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Keeping Your Eye
on the BallPeter J. Dion
SuperintendentBay Shore School District
January 31, 2012Nassau-Suffolk School Boards Association
Hilton Long Island/Huntington
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1994
• shift from local property tax to sales tax (goods)1. reduced property tax 2. increased sales tax (4c to 6c)
• 2c to SAF3. created a per student revenue from State4. lottery proceeds into SAF
• GOAL:1. to close the gap between low funded districts and high funded districts
2. to get 80% of districts to the same level
Historical Perspective of
School Funding in Michigan 1994-2011
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• gradually to $7,300 per student• 1999: “20j” categorical created for “out of formula” districts (44) 1. increase based on a formula prior to 1994 mileage rate • salaries increased• retirement costs transferred from state to local districts
1994 - 2005School Funding Increased
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Auto Industry1. manufacturing goes south and overseas
2. layoffs abound: white collar and blue collar
3. labor negotiations troublesome
4. unemployment increases tension
2005Michigan’s Recession
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• per student revenue freezes/decreases1. layoffs begin; negotiations troublesome
• “one-time” State revenue sources depleted
• gridlock in Lansing (State Capital) 1. Democratic Governor Granholm (D),
House (D), Senate (R)
• debated: 1. tax on service? – fails
2. consolidate districts? – fails
• 2009-10 no increase in state aid; 20j vetoed by Governor
2007-10Recession Hits Public
Education
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• unemployment – 14.2%
• State School Board/local Boards’ control diminishes
• legislation passed to shore up application for RTTT funds
• RTTT gets rejected 1. no labor support
• May 2010: Legislative Action 1. retirement incentive/disincentive
for all public employees
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• Governor (R), House (R), Senate (R)
1. office January 1, 2011
2. Governor Rick Snyder (businessman: Gateways)
2010-11State Leadership Changes
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2011The Change Begins
90% of all Legislation in 2011
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The following legislation gets passed (2011)(Michigan.gov)
• PA 41 – provide for taxing of public employee pensions
• PA 54 – step increases and health care increases do not survive collective bargaining agreements
• PA 100 – teacher discharge and demotion • PA 101 – modify teacher tenure
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• PA 102 – permit layoff and recall without regards to seniority
• PA 103 – expand prohibited subjects of bargaining
• PA 104/105 - ISD Superintendent can also serve as local District Superintendent
• PA 152 – mandatory employee contribution to health care insurance
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• PA 201 – diminishing seniority rights
• PA 222/32 – require November School Board elections
• PA 241 – require bullying policies
• PA 260 – require consolidation of services
• PA 336 – increased standards for teacher evaluation (RTTT application)
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• Emergency Financial Manager Created 1. Deficit Districts (41)
• Fiscal accountability 1. “transparency” increased
2. dashboard funding tied to “best practices”
a. $100/student increase if you have 4 of 5
best practices in place
• mandate “Schools of Choice” statewide: discussion 1. resulted in lifting cap on charters
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What is the cost to educate a child?
RTTT – What is the top?
Ponder This…
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KEEP YOUR EYE ON
THE BALL