SENATE BILL NO. 910
  
  
  EXECUTIVE BUDGET BILL
  
  
  
                                                 February 24, 1998, Introduced by Senators DE GROW, SCHWARZ, 
                                                   STEIL, GOUGEON and MC MANUS and referred to the Committee on                      Appropriations.
  
  
  
     A bill to make appropriations for the department of education and
  certain other purposes relating to education for the fiscal year ending
  September 30, 1999; to provide for the expenditure of the
  appropriations; to prescribe the powers and duties of certain state
  departments, school districts, and other governmental bodies; and to
  provide for the disposition of fees and other income received by certain
  legal entities and state agencies.
  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
    Sec. 101.  There is appropriated for the department of education for
  the fiscal year ending September 30, 1999, from the following funds:
  DEPARTMENT OF EDUCATION 
  APPROPRIATIONS SUMMARY:     
        Full-time equated unclassified positions . . . . . .  6.0
        Full-time equated classified positions . . . . 542.6
   GROSS APPROPRIATION . . . . . . . .     $   862,854,900     
  Interdepartmental grant revenues:   
   Total interdepartment grants and 
        intradepartmental transfers. . . . .            1,373,000
ADJUSTED GROSS APPROPRIATION . . . . . .   $861,481,900
Federal revenues:   
   Total federal revenues. . . . .     797,027,200
Special revenue funds:   
   Total local revenues. . . . . .       6,119,600
   Total private revenues. . . . .         842,700
   Total other state restricted revenues . . . . .     13,251,200
   State general fund/general purpose. . . . . . .   $ 44,241,200
STATE BOARD OF EDUCATION/OFFICE 
   OF THE SUPERINTENDENT  
        Full-time equated unclassified positions . . . . . 6.0
        Full-time equated classified positions . . . 17.0
   State board of education, per diem  . . . . . .   $     19,400
   Unclassified positions - 6.0 FTE positions. . . . .         490,800
   Performance study/charter schools . . . .         150,000
   State board/superintendent operations--17.0
        FTE positions. . . . .    2,647,500   GROSS APPROPRIATION . . . . . .    $  3,307,700        Appropriated from:     
Federal revenues:   
   Federal revenues. . . . . .        556,500
Special revenue funds:
   Private foundations . . . . . .           8,000
   State general fund/general purpose. . . . . . .   $  2,743,200
CENTRAL SUPPORT 
   Full-time equated classified positions. . .  58.2
   Central support--49.2 FTE positions . . . . . .   $  4,811,800
   Workers' compensation . . . . .          93,600
   Education commission of the states. . . . . .           87,400
   Building occupancy charges - property management     
        services . . . .       1,212,300   Training and orientation workshops. . . . . . .        100,000
   Administrative law operations--9.0 FTE positions. . . . .        801,200   State tenure commission, per diem. . . . .      11,100
   GROSS APPROPRIATION . . . . . .    $  7,117,400
        Appropriated from:     
Federal revenues:   
   Federal revenues. . . . . .      3,350,600
Special revenue funds:   
   Certification fees. . . . .        117,600
   Driver fees . . . . .          15,300
   Motorcycle license fees . . . .           4,300
   Private occupational school license fees. . . . . .           4,900
   Safety education fund . . . . .           1,100
   School loan exception fees. . . . . .         31,700
   Teacher testing fees. . . . . .           5,200
   Training and orientation workshop fees. . . . .        100,000
   State general fund/general purpose. . . . . . .   $  3,486,700
SCHOOL SUPPORT SERVICES
        Full-time equated classified positions . . . 41.4
   School support operations--41.4 FTE positions . . . . . .   $4,727,400
   GROSS APPROPRIATION . . . . . .    $  4,727,400        Appropriated from:
Federal revenues: 
   Federal revenues. . . . . .      3,773,900
Special revenue funds:
   Commodity distribution fees . . . . .         40,700
   Driver fees . . . . .         463,400
   Motorcycle license fees . . . .         134,700
   Safety education fund . . . . .         113,600
   State general fund/general purpose. . . . . . .   $    201,100
TECHNOLOGY AND INFORMATION SERVICES
        Full-time equated classified positions . . . 36.9
   Technology and information operations--
        36.9 FTE positions . . . .    $5,947,700
   GROSS APPROPRIATION . . . . . .    $  5,947,700
   Appropriated from:
Interdepartmental grant revenues:
   IDG from consumer and industry services . . . . . .         404,600
   IDG from Michigan jobs commission . . . .         212,900
   IDG from treasury . . . . .        150,000
Federal revenues:
   Federal revenues. . . . . .      3,346,200
Special revenue funds:
   Certification fees. . . . .        247,600
   Driver fees . . . . .          10,400
   State general fund/general purpose. . . . . . .   $  1,576,000
STANDARDS, ASSESSMENT AND ACCREDITATION SERVICES
        Full-time equated classified positions .     66.9
   Standards, assessment and accreditation 
     operations - 66.9 FTE POSITIONS . . . .    $  5,984,200
   Test development and administration . . . . . .       7,388,400
   GROSS APPROPRIATION . . . . . .    $ 13,372,600        Appropriated from:     
Federal revenues:   
   Federal revenues. . . . . .      2,388,700
Special revenue funds:   
   Private foundations . . . . . .          14,400
   State general fund/general purpose. . . . . . .   $ 10,969,500
SPECIAL EDUCATION SERVICES     
        Full-time equated classified positions . .   56.1
   Special education operations--56.1 FTE 
        positions. . . . . . .   $4,764,800
   GROSS APPROPRIATION . . . . . .    $  4,764,800
        Appropriated from:
Federal revenues:   
   Federal revenues. . . . . .      4,603,800
Special revenue funds:   
   Certification fees. . . . .         19,000
   State general fund/general purpose. . . . . . .   $    142,000
LANSING, MICHIGAN SCHOOL FOR THE BLIND FORMER SITE
   General services. . . . . .   $1,311,800
   GROSS APPROPRIATION . . . . . .    $  1,311,800
        Appropriated from:     
Interdepartmental grant revenues:   
   IDG from corrections. . . . . .         605,500
Special revenue funds:   
   Gifts, bequests, and donations. . . . . .          10,000
   Private rent. . . . .         605,500
   State employee child care center. . . . .          90,800
   State general fund/general purpose. . . . . . .   $          0
MICHIGAN SCHOOLS FOR THE DEAF AND BLIND     
        Full-time equated classified positions . . .120.3
   Schools for the deaf and blind 
        operations--117.0 FTE positions. . . . . .   $ 10,746,300
   Summer institute. . . . . .        312,100
   Michigan deaf and blind center--2.3 FTE positions . . . . . .         301,400
   Camp tuhsmeheta- 1.0 FTE position . . . .         250,000
   Private gifts-blind . . . . . .          90,000
   Private gifts-deaf. . . .         50,000
   GROSS APPROPRIATION . . . . . .    $ 11,749,800
        Appropriated from:     
Federal revenues:   
   Federal revenues. . . . . .      1,286,200
Special revenue funds:   
   Local cost sharing (schools for deaf and blind) . . . . .      6,019,100
   Local school district service fees. . . . . . .        100,500
   Gifts, bequests, and donations. . . . . .         460,000
   Student insurance revenue . . . . . .        201,000
   State general fund/general purpose. . . . . . .   $  3,683,000
CAREER DEVELOPMENT AND POSTSECONDARY 
   COORDINATION SERVICES
        Full-time equated classified positions . .   66.0
   Career and technical education operations--
        34.5 FTE positions . . . .    $  3,819,800   Post-secondary operations--31.5 FTE positions . . . . . .    2,800,400
   GROSS APPROPRIATION . . . . . .    $  6,620,200
   Appropriated from:
   Federal revenues:
        Federal revenues . . . . .       4,980,600
Special revenue funds:
   Private occupational school license fees. . . . . .         250,600
   Certification fees. . . . .         63,700
   State general fund/general purpose. . . . . . .   $  1,325,300
PROFESSIONAL PREPARATION SERVICES
        Full-time equated classified positions . . . 26.5
   Professional preparation operations-26.5 FTE 
        positions. . . . . . .   $  2,498,100   Department of attorney general . . . . . .       40,000
   GROSS APPROPRIATION . . . . . .    $  2,538,100
        Appropriated from:     
Federal revenues:   
   Federal revenues. . . . . .        214,100
Special revenue funds:   
   Certification fees. . . . .      2,071,500
   Teacher testing fees. . . . . .         252,500
   State general fund/general purpose. . . . . . .   $          0
FIELD SERVICES
   Full-time equated classified positions. . . .41.0
        Field services operations--41.0 FTE positions. . . . . .    $3,545,600
   GROSS APPROPRIATION . . . . . .    $  3,545,600
        Appropriated from:
Federal revenues:
   Federal revenues. . . . . .      3,136,400
   State general fund/general purpose. . . . . . .   $    409,200
INNOVATION AND COMMUNITY SERVICES
   Full-time equated classified positions. . . .12.3
   Innovation and community service operations--
        12.3 FTE positions . . . .    $1,023,100
   GROSS APPROPRIATION . . . . . .    $  1,023,100
        Appropriated from:
Federal revenues:
   Federal revenues. . . . . .        448,900
   State general fund/general purpose. . . . . . .   $    574,200
GRANTS AND DISTRIBUTIONS 
FEDERAL PROGRAMS:   
   Adult basic education . . . . .    $  8,024,100
   Acquired immunodeficiency syndrome education
        grants . . . . .         600,000
   Competitive child care and development. . . . .        480,000
   Drug free schools grant . . . .      16,600,000
   Eisenhower mathematics and science grants . . . . .      12,940,000
   Emergency immigrants. . . . . .         750,000
   Goals 2000 grants . . . . .     17,082,200
   Handicapped infants and toddlers. . . . .      16,000,000
   Homeless children and youth . . . . .        833,000
   Job training partnership act. . . . .      7,952,700
   Michigan charter school subgrant program. . . . . .       3,483,600
   Migrant even start. . . . .        282,300
   Preschool grants (PL 94-142). . . . .     12,400,000
   School age child care grants. . . . .        288,000
   School lunch program-federal share. . . . . . .    226,000,000
   School to work. . . . . . .      1,800,000
   Serve America grants. . . . . .         840,000
   Special education . . . . .     17,189,800
   State literacy resource center. . . . . .         263,600
   Statewide systemic initiative grant . . . . . .        200,000
   Surplus commodity . . . . .      2,506,000
   Technology literacy challenge grant . . . . . .     17,784,300
   Title I, disadvantaged children . . . . .     331,000,000
   Title I, even start . . . . . .       4,400,000
   Title I, migrant. . . . . .     12,000,000
   Title VI, innovative strategies . . . . .      13,480,900
   Training personnel for education of the 
        handicapped. . . . . .        253,600
   Vocational education act of 1963. . . . .      38,507,200
STATE PROGRAMS:  
   Christa McAuliffe grants. . . . . . .         94,800
   Driver education. . . . . .      7,600,000
   Michigan geographic alliance. . . . .        300,000
   Motorcycle safety education . . . . .        867,300
   National board certification. . . . .         20,000
   Off-road vehicle safety training grant. . . . .        194,300
   Reading plan for Michigan grants. . . . .       5,000,000
   School readiness grants . . . .      12,083,000
   School lunch and breakfast. . . . . .     6,728,000  GROSS APPROPRIATION . . . . . .    $796,828,700        Appropriated from:     
Federal revenues:   
   DAG-FCS, national school lunch. . . . . .     226,000,000   DAG-emergency food assistance program . . . . .      2,506,000
   DED-grants and contracts service, school to work. . . . .      1,800,000
   DED-OBEMLA, emergency immigrant education 
        assistance.. . . . . .        750,000
   DED-OESE, charter schools . . . . . .      3,483,600
   DED-OESE, drug free schools and communities . . . .      16,600,000
   DED-OESE, goals 2000. . . . . .      22,082,200
   DED-OESE, Eisenhower mathematics and science
        administration . . . . . .      12,940,000
   DED-OESE, migrant even start. . . . .        282,300
   DED-OESE, technology literacy challenge fund. . . . . . .     17,784,300
   DED-OESE, title I, disadvantaged children . . . . .     331,000,000
   DED-OESE, title I, even start . . . . . .       4,400,000
   DED-OESE, title I, migrant education. . . . . .     12,000,000
   DED-OESE, title VI, innovative strategies . . . . .      13,480,900
   DED-OSERS, handicapped infants and toddlers . . . .      16,000,000
   DED-OSERS, handicapped preschool incentive grants . . . . . .      12,400,000
   DED-OSERS, handicapped program (IDEA) . . . . .     17,189,800
   DED-OSERS, personnel development. . . . .         253,600
   DED-OVAE, adult education, state administered 
        program. . . . .       8,024,100
   DED-OVAE, basic grants to states. . . . .      38,507,200   DED-OVAE, homeless children and youth . . . . .        833,000
   DED-OVAE, state literacy resource center. . . . . .         263,600
   DOL-ETA, employment and training. . . . .       7,952,700
   HHS-ACF, at risk child care, child care
        development fund . . . . .         480,000   HHS-CDCP, AIDS education. . . . . . .        600,000
   HHS-ACF, dependent care block grant, child
        care development fund. . . . . .        288,000
   National science foundation . . . . .        200,000
   Corporation for national and community service. . . . . .        840,000
Special revenue funds:
   Private foundations . . . . . .          94,800
   Driver fees . . . . .       7,600,000
   Motorcycle license fees . . . .         867,300
   Safety education fund . . . . .         194,300
   State general fund/general purpose. . . . . . .     19,131,000
GENERAL SECTIONS
        Sec. 201.  (1) Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state sources for fiscal
year 1998-99 is estimated at $57,492,400.00 in this bill and state
spending from state sources paid to local units of government for fiscal
year 1998-99 is estimated at $27,492,600.00.  The itemized statement
below identifies appropriations from which spending to units of local
government will occur:
DEPARTMENT OF EDUCATION
GRANTS AND DISTRIBUTIONS 
STATE PROGRAMS:
   Driver education. . . . . .      7,600,000
   School readiness grants . . . .      12,083,000
   Motorcycle safety education . . . . .        867,300
   National board certification. . . . .         20,000
   Off-road vehicle safety training grant. . . . .        194,300
   School lunch and breakfast. . . . . .     6,728,000
  TOTAL. . . . . . .   $ 27,492,600
   (2) If it appears to the principal executive officer of a department
or branch that state spending to local units of government will be less
than the amount that was projected to be expended, under subsection (1),
the principal executive officer shall immediately give notice of the
approximate shortfall to the state budget director.  
        Sec. 202.  The expenditures and funding sources authorized under
this bill are subject to the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594.        
        Sec. 203.  As used in this bill:         
        (a)  "DAG" means the United States department of agriculture.              (b)  "DAG-FCS" means the DAG food and consumer service.  
        (c)  "DED" means the United States department of education.
        (d)  "DED-OBEMLA" means the DED office of bilingual education and
minority languages affairs.     
        (e)  "DED-OESE" means DED office of elementary and secondary
education. 
        (f)  "DED-OSERS" means the DED office of special education
rehabilitative services.         
        (g)  "DED-OVAE" means the DED office of vocational and adult
education.         
        (h)  "Department" means the Michigan department of education. 
        (i)  "District" means a local school district as defined in section
6 of the revised school code, 1976 PA 451, MCL 380.6.         
        (j)  "DOL" means the United States department of labor.                    (k)  "DOL-ETA" means the DOL employment and training administration.
        (l)  "HHS" means the United States department of health and human   
services.     
        (m)  "HHS-ACF" means the HHS administration for children and
families.
        (n)  "HHS-CDCP" means the HHS center for disease control and
prevention.    
        (o)  "HHS-OHDS" means the HHS office of human development services.  
      
        Sec. 204.  (1) Beginning October 1, 1998, there is a hiring freeze
imposed on the state classified civil service.  State departments and
agencies are prohibited from hiring any new full-time state classified
civil service employees or prohibited from filling any vacant state
classified civil service positions.  This hiring freeze does not apply
to internal transfers of classified employees from 1 position to another
within a department or to positions that are 80% or more federal or
restricted funds.
        (2) The state budget director shall grant exceptions to this hiring
freeze when the state budget director believes that the hiring freeze
will result in rendering a state department or agency being unable to
deliver basic services.  The state budget director shall report by the
fifteenth of each month to the chairpersons of the senate and house
appropriations committees the number of exclusions to the hiring freeze
approved during the previous month and the justification for the
exclusion.   
        Sec. 205.  (1) In addition to the funds appropriated in section 101,
there is appropriated an amount not to exceed $30,000,000.00 for federal
contingency funds.  These funds are not available for expenditure until
they have been transferred to another line item in this bill under
section 393(2) of the management and budget act, 1984 PA 431, MCL
18.1393.   
        (2) In addition to the funds appropriated in section 101, there is 
appropriated an amount not to exceed $700,000.00 for state restricted  
contingency funds.  These funds are not available for expenditure until
they have been transferred to another line item in this bill under
section 393(2) of the management and budget act, 1984 PA 431, MCL
18.1393.   
        (3) In addition to the funds appropriated in section 101, there is 
appropriated an amount not to exceed $250,000.00 for local contingency 
funds.  These funds are not available for expenditure until they have  
been transferred to another line item in this bill under section 393(2)
of the management and budget act, 1984 PA 431, MCL 18.1393. 
        (4) In addition to the funds appropriated in section 101, there is 
appropriated an amount not to exceed $250,000.00 for private contingency
funds.  These funds are not available for expenditure until they have
been transferred to another line item in this bill under section 393(2)
of the management and budget act, 1984 PA 431, MCL 18.1393.         
        Sec. 206.  The department of civil service shall bill departments
and/or agencies at the end of the first fiscal quarter for the 1%
charges authorized by section 5 of article XI of the state constitution
of 1963.  Payments shall be made for the total amount of the billing by
the end of the second fiscal quarter.
        Sec. 207.  The department may carry into the succeeding fiscal year
unexpended federal pass-through funds to local institutions and   
governments that do not require additional state matching funds. 
Federal pass-through funds to local institutions and governments that
are received in amounts in addition to those included in section 101 and
that do not require additional state matching funds are appropriated for
the purposes intended. 
        Sec. 208.  The department shall provide the state budget director
and the senate and house fiscal agencies with copies of the state board
of education agenda and all supporting documents at the time the agenda
and supporting documents are provided to state board of education
members. 
        Sec. 209.  (1) The department shall submit to the department of
management and budget, the house and senate appropriations committees,
the house and senate fiscal agencies, and the house and senate standing
committees having jurisdiction over technology issues, periodic reports
on the department's efforts to change the department's computer software
and hardware as necessary to perform properly in the year 2000 and
beyond.  These reports shall identify actual progress in comparison to
the department's approved work plan for these efforts. 
        (2) The department may present progress billings to the department 
of management and budget for the costs incurred in changing computer   
software and hardware as necessary to perform properly in the year 2000
and beyond.  At the time progress billings are presented for
reimbursement, the department shall identify and forward as appropriate
the funding sources that should support the work performed.         
        Sec. 210.  The department shall not lease real property for less   
than fair market value.         
STATE BOARD/OFFICE OF THE SUPERINTENDENT         
        Sec. 301.  (1) The appropriations in section 101 may be used for per
diem payments to members of boards, committees, and commissions for each
day's board, committee, or commission work at which a quorum is present;
for attending a hearing as authorized by the respective board,
committee, or commission; or for performing official business as
authorized by the respective board, committee, or commission.  The per
diem payments shall be at a rate as follows:
        (a) State board of education - president   . . . . $    110.00 per day  
        (b) State board of education - member other than
president. . . . . $      100.00 per day
        (c) State tenure commission-member . . . . . .$     50.00 per day
        (2) A state board of education member shall not be paid a per diem 
for more than 24 days per year.         
        (3) The administrative secretary of the state board of education   
shall report to the public, the senate and house fiscal agencies, and
the state budget director the previous month's expenses by fund source
for members of the state board of education related to the performance
of their responsibilities.         
        Sec. 302.  (1) From the amount appropriated in section 101 to the  
state board of education, not more than $27,500.00 shall be expended for
travel.
        (2) The state board of education shall not expend amounts for travel
appropriated from DED-OVAE, basic grants to states.
        Sec. 303.  (1) From the amount appropriated in section 101 for state
board/superintendent operations, there is allocated $500,000.00 and 5.0
FTE positions to establish and operate a charter school office to
administer charter school legislation and associated regulations, and to
coordinate the activities of the department relating to charter schools.
        (2) From the amount appropriated in section 101, there is allocated
up to $150,000.00 to continue performance studies of charter schools.
        (3) From the amount appropriated in section 101 for state   
board/superintendent operations, there is allocated up to $250,000.00 to
fund an exchange program between teachers in Michigan school districts
and public school academies and teachers in Michigan's sister state of
Shiga in Japan.         
TECHNOLOGY AND INFORMATION SERVICES         
        Sec. 401.  Included in the appropriation for technology and
information services in section 101 is $50,000.00 to publish and
distribute the Michigan school report.
STANDARDS, ASSESSMENT AND ACCREDITATION SERVICES         
        Sec. 501.  (1) From the general fund allocations in section 101, the
department may provide tests to nonpublic schools.  The department shall
notify nonpublic schools that they are eligible to receive the tests
without cost to them. 
        (2) The department shall release test results at the same time to  
all private schools and public school districts taking the tests and the
state budget director and house and senate fiscal agencies.
        (3) From the amount appropriated in section 101 for test development
and administration, $200,000.00 shall be expended to expedite the
reporting of high school proficiency test results and to improve the
method of reporting the results to enable pupils to accurately interpret
the information.
MICHIGAN SCHOOLS FOR THE DEAF AND BLIND         
        Sec. 601.  The employees at the Michigan schools for the deaf and  
blind who work on a school year basis shall be considered annual
employees for purposes of service credits, retirement, and insurance
benefits. 
        Sec. 602.  For each student enrolled at the Michigan schools for the
deaf and blind, the department shall assess the intermediate school
district of residence 100% of the cost of operating the student's
instructional program.  The amount shall exclude room and board related
costs and the cost of weekend transportation between the school and the
student's home. 
        Sec. 603.  (1) The department may assess rent to the department of 
corrections for Michigan school for the blind's former site space
occupied by the corrections staff training academy.  The rental rates
and all leasing arrangements shall be subject to the approval of the
department of management and budget.  Amounts received under section 101
for the corrections academy lease program may be expended by the
department for operation, maintenance, and renovation expenses
associated with the lease space.
        (2) In addition, the department may receive and expend funds in   
addition to those authorized in section 101 for the rental of facilities
at the Michigan school for the blind's former site to private or
publicly funded organizations.
        (3) Security guards or other patrols at the Michigan school for the
blind's former site shall not be funded through section 101 funds
appropriated for the Michigan schools for the deaf and blind. 
        Sec. 604.  The department shall assess rent to the state employee  
child care center for the rental of space it occupies at the Michigan  
school for the blind's former site.  The rental rates and all leasing  
arrangements shall be subject to the approval of the department of
management and budget.  Amounts received under section 101 for the child
care center may be expended by the department for the operation,
maintenance, and renovation of the leased space.         
        Sec. 605.  Proceeds from the sale of surplus property and facilities
at the Michigan schools for the deaf and blind are hereby appropriated
for the purposes of repairs, renovations, and maintenance of the
school's campus.  Any unexpended and unencumbered funds remaining on
September 30, 1999 from such proceeds shall be carried forward as a work
project for the purposes of repairs, renovations, and maintenance of the
school's campus.  The work shall be carried out by state employees, or
by contract as necessary, at an estimated cost of $132,000.00.  The
estimated completion date of the work is September 30, 2000.         
        Sec. 606.  The department may assist the department of community   
health, other departments, and local school districts to secure reim-  
bursement for eligible services provided in Michigan schools from the  
federal medicaid program.  The department may submit reports of direct 
expenses related to this effort to the department of community health
for reimbursement.  
        Sec. 607.  The unexpended balances of appropriations for the schools
for the deaf and blind operations shall not lapse to the state general
fund at the end of the fiscal year.  Any unexpended and unencumbered
funds remaining on September 30, 1999, shall be carried forward as a
work project and expended for special maintenance and repairs of
facilities at the Michigan schools for the deaf and blind.  The work
shall be carried out by state employees, or by contract as necessary, at
an estimated cost of $100,000.00.  The estimated completion date of the
work is September 30, 2000. 
        Sec. 608.  The unexpended balances of appropriations and any surplus
restricted revenue for the former school for the blind site in Lansing
shall not lapse to the state general fund at the end of the fiscal year. 
Any unexpended and unencumbered funds remaining on September 30, 1999,
shall be carried forward as a work project or as a restricted revenue
carryforward and expended for special maintenance and repairs of
facilities at the former Michigan school for the blind site in Lansing.  
      
        Sec. 609.  The Michigan schools for the deaf and blind may promote
their residential program as a possible appropriate option for children
who are deaf or hard of hearing or who are blind or visually   impaired. 
The Michigan schools for the deaf and blind shall distribute information
detailing its services to all intermediate school districts in the
state.     
PROFESSIONAL PREPARATION SERVICES         
        Sec. 701.  From the funds appropriated in section 101 for
professional preparation operations, the department shall maintain the
professional personnel register and certificate revocation/felony
conviction files. 
GRANTS AND DISTRIBUTIONS         
        Sec. 801.  In the absence of an existing payment schedule, the
department shall disburse the funds to a general fund grantee in
accordance with the same standards of timing and amount that apply to
disbursements made by the department to a federal fund grantee.  The
disbursement shall be restricted to the minimum amount needed for
immediate disbursement by the grantee.  The department may waive this
section if extenuating circumstances warrant and are substantiated in
the grantee's application or other appropriate documentation.  A waiver
granted pursuant to this section shall not be effective until 15 days
after written notice of the proposed waiver is given to the state budget
director and the chairpersons of the senate and house appropriations
subcommittees having jurisdiction over the department budget.
        Sec. 802.  (1) The funds appropriated in section 101 for school
breakfast programs shall be made available to all eligible applicant
public school districts and public school academies as follows:               (a) The district or public school academy participates in the
federal school breakfast program and meets all standards as prescribed
by 7 C.F.R. parts 220 and 245.         
        (b) Payment is made for each breakfast served meeting standards   
prescribed in subdivision (a).     
        (c) The payment for a district or public school academy is at a per
meal rate equal to the lesser of the district's or public school   
academy's actual cost, or 100% of the cost of a breakfast served by an 
efficiently operated breakfast program as determined by the department,
less federal reimbursement, participant payments, and other state
reimbursement.  Determination of efficient cost by the department shall
be determined by using a statistical sampling of statewide and regional
cost as reported in a manner approved by the department for the
preceding school year. 
        (d) The payment determined under subdivision (c) is prorated if the
appropriation in section 101 is not sufficient to fund all payments
determined under this section. 
        (2) Of the appropriation of federal funds in section 101 for the   
national school lunch program, expenditures shall not be made in fiscal
year 1998-1999 for any programs other than those authorized by the
department and funded from this line item in fiscal year 1997-1998.
        Sec. 803. (1) The funds appropriated in section 101 for school   
readiness programs shall be made available through a competitive
application process as follows: 
        (a) An applicant may be any public or private nonprofit legal entity
or agency other than a local or intermediate school district except a
local or intermediate school district acting as a fiscal agent for a
child caring organization regulated under 1973 PA 116, MCL 722.111 to
722.128. 
        (b) Applications shall be submitted in a form and manner as required
by the department. 
        (c) Applications shall be reviewed by a diverse interagency   
committee composed of representatives of the department, appropriate   
community, volunteer, and social service agencies and organizations, and
parents. 
        (d) Priority in the recommendation for awarding of grants by the   
state board of education to applicants shall be based upon the following
criteria:
        (i) Compliance with standards for early childhood
development con-  sistent with programs for 4-year-olds, as approved by
the state board of education.
        (ii) Active and continuous involvement of the parents or
guardians  of the children participating in the program. 
        (iii) Employment of teachers possessing proper training in
early    childhood development, including an early childhood (ZA)
endorsement or child development associate, and trained support staff.   
     . . . . .    (iv)
Evidence of collaboration with the community of providers in   early
childhood development programs including documentation of the total
number of children in the community who would meet the criteria
established in subparagraph (vi), and who are being served by
other providers, and the number of children who will remain unserved by
other community early childhood programs if this program is funded.           (v) The extent to which these funds will supplement other
federal,  state, local, or private funds.
        (vi) The extent to which these funds will be targeted to
children   who will be at least 4, but less than 5, years of age as of
December 1 of the year in which the programs are offered and who show
evidence of 2 or more "at-risk" factors as defined in the state board of
education report entitled, "children at risk" that was adopted by the
state board on April 5, 1988.
        (e) Whether the application contains a comprehensive evaluation plan
that includes implementation of all program components required and an
assessment of the gains of children participating in an early childhood
development program.
        (f) Applications shall provide for the establishment of a school   
readiness advisory committee that shall be involved in the planning and
evaluation of the program and provides for the involvement of parents
and appropriate community, volunteer, and social service agencies and
organizations.  There shall be on the committee at least 1 parent or
guardian of a program participant for every 18 children enrolled in the
program, with a minimum of 2 parent or guardian representatives.  The
committee shall do all of the following:         . . . . . .   (i)
Review the mechanisms and criteria used to determine referrals  for
participation in the school readiness program.  
        (ii) Review the health screening program for all
participants.      . . . . . .   (iii)
Review the nutritional services provided to all participants. 
        (iv) Review the mechanisms in place for the referral of
families to community social service agencies, as appropriate.         
        (v) Review the collaboration with and the involvement of
appropriate community, volunteer, and social service agencies and
organizations in addressing all aspects of education disadvantage.
        (vi) Review, evaluate, and make recommendations for changes
in the  school readiness program.
        (g) More than 50% of the children participating in the program shall
meet the income eligibility criteria for free or reduced price lunch, as
determined under the national school lunch act, chapter 281, 60 Stat.
230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766b, and
1769 to 1769h, or meet income and all other eligibility criteria for
participation in the Michigan family independence agency unified child
day care program. 
        (2) Grant awards by the state board of education may be at whatever
level the board determines appropriate.  A grant, when combined with
other sources of state revenue for this program, shall not exceed
$3,100.00 per child or the cost of the program, whichever is less. 
        (3) Except as otherwise provided, an applicant that received a grant
under this section in the 1997-1998 fiscal year shall receive priority
for funding in 1998-1999.  However, continuation of funding is
contingent on the availability of funds and documented evidence of
grantee compliance with standards for early childhood development
consistent with programs for 4-year-olds, as approved by the state board
of education, and with all operational, fiscal, administrative, and
other program requirements.  After 3 years of funding, a program that
received a grant under this section may reapply for funding, but will
compete for available funds with other new programs and other programs
also completing their third year of funding under this section.  A
program which offers supplementary day care and thereby offers full-day
programs as part of its early childhood development program shall
receive priority in the allocation of these competitive funds.
        Sec. 804. (1)  The reading plan for Michigan (RPM) is a series of
elementary education strategies created for the purpose of improving
reading skills of K-3 students so that all students are reading at an
appropriate grade level prior to the start of the fourth grade.
        (2) In order to implement the reading plan for Michigan, the
department shall do at least all of the following:
        (a) Develop a model summer reading program for students who will be
attending grades 1 through 4 in the following school year and who have
demonstrated the need for additional reading skills training, as
evidenced by standardized test results on tests approved by the
department for this purpose.  The model reading program shall be in
conformance with the national education goals and shall also meet
criteria for DED-OESE, Title I program funding.
        (b) Recommend diagnostic tools and student assessments to local
districts to determine reading readiness and ensure progress in reading
skills. 
        (c) Develop and disseminate reading readiness kits to parents of
students in preschool and kindergarten to provide parents with
information about how they can prepare their children for reading
success.
        (d) Develop and make available a statewide resource guide of public
and private service providers to assist parents in improving their
children's reading skills.
        (3) The funds appropriated in section 101 for the reading plan for
Michigan grants shall be allocated by the department on a competitive
grant basis to districts or consortia of districts which meet the
following criteria:
        (a)  The district must offer a summer reading program based upon the
model reading program developed by the department pursuant to subsection
(1) beginning after the close of the 1998-99 school year.
        (b) The district must identify monies from other sources available
to the district which will be used to support at least 50% of the total
costs of the summer reading program.
        (c) Other criteria determined by the department.
        (4) Applications for funding must be submitted to the department no
later than December 31, 1998.  The department shall notify recipients of
the grants no later than March 30, 1999.
        (5) Beginning in the 2001-2002 school year, no student shall be
advanced from the third grade to the fourth grade without having
achieved a score on a standardized test approved by the department which
indicates that student is reading at the third grade level, unless
otherwise indicated by a student individualized education plan.


























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