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

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 Historical Perspective of School Funding in Michigan

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 School Funding Increased

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

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 no increase in state aid; 20j vetoed by Governor Recession Hits Public Education

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

Governor (R), House (R), Senate (R) 1. office January 1, Governor Rick Snyder (businessman: Gateways) State Leadership Changes

2011 The Change Begins 90% of all Legislation in 2011

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

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

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)

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

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

KEEP YOUR EYE ON THE BALL