SENATE BILL No. 1155

February 27, 2002, 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 sections 11 and 17b (MCL 388.1611 and 388.1617b),

section 11 as amended by 2001 PA 121 and section 17b as amended

by 2000 PA 297.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

2 2001, there is appropriated for the public schools of this state

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

4 $10,306,721,500.00 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 $385,613,500.00 from the general fund. For the fiscal

7 year ending September 30, 2002, there is appropriated for the

8 public schools of this state and certain other state purposes

9 relating to education the sum of $10,989,699,900.00 from the

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1 state school aid fund established by section 11 of article IX of

2 the state constitution of 1963 and the sum of $205,613,500.00

3 from the general fund. For the fiscal year ending September 30,

4 2003, there is appropriated for the public schools of this state

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

6 $10,985,960,300.00 $__________ from the state school aid fund

7 established by section 11 of article IX of the state constitution

8 of 1963 and the sum of $420,613,500.00 $__________ from the

9 general fund. In addition, available federal funds are appropri-

10 ated for each of those fiscal years.

11 (2) The appropriations under this section shall be allocated

12 as provided in this act. Money appropriated under this section

13 from the general fund and from available federal funds shall be

14 expended to fund the purposes of this act before the expenditure

15 of money appropriated under this section from the state school

16 aid fund. If the maximum amount appropriated under this section

17 from the state school aid fund for a fiscal year exceeds the

18 amount necessary to fully fund allocations under this act from

19 the state school aid fund, that excess amount shall not be

20 expended in that state fiscal year and shall not lapse to the

21 general fund, but instead shall remain in the state school aid

22 fund.

23 (3) If the maximum amount appropriated under this section

24 and section 11f from the state school aid fund for a fiscal year

25 exceeds the amount available for expenditure from the state

26 school aid fund for that fiscal year, payments under sections

27 11f, 11g, 22a, 31d, 51a(2), and 51c shall be made in full and

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1 payments under each of the other sections of this act shall be

2 prorated on an equal percentage basis as necessary to reflect the

3 amount available for expenditure from the state school aid fund

4 for that fiscal year. However, if the department of treasury

5 determines that proration will be required under this subsection,

6 the department of treasury shall notify the state budget direc-

7 tor, and the state budget director shall notify the legislature

8 at least 30 calendar days or 6 legislative session days, which-

9 ever is more, before the department reduces any payments under

10 this act because of the proration. During the 30 calendar day or

11 6 legislative session day period after that notification by the

12 state budget director, the department shall not reduce any pay-

13 ments under this act because of proration under this subsection.

14 The legislature may prevent proration from occurring by, within

15 the 30 calendar day or 6 legislative session day period after

16 that notification by the state budget director, enacting legisla-

17 tion appropriating additional funds from the general fund,

18 countercyclical budget and economic stabilization fund, state

19 school aid fund balance, or another source to fund the amount of

20 the projected shortfall.

21 (4) Except for the allocation under section 26a, any general

22 fund allocations under this act that are not expended by the end

23 of the state fiscal year are transferred to the state school aid

24 fund.

25 Sec. 17b. (1) Not later than October 20, November 20,

26 December 20, January 20, February 20, March 20, April 20, May 20,

27 June 20, July 20, and August 20, the department shall prepare a

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1 statement of the amount to be distributed under this act in the

2 installment to the districts and intermediate districts and

3 deliver the statement to the state treasurer, and the state trea-

4 surer shall pay the installments on each of those dates or, if

5 the date is not a business day, on the immediately preceding

6 business day before that date. Except as otherwise provided in

7 this act, the portion of the district's or intermediate

8 district's state fiscal year entitlement to be included in each

9 installment shall be 1/11. A district or intermediate district

10 shall accrue the payments received in July and August to the

11 school fiscal year ending the immediately preceding June 30.

12 (2) The state treasurer shall make payment under this sec-

13 tion by drawing a warrant in favor of the treasurer of each dis-

14 trict or intermediate district for the amount payable to the dis-

15 trict or intermediate district according to the statement and

16 delivering the warrant to the treasurer of each district or

17 intermediate district, or if the state treasurer receives a writ-

18 ten request by the treasurer of the district or intermediate dis-

19 trict specifying an account, by electronic funds transfer to that

20 account of the amount payable to the district or intermediate

21 district according to the statement. The department may make

22 adjustments in payments made under this section through addi-

23 tional payments when changes in law or errors in computation

24 cause the regularly scheduled payment to be less than the amount

25 to which the district or intermediate district is entitled pursu-

26 ant to this act.

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1 (3) Except as otherwise specified PROVIDED in this act,

2 grant payments under this act shall be paid according to

3 subsection (1).

4 (4) Upon the written request of a district or intermediate

5 district and the submission of proof satisfactory to the depart-

6 ment of a need of a temporary and nonrecurring nature, the super-

7 intendent, with the written concurrence of the state treasurer

8 and the state budget director, may authorize an advance release

9 of funds due a district or intermediate district under this act.

10 Such an AN advance AUTHORIZED UNDER THIS SUBSECTION shall not

11 cause funds to be paid to a district or intermediate district

12 more than 30 days earlier than the established payment date for

13 those funds.

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