Leads on Legislative Issues
HMO Use Tax and its $200 million Impact on the School Aid Fund
The School Aid Fund could lose an additional $200 million dollars in revenue if the federal government does not allow
the state of Michigan to continue to collect a use tax on Medicaid Managed Care Organizations. This tax generates $600
million a year, two-thirds of which is distributed to the General Fund ($400 million) and one-third to the School Aid Fund
($200 million). The General Fund amount is used to provide matching funds for federal Medicaid dollars. The federal
government has indicated that the tax is not “broad based” enough to be used to draw down federal Medicaid dollars. It
has ordered the state to stop collecting the tax for that purpose by December 31, 2016.
A coalition of legislators, business organizations, healthcare providers and others are encouraging the Department of
Health and Human Services to challenge the federal government’s determination. They cite similar tax levies in
California and Pennsylvania as evidence of likely success if Michigan were to challenge the federal ruling. The $200
million dedicated to the school aid fund, roughly $150 per pupil, is at risk if the appeal is unsuccessful, as there is no
Our primary concern if this appeal isn’t successful is the potential loss of roughly $150 per pupil, as there is no guarantee
the replacement revenue source will provide any resources to the School Aid Fund.
M-STEP Results Released, Scores Indicate Tougher Standards – Common Core is Working
It’s no secret that Michigan has a long ways to go to become a top 10 performing state for education in the next 10
years. We started that journey by adopting stronger standards for English Language Arts and Mathematics several years
ago. This year was the first year that M-STEP assessment was given to students to cover those new standards. Many
people have been curious as to how our students performed on the new assessment. After a lengthy delay, Deputy
Superintendent Vanessa Kessler from the MDE provided an aggregate score update to the House Education Committee.
The aggregate proficiency table can be found below.
Mathematics scores in Grade 3 and 4 really stand out since their scores were significantly higher than the other grade
levels. Deputy Superintendent Keesler attributed those higher scores to the fact that the students in Grade 3 and 4 have
spent their entire education career under the tougher standards. The Department has established a goal that by 2025
85% of students will be on track for career and college-ready. You can view the short presentation by clicking here.
State Treasurer testifies that DPS will be Out of Cash by Summer
State Treasurer Nick Khouri and Detroit Public Schools Emergency Manager Darnell Earley provided testimony before
the House Appropriations School Aid Subcommittee this week and indicated that without state intervention the district
will be out of cash by this summer. The nearly two hour long hearing provided a detailed overview of the debt that has
accumulated.
Since 2004 DPS has ended each fiscal year with operating deficits around $70 million dollars. They have paid these
deficits off through short term borrowing and then later converting those loans into long-term bonds. The issue has
become so large that $1,100 per pupil is required to service the district’s operational. In addition, the student population
continues to decline by 10-12 percent each year. The financial situation can best be described by looking at the chart
below.
Legislators are digging deeper into the finances of DPS to get a better understanding of how and if the current crisis will
be solved through the Governor’s DPS legislative proposal. Many legislators feel that if the state picks up the $715
million tab the debt clock will just start over. Treasurer Khouri and Emergency Manager Earley contend that the district
has no chance at remaining solvent without the support. The House Fiscal Agency put together an analysis of the DPS
financial issue that can be seen here.
In the News
Why Michigan education officials aren't freaking out over dismal scores on new M-STEP test
Rothwell: Assessing Michigan’s talent future
1 in 4 Michigan students faces bullying in schools, report says
School starting before Labor Day? Bill to allow it raises alarms with Michigan tourism industry
Advocacy in Action
The Friends of Kent County Schools hosted a grassroots meeting where nearly 100 people attended to hear a legislative
update from their state legislators. In addition several law enforcement officials provided their perspective on Senate Bill
442. Legislators touched on evaluation, third grade reading, road funding and other legislative proposals. The law
enforcement officials shared their views on SB442 and SB561, legislation that would allow anyone with an “endorsed”
concealed pistol license to carry their weapons into public schools and all other places previously designated as gun-free
zones: day care centers, college dormitories, bars and taverns, sporting arenas, etc. All of the officers agreed the
current “open carry” quirk in the law is a mistake and most, with the exception of Lt. David Kok of the Kent County
Sheriff’s Office believed the concealed carry rights proposed in Senate Bills 442 and 561 are equally bad. Attendees were
encouraged to contact legislators to make their voice heard on these important matters.
Thanks for all you do!
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News Release
Contact: Martin Ackley, Director of Public and Governmental Affairs, (517) 241-4395
Bill DiSessa, Spokesperson, (517) 335-6649
M-STEP RESULTS RESET THE ACADEMIC BAR OFHIGHER EXPECTATIONS FOR MICHIGAN STUDENTS
October 27, 2015LANSING – Michigan has reset the bar on learning with the release of the rigorous M-STEP statewide student assessment results taken last spring. “With this all-new and more rigorous test, we expected statewide student scores to be lower than what we’d seen with the old MEAP tests,” said State Superintendent Brian Whiston. “While the overall scores on this new test are low, they aren’t as low as we first thought they could be. “In order to prepare our students for the careers of the 21st Century and to vault Michigan to become a Top Ten education state in 10 years, we need high standards and rigorous assessments,” Whiston added. “This year’s results set the new baseline from which to build.” After 44 years of the Michigan Education Assessment Program (MEAP) test, 80 percent of Michigan students across the state sat down in front of computers to take the first-ever M-STEP. A paper and pencil option also was available for the handful of districts not yet prepared to test online. Whiston said the M-STEP measures the state’s standards that give students a deeper understanding to what they are learning. It requires students to move beyond bubble sheets and multiple choice questions to a more interactive, engaging assessment. Students also must demonstrate critical thinking, problem solving, and deeper knowledge through written responses. “Wherever we set the achievement bar, the students will jump over it,” Whiston said. “It’s about expectations. As a state, we need to raise the expectations.” The M-STEP results will be released in a staggered sequence, with the public release of statewide aggregates today. Schools and districts then will receive testing data through the MDE secure web site for schools’ access only. Later this year, school and district aggregate results will be available. Additionally, MDE will provide schools with useful reports and data that can be used to guide and improve student instruction based upon the first year of implementation of the M-STEP later this year. MDE provided preliminary reports to schools within about two weeks of the close of each testing window. The 2016 M-STEP will include improvements announced this summer by the department, based upon feedback from school districts during the first administration of the test and survey responses from more than 26,000 students and 5,000 parents following the spring testing window. MDE heard that the testing time was an issue for schools in this first implementation and made some initial adjustments during that testing window. The department later announced that for Spring 2016, the testing time for the Michigan Merit Exam will be reduced by eight hours, and by two and a half hours for grades three, four, six, and seven. The test also will be administered in smaller portions over multiple days so students will not be required to complete the test all in one sitting. Whiston said that the department currently is conducting an assessment vision workgroup with education stakeholders to see how student assessments can be streamlined for spring 2017 and beyond.
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