Dianne Easterling, Coordinator Michigan Department of Education Office of Special Education October, 2017

Size: px

Start display at page:

Download "Dianne Easterling, Coordinator Michigan Department of Education Office of Special Education October, 2017"

Brian Barnett
5 years ago
Views:

1 Dianne Easterling, Coordinator Michigan Department of Education Office of Special Education October, 2017

2 Local Funds Non homestead property taxes (18 mills) ISD special education millage (Act 18) Federal Funds estimated at $444,000,000 IDEA Part B IDEA Part C State Funds estimated at $956,246,100 Foundation allowance payments Durant payments Categorical payments 1

3 Headlee Amendment passed in 1978 Proposal A passed in 1994 Durant Supreme Court ruling of

4 Limited certain taxes; mandated voter approval for other taxes Prohibits the state from reducing a funding proportion required by state law Increased costs for new mandated activities or levels or activities beyond the law are borne by the state 3

5 Designed to... Lower property taxes capped at 18 mills Raise per pupil funding to a basic level Fund schools on a per pupil basis not a property tax basis Changed the combination of state/local funding local funding 63%; state funding 37% local funding 20%; state funding 80% 4

6 Determined the state failed to pay the required percentages of funding for special education and specialized transportation Determined the percentages to be Special Education = % Specialized Transportation = % Created a Hold Harmless guarantee under Sections 52 and 58 Total necessary costs = Total approved costs 5

7 Special Education Total Approved Costs Specialized Transportation Total Approved Costs Special Education Pupil FTE District s Foundation Allowance 6

8 Step 1 Determine the ESTIMATED LIABILITY Section 52 Cost of Special Education multiplied by % PLUS Cost of Specialized Transportation multiplied by % 7

9 Step 2 Determine the FOUNDATION ALLOWANCE PAYMENT Special education blended FTE Multiplied by Full FOUNDATION ALLOWANCE (capped at $8,049) Section 51a.2 Special Education Foundation 8

10 Step 3 Determine the SECTION 51a CATEGORICAL AMOUNT Take the ESTIMATED LIABLITY AMOUNT (step 1) Subtract the FOUNDATION ALLOWANCE AMOUNT (step 2) Balance = Section 51a Special Education Categorical 9

Step 4 Check for HOLD HARMLESS eligibility 1996-97 Section 52 reimbursement plus

11 Step 4 Check for HOLD HARMLESS eligibility Section 52 reimbursement plus Section 58 reimbursement minus Step 3 amount Balance = Section 51a3 Hold Harmless 10

12 11

13 12

14 PAYMENT FORMULA FOR LEAs and PSAs

15 Section 22a Proposal A Obligation Payment Purpose to satisfy the Proposal A constitutional per pupil funding obligation. It allocates payments to guarantee a FY foundation allowance for every pupil. Local District amount is calculated by subtracting the district s current year local operating revenue per pupil from the lesser of the district s FY foundation allowance or $6,500. The resulting state portion per pupil is multiplied by the district s current year total pupil membership. Public School Academy a PSA in operation in FY will receive a payment equal to the current year membership multiplied by the PSA s FY foundation allowance. PSAs not in operation in FY will not receive a payment under this section. (PSAs not in operation in FY have a similar payment under Section 11(3) called PSA Protected on the State Aid Status Report.) 14

16 Section 51c Special Education Headlee Obligation Payment Purpose to satisfy the State s Headlee funding obligation for special education and special education transportation as determined by the 1997 ruling in Durant v. the State of Michigan. The amount is calculated by taking the total approved costs of special education multiplied by %, the total approved costs of special education transportation multiplied by %, and adding the two figures together. 15

17 Section 22b Discretionary Payment Purpose to make discretionary payments that are not considered per pupil revenue for school district operating purposes. To receive funding under this section districts must comply with sections b, a, b, g of the revised School Code and section 21f of the State School Aid Act. The payments are equal to the sum of the calculations made under Sections 20, 51a2, 51a3 and 51a11 minus the payments made under Sections 22a and 51c. Section 20 calculates foundation allowance for regular education pupils Section 51a2 calculates foundation allowance for Section 52 special education pupils Section 51a3 calculates the special education hold harmless allowance Section 51a11 calculates foundation allowances for Section 53 special education pupils 16

19 18

20 19

21 20

24 23

25 24

26 25

28 27

29 28

30 29

31 Office of Special Education, Program Finance Special Education Pupil Membership FTE Special Education Costs Specialized Transportation Costs Special Education Hold Harmless Phone Office of State Aid and School Finance General Education Pupil Membership FTE Local Revenue Per Membership Foundation Allowance Special Education Hold Harmless Phone

The Basics of School Funding. Kathryn Summers, Associate Director Senate Fiscal Agency July 2015

The Basics of School Funding. Kathryn Summers, Associate Director Senate Fiscal Agency July 2015 The Basics of School Funding Kathryn Summers, Associate Director Senate Fiscal Agency www.senate.michigan.gov/sfa July 2015 School Finance How are Local School Districts Financed? Three Primary Sources