Budget Guidelines
GSRP funds are appropriated annually based on the State of Michigan’s fiscal year: October 1 through September 30. MiLEAP issues allocations to ISDs based on this fiscal year. ISDs may select an alternate twelve-month period overlapping the State fiscal year in which to expend GSRP grant funds, most typically July 1 through June 30. Of note however, is the inherent risk incurred in beginning expenditures July 1, prior to the start of the State fiscal year during a year in which the School Aid budget is unfinished and GSRP allocations have yet to be issued. A twelve-month “grant expenditure period” is identified in NexSys for every ISD and subrecipient.
There is an exception to the twelve-month period for a startup that chooses to use October 1 through September 30 as their grant expenditure period; a budget and grant expenditure period of up to fifteen months is allowable in the first year of operation only to allow for necessary expenditures to establish the classroom(s) and pay staff prior to October 1, though only twelve months of funding is available. First year use of funding for a startup that will exceed twelve months will need to be documented in the notes section of the budget submitted in the Program Implementation Plan (PIP) in NexSys. For a startup using July 1 through June 30 as the grant expenditure period, business is as usual.
The ISD must maintain budgets for program, transportation, curriculum, start up funding, and any other subsection of 32d that contains only those costs that are attributable to the Great Start Readiness Program, and that would not be incurred if the program were not being offered. Eligible costs include transportation costs. Program budgets will be prepared that are clearly attributable to GSRP. GSRP funding may not be used to pay for expenses where federal funding is available as a primary funding source (e.g. federal food and nutrition programs). In those cases, federal dollars must be used to the fullest extent possible before GSRP funds may be utilized.
ISDs are to ensure that revenues and expenses related to services and materials purchased for their respective grant expenditure period are recorded in their accounting system for that same period. ISDs are required to maintain separate ledgers (cost centers) for each allocation of funding accepted by the ISD including program funds, carryover funds, transportation funds, start up grants, and curriculum funds as applicable. General ledger information must align with budgets and final expenditure report information in NexSys. Revenue is not allowed to be earned on any GSRP funding. See the resources for this section for documents to assist with budgeting.
GSRP funds may be used to pay for the following:
- Selected Program Evaluation Tool (Classroom Coach, CLASS®) for each classroom where even one GSRP-funded child is enrolled;
- Instructional materials and supplies; ISD approved supplemental curricula
- The cost for breakfast, lunch and/or snack over and above all reimbursements the program is eligible for from applicable federal food programs (see Use of Federal Food Programs and GSRP below);
- Lead teacher, associate teacher, early childhood specialist, and other GSRP staff hired to support the classroom salaries and fringe benefits;
- Bonuses and incentive payments (only in certain circumstances; refer to Bonuses and Incentive Payment section below for further information);
- Family engagement activities;
- Transportation for students;
- Health support services;
- Student support services;
- Staff development and teacher/family training;
- Ordering copies of official transcripts from college/universities to support MiRegistry membership and validation;
- Travel necessary to enable GSRP staff to implement the early childhood program;
- Office supplies and materials;
- Communication;
- Printing and binding of GSRP materials;
- Construction or renovation projects. All construction or renovation projects over $10,000 are considered capital outlay. If a portion of any capital outlay item is charged to GSRP, approval is required before the cost is incurred. For more information on capital outlay, refer to the Capital Outlay section below;
- Furniture such as shelving and equipment;
- State tax, including sales and property tax, when an organization is for profit;
- Unemployment expenses. If the program is a “contributing employer”, costs incurred as a payroll tax may be charged accordingly on an ongoing basis with payroll expenses. If the program is a “reimbursing employer,” costs incurred for the layoff of a GSRP staff member may be charged accordingly with documentation to support the charges applicable to GSRP;
- Indirect ISDs not to exceed 4%, subrecipients not to exceed the federal rate; and
- Up to 4% administrative costs and 2% for outreach and recruitment costs incurred by the ISD as defined in GSRP legislation (Section 32d(15) and (16)) for administration of the grant. See the 4% Administrative Costs and Outreach and Recruiting sections below.
Great Start Readiness Program funds MAY NOT be used to pay for:
- Existing administrative, educational, or support personnel funded through other sources (i.e. a K-12 principal cannot be paid 100% with general funds and also charging GSRP for part of salary);
- Costs that should be covered by Special Education;
- Any costs associated with breakfast, lunch and/or snack if the program does not participate in federal food programs for which it is eligible. Exceptions do apply, see Use of Federal Food Programs and GSRP below;
- Supplemental curriculum or materials unless the approval process has been completed and approved by the ISD and kept on file for review;
- Any state tax, including sales and property tax, when an organization is not for profit;
- Maintenance, utilities, or any other costs when included in a rental agreement or any other agreement;
- Depreciation or amortization;
- Gift cards to make purchases or use as incentive payments for employee or contracted employee use or for family participation within advisory committees or family participation groups. (Per Section 380.1814 of The Revised School Code Act 451 of 1976, a person shall not use public funds for purchasing gifts.)
This list is not all inclusive. Please contact MiLEAP if you have questions.
