The School Aid Bill proposals in the State of Michigan that will determine K-12 funding for 2012-13, have become increasingly complex. Versions proposed by Gov. Snyder, the House, and Senate vary, but the net effect of each would result in yet another loss of revenue for Michigan school districts.
The issue is further complicated by the changes in retirement rates, determined by the School Aid Bill, and newly proposed legislation. All three bills propose a massive increase in the retirement rate, resulting in millions of dollars of cost increases for local school districts not offset by increases in state funding. In Grosse Pointe, the change will increase our costs by $1.6 million and a staggering $5.7 million from just three years ago.
State lawmakers finally appear to be grasping the enormity of this problem. (I’ve written aout this extensively, with the most recent post on the issue here.) The Senate has proposed Bill 1040 that would deliver significant system reform and also shift millions of dollars of this cost from school districts to the employees who will ultimately enjoy the benefit. In Grosse Pointe’s case, the legislation would amount to $256 per pupil in budget relief.
I have summarized all three versions of the School Aid Bill in the table below to translate its effect on the Grosse Pointe School System budget. Each represents a signficant loss in funding, but the retirement cost transfer balances that loss in the Governor’s proposal, represents a net loss in the Senate version, and a slight gain in the House version.
