How the Legislative Process Affects the Business Office · How the Legislative Process Affects the Business Office. Chris Glass – West Michigan Talent Triangle

How the Legislative Process Affects the Business OfficeChris Glass – West Michigan Talent Triangle

Legislative Information and Resources

MSBO.org - School Aid Fund Budget

mileg.org – Legislative Information

Michigan Legislature –General Overview

Michigan State Legislature

11056

3820

2015-16 Legislative Session

4,071 Bills Introduced

563 Signed by Governor

13% Become Law

2015-16 Legislative Session

Senate Resolution 218“November as Bladder Health Month”

Michigan Legislature – Budget Process

Budget Process 101Department

RequestsJanuary Revenue

Estimating ConferenceGovernor’s Budget

May Revenue Estimating Conference

House/SenateBudget HearingsHouse/Senate

Pass Budgets

Conference Committee Budget Approved byLegislature/Governor

Fiscal Year Differences

State on October Fiscal Year

Schools on JulyFiscal Year

Michigan Government – A Look at Funding

How State Government is Funded -SAF and GF

Source: House Fiscal Agency

How State Government is Funded -School Aid Fund


School Aid Fund Revenue Trend


General Fund Revenue Trend


School Aid Fund/General Fund-% of Personal Income


Tax Revenue by Source as a Percent of Personal Income


$-

$2,000

$4,000

$6,000

$8,000

$10,000

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$14,000

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State & Local Tax –Burden per Capita

Michigan ranks 34th

nationally in tax burden per capita.

Source: Tax Foundation

$200

($240) ($390)

($420)

($440)

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($500)

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($800)

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2004

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2006

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2008

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2010

2011

2012

2013

2014

2015

2016

2017 (est.)

2018 (est.)

2019 (est.)

2000

Constitutional Revenue Limit

Michigan’s government from 2000 – 2015 is 25% smaller. $10 billion below the Constitutional Revenue Limit.


Foundation Allowance

Foundation Allowance History


Foundation Allowance –Closing Equity Gap


Foundation Allowance Funding Mix


Inequities – Facilities, Special Education, CTE

Facility Inequities

Source: David Arsen, MSU Facility Study, 2008

Taxes required for $89 million school bond project.

Career Technical Education Millages –Further Inequities

Intermediate School District

Vocational Education Millage

Total Taxable Value

Vocational Tax Revenue Generated

Vocational Millage Tax Revenue Generated Per Pupil

Branch ISD 4.2105 $1,171,674,589 $4,933,336 $917.50 Newaygo County RESA 3 $1,344,408,600 $4,033,226 $509.58

Lenawee ISD 2.9191 $3,273,880,483 $9,556,785 $622.65 Wexford-Missaukee ISD 2.5 $1,830,921,991 $4,577,305 $540.85

Char-EM ISD 0.75 $5,070,131,344 $3,802,599 $416.86

Traverse Bay Area ISD 0.7336 $10,188,742,340 $7,474,461 $330.04

Oakland Schools 0.6231 $49,884,342,640 $31,082,934 $164.66

23 ISDs 0 $0 $0.00

Special Education - Further Inequities

MPSERS – Looming Challenges

Source: MPSERS CAFR Report

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Contributions % Funded

MPSERS Contribution v. % Funded

MPSERS Growing Per Pupil Burden

Source: MPSERS CAFR Report

YearMinimum

Foundation

Operational Minimum

FoundationLiability

Per Pupil

Total Liability Payment

(PENSION & OPEB)

2006 $6,875 $6,522 $353 $558,967,7642007 $7,085 $6,775 $310 $481,736,9322008 $7,204 $6,905 $299 $454,090,8192009 $7,316 $6,907 $408 $607,845,9512010 $7,316 $6,805 $511 $744,750,6002011 $7,316 $6,518 $798 $1,143,545,8062012 $6,846 $5,556 $1,388 $1,951,220,9422013 $6,966 $5,712 $1,526 $2,099,055,7282014 $7,026 $5,652 $1,874 $2,543,106,5172015 $7,126 $5,812 $1,973 $2,653,585,150

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State Pension Systems Percent Funded

Michigan ranks 32nd nationally in % funded for its teacher pension system.

Source: Manhattan Institute

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Michigan has the 11th

highest pension debt per pupil in the nation at $16,713 per pupil.

Pension Debt by State – Per Pupil


Teacher Contribution Rates by State

Teacher ContributionEmployer Contribution


Protecting the Classroom – Statewide Figures

21%

79%

CLASSROOM

NON-CLASSROOM

Between 2008-09 and 2015-16 Michigan school districts cut $856 million in their budgets.

79% of those cuts were made outside of the classroom.

Source: FID Data Classroom defined as function codes 111 (elementary), 112 (middle), and 113 (high); doesn’t include special education, summer school or adult-ed.

The End.

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How the Legislative Process Affects the Business Office · How the Legislative Process Affects the Business Office. Chris Glass – West Michigan Talent Triangle