HOUSE BILL No. 5755 April 22, 1998, Introduced by Rep. Profit 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, 36, 37, and 39 (MCL 388.1611, 388.1636, 388.1637, and 388.1639), sections 11, 36, and 39 as amended by 1997 PA 142 and section 37 as amended by 1996 PA 300, and by adding section 82; and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 11. (1) For the fiscal year ending September 30, 1998, 2 there is appropriated for the public schools of this state and 3 certain other state purposes relating to education the sum of 4 $8,717,471,600.00 from the state school aid fund established by 5 section 11 of article IX of the state constitution of 1963 and 6 the sum of $377,935,400.00 from the general fund. For the fiscal 7 year ending September 30, 1999, there is appropriated for the 8 public schools of this state and certain other state purposes 05723'98 TAV 2 1 relating to education the sum of $9,036,198,400.00 from the state 2 school aid fund established by section 11 of article IX of the 3 state constitution of 1963 and the sum of$420,613,500.004 $457,113,500.00 from the general fund. In addition, available 5 federal funds are appropriated for 1997-98 and for 1998-99. 6 (2) The appropriations under this section shall be allocated 7 as provided in this act. Money appropriated under this section 8 from the general fund and from available federal funds shall be 9 expended to fund the purposes of this act before the expenditure 10 of money appropriated under this section from the state school 11 aid fund. If the maximum amount appropriated under this section 12 from the state school aid fund for a fiscal year exceeds the 13 amount necessary to fully fund allocations under this act from 14 the state school aid fund, that excess amount shall not be 15 expended in that state fiscal year and shall not lapse to the 16 general fund, but instead shall remain in the state school aid 17 fund. 18 (3) If the maximum amount appropriated under this section 19 and sections 11f and 11g from the state school aid fund for a 20 fiscal year exceeds the amount available for expenditure from the 21 state school aid fund for that fiscal year, payments under sec- 22 tions 11f, 11g, and 51a(2) shall be made in full and payments 23 under each of the other sections of this act shall be prorated on 24 an equal percentage basis as necessary to reflect the amount 25 available for expenditure from the state school aid fund for that 26 fiscal year. However, if the department of treasury determines 27 that proration will be required under this subsection, the 05723'98 3 1 department of treasury shall notify the director of the 2 department of management and budget, and the director of the 3 department of management and budget shall notify the legislature 4 at least 30 calendar days or 6 legislative session days, which- 5 ever is more, before the department reduces any payments under 6 this act because of the proration. During the 30 calendar day or 7 6 legislative session day period after that notification by the 8 director of the department of management and budget, the depart- 9 ment shall not reduce any payments under this act because of pro- 10 ration under this subsection. The legislature may prevent prora- 11 tion from occurring by, within the 30 calendar day or 6 legisla- 12 tive session day period after that notification by the department 13 of management and budget, enacting legislation appropriating 14 additional funds from the general fund, countercyclical budget 15 and economic stabilization fund, state school aid fund balance, 16 or another source to fund the amount of the projected shortfall. 17 Sec. 36. (1) From the state school aid fund money appropri- 18 ated in section 11, there is allocated an amount not to exceed 19 $55,000,000.00 for 1997-98 and an amount not to exceed 20$55,000,000.00$91,500,000.00 for 1998-99 for school readiness 21 grants to enable eligible districts, as determined under 22 section 37, to develop or expand, in conjunction with whatever23federal funds may be available, including, but not limited to,24federal funds under title I of the elementary and secondary edu-25cation act of 1965, Public Law 89-10, 108 Stat. 3519, chapter 126of title I of the Hawkins-Stafford elementary and secondary27school improvement amendments of 1988, Public Law 89-10, 10205723'98 4 1Stat. 140, and the head start act, subchapter B of chapter 8 of2subtitle A of title VI of the omnibus budget reconciliation act3of 1981, Public Law 97-35, 42 U.S.C. 9831 to 9835, 9836 to 9844,49846, and 9848 to 9852a,comprehensive compensatory programs 5 designed to improve the readiness and subsequent achievement of 6educationally disadvantaged children as defined by the depart-7ment who willELIGIBLE CHILDREN. FOR 1997-98, TO BE ELIGIBLE 8 FOR FUNDING UNDER THIS SECTION, A CHILD PARTICIPATING IN THE PRO- 9 GRAM SHALL be at least 4, but less than 5, years of age,as of 10 December 1 of the school year in which the programs are offered, 11 andwhoMUST show evidence of 2 or more risk factors as defined 12 in the state board report entitled "children at risk" that was 13 adopted by the state board on April 5, 1988. FOR 1998-99, TO BE 14 ELIGIBLE FOR FUNDING UNDER THIS SECTION, A CHILD SHALL BE AT 15 LEAST 4, BUT LESS THAN 5, YEARS OF AGE AS OF DECEMBER 1 OF THE 16 SCHOOL YEAR IN WHICH THE PROGRAMS ARE OFFERED, AND MUST SHOW EVI- 17 DENCE OF 1 OR MORE RISK FACTORS AS DEFINED IN THE STATE BOARD 18 REPORT ENTITLED "CHILDREN AT RISK" THAT WAS ADOPTED BY THE STATE 19 BOARD ON APRIL 5, 1988. FOR 1999-2000 AND THEREAFTER, TO BE ELI- 20 GIBLE FOR FUNDING UNDER THIS SECTION A CHILD SHALL BE AT LEAST 3, 21 BUT LESS THAN 5, YEARS OF AGE AS OF DECEMBER 1 OF THE SCHOOL YEAR 22 IN WHICH THE PROGRAMS ARE OFFERED, AND MUST SHOW EVIDENCE OF 1 OR 23 MORE RISK FACTORS AS DEFINED IN THE STATE BOARD REPORT ENTITLED 24 "CHILDREN AT RISK" THAT WAS ADOPTED BY THE STATE BOARD ON APRIL 25 5, 1988. IT IS THE INTENT OF THE LEGISLATURE TO APPROPRIATE SUF- 26 FICIENT ADDITIONAL FUNDS FOR THIS SECTION FOR 1999-2000 TO FUND 27 THE PARTICIPATION OF 3-YEAR-OLDS IN PROGRAMS UNDER THIS SECTION. 05723'98 5 1 (2) FUNDING UNDER THIS SECTION SHALL BE USED IN CONJUNCTION 2 WITH WHATEVER FEDERAL FUNDS MAY BE AVAILABLE, INCLUDING, BUT NOT 3 LIMITED TO, FEDERAL FUNDS UNDER TITLE I OF THE ELEMENTARY AND 4 SECONDARY EDUCATION ACT OF 1965, PUBLIC LAW 89-10, 108 STAT. 5 3519, 20 U.S.C. 6301 TO 6304, 6311 TO 6338, 6361 TO 6370, 6391 TO 6 6399, 6421 TO 6472, 6491 TO 6493, AND 6511 TO 6514, FORMER CHAP- 7 TER 1 OF TITLE I OF THE HAWKINS-STAFFORD ELEMENTARY AND SECONDARY 8 SCHOOL IMPROVEMENT AMENDMENTS OF 1988, AND THE HEAD START ACT, 9 SUBCHAPTER B OF CHAPTER 8 OF SUBTITLE A OF TITLE VI OF THE OMNI- 10 BUS BUDGET RECONCILIATION ACT OF 1981, PUBLIC LAW 97-35, 42 11 U.S.C. 9831 TO 9835, 9836 TO 9844, 9846, AND 9848 TO 9852a. 12 (3) A comprehensive compensatory program funded under this 13 section shall include an age-appropriate educational curriculum, 14 nutritional services, health screening for participating chil- 15 dren, a plan for parent and legal guardian involvement, and pro- 16 vision of referral services for families eligible for community 17 social services.In addition, from the general fund money18appropriated in section 11, there is allocated for 1997-98 and19for 1998-99 an amount not to exceed $200,000.00 each fiscal year20for the purposes of subsection (2).21 (4)(2)From the general fundallocation in subsection22(1)MONEY APPROPRIATED IN SECTION 11, there is allocated each 23 fiscal year for 1997-98 and 1998-99 an amount not to exceed 24 $200,000.00 for a competitive grant to continue a longitudinal 25 evaluation of children who have participated in the Michigan 26 school readiness program. 05723'98 6 1 (5)(3)A district receiving a grant under this section 2 may contract for the provision of the comprehensive compensatory 3 program and retain for administrative services an amount equal to 4 not more than 5% of the grant amount. MONEY USED TO EMPLOY OR 5 CONTRACT FOR EARLY CHILDHOOD SPECIALISTS TO SUPPORT THE PROGRAM 6 SHALL NOT BE COUNTED IN CALCULATING THIS 5% AMOUNT. 7 (6) THE DEPARTMENT SHALL NOT LIMIT THE AMOUNT OF GRANT PRO- 8 CEEDS A DISTRICT RECEIVING A GRANT UNDER THIS SECTION MAY EXPEND 9 FOR PROFESSIONAL DEVELOPMENT CONCERNING EARLY CHILDHOOD 10 EDUCATION. 11 Sec. 37. (1) A district is eligible for an allocation under 12 section 36 if the district meets all of the requirements in 13 subsections (2), (3), and (4). 14 (2) The district shall submit a preapplication, in a manner 15 and on forms prescribed by the department, by a date specified by 16 the department in the immediately preceding state fiscal year. 17 The preapplication shall include a comprehensive needs assessment 18 and community collaboration plan, and shall identify all of the 19 following: 20 (a) The estimated total number of children in the community 21 who meet the criteria of section 36 and how that calculation was 22 made. 23 (b) The estimated number of children in the community who 24 meet the criteria of section 36 and are being served by other 25 early childhood development programs operating in the community, 26 and how that calculation was made. 05723'98 7 1 (c) The number of children the district will be able to 2 serve who meet the criteria of section 36, including a 3 verification of physical facility and staff resources capacity. 4 (d) The estimated number of children who meet the criteria 5 of section 36 who will remain unserved after the district and 6 community early childhood programs have met their funded 7 enrollments. The school district shall maintain a waiting list 8 of identified unserved eligible children who would be served when 9 openings are available. 10 (3) The district shall submit a final application for 11 approval, in a manner and on forms prescribed by the department, 12 by a date specified by the department. The final application 13 shall indicate all of the following that apply: 14 (a) The district complies with the state board approved 15 standards of quality and curriculum guidelines for early child- 16 hood programs for 4-year-olds AND, BEGINNING WITH APPLICATIONS 17 FOR 1999-2000, 3-YEAR-OLDS. 18 (b) The district provides for the active and continuous par- 19 ticipation of parents or guardians of the children in the pro- 20 gram, and describes the district's participation plan as part of 21 the application. 22 (c) The district only employs for this program the 23 following: 24 (i) Teachers possessing proper training, including, but not 25 limited to, a valid teaching certificate and an early childhood 26 (ZA) endorsement. This provision does not apply to a district 27 that subcontracts with an eligible child development program. In 05723'98 8 1 that situation a teacher must have a valid teaching certificate 2 and may have a child development associate credential (CDA) 3 instead of an early childhood (ZA) endorsement. 4 (ii) Paraprofessionals possessing proper training in early 5 childhood development or who have completed at least 1 course in 6 an appropriate training program, including, but not limited to, a 7 child development associate credential (CDA) or associate degree 8 in child development or other similar program, as approved by the 9 department. 10 (d) The district has submitted for approval a program budget 11 that includes only those costs not reimbursed or reimbursable by 12 federal funding, that are clearly and directly attributable to 13 the early childhood readiness program, and that would not be 14 incurred if the program were not being offered. If children 15 other than those determined to beeducationally disadvantaged16 ELIGIBLE participate in the program, state reimbursement under 17 section 36 shall be limited to the portion of approved costs 18 attributable toeducationally disadvantagedELIGIBLE children. 19 (e) The district has established a school readiness advisory 20 committee consisting of, at a minimum, classroom teachers for 21 prekindergarten, kindergarten, and first grade; parents or guard- 22 ians of program participants; representatives from appropriate 23 community agencies and organizations; the district curriculum 24 director or equivalent administrator; and, if feasible, a school 25 psychologist, school social worker, or school counselor. In 26 addition, there shall be on the committee at least 1 parent or 27 guardian of a program participant for every 18 children enrolled 05723'98 9 1 in the program, with a minimum of 2 parent or guardian 2 representatives. The committee shall do all of the following: 3 (i) Ensure the ongoing articulation of the early childhood, 4 kindergarten, and first grade programs offered by the district. 5 (ii) Review the mechanisms and criteria used to determine 6 participation in the early childhood program. 7 (iii) Review the health screening program for all 8 participants. 9 (iv) Review the nutritional services provided to program 10 participants. 11 (v) Review the mechanisms in place for the referral of fami- 12 lies to community social service agencies, as appropriate. 13 (vi) Review the collaboration with and the involvement of 14 appropriate community, volunteer, and social service agencies and 15 organizations in addressing all aspects of educational 16 disadvantage. 17 (vii) Review, evaluate, and make recommendations to a local 18 school readiness program or programs for changes to the school 19 readiness program. 20 (f) The district has submitted for departmental approval a 21 plan to conduct and report annual school readiness program evalu- 22 ations using criteria approved by the department. At a minimum, 23 the evaluations shall include assessment of the gains in educa- 24 tional readiness and progress through first grade of children 25 participating in the school readiness program. 26 (g)MoreFOR 1997-98, MORE than 50% of the children 27 participating in the program meet the income eligibility criteria 05723'98 10 1 for free or reduced price lunch, as determined under the national 2 school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 3 1753, 1755 to 1761, 1762a, 1765 to 1766b,and1769, 1769b TO 4 1769c, AND 1769f to 1769h, or meet the income and all other eli- 5 gibility criteria for the family independence agency unified 6 child day care program. FOR 1998-99 AND THEREAFTER, CHILDREN WHO 7 MEET THE INCOME ELIGIBILITY CRITERIA FOR FREE OR REDUCED PRICE 8 LUNCH, AS DETERMINED UNDER THE NATIONAL SCHOOL LUNCH ACT, CHAPTER 9 281, 60 STAT. 230, 42 U.S.C. 1751 TO 1753, 1755 TO 1761, 1762a, 10 1765 TO 1766b, 1769, 1769b TO 1769c, AND 1769f TO 1769h, OR MEET 11 THE INCOME AND ALL OTHER ELIGIBILITY CRITERIA FOR THE FAMILY 12 INDEPENDENCE AGENCY UNIFIED CHILD DAY CARE PROGRAM, WILL BE GIVEN 13 PRIORITY FOR ENROLLMENT IN THE PROGRAM. 14 (H) BEGINNING IN 1998-99, THAT THE DISTRICT WILL USE AT 15 LEAST 3% OF THE FUNDS RECEIVED UNDER SECTION 36 TO EMPLOY OR CON- 16 TRACT FOR AN EARLY CHILDHOOD EDUCATION SPECIALIST FOR THE 17 PROGRAM. A DISTRICT MAY ENGAGE THE SPECIALIST COOPERATIVELY WITH 18 OTHER DISTRICTS OR THROUGH THE INTERMEDIATE DISTRICT. 19 (4) A consortium of 2 or more districts shall be eligible 20 for an allocation under section 36 if the districts designate a 21 single fiscal agent for the allocation. A district or intermedi- 22 ate district may administer a consortium described in this 23 subsection. A consortium shall submit a single preapplication 24 and application for the children to be served, regardless of the 25 number of districts participating in the consortium. FOR THE 26 PURPOSES OF SECTION 39, THE FOUNDATION ALLOWANCE FOR A CONSORTIUM 27 SHALL BE CONSIDERED TO BE THE WEIGHTED AVERAGE FOUNDATION 05723'98 11 1 ALLOWANCE AMONG THE PARTICIPATING DISTRICTS, WEIGHTED AS TO 2 MEMBERSHIP. 3 (5) With the final application, an applicant district shall 4 submit to the department a resolution adopted by its board certi- 5 fying the number of4-year-oldELIGIBLE childrenwho show evi-6dence of risk factorsas described in section 36,who meet the7income eligibility criteria for free or reduced price lunch or8the income and all other eligibility criteria for the family9independence agency unified child day care program, andwho will 10 participate in a school readiness program funded under 11 section 36. 12 Sec. 39. (1) The tentative allocationfor each fiscal13yearto each eligible district under section 36 shall be deter- 14 mined by multiplying the number of children determined in 15 section 38 or the number of children the district indicates it 16 will be able to serve under section 37(2)(c), whichever is less, 17 by $3,100.00 FOR 1997-98 AND BY $3,500.00 FOR 1998-99, and shall 18 be distributed among districts in decreasing order of concentra- 19 tion of eligible children as determined by section 38 until the 20 money allocated in section 36 is distributed. BEGINNING IN 21 1999-2000, THE TENTATIVE ALLOCATION FOR EACH FISCAL YEAR TO EACH 22 ELIGIBLE DISTRICT SHALL BE DETERMINED BY MULTIPLYING THE NUMBER 23 OF CHILDREN THE DISTRICT INDICATES IT WILL BE ABLE TO SERVE UNDER 24 SECTION 37(2)(C) BY THE DISTRICT'S FOUNDATION ALLOWANCE. 25 (2) A district that has not less than 50 eligible children 26 shall receive priority over other eligible districts other than 27 those districts funded under subsection (3). 05723'98 12 1 (3) A district that received funds under this section in at 2 least 1 of the 2 immediately preceding fiscal years shall receive 3 priority in funding over other eligible districts. However, 4 funding beyond 3 state fiscal years is contingent upon the avail- 5 ability of funds and documented evidence satisfactory to the 6 department of compliance with all operational, fiscal, adminis- 7 trative, and other program requirements. 8 (4)AFOR 1997-98, A district that offers supplementary 9 day care funded by funds other than those received under this 10 section and therefore offers full-day programs as part of its 11 early childhood development program shall receive priority in the 12 allocation of funds under this section over other eligible dis- 13 tricts other than those districts funded under subsection (3). 14 (5) For 1997-98 ONLY, FOR any district with 315 or more eli- 15 gible pupils, the number of eligible pupils shall be 65% of the 16 number calculated under section 38. However, none of these dis- 17 tricts may have less than 315 pupils for purposes of calculating 18 the tentative allocation under section 36. 19 (6) FOR 1998-99 AND THEREAFTER, FOR ANY DISTRICT WITH 1,000 20 OR MORE PUPILS, THE NUMBER OF ELIGIBLE PUPILS SHALL BE 75% OF THE 21 NUMBER CALCULATED UNDER SECTION 38. HOWEVER, NONE OF THESE DIS- 22 TRICTS MAY HAVE LESS THAN 1,000 PUPILS FOR PURPOSES OF CALCULAT- 23 ING THE TENTATIVE ALLOCATION UNDER SECTION 36. 24 (7)(6)If, taking into account the total amount to be 25 allocated to the district FOR 1997-98 as calculated under this 26 section, a district determines that it is able to include 27 additional eligible children in the school readiness program FOR 05723'98 13 1 1997-98 without additional funds under this section, the district 2 may include additional eligible children but shall not receive 3 additional funding under this section for those children. 4 SEC. 82. FROM THE MONEY APPROPRIATED IN SECTION 11, THERE 5 IS ALLOCATED TO INTERMEDIATE DISTRICTS FOR 1998-99 AN AMOUNT NOT 6 TO EXCEED $4,000,000.00 FOR EARLY CHILDHOOD EDUCATION 7 SPECIALISTS. THE AMOUNT ALLOCATED TO EACH INTERMEDIATE DISTRICT 8 UNDER THIS SECTION SHALL BE AN AMOUNT SUFFICIENT FOR THE INTERME- 9 DIATE DISTRICT TO EMPLOY 1 EARLY CHILDHOOD EDUCATION SPECIALIST 10 ON A FULL-TIME EQUATED BASIS FOR EACH 1,000 CHILDREN IN THE 11 INTERMEDIATE DISTRICT ELIGIBLE UNDER SECTION 36. THE EMPLOYMENT 12 SHALL BE IN ACCORDANCE WITH THE APPLICABLE COLLECTIVE BARGAINING 13 AGREEMENT. AN INTERMEDIATE DISTRICT SHALL USE FUNDS RECEIVED 14 UNDER THIS SECTION ONLY FOR THE PURPOSES OF THIS SECTION, AND 15 SHALL PROVIDE TO THE DEPARTMENT THE INFORMATION THE DEPARTMENT 16 REQUIRES TO CALCULATE THE AMOUNT OF THE PAYMENTS UNDER THIS 17 SECTION. 05723'98 Final page. TAV