Legislative Update – 1/22/18

Enhancement Millage Legislation Clears the House

Last week the full House passed SB 574.  The vote was 55-52- the minimum number of votes needed to pass the bill. The bill would allow PSA’s to receive enhancement millage money if they are located in an ISD where a millage passed. The bill included two additional amendments:

1. An amendment to ensure that charters with audited statements with unresolved material findings would be unable to receive funds.
2. Cyber schools must have 100% of students located in the ISD to receive funds.

The other amendments that were previously adopted in committee include:

-No retroactivity

-PSAs need to participate in the last count day before the language was accepted by the clerk to receive any funding

-Multi-site language clarified so that students from out of the district won’t receive funding if they are operated by same EMO or authorizer.

-Special education students in center based programs will receive funding

The bill now heads to the full Senate where concurrence on the House changes is expected.

Personal Exemption Discussion Continues

As we reported last week, the legislatures discussion restoration and amount of the personal exemption continues to be a hot topic at the Capitol. The new Federal tax law eliminated the exemption in favor of a different structure. According to State officials, this could mean that Michigan families would not be able to apply the exemption on their state returns which could raise taxes on a family of four buy $680. The amount of the personal exemption was $4,000.

Last week, the Senate passed SB 748. This bill restores the personal exemption and increases it to $4,500 in FY 18, $4,600 in FY 19, and $4,700 in FY 20. Further, the bill specifies increases beyond FY 20.

In a similar fashion, the House took testimony on a package of tax bills that include HB 5420. The legislation would restore the personal exemption and increase it to $4,300 in FY 18, $4,600 in FY 19, and $4,800 in FY 20.

Both packages would result in a loss of hundreds of millions of dollars for the General Fund and the School Aid Fund. School groups, including MEMSPA, signed on to a letter supporting the restoration of the current $4,000 exemptions but opposing going above and beyond that threshold. We will keep you posted as this issue evolves.

Legislature Overrides Governor Snyder’s Veto

The legislature held a rare vote to override a veto on legislation that would allow two bills that accelerate the sales and tax exemptions on the trade-in values of an automobile or recreational vehicle. The bills, which are now Public Acts, will reduce revenue to the School Aid Fund and General Fund by a significant amount. The change takes effect this month.

Senate Committee Approves Changes to EDP and SIP

The Senate Economic Development Committee approved changes to the EDP and SIP process this week. SB 684 would require that each pupil reviews and revises their educational development plan during each year of high school. EDPs would need to contain information on careers including current and projected job openings in Michigan. Finally, the EDP would need to allow the student the opportunity to develop a talent portfolio and explore careers specific to the pupil’s interest.

Senate Bill 685 revises the school improvement plan process by requiring the plans to provide pupils in grades 6-12 with work-based learning activities. Additionally, a new requirement to ensure that every pupil in grade 12 must know how to develop and use a resume, letter of reference, school record, and talent portfolio. An additional requirement that requires age-appropriate career information is distributed to students in K-12 is also added as part of the legislation.

The bills will now be considered by the full Senate and have the support of the Talent and Economic Development Agency.