SB-0556, As Passed Senate, December 11, 2003                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           SENATE BILL NO. 556                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1979 PA 94, entitled                                              

                                                                                

    "The state school aid act of 1979,"                                         

                                                                                

    by amending sections 11, 11b, 26a, 68, and 108 (MCL 388.1611,               

                                                                                

    388.1611b, 388.1626a, 388.1668, and 388.1708), sections 11, 26a,            

                                                                                

    68, and 108 as amended and section 11b as added by 2003 PA 158.             

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

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

                                                                                

2   2003, there is appropriated for the public schools of this state            

                                                                                

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

                                                                                

4   $11,230,753,400.00 from the state school aid fund established by            

                                                                                

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

                                                                                

6   sum of $198,413,500.00 from the general fund, and the sum of                

                                                                                

7   $700,000.00 from local revenues.  For the fiscal year ending                

                                                                                

8   September 30, 2004, there is appropriated for the public schools            

                                                                                

9   of this state and certain other state purposes relating to                  

                                                                                


                                                                                

1   education the sum of  $10,987,820,500.00  $10,962,387,100.00 from           

                                                                                

2   the state school aid fund established by section 11 of article IX           

                                                                                

3   of the state constitution of 1963 and the sum of                            

                                                                                

4   $282,100,000.00  $327,700,000.00 from the general fund.  For the           

                                                                                

5   fiscal year ending September 30,  2004  2003, from loan                     

                                                                                

6   repayments deposited to the general fund pursuant to section 4 of           

                                                                                

7   1961 PA 112, MCL 388.984, on the settlement date, as determined             

                                                                                

8   under section 9c of 1961 PA 108, MCL 388.959c, there is                     

                                                                                

9   appropriated from the general fund to the state school aid fund             

                                                                                

10  the amount determined by the state treasurer to equal the                   

                                                                                

11  difference between the outstanding amount of general obligation             

                                                                                

12  debt incurred pursuant to 1961 PA 112, MCL 388.981 to 388.985,              

                                                                                

13  and the outstanding amount of loans under 1961 PA 108, MCL                  

                                                                                

14  388.951 to 388.963, as reduced in accordance with section 9c(1)             

                                                                                

15  of 1961 PA 108, MCL 388.959c.  In addition, for the fiscal year             

                                                                                

16  ending September 30,  2004  2003, there is appropriated from the            

                                                                                

17  general fund to the state school aid fund an amount equal to the            

                                                                                

18  amount of all school bond loan fund repayments received by the              

                                                                                

19  state treasurer from June 1, 2003 through December 21, 2003,                

                                                                                

20  determined by the state treasurer not to have been paid from                

                                                                                

21  proceeds of bonds of the school district and representing the               

                                                                                

22  difference between the outstanding amount of general obligation             

                                                                                

23  debt incurred by this state under 1961 PA 112, MCL 388.981 to               

                                                                                

24  388.985, and the outstanding amount of loans under 1961 PA 108,             

                                                                                

25  MCL 388.951 to 388.963, at the time of repayment.  Funds                    

                                                                                

26  appropriated to the state school aid fund from the general fund             

                                                                                

27  from loan repayments received as described in this subsection               


                                                                                

1   shall be expended within 90 days of deposit within the state                

                                                                                

2   school aid fund.  In addition, available federal funds are                  

                                                                                

3   appropriated for each of those fiscal years.                                

                                                                                

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

                                                                                

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

                                                                                

6   from the general fund shall be expended to fund the purposes of             

                                                                                

7   this act before the expenditure of money appropriated under this            

                                                                                

8   section from the state school aid fund.  If the maximum amount              

                                                                                

9   appropriated under this section from the state school aid fund              

                                                                                

10  for a fiscal year exceeds the amount necessary to fully fund                

                                                                                

11  allocations under this act from the state school aid fund, that             

                                                                                

12  excess amount shall not be expended in that state fiscal year and           

                                                                                

13  shall not lapse to the general fund, but instead shall be                   

                                                                                

14  deposited into the school aid stabilization fund created in                 

                                                                                

15  section 11a.                                                                

                                                                                

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

                                                                                

17  from the state school aid fund and the school aid stabilization             

                                                                                

18  fund for a fiscal year exceeds the amount available for                     

                                                                                

19  expenditure from the state school aid fund for that fiscal year,            

                                                                                

20  payments under sections 11f, 11g, 22a, 31d, 51a(2), and 51c shall           

                                                                                

21  be made in full.  In addition, for districts beginning operations           

                                                                                

22  after 1994-95 that qualify for payments under section 22b,                  

                                                                                

23  payments under section 22b shall be made so that the qualifying             

                                                                                

24  districts receive the lesser of an amount equal to the 1994-95              

                                                                                

25  foundation allowance of the district in which the district                  

                                                                                

26  beginning operations after 1994-95 is located or $5,500.00.  The            

                                                                                

27  amount of the payment to be made under section 22b for these                


                                                                                

1   qualifying districts shall be as calculated under section 22a,              

                                                                                

2   with the balance of the payment under section 22b being subject             

                                                                                

3   to the proration otherwise provided under this subsection and               

                                                                                

4   subsection (4).  For  proration before May 1, 2003, state                   

                                                                                

5   payments under each of the other sections of this act from all              

                                                                                

6   state funding sources shall be prorated on an equal percentage              

                                                                                

7   basis as necessary to reflect the amount available for                      

                                                                                

8   expenditure from the state school aid fund for the affected                 

                                                                                

9   fiscal year.  If additional proration is necessary in 2002-2003             

                                                                                

10  after May 1, 2003, and for  any proration necessary after                   

                                                                                

11  2002-2003, state payments under each of the other sections of               

                                                                                

12  this act from all state funding sources shall be prorated in the            

                                                                                

13  manner prescribed in subsection (4) as necessary to reflect the             

                                                                                

14  amount available for expenditure from the state school aid fund             

                                                                                

15  for the affected fiscal year.  However, if the department of                

                                                                                

16  treasury determines that proration will be required under this              

                                                                                

17  subsection, the department of treasury shall notify the state               

                                                                                

18  budget director, and the state budget director shall notify the             

                                                                                

19  legislature at least 30 calendar days or 6 legislative session              

                                                                                

20  days, whichever is more, before the department reduces any                  

                                                                                

21  payments under this act because of the proration.  During the 30            

                                                                                

22  calendar day or 6 legislative session day period after that                 

                                                                                

23  notification by the state budget director, the department shall             

                                                                                

24  not reduce any payments under this act because of proration under           

                                                                                

25  this subsection.  The legislature may prevent proration from                

                                                                                

26  occurring by, within the 30 calendar day or 6 legislative session           

                                                                                

27  day period after that notification by the state budget director,            


                                                                                

1   enacting legislation appropriating additional funds from the                

                                                                                

2   general fund, countercyclical budget and economic stabilization             

                                                                                

3   fund, state school aid fund balance, or another source to fund              

                                                                                

4   the amount of the projected shortfall.                                      

                                                                                

5       (4)  If additional proration is necessary in 2002-2003                      

                                                                                

6   because of the outcome of any revenue estimating conference                 

                                                                                

7   occurring after May 1, 2003 and for  For any proration necessary            

                                                                                

8   after 2002-2003, the department shall calculate the proration in            

                                                                                

9   district and intermediate district payments that is required                

                                                                                

10  under subsection (3) as follows:                                            

                                                                                

11      (a) The department shall calculate the percentage of total                  

                                                                                

12  state school aid allocated under this act for the affected fiscal           

                                                                                

13  year for each of the following:                                             

                                                                                

14                                                                               (i) Districts.                                                                      

                                                                                

15      (ii) Intermediate districts.                                                 

                                                                                

16      (iii) Entities other than districts or intermediate                          

                                                                                

17  districts.                                                                  

                                                                                

18      (b) The department shall recover a percentage of the                        

                                                                                

19  proration amount required under subsection (3) that is equal to             

                                                                                

20  the percentage calculated under subdivision (a)(i) for districts            

                                                                                

21  by reducing payments to districts.  This reduction shall be made            

                                                                                

22  by calculating an equal dollar amount per pupil as necessary to             

                                                                                

23  recover this percentage of the proration amount and reducing each           

                                                                                

24  district's total state school aid from state sources, other than            

                                                                                

25  payments under sections 11f, 11g, 22a, 31d, 51a(2), 51a(12), 51c,           

                                                                                

26  53a, and 56, by that amount.                                                

                                                                                

27      (c) The department shall recover a percentage of the                        


                                                                                

1   proration amount required under subsection (3) that is equal to             

                                                                                

2   the percentage calculated under subdivision (a)(ii) for                      

                                                                                

3   intermediate districts by reducing payments to intermediate                 

                                                                                

4   districts.  This reduction shall be made by reducing the payments           

                                                                                

5   to each intermediate district, other than payments under sections           

                                                                                

6   11f, 11g, 22a, 31d, 51a(2), 51a(12), 51c, 53a, and 56, on an                

                                                                                

7   equal percentage basis.                                                     

                                                                                

8       (d) The department shall recover a percentage of the                        

                                                                                

9   proration amount required under subsection (3) that is equal to             

                                                                                

10  the percentage calculated under subdivision (a)(iii) for entities            

                                                                                

11  other than districts and intermediate districts by reducing                 

                                                                                

12  payments to these entities.  This reduction shall be made by                

                                                                                

13  reducing the payments to each of these entities on an equal                 

                                                                                

14  percentage basis.                                                           

                                                                                

15      (5) For the fiscal year ending September 30, 2003 only, in                  

                                                                                

16  addition to the appropriations under subsection (1), the amount             

                                                                                

17  of $51,000,000.00 is transferred and appropriated from the                  

                                                                                

18  general fund to the state school aid fund.  This transfer                   

                                                                                

19  reflects the estimated net shortfall in state school aid fund               

                                                                                

20  revenue as determined at the May 2003 consensus revenue                     

                                                                                

21  estimating conference and is appropriated to avoid any further              

                                                                                

22  proration under subsection (3) due to that estimated shortfall.             

                                                                                

23      (5)  (6)  Except for the allocation under section 26a, any                  

                                                                                

24  general fund allocations under this act that are not expended by            

                                                                                

25  the end of the state fiscal year are transferred to the state               

                                                                                

26  school aid fund.                                                            

                                                                                

27      Sec. 11b.  From the general fund money appropriated in                      


                                                                                

1   section 11, there is allocated for 2003-2004 the sum of                     

                                                                                

2   $22,000,000.00  $67,600,000.00 for deposit into the school aid             

                                                                                

3   stabilization fund created in section 11a.                                  

                                                                                

4       Sec. 26a.  From the general fund appropriation in section                   

                                                                                

5   11, there is allocated an amount not to exceed  $18,700,000.00              

                                                                                

6   for 2002-2003 and an amount not to exceed $25,260,000.00                    

                                                                                

7   $29,960,000.00 for 2003-2004 to reimburse districts, intermediate           

                                                                                

8   districts, and the state school aid fund pursuant to section 12             

                                                                                

9   of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692,            

                                                                                

10  for taxes levied in  2002 and  2003.  , respectively.  This                 

                                                                                

11  reimbursement shall be made by adjusting payments under section             

                                                                                

12  22a to eligible districts, adjusting payments under section 56,             

                                                                                

13  62, or 81 to eligible intermediate districts, and adjusting the             

                                                                                

14  state school aid fund.  The adjustments shall be made not later             

                                                                                

15  than 60 days after the department of treasury certifies to the              

                                                                                

16  department and to the state budget director that the department             

                                                                                

17  of treasury has received all necessary information to properly              

                                                                                

18  determine the amounts due to each eligible recipient.                       

                                                                                

19      Sec. 68.  (1) From the general fund appropriation in section                

                                                                                

20  11, there is allocated an amount not to exceed  $1,000,000.00               

                                                                                

21  $0.00 for 2003-2004 to be used to implement the Michigan career             

                                                                                

22  preparation system as provided under this section.  These funds             

                                                                                

23  may be used for the purposes of this section and for the purposes           

                                                                                

24  of former section 67 as in effect for 2002-2003.  In order to               

                                                                                

25  receive funds under this section, an eligible education agency              

                                                                                

26  shall be part of an approved regional career preparation plan               

                                                                                

27  under subsection (2) and shall agree to expend the funds required           


                                                                                

1   under this section in accordance with the regional career                   

                                                                                

2   preparation plan.  Funds awarded under this section that are not            

                                                                                

3   expended in accordance with this section may be recovered by the            

                                                                                

4   department.                                                                 

                                                                                

5       (2) In order to receive funding under this section, an                      

                                                                                

6   eligible education agency shall be a part of an approved 3-year             

                                                                                

7   regional career preparation plan that is consistent with the                

                                                                                

8   workforce development board's strategic plan and is as described            

                                                                                

9   in this subsection.  All of the following apply to a regional               

                                                                                

10  career preparation plan:                                                    

                                                                                

11      (a) A 3-year regional career preparation plan shall be                      

                                                                                

12  developed under subdivisions (b), (c), and (d) for all public               

                                                                                

13  education agencies participating as part of a regional career               

                                                                                

14  preparation system within the geographical boundaries of a                  

                                                                                

15  workforce development board, and revised annually.  If an                   

                                                                                

16  intermediate district is located within the geographical                    

                                                                                

17  boundaries of more than 1 workforce development board, the board            

                                                                                

18  of the intermediate district shall choose 1 workforce development           

                                                                                

19  board with which to align and shall notify the department of this           

                                                                                

20  choice not later than October 31, 1997.                                     

                                                                                

21      (b) The regional career preparation plan shall be developed                 

                                                                                

22  by representatives of the education advisory group of each                  

                                                                                

23  workforce development board in accordance with guidelines                   

                                                                                

24  developed under former section 67(5), and in accordance with                

                                                                                

25  subdivisions (d) and (e).  All of the following shall be                    

                                                                                

26  represented on each education advisory group:  workforce                    

                                                                                

27  development board members, other employers, labor, districts,               


                                                                                

1   intermediate districts, postsecondary institutions,                         

                                                                                

2   career/technical educators, parents of public school pupils, and            

                                                                                

3   academic educators.  The representatives of districts,                      

                                                                                

4   intermediate districts, and postsecondary institutions appointed            

                                                                                

5   to the education advisory group by the workforce development                

                                                                                

6   board shall be individuals designated by the board of the                   

                                                                                

7   district, intermediate district, or postsecondary institution.              

                                                                                

8       (c) By majority vote, the education advisory group may                      

                                                                                

9   nominate 1 education representative, who may or may not be a                

                                                                                

10  member of the education advisory group, for appointment to the              

                                                                                

11  workforce development board.  This education representative shall           

                                                                                

12  be in addition to existing education representation on the                  

                                                                                

13  workforce development board.  This education representative shall           

                                                                                

14  meet all workforce development board membership requirements.               

                                                                                

15      (d) The components of the regional career preparation plan                  

                                                                                

16  shall include, but are not limited to, all of the following:                

                                                                                

17                                                                               (i) The roles of districts, intermediate districts, advanced                        

                                                                                

18  career academies, postsecondary institutions, employers, labor              

                                                                                

19  representatives, and others in the career preparation system.               

                                                                                

20      (ii) Programs to be offered, including at least career                       

                                                                                

21  exploration activities, for middle school pupils.                           

                                                                                

22      (iii) Identification of integrated academic and technical                    

                                                                                

23  curriculum, including related professional development training             

                                                                                

24  for teachers.                                                               

                                                                                

25      (iv) Identification of work-based learning opportunities for                 

                                                                                

26  pupils and for teachers and other school personnel.                         

                                                                                

27      (v) Identification of testing and assessments that will be                  


                                                                                

1   used to measure pupil achievement.                                          

                                                                                

2       (vi) Identification of all federal, state, local, and private                

                                                                                

3   sources of funding available for career preparation activities in           

                                                                                

4   the region.                                                                 

                                                                                

5       (e) The education advisory group shall develop a 3-year                     

                                                                                

6   regional career preparation plan consistent with the workforce              

                                                                                

7   development board's strategic plan and submit the plan to the               

                                                                                

8   department for final approval.  The submission to the department            

                                                                                

9   shall also include statements signed by the chair of the                    

                                                                                

10  education advisory group and the chair of the workforce                     

                                                                                

11  development board certifying that the plan has been reviewed by             

                                                                                

12  each entity.  Upon department approval, all eligible education              

                                                                                

13  agencies designated in the regional career preparation plan as              

                                                                                

14  part of the career preparation delivery system are eligible for             

                                                                                

15  funding under this section.                                                 

                                                                                

16      (3) Funding under this section shall be distributed to                      

                                                                                

17  eligible education agencies for allowable costs defined in this             

                                                                                

18  subsection and identified as necessary costs for implementing a             

                                                                                

19  regional career preparation plan, as follows:                               

                                                                                

20      (a) The department shall rank all career clusters, including                

                                                                                

21  career exploration, guidance, and counseling.  Rank determination           

                                                                                

22  will be based on median salary data in career clusters and                  

                                                                                

23  employment opportunity data provided by the council for career              

                                                                                

24  preparation standards.  In addition, rank determination shall be            

                                                                                

25  based on placement data available for prior year graduates of the           

                                                                                

26  programs in the career clusters either in related careers or                

                                                                                

27  postsecondary education.  The procedure for ranking of career               


                                                                                

1   clusters shall be determined by the department.                             

                                                                                

2       (b) Allowable costs to be funded under this section shall be                

                                                                                

3   determined by the department.  Budgets submitted by eligible                

                                                                                

4   education agencies to the department in order to receive funding            

                                                                                

5   shall identify funds and in-kind contributions from the regional            

                                                                                

6   career education plan, excluding funds or in-kind contributions             

                                                                                

7   available as a result of funding received under section 61a,                

                                                                                

8   equal to at least 100% of anticipated funding under this                    

                                                                                

9   section.  Eligible categories of allowable costs are the                    

                                                                                

10  following:                                                                  

                                                                                

11                                                                               (i) Career exploration, guidance, and counseling.                                   

                                                                                

12      (ii) Curriculum development, including integration of                        

                                                                                

13  academic and technical content, and professional development for            

                                                                                

14  teachers directly related to career preparation.                            

                                                                                

15      (iii) Technology and equipment determined to be necessary.                   

                                                                                

16      (iv) Supplies and materials directly related to career                       

                                                                                

17  preparation programs.                                                       

                                                                                

18      (v) Work-based learning expenses for pupils, teachers, and                  

                                                                                

19  counselors.                                                                 

                                                                                

20      (vi) Evaluation, including career competency testing and peer                

                                                                                

21  review.                                                                     

                                                                                

22      (vii) Career placement services.                                             

                                                                                

23      (viii) Student leadership organizations integral to the                       

                                                                                

24  career preparation system.                                                  

                                                                                

25      (ix) Up to 10% of the allocation to an eligible education                    

                                                                                

26  agency may be expended for planning, coordination, direct                   

                                                                                

27  oversight, and accountability for the career preparation system.            


                                                                                

1       (c) The department shall calculate career preparation costs                 

                                                                                

2   per FTE for each career cluster, including career exploration,              

                                                                                

3   guidance, and counseling, by dividing the allowable costs for               

                                                                                

4   each career cluster by the prior year FTE enrollment for each               

                                                                                

5   career cluster.  Distribution to eligible education agencies                

                                                                                

6   shall be the product of 50% of career preparation costs per FTE             

                                                                                

7   times the current year FTE enrollment of each career cluster.               

                                                                                

8   This allocation shall be distributed to eligible education                  

                                                                                

9   agencies in decreasing order of the career cluster ranking                  

                                                                                

10  described in subdivision (a) until the money allocated for grant            

                                                                                

11  recipients in this section is distributed.  Beginning in                    

                                                                                

12  2001-2002, funds shall be distributed to eligible education                 

                                                                                

13  agencies according to workforce development board geographic area           

                                                                                

14  consistent with subsection (2)(a) based upon the proportion of              

                                                                                

15  each workforce development board area's K-12 public school                  

                                                                                

16  membership to the total state K-12 public school membership.                

                                                                                

17      (4) The department shall establish a review procedure for                   

                                                                                

18  assessing the career preparation system in each region.                     

                                                                                

19      (5) An education advisory group is responsible for assuring                 

                                                                                

20  the quality of the career preparation system.  An education                 

                                                                                

21  advisory group shall review the career preparation system in                

                                                                                

22  accordance with evaluation criteria established by the                      

                                                                                

23  department.                                                                 

                                                                                

24      (6) An education advisory group shall report its findings and               

                                                                                

25  recommendations for changes to the participating eligible                   

                                                                                

26  education agencies, the workforce development board, and the                

                                                                                

27  department.                                                                 


                                                                                

1       (7) The next revision of a regional career preparation plan                 

                                                                                

2   shall take into account the findings of the education advisory              

                                                                                

3   group in accordance with evaluation criteria established by the             

                                                                                

4   department in order for the affected education agencies to                  

                                                                                

5   receive continued funding under this section.                               

                                                                                

6       (8) As used in this section:                                                

                                                                                

7       (a) "Advanced career academy" means a career-technical                      

                                                                                

8   education program operated by a district, by an intermediate                

                                                                                

9   district, or by a public school academy, that applies for and               

                                                                                

10  receives advanced career academy designation from the                       

                                                                                

11  department.  To receive this designation, a career-technical                

                                                                                

12  education program shall meet criteria established by the                    

                                                                                

13  department, which criteria shall include at least all of the                

                                                                                

14  following:                                                                  

                                                                                

15                                                                               (i) Operation of programs for those career clusters                                 

                                                                                

16  identified by the department as being eligible for advanced                 

                                                                                

17  career academy status.                                                      

                                                                                

18      (ii) Involvement of employers in the design and                              

                                                                                

19  implementation of career-technical education programs.                      

                                                                                

20      (iii) A fully integrated program of academic and technical                   

                                                                                

21  education available to pupils.                                              

                                                                                

22      (iv) Demonstration of an established career preparation                      

                                                                                

23  system resulting in industry-validated career ladders for                   

                                                                                

24  graduates of the program, including, but not limited to, written            

                                                                                

25  articulation agreements with postsecondary institutions to allow            

                                                                                

26  pupils to receive advanced college placement and credit or                  

                                                                                

27  federally registered apprenticeships, as applicable.                        


                                                                                

1       (b) "Career cluster" means a grouping of occupations from 1                 

                                                                                

2   or more industries that share common skill requirements.                    

                                                                                

3       (c) "Career preparation system" is a system of programs and                 

                                                                                

4   strategies providing pupils with opportunities to prepare for               

                                                                                

5   success in careers of their choice.                                         

                                                                                

6       (d) "Department" means the department of career development.                

                                                                                

7       (e) "Eligible education agency" means a district,                           

                                                                                

8   intermediate district, or advanced career academy that                      

                                                                                

9   participates in an approved regional career preparation plan.               

                                                                                

10      (f) "FTE" means full-time equivalent pupil as determined by                 

                                                                                

11  the department.                                                             

                                                                                

12      (g) "Workforce development board" means a local workforce                   

                                                                                

13  development board established pursuant to the workforce                     

                                                                                

14  investment act of 1998, Public Law 105-220, 112 Stat. 936, and              

                                                                                

15  the school-to-work opportunities act of 1994, Public Law 103-239,           

                                                                                

16  108 Stat. 568, or the equivalent.                                           

                                                                                

17      (h) "Strategic plan" means a department-approved                            

                                                                                

18  comprehensive plan prepared by a workforce development board with           

                                                                                

19  input from local representatives, including the education                   

                                                                                

20  advisory group, that includes career preparation system goals and           

                                                                                

21  objectives for the region.                                                  

                                                                                

22      Sec. 108.  (1) From the general fund appropriation in                       

                                                                                

23  section 11, there is allocated an amount not to exceed                      

                                                                                

24  $1,000,000.00  $0.00 for 2003-2004 for partnership for adult               

                                                                                

25  learning programs authorized under this section.                            

                                                                                

26      (2) To be eligible to be enrolled as a participant in an                    

                                                                                

27  adult learning program funded under this section, a person shall            


                                                                                

1   be at least 16 years of age as of September 1 of the immediately            

                                                                                

2   preceding state fiscal year and shall meet the following, as                

                                                                                

3   applicable:                                                                 

                                                                                

4       (a) If the individual has obtained a high school diploma or a               

                                                                                

5   general education development (G.E.D.) certificate, the                     

                                                                                

6   individual is determined to have English language proficiency,              

                                                                                

7   reading, writing, or math skills below workforce readiness                  

                                                                                

8   standards as determined by tests approved by the department of              

                                                                                

9   career development and is not enrolled in a postsecondary                   

                                                                                

10  institution.  An individual who has obtained a high school                  

                                                                                

11  diploma is not eligible for enrollment in a G.E.D. test                     

                                                                                

12  preparation program funded under this section.                              

                                                                                

13      (b) If the individual has not obtained a high school diploma                

                                                                                

14  or a G.E.D. certificate, the individual has not attended a                  

                                                                                

15  secondary institution for at least 6 months before enrollment in            

                                                                                

16  an adult learning program funded under this section and is not              

                                                                                

17  enrolled in a postsecondary institution.                                    

                                                                                

18      (3) From the allocation under subsection (1), an amount not                 

                                                                                

19  to exceed  $980,000.00  $0.00 is allocated for 2003-2004 to local           

                                                                                

20  workforce development boards for the purpose of providing                   

                                                                                

21  regional adult learning programs.  An application for a grant               

                                                                                

22  under this subsection shall be in the form and manner prescribed            

                                                                                

23  by the department of career development.  Subject to subsections            

                                                                                

24  (4), (5), and (6), the amount allocated to each local workforce             

                                                                                

25  development board shall be as provided in this subsection, except           

                                                                                

26  that an eligible local workforce development board shall not                

                                                                                

27  receive an initial allocation under this section that is less               


                                                                                

1   than $70,000.00.  The maximum amount of a grant awarded to an               

                                                                                

2   eligible local workforce development board shall be the sum of              

                                                                                

3   the following components:                                                   

                                                                                

4       (a) Thirty-four percent of the allocation under this                        

                                                                                

5   subsection multiplied by the proportion of the family                       

                                                                                

6   independence agency caseload in the local workforce development             

                                                                                

7   board region to the statewide family independence agency                    

                                                                                

8   caseload.                                                                   

                                                                                

9       (b) Thirty-three percent of the allocation under this                       

                                                                                

10  subsection multiplied by the proportion of the number of persons            

                                                                                

11  in the local workforce development board region over age 17 who             

                                                                                

12  have not received a high school diploma compared to the statewide           

                                                                                

13  total of persons over age 17 who have not received a high school            

                                                                                

14  diploma.                                                                    

                                                                                

15      (c) Thirty-three percent of the allocation under this                       

                                                                                

16  subsection multiplied by the proportion of the number of persons            

                                                                                

17  in the local workforce development board region over age 17 for             

                                                                                

18  whom English is not a primary language compared to the statewide            

                                                                                

19  total of persons over age 17 for whom English is not a primary              

                                                                                

20  language.                                                                   

                                                                                

21      (4) The amount of a grant to a local workforce development                  

                                                                                

22  board under subsection (3) shall not exceed the cost for adult              

                                                                                

23  learning programs needed in the local workforce development board           

                                                                                

24  region, as documented in a manner approved by the department of             

                                                                                

25  career development.                                                         

                                                                                

26      (5) Not more than 9% of a grant awarded to a local workforce                

                                                                                

27  development board may be used for program administration,                   


                                                                                

1   including contracting for the provision of career and educational           

                                                                                

2   information, counseling services, and assessment services.                  

                                                                                

3       (6) In order to receive funds under this section, a local                   

                                                                                

4   workforce development board shall comply with the following                 

                                                                                

5   requirements in a manner approved by the department of career               

                                                                                

6   development:                                                                

                                                                                

7       (a) The local workforce development board shall document the                

                                                                                

8   need for adult learning programs in the local workforce                     

                                                                                

9   development region.                                                         

                                                                                

10      (b) The local workforce development board shall report                      

                                                                                

11  participant outcomes and other measurements of program                      

                                                                                

12  performance.                                                                

                                                                                

13      (c) The local workforce development board shall develop a                   

                                                                                

14  strategic plan that incorporates adult learning programs in the             

                                                                                

15  region.  A local workforce development board is not eligible for            

                                                                                

16  state funds under this section without a strategic plan approved            

                                                                                

17  by the department of career development.                                    

                                                                                

18      (d) The local workforce development board shall furnish to                  

                                                                                

19  the department of career development, in a form and manner                  

                                                                                

20  determined by the department of career development, the                     

                                                                                

21  information the department of career development determines is              

                                                                                

22  necessary to administer this section.                                       

                                                                                

23      (e) The local workforce development board shall allow access                

                                                                                

24  for the department of career development or its designee to audit           

                                                                                

25  all records related to adult learning programs for which it                 

                                                                                

26  receives funds.  The local workforce development board shall                

                                                                                

27  reimburse this state for all disallowances found in the audit in            


                                                                                

1   a manner determined by the department of career development.                

                                                                                

2       (7) Local workforce development boards shall distribute funds               

                                                                                

3   to eligible adult learning providers as follows:                            

                                                                                

4       (a) Not less than 85% of a grant award shall be used to                     

                                                                                

5   support programs that improve reading, writing, and math skills             

                                                                                

6   to workforce readiness standards; English as a second language              

                                                                                

7   programs; G.E.D. preparation programs; high school completion               

                                                                                

8   programs; or workforce readiness programs in the local workforce            

                                                                                

9   development board region.  These programs may include the                   

                                                                                

10  provision of career and educational information, counseling                 

                                                                                

11  services, and assessment services.                                          

                                                                                

12      (b) Up to 15% of a grant award may be used to support                       

                                                                                

13  workforce readiness programs for employers in the local workforce           

                                                                                

14  development board region as approved by the department of career            

                                                                                

15  development.  Employers or consortia of employers whose employees           

                                                                                

16  participate in these programs must provide matching funds in a              

                                                                                

17  ratio of at least $1.00 of private funds for each $1.00 of state            

                                                                                

18  funds.                                                                      

                                                                                

19      (8) Local workforce development boards shall award                          

                                                                                

20  competitive grants to eligible adult learning providers for the             

                                                                                

21  purpose of providing adult learning programs in the local                   

                                                                                

22  workforce development board region.  Applications shall be in a             

                                                                                

23  form and manner prescribed by the department of career                      

                                                                                

24  development.  In awarding grants, local workforce development               

                                                                                

25  boards shall consider all of the following:                                 

                                                                                

26      (a) The ability of the provider to assess individuals before                

                                                                                

27  enrollment using assessment tools approved by the department of             


                                                                                

1   career development and to develop individual adult learner plans            

                                                                                

2   from those assessments for each participant.                                

                                                                                

3       (b) The ability of the provider to conduct continuing                       

                                                                                

4   assessments in a manner approved by the department of career                

                                                                                

5   development to determine participant progress toward achieving              

                                                                                

6   the goals established in individual adult learner plans.                    

                                                                                

7       (c) The past effectiveness of an eligible provider in                       

                                                                                

8   improving adult literacy skills and the success of an eligible              

                                                                                

9   provider in meeting or exceeding performance measures approved by           

                                                                                

10  the department of career development.                                       

                                                                                

11      (d) Whether the program is of sufficient intensity and                      

                                                                                

12  duration for participants to achieve substantial learning gains.            

                                                                                

13      (e) Whether the program uses research-based instructional                   

                                                                                

14  practices that have proven to be effective in teaching adult                

                                                                                

15  learners.                                                                   

                                                                                

16      (f) Whether the program uses advances in technology, as                     

                                                                                

17  appropriate, including computers.                                           

                                                                                

18      (g) Whether the programs are staffed by well-trained                        

                                                                                

19  teachers, counselors, and administrators.                                   

                                                                                

20      (h) Whether the activities coordinate with other available                  

                                                                                

21  resources in the community, such as schools, postsecondary                  

                                                                                

22  institutions, job training programs, and social service                     

                                                                                

23  agencies.                                                                   

                                                                                

24      (i) Whether the provider offers flexible schedules and                      

                                                                                

25  support services, such as child care and transportation, that               

                                                                                

26  enable participants, including individuals with disabilities or             

                                                                                

27  other special needs, to attend and complete programs.                       


                                                                                

1       (j) Whether the provider offers adequate job and                            

                                                                                

2   postsecondary education counseling services.                                

                                                                                

3       (k) Whether the provider can maintain an information                        

                                                                                

4   management system that has the capacity to report participant               

                                                                                

5   outcomes and monitor program performance against performance                

                                                                                

6   measures approved by the department of career development.                  

                                                                                

7                                                                                (l) Whether the provider will allow access for the local                            

                                                                                

8   workforce development board or its designee to audit all records            

                                                                                

9   related to adult learning programs for which it receives funds.             

                                                                                

10  The adult learning provider shall reimburse the local workforce             

                                                                                

11  development board for all disallowances found in the audit.                 

                                                                                

12      (m) The cost per participant contact hour or unit of                        

                                                                                

13  measurable outcome for each type of adult learning program for              

                                                                                

14  which the provider is applying.                                             

                                                                                

15      (9) Contracts awarded by local workforce development boards                 

                                                                                

16  to adult learning providers shall comply with the priorities                

                                                                                

17  established in a strategic plan approved by the department of               

                                                                                

18  career development.                                                         

                                                                                

19      (10) Adult learning providers that do not agree with the                    

                                                                                

20  decisions of the local workforce development board in issuing or            

                                                                                

21  administering competitive grants may use the grievance procedure            

                                                                                

22  established by the department of career development.                        

                                                                                

23      (11) Local workforce development boards shall reimburse                     

                                                                                

24  eligible adult learning providers under this section as follows:            

                                                                                

25      (a) For a first-time provider, as follows:                                  

                                                                                

26                                                                               (i) Fifty percent of the contract amount shall be allocated                         

                                                                                

27  to eligible adult learning providers based upon enrollment of               


                                                                                

1   participants in adult learning programs.  "Enrollment" means a              

                                                                                

2   participant enrolled in the program who received a preenrollment            

                                                                                

3   assessment using assessment tools approved by the department of             

                                                                                

4   career development and for whom an individual adult learner plan            

                                                                                

5   has been developed.                                                         

                                                                                

6       (ii) Fifty percent of the contract amount shall be allocated                 

                                                                                

7   to eligible adult learning providers based upon the following               

                                                                                

8   performance standards as measured in a manner approved by the               

                                                                                

9   department of career development:                                           

                                                                                

10      (A) The percentage of participants taking both a pretest and                

                                                                                

11  a posttest in English language proficiency, reading, writing, and           

                                                                                

12  math.                                                                       

                                                                                

13      (B) The percentage of participants showing improvement toward               

                                                                                

14  goals identified in their individual adult learner plan.                    

                                                                                

15      (C) The percentage of participants achieving their terminal                 

                                                                                

16  goals as identified in their individual adult learner plan.                 

                                                                                

17      (b) Eligible providers that have provided adult learning                    

                                                                                

18  programs previously under this section shall be reimbursed 100%             

                                                                                

19  of the contract amount based upon the performance standards in              

                                                                                

20  subdivision (a)(ii) as measured in a manner determined by the                

                                                                                

21  department of career development.                                           

                                                                                

22      (c) A provider is eligible for reimbursement for a                          

                                                                                

23  participant in an adult learning program until the participant's            

                                                                                

24  reading, writing, or math proficiency, as applicable, is assessed           

                                                                                

25  at workforce readiness levels or the participant fails to show              

                                                                                

26  progress on 2 successive assessments as determined by the                   

                                                                                

27  department of career development.                                           


                                                                                

1       (d) A provider is eligible for reimbursement for a                          

                                                                                

2   participant in an English as a second language program until the            

                                                                                

3   participant is assessed as having attained basic English                    

                                                                                

4   proficiency or the participant fails to show progress on 2                  

                                                                                

5   successive assessments as determined by the department of career            

                                                                                

6   development.                                                                

                                                                                

7       (e) A provider is eligible for reimbursement for a                          

                                                                                

8   participant in a G.E.D. test preparation program until the                  

                                                                                

9   participant passes the G.E.D. test or the participant fails to              

                                                                                

10  show progress on 2 successive assessments as determined by the              

                                                                                

11  department of career development.                                           

                                                                                

12      (f) A provider is eligible for reimbursement for a                          

                                                                                

13  participant in a high school completion program until the                   

                                                                                

14  participant earns a high school diploma or the participant fails            

                                                                                

15  to show progress as determined by the department of career                  

                                                                                

16  development.                                                                

                                                                                

17      (12) A person who is not eligible to be a participant funded                

                                                                                

18  under this section may receive adult learning services upon the             

                                                                                

19  payment of tuition or fees for service.  The tuition or fee level           

                                                                                

20  shall be determined by the adult learning provider and approved             

                                                                                

21  by the local workforce development board.                                   

                                                                                

22      (13) Adult learning providers may collect refundable deposits               

                                                                                

23  from participants for the use of reusable equipment and supplies            

                                                                                

24  and may provide incentives for program completion.                          

                                                                                

25      (14) A provider shall not be reimbursed under this section                  

                                                                                

26  for an individual who is an inmate in a state correctional                  

                                                                                

27  facility.                                                                   


                                                                                

1       (15) In order to administer the partnership for adult                       

                                                                                

2   learning system under this section, the department of career                

                                                                                

3   development shall do all of the following:                                  

                                                                                

4       (a) Develop and provide guidelines to local workforce                       

                                                                                

5   development boards for the development of strategic plans that              

                                                                                

6   incorporate adult learning.                                                 

                                                                                

7       (b) Develop and provide adult learning minimum program                      

                                                                                

8   performance standards to be implemented by local workforce                  

                                                                                

9   development boards.                                                         

                                                                                

10      (c) Identify approved assessment tools for assessing a                      

                                                                                

11  participant's English language proficiency, reading, math, and              

                                                                                

12  writing skills.                                                             

                                                                                

13      (d) Approve workforce readiness standards for English                       

                                                                                

14  language proficiency, reading, math, and writing skills that can            

                                                                                

15  be measured by nationally recognized assessment tools approved by           

                                                                                

16  the department of career development.                                       

                                                                                

17      (16) Of the amount allocated in subsection (1), up to                       

                                                                                

18  $20,000.00  $0.00 is allocated to the department of career                 

                                                                                

19  development for the development and administration of a                     

                                                                                

20  standardized data collection system.  Local workforce development           

                                                                                

21  boards and adult learning providers receiving funding under this            

                                                                                

22  section shall use the standardized data collection system for               

                                                                                

23  enrolling participants in adult learning programs, tracking                 

                                                                                

24  participant progress, reporting participant outcomes, and                   

                                                                                

25  reporting other performance measures.                                       

                                                                                

26      (17) A provider is not required to use certificated teachers                

                                                                                

27  or certificated counselors to provide instructional and                     


                                                                                

1   counseling services in a program funded under this section.                 

                                                                                

2       (18) As used in this section:                                               

                                                                                

3       (a) "Adult education", for the purposes of complying with                   

                                                                                

4   section 3 of article VIII of the state constitution of 1963,                

                                                                                

5   means a high school pupil receiving educational services in a               

                                                                                

6   nontraditional setting from a district or intermediate district             

                                                                                

7   in order to receive a high school diploma.                                  

                                                                                

8       (b) "Adult learning program" means a program approved by the                

                                                                                

9   department of career development that improves reading, writing,            

                                                                                

10  and math skills to workforce readiness standards; an English as a           

                                                                                

11  second language program; a G.E.D. preparation program; a high               

                                                                                

12  school completion program; or a workforce readiness program that            

                                                                                

13  enhances employment opportunities.                                          

                                                                                

14      (c) "Eligible adult learning provider" means a district,                    

                                                                                

15  public school academy, intermediate district, community college,            

                                                                                

16  university, community-based organization, or other organization             

                                                                                

17  approved by the department of career development that provides              

                                                                                

18  adult learning programs under a contract with a local workforce             

                                                                                

19  development board.                                                          

                                                                                

20      (d) "Participant" means an individual enrolled in an adult                  

                                                                                

21  learning program and receiving services from an eligible adult              

                                                                                

22  learning provider.                                                          

                                                                                

23      (e) "Strategic plan" means a document approved by the                       

                                                                                

24  department of career development that incorporates adult learning           

                                                                                

25  goals and objectives for the local workforce development board              

                                                                                

26  region and is developed jointly by the local workforce                      

                                                                                

27  development board and the education advisory groups.                        


                                                                                

1       (f) "Workforce development board" means a local workforce                   

                                                                                

2   development board established pursuant to the workforce                     

                                                                                

3   investment act of 1998, Public Law 105-220, 112 Stat. 936, and              

                                                                                

4   the school-to-work opportunities act of 1994, Public Law 103-239,           

                                                                                

5   108 Stat. 568, or the equivalent.                                           

                                                                                

6       (g) "Workforce readiness standard" means a proficiency level                

                                                                                

7   approved by the department of career development in English                 

                                                                                

8   language, reading, writing, or mathematics, or any and all of               

                                                                                

9   these, as determined by results from assessments approved for use           

                                                                                

10  by the department of career development.                                    

                                                                                

11      Enacting section 1.  In accordance with section 30 of                       

                                                                                

12  article IX of the state constitution of 1963, total state                   

                                                                                

13  spending in this amendatory act and in 2003 PA 158 and 2002 PA              

                                                                                

14  521 from state sources for fiscal year 2003-2004 is estimated at            

                                                                                

15  $11,290,087,100.00 and state appropriations to be paid to local             

                                                                                

16  units of government for fiscal year 2003-2004 are estimated at              

                                                                                

17  $11,274,332,800.00.