SENATE BILL NO. 939 February 25, 1998, Introduced by Senator GAST and referred to the Committee on Appropriations. A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending section 11 (MCL 388.1611), as amended by 1997 PA 142. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 11. (1)For the fiscal year ending September 30,21998, there is appropriated for the public schools of this state3and certain other state purposes relating to education the sum of4$8,717,471,600.00 from the state school aid fund established by5section 11 of article IX of the state constitution of 1963 and6the 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 9 relating to education the sum of$9,036,198,400.0010 $_______________ from the state school aid fund established by 05466'98 TAV 2 1 section 11 of article IX of the state constitution of 1963 and 2 the sum of$420,613,500.00$_______________ from the general 3 fund. In addition, available federal funds are appropriated for 41997-98 and for1998-99. 5 (2) The appropriations under this section shall be allocated 6 as provided in this act. Money appropriated under this section 7 from the general fund and from available federal funds shall be 8 expended to fund the purposes of this act before the expenditure 9 of money appropriated under this section from the state school 10 aid fund. If the maximum amount appropriated under this section 11 from the state school aid fund for a fiscal year exceeds the 12 amount necessary to fully fund allocations under this act from 13 the state school aid fund, that excess amount shall not be 14 expended in that state fiscal year and shall not lapse to the 15 general fund, but instead shall remain in the state school aid 16 fund. 17 (3) If the maximum amount appropriated under this section 18 and sections 11f and 11g from the state school aid fund for a 19 fiscal year exceeds the amount available for expenditure from the 20 state school aid fund for that fiscal year, payments under sec- 21 tions 11f, 11g, and 51a(2) shall be made in full and payments 22 under each of the other sections of this act shall be prorated on 23 an equal percentage basis as necessary to reflect the amount 24 available for expenditure from the state school aid fund for that 25 fiscal year. However, if the department of treasury determines 26 that proration will be required under this subsection, the 27 department of treasury shall notify the director of the 05466'98 3 1 department of management and budget, and the director of the 2 department of management and budget shall notify the legislature 3 at least 30 calendar days or 6 legislative session days, which- 4 ever is more, before the department reduces any payments under 5 this act because of the proration. During the 30 calendar day or 6 6 legislative session day period after that notification by the 7 director of the department of management and budget, the depart- 8 ment shall not reduce any payments under this act because of pro- 9 ration under this subsection. The legislature may prevent prora- 10 tion from occurring by, within the 30 calendar day or 6 legisla- 11 tive session day period after that notification by the department 12 of management and budget, enacting legislation appropriating 13 additional funds from the general fund, countercyclical budget 14 and economic stabilization fund, state school aid fund balance, 15 or another source to fund the amount of the projected shortfall. 05466'98 Final page. TAV