2007 House Bill 4359 / Public Act 137

Appropriations: 2007-2008 School Aid budget

Introduced in the House

Feb. 28, 2007

Introduced by Rep. Matthew Gillard (D-106)

The executive recommendation for the Fiscal Year (FY) 2007-2008 school aid budget. This appropriates $13.431 billion, compared to $13.093 billion, which was the FY 2006-2007 amount enrolled in 2006. This includes a $178 per pupil foundation grant increase to school districts. Note: Gov. Jenifer Granholm’s executive budget recommendations are premised on the legislature adopting a 2 percent tax on services which along with other tax increases and a proposed reduction in business taxes represents a net tax hike of approximately $1 billion.

Referred to the Committee on Appropriations

Aug. 22, 2007

Reported without amendment

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

Substitute offered

To replace the executive proposal for this budget with one that expresses the preferences of the House majority on various spending items and funding sources. For more see the House-passed version, and for detail see <a href="http://www.legislature.mi.gov/documents/2007-2008/billanalysis/House/pdf/2007-HLA-4359-4.pdf">analysis</a> from the non-partisan House Fiscal Agency.

The substitute passed by voice vote

Amendment offered by Rep. Howard Walker (R-104)

To establish that if there is any reduction in funding to schools due to revenue shortfalls, it will come out of their foundation grant “base,” and not from additional “equity payments” whose purpose is to close the funding gap between districts.

The amendment passed by voice vote

Amendment offered by Rep. Fran Amos (R-43)

To tie-bar the bill to House Bill 4980, meaning this bill cannot become law unless that one does also. HB 4980 would prohibit school districts and Intermediate School Districts (ISDs) from hiring a lobbyist, and penalize them 5 percent of their state aid if they do.

The amendment failed 48 to 61 (details)

Amendment offered by Rep. Kimberly Meltzer (R-33)

To tie-bar the bill to House Bill 5083, meaning this bill cannot become law unless that one does also. HB 5083 would require school districts to post on their web sites comprehensive data on their spending.

The amendment failed 52 to 58 (details)

Amendment offered by Rep. Chris Ward (R-66)

To increase "equity" payments to schools that get relatively smaller foundation grants. The extra money would come from eliminating or reducing other spending in the bill, such as eliminating a $16 million increase (to $36 million) in extra money to school districts with declining enrollment, cutting a $20 million bus service subsidy to districts that are geographically large, reducing $2 million for school health centers, cutting some $90 million for a variety of preschool programs, reducing spending on a government "parenting skills" program, and more.

The amendment failed 46 to 64 (details)

Amendment offered by Rep. John Moolenaar (R-98)

To prohibit the imposition after March 1 of the across-the-board “pro-rated” school aid cuts required under current law when tax revenue received by the School Aid Fund is not sufficient to cover previously appropriated state aid to school districts. Instead, the shortfall would have to be made up from the state General Fund, meaning that either cuts to other programs would have to be made, or taxes would have to be raised. Under Proposal A, the governor is required to make pro-rated cuts unless the legislature adopts a different formula.

The amendment passed 98 to 12 (details)

Substitute offered by Rep. Bruce Caswell (R-58)

To adopt a substitute that would increase the amount of general fund support for school budgets, and increase the per pupil grants to schools that get relatively smaller foundation grants by a greater amount than increases to higher-funded districts.

The substitute failed 50 to 58 (details)

Substitute offered by Rep. Matthew Gillard (D-106)

To adopt a new substitute version of the bill that does not include the amendments previously offered and passed. This was a parliamentary maneuvers whose effect was to prevent Republican amendments from being adopted as part of the final bill.

The substitute passed by voice vote

Passed in the House 62 to 48 (details)

The House version of the Fiscal Year (FY) 2007-2008 school aid budget. This appropriates $13.311 billion, compared to $13.093 billion, which was the FY 2006-2007 amount enrolled in 2006. This includes a $100 per pupil foundation grant increase to school districts, and an additional $100 per pupil for districts with an FY 2007-08 foundation of $7,669 or less. The minumum foundation grant would be $7,208. Note: As with all House Budgets, this one authorizes spending well in excess of projected revenues, and is based on the presumption of a substantial tax increase.

Received in the Senate

Aug. 30, 2007

Referred to the Committee on Appropriations

Sept. 6, 2007

Substitute offered

The substitute passed by voice vote

Passed in the Senate 24 to 14 (details)

Received in the House

Sept. 6, 2007

Motion by Rep. Kathy Angerer (D-55)

That Rule 42 be suspended.

The motion failed 57 to 48 (details)

Sept. 11, 2007

Failed in the House 0 to 106 (details)

Received

Received in the Senate

Sept. 12, 2007

In the House

Oct. 30, 2007

Passed in the House 104 to 5 (details)

The House-Senate conference report for the Fiscal Year (FY) 2007-2008 school aid budget. This appropriates $13.007 billion, compared to $13.093 billion, which was the FY 2006-2007 amount enrolled in 2006. This includes per pupil foundation grant increases to school districts ranging from $48 to $96, with the minumum foundation grant would be $7,204.

In the Senate

Oct. 30, 2007

Passed in the Senate 38 to 0 (details)

Signed with line-item veto by Gov. Jennifer Granholm

Nov. 8, 2007