Over the last two weeks, the Senate PreK-12 Appropriations Subcommittee and the House Appropriations Subcommittee each released their budget proposals. The Senate proposal, Senate Bill 751, is before the full Senate for consideration and a vote, and the House proposal, House Bill 5503, is up for consideration in the full House Appropriations Committee today. Once approved by that committee, it will go to the House floor for a vote.
The per-pupil foundation allowance increases vary from $217/per-pupil in the House to $302/per-pupil in the Senate. The Governor is in the middle with $241/per-pupil. One significant difference between the proposals is the use of the savings from the school employees’ retirement system healthcare benefit unfunded liability payments. Because the health benefits side of MPSERS is now fully funded, the Governor proposed using the $670 million in various spots throughout the budget, and the Senate followed suit. However, we have been pushing for that money to be reinvested in MPSERS to lower the rate that districts have to pay into the system for the unfunded liabilities. The House budget proposal reinvests $290.8 million and lowers the rate from 20.96% to 18%. While the exact benefit to districts will vary, on average, it will free up more than $200 per pupil to invest in classrooms instead of paying MPSERS liabilities.
The next Consensus Revenue Estimating Conference will be May 17, and that will give the Legislature and the Governor the most current revenue figures with which to set the final budget. Following, we break down the School Aid Budget by relevant sections and compare each proposal, Governor, Senate and House. You can also find it on our website.
We urge you to talk to your legislators about the benefits of lowering the MPSERS rate for your district and how these different proposals will affect your district. Also, continue to push for a timely completion of the budget in June. As always, if you have further questions, please feel free to contact us.
Sec. 12c – Consolidation and infrastructure fund
Governor: Appropriates $25 million from the fund for districts and ISDs facing an infrastructure emergency that threatens their students' and staff's health and safety. The district superintendent would have to submit a request to the state treasurer and state budget director.
Senate: Includes this section and adds place holders for funds for 5 specific districts.
House: Repeals this section
Sec. 20 – Per-pupil foundation allowance
Governor: Increases the target foundation allowance by $241 per-pupil for an allowance of $9,849, a 2.5% increase. It sets the cyberschool allowance at $7,879 per pupil, 80% of the target foundation allowance.
Senate: Increases the target foundation allowance by $302 per-pupil for an allowance of $9910, a 3.1% increase. It sets the cyberchool allowance at $7928 per-pupil, 80% of the target foundation allowance.
House: Increases the target foundation allowance by $217 per-pupil for an allowance of $9,825, a 2.25% increase. Maintains the cyberschool allowance at $9,150 per pupil.
Sec. 22d – Rural and isolated districts
Governor: Increases funding in this section by $885,000, a 7.5% increase, for payments to rural and isolated districts.
Senate: Increases funding in this section by $500,900.
House: Increases funding by $854,400, a 7.25% increase.
Sec 22k and 22l – Transportation funding
Governor: Maintains $125 million for districts to offset transportation costs.
Senate: Concurs with Governor.
House: Deposits $150 million into the transportation fund and maintains $125 million for transportation costs. Also changes the funding groups from quartiles to octiles.
Sec. 25l – Early Warning and intervention system – NEW
Governor: Appropriates $5 million to an ISD for an early warning intervention and monitoring system for students at risk of dropping out of high school.
Senate: Does not include.
House: Does not include.
Sec. 25m – Additional supports for income-eligible students – NEW
Governor: Appropriates $90 million for competitive grants to districts and ISDs to support the academic, social-emotional and physical needs of income-eligible students.
Senate: Does not include.
House: Does not include.
Sec. 27h – Mentor teachers
Governor: Maintains $50 million for grants to districts to create mentor programs to support and retain teachers, counselors and administrators. The grants would fund stipends for mentors, materials, and out-of-class time for the mentor teacher. Adds language specifically allocating $5 million for mentoring for school administrators up to $3,000 per administrator.
Senate: Does not include.
House: Does not include.
Sec. 27k – Student loan repayment
Governor: Repeals this section.
Senate: Appropriates $75 million for student loan repayment and directs MDE to create an online portal to facilitate the grants to eligible recipients.
House: Does not include.
Sec 27r – Teacher leadership programs -- NEW
Governor: Does not include.
Senate: Appropriates $26 million for districts to create a teacher leadership program and specifies the stipend for and responsibilities of a “teacher leader.”
House: Appropriates $10 million for Title I schools to create a teacher leadership program and specifies the stipend for and responsibilities of a “teacher leader.”
Sec. 29 – Enrollment stabilization fund
Governor: Maintains appropriations for the fund to assist districts with declining enrollment.
Senate: Concurs with Governor.
House: Increases appropriation to assist districts with declining enrollment by $21.6 million and deposits $100 million into the fund. States that if the appropriation is not enough to cover costs for all districts, money from the fund shall be used so no district is prorated.
Sec. 30d – Universal breakfast and lunch programs
Governor: Includes $200 million to reimburse schools for the cost of providing free breakfast and lunch to all students. The increase reflects actual costs incurred during the 2023-2024 school year.
Senate: Concurs with Governor.
House: Concurs with Governor.
Sec. 31a – At-risk funding
Governor: Increases funding by $23.8 million, a 2.5% increase.
Senate: Increases funding by $85.6 million.
House: Increases funding by $70.1 million, a 7.25% increase.
Sec. 31n – School mental health and support services
Governor: 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.
Senate: Concurs with Governor.
House: Increases funding by $5 million for this section.
Sec. 31aa –Mental health and school safety grants
Governor: Maintains the $300 million for per-pupil payments to districts for activities to improve the mental health of students and staff and/or to improve school safety. The funding would be disbursed on a per-pupil basis to districts.
Senate: Allocates $150 million for this section.
House: Concurs with Governor.
Secs. 32d and 39 – Great Start Readiness Program
Governor: Increases funding for the Great Start Readiness Program by $160 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. Increases the full-day rate to $10,342 and the part-day rate to $5,171.
Senate: Increases funding for the Great Start Readiness Program by $82.8 million and expands eligibility to to those families making up to 400% of the federal poverty guideline. Increases the full-day rate to $9,910 and the part-day rate to $4,955 to keep pace with the foundation allowance.
House: Increases funding for the Great Start Readiness Program by $96.1 million and expands eligibility to to those families making up to 350% of the federal poverty guideline. Increases the full-day rate to $10,317 and the part-day rate to $5,159.
Sec. 35a – Third grade reading
Governor: Increases funding for this section by $8.25 million to increase the number of literacy coaches and the grant amount per ISD for the coaches.
Senate: Increases funding for this section by $10.25 million and expands allowable grades to 5th grade.
House: Concurs with the Governor.
Sec. 35m – Committee for literacy achievement – NEW
Governor: Creates the committee for literacy achievement to identify and rank literacy tools and services available to districts. Appropriates $155 million for grants to districts and for stipends for committee members up to $8,000 annually. Districts using tools higher on the ranking would receive more funding than those using tools lower on the ranking.
Senate: Does not include.
House: Does not include.
Sec. 35m – Literacy funding
Governor: Does not include.
Senate: Appropriates $10 million to be distributed on a per-pupil basis to be used for items to improve literacy outcomes.
House: Does not include.
Sec. 35n – READ innovative competition – NEW
Governor: Appropriates $10 million for reading excellence and advancing district innovation competition. The Department of Lifelong Education, Advancement and Potential would establish the structure of the program, the categories of the competition, and the award recipients. Startup funds must be provided to eligible districts to develop innovative literacy initiatives to compete for the final award of $500,000.
Senate: Does not include.
House: Does not include.
Sec. 41 – English Language Learners
Governor: Increases funding by $3 million, a 7% increase over last year.
Senate: Doubles funding for this section to $79.5 million and doubles the amounts per-pupil for each of the WIDA score bands.
House: Increases funding by $5 million, a 12.25% increase.
Sec. 51e – Special education funding
Governor: Increases funding for special education programs to continue to fund pupils at 100% of the target foundation allowance.
Senate: Concurs with the Governor.
House: Concurs with the Governor.
Sec. 54d – Early On
Governor: Increases funding by $1 million for Early On programs for children from birth to age three with a developmental delay, disability or both.
Senate: Increases funding by $701,300 for Early On programs.
House: Increases funding by $17 million for Early On programs.
Sec. 56 – Special Education Millage Equalization
Governor: Increases the appropriation for this section to $124.2 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.
Senate: Maintains funding at $74.2 million but also restructures the formula used to distribute the funds for special education costs. Formula is different than Governor’s proposal but has the same intent.
House: Maintains current funding at $74.2 million but also restructures the formula used to distribute the funds for special education costs. Formula is different than Governor’s proposal but has the same intent.
Sec. 61c – CTE equipment
Governor: Maintains funding at $15 million for eligible career education planning districts to update career and technical education equipment.
Senate: Increases funding by $3 million for this section.
House: Maintains funding at $15 million but opens up the funds to more CEPDs.
Sec 61v – CTE internships – NEW
Governor: Appropriates $20 million for competitive grants to career education planning districts to foster partnerships in key industries for internships or paid structured apprenticeship programs for high school seniors.
Senate: Does not include.
House: Does not include.
Sec. 67f – FAFSA incentives
Governor: Increases funding to $40 million for the Free Application for Federal Student Aid completion challenge. Eligible districts would receive $50 for each 12th grade student to be used to drive FAFSA completion.
Senate: Appropriates $15 million to be distributed to districts that require students to fill out the FAFSA as a graduation requirement.
House: Maintains funding at $10 million and current distribution.
Sec. 81 – ISD funding
Governor: Increases funding to ISDs by $2 million for a 2.5% increase over last year.
Senate: Increases funding to ISDs by $2.5 million for a 3.1% increase over last year.
House: Increases funding to ISDs by $5.8 million for a 7.36% increase over last year.
Sec. 99h – First Robotics
Governor: Appropriates $5.3 million and expands eligible programs and competitions.
Senate: Appropriates $6.7 million and expands eligible programs and competitions.
House: Appropriates $4.7 million and expands eligible programs and competitions.
Sec. 147 – MPSERS rates
Governor: Makes annual adjustments to all rates.
Senate: Concurs with the Governor.
House: Concurs with the Governor.
Sec. 147a – MPSERS offset
Governor: Maintains current year appropriation for normal costs and increases the reimbursement for payroll costs.
Senate: Concurs with the Governor.
House: Increases funding by $302.7 million. Maintains current year appropriation for normal costs and increases the reimbursement for payroll costs and allocates $290.8 million to lower the district UAAL cap from 20.96% to 18% for participating entities. Also includes intent language to continue to lower the rate annually until it is phased out and that the savings realized by districts be used to improve classroom conditions and educator compensation.
Sec. 147c – MPSERS rate cap
Governor: Lowers the average rate cap per-pupil amount by $417 to $740 and sets the rate cap per pupil for districts to a range of $2-$2,650. Also changes the payroll growth assumption to 0.25%.
Senate: Concurs with the Governor.
House: Concurs with the Governor.
Sec. 147g – Employee MPSERS reimbursement – NEW
Governor: Does not include.
Senate: Does not include.
House: Appropriates $51.6 million for districts to use to offset the employee’s 3% contribution for retiree healthcare with intent language to annually increase the appropriation until the 3% contribution is fully reimbursed.
Sec. 164j – Collective bargaining violations -- NEW
Governor: Does not include.
Senate: Does not include.
House: Prohibits the use of funds received under this Act to pay for litigation or legal costs resulting from a violation of the collective bargaining section of the Public Employment Relations Act.