Keeping Your Eye

on the BallPeter J. Dion

SuperintendentBay Shore School District

January 31, 2012Nassau-Suffolk School Boards Association

Hilton Long Island/Huntington

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

• 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

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

• 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

• 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

• Governor (R), House (R), Senate (R)

1. office January 1, 2011

2. Governor Rick Snyder (businessman: Gateways)

2010-11State Leadership Changes

2011The Change Begins

90% of all Legislation in 2011

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

• 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

• 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)

• 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

What is the cost to educate a child?

RTTT – What is the top?

Ponder This…

KEEP YOUR EYE ON

THE BALL