Budget | Michigan Association of School Administrators

Governor

The Governor presented his Fiscal Year 18 budget on February 8th.  By many counts, the proposal answered the call of education groups like MASA to invest in Michigan’s most valuable piece of infrastructure — the human capital in our schools.

The 2017-18 budget recommendations address many of MASA’s legislative priorities for the session, including addressing the need to implement some of the recommendations of the Michigan Education Finance Study.

There are a number of policy and monetary changes that will be very beneficial to school districts across the state and some that will require some careful scrutiny as the budget process moves forward.

Included in the budget:

  • $128 million increase to the foundation ($50/100 per pupil — $7,611-$8,279) plus an additional $50 per pupil for students in grades 9-12. This recognizes that high school is increasingly more expensive. Part of this increase comes in the form of a reduction for cyber school funding.
  • $150 million increase to at-risk, and expanding the eligibility pool, equating to $778 per pupil (an increase of $105 per pupil).
  • $7 million for declining enrollment.
  • Lowering the assumed rate of investment return for MPSERS from 8% to 7.5% over two years.
  • Capping expenditures for education nonpublic and homeschool students at public schools to $60 million (currently $115 million).
  • $26 million for reading, including $6 million for early literacy coaches.
  • A reduction to cyber school foundations by 20%, recognizing that they do not have physical settings to maintain and fund.
  • ISD inclusion in Sec. 147a with an additional appropriation of $48.9 million, split between participating districts and ISDs.
  • No change to Sec. 51a(14) or (15) language.
  • No change to Sec. 81 funding.
  • Creation of Sec. 22m, which contains $2.2 million for Data Hubs.
  • Updated language for Sec. 56 and 62 special education and vocational-technical education millage equalization.
  • Preserved Sec. 24 allocations.
  • Language allowing for Sec. 61b funds to be used for the development or expansion of CTE Early/Middle College programs.
  • A reworking of Sec. 61c to appropriate $20 million for a CTE Equipment and Innovation Competitive Grant Initiative. The program will be open to districts, ISDs, or consortia of the two and will award grants “for the purcase of equipment and related capacity building activities.”
  • Increase to $6 million to support ISD early literacy coaches.

House

Like the Governor, the Michigan House of Representatives has also begun hearing budget proposal presentations.  We will continue to update you as this process progresses.  You can follow the House proposals here:

House School Aid and Education Appropriations Subcommittee

House Fiscal Agency page on the School Aid Budget

Senate

Like the Governor, the Michigan Senate has also begun hearing budget proposal presentations.  We will continue to update you as this process progresses.  You can follow the Senate proposals here:

Senate K-12, School Aid, and Education Appropriations Subcommittee

Senate Fiscal Agency page on the School Aid Budget