HOUSE BILL No. 4299


     February 12, 1997, Introduced by Rep. Oxender and referred to the Committee on Appropriations.


        A bill to amend 1979 PA 94, entitled

   "The state school aid act of 1979,"

   by amending sections 11 and 17b (MCL 388.1611 and 388.1617b), as

   amended by 1996 PA 300.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 11.  (1)  There is appropriated for the public schools

 2     of this state and certain other state purposes relating to educa-

 3     tion from the state school aid fund established by section 11 of

 4     article IX of the state constitution of 1963 the sum of

 5     $7,618,289,000.00, and from the general fund the sum of

 6     $594,052,000.00, for the fiscal year ending September 30, 1996.

 7     In addition, available federal funds are appropriated for

 8     1995-96.  Also, an additional $26,000,000.00 is appropriated for

 9     1995-96 from the uninsured employers' security fund to the state

10     school aid fund, and that $26,000,000.00 is then appropriated for


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 1    1995-96 from the state school aid fund to be used for the

 2     purposes of this act.  There is appropriated for the public

 3    schools of this state and certain other state purposes relating

 4    to education from the state school aid fund established by sec-

 5    tion 11 of article IX of the state constitution of 1963 the sum

 6    of  $8,183,200,000.00  $__________.00, and from the general fund

 7    the sum of  $299,900,000.00  $__________.00, for the fiscal year

 8    ending September 30,  1997  1998.  Also, there is appropriated

 9     an additional $33,000,000.00 from the state school aid fund for

10     the fiscal year ending September 30, 1997.  However, if the

11     director of the department of management and budget determines

12     that the federal government has failed to enact comprehensive

13     reforms in the federal cash welfare and medicaid programs by

14     October 1, 1996, and notifies the senate and house appropriations

15     committees of that determination, there is instead appropriated

16     for 1996-97 from the state school aid fund the sum of

17     $8,230,000,000.00, and from the general fund the sum of

18     $286,100,000.00.  In addition, there is created in the state

19     school aid fund a separate contingency fund in an amount equal to

20     this $13,800,000.00 adjustment and there is created in the gen-

21     eral fund a separate contingency fund in an amount equal to this

22     $13,800,000.00 adjustment.  Contingency fund transfers are autho-

23     rized for 1996-97 in an amount necessary to reverse these

24     adjustments.  These transfers shall conform with the provisions

25     of section 393(2) of the management and budget act, Act No. 431

26     of the Public Acts of 1984, being section 18.1393 of the Michigan

27     Compiled Laws.  Transfers may restore all or part of each



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 1    adjustment.  In addition, available federal funds are

 2    appropriated for  1996-97  1997-98.

 3          (2) In addition to the appropriations under subsection (1),

 4     for the fiscal year ending September 30, 1996 there is appropri-

 5     ated $174,500,000.00 from the reserve for health benefits for the

 6     purposes of this act.  From the general fund money appropriated

 7     in subsection (1) for the fiscal year ending September 30, 1997,

 8     there is appropriated from the general fund the sum of

 9     $96,638,400.00 to the local government payment fund for the pur-

10     pose of maintaining the state spending to local units of govern-

11     ment as required by section 30 of article IX of the state consti-

12     tution of 1963 for the fiscal year ending September 30, 1993.

13     For the fiscal year ending September 30, 1997, there is appropri-

14     ated from the local government payment fund the sum of

15     $96,638,400.00 to the general fund for transfer to the state

16     school aid fund to support the purposes of this act for the

17     1996-97 fiscal year. 

18         (2)  (3)  The appropriations unde