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Budget Recap

By Dee Pettack | July 7, 2023

Comprehensive summaries of the biennial budget are still being drafted.  Below is a is a quick summary for the 2023-25 budget bill (2023 Act 19).

  1. Revenue limits: All districts will get +$325 per pupil, and districts that are still below $11,000/pupil after that, and that are not subject to a freeze on their low revenue ceiling (LRC) threshold, will be able to raise their revenue limit to $11,000. *
  2. Per Pupil Aid for school districts remains at $742/pupil (same as for 2022-23).
  3. July 1 aid estimates are listed on this SFS page (not per pupil amounts).
  4. There will be no High Poverty Aid (which will reduce the levy in eligible school districts); the Governor vetoed the statutory language changes (i.e., preserved the High Poverty Aid statutes), but $0 is appropriated for High Poverty Aid under the budget.
  5. The funding for mental health (school-based services) remains as the JCF motion specified – it will go out on a per pupil basis ($25 M divided by total current year enrollments** in school districts and in Independent Charter Schools). The Legislative Fiscal Bureau estimated $31/pupil – at this time that is the best estimate we have.
  6. Special Education Aid – the assumption is a 33.3% reimbursement rate ($97 million) for FY24 and FY25. Estimates will be made available by DPI for payments in the fall, and the final payments and reimbursement rate will be available at the end of the 2023-24 school year.
  7. Sparsity Aid – the per pupil amount did not change (still $400 or $100 per pupil, depending on district’s membership) – but there is more funding in the appropriation with intention to fully fund aid eligibility. Once the aid run is completed this month by DPI, we will know whether any proration is needed.
  8. BLBC, High-Cost Spec Ed, and High-Cost Transportation aids – The budget bill provided increases to raise reimbursement rates for these aids. At this time, we don’t have per pupil estimates, they are all based on reimbursement of eligible expenditures and not all districts are eligible for these aids.
  9. Transportation – The reimbursement rate for the 12+ miles category for Transportation Aid was raised to $400/member.
  10. The estimated funding for School Library Aids increased by $7 M each year; this aid goes to districts based on total headcount (ages 4-21) living in the district. These estimates will likely not be available until early in the calendar year.

*The Governor’s veto allows school districts to receive $325/pupil each year, continuing after 2024-25 … for 400 years (unless changed by a future Legislature).

**For school districts, the language specifies that DPI is to use the current year revenue limit membership, as defined under s. 115.437 [for Per Pupil Aid) – so it will be the current year’s 3-year rolling average FTE). For ICS, it is the current year enrollment, which people suspect will be the 3rd Friday in September numbers or the school year average w/ January counts (still awaiting confirmation of this).

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