SENATE BILL No. 966

EXECUTIVE BUDGET BILL

February 3, 2000, Introduced by Senators STILLE, BENNETT, VAUGHN and JOHNSON 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, 2001; 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, 2001, 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 457.6

GROSS APPROPRIATION $ 925,310,500

Total interdepartmental grants and

intradepartmental transfers 518,000

ADJUSTED GROSS APPROPRIATION $ 924,792,500

Federal revenues:

Total federal revenues 871,088,900

Special revenue funds:

Total local revenues 6,365,000

Total private revenues 602,300

Total state restricted revenues 14,037,600

State general fund/general purpose $ 32,698,700

Sec. 102. STATE BOARD OF EDUCATION/OFFICE

OF THE SUPERINTENDENT

Full-time equated unclassified positions 6.0

Full-time equated classified positions 14.0

State board of education, per diem payments $ 19,400

Unclassified positions--6.0 FTE positions 505,500

State board/superintendent operations--14.0 FTE

positions 2,307,700

GROSS APPROPRIATION $ 2,832,600

Appropriated from:

Federal revenues:

Federal revenues 573,200

Special revenue funds:

Private revenues 8,000

State general fund/general purpose $ 2,251,400

Sec. 103. CENTRAL SUPPORT

Full-time equated classified positions 45.2

Central support--45.2 FTE positions $ 5,614,400

Worker's compensation 108,000

Education commission of the states 95,500

Property management services 1,118,700

Training and orientation workshops 100,000

Terminal leave payments 440,500

GROSS APPROPRIATION $ 7,477,100

Appropriated from:

Federal revenues:

Federal revenues 4,081,400

Special revenue funds:

Local cost sharing 60,800

Certification fees 153,900

Commodity distribution fees 4,800

Driver fees 19,900

Motorcycle license fees 3,900

Safety education fund 2,300

School loan exception fees 63,000

Teacher testing fees 8,800

Training and orientation workshop fees 100,000

State general fund/general purpose $ 2,978,300

Sec. 104. SCHOOL SUPPORT SERVICES

Full-time equated classified positions 41.4

School support operations--41.4 FTE positions $ 4,876,300

GROSS APPROPRIATION $ 4,876,300 Appropriated from:

Federal revenues:

Federal revenues 3,875,500

Special revenue funds:

Commodity distribution fees 41,800

Driver fees 482,900

Motorcycle license fees 137,900

Safety education fund 116,500

State general fund/general purpose $ 221,700

Sec. 105. DATA AND TECHNOLOGY SERVICES

Full-time equated classified positions 37.2

Data and technology operations--37.2 FTE

positions $ 5,127,400

GROSS APPROPRIATION $ 5,127,400

Appropriated from:

Federal revenues:

Federal revenues 2,759,100

Special revenue funds:

Certification fees 256,600

Driver fees 10,600

State general fund/general purpose $ 2,101,100

Sec. 106. SPECIAL EDUCATION SERVICES

Full-time equated classified positions 55.6

Special education operations--55.6 FTE positions $ 7,140,900 GROSS APPROPRIATION $ 7,140,900 Appropriated from:

Federal revenues:

Federal revenues 6,922,500

Special revenue funds:

Certification fees 19,900

State general fund/general purpose $ 198,500

Sec. 107. LANSING, MICHIGAN SCHOOL FOR THE

BLIND FORMER SITE

General services $ 1,267,000

GROSS APPROPRIATION $ 1,267,000

Appropriated from:

Interdepartmental grant revenues:

Interdepartmental grant from corrections

academy lease 518,000

Special revenue funds:

Private revenues 10,000

Lansing, Michigan school for the blind rent 739,000

State general fund/general purpose $ 0 Sec. 108. 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 $ 11,117,200

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 $ 13,225,800

Appropriated from:

Federal revenues:

Federal revenues 2,448,200

Special revenue funds:

Local cost sharing (schools for blind/deaf) 6,201,600

Local school district service fees 102,600

Private revenues 460,100

Student insurance revenue 205,100

State general fund/general purpose $ 3,808,200

Sec. 109. PROFESSIONAL PREPARATION SERVICES

Full-time equated classified positions 26.5

Professional preparation operations--26.5

FTE positions $ 3,179,900

Teacher quality enhancement 2,500,000

Department of attorney general 50,000

GROSS APPROPRIATION $ 5,729,900

Appropriated from:

Federal revenues:

Federal revenues 2,720,800

Special revenue funds:

Certification fees 2,746,400

Teacher testing fees 262,700

State general fund/general purpose $ 0

Sec. 110. FIELD SERVICES

Full-time equated classified positions 41.0

Field services operations--41.0 FTE positions $ 4,099,800 GROSS APPROPRIATION $ 4,099,800

Appropriated from:

Federal revenues:

Federal revenues 3,673,200

Special revenue funds:

State general fund/general purpose $ 426,600 Sec. 111. OFFICE OF SCHOOL EXCELLENCE

Full-time equated classified positions 45.3

School excellence operations--45.3 FTE position $ 6,589,200

GROSS APPROPRIATION $ 6,589,200

Appropriated from:

Federal revenues:

Federal revenues 4,006,300

Special revenue funds:

Private revenues 29,400

State general fund/general purpose $ 2,553,500

Sec. 112. GOVERNMENT SERVICES

Full-time equated classified positions 12.3

Government services operations--12.3 FTE positions $ 1,081,300

GROSS APPROPRIATION $ 1,081,300

Appropriated from:

Federal revenues:

Federal revenues 635,800

Special revenue funds:

State general fund/general purpose $ 445,500

Sec. 113. SAFE SCHOOLS AND ADMINISTRATIVE LAW

Full-time equated classified positions 11.0

Safe schools operations--2.0 FTE positions $ 425,500

Administrative law operations--9.0 FTE positions 847,400

State tenure commission per diem 11,100

GROSS APPROPRIATION $ 1,284,000

Appropriated from:

Federal revenues:

Federal revenues 293,400

Special revenue funds:

State general fund/general purpose $ 990,600

Sec. 114. EDUCATION OPTIONS, CHARTERS, AND CHOICE

Full-time equated classified positions 7.8

Education option operations--7.8 FTE positions $ 797,800

GROSS APPROPRIATION $ 797,800

Appropriated from:

Federal revenues:

Federal revenues 305,500

Special revenue funds:

State general fund/general purpose $ 492,300

Sec. 115. GRANTS AND DISTRIBUTIONS

FEDERAL PROGRAMS:

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

Goals 2000 grants 17,082,200

Handicapped infants and toddlers 16,000,000

Homeless children and youth 1,041,000

Michigan charter school subgrant program 5,000,000

Preschool grants (PL 94-142) 13,500,000

Refugee children school impact grant 950,000

School-age child care grants 301,500

School lunch program-federal share 244,500,000

Serve America grants 840,000

Special education 20,089,800

Surplus commodity 2,506,000

Technology literacy challenge grants 17,784,300

Title I, comprehensive school reform 5,889,200

Title I, disadvantaged children 346,000,000

Title I, even start 5,300,000

Title I, migrant 12,000,000

Title VI, innovative strategies 13,480,900

STATE PROGRAMS:

Christa McAuliffe grants 94,800

Driver education 7,600,000

Motorcycle safety education 867,300

National board certification 20,000

Off-road vehicle safety training grant 194,300

Reading plan for Michigan grants 34,000,000

School breakfast programs 4,128,000

School readiness grants 12,083,000

GROSS APPROPRIATION $ 863,781,400

Appropriated from:

Federal revenues:

DAG-food and nutrition service, national

school lunch 244,500,000

DAG-the emergency food assistance program 2,506,000

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, goals 2000 22,082,200

DED-OESE, Eisenhower mathematics and science

administration 12,940,000

DED-OESE, reading excellence act 29,000,000

DED-OESE, technology literacy challenge fund 17,784,300

DED-OESE, title I, comprehensive school

reform 5,031,900

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 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 13,500,000

DED-OSERS, handicapped program, individuals with

disabilities act 20,089,800

DED-OVAE, homeless children and youth 1,041,000

HHS-ACF, at-risk child care 500,000

HHS-ACF, refugee children 950,000

HHS-CDCP, AIDS education 600,000

HHS-ACF, dependent care block grant 301,500

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 $ $16,231,000PART 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 2000-2001 is $46,736,300.00 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 1,667,500

Motorcycle safety education 601,000

Off-road vehicle safety training grant 57,900

School breakfast programs 4,128,000

TOTAL $ 14,054,400

(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 for any quarter under subsection (1), the principal executive officer shall immediately give notice of the approximate shortfall to the state budget director, the senate and house of representatives standing committees on appropriations, and the senate and house fiscal agencies.

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 act:

(a) "DAG" means the United States department of agriculture.

(b) "DED" means the United States department of education.

(c) "DED-OBEMLA" means the DED office of bilingual education and minority languages affairs.

(d) "DED-OESE" means the DED office of elementary and secondary education.

(e) "DED-OSERS" means the DED office of special education rehabilitation service.

(f) "DED-OVAE" means the office of vocational and adult education.

(g) "Department" means the Michigan department of education. (h) "District" means a local school district as defined in section 6 of the revised school code, 1976 PA 451, MCL 380.6.

(i) "FTE" means full-time equated.

(j) "HHS" means the United States department of health and human services.

(k) "HHS-ACF" means the HHS administration for families and children.

(l) "HHS-CDCP" means the HHS center for disease control and prevention.

(m) "RPM" means reading plan for Michigan.

Sec. 204. (1) Beginning October 1, 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. The state budget director shall report by the 30th of each month to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the reasons to justify the exception.

Sec. 205. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $20,000,000.00 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 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. 206. 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. 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. Sixty days before beginning any effort to privatize, the department shall submit a complete project plan to the appropriate subcommittees of the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate subcommittees of the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies within 30 months.

Sec. 211. (1) From the amount appropriated in part 1 for the office for safe schools, the department is allocated an amount not to exceed $200,000.00 to establish an office for safe schools within the department. The office for safe schools shall work with local school boards, law enforcement agencies, community leaders, and the office of drug control policy for the prevention of school violence. The office for safe schools shall develop and implement, and serve as coordinator of, a statewide clearinghouse for information, program development, model programs and policies, and technical assistance on school violence prevention.

(2) To accomplish its functions under this section, the office for safe schools shall do all of the following:

(a) Evaluate the effectiveness of, and make recommendations to local school boards concerning, public school violence prevention programs, including, but not limited to, programs aimed at reducing the possession of weapons and the incidence of other violent behaviors on school campuses, violence prevention curricula, conflict resolution and peer mediation training, interagency cooperative referral and treatment programs, parental involvement programs, and school safety planning.

(b) In consultation with appropriate organizations, develop and distribute to school districts and public school academies a model code of conduct for pupils.

(c) Coordinate with the office of drug control policy in the department of community health to ensure that there is a meaningful linkage between the efforts under this act to provide safe schools and the initiatives undertaken through that office, including, but not limited to, school districts' safe and drug-free school plans, and to facilitate timely applications for and distribution of available grant money.

Sec. 212. The department shall continue to pilot the use of the Internet to fulfill the reporting requirements in this bill. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on the Internet or on the Intranet. The appropriations subcommittee shall be notified in writing of the Internet/Intranet site of any such report.

STATE BOARD/OFFICE OF THE SUPERINTENDENT

Sec. 301. (1) The appropriations in section 102 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 quarter's expenses by fund source for members of the state board of education related to the performance of their responsibilities.

Sec. 302. From the amount appropriated in section 102 to the state board of education, not more than $27,500.00 shall be expended for travel.

MICHIGAN SCHOOLS FOR THE DEAF AND BLIND

Sec. 401. 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. 402. 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. 403. (1) The department may assess rent to any state agency, and private or publicly funded organization for the use of any facility 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.

(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) Security guards or other patrols at the Michigan school for the blind's former site shall not be funded through section 108 funds appropriated for the Michigan schools for the deaf and blind.

(4) If the department leases real property to a person or organization that is not a department of state government, the department shall not expend funds in excess of the lease revenue received to replace, renovate, or repair that real property. This section shall not apply to emergency repairs or costs associated with technological renovations.

(5) The department shall not lease real property for less than fair market value.

(6) 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, 2001, shall be carried forward as a work project or as restricted revenue and expended for special maintenance and repairs of facilities at the former Michigan school for the blind site in Lansing. The work project shall be performed by state employees or by contract when necessary at an estimated cost of $100,000.00. The estimated completion date of the work project is September 30, 2002.

Sec. 404. (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 are 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 shall not lapse to the state general fund at the end of the fiscal year. Any unexpended and unencumbered funds remaining on September 30, 2001 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, 2002.

Sec. 405. 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.

Sec. 406. (1) The Michigan schools for the deaf and blind may promote its 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.

(2) Upon knowledge of or recognition by an intermediate school district that a child in the district is deaf or hard of hearing or blind or visually impaired, the intermediate school district shall provide to the parents of the child the literature distributed by the Michigan schools for the deaf and blind to intermediate school districts under subsection (1).

PROFESSIONAL PREPARATION SERVICES

Sec. 501. 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.

Sec. 502. The department shall authorize teacher preparation institutions to provide an alternative program by which up to 1/2 of the required student internship or student teaching credits may be earned through substitute teaching. The department shall require that teacher preparation institutions collaborate with school districts to ensure that the quality of instruction provided to student teachers is comparable to that required in a traditional student teaching program.

EDUCATION OPTIONS, CHARTERS AND CHOICE

Sec. 601. (1) From the amount appropriated in section 114 for education options, charters and choices, there is allocated $500,000.00 and 5.0 FTE positions to operate a public school academy office to administer public school academy legislation and associated regulations, and to coordinate the activities of the department relating to public school academies.

(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.

GRANTS AND DISTRIBUTIONS

Sec. 701. 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 office and the chairpersons of the senate and house appropriations subcommittees having jurisdiction over the department budget.

Sec. 702. 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. 703. (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 superintendent 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 superintendent may be at whatever level the superintendent 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 1999-2000 fiscal year shall receive priority for funding in 2000-2001. 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. 704. (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 under 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, 2000. The department shall notify recipients of the grants no later than March 30, 2001.

(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.

(6) If any federally funded program requirement of this section is in conflict with federal law, the federal law will control.

Sec. 705. If there is appropriated for fiscal year 2000-2001 not more than $2,000,000.00 from the general fund/general purpose revenues from the state school aid fund to develop early childhood education programs for children ages 0 to 3, the department shall administer the grant program in accordance with the criteria stated for the early childhood education program in the state school aid act.

Sec. 706. 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, 2000 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.

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