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Comparing the 2013 school aid budgets [Update: includes final conference report]

Budget bill main provisions: final conference report compared to Governor's proposal and House and Senate versions

Provision Current law Governor's proposal House version Senate version Final conference report
Foundation allowance
[Sec. 20]
Minimum is $6,846 per pupil; "basic" (maximum) is $8,019 No change No change Uses proposed MPSERS reimbursement and performance funding (see below) to increase foundation allowance: $116 increase in the "basic" (to $8,135) and up to $232 increase for lower-spending districts (minimum to $7,078) $80 million increase.

The minimum foundation is increased by $120 per pupil, from $6,846 to $6,966. Districts with per-pupil funding above $6,966 would get no increase.
Foundation allowance index
[Sec. 20(12)]
Current law requires the principals of the semi-annual revenue estimation conference to calculate an index that would indicate how much the minimum foundation allowance would have to rise to keep up with inflation. The minimum allowance is required to follow that index unless the legislature specifies a different level of funding (which has always been the case). Governor proposes to eliminate this requirement. Agrees with Governor Agrees with Governor Eliminates this section.
"Best practices" and performance funding
[Sec. 22f & j]
$154 million
$100 per pupil for districts that meet four of five specified "best practices"
$190 million

"Performance" incentives added: up to $100 per pupil for meeting test score growth in math and reading for grades 3-8 and on high school assessment.

Remaining funds to districts that meet five of six "best practices": 1) district holds health insurance policy (or does not employ staff); 2) participates in schools of choice; 3) measures individual student growth in each subject area twice a year; 4) offers students opportunities to earn post-secondary credit while in high school; 5) offers online or blended learning programs; 6) creates a public dashboard of financial and academic indicators.
Replaces performance incentives with $40 million for per-pupil peformance grants to districts which test each student in grades 2-11 in reading and math using a computer-adaptive test at least twice per year.

$115 million for best practices

Grants of $75 per pupil for districts which meet six of eight "best practices": the six from the Governor's proposal plus 7) competitively bid at least one non-instructional service in FY13; and 8) provides physical education and health education consistent with State policies.
Senate removes this section entirely. Section 22f:
$80 million for "best practices" grants only.

To receive grants of $52 per pupil, districts must meet seven of eight criteria taken from the House version of the budget (except need only offer physical education OR health education).

Section 22j:
$30 million for district performance grants similar to Governor's proposal, but leaves model up to MDE.
Grants to districts and ISDs for consolidation
[Sec. 22g]
new "One-time" appropriation of $10 million for competitive grants to reimburse transition costs when districts or ISDs consolidate services. Includes, with small changes. Includes, with small changes. Same as House
Technology infrastructure grants
[Sec. 22i]
new Not included. $75 million for grants to help districts and ISDs build infrastructure neessary for online student growth assessments. Not included. Same as House, but with $50 million rather than $75 million
Early Childhood Investment Program collaborative grants
[Sec. 32b]
$5.9 million in grants to ISDs to create great start collaboratives and similar purposes Continues existing funding. Agrees with Governor. Repeals and rolls funding into new $19.8 millioin block grant program to ISDs to support early childhood programs Same as Senate
Great Start Readiness Program
[Sec. 32d]
$95.4 million in SAF funding to operate district programs; $8.9 million in GF funding for competitive grants to entities other than schools Continues existing funding. Agrees with Governor. Increases funding to $105.4 million. Increases funding to $100.4 million; retins $8.9 million for competitive grants.
ISD operational funding
[Sec. 81]
$62.1 million to ISDs for basic operational funding Retains total funding but makes 5% of amount to each ISD contingent on meeting new "best practices":
1) develop and implement service consolidation plan; 2) get competitive bids for non-instructional services worth at least $50,000; 3) develop a technology plan on behalf of local districts; 4) provide a public dashboard; 5) work in a consortium to develop IT management systems for student information, instruction, and business services
$65.2 million

Continues existing funding and makes an additional 5% available to ISDs which meet four of five "best practices" from the Governor's proposal
Continues existing funding and adds $2 million for additional 3.2% increases for ISDs which meet Governor's criteria Same as Senate
Compouter adaptive testing new Not included Not included $18 million to fund provision of computer-adaptive tests for all students, in parallel with the MEAP test. Not included
MPSERS contribution rate
[Sec. 147]
24.66% for employees hired before July 2010;
23.23% for those hired after;
retiree health costs are 8.5 percentage points of the total
FY 13 rates are 27.37% and 26.14%; 8.75% is retiree health

FY 14 rates are 31.21% and 29.94%; 8.75% is retiree health

Rates include 3% surcharge because of court injunction; if State wins court case, rates would decline 3%
same same Same as Governor's proposal, but adds language to allow change if alterations to MPSERS in SB 1040 are passed.
MPSERS offset payment
[Sec 147a]
$155 million as "one-time" payment to districts to help with pension payments. Averages $100 per pupil but is allocated by share of total payroll. Increases funding to $179 million and removes "one time" language Increases appropriation to $248.5 million to reimburse about 2.8% points of required contribution Repeals section. Uses $177 million to fund foundation allowance increase, and $2 million for ISD "best practices" Keeps current language with funding of $155 million, and excludes ISDs.
MPSERS reserve fund
[Sec 147b]
One-time $133 million reserve for retirement system restructuring Removes section. Keeps section but no further appropriation. Reduces FY12 appropriation to $110 million, and earmarks that amount to cover costs of new health savings plan included in Senate pension restructuring bill (SB 1040). Keeps current language and adds $41 million as deposit for FY13.
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