SENATE BILL NO. 363


EXECUTIVE BUDGET BILL


February 23, 1999, Introduced by Senators BENNETT, STEIL, GOUGEON, 
     GOSCHKA 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, 2000 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:
  PART 1
  LINE-ITEM APPROPRIATIONS
        Sec. 101. Subject to the conditions set forth in this bill, the
  amounts listed in this part are appropriated for the department of
  education for the fiscal year ending September 30, 2000, from the funds
  indicated in this part. The following is a summary of the
  appropriations in this part:
  DEPARTMENT OF EDUCATION
   APPROPRIATION SUMMARY:
        Full-time equated unclassified positions . . . . . . .6.0
        Full-time equated classified positions . . . . 542.6
   GROSS APPROPRIATION . . . . . . . .     $   983,215,900
   Total interdepartmental grants and 
        intradepartmental transfers. . . . . . .           1,056,700
   ADJUSTED GROSS APPROPRIATION. . . . . .      $   982,159,200
  Federal revenues:
   Total federal revenues. . . . . . .         910,165,900
  Special revenue funds:
   Total local revenues. . . . . . . .           6,244,300
   Total private revenues. . . . . . .             587,300
   Total state restricted revenues . . . . . . .          27,294,700
   State general fund/general purpose. . . . . . . .      $    37,867,000
        Sec. 102. STATE BOARD OF EDUCATION/OFFICE OF THE
  SUPERINTENDENT
        Full-time equated unclassified positions . . . . . . .6.0
        Full-time equated classified positions . . . . .16.0
   State board of education, per diem payments . . . . . .     $        19,400     Unclassified positions. . . . . . .             505,500     State board/superintendent operations--16.0 
   FTE positions . . . . . .         2,369,500
   GROSS APPROPRIATION . . . . . . . .     $     2,894,400
        Appropriated from:
  Federal revenues:
   Federal revenues. . . . . . .              567,000
  Special revenue funds:
   Private revenues. . . . . . .                8,000
   State general fund/general purpose. . . . . . . .      $     2,319,400
      . . . . . .Sec. 103. CENTRAL
  SUPPORT
        Full-time equated classified positions . . . . . .     56.2
   Central support--47.2 FTE positions . . . . . . .      $     5,369,500     Worker's compensation. . . . . . .               76,500
   Education commission of the states. . . . . . . .               92,700
   Building occupancy charges - property management 
        services . . . . . .           1,285,200
   Training and orientation workshops. . . . . . . .              100,000
   Terminal leave payments . . . . . .             500,000
   State tenure commission, per diem . . . . . .              11,100
   Administrative law operations--9.0 FTE positions. . . . . .            817,000
   GROSS APPROPRIATION . . . . . . . .     $     8,252,000
        Appropriated from:
  Interdepartmental grant revenues:
   Interdepartmental grant from consumer and 
        industry services. . . . . . .               2,300
   Interdepartmental grant from career development . . . . . .                1,200
   Interdepartmental grant from treasury . . . . . .                  900
  Federal revenues:
   Federal revenues. . . . . . .            4,082,200
  Special revenue funds:
   Local cost sharing. . . . . .               60,800
   Certification fees. . . . . .              139,700
   Commodity distribution fees . . . . . .                4,500
   Driver fees . . . . . . .              17,800
   Motorcycle license fees . . . . . .               3,500
   Private occupational school license fees. . . . . . . .              12,800
   Safety education fund . . . . . . .               2,100
   School loan exception fees. . . . . . .               32,900
   Teacher testing fees. . . . . . . .               8,000
   Training and orientation workshop fees. . . . . .              100,000
   State general fund/general purpose. . . . . . . .      $     3,783,300
    . . . . Sec. 104. SCHOOL
  SUPPORT SERVICES
        Full-time equated classified positions . . . . .41.4
   School support operations--41.4 FTE positions . . . . . . .      $   4,847,400     GROSS APPROPRIATION . . . . . . . .          $     4,847,400          Appropriated from:
  Federal revenues:
   Federal revenues. . . . . . .            3,879,500
  Special revenue funds:
   Commodity distribution fees . . . . . .               41,300
   Driver fees . . . . . . .             470,400
   Motorcycle license fees . . . . . .             136,700
   Safety education fund . . . . . . .             115,300
   State general fund/general purpose. . . . . . . .      $       204,200
      . . . . . .Sec. 105. DATA AND
  TECHNOLOGY SERVICES
        Full-time equated classified positions . . . . .37.2
   Data and technology operations--37.2 positions. . . . . . .      $   6,421,700
   GROSS APPROPRIATION . . . . . . . .     $     6,421,700
        Appropriated from:
  Interdepartmental grant revenues:
   Interdepartmental grant from consumer and 
        industry services. . . . . . .             402,300
   Interdepartmental grant from career development . . . . . .              100,000
   Interdepartmental grant from treasury . . . . . .              100,000
  Federal revenues:
        Federal revenues . . . . . . .           3,198,000
  Special revenue funds:
   Certification fees. . . . . .              250,900
   Driver fees . . . . . . .              10,600
   State general fund/general purpose. . . . . . . .      $     2,359,900
    . . . . Sec. 106. STANDARDS,
  ASSESSMENT, AND ACCREDITATION SERVICES
        Full-time equated classified positions . . . . .44.7
   Standards, assessment, and accreditation 
        operations--44.7 FTE positions . . . . . . .      $     3,548,300
   Test development and administration . . . . . . .         13,002,100     GROSS APPROPRIATION . . . . . . . .     $    16,550,400
        Appropriated from:
  Federal revenues:
   Federal revenues. . . . . . .              780,800
  Special revenue funds:
   Michigan merit award trust fund . . . . . . .          13,002,100
   State general fund/general purpose. . . . . . . .      $     2,767,500
    . . . . Sec. 107. SPECIAL
  EDUCATION SERVICES
        Full-time equated classified positions . . . . .55.6
   Special education operations--55.6 FTE positions. . . . . .      $   6,313,800
   GROSS APPROPRIATION . . . . . . . .     $     6,313,800
        Appropriated from:
  Federal revenues:
   Federal revenues. . . . . . .            6,150,100
  Special revenue funds:
   Certification fees. . . . . .               19,500
   State general fund/general purpose. . . . . . . .      $       144,200
    . . . . Sec. 108. LANSING,
  MICHIGAN SCHOOL FOR THE BLIND FORMER SITE
   General services. . . . . . .      $   1,227,000
   GROSS APPROPRIATION . . . . . . . .     $     1,227,000
        Appropriated from:
  Interdepartmental grant revenues:
   Interdepartmental grant from corrections 
        academy lease. . . . . .              450,000
  Special revenue funds:
   Private gifts, bequests, and donations. . . . . .               10,000     Lansing, Michigan school for the blind rent. . . . . .              767,000
   State general fund/general purpose. . . . . . . .      $             0
      . . . . . .Sec. 109. MICHIGAN
  SCHOOLS FOR THE DEAF AND BLIND
        Full-time equated classified positions . . . . 120.3
   Michigan schools for the deaf and blind 
        operations--117.0 FTE positions. . . . . . .      $    10,876,700
   Technical resource and reproduction center. . . . . . .           1,100,000
   Summer institute. . . . . . .              312,100
   Michigan deaf/blind center--2.3 FTE positions . . . . . . .              306,400
   Camp Tuhsmeheta - 1.0 FTE position. . . . . . . .              250,100
   Private gifts - blind . . . . . . .              90,000
   Private gifts - deaf. . . . . . . .            50,000
   GROSS APPROPRIATION . . . . . . . .     $    12,985,300
        Appropriated from:
  Federal revenues:
   Federal revenues. . . . . . .            2,420,800
  Special revenue funds:
   Local cost sharing (schools for blind/deaf) . . . . . .           6,080,900
   Local school district service fees. . . . . . . .              102,600
   Private gifts, bequests, and donations. . . . . .              460,100
   Student insurance revenue . . . . . . .              205,100
   State general fund/general purpose. . . . . . . .      $     3,715,800
      . . . . . .Sec. 110. CAREER,
  CURRICULUM, AND POSTSECONDARY SERVICES
        Full-time equated classified positions . . . . .73.9
   Career and curriculum operations--51.9 FTE 
        positions. . . . . . . .      $     5,948,000
   Postsecondary operations--22.0 FTE positions. . . . . . . .          2,204,400
   GROSS APPROPRIATION . . . . . . . .     $     8,152,400
        Appropriated from:
  Federal revenues:
   Federal revenues. . . . . . .            5,620,100
  Special revenue funds:
   Private revenues. . . . . . .               14,400
   Defaulted loan collection fees. . . . . . . .             100,000
   Private occupational school license fees. . . . . . . .             255,500
   State general fund/general purpose. . . . . . . .      $     2,162,400
    . . . . Sec. 111.
  PROFESSIONAL PREPARATION SERVICES
        Full-time equated classified positions . . . . .26.5
   Professional preparation operations--
        26.5 FTE positions . . . . . .     $     3,104,100
   Teacher quality enhancement . . . . . .            2,500,000
   Department of attorney general. . . . . . . .            50,000
   GROSS APPROPRIATION . . . . . . . .     $     5,654,100
        Appropriated from:
  Federal revenues:
   Federal revenues. . . . . . .            2,716,700
  Special revenue funds:
   Certification fees. . . . . .            2,681,900
   Teacher testing fees. . . . . . . .             255,500
   State general fund/general purpose. . . . . . . .      $             0
      . . . . . .Sec. 112. FIELD
  SERVICES
        Full-time equated classified positions . . . . .41.0
   Field services operations--41.0 FTE positions . . . . . . .      $   3,922,900     GROSS APPROPRIATION . . . . . . . .          $     3,922,900
        Appropriated from:
  Federal revenues:
   Federal revenues. . . . . . .            3,511,500
  Special revenue funds:
   State general fund/general purpose. . . . . . . .      $       411,400
    . . . . Sec. 113. INNOVATION
  AND COMMUNITY SERVICES
        Full-time equated classified positions . . . . .29.8
   Innovation and community services 
        operations--29.8 FTE positions . . . . . . .      $   3,310,000
   GROSS APPROPRIATION . . . . . . . .     $     3,310,000
        Appropriated from:
  Federal revenues:
   Federal revenues. . . . . . .            2,442,100
  Special revenue funds:
   State general fund/general purpose. . . . . . . .      $       867,900
    . . . . Sec. 114. GRANTS AND
  DISTRIBUTIONS
        FEDERAL PROGRAMS:
   Adult basic education . . . . . . .     $    10,024,100
   Acquired immunodeficiency syndrome 
        education grants . . . . . . .             600,000
   Class size reduction grants . . . . . .           50,275,700
   Competitive child care and development. . . . . .              500,000
   Drug-free schools grant . . . . . .          16,758,400
   Eisenhower mathematics and science grants . . . . . . .          12,940,000
   Emergency immigrant . . . . . . . .           1,455,000
   Gear-up grants. . . . . . . .            2,000,000
   Goals 2000 grants . . . . . .           17,082,200
   Handicapped infants and toddlers. . . . . . .          16,000,000
   Homeless children and youth . . . . . .            1,041,000
   Job training partnership act. . . . . .            7,952,700
   Michigan charter school subgrant program. . . . . . . .           5,000,000
   Migrant technology. . . . . .              576,300
   Preschool grants (PL 94-142). . . . . .           12,400,000
   School-age child care grants. . . . . .              301,500
   School lunch program - federal share. . . . . . .          237,300,000
   School-to-work. . . . . . . .            1,800,000
   Serve America grants. . . . . . . .             840,000
   Special education . . . . . .           20,089,800
   Statewide systemic initiative grant . . . . . . .               50,000
   Surplus commodity . . . . . .            2,506,000
   Technology literacy challenge grant . . . . . . .           17,784,300
   Title I, disadvantaged children . . . . . . .         346,000,000
   Title I, even start . . . . . . . .           5,300,000
   Title I, migrant. . . . . . .           12,000,000
   Title I, comprehensive school reform. . . . . . .            5,889,200
   Title VI, innovative strategies . . . . . . .          13,480,900
   Vocational education act of 1963. . . . . . .          39,500,000     STATE PROGRAMS:
   Christa McAuliffe grants. . . . . . . .               94,800
   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
   Reading plan for Michigan grants. . . . . . .          17,350,000
   School lunch and breakfast. . . . . . .            6,728,000
   Fast track program. . . . . .            300,000
   GROSS APPROPRIATION . . . . . . . .     $   902,684,500
        Appropriated from:
  Interdepartmental grant revenues:
  Federal revenues:
   DAG-FCS, national school lunch. . . . . . . .         237,300,000
   DAG, the emergency food assistance program. . . . . . .           2,506,000
   DED, grants and contracts service, school-to-work . . . . . . . .           1,800,000
   DED-OBEMLA, emergency immigrant education 
        assistance . . . . . . .            1,455,000
   DED-OESE, charter schools . . . . . . .            5,000,000
   DED-OESE, class size reduction. . . . . . . .          50,275,700
   DED-OESE, drug-free schools and communities . . . . . .          16,758,400
   DED-OESE, gear-up . . . . . .            2,000,000
   DED-OESE, goals 2000. . . . . . . .          22,082,200
   DED-OESE, Eisenhower mathematics and 
        science administration . . . . . .           12,940,000
   DED-OESE, migrant technology. . . . . .              576,300
   DED-OESE, reading excellence act. . . . . . .          12,350,000
   DED-OESE, technology literacy challenge fund. . . . . . . .           17,784,300
   DED-OESE, title I, disadvantaged children . . . . . . .         346,000,000
   DED-OESE, title I, even start . . . . . . . .           5,300,000
   DED-OESE, title I, migrant education. . . . . . .           12,000,000
   DED-OESE, title I, comprehensive school reform. . . . . . .            5,031,900     DED-OESE, title VI, innovative strategies. . . . . . . . . .          13,480,900
   DED-OESE, title X, comprehensive school reform. . . . . . .              857,300
   DED-OSERS, handicapped infants and toddlers . . . . . .          16,000,000
   DED-OSERS, handicapped preschool incentive grants . . . . . . . .          12,400,000
   DED-OSERS, handicapped program, individuals 
        with disabilities act. . . . . . .           20,089,800
   DED-OVAE, adult education, state 
        administered program . . . . . . .           10,024,100     DED-OVAE, basic grants to states . . . . . .           39,500,000
   DED-OVAE, homeless children and youth . . . . . .            1,041,000
   DOL, job training partnership act . . . . . .           7,952,700
   HHS-ACF, at-risk child care . . . . . .              500,000
   HHS-CDC, AIDS education . . . . . .             600,000
   HHS-ACF, dependent care block grant . . . . . . .              301,500
   National science foundation . . . . . .               50,000
   Corporation for national and community service. . . . . . .              840,000
  Special revenue funds:
   Private revenues. . . . . . .               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
  PART 2
  PROVISIONS CONCERNING APPROPRIATIONS
  GENERAL SECTIONS
        Sec. 201. (1) Pursuant to section 30 of article IX of the state
  constitution of 1963, total state spending under part 1 for fiscal year
  1999-2000 is $65,161,700.00 and state appropriations to be paid to
  local units of government are as follows:
  GRANTS AND DISTRIBUTIONS
  STATE PROGRAMS:
   Driver education. . . . . . .      $     7,600,000
   School readiness grants . . . . . .          12,083,000
   Motorcycle safety education . . . . . .              867,300
   Off-road vehicle safety training grant. . . . . .              194,300
   School lunch and breakfast. . . . . . .          6,728,000
   TOTAL . . . . . . .      $    27,472,600
        (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. (1) Beginning October 1, 1999, a hiring freeze is imposed
  on the state classified civil service.  State departments and agencies
  are prohibited from hiring any new full-time state classified civil
  service employees and prohibited from filling any vacant state
  classified civil service positions.  This hiring freeze does not apply
  to internal transfers of classified employees from one position to
  another within a department or to positions that are funded with 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 unable to deliver
  basic services. 
        Sec. 204. The department of civil service shall bill departments
  and agencies at the end of the first fiscal quarter for the 1% charge
  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. 205. 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-OERI" means the DED office of educational research and
  improvement.
          (f) "DED-OESE" means the DED office of elementary and secondary education.
        (g) "DED-OPSE" means the DED office of postsecondary education.
        (h) "DED-OSERS" means the DED office of special education and
  rehabilitative services.
        (i) "DED-OVAE" means the DED office of vocational and adult
  education.
        (j) "Department" means the Michigan department of education.
        (k) "District" means a local school district as defined in section
  6 of the revised school code, 1976 PA 451, MCL 380.6.
        (l) "DOL" means the United States department of labor.
        (m) "DOL-ETA" means the DOL employment and training act.
        (n) "HHS" means the United States department of health and human
  services.
        (o) "HHS-ACF" means the HHS administration for children and
  families.
        (p) "HHS-CDCP" means the HHS center for disease control and
  prevention.
        (q) "HHS-OHDS" means the HHS office of human development services.
        (r) "RPM" means reading plan for Michigan.
        Sec. 206. (1) In addition to the funds appropriated in part 1,
  there is appropriated an amount not to exceed $10,000,000.00 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 part 1, 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 part 1, 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 part 1, there is
  appropriated an amount not to exceed $3,000,000.00 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. 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 part 1 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. Money in the school loan exception fee fund that is
  unexpended at the end of the fiscal year shall not revert to the
  general fund but shall be carried over to the succeeding fiscal year.
        Sec. 210. The department is appropriated an amount not to exceed
  $100,000.00 from collection of defaulted loans in the Martin Luther
    King, Jr. - Cesar Chavez - Rosa Parks programs to offset costs of administering the loan collections.
  STATE BOARD/OFFICE OF THE SUPERINTENDENT
        Sec. 301. (1) The appropriations in part 1 for state board of
  education, per diem payments may be used for 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 quarter'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 part 1 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 part 1 for innovation
  and community service operations, there is allocated $500,000.00 and
  5.0 FTE positions to 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 part 1 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 part 1 is $50,000.00 to publish and distribute
  the Michigan school report.
        Sec. 402.  The department shall coordinate with the Michigan
  information center on the development of an educational information
  system.
  STANDARDS, ASSESSMENT, AND ACCREDITATION SERVICES
        Sec. 501. (1) From the allocations in part 1 for test development
  and administration, the department shall provide tests to nonpublic
  schools and home-schooled students upon request.  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.
  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 any state
  government agency for the use of facilities at the Michigan school for
  the blind's former site in Lansing.  The rental rates and all leasing
  arrangements shall be subject to the approval of the department of
  management and budget.  In addition, the facilities at the Lansing site
  may also be available for rent to private or publicly funded
  organizations.   
        (2) In addition to those funds appropriated in part 1, the
  department may receive and expend additional funds from lease
  agreements at the Michigan school for the blind's former site in
  Lansing that have been negotiated with the approval of the department
  of management and budget.  These funds are appropriated to the
  department for operation, maintenance, and renovation expenses
  associated with the leased space.
        (3) The unexpended balances of appropriations and any surplus
  restricted revenue for Michigan school for the blind's former 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, 2000, shall be carried forward as a work project or as
  restricted revenue and expended for special maintenance and repairs of
  facilities at the Michigan school for the blind's former site in
  Lansing.  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, 2001.
        Sec. 604.  (1) The department may assess rent or lease excess
  property located on the campus of the Michigan schools for the deaf and
  blind in Flint to private or publicly funded organizations.  
            (2) In addition to those funds appropriated in part 1, the
  department may receive and expend additional funds from lease
  agreements at the Michigan schools for the deaf and blind Flint campus
  that have been negotiated with the approval of the department of
  management and budget.  These funds are appropriated to the department
  for the operation, maintenance, and renovation expenses associated with
  the leased space.  
        (3) Proceeds from the sale of surplus property and facilities at
  the Michigan schools for the deaf and blind or at camp Tuhsmeheta are
  hereby appropriated for the purposes of repairs, renovations, and
  maintenance of the Flint campus.  
        (4) The unexpended balances of appropriations for school for deaf
  and blind operations, and from proceeds of the sale of surplus property
  and facilities at the Michigan schools for the deaf and blind and at
  camp Tuhsmeheta shall not lapse to the state general fund at the end of
  the fiscal year.  Any unexpended and unencumbered funds remaining on
  September 30, 2000, shall be carried forward as a work project or as
  restricted revenue and expended for special maintenance and repairs of
  facilities at the campus of the Michigan schools for the deaf and blind
  in Flint.  The work shall be carried out by state employees, or by
  contract as necessary, at an estimated cost of $250,000.00.  The
  estimated completion date of the work is September 30, 2001. 
        Sec. 605. The department may assist the department of community
  health, other departments, and local school districts to secure
  reimbursement 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.
  PROFESSIONAL PREPARATION SERVICES
            Sec. 701. From the funds appropriated in part 1 for professional
  preparation services, the department shall maintain the professional
  personnel register and certificate revocation/felony conviction files.
  GRANTS AND DISTRIBUTIONS
        Sec. 801. 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 part 1 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 part 1 is not sufficient to fund all payments
  determined under this section.
        Sec. 803. (1) The funds appropriated in part 1 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
  consistent 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 1998-1999 fiscal year shall receive
  priority for funding in 1999-2000.  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.  The
  RPM shall be developed by the department in consultation with the RPM
  advisory council as created by Executive Order 1998-4.
        (2) In order to implement the RPM, 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 part 1 for the reading plan for
  Michigan grants shall be allocated by the department on a competitive
  grant basis to districts, intermediate 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 (2) beginning after the close of the 1998-99 school year.
        (b) The district must identify money 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.
        (4) Applications for funding must be submitted to the department no
  later than December 31, 1999. The department shall notify recipients of
  the grants no later than March 30, 2000.
        (5) Not later than the 2002-2003 school year, a pupil shall not be
  promoted to the next grade level at the end of the school year if the
  pupil has not met the standards for pupil promotion adopted by the
  local school district.
        Sec. 805. From the funds appropriated in part 1 for national board
  certification, the department shall pay 1/2 of the application fee for
  teachers who are deemed by the department by March 1, 1998 to be
  qualified to apply to the national board for professional teaching
  standards for professional teaching certificates or licenses and to
  provide grants to recognize and reward teachers who receive
  certification or licensure.
  
  
  
  
  
  Final page.