SENATE BILL No. 1019

February 16, 2000, 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 1999 PA

119.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 11. (1) For the fiscal year ending September 30,

2 1999, there is appropriated for the public schools of this state

3 and certain other state purposes relating to education the sum of

4 $9,049,591,100.00 from the state school aid fund established by

5 section 11 of article IX of the state constitution of 1963 and

6 the 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 $9,590,537,700.00

10 $____________________ from the state school aid fund established

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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 $420,613,500.00

9 $____________________ 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

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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.

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