FY 2020-21 SCHOOL AID SUPPLEMENTAL                                     S.B. 29 (S-3):

                                                             SUMMARY AS PASSED BY THE SENATE

 

 

 

 

 

 

 

 

Senate Bill 29 (Substitute S-3 as passed by the Senate)

Sponsor:  Senator Jim Stamas

Committee:  Appropriations

 

Date Completed: 2-26-21

 


CONTENT

 

The bill would amend the State School Aid Act to provide supplemental appropriations for fiscal year (FY) 2020-21. Specifically, the bill would add $807.3 million in Federal Elementary and Secondary School Emergency Relief (ESSER) funds, $125.2 million in Federal Governor's Emergency Education Relief (GEER) funds, and $313.5 million in State School Aid Fund (SAF) money, for a gross supplementation appropriation of $1,246.1 million.

 

The bill would distribute $650.0 million of ESSER formula funds to districts (including public school academies) based on each district's share of Title I, Part A allocations as required under Federal law. The State of Michigan will receive a total of roughly $1.66 billion in ESSER funds, of which a minimum of 90% (just under $1.5 billion) is required to be distributed as formula grants; the bill would appropriate $650.0 million of that minimum.

 

Roughly 10% of the ESSER funds ($157.3 million) in Federal funds appropriated in the bill reflect the 'discretionary' portion of Federal ESSER money the State of Michigan could use if not allocated as formula grants. The bill would appropriate this $157.3 million Federal ESSER funding along with $10.2 million in GEER funds and $115.5 million in SAF for distribution to districts where the district's per-pupil allocation from the $650.0 million distribution is less than $450. In those cases, the Federal and State funding would be used to ensure that the district received $450 per pupil when combining ESSER formula funds with ESSER 'discretionary', GEER, and SAF money.

 

The bill would appropriate the full $86.8 million in GEER funds earmarked for nonpublic schools, which would be distributed as required under Federal law. Other GEER funds appropriated under the bill include $22.4 million for before- and after-school programs and $5.9 million for parental expenses related to summer school programs.

 

In addition to the $115.5 million SAF allocated for per-pupil equalization grants, the bill would appropriate another $198.0 million SAF for the following programs: $90.0 million for K-8 summer school programs; $45.0 million for high school credit recovery programs; $10.0 million for innovative summer school and credit recovery remediation services; $21.3 million for payments to staff operating summer school programs; $20.0 million for school mental health services; and, $11.7 million for benchmark assessments. This would bring the total SAF appropriated in the bill to $313.5 million.

 

The table below itemizes the programs and their fund sources as found in the bill.


 

School Aid Supplemental Items and Fund Sources, Fiscal Year 2020-21

Program

Federal ESSER

Federal GEER

School Aid Fund

Gross

Nonpublic schools

$0

$86,777,000

$0

$86,777000

Formula grants

650,000,000

0

0

650,000,000

Equalization $450pp

157,349,300

10,195,100

115,455,600

283,000,000

Summer programs

0

0

90,000,000

90,000,000

Credit recovery

0

0

45,000,000

45,000,000

Before/after school

0

22,400,000

0

22,400,000

Innov. remediation

0

---

10,000,000

10,000,000

Staff incentives

0

---

21,309,900

21,309,900

Parental expenses

0

5,853,000

0

5,853,000

Mental health

0

---

20,000,000

20,000,000

Benchmark tests

---

---

11,719,200

11,719,200

TOTALS

$807,349,300

$125,225,100

$313,484,700

$1,246,059,100

 

FISCAL IMPACT

 

The bill would appropriate $807,349,300 from Federal ESSER money, $125,225,100 from Federal GEER money, and $313,484,700 SAF money for various FY 2020-21 supplemental funding. Payments to local units of government (school districts and intermediate school districts) would increase by $313,484,700.

 

                                                                    Fiscal Analyst:  Kathryn Summers

 

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.