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2003 Senate Bill 556
Public Act 236 of 2003
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- Introduced by Sen. Shirley Johnson (R) on June 5, 2003, to provide a "template" or "place holder" for a potential supplemental multi-section school aid budget for the 2003 and 2004 fiscal years. This bill contains no appropriations, but may be amended at a later date to include some.
- Referred to the Senate Appropriations Committee on June 5, 2003.
- Reported in the Senate on December 11, 2003, with the recommendation that the substitute (S-2) be adopted and that the bill then pass.
- Substitute offered in the Senate on December 11, 2003, to replace the previous version of the bill with one which embodies a December 2003 agreement struck between Sen. Majority Leader Ken Sikkema and Gov. Granholm to close an expected $330 million shortfall in the School Aid Fund. See Senate-passed version for details. The substitute passed by voice vote in the Senate on December 11, 2003.
- Referred to the Senate Appropriations Committee on June 5, 2003.
- Passed 38 to 0 in the Senate on December 11, 2003, a supplemental K-12 school aid budget for FY 2003-2004. The bill appropriates $152.4 million in new revenue to close an expected $330 million shortfall in the School Aid Fund. It is part of a December, 2003 agreement struck between Sen. Majority Leader Ken Sikkema and Gov. Granholm to make up the shortfall. Part of that deal includes Senate Bill 852, which would increase the income rate from 3.9 percent to 4.0 percent between Jan.1, 2004 and July 1, 2004. This bill appropriates part of that revenue, plus revenue from new lottery games, a proposed tax amnesty and boosted tax collection enforcement. It cuts $22 million previously appropriated to give laptop computers to all public school sixth-graders. The balance of the school aid shortfall will be closed by an executive order imposing “pro-rated” cuts of approximately $100 from per pupil grants to schools. The statewide average per-pupil grant is approximately $8,000, and the minimum grant is $6,700. See also House Bill 4367. Much more information on Michigan’s budget is available at Hot Topics: Michigan’s Budget Challenge at www.mackinac.org/4964.
Who Voted "Yes" and Who Voted "No" - Received in the House on December 16, 2003.
- Substitute offered by Rep. Judy Emmons (R) on December 16, 2003, to replace the previous version of the bill with one which has $22.5 million in spending cuts over and above the Senate version, but does not include revenue from a six-month income tax rate increase that is part of the December 9, 2003 deficit agreement struck by Senate Majority Leader Ken Sikkema and Gov. Jennifer Granholm. The substitute cuts $10 million from approximately $112 million in Intermediate School District (ISD) reserve funds, $5 million from a special $15 million grant to the Detroit School District, $5 million from the $55 million in supplementary state school aid payments to wealthier school districts to compensate them for a loss of local funding that resulted from the 1994 Proposal A school finance initiative, and $2.5 million from a $26.5 million "class size reduction" grant. See House-passed version for more details. The substitute passed by voice vote in the House on December 16, 2003.
- Amendment offered by Rep. Stephen Ehardt (R) on December 16, 2003, allow schools to increase class sizes in proportion to a cut in "class size reduction" grants. The amendment passed by voice vote in the House on December 16, 2003.
- Amendment offered by Rep. Lauren Hager (R) on December 16, 2003, to cut grants for "class size reduction" by $2.5 million, instead of $5 million as proposed in the House substitute. The amendment passed by voice vote in the House on December 16, 2003.
- Passed 56 to 46 in the House on December 16, 2003, a supplemental K-12 school aid budget for FY 2003-2004. The bill makes spending cuts and shifts of approximately $130 million to close an expected $330 million shortfall in the School Aid Fund. It amends a December, 2003 agreement struck between Sen. Majority Leader Ken Sikkema and Gov. Granholm to make up the shortfall. Part of that deal included Senate Bill 852, which would increase the income rate from 3.9 percent to 4.0 percent between Jan. 1, 2004 and July 1, 2004. However, that tax bill was defeated by the House shortly after this vote. Instead, this bill cuts an additional $22.5 million in “categorical” grants to schools and intermediate school districts, and transfers additional general fund money to the school aid fund. The bill also appropriates revenue from new lottery games, a proposed tax amnesty and boosted tax collection enforcement; and cuts $22 million previously appropriated to give laptop computers to all public school sixth-graders. The balance of the school aid shortfall will be closed by an executive order imposing “pro-rated” cuts of approximately $100 from per pupil grants to schools. The statewide average per-pupil grant is approximately $8,000, and the minimum grant is $6,700. See also House Bill 4367. Much more information on Michigan’s budget is available at Hot Topics: Michigan’s Budget Challenge at www.mackinac.org/4964.
Who Voted "Yes" and Who Voted "No" - Received in the Senate on December 17, 2003.
- Failed 0 to 38 in the Senate on December 17, 2003, to concur with a House-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.
Who Voted "Yes" and Who Voted "No" - Received in the House on December 17, 2003.
- Passed 107 to 1 in the House on December 18, 2003, to adopt a compromise version of the bill reported by a House-Senate conference committee, which is the same as the bill previously passed by the Senate, and does not include the additional spending cuts added by the House. This conference report was adopted after the House passed Senate Bill 852, which raises the income rate from 3.9 percent to 4.0 percent between Jan. 1, 2004 and July 1, 2004.
Who Voted "Yes" and Who Voted "No" - Received in the Senate on December 18, 2003.
- Passed 37 to 0 in the Senate on December 18, 2003, to adopt a compromise version of the bill reported by a House-Senate conference committee, which is the same as the bill previously passed by the Senate, and does not include the additional spending cuts added by the House. This conference report was adopted after the House passed Senate Bill 852, which raises the income rate from 3.9 percent to 4.0 percent between Jan. 1, 2004 and July 1, 2004.
Who Voted "Yes" and Who Voted "No" - Signed by Gov. Jennifer Granholm on December 23, 2003.
Most Recent Comments
1) Rep. Brown's "no vote explaination" by Admin003 on December 17, 2003Rep. Brown, having reserved the right to explain his protest against the passage of the bill, made the following statement:
"Mr. Speaker and members of the House:
I voted no on Senate Bill 556 (H-1) as amended, because it will do great damage to our children's education.
Cutting $2.5 million from small class size funding will cause long term damage for our students. We know from research that providing for smaller class room sizes is critical to ensuring our children succeed. The research is clear that having smaller class sizes provides for more individualized attention to the students and results in the children performing better.
The substitute also cuts $10 million from the Intermediate School District (ISD) reserve funds. Why would want to set a precedent of punishing ISDs for showing fiscal restraint and saving their funding for emergencies? This makes no sense. This will encourage ISDS to spend their money as soon as they get it, leaving them vulnerable in times of emergencies.
The substitute version cuts $5 million or 30 percent of the $15 million provided to the Detroit School District. This is breaking a promise that was made when the Detroit School takeover occurred. At that time, an annual $15 million was promised to help in the school reform efforts. Finally, the substitute cuts $5 million from Section 20j which is money provided to the "hold harmless" districts.
It is irresponsible to cut education funding further when freezing the income tax rollback for six months would allow us to prevent these cuts and not cut into the education of our children any further. Pausing the income tax will cost $50 per year or $4.17 per month to a family earning $60,000 per year.
For these reasons, I voted no on Senate Bill 556 (H-1)."
Reply
Reps. Hopgood, Kolb and Murphy, having reserved the right to explain their protest against the passage of the bill, made the following statement:
"Mr. Speaker and members of the House:
I voted no on Senate Bill 556 (H-1) because it will do great damage to our children's education.
Cutting $5 million from small class size funding will cause long term damage for our students. We know from research that providing for smaller class room sizes is critical to ensuring our children succeed. The research is clear that having smaller class sizes provides for more individualized attention to the students and results in the children performing better.
The substitute also cuts $10 million from the Intermediate School District (ISD) reserve funds. Why would want to set a precedent of punishing ISDs for showing fiscal restraint and saving their funding for emergencies? This makes no sense. This will encourage ISDS to spend their money as soon as they get it, leaving them vulnerable in times of emergencies.
The substitute version cuts $5 million or 30 percent of the $15 million provided to the Detroit School District. This is breaking a promise that was made when the Detroit School takeover occurred. At that time, an annual $15 million was promised to help in the school reform efforts. Finally, the substitute cuts $5 million from Section 20j which is money provided to the "hold harmless" districts.
It is irresponsible to cut education funding further when freezing the income tax rollback for six months would allow us to prevent these cuts and not cut into the education of our children any further. Pausing the income tax will cost $50 per year or $4.17 per month to a family earning $60,000 per year.
For these reasons, I voted no on Senate Bill 556 (H-1)."
Reply
Rep. Bieda, having reserved the right to explain his protest against the passage of the bill, made the following statement:
"Mr. Speaker and members of the House:
I voted no on SB 556 (H-1) as amended, because these cuts are shortsighted and will do great harm to our children's education, and, I believe, Michigan's long and short-term ability to attract new industry and development.
Cutting from small class funding is a poor way to balance a budget as it will cause long term damage to our students. Image, balancing the budget on the future of our children. Research clearly shows that providing for smaller class room sizes is critical to ensuring that our children succeed. The substitute presented on the floor today also cuts ten million dollars from the Intermediate School District (ISD) reserve funds. Why would anyone in state government want to set a precedent of punishing ISDs showing fiscal restraint and saving their funding for emergencies? This runs counter to common sense and human behavior. This will simply encourage ISDs to spend their money as soon as they get it, leaving them vulnerable in times of emergencies. But I suppose common sense is in short supply.
This also bodes poorly for the so-called "hold harmless" school districts. This bill cuts five million dollars from Section 20J which is money provided to the "hold harmless" school districts -- and it sets the precedent for even greater cuts to these school districts. Why should hold harmless school districts , and the taxpayers in those districts, be punished? This is simply irresponsible. For these reasons I voted no on Senate Bill 556 as amended."
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