In her budget, she increased the per-pupil foundation to $10,300, a 2.5% increase. The budget includes a 6% increase to weighted foundation allowance items: preschool, CTE, rural and isolated districts and Early On. It increases the Great Start Readiness Program’s target full-day allowance by 6% to $11,290 per slot. In the biggest change for this year, it codifies a weighted per-pupil amount for at-risk students and English Language Learners. The funding for these line items was rolled into the foundation allowance and then set with an average weight of 1.1967% additional funding for each at-risk student and an average of 1.0620% for each ELL student, with the weight varying by WIDA level.
Unfortunately, the budget also increases the amount of School Aid dollars that are flowing to universities by more than $500 million. The SAF would then fund almost half of the universities’ budgets and all of the community colleges’ budgets for a total $18 billion flowing away from our K-12 classrooms.
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.
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. If you have questions, please feel free to contact us.
The following breaks down the budget by certain sections:
Sec. 6 – Weighted pupil membership definition
This section defines a weighted pupil and sets the percentage of increased funding for those students. Under the definition, an English language learner would be counted as 1.0190 to 1.1687 depending on their WIDA composite score. An economically advantaged student would be counted as 1.01692 to 1.2273 depending on which opportunity index band a district belongs to. These percentages are then multiplied by the target foundation allowance to determine the district’s funding for each eligible student. The section also includes intent language to increase the percentages in future budgets.
Sec. 20 – Per-pupil foundation allowance
Increases the target foundation allowance by $250 per pupil for an allowance of $10,300, a 2.5% increase. It sets the cyber school allowance at $8,000 per pupil, 80% of the target foundation allowance.
Sec. 22b – Discretionary payment requirements
Adds language requiring districts to comply with new section 164m and send notification to parents if the district is not using a curriculum from MDE’s evidence-based curriculum list, as required under the read by grade 3 law in order to receive funding under this section.
Sec. 22d – Rural and isolated districts
Increases funding in this section by $783,000, a 6% increase, for payments to rural and isolated districts.
Secs. 22l – Transportation funding
Allocates $125 million for district transportation costs through the same formula as last year.
Sec 23h – Math education supports – NEW
Appropriates $12 million for math education supports. $3 million for professional development for math teachers and $9 million for early mathematics specialists to assist teachers and staff in implementing research based instructional strategies for grades K-5.
Sec 27b – Grow Your Own
Allocates $60 million to districts and ISDs for grow your own programs. Also allows up to $3 million for school librarian specialist certification grants that can be awarded to a program that provides a pathway for certified teachers to receive a school librarian specialist endorsement.
Sec. 29 – Enrollment stabilization fund
Increases appropriation to $125 million for additional funding 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
Funding is moved into the target foundation line item to be distributed through the new weighted pupil formula. The requirements and allowable uses for the funds are struck and will now fall under new section 164m. Funding for adolescent health centers ($33 million) and hearing, vision and dental screenings ($11.65 million) remain in 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
Appropriates $300 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 also retains the language requiring 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. This language is still under a court challenge.
Secs. 32d and 39 – Great Start Readiness Program
Increases funding for the Great Start Readiness Program by 6% and maintains eligibility for all children who will be four by Sept. 1. However, students in low-income households must be given priority for enrollment slots. The GSRP target foundation to $11,290. It also includes $28 million for transportation costs and $25 million for new classrooms or to expand existing ones.
Sec. 32p – Early learning partnerships – NEW
This new section appropriates $30 million for statewide early learning partnerships. These partnerships are intended to provide central access and awareness for families for early childhood information to improve engagement.
Sec. 35a – Third grade reading
Doubles funding for this section to $102,500,000. It includes language to ensure that each ISD receives enough funding for at least one more literacy coach and calls on MDE to develop a coaching evaluation framework. It allocates $50 million for professional development and LETRS training.
Sec 35p – High impact tutoring – NEW
Allocates $100 million for competitive grants to implement high-impact tutoring in eligible districts. The tutoring must be in-person and during the school day with a minimum of 2 sessions per week. The tutoring partners can be ISDs, for-profit vendors or nonprofit vendors.
Sec. 41 – English language learners
Funding is moved into the target foundation line item to be distributed through the new weighted pupil formula. The requirements and allowable uses for the funds are struck and will now fall under new section 164m.
Sec. 51e & 51c – Special education funding
Increases funding for special education programs to continue to fund pupils at 100% of the target foundation allowance. Increases funding to reimburse districts for costs of special education and transportation by $32.8 million to $1.1 billion.
Sec. 54d – Early On
Increases funding by 6% to $25.1 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
Increases funding for each section by 6% to $44.2 million for added costs and $8.9 million for early middle college.
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 $2.1 million for a 2.5% increase over last year.
Sec. 91s – MiSTEM Network -- NEW
Appropriates $8 million for science, technology, engineering and math programs. The MiSTEM network would align with the statewide STEM strategy to increase the number of students advancing in STEM fields
Sec. 147 – MPSERS rates
Makes annual adjustments to all rates.
Sec. 147a – MPSERS offset
Allocates $307 million to offset normal costs based on payroll costs and includes $100,000 for libraries.
Sec. 147c – MPSERS rate cap
Allocates $1.5 billion to cover state contributions over the district payroll cap of 15.21% on unfunded liability costs.
Sec. 164m – Requirements for weighted pupil funding -- NEW
This section outlines specific things that a district must do to receive funding under the new weighted pupil formula. It includes implementing a multi-tiered system of supports, complying with the requirements under the read by grade 3 law, supporting items in the district’s Michigan Integrated Continuous Improvement Process plan, submitting requested information on spending and allowing audits by MDE, and communicating to parents literacy related results and how the district spent the funds.