2015 House Bill 4327 / Public Act 111

Establish overspending public school “early warning system”

Introduced in the House

March 10, 2015

Introduced by Rep. Al Pscholka (R-79)

To revise a law that requires school districts that run a budget deficit to adopt a deficit elimination plan approved by the state, by adding a “pre-plan” provision for a district shown to be experiencing financial stress by the reports and processes proposed by House Bill 4325 and related bills. Also, to establish an “enhanced deficit elimination plan” for a district that fails to meet a regular deficit elimination plan. The bill is part of a package comprised of House Bills 4325 to 4330 intended to create an “early warning system” for school district with financial problems.

Referred to the Committee on Financial Liability Reform

April 15, 2015

Reported without amendment

With the recommendation that the substitute (H-3) be adopted and that the bill then pass.

April 23, 2015

Amendment offered by Rep. John Chirkun (D-22)

To require the state to include an academic reform plan in the "enhanced" deficit elimination plans this package prescribes for chronically overspending school districts.

The amendment failed by voice vote

Amendment offered by Rep. Lisa Posthumus Lyons (R-86)

To require additional reports on overspending districts to be submitted to the legislature.

The amendment passed by voice vote

Passed in the House 60 to 49 (details)

To revise a law that requires overspending school districts to adopt a deficit elimination plan approved by the state. Among other things the bill would require these plans to be posted online and include an academic reform plan, require additional disclosures to the legislature, and prescribe "enhanced" deficit elimination plans for chronically overspending districts. It would also give the Department of Education explicit authority to withhold state school aid payments to an overspending district. This is part of a package comprised of House Bills 4325 to 4330 intended to create an “early warning system” for school district with financial problems.

Received in the Senate

April 28, 2015

Referred to the Committee on Education

June 18, 2015

Reported without amendment

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

Passed in the Senate 25 to 12 (details)

To revise a law that requires overspending school districts to adopt a deficit elimination plan approved by the state. Among other things the bill would require these plans to be posted online and include an academic reform plan, require additional disclosures to the legislature, and prescribe "enhanced" deficit elimination plans for chronically overspending districts. It would also give the Department of Education explicit authority to withhold state school aid payments to an overspending district. This is part of a package comprised of House Bills 4325 to 4330 intended to create an “early warning system” for school district with financial problems.

Received in the House

June 18, 2015

Passed in the House 61 to 47 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. Rick Snyder

July 7, 2015