Keeping Your Eye on the Ball

1. Keeping Your Eye on the Ball Peter J. Dion Superintendent Bay Shore School District January 31, 2012 Nassau-Suffolk School Boards Association Hilton Long Island/Huntington

2. Historical Perspective of School Funding in Michigan 1994-2011 1994 • shift from local property tax to sales tax (goods) 1. reduced property tax 2. increased sales tax (4c to 6c) • 2c to SAF 3. created a per student revenue from State 4. 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

3. 1994 - 2005School Funding Increased • 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

4. 2005Michigan’s Recession Auto Industry 1. manufacturing goes south and overseas 2. layoffs abound: white collar and blue collar 3. labor negotiations troublesome 4. unemployment increases tension

5. 2007-10 Recession Hits Public Education • per student revenue freezes/decreases 1. 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

6. • 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

7. 2010-11State Leadership Changes • Governor (R), House (R), Senate (R) 1. office January 1, 2011 2. Governor Rick Snyder (businessman: Gateways)

8. 2011 The Change Begins 90% of all Legislation in 2011

9. 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

10. • 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

11. • 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)

12. • 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

13. Ponder This… What is the cost to educate a child? RTTT – What is the top?

14. KEEP YOUR EYE ONTHE BALL