HOUSE BILL No. 5374 February 16, 2000, Introduced by Rep. Geiger 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 1999 PA 119. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 11. (1)For the fiscal year ending September 30,21999, there is appropriated for the public schools of this state3and certain other state purposes relating to education the sum of4$9,049,591,100.00 from the state school aid fund established by5section 11 of article IX of the state constitution of 1963 and6the sum of $420,613,500.00 from the general fund.For the fiscal 7 year ending September 30, 2000, there is appropriated for the 8 public schools of this state and certain other state purposes 9 relating to education the sum of$9,590,537,700.0010 $____________________ from the state school aid fund established 05738'00 TAV 2 1 by section 11 of article IX of the state constitution of 1963 and 2 the sum of$420,613,500.00$____________________ from the gen- 3 eral fund. For the fiscal year ending September 30, 2001, there 4 is appropriated for the public schools of this state and certain 5 other state purposes relating to education the sum of 6$10,033,634,700.00$____________________ from the state school 7 aid fund established by section 11 of article IX of the state 8 constitution of 1963 and the sum of$420,613,500.009 $____________________ from the general fund. In addition, avail- 10 able federal funds are appropriated for 1998-99, for 1999-2000, 11 and for 2000-2001. 12 (2) The appropriations under this section shall be allocated 13 as provided in this act. Money appropriated under this section 14 from the general fund and from available federal funds shall be 15 expended to fund the purposes of this act before the expenditure 16 of money appropriated under this section from the state school 17 aid fund. If the maximum amount appropriated under this section 18 from the state school aid fund for a fiscal year exceeds the 19 amount necessary to fully fund allocations under this act from 20 the state school aid fund, that excess amount shall not be 21 expended in that state fiscal year and shall not lapse to the 22 general fund, but instead shall remain in the state school aid 23 fund. 24 (3) If the maximum amount appropriated under this section 25 and sections 11f and 11g from the state school aid fund for a 26 fiscal year exceeds the amount available for expenditure from the 27 state school aid fund for that fiscal year, payments under 05738'00 3 1 sections 11f, 11g, and 51a(2) shall be made in full and payments 2 under each of the other sections of this act shall be prorated on 3 an equal percentage basis as necessary to reflect the amount 4 available for expenditure from the state school aid fund for that 5 fiscal year. However, if the department of treasury determines 6 that proration will be required under this subsection, the 7 department of treasury shall notify the state budget director, 8 and the state budget director shall notify the legislature at 9 least 30 calendar days or 6 legislative session days, whichever 10 is more, before the department reduces any payments under this 11 act because of the proration. During the 30 calendar day or 6 12 legislative session day period after that notification by the 13 state budget director, the department shall not reduce any pay- 14 ments under this act because of proration under this subsection. 15 The legislature may prevent proration from occurring by, within 16 the 30 calendar day or 6 legislative session day period after 17 that notification by the state budget director, enacting legisla- 18 tion appropriating additional funds from the general fund, 19 countercyclical budget and economic stabilization fund, state 20 school aid fund balance, or another source to fund the amount of 21 the projected shortfall. 05738'00 Final page. TAV