2015 House Bill 4325 / Public Act 109

Establish overspending public school “early warning system”

Introduced in the House

March 10, 2015

Introduced by Rep. Earl Poleski (R-64)

To establish a process by which school districts would be required to submit their budget projections and assumptions to the state each July, and require intermediate school districts to declare whether they concur with the projections and assumptions. If they did not this would trigger a detailed reporting and oversight process specified in this and related bills. This is part of a package comprised of House Bills 4325 to 4330 intended to create an “early warning system” for school districts 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)

The amendment failed by voice vote

Amendment offered by Rep. Patrick Somerville (R-23)

The amendment passed by voice vote

Amendment offered by Rep. Klint Kesto (R-39)

To exempt school districts with specified levels of surplus in their budgets from the bill's fiscal condition reporting requirements.

The amendment passed by voice vote

Amendment offered by Rep. Pam Faris (D-48)

To require new school board members to receive training on public school governance and finance.

The amendment failed by voice vote

Passed in the House 60 to 49 (details)

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-5) be adopted and that the bill then pass.

Amendment offered

To leave it to the discretion of the state Department of Treasury whether an overspending school district would be subject to the bill's increased oversight and reporting requirements.

The amendment passed by voice vote

Amendment offered by Sen. David Knezek (D-5)

To not require the enactment of House Bills 4327 to 4332 before this bill can become law. Among other things those bills authorize withholding state funding from an overspending school district that fails to follow the procedures this bill would require.

The amendment failed by voice vote

Passed in the Senate 25 to 12 (details)

To establish a process by which school districts would be required to submit their budget projections and assumptions to the state each July, and require intermediate school districts to declare whether they concur with the projections and assumptions. If they did not this would trigger a detailed reporting and oversight process specified in this and related bills. This is part of a package comprised of House Bills 4325 to 4330 intended to create an “early warning system” for school districts with financial problems.

Received in the House

June 18, 2015

Amendment offered by Rep. Earl Poleski (R-64)

To remove one in a list of events or conditions that must be met to trigger additional state oversight of a school district.

The amendment passed by voice vote

Passed in the House 63 to 45 (details)

To concur with the Senate-passed version of the bill, except for one change (see Poleski amendment).

Received in the Senate

June 30, 2015

Passed in the Senate 26 to 9 (details)

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

Signed by Gov. Rick Snyder

July 7, 2015