2015 House Bill 4110 / Public Act 5

Revise school aid budget

Introduced in the House

Jan. 28, 2015

Introduced by Rep. Al Pscholka (R-79)

To provide a template or "place holder" for a potential supplemental school aid appropriation for Fiscal Year 2014-2015. This bill contains no appropriations, but may be amended at a later date to include the.

Referred to the Committee on Appropriations

Feb. 13, 2015

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Feb. 17, 2015

Amendment offered by Rep. Al Pscholka (R-79)

To revise certain deadlines in the process by which school districts set their budgets. The amendment was to a substitute was adopted that replaces the introduced bill's "place-holder" language with the provisions described for the House-passed bill.

The amendment passed by voice vote

Feb. 18, 2015

Passed in the House 62 to 48 (details)

To shift the sources of funding for the current fiscal year school aid budget to compensate for lower than expected balances in the state “general fund.” This is due to higher than expected payouts to corporations and developers who were granted selective “tax credit” deals by the previous administration. (The draw-down of this fund is happening despite state revenue collections actually rising faster than spending in the current year.) The bill also reduces school aid appropriations to reflect lower than expected public school enrollment figures in the current school year, and reduces some payments intended to reduce the amount of unfunded liabilities in the school employee defined benefit pension system.

Received in the Senate

Feb. 19, 2015

Referred to the Committee on Appropriations

Feb. 26, 2015

Reported without amendment

With the recommendation that the bill pass.

Amendment offered by Sen. Hoon-Yung Hopgood (D-6)

To not fund community colleges from the school aid fund, but from other state accounts. Note: The school aid fund is established by the state constitution, which specifies that it may be used for <a href="http://www.legislature.mi.gov/(S(mng1a2hddfyqg0k0xjohgnqm))/mileg.aspx?page=getobject&objectname=mcl-Article-IX-11&query=on">may be used</a> only "for aid to school districts, higher education, and school employees' retirement systems." According to some <a href="http://www.legislature.mi.gov/(S(mng1a2hddfyqg0k0xjohgnqm))/mileg.aspx?page=getobject&objectname=mcl-Article-IX-11&query=on">other language</a> added by the 1994 Proposal A initiative suggests the fund may not be used for higher education.

The amendment failed 14 to 23 (details)

Passed in the Senate 23 to 14 (details)

To shift the sources of funding for the current fiscal year school aid budget to compensate for lower than expected balances in the state “general fund.” This is due to higher than expected payouts to corporations and developers who were granted selective “tax credit” deals by the previous administration. (The draw-down of this fund is happening despite state revenue collections actually rising faster than spending in the current year.) The bill also reduces school aid appropriations to reflect lower than expected public school enrollment figures in the current school year, and reduces some payments intended to reduce the amount of unfunded liabilities in the school employee defined benefit pension system.

Signed by Gov. Rick Snyder

March 10, 2015