Sec. 54d – Early On
Increases funding by $4.7 million for Early On programs for children from birth to age three with a developmental delay, disability or both.
Sec. 56 – Special education millage equalization
Increases the appropriation for this section to $89.2 million and restructures the formula used to distribute the funds for special education costs. The intent is to achieve more equitable funding across the state.
Secs 61a & 61b – CTE added costs and early middle college
Increase funding for each section by 4% to $41.6 million for added costs and $8.4 million for early middle college.
Sec 61v – CTE expansion – NEW
Establishes $125 million for grants to districts located in a “geographic area with limited or inequitable access to career and technical education programs, as determined by the department.”
Sec. 67f – FAFSA incentives
Maintains $10 million for grants to districts that include completing the FAFSA as a graduation requirement.
Sec. 81 – ISD funding
Increases funding to ISDs by $3.2 million for a 4.1% increase over last year.
Sec. 147 – MPSERS rates
Makes annual adjustments to all rates.
Sec. 147a – MPSERS offset
Maintains current year appropriation for normal costs and includes reimbursement for payroll costs. Removes ISDs and libraries reimbursement for payroll costs.
Sec. 147c – MPSERS rate cap
Sets the estimated average MSPERS rate cap per pupil amount at $1,100.
The Governor also repealed many of the vendor-specific sections that were included in past years’ budgets and the funding for nonpublic schools.
As always, keep in mind this is just the beginning of the process and now the Legislature will create its proposals. The next Consensus Revenue Estimating Conference will be in May, and that will give the Legislature and the Governor the most current revenue figures with which to set the final budget. We will keep you informed as the budget continues to move through the process.