Public Act 6 of 2007

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• Introduced by Sen. Ron Jelinek (R) on February 21, 2007, to provide the “template” or “place holder” for a Senate Republican version of a Fiscal Year 2006-2007 supplemental school aid budget. This bill contains no appropriations, but may be amended at a later date to include them.
  • Referred to the Senate Appropriations Committee on February 21, 2007.
  • Substitute offered in the Senate on March 22, 2007, to replace the previous version of the bill with one that inserts substantial budget cuts (see Senate-passed bill for details. The substitute (and bill) was passed on the same day that Gov. Granholm's budget cutting executive order was approved, which partially closes gap of $762.4 million between expected revenue and desired spending in the current fiscal year. That reduced spending by $344 million, most of which comes from accounting changes, and reducing deposits into government employee pension and post-retirement health care funds to the legal minimum (which is significantly below the actuarially sound minimum), but also included actual "hard" cuts. The substitute passed by voice vote in the Senate on March 22, 2007.
• Passed 20 to 18 in the Senate on March 22, 2007, to reduce Fiscal Year 2006-2007 spending from the School Aid Fund by approximately $337 million. Most of this would come from reducing deposits into school employee pension and post-retirement health care funds to the legal minimum (which is significantly below the actuarially sound minimum.) However, the bill would also reduce per-pupil grants to school districts by $34 (saving $57.4 million); cuts $2.5 million from Intermediate School Districts (ISDs), and $5 million in "categorical" grants.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on March 27, 2007.
  • Referred to the House Appropriations Committee on March 27, 2007.
    • Reported in the House on April 17, 2007, without amendment and with the recommendation that the bill pass.
  • Amendment offered by Rep. Howard Walker (R) on April 17, 2007, to cut the funding to school districts that receive less than the average amount of per-pupil state aid by less than the amount cut from districts that get more than the average amount. The amendment failed by voice vote in the House on April 17, 2007.
  • Substitute offered by Rep. Bruce Caswell (R) on April 17, 2007, to replace the previous version of the bill with one that would close the $377 million gap between previously appropriated spending and expected revenue by reducing a number of spending line items by a small amount, and transferring money from other areas of state spending, in addition to the various accounting changes and pension underfunding contained in other versions. Although adopted, this substitute was superceded by a different substitute, which does not fully close the spending vs. revenue gap. The substitute passed by voice vote in the House on April 17, 2007.
  • Amendment offered by Rep. Bruce Caswell (R) on April 17, 2007, to transfer an additional $2.5 million from the state General Fund to cover lower than expected revenue into the School Aid Fund. The amendment passed by voice vote in the House on April 17, 2007.
  • Substitute offered by Rep. Matthew Gillard (D) on April 17, 2007, to replace the previous version of the bill with one that does not contain the Senate's $34 per pupil reductions in current-year foundation grants to local school disctricts, or its $2.5 million in ISD cuts. This version was subsequently superceded by another substitute with more changes. The substitute passed by voice vote in the House on April 17, 2007.
  • Amendment offered by Rep. Tim Moore (R) on April 17, 2007, to cut the funding to school districts that receive less than the average amount of per-pupil state aid by less than the amount cut from districts that get more than the average amount. The amendment failed 50 to 58 in the House on April 17, 2007.
    Who Voted "Yes" and Who Voted "No"
  • Amendment offered by Rep. John Moolenaar (R) on April 17, 2007, to not reduce school spending, and cover the School Aid Fund revenue shortfall by transfering money from the state General Fund. Note: The General Fund also is overcommitted in spending for the amount of projected revenue. The amendment does not specify which items paid for with General Fund money should be cut instead (or which taxes raised). The amendment passed 103 to 2 in the House on April 17, 2007.
    Who Voted "Yes" and Who Voted "No"
  • Substitute offered by Rep. Steve Tobocman (D) on April 17, 2007, to replace the previous version of the bill with one that does not contain the Senate's $34 per pupil reductions in current-year foundation grants to local school disctricts, or its $2.5 million in ISD cuts. The substitute passed by voice vote in the House on April 17, 2007.
• Passed 90 to 17 in the House on April 17, 2007, to reduce Fiscal Year 2006-2007 appropriations from the School Aid Fund by approximately $275 million. Most of this would come from reducing deposits into school employee pension and post-retirement health care funds to the legal minimum (which is significantly below the actuarially sound minimum.) In terms of actual spending cuts, $5 million in "categorical" grant spending would be eliminated. The bill does not include the $34 per pupil foundation grant reduction the Senate adopted, and does not fully close the $377 million gap between school aid fund appropriations and expected revenue. It is anticipated that an "Executive Order" imposing pro-rated foundation grant cuts across all school districts will make up the difference.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on April 18, 2007.
• Passed 37 to 1 in the Senate on April 24, 2007, to reduce Fiscal Year 2006-2007 appropriations from the School Aid Fund by approximately $275 million. Most of this would come from reducing deposits into school employee pension and post-retirement health care funds to the legal minimum (which is significantly below the actuarially sound minimum.) In terms of actual spending cuts, $5 million in "categorical" grant spending would be eliminated. The bill does not include the $34 per pupil foundation grant reduction the Senate originally adopted, and does not fully close the $377 million gap between school aid fund appropriations and expected revenue. It is anticipated that an "Executive Order" imposing pro-rated foundation grant cuts across all school districts will make up the $62 million difference.
  Who Voted "Yes" and Who Voted "No"
• Signed by Gov. Jennifer Granholm on April 30, 2007.