HOUSE BILL No. 4111 January 31, 2001, Introduced by Reps. Patterson, Toy, Kuipers, DeVuyst, Ruth Johnson, Voorhees, Julian and Stewart 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 20 (MCL 388.1620), as amended by 2000 PA 297. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 20. (1) For 1999-2000, the basic foundation allowance 2 is $5,700.00 per membership pupil. For 2000-2001, the basic 3 foundation allowance is $6,000.00 per membership pupil. For 4 2001-2002, the basic foundation allowance is $6,300.00 per mem- 5 bership pupil. For 2002-2003, the basic foundation allowance is 6 $6,700.00 per membership pupil. 7 (2) From the appropriation in section 11, there is allocated 8 for 1999-2000 an amount not to exceed $8,418,600,000.00 to 9 guarantee each district a foundation allowance per membership 10 pupil other than special education pupils and to make payments 00336'01 TAV 2 1 under this section to public school academies and university 2 schools for membership pupils other than special education 3 pupils. The amount of each district's foundation allowance shall 4 be calculated as provided in this section, using a basic founda- 5 tion allowance in the amount specified in subsection (1). If the 6 maximum amount allocated under this section is not sufficient to 7 fully fund payments under this section, and before any proration 8 required under section 11, the amount of the payment to each dis- 9 trict, university school, and public school academy shall be pro- 10 rated by reducing by an equal percentage the total payment under 11 this section to each district, university school, and public 12 school academy. However, if the department determines that pro- 13 ration will be required under this section, the superintendent 14 shall notify the state budget director, and the state budget 15 director shall notify the legislature at least 30 calendar days 16 or 6 legislative session days, whichever is more, before the 17 department reduces any payments under this section because of the 18 proration. During the 30 calendar day or 6 legislative session 19 day period after that notification by the state budget director, 20 the department shall not reduce any payments under this section 21 because of proration. The legislature may prevent proration 22 under this section from occurring by, within the 30 calendar day 23 or 6 legislative session day period after that notification by 24 the director, enacting legislation appropriating additional funds 25 from the general fund, countercyclical budget and economic stabi- 26 lization fund, state school aid fund balance, or another source 00336'01 3 1 to ensure full foundation allowance funding for each district, 2 university school, and public school academy. 3 (3) Except as otherwise provided in this section, the amount 4 of a district's foundation allowance shall be calculated as fol- 5 lows, using in all calculations the total amount of the 6 district's foundation allowance as calculated before any 7 proration: 8 (a) For a district that in the immediately preceding state 9 fiscal year had a foundation allowance at least equal to the sum 10 of $4,200.00 plus the total dollar amount of all adjustments made 11 from 1994-95 to the immediately preceding state fiscal year in 12 the lowest foundation allowance among all districts, but less 13 than the basic foundation allowance in the immediately preceding 14 state fiscal year, the district shall receive a foundation allow- 15 ance in an amount equal to the sum of the district's foundation 16 allowance for the immediately preceding state fiscal year plus 17 the difference between twice the dollar amount of the adjustment 18 from the immediately preceding state fiscal year to the current 19 state fiscal year made in the basic foundation allowance and 20 [(the dollar amount of the adjustment from the immediately pre- 21 ceding state fiscal year to the current state fiscal year made in 22 the basic foundation allowance minus $50.00) times (the differ- 23 ence between the district's foundation allowance for the immedi- 24 ately preceding state fiscal year and the sum of $4,200.00 plus 25 the total dollar amount of all adjustments made from 1994-95 to 26 the immediately preceding state fiscal year in the lowest 27 foundation allowance among all districts) divided by the 00336'01 4 1 difference between the basic foundation allowance for the current 2 state fiscal year and the sum of $4,200.00 plus the total dollar 3 amount of all adjustments made from 1994-95 to the immediately 4 preceding state fiscal year in the lowest foundation allowance 5 among all districts]. However, the foundation allowance for a 6 district that had less than the basic foundation allowance in the 7 immediately preceding state fiscal year shall not exceed the 8 basic foundation allowance for the current state fiscal year. 9 (b) Except as otherwise provided in this subsection, for a 10 district that in the immediately preceding state fiscal year had 11 a foundation allowance in an amount at least equal to the amount 12 of the basic foundation allowance for the immediately preceding 13 state fiscal year, the district shall receive a foundation allow- 14 ance in an amount equal to the sum of the district's foundation 15 allowance for the immediately preceding state fiscal year plus 16 the dollar amount of the adjustment from the immediately preced- 17 ing state fiscal year to the current state fiscal year in the 18 basic foundation allowance. 19 (c) Beginning in 1999-2000, for a district that in the 20 1994-95 state fiscal year had a foundation allowance greater than 21 $6,500.00, the district's foundation allowance is an amount equal 22 to the sum of the district's foundation allowance for the immedi- 23 ately preceding state fiscal year plus the lesser of the increase 24 in the basic foundation allowance for the current state fiscal 25 year, as compared to the immediately preceding state fiscal year, 26 or the product of the district's foundation allowance for the 27 immediately preceding state fiscal year times the percentage 00336'01 5 1 increase in the United States consumer price index in the 2 calendar year ending in the immediately preceding fiscal year as 3 reported by the May revenue estimating conference conducted under 4 section 367b of the management and budget act, 1984 PA 431, 5 MCL 18.1367b. 6 (d) For 1999-2000, each district's foundation allowance 7 shall be at least $5,700.00. 8 (e) Beginning in 2000-2001, for a district that has a foun- 9 dation allowance that is not a whole dollar amount, the 10 district's foundation allowance shall be rounded up to the near- 11 est whole dollar. 12 (F) FOR 2001-2002, A DISTRICT'S FOUNDATION ALLOWANCE SHALL 13 BE $9,000.00 IF THE DEPARTMENT DETERMINES THAT THE DISTRICT MEETS 14 ALL OF THE FOLLOWING: 15 (i) IS LOCATED IN WHOLE OR IN PART IN A COUNTY WITH A POPU- 16 LATION GREATER THAN 2,000,000. 17 (ii) HAS TERRITORY OF MORE THAN 1 CITY, VILLAGE, OR TOWNSHIP 18 LOCATED WITHIN ITS BOUNDARIES. 19 (iii) HAS A 2000-2001 MEMBERSHIP GREATER THAN 15,000. 20 (iv) OPERATES AT LEAST 2 HIGH SCHOOLS, AT LEAST 5 MIDDLE 21 SCHOOLS, AND AT LEAST 12 ELEMENTARY SCHOOLS. 22 (v) HAS AN AVERAGE CLASSROOM PUPIL TO TEACHER RATIO OF NOT 23 LESS THAN 23 TO 1. 24 (vi) LESS THAN 8% OF ITS PUPILS MET THE INCOME ELIGIBILITY 25 CRITERIA FOR THE FEDERAL FREE AND REDUCED PRICE LUNCH PROGRAM FOR 26 THE IMMEDIATELY PRECEDING SCHOOL YEAR. 00336'01 6 1 (vii) HAS AN AVERAGE TEACHER SALARY OF AT LEAST $55,000.00 2 FOR THE SCHOOL YEAR. 3 (viii) HAS A DROPOUT RATE OF LESS THAN 3.2%, AS CALCULATED 4 BY THE DEPARTMENT FOR THE IMMEDIATELY PRECEDING SCHOOL YEAR. 5 (ix) HAS A GRADUATION RATE OF AT LEAST 90%, AS CALCULATED BY 6 THE DEPARTMENT FOR THE IMMEDIATELY PRECEDING SCHOOL YEAR. 7 (x) HAD A FOUNDATION ALLOWANCE FOR 1999-2000 OF MORE THAN 8 $6,200.00. 9 (G)(f)Beginning in 2002-2003, for a district that 10 receives a payment under section 22c for 2001-2002, the 11 district's 2001-2002 foundation allowance shall be considered to 12 have been an amount equal to the sum of the district's actual 13 2001-2002 foundation allowance as otherwise calculated under this 14 section plus the per pupil amount of the district's equity pay- 15 ment for 2001-2002 under section 22c. 16 (4) To ensure that a district receives the district's foun- 17 dation allowance, there is allocated to each district a state 18 portion of the district's foundation allowance in an amount cal- 19 culated under this subsection. Except as otherwise provided in 20 this subsection, the state portion of a district's foundation 21 allowance is an amount equal to the district's foundation allow- 22 ance or $6,500.00, whichever is less, minus the difference 23 between the product of the taxable value per membership pupil of 24 all property in the district that is not a homestead or qualified 25 agricultural property times the lesser of 18 mills or the number 26 of mills of school operating taxes levied by the district in 27 1993-94 and the quotient of the ad valorem property tax revenue 00336'01 7 1 of the district captured under 1975 PA 197, MCL 125.1651 to 2 125.1681, the tax increment finance authority act, 1980 PA 450, 3 MCL 125.1801 to 125.1830, the local development financing act, 4 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield redevel- 5 opment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, 6 divided by the district's membership excluding special education 7 pupils. Beginning in 1999-2000, for a district described in 8 subsection (3)(c), the state portion of the district's foundation 9 allowance is an amount equal to $6,962.00 plus the difference 10 between the district's foundation allowance for the current state 11 fiscal year and the district's foundation allowance for 1998-99, 12 minus the difference between the product of the taxable value per 13 membership pupil of all property in the district that is not a 14 homestead or qualified agricultural property times the lesser of 15 18 mills or the number of mills of school operating taxes levied 16 by the district in 1993-94 and the quotient of the ad valorem 17 property tax revenue of the district captured under 1975 PA 197, 18 MCL 125.1651 to 125.1681, the tax increment finance authority 19 act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development 20 financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the 21 brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 22 to 125.2672, divided by the district's membership excluding spe- 23 cial education pupils. For a district that has a millage reduc- 24 tion required under section 31 of article IX of the state consti- 25 tution of 1963, the state portion of the district's foundation 26 allowance shall be calculated as if that reduction did not 27 occur. The $6,500.00 amount prescribed in this subsection shall 00336'01 8 1 be adjusted each year by an amount equal to the dollar amount of 2 the difference between the basic foundation allowance for the 3 current state fiscal year and $5,000.00. However, beginning in 4 2002-2003, the $6,500.00 amount prescribed in this subsection 5 shall be adjusted each year by an amount equal to the dollar 6 amount of the difference between the basic foundation allowance 7 for the current state fiscal year and $5,000.00, minus $200.00. 8 (5) The allocation under this section for a pupil shall be 9 based on the foundation allowance of the pupil's district of 10 residence. However, for a pupil enrolled pursuant to section 105 11 or 105c in a district other than the pupil's district of resi- 12 dence, the allocation under this section shall be based on the 13 lesser of the foundation allowance of the pupil's district of 14 residence or the foundation allowance of the educating district. 15 For a pupil in membership in a K-5, K-6, or K-8 district who is 16 enrolled in another district in a grade not offered by the 17 pupil's district of residence, the allocation under this section 18 shall be based on the foundation allowance of the educating dis- 19 trict if the educating district's foundation allowance is greater 20 than the foundation allowance of the pupil's district of 21 residence. Beginning in 1999-2000, the calculation under this 22 subsection shall take into account a district's per pupil alloca- 23 tion under section 20j(2). 24 (6) Subject to subsection (7) and except as otherwise pro- 25 vided in this subsection, for pupils in membership, other than 26 special education pupils, in a public school academy or a 27 university school, there is allocated under this section each 00336'01 9 1 fiscal year for 1999-2000, for 2000-2001, for 2001-2002, and for 2 2002-2003 to the authorizing body that is the fiscal agent for 3 the public school academy for forwarding to the public school 4 academy, or to the board of the public university operating the 5 university school, an amount per membership pupil other than spe- 6 cial education pupils in the public school academy or university 7 school equal to the sum of the local school operating revenue per 8 membership pupil other than special education pupils for the dis- 9 trict in which the public school academy or university school is 10 located and the state portion of that district's foundation 11 allowance, or the sum of the basic foundation allowance under 12 subsection (1) plus $500.00, whichever is less. However, begin- 13 ning in 2002-2003, this $500.00 amount shall instead be $300.00. 14 Notwithstanding section 101(2), for a public school academy that 15 begins operations in 1999-2000, 2000-2001, 2001-2002, or 16 2002-2003, as applicable, after the pupil membership count day, 17 the amount per membership pupil calculated under this subsection 18 shall be adjusted by multiplying that amount per membership pupil 19 by the number of hours of pupil instruction provided by the 20 public school academy after it begins operations, as determined 21 by the department, divided by the minimum number of hours of 22 pupil instruction required under section 1284 of the revised 23 school code, MCL 380.1284. The result of this calculation shall 24 not exceed the amount per membership pupil otherwise calculated 25 under this subsection. 26 (7) If more than 25% of the pupils residing within a 27 district are in membership in 1 or more public school academies 00336'01 10 1 located in the district, then the amount per membership pupil 2 allocated under this section to the authorizing body that is the 3 fiscal agent for a public school academy located in the district 4 for forwarding to the public school academy shall be reduced by 5 an amount equal to the difference between the product of the tax- 6 able value per membership pupil of all property in the district 7 that is not a homestead or qualified agricultural property times 8 the lesser of 18 mills or the number of mills of school operating 9 taxes levied by the district in 1993-94 and the quotient of the 10 ad valorem property tax revenue of the district captured under 11 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance 12 authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local 13 development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, 14 or the brownfield redevelopment financing act, 1996 PA 381, 15 MCL 125.2651 to 125.2672, divided by the district's membership 16 excluding special education pupils, in the school fiscal year 17 ending in the current state fiscal year, calculated as if the 18 resident pupils in membership in 1 or more public school acade- 19 mies located in the district were in membership in the district. 20 In order to receive state school aid under this act, a district 21 described in this subsection shall pay to the authorizing body 22 that is the fiscal agent for a public school academy located in 23 the district for forwarding to the public school academy an 24 amount equal to that local school operating revenue per member- 25 ship pupil for each resident pupil in membership other than spe- 26 cial education pupils in the public school academy, as determined 27 by the department. 00336'01 11 1 (8) If a district does not receive a payment under 2 subsection (9); if the number of mills the district may levy on a 3 homestead and qualified agricultural property under 4 section 1211(1) of the revised school code, MCL 380.1211, is 0.5 5 mills or less; and if the district elects not to levy those 6 mills, the district instead shall receive a separate supplemental 7 payment under this subsection in an amount equal to the amount 8 the district would have received had it levied those mills, as 9 determined by the department of treasury. A district shall not 10 receive a separate supplemental payment under this subsection for 11 a fiscal year unless in the calendar year ending in the fiscal 12 year the district levies 18 mills or the number of mills of 13 school operating taxes levied by the district in 1993, whichever 14 is less, on property that is not a homestead or qualified agri- 15 cultural property. 16 (9) For a district that had combined state and local revenue 17 per membership pupil in the 1993-94 state fiscal year of more 18 than $6,500.00 and that had fewer than 350 pupils in membership, 19 if the district elects not to reduce the number of mills from 20 which a homestead and qualified agricultural property are exempt 21 and not to levy school operating taxes on a homestead and quali- 22 fied agricultural property as provided in section 1211(1) of the 23 revised school code, MCL 380.1211, and not to levy school operat- 24 ing taxes on all property as provided in section 1211(2) of the 25 revised school code, MCL 380.1211, there is allocated under this 26 subsection for 1994-95 and each succeeding fiscal year a separate 27 supplemental payment in an amount equal to the amount the 00336'01 12 1 district would have received per membership pupil had it levied 2 school operating taxes on a homestead and qualified agricultural 3 property at the rate authorized for the district under 4 section 1211(1) of the revised school code, MCL 380.1211, and 5 levied school operating taxes on all property at the rate autho- 6 rized for the district under section 1211(2) of the revised 7 school code, MCL 380.1211, as determined by the department of 8 treasury. If in the calendar year ending in the fiscal year a 9 district does not levy 18 mills or the number of mills of school 10 operating taxes levied by the district in 1993, whichever is 11 less, on property that is not a homestead or qualified agricul- 12 tural property, the payment under this subsection will be reduced 13 by the same percentage as the millage actually levied compares to 14 the 18 mills or the number of mills levied in 1993, whichever is 15 less. 16 (10) A district or public school academy may use any funds 17 allocated under this section in conjunction with any federal 18 funds for which the district or public school academy otherwise 19 would be eligible. 20 (11) For a district that is formed or reconfigured after 21 June 1, 1994 by consolidation of 2 or more districts or by annex- 22 ation, the resulting district's foundation allowance under this 23 section beginning after the effective date of the consolidation 24 or annexation shall be the average of the foundation allowances 25 of each of the original or affected districts, calculated as pro- 26 vided in this section, weighted as to the percentage of pupils in 27 total membership in the resulting district who reside in the 00336'01 13 1 geographic area of each of the original districts. If an 2 affected district's foundation allowance is less than the basic 3 foundation allowance, the amount of that district's foundation 4 allowance shall be considered for the purpose of calculations 5 under this subsection to be equal to the amount of the basic 6 foundation allowance. 7 (12) Each fraction used in making calculations under this 8 section shall be rounded to the fourth decimal place and the 9 dollar amount of an increase in the basic foundation allowance 10 shall be rounded to the nearest whole dollar. 11 (13) State payments related to payment of the foundation 12 allowance for a special education pupil are not funded under this 13 section but are instead funded under section 51a. 14 (14) To assist the legislature in determining the basic 15 foundation allowance for the subsequent state fiscal year, each 16 revenue estimating conference conducted under section 367b of the 17 management and budget act, 1984 PA 431, MCL 18.1367b, shall cal- 18 culate a pupil membership factor, a revenue adjustment factor, 19 and an index as follows: 20 (a) The pupil membership factor shall be computed by divid- 21 ing the estimated membership in the school year ending in the 22 current state fiscal year, excluding intermediate district mem- 23 bership, by the estimated membership for the school year ending 24 in the subsequent state fiscal year, excluding intermediate dis- 25 trict membership. If a consensus membership factor is not deter- 26 mined at the revenue estimating conference, the principals of the 27 revenue estimating conference shall report their estimates to the 00336'01 14 1 house and senate subcommittees responsible for school aid 2 appropriations not later than 7 days after the conclusion of the 3 revenue conference. 4 (b) The revenue adjustment factor shall be computed by 5 dividing the sum of the estimated total state school aid fund 6 revenue for the subsequent state fiscal year plus the estimated 7 total state school aid fund revenue for the current state fiscal 8 year, adjusted for any change in the rate or base of a tax the 9 proceeds of which are deposited in that fund and excluding money 10 transferred into that fund from the countercyclical budget and 11 economic stabilization fund under section 353e of the management 12 and budget act, 1984 PA 431, MCL 18.1353e, by the sum of the 13 estimated total school aid fund revenue for the current state 14 fiscal year plus the estimated total state school aid fund reve- 15 nue for the immediately preceding state fiscal year, adjusted for 16 any change in the rate or base of a tax the proceeds of which are 17 deposited in that fund. If a consensus revenue factor is not 18 determined at the revenue estimating conference, the principals 19 of the revenue estimating conference shall report their estimates 20 to the house and senate subcommittees responsible for school aid 21 appropriations not later than 7 days after the conclusion of the 22 revenue conference. 23 (c) The index shall be calculated by multiplying the pupil 24 membership factor by the revenue adjustment factor. If a consen- 25 sus index is not determined at the revenue estimating conference, 26 the principals of the revenue estimating conference shall report 27 their estimates to the house and senate subcommittees responsible 00336'01 15 1 for school aid appropriations not later than 7 days after the 2 conclusion of the revenue conference. 3 (15) If the principals at the revenue estimating conference 4 reach a consensus on the index described in subsection (14)(c), 5 the basic foundation allowance for the subsequent state fiscal 6 year shall be at least the amount of that consensus index multi- 7 plied by the basic foundation allowance specified in subsection 8 (1). 9 (16) If at the January revenue estimating conference it is 10 estimated that pupil membership, excluding intermediate district 11 membership, for the subsequent state fiscal year will be greater 12 than 101% of the pupil membership, excluding intermediate dis- 13 trict membership, for the current state fiscal year, then it is 14 the intent of the legislature that the executive budget proposal 15 for the school aid budget for the subsequent state fiscal year 16 include a general fund/general purpose allocation sufficient to 17 support the membership in excess of 101% of the current year 18 pupil membership. 19 (17) Beginning in 1999-2000, for a district that had com- 20 bined state and local revenue per membership pupil in the 1993-94 21 state fiscal year of more than $6,500.00, that had fewer than 7 22 pupils in membership in the 1993-94 state fiscal year, that has 23 at least 1 child educated in the district in the current state 24 fiscal year, and that levies the number of mills of school oper- 25 ating taxes authorized for the district under section 1211 of the 26 revised school code, MCL 380.1211, the district shall be 27 allocated a minimum amount of combined state and local revenue as 00336'01 16 1 provided under this subsection. The minimum amount of combined 2 state and local revenue for 1999-2000 shall be $67,000.00 plus 3 the district's additional expenses to educate pupils in grades 9 4 to 12 educated in other districts as determined and allowed by 5 the department. Beginning in 2000-2001, the minimum amount of 6 combined state and local revenue under this subsection, before 7 adding the additional expenses, shall increase each fiscal year 8 by the same percentage increase as the percentage increase in the 9 basic foundation allowance from the immediately preceding fiscal 10 year to the current fiscal year. The state portion of the mini- 11 mum amount of combined state and local revenue under this subsec- 12 tion shall be calculated by subtracting from the minimum amount 13 of combined state and local revenue under this subsection the sum 14 of the district's local school operating revenue and the product 15 of the state portion of the district's foundation allowance times 16 the district's membership. As used in this subsection, 17 "additional expenses" means the district's expenses for tuition 18 or fees, not to exceed $6,500.00 as adjusted each year by an 19 amount equal to the dollar amount of the difference between the 20 basic foundation allowance for the current state fiscal year and 21 $5,000.00, plus a room and board stipend not to exceed $10.00 per 22 school day for each pupil in grades 9 to 12 educated in another 23 district, as approved by the department. However, beginning in 24 2002-2003, the $6,500.00 amount prescribed in this subsection 25 shall be adjusted each year by an amount equal to the dollar 26 amount of the difference between the basic foundation allowance 27 for the current state fiscal year and $5,000.00, minus $200.00. 00336'01 17 1 (18) For a district in which 7.75 mills levied in 1992 for 2 school operating purposes in the 1992-93 school year were not 3 renewed in 1993 for school operating purposes in the 1993-94 4 school year, the district's combined state and local revenue per 5 membership pupil shall be recalculated as if that millage reduc- 6 tion did not occur and, beginning in 2000-2001, the district's 7 foundation allowance shall be calculated as if its 1994-95 foun- 8 dation allowance had been calculated using that recalculated 9 1993-94 combined state and local revenue per membership pupil as 10 a base. A district is not entitled to any retroactive payments 11 for fiscal years before 2000-2001 due to this subsection. 12 (19) Beginning in 2000-2001, payments to districts, univer- 13 sity schools, or public school academies shall not be made under 14 this section. Rather, the calculations under this section shall 15 be used to determine the amount of state payments under section 16 22b. 17 (20) From the allocation in subsection (2), the department 18 may expend funds to pay for necessary costs associated with 19 resolving matters pending in federal court impacting payments to 20 districts. 21 (21) If an amendment to section 2 of article VIII of the 22 state constitution of 1963 allowing state aid to some or all non- 23 public schools is approved by the voters of this state, each 24 foundation allowance or per pupil payment calculation under this 25 section may be reduced. 26 (22) As used in this section: 00336'01 18 1 (a) "Combined state and local revenue" means the aggregate 2 of the district's state school aid received by or paid on behalf 3 of the district under this section and the district's local 4 school operating revenue. 5 (b) "Combined state and local revenue per membership pupil" 6 means the district's combined state and local revenue divided by 7 the district's membership excluding special education pupils. 8 (c) "Current state fiscal year" means the state fiscal year 9 for which a particular calculation is made. 10 (d) "Homestead" means that term as defined in section 1211 11 of the revised school code, MCL 380.1211. 12 (e) "Immediately preceding state fiscal year" means the 13 state fiscal year immediately preceding the current state fiscal 14 year. 15 (f) "Local school operating revenue" means school operating 16 taxes levied under section 1211 of the revised school code, 17 MCL 380.1211. 18 (g) "Local school operating revenue per membership pupil" 19 means a district's local school operating revenue divided by the 20 district's membership excluding special education pupils. 21 (h) "Membership" means the definition of that term under 22 section 6 as in effect for the particular fiscal year for which a 23 particular calculation is made. 24 (i) "Qualified agricultural property" means that term as 25 defined in section 1211 of the revised school code, 26 MCL 380.1211. 00336'01 19 1 (j) "School operating purposes" means the purposes included 2 in the operation costs of the district as prescribed in 3 sections 7 and 18. 4 (k) "School operating taxes" means local ad valorem property 5 taxes levied under section 1211 of the revised school code, 6 MCL 380.1211, and retained for school operating purposes. 7 (l) "Taxable value per membership pupil" means taxable 8 value, as certified by the department of treasury, for the calen- 9 dar year ending in the current state fiscal year divided by the 10 district's membership excluding special education pupils for the 11 school year ending in the current state fiscal year. 00336'01 Final page. 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