Today, the House Appropriations Subcommittee on School Aid and the Department of Education released its budget proposal. It includes a per-pupil foundation allowance increase of 4.3% to $10,025. However, it eliminates many categoricals that are essential to school functions and student support and learning. It also increases the amount of funding for universities by $1.5 billion for a total of almost $2 billion of School Aid dollars flowing to universities.

Chairman Rep. Tim Kelly (R-) stated that school funding needed a “shock to the system”. But this proposal is an irresponsible plan for our schools. With the end of the school fiscal year in just 19 days, the House needs to get serious about negotiating an effective budget.

The proposed budget eliminates the statutory reduction in the MPSERS rate that was established last year, pulling back more than $700 million in savings to districts. The specific categoricals that are eliminated and the funds rolled into the new Sec. 22f include:

• Partnership districts
• Funding for isolated and rural districts
• MI Future Educator fellowship program and stipends for student teachers
• Free school meals
• School-based health centers
• Sections 31n and 31aa, related to student mental health supports and school safety
• Early literacy teacher coaches and added instructional time
• English Language Learners
• Special education ISD millage equalization
• CTE programs, including early middle college and dual enrollment
• Assessments
  

The new Sec. 22f contains an additional $1,975 per-pupil for districts IF the district pledges to support at least one school resource officer and one mental health support staff member.  The district receiving funds would also be required to submit an annual report detailing how the funds were spent.

The House Appropriations Committee is expected to approve the budget this morning, and it could be up for a vote in the full House as soon as this afternoon. We urge you to contact your Representative and tell them to vote NO on House Bill 4577, the School Aid Budget. 

The budget also includes two penalty provisions, the first states that payments to districts can be withheld if a district:

• includes certain chemicals in the food they serve
• does not require free and reduced lunch forms to be filled out by every student
• does not ensure that any waiver that is offered for any reason is an opt-in
• provides a financial incentive for students to fill out the FAFSA
• provides a financial incentive for students to attend pupil count day
• does not post any student survey questions and results on its website, and requires parents to opt in to a survey 

The second provision is a penalty equal to 20% of a district’s discretionary portion of the foundation allowance if it does any of the following:

• Uses curriculum that includes race or gender stereotyping
• Uses state funding for diversity, equity and inclusion initiatives or programs
• Allows transgender athletes to compete on girls' sports teams 

This budget undermines our local school districts and harms our students and their learning environments. Instead of bringing promised relief to taxpayers, it will continue to increase the demand and reliance on our local communities to support schools. Whether the funding shifts are going to private schools or being earmarked for a roads deal and tax cuts, they are coming at the direct expense of Michigan’s public school children.  

The House needs to pull this proposal back and come forward with something that can be negotiated in good faith. We will have details comparing all three proposals up on our website soon.