LANSING – Governor Rick Snyder’s budget recommendation for K-12 schools makes a variety of changes, including pushing back the submission date for annual financial reports from November to October every year, and providing more flexibility in districts’ spending of funds for at-risk students.

The House Appropriations School Aid Subcommittee heard an overview of those recommendations on Tuesday, which Robbie Jameson with the State Budget Office said was “meaty” compared to recommendations in the past.

In addition to pushing back the submission date for annual financial reports, the recommendation calls for a joint effort between the Department of Education, the Department of Treasury and the Center for Educational Performance and Information to develop an early warning system for distressed schools. The system would compile data and look for caution flags concerning funding levels and student enrollment.

It also creates a distressed district emergency fund with $10 million to help mitigate the effects on students if a district’s fiscal distress is likely to cause disruptions in learning, Ms. Jameson said.

Districts also would be required to notify the Department of Education immediately if they have a deficit, and the districts must submit a preplan financial report to Treasury and the Department of Education within 30 days of notification.

The Department of Education would be allowed to withhold some or all of state aid payments to the districts if it determined it necessary to incentivize the district to eliminate the deficit.

At-risk pupil funding, based on the amount of students receiving free or reduced lunch, would remain unchanged at $309 million plus an additional $808 million in federal funds to assist schools in improving student achievement.

However, more flexibility would be granted in how the schools spend the funds, as long as the goals of third graders reading at grade level and students becoming college and career ready are met.

The recommendation also would provide one-time payments to districts that provide dual enrollment options to students and $250,000 for the Department of Education to commission an independent party to conduct a study on the state’s current career readiness education system.

Another $250,000 is recommended to pay for some or all of the Advanced Placement and International Baccalaureate test fees for low and middle-income students.

Vocational education funding eliminates $1 million in grants for districts, but other dollars remain at $27.6 million. $1.4 billion is recommended for special education services: $938.9 million in state funds (a decrease of $41.5 million) and $444 million in federal funds.

Education programs in juvenile justice facilities get an increase of $28,000 to $2.2 million, programs that serve wards of the courts get a recommended $8 million and funding for the Youth ChallNGe Program is maintained at $1.5 million.

Rep. Brandon Dillon (D-Grand Rapids), minority vice chair of the subcommittee, asked if the administration has considered reducing the per-pupil grant for students enrolled only in cyber schools.

Jameson said the administration has not done so, but expects conversations to continue.

Dillon also criticized the $398 million from the School Aid Fund going toward university and community college funding.

As for funds to assist distressed districts in the governor’s recommendation, Rep. Terry Brown (D-Pigeon) asked how many districts the budget assumes will be dissolved. The department said the idea in the budget is simply to plan ahead.

Rep. Bill Rogers (R-Brighton), chair of the subcommittee, praised the additional funds for preschool education. He said he wanted the additional $65 million last year, but he’ll take it now.

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