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State budget & taxes

State education and school aid budget, and revenue sources for schools

"What's goin' on?"

These are frustrating times for those of us who fight for strong local public education. Elections have consequences, but they don't change everything. Attacks on community-governed public schools have slowed, but we still have to come up with a strong plan for constructive change. There is great opportunity, but some very large challenges remain ahead of us.

In this issue:
  • School aid budget: promise and politics
  • Detroit literacy suit: is everything better now? (See our op-ed in the Detroit News.)
  • A new direction: building coalitions for strong schools that serve the public

Legislative update: Snyder budget gives schools a bump; school letter grading rides again

Winter is ending, which means it's budget time in Lansing. It's also an election year, which means we're likely to see a mix of generosity, grandstanding, and horsetrading as lawmakers try to burnish their records before facing primary and general election voters. Here are some of the top recent developments:

  • Snyder school aid budget gives bump to schools, cuts sketchy earmarks; fate in legislature is uncertain
    • January revenue estimation conference sees increase for School Aid Fund but less so for main state budget; charter schools forecast for first-ever fall in enrollment
    • The School Aid Fund will now pick up the entire community college budget and cover one third of all state spending on colleges and universities
  • A-F grades for schools lurches back into spotlight; measure skips summative grade but creates new commission of political appointees
  • In wake of Florida school shootings, House committee chair says that "guns in schools" bills not likely to see action anytime soon
  • House committee passes bills allowing tax break on private school tuition for the well-heeled; measures also force districts to cost out all their services - for no apparent reason
  • Snyder signs bill giving charters a cut of regional enhancement millages, after a notably close vote in the House

Better grab a cup of coffee!

MI Parents: Keep the Public in Public Education

Proposals for organization & funding of K-12 education in Michigan

Prepared for State Board of Education, 13 May 2014

Pres. Austin, Supt. Flanagan, and members of the Board:

Preface

Michigan parents value their local public schools and appreciate the hard work being done by all those who bring life to public education. No institution is perfect, and local public education is no exception. But parents are painfully aware of the struggles faced by our schools, driven in part by policy decisions at the state level - which have reduced our direct investment in K-12 education - and in part by changes in the Michigan economy, which have put our families and communities under tremendous stress.

Michigan public education is not "broken;" it has weathered tremendous blows over the last 15 years that have reduced its ability to serve all students as well as we want it to. Any proposals to change the structure and funding of our public schools must address this fundamental fact. >>>>Click below to read more

Budget deal includes $175 per-pupil spending cut

agreement image

Gov. Gretchen Whitmer and Republican legislative leaders announced a tentative agreement this week to address the projected $2.2 billion shortfall in this year's state budget. The agreement, which makes use of federal coronavirus-related assistance, applies to the current fiscal year that ends on September 30. Despite $950 million in federal aid earmarked for coronavirus spending, the a further $1.2 billion in spending cuts or transfers from the state reserve are needed, with K-12 school aid slated for a $256 million reduction (about $175 per pupil) in the current year.

Budgeting in the time of COVID-19

Even in these difficult times, we need to be aware of the potential trouble looming ahead.

Early estimates from the state Treasury Department indicate that the state budget could have a $1 to 3 billion hole in the current fiscal year, with a $1 to 4 billion shortfall in 2020-21. Much of this comes from sales tax and income tax revenues, which, you will remember, make up the bulk of School Aid Fund revenues.

Special sections: 

Latest on the 2018-19 School Aid budget

Michigan School Aid Budget - state of play as of May 9

[Update: versions of the budget passed by each chamber.]

State budget timeline:

  • January: top state economists meet to make tax revenue projections (Consensus Revenue Estimation Conference)
  • February: Governor proposes a budget, based on the revenue estimates
  • March-April: Legislative appropriations subcommittees develop their own alternatives; horsetrading begins
  • May: top state economists reconvene to update revenue projections, which must be used to comply with balanced budget amendment
  • May-June: Using the May projections, Governor and legislative leaders hammer out agreement on basic budget numbers; appropriations committees adjust individual bills with new numbers. "Supplemental" spending bills adjust current year budget to revised revenue projections.
  • May-June: Individual spending bills are rolled into omnibus budget bills; final horsetrading before passage and Gov's signature

After an unusually long wait, both the House and Senate appropriations subcommittees on school aid issued their alternatives to the budget proposed by Gov. Snyder in February. As expected, the two legislative chambers made moves to be more generous during this election year, though the details are not always so generous. When things like that happen, it's time to check your wallet.

The table below outlines some of the most important provisions of the budget, contrasting the Governor's, House, and Senate versions. As both subcommittee chairs usually say, their alternative bills are meant to "start discussions." For parents and other concerned citizens to have a voice in that discussion, we need to know what is going on and what is at stake. Use this table to familiarize yourself with the alternatives and then join the discussion with gusto. There's lots to choose from.

Things to note:

  • Diversions from the School Aid Fund to the community college and higher education budgets, which used to be covered by the general state budget before Gov. Snyder took office, represent almost $800 million or roughly $535 per pupil in lost K-12 funding;
  • House and Senate both commit to giving for-profit cyber charters the same funding as regular schools;
  • House continues the controversial payments to private schools for "state mandates" like background checks and fire drills;
  • House and Senate also continue to fund several "pet projects" of dubious merit; House confers a blessing on a particular preschool curriculum published by a for-profit company.

This is your government at work! But ask yourself: who, precisely, are they working for?

School Aid budget goes to Snyder

Just before the Legislature left for its summer break, lawmakers approved the education and general government budgets and sent them to the Governor for his signature. The final school aid budget, one section of the education omnibus budget bill that also covers community colleges and higher education, had a few important differences with the previous negotiated compromise. Unfortunately, it also includes several items added by the legislature though not wanted, or struck out, in the governor's original request.

Action alert: still time to act on school retirement bills

Dear Friends,

As we said in our last Legislative Update, they've been playing "let's make a deal" in Lansing, and we weren't invited. Now they intend to wave their deal in front of our collective noses for a few moments as they rush to pass it into law. We need you to speak out as soon as possible!

K-12 Budget Update: Saving face, at a cost

Well, they cut a deal. In return for a nebulous agreement on a "framework" for shifting new public school employees entirely to a 401k-style retirement plan, Gov. Snyder was allowed to rejoin negotiations over the budget. Literally the same day, a House/Senate conference committee passed a "compromise" version of the School Aid budget for fiscal 2018. As you might expect, it's a mixed bag.

Budget: House & Senate fire their first shots

[UPDATE: Budget bills as passed by each chamber] Before the April break, the House and Senate appropriations subcommittees on school aid issued their alternatives to the budget proposed by Gov. Snyder in February. As expected, many of the innovative provisions included in the Governor's draft have been stripped out of the subcommittee versions. Both legislative versions manage to offer higher foundation allowances while also spending less, in the case of the Senate, than the executive recommendation. The House's proposal is only marginally higher than Gov. Snyder's version. When things like that happen, it's time to check your wallet. We've got the details.

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