SENATE BILL NO. 283 February 9, 1999, 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 1998 PA 553. 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$9,000,761,900.0010 $__________.00 from the state school aid fund established by 01231'99 TAV 2 1 section 11 of article IX of the state constitution of 1963 and 2 the sum of$420,613,500.00$__________.00 from the general 3 fund. For the fiscal year ending September 30, 2000, there is 4 appropriated for the public schools of this state and certain 5 other state purposes relating to education the sum of 6$9,366,408,600.00$__________.00 from the state school aid fund 7 established by section 11 of article IX of the state constitution 8 of 1963 and the sum of$420,613,500.00$__________.00 from the 9 general fund. In addition, available federal funds are appropri- 10 ated for1997-98, for1998-99,and for 1999-2000. 11 (2) The appropriations under this section shall be allocated 12 as provided in this act. Money appropriated under this section 13 from the general fund and from available federal funds shall be 14 expended to fund the purposes of this act before the expenditure 15 of money appropriated under this section from the state school 16 aid fund. If the maximum amount appropriated under this section 17 from the state school aid fund for a fiscal year exceeds the 18 amount necessary to fully fund allocations under this act from 19 the state school aid fund, that excess amount shall not be 20 expended in that state fiscal year and shall not lapse to the 21 general fund, but instead shall remain in the state school aid 22 fund. 23 (3) If the maximum amount appropriated under this section 24 and sections 11f and 11g from the state school aid fund for a 25 fiscal year exceeds the amount available for expenditure from the 26 state school aid fund for that fiscal year, payments under 27 sections 11f, 11g, and 51a(2) shall be made in full and payments 01231'99 3 1 under each of the other sections of this act shall be prorated on 2 an equal percentage basis as necessary to reflect the amount 3 available for expenditure from the state school aid fund for that 4 fiscal year. However, if the department of treasury determines 5 that proration will be required under this subsection, the 6 department of treasury shall notify the director of the depart- 7 ment of management and budget, and the director of the department 8 of management and budget shall notify the legislature at least 30 9 calendar days or 6 legislative session days, whichever is more, 10 before the department reduces any payments under this act because 11 of the proration. During the 30 calendar day or 6 legislative 12 session day period after that notification by the director of the 13 department of management and budget, the department shall not 14 reduce any payments under this act because of proration under 15 this subsection. The legislature may prevent proration from 16 occurring by, within the 30 calendar day or 6 legislative session 17 day period after that notification by the department of manage- 18 ment and budget, enacting legislation appropriating additional 19 funds from the general fund, countercyclical budget and economic 20 stabilization fund, state school aid fund balance, or another 21 source to fund the amount of the projected shortfall. 01231'99 Final page. TAV