Legislative Update November 9, 2009
Lessel, Rhonda L
In October, the Legislature passed a general fund budget for the State of Michigan’s fiscal year 2009-10. This legislation did not include a final School Aid budget but did result in a $165 per pupil funding reduction to school districts. This reduction in funding resulted in a $1,890,000 cut to the Waterford School District.
Shortly thereafter, the Governor issued an additional pro-rata reduction to this year’s School Aid Fund of $127 per pupil – approximately $1,460,500 to the Waterford School District – and the elimination of 20J funds. 20J is a supplemental fund allocation that the Waterford School District is not entitled to but does affect many of Oakland County’s wealthier school districts. Therefore, the Waterford School District will be required to forfeit approximately $3,350,500 to this year’s budget, which is now over 4-months old.
However, last Thursday the House passed a K-12 Supplemental bill for fiscal year 2009-10 (HB 4860) that reduces the executive proration of $212 million by appropriating the remaining $184 federal ARRA funds the State of Michigan was holding for the 2010 budget year. This bill would restore $117 of the $127 in per pupil funding, which would result in a $115,000 reduction to the Waterford School District. In addition, $25.7 million would be restored to Section 20J school districts (one-half of fiscal year 2009-10 funding level) and appropriates $25.7 million in Section 20L (which is new) to add an equity payment for those districts who received less than $7,356 per pupil in fiscal year 2009-10. Waterford does qualify for 20L funding as we currently receive $7,480 per pupil. Please note the $59 million in total funding for Section 20J and Section 20L would come from the Michigan Future Fund, which is currently an unfunded revenue source. In sum, if HB 4860 is successful, the Waterford School District state funding will be reduced by approximately $2 million for the current school year.
The bill now goes to the Senate where it is unclear what, if any, action will be taken on this supplemental bill. The Legislature has until November 21 to complete action on the proration or the $127 per pupil reduction will occur.
Reminder: Tonight we are hosting an in-depth look into School Finance and the Impact on the Waterford School District. This informational meeting will be held at the Mott Performing Arts Center at 6:00 p.m. If you are unable to attend tonight, the meeting will be broadcast on Channel 22 beginning Wednesday.
Rhonda Lessel, Specialist
School & Community Services
Waterford School District
1150 Scott Lake Road
Waterford, MI 48327
http://www.waterford.k12.mi.us/
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