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2015 House Bill 4327: Establish overspending public school “early warning system”

Public Act 111 of 2015

Introduced by Rep. Al Pscholka (R) on March 10, 2015
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.   Official Text and Analysis.
Referred to the House Financial Liability Reform Committee on March 10, 2015
Reported in the House on April 15, 2015
With the recommendation that the substitute (H-3) be adopted and that the bill then pass.
Amendment offered by Rep. John Chirkun (D) on April 23, 2015
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 in the House on April 23, 2015
Amendment offered by Rep. Lisa Lyons (R) on April 23, 2015
To require additional reports on overspending districts to be submitted to the legislature.
The amendment passed by voice vote in the House on April 23, 2015
Passed 60 to 49 in the House on April 23, 2015.
    See Who Voted "Yes" and Who Voted "No".
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 on April 28, 2015
Referred to the Senate Education Committee on April 28, 2015
Reported in the Senate on June 18, 2015
With the recommendation that the substitute (S-1) be adopted and that the bill then pass.
Received in the House on June 18, 2015
Passed 61 to 47 in the House on June 18, 2015.
    See Who Voted "Yes" and Who Voted "No".
To concur with the Senate-passed version of the bill.
Signed by Gov. Rick Snyder on July 7, 2015

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