SB-1069, As Passed House, June 9, 2004                                      

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                           HOUSE SUBSTITUTE FOR                                 

                                                                                

                           SENATE BILL NO. 1069                                 

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1979 PA 94, entitled                                              

                                                                                

    "The state school aid act of 1979,"                                         

                                                                                

    by amending sections 3, 4, 6, 11, 11b, 11f, 11g, 11j, 13, 15,               

                                                                                

    18a, 19, 20, 21b, 22a, 22b, 24, 26, 26a, 31a, 31d, 32c, 32d, 32f,           

                                                                                

    32j, 37, 39a, 41, 41a, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62,             

                                                                                

    74, 81, 94a, 98, 98b, 99, 101, 104a, 107, 147, 152, 158b, 163,              

                                                                                

    and 166a (MCL 388.1603, 388.1604, 388.1606, 388.1611, 388.1611b,            

                                                                                

    388.1611f, 388.1611g, 388.1611j, 388.1613, 388.1615, 388.1618a,             

                                                                                

    388.1619, 388.1620, 388.1621b, 388.1622a, 388.1622b, 388.1624,              

                                                                                

    388.1626, 388.1626a, 388.1631a, 388.1631d, 388.1632c, 388.1632d,            

                                                                                

    388.1632f, 388.1632j, 388.1637, 388.1639a, 388.1641, 388.1641a,             

                                                                                

    388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656,             

                                                                                

    388.1657, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1694a,               

                                                                                

    388.1698, 388.1698b, 388.1699, 388.1701, 388.1704a, 388.1707,               

                                                                                

    388.1747, 388.1752, 388.1758b, 388.1763, and 388.1766a), sections           

                                                                                


                                                                                

    3, 6, 11f, 11g, 11j, 19, 20, 22a, 22b, 24, 31a, 31d, 32c, 32d,              

                                                                                

    39a, 41, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 74, 81, 98, 99,           

                                                                                

    101, 104a, 107, 147, and 166a as amended and sections 32j, 41a,             

                                                                                

    and 98b as added by 2003 PA 158, section 4 as amended by 1995 PA            

                                                                                

    130, sections 11, 11b, and 26a as amended by 2003 PA 236, section           

                                                                                

    13 as amended by 1999 PA 119, sections 15 and 18a as amended by             

                                                                                

    1996 PA 300, sections 21b, 152, and 163 as amended by 2000 PA               

                                                                                

    297, section 26 as amended by 1997 PA 93, section 32f as amended            

                                                                                

    by 2002 PA 521, section 37 as amended by 2002 PA 191, section 94a           

                                                                                

    as amended by 2003 PA 180, and section 158b as added by 1994 PA             

                                                                                

    283, and by adding sections 20l, 22d, 32k, 107b, and 146; and to            

                                                                                

    repeal acts and parts of acts.                                              

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3.  (1) "Average daily attendance", for the purposes of                

                                                                                

2   complying with federal law, means 92% of the membership as                  

                                                                                

3   defined in section 6(4).                                                    

                                                                                

4       (2) "Board" means the governing body of a district or public                

                                                                                

5   school academy.                                                             

                                                                                

6       (3) "Center" means the center for educational performance and               

                                                                                

7   information created in section 94a.                                         

                                                                                

8       (4) "Cooperative education program" means a written voluntary               

                                                                                

9   agreement between and among districts to provide certain                    

                                                                                

10  educational programs for pupils in certain groups of districts.             

                                                                                

11  The written agreement shall be approved by all affected districts           

                                                                                

12  at least annually and shall specify the educational programs to             

                                                                                

13  be provided and the estimated number of pupils from each district           

                                                                                

14  who will participate in the educational programs.                           


                                                                                

1       (5) "Department", except in sections  67, 68,  107  , and                   

                                                                                

2   108,  and 107b, means the department of education.                          

                                                                                

3       (6) "District" means a local school district established                    

                                                                                

4   under the revised school code, a local act school district, or,             

                                                                                

5   except in sections 6(4), 6(6), 13, 20, 22a, 23, 31a,  32f,  105,            

                                                                                

6   and 105c, a public school academy.  Except in sections 6(4),                

                                                                                

7   6(6), 13, 20, 22a, 105, and 105c, district also includes a                  

                                                                                

8   university school.                                                          

                                                                                

9       (7) "District of residence", except as otherwise provided in                

                                                                                

10  this subsection, means the district in which a pupil's custodial            

                                                                                

11  parent or parents or legal guardian resides.  For a pupil                   

                                                                                

12  described in section 24b, the pupil's district of residence is              

                                                                                

13  the district in which the pupil enrolls under that section.  For            

                                                                                

14  a pupil described in section 6(4)(d), the pupil's district of               

                                                                                

15  residence shall be considered to be the district or intermediate            

                                                                                

16  district in which the pupil is counted in membership under that             

                                                                                

17  section.  For a pupil under court jurisdiction who is placed                

                                                                                

18  outside the district in which the pupil's custodial parent or               

                                                                                

19  parents or legal guardian resides, the pupil's district of                  

                                                                                

20  residence shall be considered to be the educating district or               

                                                                                

21  educating intermediate district.                                            

                                                                                

22      (8) "District superintendent" means the superintendent of a                 

                                                                                

23  district, the chief administrator of a public school academy, or            

                                                                                

24  the chief administrator of a university school.                             

                                                                                

25      Sec. 4.  (1) "Elementary pupil" means a pupil in membership                 

                                                                                

26  in grades K to 8 in a district not maintaining classes above the            

                                                                                

27  eighth grade or in grades K to 6 in a district maintaining                  


                                                                                

1   classes above the eighth grade.                                             

                                                                                

2       (2) "Extended school year" means an educational program                     

                                                                                

3   conducted by a district in which pupils must be enrolled but not            

                                                                                

4   necessarily in attendance on the pupil membership count day in an           

                                                                                

5   extended year program.  The mandatory days of student instruction           

                                                                                

6   and prescribed clock hours shall be completed by each pupil not             

                                                                                

7   more than 365 calendar days after the pupil's first day of                  

                                                                                

8   classes for the school year prescribed.  The department shall               

                                                                                

9   prescribe pupil, personnel, and other reporting requirements for            

                                                                                

10  the educational program.                                                    

                                                                                

11      (3) "Fiscal year" means the state fiscal year which commences               

                                                                                

12  October 1 and continues through September 30.                               

                                                                                

13      (4) "General educational development testing preparation                    

                                                                                

14  program" means a program that has high school level courses in              

                                                                                

15  writing skills  English language arts, social studies, science,            

                                                                                

16  reading skills,  and mathematics and that prepares a person to             

                                                                                

17  successfully complete the general educational development (GED)             

                                                                                

18  test.                                                                       

                                                                                

19      (5) "High school pupil" means a pupil in membership in grades               

                                                                                

20  7 to 12, except in a district not maintaining grades above the              

                                                                                

21  eighth grade.                                                               

                                                                                

22      Sec. 6.  (1) "Center program" means a program operated by a                 

                                                                                

23  district or intermediate district for special education pupils              

                                                                                

24  from several districts in programs for the autistically impaired,           

                                                                                

25  trainable mentally impaired, severely mentally impaired, severely           

                                                                                

26  multiply impaired, hearing impaired, physically and otherwise               

                                                                                

27  health impaired, and visually impaired.  Programs for emotionally           


                                                                                

1   impaired pupils housed in buildings that do not serve regular               

                                                                                

2   education pupils also qualify.  Unless otherwise approved by the            

                                                                                

3   department, a center program either shall serve all constituent             

                                                                                

4   districts within an intermediate district or shall serve several            

                                                                                

5   districts with less than 50% of the pupils residing in the                  

                                                                                

6   operating district.  In addition, special education center                  

                                                                                

7   program pupils placed part-time in noncenter programs to comply             

                                                                                

8   with the least restrictive environment provisions of section 612            

                                                                                

9   of part B of the individuals with disabilities education act,               

                                                                                

10  title VI of Public Law 91-230,  20  U.S.C.  USC 1412, may be               

                                                                                

11  considered center program pupils for pupil accounting purposes              

                                                                                

12  for the time scheduled in either a center program or a noncenter            

                                                                                

13  program.                                                                    

                                                                                

14      (2) "District and high school graduation rate" means the                    

                                                                                

15  annual completion and pupil dropout rate that is calculated by              

                                                                                

16  the center pursuant to nationally recognized standards.                     

                                                                                

17      (3) "District and high school graduation report" means a                    

                                                                                

18  report of the number of pupils, excluding migrant and adult, in             

                                                                                

19  the district for the immediately preceding school year, adjusted            

                                                                                

20  for those pupils who have transferred into or out of the district           

                                                                                

21  or transferred to alternative programs, who leave high school               

                                                                                

22  with a diploma or other credential of equal status.                         

                                                                                

23      (4) "Membership", except as otherwise provided in this act,                 

                                                                                

24  means for a district, public school academy, university school,             

                                                                                

25  or intermediate district the sum of the product of .8 times the             

                                                                                

26  number of full-time equated pupils in grades K to 12 actually               

                                                                                

27  enrolled and in regular daily attendance on the pupil membership            


                                                                                

1   count day for the current school year, plus the product of .2               

                                                                                

2   times the final audited count from the supplemental count day for           

                                                                                

3   the immediately preceding school year.  All pupil counts used in            

                                                                                

4   this subsection are as determined by the department and                     

                                                                                

5   calculated by adding the number of pupils registered for                    

                                                                                

6   attendance plus pupils received by transfer and minus pupils lost           

                                                                                

7   as defined by rules promulgated by the superintendent, and as               

                                                                                

8   corrected by a subsequent department audit.  The amount of the              

                                                                                

9   foundation allowance for a pupil in membership is determined                

                                                                                

10  under section 20.  In making the calculation of membership, all             

                                                                                

11  of the following, as applicable, apply to determining the                   

                                                                                

12  membership of a district, public school academy, university                 

                                                                                

13  school, or intermediate district:                                           

                                                                                

14      (a) Except as otherwise provided in this subsection, and                    

                                                                                

15  pursuant to subsection (6), a pupil shall be counted in                     

                                                                                

16  membership in the pupil's educating district or districts.  An              

                                                                                

17  individual pupil shall not be counted for more than a total of              

                                                                                

18  1.0 full-time equated membership.                                           

                                                                                

19      (b) If a pupil is educated in a district other than the                     

                                                                                

20  pupil's district of residence, if the pupil is not being educated           

                                                                                

21  as part of a cooperative education program, if the pupil's                  

                                                                                

22  district of residence does not give the educating district its              

                                                                                

23  approval to count the pupil in membership in the educating                  

                                                                                

24  district, and if the pupil is not covered by an exception                   

                                                                                

25  specified in subsection (6) to the requirement that the educating           

                                                                                

26  district must have the approval of the pupil's district of                  

                                                                                

27  residence to count the pupil in membership, the pupil shall not             


                                                                                

1   be counted in membership in any district.                                   

                                                                                

2       (c) A special education pupil educated by the intermediate                  

                                                                                

3   district shall be counted in membership in the intermediate                 

                                                                                

4   district.                                                                   

                                                                                

5       (d) A pupil placed by a court or state agency in an                         

                                                                                

6   on-grounds program of a juvenile detention facility, a child                

                                                                                

7   caring institution, or a mental health institution, or a pupil              

                                                                                

8   funded under section 53a, shall be counted in membership in the             

                                                                                

9   district or intermediate district approved by the department to             

                                                                                

10  operate the program.                                                        

                                                                                

11      (e) A pupil enrolled in the Michigan schools for the deaf and               

                                                                                

12  blind shall be counted in membership in the pupil's intermediate            

                                                                                

13  district of residence.                                                      

                                                                                

14      (f) A pupil enrolled in a vocational education program                      

                                                                                

15  supported by a millage levied over an area larger than a single             

                                                                                

16  district or in an area vocational-technical education program               

                                                                                

17  established pursuant to section 690 of the revised school code,             

                                                                                

18  MCL 380.690, shall be counted only in the pupil's district of               

                                                                                

19  residence.                                                                  

                                                                                

20      (g) A pupil enrolled in a university school shall be counted                

                                                                                

21  in membership in the university school.                                     

                                                                                

22      (h) A pupil enrolled in a public school academy shall be                    

                                                                                

23  counted in membership in the public school academy.                         

                                                                                

24      (i) For a new district, university school, or public school                 

                                                                                

25  academy beginning its operation after December 31, 1994,                    

                                                                                

26  membership for the first 2 full or partial fiscal years of                  

                                                                                

27  operation shall be determined as follows:                                   


                                                                                

1                                                                                (i) If operations begin before the pupil membership count day                       

                                                                                

2   for the fiscal year, membership is the average number of                    

                                                                                

3   full-time equated pupils in grades K to 12 actually enrolled and            

                                                                                

4   in regular daily attendance on the pupil membership count day for           

                                                                                

5   the current school year and on the supplemental count day for the           

                                                                                

6   current school year, as determined by the department and                    

                                                                                

7   calculated by adding the number of pupils registered for                    

                                                                                

8   attendance on the pupil membership count day plus pupils received           

                                                                                

9   by transfer and minus pupils lost as defined by rules promulgated           

                                                                                

10  by the superintendent, and as corrected by a subsequent                     

                                                                                

11  department audit, plus the final audited count from the                     

                                                                                

12  supplemental count day for the current school year, and dividing            

                                                                                

13  that sum by 2.                                                              

                                                                                

14      (ii) If operations begin after the pupil membership count day                

                                                                                

15  for the fiscal year and not later than the supplemental count day           

                                                                                

16  for the fiscal year, membership is the final audited count of the           

                                                                                

17  number of full-time equated pupils in grades K to 12 actually               

                                                                                

18  enrolled and in regular daily attendance on the supplemental                

                                                                                

19  count day for the current school year.                                      

                                                                                

20      (j) If a district is the authorizing body for a public school               

                                                                                

21  academy, then, in the first school year in which pupils are                 

                                                                                

22  counted in membership on the pupil membership count day in the              

                                                                                

23  public school academy, the determination of the district's                  

                                                                                

24  membership shall exclude from the district's pupil count for the            

                                                                                

25  immediately preceding supplemental count day any pupils who are             

                                                                                

26  counted in the public school academy on that first pupil                    

                                                                                

27  membership count day who were also counted in the district on the           


                                                                                

1   immediately preceding supplemental count day.                               

                                                                                

2       (k) In a district, public school academy, university school,                

                                                                                

3   or intermediate district operating an extended school year                  

                                                                                

4   program approved by the superintendent, a pupil enrolled, but not           

                                                                                

5   scheduled to be in regular daily attendance on a pupil membership           

                                                                                

6   count day, shall be counted.                                                

                                                                                

7                                                                                (l) Pupils to be counted in membership shall be not less than                       

                                                                                

8   5 years of age on December 1 and less than 20 years of age on               

                                                                                

9   September 1 of the school year except a special education pupil             

                                                                                

10  who is enrolled and receiving instruction in a special education            

                                                                                

11  program or service approved by the department and not having a              

                                                                                

12  high school diploma who is less than 26 years of age as of                  

                                                                                

13  September 1 of the current school year shall be counted in                  

                                                                                

14  membership.                                                                 

                                                                                

15      (m) An individual who has obtained a high school diploma                    

                                                                                

16  shall not be counted in membership.  An individual who has                  

                                                                                

17  obtained a general  education  educational development (G.E.D.)             

                                                                                

18  certificate shall not be counted in membership.  An individual              

                                                                                

19  participating in a job training program funded under former                 

                                                                                

20  section 107a or a jobs program funded under former section 107b,            

                                                                                

21  administered by the Michigan strategic fund or the department of            

                                                                                

22  career development  labor and economic growth, or participating            

                                                                                

23  in any successor of either of those 2 programs, shall not be                

                                                                                

24  counted in membership.                                                      

                                                                                

25      (n) If a pupil counted in membership in a public school                     

                                                                                

26  academy is also educated by a district or intermediate district             

                                                                                

27  as part of a cooperative education program, the pupil shall be              


                                                                                

1   counted in membership only in the public school academy unless a            

                                                                                

2   written agreement signed by all parties designates the party or             

                                                                                

3   parties in which the pupil shall be counted in membership, and              

                                                                                

4   the instructional time scheduled for the pupil in the district or           

                                                                                

5   intermediate district shall be included in the full-time equated            

                                                                                

6   membership determination under subdivision (q).  However, for               

                                                                                

7   pupils receiving instruction in both a public school academy and            

                                                                                

8   in a district or intermediate district but not as a part of a               

                                                                                

9   cooperative education program, the following apply:                         

                                                                                

10                                                                               (i) If the public school academy provides instruction for at                        

                                                                                

11  least 1/2 of the class hours specified in subdivision (q), the              

                                                                                

12  public school academy shall receive as its prorated share of the            

                                                                                

13  full-time equated membership for each of those pupils an amount             

                                                                                

14  equal to 1 times the product of the hours of instruction the                

                                                                                

15  public school academy provides divided by the number of hours               

                                                                                

16  specified in subdivision (q) for full-time equivalency, and the             

                                                                                

17  remainder of the full-time membership for each of those pupils              

                                                                                

18  shall be allocated to the district or intermediate district                 

                                                                                

19  providing the remainder of the hours of instruction.                        

                                                                                

20      (ii) If the public school academy provides instruction for                   

                                                                                

21  less than 1/2 of the class hours specified in subdivision (q),              

                                                                                

22  the district or intermediate district providing the remainder of            

                                                                                

23  the hours of instruction shall receive as its prorated share of             

                                                                                

24  the full-time equated membership for each of those pupils an                

                                                                                

25  amount equal to 1 times the product of the hours of instruction             

                                                                                

26  the district or intermediate district provides divided by the               

                                                                                

27  number of hours specified in subdivision (q) for full-time                  


                                                                                

1   equivalency, and the remainder of the full-time membership for              

                                                                                

2   each of those pupils shall be allocated to the public school                

                                                                                

3   academy.                                                                    

                                                                                

4       (o) An individual less than 16 years of age as of September 1               

                                                                                

5   of the current school year who is being educated in an                      

                                                                                

6   alternative education program shall not be counted in membership            

                                                                                

7   if there are also adult education participants being educated in            

                                                                                

8   the same program or classroom.                                              

                                                                                

9       (p) The department shall give a uniform interpretation of                   

                                                                                

10  full-time and part-time memberships.                                        

                                                                                

11      (q) The number of class hours used to calculate full-time                   

                                                                                

12  equated memberships shall be consistent with section 101(3).  In            

                                                                                

13  determining full-time equated memberships for pupils who are                

                                                                                

14  enrolled in a postsecondary institution, a pupil shall not be               

                                                                                

15  considered to be less than a full-time equated pupil solely                 

                                                                                

16  because of the effect of his or her postsecondary enrollment,               

                                                                                

17  including necessary travel time, on the number of class hours               

                                                                                

18  provided by the district to the pupil.                                      

                                                                                

19      (r) Full-time equated memberships for pupils in kindergarten                

                                                                                

20  shall be determined by dividing the number of class hours                   

                                                                                

21  scheduled and provided per year per kindergarten pupil by a                 

                                                                                

22  number equal to 1/2 the number used for determining full-time               

                                                                                

23  equated memberships for pupils in grades 1 to 12.                           

                                                                                

24      (s) For a district, university school, or public school                     

                                                                                

25  academy that has pupils enrolled in a grade level that was not              

                                                                                

26  offered by the district, university school, or public school                

                                                                                

27  academy in the immediately preceding school year, the number of             


                                                                                

1   pupils enrolled in that grade level to be counted in membership             

                                                                                

2   is the average of the number of those pupils enrolled and in                

                                                                                

3   regular daily attendance on the pupil membership count day and              

                                                                                

4   the supplemental count day of the current school year, as                   

                                                                                

5   determined by the department.  Membership shall be calculated by            

                                                                                

6   adding the number of pupils registered for attendance in that               

                                                                                

7   grade level on the pupil membership count day plus pupils                   

                                                                                

8   received by transfer and minus pupils lost as defined by rules              

                                                                                

9   promulgated by the superintendent, and as corrected by subsequent           

                                                                                

10  department audit, plus the final audited count from the                     

                                                                                

11  supplemental count day for the current school year, and dividing            

                                                                                

12  that sum by 2.                                                              

                                                                                

13      (t) A pupil enrolled in a cooperative education program may                 

                                                                                

14  be counted in membership in the pupil's district of residence               

                                                                                

15  with the written approval of all parties to the cooperative                 

                                                                                

16  agreement.                                                                  

                                                                                

17      (u) If, as a result of a disciplinary action, a district                    

                                                                                

18  determines through the district's alternative or disciplinary               

                                                                                

19  education program that the best instructional placement for a               

                                                                                

20  pupil is in the pupil's home, if that placement is authorized in            

                                                                                

21  writing by the district superintendent and district alternative             

                                                                                

22  or disciplinary education supervisor, and if the district                   

                                                                                

23  provides appropriate instruction as described in this subdivision           

                                                                                

24  to the pupil at the pupil's home, the district may count the                

                                                                                

25  pupil in membership on a pro rata basis, with the proration based           

                                                                                

26  on the number of hours of instruction the district actually                 

                                                                                

27  provides to the pupil divided by the number of hours specified in           


                                                                                

1   subdivision (q) for full-time equivalency.  For the purposes of             

                                                                                

2   this subdivision, a district shall be considered to be providing            

                                                                                

3   appropriate instruction if all of the following are met:                    

                                                                                

4                                                                                (i) The district provides at least 2 nonconsecutive hours of                        

                                                                                

5   instruction per week to the pupil at the pupil's home under the             

                                                                                

6   supervision of a certificated teacher.                                      

                                                                                

7       (ii) The district provides instructional materials,                          

                                                                                

8   resources, and supplies, except computers, that are comparable to           

                                                                                

9   those otherwise provided in the district's alternative education            

                                                                                

10  program.                                                                    

                                                                                

11      (iii) Course content is comparable to that in the district's                 

                                                                                

12  alternative education program.                                              

                                                                                

13      (iv) Credit earned is awarded to the pupil and placed on the                 

                                                                                

14  pupil's transcript.                                                         

                                                                                

15      (v) A pupil enrolled in an alternative or disciplinary                      

                                                                                

16  education program described in section 25 shall be counted in               

                                                                                

17  membership in the district or public school academy that expelled           

                                                                                

18  the pupil.                                                                  

                                                                                

19      (w) If a pupil was enrolled in a public school academy on the               

                                                                                

20  pupil membership count day, if the public school academy's                  

                                                                                

21  contract with its authorizing body is revoked or the public                 

                                                                                

22  school academy otherwise ceases to operate, and if the pupil                

                                                                                

23  enrolls in a district within 45 days after the pupil membership             

                                                                                

24  count day, the department shall adjust the district's pupil count           

                                                                                

25  for the pupil membership count day to include the pupil in the              

                                                                                

26  count.                                                                      

                                                                                

27      (x) For a public school academy that has been in operation                  


                                                                                

1   for at least 2 years and that suspended operations for at least 1           

                                                                                

2   semester and is resuming operations, membership is the sum of the           

                                                                                

3   product of .8 times the number of full-time equated pupils in               

                                                                                

4   grades K to 12 actually enrolled and in regular daily attendance            

                                                                                

5   on the first pupil membership count day or supplemental count               

                                                                                

6   day, whichever is first, occurring after operations resume, plus            

                                                                                

7   the product of .2 times the final audited count from the most               

                                                                                

8   recent pupil membership count day or supplemental count day that            

                                                                                

9   occurred before suspending operations, as determined by the                 

                                                                                

10  superintendent.                                                             

                                                                                

11      (y) If a district's membership for a particular fiscal year,                

                                                                                

12  as otherwise calculated under this subsection, would be less than           

                                                                                

13  1,550 pupils and the district has 4.5 or fewer pupils per square            

                                                                                

14  mile, as determined by the department, and if the district does             

                                                                                

15  not receive funding under section 22d, the district's membership            

                                                                                

16  shall be considered to be the membership figure calculated under            

                                                                                

17  this subdivision.  If a district educates and counts in its                 

                                                                                

18  membership pupils in grades 9 to 12 who reside in a contiguous              

                                                                                

19  district that does not operate grades 9 to 12 and if 1 or both of           

                                                                                

20  the affected districts request the department to use the                    

                                                                                

21  determination allowed under this sentence, the department shall             

                                                                                

22  include the square mileage of both districts in determining the             

                                                                                

23  number of pupils per square mile for each of the districts for              

                                                                                

24  the purposes of this subdivision.  The membership figure                    

                                                                                

25  calculated under this subdivision is the greater of the                     

                                                                                

26  following:                                                                  

                                                                                

27                                                                               (i) The average of the district's membership for the                                


                                                                                

1   3-fiscal-year period ending with that fiscal year, calculated by            

                                                                                

2   adding the district's actual membership for each of those 3                 

                                                                                

3   fiscal years, as otherwise calculated under this subsection, and            

                                                                                

4   dividing the sum of those 3 membership figures by 3.                        

                                                                                

5       (ii) The district's actual membership for that fiscal year as                

                                                                                

6   otherwise calculated under this subsection.                                 

                                                                                

7       (z) If a public school academy that is not in its first or                  

                                                                                

8   second year of operation closes at the end of a school year and             

                                                                                

9   does not reopen for the next school year, the department shall              

                                                                                

10  adjust the membership count of the district in which a former               

                                                                                

11  pupil of the public school academy enrolls and is in regular                

                                                                                

12  daily attendance for the next school year to ensure that the                

                                                                                

13  district receives the same amount of membership aid for the pupil           

                                                                                

14  as if the pupil were counted in the district on the supplemental            

                                                                                

15  count day of the preceding school year.                                     

                                                                                

16      (5) "Public school academy" means a public school academy,                  

                                                                                

17  urban high school academy, or strict discipline academy operating           

                                                                                

18  under the revised school code.                                              

                                                                                

19      (6) "Pupil" means a person in membership in a public school.                

                                                                                

20  A district must have the approval of the pupil's district of                

                                                                                

21  residence to count the pupil in membership, except approval by              

                                                                                

22  the pupil's district of residence shall not be required for any             

                                                                                

23  of the following:                                                           

                                                                                

24      (a) A nonpublic part-time pupil enrolled in grades 1 to 12 in               

                                                                                

25  accordance with section 166b.                                               

                                                                                

26      (b) A pupil receiving 1/2 or less of his or her instruction                 

                                                                                

27  in a district other than the pupil's district of residence.                 


                                                                                

1       (c) A pupil enrolled in a public school academy or university               

                                                                                

2   school.                                                                     

                                                                                

3       (d) A pupil enrolled in a district other than the pupil's                   

                                                                                

4   district of residence under an intermediate district schools of             

                                                                                

5   choice pilot program as described in section 91a or former                  

                                                                                

6   section 91 if the intermediate district and its constituent                 

                                                                                

7   districts have been exempted from section 105.                              

                                                                                

8       (e) A pupil enrolled in a district other than the pupil's                   

                                                                                

9   district of residence  but within the same intermediate district            

                                                                                

10  if the educating district enrolls nonresident pupils  if the                

                                                                                

11  pupil was enrolled in accordance with section 105 or 105c.                  

                                                                                

12      (f) A pupil enrolled in a district other than the pupil's                   

                                                                                

13  district of residence if the pupil has been continuously enrolled           

                                                                                

14  in the educating district since a school year in which the pupil            

                                                                                

15  enrolled in the educating district under section 105 or 105c and            

                                                                                

16  in which the educating district enrolled nonresident pupils in              

                                                                                

17  accordance with section 105 or 105c.                                        

                                                                                

18      (f)  (g)  A pupil who has made an official written complaint                

                                                                                

19  or whose parent or legal guardian has made an official written              

                                                                                

20  complaint to law enforcement officials and to school officials of           

                                                                                

21  the pupil's district of residence that the pupil has been the               

                                                                                

22  victim of a criminal sexual assault or other serious assault, if            

                                                                                

23  the official complaint either indicates that the assault occurred           

                                                                                

24  at school or that the assault was committed by 1 or more other              

                                                                                

25  pupils enrolled in the school the pupil would otherwise attend in           

                                                                                

26  the district of residence or by an employee of the district of              

                                                                                

27  residence.  A person who intentionally makes a false report of a            


                                                                                

1   crime to law enforcement officials for the purposes of this                 

                                                                                

2   subdivision is subject to section 411a of the Michigan penal                

                                                                                

3   code, 1931 PA 328, MCL 750.411a, which provides criminal                    

                                                                                

4   penalties for that conduct.  As used in this subdivision:                   

                                                                                

5                                                                                (i) "At school" means in a classroom, elsewhere on school                           

                                                                                

6   premises, on a school bus or other school-related vehicle, or at            

                                                                                

7   a school-sponsored activity or event whether or not it is held on           

                                                                                

8   school premises.                                                            

                                                                                

9       (ii) "Serious assault" means an act that constitutes a felony                

                                                                                

10  violation of chapter XI of the Michigan penal code, 1931 PA 328,            

                                                                                

11  MCL 750.81 to 750.90g, or that constitutes an assault and                   

                                                                                

12  infliction of serious or aggravated injury under section 81a of             

                                                                                

13  the Michigan penal code, 1931 PA 328, MCL 750.81a.                          

                                                                                

14      (h) A pupil enrolled in a district located in a contiguous                  

                                                                                

15  intermediate district, as described in section 105c, if the                 

                                                                                

16  educating district enrolls those nonresident pupils in accordance           

                                                                                

17  with section 105c.                                                          

                                                                                

18      (g)  (i)  A pupil whose district of residence changed after                 

                                                                                

19  the pupil membership count day and before the supplemental count            

                                                                                

20  day and who continues to be enrolled on the supplemental count              

                                                                                

21  day as a nonresident in the district in which he or she was                 

                                                                                

22  enrolled as a resident on the pupil membership count day of the             

                                                                                

23  same school year.                                                           

                                                                                

24      (h)  (j)  A pupil enrolled in an alternative education                      

                                                                                

25  program operated by a district other than his or her district of            

                                                                                

26  residence who meets 1 or more of the following:                             

                                                                                

27                                                                               (i) The pupil has been suspended or expelled from his or her                        


                                                                                

1   district of residence for any reason, including, but not limited            

                                                                                

2   to, a suspension or expulsion under section 1310, 1311, or 1311a            

                                                                                

3   of the revised school code, MCL 380.1310, 380.1311, and                     

                                                                                

4   380.1311a.                                                                  

                                                                                

5       (ii) The pupil had previously dropped out of school.                         

                                                                                

6       (iii) The pupil is pregnant or is a parent.                                  

                                                                                

7       (iv) The pupil has been referred to the program by a court.                  

                                                                                

8       (i)  (k)  A pupil enrolled in the Michigan virtual high                     

                                                                                

9   school, for the pupil's enrollment in the Michigan virtual high             

                                                                                

10  school.                                                                     

                                                                                

11      However, if a district that is not a first class district                   

                                                                                

12  educates pupils who reside in a first class district and if the             

                                                                                

13  primary instructional site for those pupils is located within the           

                                                                                

14  boundaries of the first class district, the educating district              

                                                                                

15  must have the approval of the first class district to count those           

                                                                                

16  pupils in membership.  As used in this subsection, "first class             

                                                                                

17  district" means a district organized as a school district of the            

                                                                                

18  first class under the revised school code.                                  

                                                                                

19      (7) "Pupil membership count day" of a district or                           

                                                                                

20  intermediate district means:                                                

                                                                                

21      (a) Except as provided in subdivision (b), the fourth                       

                                                                                

22  Wednesday in September each school year.                                    

                                                                                

23      (b) For a district or intermediate district maintaining                     

                                                                                

24  school during the entire school year, the following days:                   

                                                                                

25                                                                               (i) Fourth Wednesday in July.                                                       

                                                                                

26      (ii) Fourth Wednesday in September.                                          

                                                                                

27      (iii) Second Wednesday in February.                                          


                                                                                

1       (iv) Fourth Wednesday in April.                                              

                                                                                

2       (8) "Pupils in grades K to 12 actually enrolled and in                      

                                                                                

3   regular daily attendance" means pupils in grades K to 12 in                 

                                                                                

4   attendance and receiving instruction in all classes for which               

                                                                                

5   they are enrolled on the pupil membership count day or the                  

                                                                                

6   supplemental count day, as applicable.  A pupil who is absent               

                                                                                

7   from any of the classes in which the pupil is enrolled on the               

                                                                                

8   pupil membership count day or supplemental count day and who does           

                                                                                

9   not attend each of those classes during the 10 consecutive school           

                                                                                

10  days immediately following the pupil membership count day or                

                                                                                

11  supplemental count day, except for a pupil who has been excused             

                                                                                

12  by the district, shall not be counted as 1.0 full-time equated              

                                                                                

13  membership.  In addition, a pupil who is excused from attendance            

                                                                                

14  on the pupil membership count day or supplemental count day and             

                                                                                

15  who fails to attend each of the classes in which the pupil is               

                                                                                

16  enrolled within 30 calendar days after the pupil membership count           

                                                                                

17  day or supplemental count day shall not be counted as 1.0                   

                                                                                

18  full-time equated membership.  Pupils not counted as 1.0                    

                                                                                

19  full-time equated membership due to an absence from a class shall           

                                                                                

20  be counted as a prorated membership for the classes the pupil               

                                                                                

21  attended.  For purposes of this subsection, "class" means a                 

                                                                                

22  period of time in 1 day when pupils and a certificated teacher or           

                                                                                

23  legally qualified substitute teacher are together and instruction           

                                                                                

24  is taking place.                                                            

                                                                                

25      (9) "Rule" means a rule promulgated pursuant to the                         

                                                                                

26  administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to           

                                                                                

27  24.328.                                                                     


                                                                                

1       (10) "The revised school code" means 1976 PA 451, MCL 380.1                 

                                                                                

2   to 380.1852.                                                                

                                                                                

3       (11) "School fiscal year" means a fiscal year that commences                

                                                                                

4   July 1 and continues through June 30.                                       

                                                                                

5       (12) "State board" means the state board of education.                      

                                                                                

6       (13) "Superintendent", unless the context clearly refers to a               

                                                                                

7   district or intermediate district superintendent, means the                 

                                                                                

8   superintendent of public instruction described in section 3 of              

                                                                                

9   article VIII of the state constitution of 1963.                             

                                                                                

10      (14) "Supplemental count day" means the day on which the                    

                                                                                

11  supplemental pupil count is conducted under section 6a.                     

                                                                                

12      (15) "Tuition pupil" means a pupil of school age attending                  

                                                                                

13  school in a district other than the pupil's district of residence           

                                                                                

14  for whom tuition may be charged.  Tuition pupil does not include            

                                                                                

15  a pupil who is a special education pupil or a pupil described in            

                                                                                

16  subsection (6)(d) to  (k)  (i).  A pupil's district of residence            

                                                                                

17  shall not require a high school tuition pupil, as provided under            

                                                                                

18  section 111, to attend another school district after the pupil              

                                                                                

19  has been assigned to a school district.                                     

                                                                                

20      (16) "State school aid fund" means the state school aid fund                

                                                                                

21  established in section 11 of article IX of the state constitution           

                                                                                

22  of 1963.                                                                    

                                                                                

23      (17) "Taxable value" means the taxable value of property as                 

                                                                                

24  determined under section 27a of the general property tax act,               

                                                                                

25  1893 PA 206, MCL 211.27a.                                                   

                                                                                

26      (18) "Textbook" means a book that is selected and approved by               

                                                                                

27  the governing board of a district and that contains a                       


                                                                                

1   presentation of principles of a subject, or that is a literary              

                                                                                

2   work relevant to the study of a subject required for the use of             

                                                                                

3   classroom pupils, or another type of course material that forms             

                                                                                

4   the basis of classroom instruction.                                         

                                                                                

5       (19) "Total state aid" or "total state school aid" means the                

                                                                                

6   total combined amount of all funds due to a district,                       

                                                                                

7   intermediate district, or other entity under all of the                     

                                                                                

8   provisions of this act.                                                     

                                                                                

9       (20) "University school" means an instructional program                     

                                                                                

10  operated by a public university under section 23 that meets the             

                                                                                

11  requirements of section 23.                                                 

                                                                                

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

                                                                                

13  2004  2005, there is appropriated for the public schools of this           

                                                                                

14  state and certain other state purposes relating to education the            

                                                                                

15  sum of  $10,962,387,100.00  $11,038,650,000.00 from the state               

                                                                                

16  school aid fund established by section 11 of article IX of the              

                                                                                

17  state constitution of 1963 and the sum of  $327,700,000.00                  

                                                                                

18  $137,907,700.00 from the general fund.   For the fiscal year                

                                                                                

19  ending September 30, 2003, from loan repayments deposited to the            

                                                                                

20  general fund pursuant to section 4 of 1961 PA 112, MCL 388.984,             

                                                                                

21  on the settlement date, as determined under section 9c of 1961 PA           

                                                                                

22  108, MCL 388.959c, there is appropriated from the general fund to           

                                                                                

23  the state school aid fund the amount determined by the state                

                                                                                

24  treasurer to equal the difference between the outstanding amount            

                                                                                

25  of general obligation debt incurred pursuant to 1961 PA 112, MCL            

                                                                                

26  388.981 to 388.985, and the outstanding amount of loans under               

                                                                                

27  1961 PA 108, MCL 388.951 to 388.963, as reduced in accordance               


                                                                                

1   with section 9c(1) of 1961 PA 108, MCL 388.959c.  In addition,              

                                                                                

2   for the fiscal year ending September 30, 2003, there is                     

                                                                                

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

                                                                                

4   an amount equal to the amount of all school bond loan fund                  

                                                                                

5   repayments received by the state treasurer from June 1, 2003                

                                                                                

6   through December 21, 2003, determined by the state treasurer not            

                                                                                

7   to have been paid from proceeds of bonds of the school district             

                                                                                

8   and representing the difference between the outstanding amount of           

                                                                                

9   general obligation debt incurred by this state under 1961 PA 112,           

                                                                                

10  MCL 388.981 to 388.985, and the outstanding amount of loans under           

                                                                                

11  1961 PA 108, MCL 388.951 to 388.963, at the time of repayment.              

                                                                                

12  Funds appropriated to the state school aid fund from the general            

                                                                                

13  fund from loan repayments received as described in this                     

                                                                                

14  subsection shall be expended within 90 days of deposit within the           

                                                                                

15  state school aid fund.  In addition, available federal funds are            

                                                                                

16  appropriated for  each of those fiscal years  the fiscal year               

                                                                                

17  ending September 30, 2005.                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  this act before the expenditure of money appropriated under this            

                                                                                

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

                                                                                

23  appropriated under this section from the state school aid fund              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

1   deposited into the school aid stabilization fund created in                 

                                                                                

2   section 11a.                                                                

                                                                                

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

                                                                                

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

                                                                                

5   fund for a fiscal year exceeds the amount available for                     

                                                                                

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

                                                                                

7   payments under sections 11f, 11g, 11j, 22a, 26a, 31d, 51a(2),               

                                                                                

8   and  51a(12), 51c, 53a, and 56 shall be made in full.  In                  

                                                                                

9   addition, for districts beginning operations after 1994-95 that             

                                                                                

10  qualify for payments under section 22b, payments under section              

                                                                                

11  22b shall be made so that the qualifying districts receive the              

                                                                                

12  lesser of an amount equal to the 1994-95 foundation allowance of            

                                                                                

13  the district in which the district beginning operations after               

                                                                                

14  1994-95 is located or $5,500.00.  The amount of the payment to be           

                                                                                

15  made under section 22b for these qualifying districts shall be as           

                                                                                

16  calculated under section 22a, with the balance of the payment               

                                                                                

17  under section 22b being subject to the proration otherwise                  

                                                                                

18  provided under this subsection and subsection (4).   For any                

                                                                                

19  Subject to subsection (5), if proration is necessary after                  

                                                                                

20  2002-2003, state payments under each of the other sections of               

                                                                                

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

                                                                                

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

                                                                                

23  amount available for expenditure from the state school aid fund             

                                                                                

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

                                                                                

25  treasury determines that proration will be required under this              

                                                                                

26  subsection, the department of treasury shall notify the state               

                                                                                

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


                                                                                

1   legislature at least 30 calendar days or 6 legislative session              

                                                                                

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

                                                                                

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

                                                                                

4   calendar day or 6 legislative session day period after that                 

                                                                                

5   notification by the state budget director, the department shall             

                                                                                

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

                                                                                

7   this subsection.  The legislature may prevent proration from                

                                                                                

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

                                                                                

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

                                                                                

10  enacting legislation appropriating additional funds from the                

                                                                                

11  general fund, countercyclical budget and economic stabilization             

                                                                                

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

                                                                                

13  the amount of the projected shortfall.                                      

                                                                                

14      (4)  For any  Subject to subsection (5), if proration is                    

                                                                                

15  necessary,  after 2002-2003,  the department shall calculate the            

                                                                                

16  proration in district and intermediate district payments that is            

                                                                                

17  required under subsection (3) as follows:                                   

                                                                                

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

                                                                                

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

                                                                                

20  year for each of the following:                                             

                                                                                

21                                                                               (i) Districts.                                                                      

                                                                                

22      (ii) Intermediate districts.                                                 

                                                                                

23      (iii) Entities other than districts or intermediate                          

                                                                                

24  districts.                                                                  

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   recover this percentage of the proration amount and reducing each           

                                                                                

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

                                                                                

5   payments under sections 11f, 11g, 11j, 22a, 26a, 31d, 51a(2),               

                                                                                

6   51a(12), 51c, and 53a,  and 56,  by that amount.                            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10  intermediate districts by reducing payments to intermediate                 

                                                                                

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

                                                                                

12  to each intermediate district, other than payments under sections           

                                                                                

13  11f, 11g,  22a, 31d,  26a, 51a(2), 51a(12),  51c,  53a, and 56,             

                                                                                

14  on an equal percentage basis.                                               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  other than districts and intermediate districts by reducing                 

                                                                                

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

                                                                                

20  reducing the payments to each of these entities, other than                 

                                                                                

21  payments under sections 11j and 26a, on an equal percentage                 

                                                                                

22  basis.                                                                      

                                                                                

23      (5) Beginning in 2004-2005, if a district has an emergency                  

                                                                                

24  financial manager in place under the local government fiscal                

                                                                                

25  responsibility act, 1990 PA 72, MCL 141.1201 to 141.1291,                   

                                                                                

26  payments to that district are not subject to proration under this           

                                                                                

27  section.                                                                    


                                                                                

1       (6)  (5)  Except for the allocation under section 26a, any                  

                                                                                

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

                                                                                

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

                                                                                

4   school aid fund.                                                            

                                                                                

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

                                                                                

6   section 11, there is allocated for  2003-2004  2004-2005 the sum            

                                                                                

7   of  $67,600,000.00  $4,999,900.00 for deposit into the school aid           

                                                                                

8   stabilization fund created in section 11a.                                  

                                                                                

9       Sec. 11f.  (1) From the appropriations under section 11,                    

                                                                                

10  there is allocated for the purposes of this section an amount not           

                                                                                

11  to exceed  $32,000,000.00  $31,999,900.00 for the fiscal year               

                                                                                

12  ending September 30,  2004  2005 and for each succeeding fiscal             

                                                                                

13  year through the fiscal year ending September 30, 2008.  Payments           

                                                                                

14  under this section will cease after September 30, 2008.  These              

                                                                                

15  allocations are for paying the amounts described in                         

                                                                                

16  subsection (4) to districts and intermediate districts, other               

                                                                                

17  than those receiving a lump sum payment under subsection (2),               

                                                                                

18  that were not plaintiffs in the consolidated cases known as                 

                                                                                

19  Durant v State of Michigan, Michigan supreme court docket                   

                                                                                

20  no. 104458-104492 and that, on or before March 2, 1998, submitted           

                                                                                

21  to the state treasurer a board resolution waiving any right or              

                                                                                

22  interest the district or intermediate district has or may have in           

                                                                                

23  any claim or litigation based on or arising out of any claim or             

                                                                                

24  potential claim through September 30, 1997 that is or was similar           

                                                                                

25  to the claims asserted by the plaintiffs in the consolidated                

                                                                                

26  cases known as Durant v State of Michigan.  The waiver resolution           

                                                                                

27  shall be in form and substance as required under subsection (7).            


                                                                                

1   The state treasurer is authorized to accept such a waiver                   

                                                                                

2   resolution on behalf of this state.  The amounts described in               

                                                                                

3   this subsection represent offers of settlement and compromise of            

                                                                                

4   any claim or claims that were or could have been asserted by                

                                                                                

5   these districts and intermediate districts, as described in this            

                                                                                

6   subsection.                                                                 

                                                                                

7       (2) In addition to any other money appropriated under this                  

                                                                                

8   act, there was appropriated from the state school aid fund an               

                                                                                

9   amount not to exceed $1,700,000.00 for the fiscal year ending               

                                                                                

10  September 30, 1999.  This appropriation was for paying the                  

                                                                                

11  amounts described in this subsection to districts and                       

                                                                                

12  intermediate districts that were not plaintiffs in the                      

                                                                                

13  consolidated cases known as Durant v State of Michigan; that, on            

                                                                                

14  or before March 2, 1998, submitted to the state treasurer a board           

                                                                                

15  resolution waiving any right or interest the district or                    

                                                                                

16  intermediate district had or may have had in any claim or                   

                                                                                

17  litigation based on or arising out of any claim or potential                

                                                                                

18  claim through September 30, 1997 that is or was similar to the              

                                                                                

19  claims asserted by the plaintiffs in the consolidated cases known           

                                                                                

20  as Durant v State of Michigan; and for which the total amount               

                                                                                

21  listed in section 11h and paid under this section was less than             

                                                                                

22  $75,000.00.  For a district or intermediate district qualifying             

                                                                                

23  for a payment under this subsection, the entire amount listed for           

                                                                                

24  the district or intermediate district in section 11h was paid in            

                                                                                

25  a lump sum on November 15, 1998 or on the next business day                 

                                                                                

26  following that date.  The amounts paid under this subsection                

                                                                                

27  represent offers of settlement and compromise of any claim or               


                                                                                

1   claims that were or could have been asserted by these districts             

                                                                                

2   and intermediate districts, as described in this subsection.                

                                                                                

3       (3) This section does not create any obligation or liability                

                                                                                

4   of this state to any district or intermediate district that does            

                                                                                

5   not submit a waiver resolution described in this section.  This             

                                                                                

6   section, any other provision of this act, and section 353e of the           

                                                                                

7   management and budget act, 1984 PA 431, MCL 18.1353e, are not               

                                                                                

8   intended to admit liability or waive any defense that is or would           

                                                                                

9   be available to this state or its agencies, employees, or agents            

                                                                                

10  in any litigation or future litigation with a district or                   

                                                                                

11  intermediate district.                                                      

                                                                                

12      (4) The amount paid each fiscal year to each district or                    

                                                                                

13  intermediate district under subsection (1) shall be 1/20 of the             

                                                                                

14  total amount listed in section 11h for each listed district or              

                                                                                

15  intermediate district that qualifies for a payment under                    

                                                                                

16  subsection (1).  The amounts listed in section 11h and paid in              

                                                                                

17  part under this subsection and in a lump sum under subsection (2)           

                                                                                

18  are offers of settlement and compromise to each of these                    

                                                                                

19  districts or intermediate districts to resolve, in their                    

                                                                                

20  entirety, any claim or claims that these districts or                       

                                                                                

21  intermediate districts may have asserted for violations of                  

                                                                                

22  section 29 of article IX of the state constitution of 1963                  

                                                                                

23  through September 30, 1997, which claims are or were similar to             

                                                                                

24  the claims asserted by the plaintiffs in the consolidated cases             

                                                                                

25  known as Durant v State of Michigan.  This section, any other               

                                                                                

26  provision of this act, and section 353e of the management and               

                                                                                

27  budget act, 1984 PA 431, MCL 18.1353e, shall not be construed to            


                                                                                

1   constitute an admission of liability to the districts or                    

                                                                                

2   intermediate districts listed in section 11h or a waiver of any             

                                                                                

3   defense that is or would have been available to the state or its            

                                                                                

4   agencies, employees, or agents in any litigation or future                  

                                                                                

5   litigation with a district or intermediate district.                        

                                                                                

6       (5) The entire amount of each payment under subsection (1)                  

                                                                                

7   each fiscal year shall be paid on November 15 of the applicable             

                                                                                

8   fiscal year or on the next business day following that date.                

                                                                                

9       (6) Funds paid to a district or intermediate district under                 

                                                                                

10  this section shall be used only for textbooks, electronic                   

                                                                                

11  instructional material, software, technology, infrastructure or             

                                                                                

12  infrastructure improvements, school buses, school security,                 

                                                                                

13  training for technology, or to pay debt service on voter-approved           

                                                                                

14  bonds issued by the district or intermediate district before the            

                                                                                

15  effective date of this section.  For intermediate districts only,           

                                                                                

16  funds paid under this section may also be used for other                    

                                                                                

17  nonrecurring instructional expenditures including, but not                  

                                                                                

18  limited to, nonrecurring instructional expenditures for                     

                                                                                

19  vocational education, or for debt service for acquisition of                

                                                                                

20  technology for academic support services.  Funds received by an             

                                                                                

21  intermediate district under this section may be used for projects           

                                                                                

22  conducted for the benefit of its constituent districts at the               

                                                                                

23  discretion of the intermediate board.  To the extent payments               

                                                                                

24  under this section are used by a district or intermediate                   

                                                                                

25  district to pay debt service on debt payable from millage                   

                                                                                

26  revenues, and to the extent permitted by law, the district or               

                                                                                

27  intermediate district may make a corresponding reduction in the             


                                                                                

1   number of mills levied for that debt service.                               

                                                                                

2       (7) The resolution to be adopted and submitted by a district                

                                                                                

3   or intermediate district under this section and section 11g shall           

                                                                                

4   read as follows:                                                            

                                                                                

5       "Whereas, the board of ____________________ (name of district               

                                                                                

6   or intermediate district) desires to settle and compromise, in              

                                                                                

7   their entirety, any claim or claims that the district (or                   

                                                                                

8   intermediate district) has or had for violations of section 29 of           

                                                                                

9   article IX of the state constitution of 1963, which claim or                

                                                                                

10  claims are or were similar to the claims asserted by the                    

                                                                                

11  plaintiffs in the consolidated cases known as Durant v State of             

                                                                                

12  Michigan, Michigan supreme court docket no. 104458-104492.                  

                                                                                

13      Whereas, the district (or intermediate district) agrees to                  

                                                                                

14  settle and compromise these claims for the consideration                    

                                                                                

15  described in sections 11f and 11g of the state school aid act of            

                                                                                

16  1979, 1979 PA 94, MCL 388.1611f and 388.1611g, and in the amount            

                                                                                

17  specified for the district (or intermediate district) in                    

                                                                                

18  section 11h of the state school aid act of 1979, 1979 PA 94,                

                                                                                

19  MCL 388.1611h.                                                              

                                                                                

20      Whereas, the board of _______________ (name of district or                  

                                                                                

21  intermediate district) is authorized to adopt this resolution.              

                                                                                

22      Now, therefore, be it resolved as follows:                                  

                                                                                

23                                                                               1.  The board of ____________________ (name of district or                          

                                                                                

24  intermediate district) waives any right or interest it may have             

                                                                                

25  in any claim or potential claim through September 30, 1997                  

                                                                                

26  relating to the amount of funding the district or intermediate              

                                                                                

27  district is, or may have been, entitled to receive under the                


                                                                                

1   state school aid act of 1979, 1979 PA 94, MCL 388.1601 to                   

                                                                                

2   388.1772, or any other source of state funding, by reason of the            

                                                                                

3   application of section 29 of article IX of the state constitution           

                                                                                

4   of 1963, which claims or potential claims are or were similar to            

                                                                                

5   the claims asserted by the plaintiffs in the consolidated cases             

                                                                                

6   known as Durant v State of Michigan, Michigan supreme court                 

                                                                                

7   docket no. 104458-104492.                                                   

                                                                                

8                                                                                2.  The board of ____________________ (name of district or                          

                                                                                

9   intermediate district) directs its secretary to submit a                    

                                                                                

10  certified copy of this resolution to the state treasurer no later           

                                                                                

11  than 5 p.m. eastern standard time on March 2, 1998, and agrees              

                                                                                

12  that it will not take any action to amend or rescind this                   

                                                                                

13  resolution.                                                                 

                                                                                

14                                                                               3.  The board of ____________________ (name of district or                          

                                                                                

15  intermediate district) expressly agrees and understands that, if            

                                                                                

16  it takes any action to amend or rescind this resolution, the                

                                                                                

17  state, its agencies, employees, and agents shall have available             

                                                                                

18  to them any privilege, immunity, and/or defense that would                  

                                                                                

19  otherwise have been available had the claims or potential claims            

                                                                                

20  been actually litigated in any forum.                                       

                                                                                

21                                                                               4.  This resolution is contingent on continued payments by                          

                                                                                

22  the state each fiscal year as determined under sections 11f and             

                                                                                

23  11g of the state school aid act of 1979, 1979 PA 94,                        

                                                                                

24  MCL 388.1611f and 388.1611g.  However, this resolution shall be             

                                                                                

25  an irrevocable waiver of any claim to amounts actually received             

                                                                                

26  by the school district or intermediate school district under                

                                                                                

27  sections 11f and 11g of the state school aid act of 1979.".                 


                                                                                

1       Sec. 11g.  (1) From the general fund appropriation in                       

                                                                                

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

                                                                                

3   $141,000.00 each fiscal year for the fiscal year ending                    

                                                                                

4   September 30, 2003, for the fiscal year ending September 30,                

                                                                                

5   2004, and  $140,900.00 for the fiscal year ending September 30,             

                                                                                

6   2005.  There is allocated an amount not to exceed                           

                                                                                

7   $34,200,000.00  $35,000,000.00 for each succeeding fiscal year             

                                                                                

8   through the fiscal year ending September 30, 2013.  Payments                

                                                                                

9   under this section will cease after September 30, 2013.  These              

                                                                                

10  allocations are for paying the amounts described in                         

                                                                                

11  subsection (3) to districts and intermediate districts, other               

                                                                                

12  than those receiving a lump sum payment under section 11f(2),               

                                                                                

13  that were not plaintiffs in the consolidated cases known as                 

                                                                                

14  Durant v State of Michigan, Michigan supreme court docket                   

                                                                                

15  no. 104458-104492 and that, on or before March 2, 1998, submitted           

                                                                                

16  to the state treasurer a waiver resolution described in section             

                                                                                

17  11f.  The amounts paid under this section represent offers of               

                                                                                

18  settlement and compromise of any claim or claims that were or               

                                                                                

19  could have been asserted by these districts and intermediate                

                                                                                

20  districts, as described in this section.                                    

                                                                                

21      (2) This section does not create any obligation or liability                

                                                                                

22  of this state to any district or intermediate district that does            

                                                                                

23  not submit a waiver resolution described in section 11f.  This              

                                                                                

24  section, any other provision of this act, and section 353e of the           

                                                                                

25  management and budget act, 1984 PA 431, MCL 18.1353e, are not               

                                                                                

26  intended to admit liability or waive any defense that is or would           

                                                                                

27  be available to this state or its agencies, employees, or agents            


                                                                                

1   in any litigation or future litigation with a district or                   

                                                                                

2   intermediate district regarding these claims or potential                   

                                                                                

3   claims.                                                                     

                                                                                

4       (3) The amount paid each fiscal year to each district or                    

                                                                                

5   intermediate district under this section shall be the sum of the            

                                                                                

6   following:                                                                  

                                                                                

7       (a) 1/30 of the total amount listed in section 11h for the                  

                                                                                

8   district or intermediate district.                                          

                                                                                

9       (b) If the district or intermediate district borrows money                  

                                                                                

10  and issues bonds under section 11i, an additional amount in each            

                                                                                

11  fiscal year calculated by the department of treasury that, when             

                                                                                

12  added to the amount described in subdivision (a), will cause the            

                                                                                

13  net present value as of November 15, 1998 of the total of the 15            

                                                                                

14  annual payments made to the district or intermediate district               

                                                                                

15  under this section, discounted at a rate as determined by the               

                                                                                

16  state treasurer, to equal the amount of the bonds issued by that            

                                                                                

17  district or intermediate district under section 11i and that will           

                                                                                

18  result in the total payments made to all districts and                      

                                                                                

19  intermediate districts in each fiscal year under this section               

                                                                                

20  being no more than the amount appropriated under this section in            

                                                                                

21  each fiscal year.                                                           

                                                                                

22      (4) The entire amount of each payment under this section each               

                                                                                

23  fiscal year shall be paid on May 15 of the applicable fiscal year           

                                                                                

24  or on the next business day following that date.  If a district             

                                                                                

25  or intermediate district borrows money and issues bonds under               

                                                                                

26  section 11i, the district or intermediate district shall use                

                                                                                

27  funds received under this section to pay debt service on bonds              


                                                                                

1   issued under section 11i.  If a district or intermediate district           

                                                                                

2   does not borrow money and issue bonds under section 11i, the                

                                                                                

3   district or intermediate district shall use funds received under            

                                                                                

4   this section only for the following purposes, in the following              

                                                                                

5   order of priority:                                                          

                                                                                

6       (a) First, to pay debt service on voter-approved bonds issued               

                                                                                

7   by the district or intermediate district before the effective               

                                                                                

8   date of this section.                                                       

                                                                                

9       (b) Second, to pay debt service on other limited tax                        

                                                                                

10  obligations.                                                                

                                                                                

11      (c) Third, for deposit into a sinking fund established by the               

                                                                                

12  district or intermediate district under the revised school code.            

                                                                                

13      (5) To the extent payments under this section are used by a                 

                                                                                

14  district or intermediate district to pay debt service on debt               

                                                                                

15  payable from millage revenues, and to the extent permitted by               

                                                                                

16  law, the district or intermediate district may make a                       

                                                                                

17  corresponding reduction in the number of mills levied for debt              

                                                                                

18  service.                                                                    

                                                                                

19      (6) A district or intermediate district may pledge or assign                

                                                                                

20  payments under this section as security for bonds issued under              

                                                                                

21  section 11i, but shall not otherwise pledge or assign payments              

                                                                                

22  under this section.                                                         

                                                                                

23      Sec. 11j.  From the appropriation in section 11, there is                   

                                                                                

24  allocated an amount not to exceed  $28,300,000.00  $41,099,900.00           

                                                                                

25  for  2003-2004  2004-2005 for payments to the school loan bond              

                                                                                

26  redemption fund in the department of treasury on behalf of                  

                                                                                

27  districts and intermediate districts.                                       


                                                                                

1       Sec. 13.  Except as otherwise provided in this act, the                     

                                                                                

2   apportionments and limitations of the apportionments made under             

                                                                                

3   this act shall be made on the membership and number of teachers             

                                                                                

4   and other professionals approved by the superintendent employed             

                                                                                

5   as of the pupil membership count day of each year and on the                

                                                                                

6   taxable value and the operating millage of each district for the            

                                                                                

7   calendar year.  In addition, a district maintaining school during           

                                                                                

8   the entire year, as provided in section 1561 of the revised                 

                                                                                

9   school code, MCL 380.1561, shall count memberships and  teachers            

                                                                                

10  educational personnel pursuant to rules promulgated by the                  

                                                                                

11  superintendent and shall report to the center as required by                

                                                                                

12  state and federal law.                                                      

                                                                                

13      Sec. 15.  (1) If a district or intermediate district fails                  

                                                                                

14  to receive its proper apportionment, the department, upon                   

                                                                                

15  satisfactory proof that the district or intermediate district was           

                                                                                

16  entitled justly, shall apportion the deficiency in the  remaining           

                                                                                

17  apportionments  next apportionment.  Subject to subsections (2)             

                                                                                

18  and (3), if a district or intermediate district has received more           

                                                                                

19  than its proper apportionment, the department, upon satisfactory            

                                                                                

20  proof, shall deduct the excess in the  remaining apportionments             

                                                                                

21  next apportionment.  Notwithstanding any other provision in this            

                                                                                

22  act, state aid overpayments to a district, other than                       

                                                                                

23  overpayments in payments for special education or special                   

                                                                                

24  education transportation, may be recovered from any payment made            

                                                                                

25  under this act other than a special education or special                    

                                                                                

26  education transportation payment.  State aid overpayments made in           

                                                                                

27  special education or special education transportation payments              


                                                                                

1   may be recovered from subsequent special education or special               

                                                                                

2   education transportation payments.                                          

                                                                                

3       (2) If the result of an audit conducted by or for the                       

                                                                                

4   department affects the current fiscal year membership, affected             

                                                                                

5   payments shall be adjusted in the current fiscal year.  A                   

                                                                                

6   deduction due to an adjustment made as a result of an audit                 

                                                                                

7   conducted by or for the department, or as a result of information           

                                                                                

8   obtained by the department from the district, an intermediate               

                                                                                

9   district, the department of treasury, or the office of auditor              

                                                                                

10  general, shall be deducted from the district's apportionments               

                                                                                

11  within the next fiscal year after the fiscal year in which the              

                                                                                

12  adjustment is finalized.  At the request of the district and upon           

                                                                                

13  the district presenting evidence satisfactory to the department             

                                                                                

14  of the hardship, the department may grant up to an additional 4             

                                                                                

15  years for the adjustment if the district would otherwise                    

                                                                                

16  experience a significant hardship.                                          

                                                                                

17      (3) If, because of the receipt of new or updated data, the                  

                                                                                

18  department determines during a fiscal year that the amount paid             

                                                                                

19  to a district or intermediate district under this act for a prior           

                                                                                

20  fiscal year was incorrect under the law in effect for that year,            

                                                                                

21  the department may make the appropriate deduction or payment in             

                                                                                

22  the district's or intermediate district's allocation for the                

                                                                                

23  fiscal year in which the determination is made.  The deduction or           

                                                                                

24  payment shall be calculated according to the law in effect in the           

                                                                                

25  fiscal year in which the improper amount was paid.                          

                                                                                

26      (4) Expenditures made by the department under this act that                 

                                                                                

27  are caused by the write-off of prior year accruals may be funded            


                                                                                

1   by revenue from the write-off of prior year accruals.                       

                                                                                

2       Sec. 18a.  Grant funds awarded and allotted to a district,                  

                                                                                

3   or  intermediate district, or other entity, unless otherwise               

                                                                                

4   specified in this act, shall be expended by the grant recipient             

                                                                                

5   before the end of the school fiscal year immediately following              

                                                                                

6   the fiscal year in which the funds are received.  If a grant                

                                                                                

7   recipient does not expend the funds received under this act                 

                                                                                

8   before the end of the fiscal year in which the funds are                    

                                                                                

9   received, the grant recipient shall submit a report to the                  

                                                                                

10  department not later than November 1 after the fiscal year in               

                                                                                

11  which the funds are received indicating whether it expects to               

                                                                                

12  expend those funds during the fiscal year in which the report is            

                                                                                

13  submitted.  A recipient of a grant shall return any unexpended              

                                                                                

14  grant funds to the department in the manner prescribed by the               

                                                                                

15  department not later than September 30 after the fiscal year in             

                                                                                

16  which the funds are received.                                               

                                                                                

17      Sec. 19.  (1) A district shall comply with any requirements                 

                                                                                

18  of sections 1204a, 1277, 1278, and 1280 of the revised school               

                                                                                

19  code, MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly             

                                                                                

20  referred to as "public act 25 of 1990" that are not also required           

                                                                                

21  by the no child left behind act of 2001, Public Law 107-110,  115           

                                                                                

22  Stat. 1425,  as determined by the department.                               

                                                                                

23      (2) Each district and intermediate district shall provide to                

                                                                                

24  the department, in a form and manner prescribed by the                      

                                                                                

25  department, information necessary for the development of an                 

                                                                                

26  annual progress report on the required implementation of sections           

                                                                                

27  1204a, 1277, 1278, and 1280 of the revised school code,                     


                                                                                

1   MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly                   

                                                                                

2   referred to as "public act 25 of 1990".                                     

                                                                                

3       (3) A district or intermediate district shall comply with all               

                                                                                

4   applicable reporting requirements specified in state and federal            

                                                                                

5   law.  Data provided to the center, in a form and manner                     

                                                                                

6   prescribed by the center, shall be aggregated and disaggregated             

                                                                                

7   as required by state and federal law.                                       

                                                                                

8       (4) Each district shall furnish to the center not later than                

                                                                                

9   7 weeks after the pupil membership count day, in a manner                   

                                                                                

10  prescribed by the center, the information necessary for the                 

                                                                                

11  preparation of the district and high school graduation report.              

                                                                                

12  The center shall calculate an annual graduation and pupil dropout           

                                                                                

13  rate for each high school, each district, and this state, in                

                                                                                

14  compliance with nationally recognized standards for these                   

                                                                                

15  calculations.  The center shall report all graduation and dropout           

                                                                                

16  rates to the senate and house education committees and                      

                                                                                

17  appropriations committees, the state budget director, and the               

                                                                                

18  department not later than June 1 of each year.                              

                                                                                

19      (5) A district shall furnish to the center, in a manner                     

                                                                                

20  prescribed by the center, information related to educational                

                                                                                

21  personnel as necessary for reporting required by state and                  

                                                                                

22  federal law.                                                                

                                                                                

23      (6) A district shall furnish to the center, in a manner                     

                                                                                

24  prescribed by the center, information related to safety practices           

                                                                                

25  and criminal incidents as necessary for reporting required by               

                                                                                

26  state and federal law.                                                      

                                                                                

27      (7)  (6)  If a district or intermediate district fails to                   


                                                                                

1   meet the requirements of subsection (2), (3), (4),  or  (5), or             

                                                                                

2   (6), the department shall withhold 5% of the total funds for                

                                                                                

3   which the district or intermediate district qualifies under this            

                                                                                

4   act until the district or intermediate district complies with all           

                                                                                

5   of those subsections.  If the district or intermediate district             

                                                                                

6   does not comply with all of those subsections by the end of the             

                                                                                

7   fiscal year, the department shall place the amount withheld in an           

                                                                                

8   escrow account until the district or intermediate district                  

                                                                                

9   complies with all of those subsections.                                     

                                                                                

10      (7) If a school in a district is not accredited under                       

                                                                                

11  section 1280 of the revised school code, MCL 380.1280, or is not            

                                                                                

12  making satisfactory progress toward meeting the standards for               

                                                                                

13  that accreditation, the department shall withhold 5% of the total           

                                                                                

14  funds for which the district qualifies under this act that are              

                                                                                

15  attributable to pupils attending that school.  The department               

                                                                                

16  shall place the amount withheld from a district under this                  

                                                                                

17  subsection in an escrow account and shall not release the funds             

                                                                                

18  to the district until the district submits to the department a              

                                                                                

19  plan for achieving accreditation for each of the district's                 

                                                                                

20  schools that are not accredited under section 1280 of the revised           

                                                                                

21  school code, MCL 380.1280, or are not making satisfactory                   

                                                                                

22  progress toward meeting the standards for that accreditation.               

                                                                                

23      (8) Before publishing a list of schools or districts                        

                                                                                

24  determined to have failed to make adequate yearly progress as               

                                                                                

25  required by the federal no child left behind act of 2001, Public            

                                                                                

26  Law 107-110, 115 Stat. 1425, the department shall allow a school            

                                                                                

27  or district to appeal that determination.  The department shall             


                                                                                

1   consider and act upon the appeal within 30 days after it is                 

                                                                                

2   submitted and shall not publish the list until after all appeals            

                                                                                

3   have been considered and decided.                                           

                                                                                

4       Sec. 20.  (1) For  2002-2003 and for 2003-2004  2004-2005,                  

                                                                                

5   the basic foundation allowance is $6,700.00 per membership                  

                                                                                

6   pupil.                                                                      

                                                                                

7       (2) The amount of each district's foundation allowance shall                

                                                                                

8   be calculated as provided in this section, using a basic                    

                                                                                

9   foundation allowance in the amount specified in subsection (1).             

                                                                                

10      (3) Except as otherwise provided in this section, the amount                

                                                                                

11  of a district's foundation allowance shall be calculated as                 

                                                                                

12  follows, using in all calculations the total amount of the                  

                                                                                

13  district's foundation allowance as calculated before any                    

                                                                                

14  proration:                                                                  

                                                                                

15      (a) Except as otherwise provided in this subsection, for a                  

                                                                                

16  district that in the immediately preceding state fiscal year had            

                                                                                

17  a foundation allowance in an amount at least equal to the amount            

                                                                                

18  of the basic foundation allowance for the immediately preceding             

                                                                                

19  state fiscal year, the district shall receive a foundation                  

                                                                                

20  allowance in an amount equal to the sum of the district's                   

                                                                                

21  foundation allowance for the immediately preceding state fiscal             

                                                                                

22  year plus the dollar amount of the adjustment from the                      

                                                                                

23  immediately preceding state fiscal year to the current state                

                                                                                

24  fiscal year in the basic foundation allowance.  However, for                

                                                                                

25  2002-2003, the foundation allowance for a district under this               

                                                                                

26  subdivision is an amount equal to the sum of the district's                 

                                                                                

27  foundation allowance for the immediately preceding state fiscal             


                                                                                

1   year plus $200.00.                                                          

                                                                                

2       (b) For a district that in the 1994-95 state fiscal year had                

                                                                                

3   a foundation allowance greater than $6,500.00, the district's               

                                                                                

4   foundation allowance is an amount equal to the sum of the                   

                                                                                

5   district's foundation allowance for the immediately preceding               

                                                                                

6   state fiscal year plus the lesser of the increase in the basic              

                                                                                

7   foundation allowance for the current state fiscal year, as                  

                                                                                

8   compared to the immediately preceding state fiscal year, or the             

                                                                                

9   product of the district's foundation allowance for the                      

                                                                                

10  immediately preceding state fiscal year times the percentage                

                                                                                

11  increase in the United States consumer price index in the                   

                                                                                

12  calendar year ending in the immediately preceding fiscal year as            

                                                                                

13  reported by the May revenue estimating conference conducted under           

                                                                                

14  section 367b of the management and budget act, 1984 PA 431,                 

                                                                                

15  MCL 18.1367b.  For 2002-2003, for a district that in the 1994-95            

                                                                                

16  state fiscal year had a foundation allowance greater than                   

                                                                                

17  $6,500.00, the district's foundation allowance is an amount equal           

                                                                                

18  to the sum of the district's foundation allowance for the                   

                                                                                

19  immediately preceding state fiscal year plus the lesser of                  

                                                                                

20  $200.00 or the product of the district's foundation allowance for           

                                                                                

21  the immediately preceding state fiscal year times the percentage            

                                                                                

22  increase in the United States consumer price index in the                   

                                                                                

23  calendar year ending in the immediately preceding fiscal year as            

                                                                                

24  reported by the May revenue estimating conference conducted under           

                                                                                

25  section 367b of the management and budget act, 1984 PA 431,                 

                                                                                

26  MCL 18.1367b.                                                               

                                                                                

27      (c) For a district that has a foundation allowance that is                  


                                                                                

1   not a whole dollar amount, the district's foundation allowance              

                                                                                

2   shall be rounded up to the nearest whole dollar.                            

                                                                                

3       (d) For a district that received a payment under former                     

                                                                                

4   section 22c for 2001-2002, the district's 2001-2002 foundation              

                                                                                

5   allowance shall be considered to have been an amount equal to the           

                                                                                

6   sum of the district's actual 2001-2002 foundation allowance as              

                                                                                

7   otherwise calculated under this section plus the per pupil amount           

                                                                                

8   of the district's equity payment for 2001-2002 under former                 

                                                                                

9   section 22c.                                                                

                                                                                

10      (4) Except as otherwise provided in this subsection, the                    

                                                                                

11  state portion of a district's foundation allowance is an amount             

                                                                                

12  equal to the district's foundation allowance or $6,500.00,                  

                                                                                

13  whichever is less, minus the difference between the product of              

                                                                                

14  the taxable value per membership pupil of all property in the               

                                                                                

15  district that is not a principal residence or qualified                     

                                                                                

16  agricultural property times the lesser of 18 mills or the number            

                                                                                

17  of mills of school operating taxes levied by the district in                

                                                                                

18  1993-94 and the quotient of the ad valorem property tax revenue             

                                                                                

19  of the district captured under 1975 PA 197, MCL 125.1651 to                 

                                                                                

20  125.1681, the tax increment finance authority act, 1980 PA 450,             

                                                                                

21  MCL 125.1801 to 125.1830, the local development financing act,              

                                                                                

22  1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield                    

                                                                                

23  redevelopment financing act, 1996 PA 381, MCL 125.2651 to                   

                                                                                

24  125.2672, divided by the district's membership excluding special            

                                                                                

25  education pupils.  For a district described in subsection (3)(b),           

                                                                                

26  the state portion of the district's foundation allowance is an              

                                                                                

27  amount equal to $6,962.00 plus the difference between the                   


                                                                                

1   district's foundation allowance for the current state fiscal year           

                                                                                

2   and the district's foundation allowance for 1998-99, minus the              

                                                                                

3   difference between the product of the taxable value per                     

                                                                                

4   membership pupil of all property in the district that is not a              

                                                                                

5   principal residence or qualified agricultural property times the            

                                                                                

6   lesser of 18 mills or the number of mills of school operating               

                                                                                

7   taxes levied by the district in 1993-94 and the quotient of the             

                                                                                

8   ad valorem property tax revenue of the district captured under              

                                                                                

9   1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance            

                                                                                

10  authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local             

                                                                                

11  development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,           

                                                                                

12  or the brownfield redevelopment financing act, 1996 PA 381,                 

                                                                                

13  MCL 125.2651 to 125.2672, divided by the district's membership              

                                                                                

14  excluding special education pupils.  For a district that has a              

                                                                                

15  millage reduction required under section 31 of article IX of the            

                                                                                

16  state constitution of 1963, the state portion of the district's             

                                                                                

17  foundation allowance shall be calculated as if that reduction did           

                                                                                

18  not occur.  The $6,500.00 amount prescribed in this subsection              

                                                                                

19  shall be adjusted each year by an amount equal to the dollar                

                                                                                

20  amount of the difference between the basic foundation allowance             

                                                                                

21  for the current state fiscal year and $5,000.00, minus $200.00.             

                                                                                

22      (5) The allocation calculated under this section for a pupil                

                                                                                

23  shall be based on the foundation allowance of the pupil's                   

                                                                                

24  district of residence.  However, for a pupil enrolled in a                  

                                                                                

25  district other than the pupil's district of residence, if the               

                                                                                

26  foundation allowance of the pupil's district of residence has               

                                                                                

27  been adjusted pursuant to subsection (19), the allocation                   


                                                                                

1   calculated under this section shall not include the adjustment              

                                                                                

2   described in subsection (18).  For a pupil enrolled pursuant to             

                                                                                

3   section 105 or 105c in a district other than the pupil's district           

                                                                                

4   of residence, the allocation calculated under this section shall            

                                                                                

5   be based on the lesser of the foundation allowance of the pupil's           

                                                                                

6   district of residence or the foundation allowance of the                    

                                                                                

7   educating district.  For a pupil in membership in a K-5, K-6, or            

                                                                                

8   K-8 district who is enrolled in another district in a grade not             

                                                                                

9   offered by the pupil's district of residence, the allocation                

                                                                                

10  calculated under this section shall be based on the foundation              

                                                                                

11  allowance of the educating district if the educating district's             

                                                                                

12  foundation allowance is greater than the foundation allowance of            

                                                                                

13  the pupil's district of residence.  The calculation under this              

                                                                                

14  subsection shall take into account a district's per pupil                   

                                                                                

15  allocation under section 20j(2).                                            

                                                                                

16      (6) Subject to subsection (7) and section 22b(3) and except                 

                                                                                

17  as otherwise provided in this subsection, for pupils in                     

                                                                                

18  membership, other than special education pupils, in a public                

                                                                                

19  school academy or a university school, the allocation calculated            

                                                                                

20  under this section is an amount per membership pupil other than             

                                                                                

21  special education pupils in the public school academy or                    

                                                                                

22  university school equal to the sum of the local school operating            

                                                                                

23  revenue per membership pupil other than special education pupils            

                                                                                

24  for the district in which the public school academy or university           

                                                                                

25  school is located and the state portion of that district's                  

                                                                                

26  foundation allowance, or the sum of the basic foundation                    

                                                                                

27  allowance under subsection (1) plus $300.00, whichever is less.             


                                                                                

1   Notwithstanding section 101(2), for a public school academy that            

                                                                                

2   begins operations  in 2002-2003 or 2003-2004, as applicable,                

                                                                                

3   after the pupil membership count day, the amount per membership             

                                                                                

4   pupil calculated under this subsection shall be adjusted by                 

                                                                                

5   multiplying that amount per membership pupil by the number of               

                                                                                

6   hours of pupil instruction provided by the public school academy            

                                                                                

7   after it begins operations, as determined by the department,                

                                                                                

8   divided by the minimum number of hours of pupil instruction                 

                                                                                

9   required under section 101(3).  The result of this calculation              

                                                                                

10  shall not exceed the amount per membership pupil otherwise                  

                                                                                

11  calculated under this subsection.                                           

                                                                                

12      (7) If more than 25% of the pupils residing within a district               

                                                                                

13  are in membership in 1 or more public school academies located in           

                                                                                

14  the district, then the amount per membership pupil calculated               

                                                                                

15  under this section for a public school academy located in the               

                                                                                

16  district shall be reduced by an amount equal to the difference              

                                                                                

17  between the product of the taxable value per membership pupil of            

                                                                                

18  all property in the district that is not a principal residence or           

                                                                                

19  qualified agricultural property times the lesser of 18 mills or             

                                                                                

20  the number of mills of school operating taxes levied by the                 

                                                                                

21  district in 1993-94 and the quotient of the ad valorem property             

                                                                                

22  tax revenue of the district captured under 1975 PA 197,                     

                                                                                

23  MCL 125.1651 to 125.1681, the tax increment finance authority               

                                                                                

24  act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development           

                                                                                

25  financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the                

                                                                                

26  brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651           

                                                                                

27  to 125.2672, divided by the district's membership excluding                 


                                                                                

1   special education pupils, in the school fiscal year ending in the           

                                                                                

2   current state fiscal year, calculated as if the resident pupils             

                                                                                

3   in membership in 1 or more public school academies located in the           

                                                                                

4   district were in membership in the district.  In order to receive           

                                                                                

5   state school aid under this act, a district described in this               

                                                                                

6   subsection shall pay to the authorizing body that is the fiscal             

                                                                                

7   agent for a public school academy located in the district for               

                                                                                

8   forwarding to the public school academy an amount equal to that             

                                                                                

9   local school operating revenue per membership pupil for each                

                                                                                

10  resident pupil in membership other than special education pupils            

                                                                                

11  in the public school academy, as determined by the department.              

                                                                                

12      (8) If a district does not receive an amount calculated under               

                                                                                

13  subsection (9); if the number of mills the district may levy on a           

                                                                                

14  principal residence and qualified agricultural property under               

                                                                                

15  section 1211(1) of the revised school code, MCL 380.1211, is 0.5            

                                                                                

16  mills or less; and if the district elects not to levy those                 

                                                                                

17  mills, the district instead shall receive a separate supplemental           

                                                                                

18  amount calculated under this subsection in an amount equal to the           

                                                                                

19  amount the district would have received had it levied those                 

                                                                                

20  mills, as determined by the department of treasury.  A district             

                                                                                

21  shall not receive a separate supplemental amount calculated under           

                                                                                

22  this subsection for a fiscal year unless in the calendar year               

                                                                                

23  ending in the fiscal year the district levies 18 mills or the               

                                                                                

24  number of mills of school operating taxes levied by the district            

                                                                                

25  in 1993, whichever is less, on property that is not a principal             

                                                                                

26  residence or qualified agricultural property.                               

                                                                                

27      (9) For a district that had combined state and local revenue                


                                                                                

1   per membership pupil in the 1993-94 state fiscal year of more               

                                                                                

2   than $6,500.00 and that had fewer than 350 pupils in membership,            

                                                                                

3   if the district elects not to reduce the number of mills from               

                                                                                

4   which a principal residence and qualified agricultural property             

                                                                                

5   are exempt and not to levy school operating taxes on a principal            

                                                                                

6   residence and qualified agricultural property as provided in                

                                                                                

7   section 1211(1) of the revised school code, MCL 380.1211, and not           

                                                                                

8   to levy school operating taxes on all property as provided in               

                                                                                

9   section 1211(2) of the revised school code, MCL 380.1211, there             

                                                                                

10  is calculated under this subsection for 1994-95 and each                    

                                                                                

11  succeeding fiscal year a separate supplemental amount in an                 

                                                                                

12  amount equal to the amount the district would have received per             

                                                                                

13  membership pupil had it levied school operating taxes on a                  

                                                                                

14  principal residence and qualified agricultural property at the              

                                                                                

15  rate authorized for the district under section 1211(1) of the               

                                                                                

16  revised school code, MCL 380.1211, and levied school operating              

                                                                                

17  taxes on all property at the rate authorized for the district               

                                                                                

18  under section 1211(2) of the revised school code, MCL 380.1211,             

                                                                                

19  as determined by the department of treasury.  If in the calendar            

                                                                                

20  year ending in the fiscal year a district does not levy 18 mills            

                                                                                

21  or the number of mills of school operating taxes levied by the              

                                                                                

22  district in 1993, whichever is less, on property that is not a              

                                                                                

23  principal residence or qualified agricultural property, the                 

                                                                                

24  amount calculated under this subsection will be reduced by the              

                                                                                

25  same percentage as the millage actually levied compares to the 18           

                                                                                

26  mills or the number of mills levied in 1993, whichever is less.             

                                                                                

27      (10) Subject to subsection (4), for a district that is formed               


                                                                                

1   or reconfigured after June 1, 2002 by consolidation of 2 or more            

                                                                                

2   districts or by annexation, the resulting district's foundation             

                                                                                

3   allowance under this section beginning after the effective date             

                                                                                

4   of the consolidation or annexation shall be the average of the              

                                                                                

5   foundation allowances of each of the original or affected                   

                                                                                

6   districts, calculated as provided in this section, weighted as to           

                                                                                

7   the percentage of pupils in total membership in the resulting               

                                                                                

8   district who reside in the geographic area of each of the                   

                                                                                

9   original or affected districts.                                             

                                                                                

10      (11) Each fraction used in making calculations under this                   

                                                                                

11  section shall be rounded to the fourth decimal place and the                

                                                                                

12  dollar amount of an increase in the basic foundation allowance              

                                                                                

13  shall be rounded to the nearest whole dollar.                               

                                                                                

14      (12) State payments related to payment of the foundation                    

                                                                                

15  allowance for a special education pupil are not calculated under            

                                                                                

16  this section but are instead calculated under section 51a.                  

                                                                                

17      (13) To assist the legislature in determining the basic                     

                                                                                

18  foundation allowance for the subsequent state fiscal year, each             

                                                                                

19  revenue estimating conference conducted under section 367b of the           

                                                                                

20  management and budget act, 1984 PA 431, MCL 18.1367b, shall                 

                                                                                

21  calculate a pupil membership factor, a revenue adjustment factor,           

                                                                                

22  and an index as follows:                                                    

                                                                                

23      (a) The pupil membership factor shall be computed by dividing               

                                                                                

24  the estimated membership in the school year ending in the current           

                                                                                

25  state fiscal year, excluding intermediate district membership, by           

                                                                                

26  the estimated membership for the school year ending in the                  

                                                                                

27  subsequent state fiscal year, excluding intermediate district               


                                                                                

1   membership.  If a consensus membership factor is not determined             

                                                                                

2   at the revenue estimating conference, the principals of the                 

                                                                                

3   revenue estimating conference shall report their estimates to the           

                                                                                

4   house and senate subcommittees responsible for school aid                   

                                                                                

5   appropriations not later than 7 days after the conclusion of the            

                                                                                

6   revenue conference.                                                         

                                                                                

7       (b) The revenue adjustment factor shall be computed by                      

                                                                                

8   dividing the sum of the estimated total state school aid fund               

                                                                                

9   revenue for the subsequent state fiscal year plus the estimated             

                                                                                

10  total state school aid fund revenue for the current state fiscal            

                                                                                

11  year, adjusted for any change in the rate or base of a tax the              

                                                                                

12  proceeds of which are deposited in that fund and excluding money            

                                                                                

13  transferred into that fund from the countercyclical budget and              

                                                                                

14  economic stabilization fund under section 353e of the management            

                                                                                

15  and budget act, 1984 PA 431, MCL 18.1353e, by the sum of the                

                                                                                

16  estimated total school aid fund revenue for the current state               

                                                                                

17  fiscal year plus the estimated total state school aid fund                  

                                                                                

18  revenue for the immediately preceding state fiscal year, adjusted           

                                                                                

19  for any change in the rate or base of a tax the proceeds of which           

                                                                                

20  are deposited in that fund.  If a consensus revenue factor is not           

                                                                                

21  determined at the revenue estimating conference, the principals             

                                                                                

22  of the revenue estimating conference shall report their estimates           

                                                                                

23  to the house and senate subcommittees responsible for school aid            

                                                                                

24  appropriations not later than 7 days after the conclusion of the            

                                                                                

25  revenue conference.                                                         

                                                                                

26      (c) The index shall be calculated by multiplying the pupil                  

                                                                                

27  membership factor by the revenue adjustment factor.  However, for           


                                                                                

1   2003-2004 only  2004-2005, the index shall be 1.00.  If a                  

                                                                                

2   consensus index is not determined at the revenue estimating                 

                                                                                

3   conference, the principals of the revenue estimating conference             

                                                                                

4   shall report their estimates to the house and senate                        

                                                                                

5   subcommittees responsible for school aid appropriations not later           

                                                                                

6   than 7 days after the conclusion of the revenue conference.                 

                                                                                

7       (14) If the principals at the revenue estimating conference                 

                                                                                

8   reach a consensus on the index described in subsection (13)(c),             

                                                                                

9   the basic foundation allowance for the subsequent state fiscal              

                                                                                

10  year shall be at least the amount of that consensus index                   

                                                                                

11  multiplied by the basic foundation allowance specified in                   

                                                                                

12  subsection (1).                                                             

                                                                                

13      (15) If at the January revenue estimating conference it is                  

                                                                                

14  estimated that pupil membership, excluding intermediate district            

                                                                                

15  membership, for the subsequent state fiscal year will be greater            

                                                                                

16  than 101% of the pupil membership, excluding intermediate                   

                                                                                

17  district membership, for the current state fiscal year, then it             

                                                                                

18  is the intent of the legislature that the executive budget                  

                                                                                

19  proposal for the school aid budget for the subsequent state                 

                                                                                

20  fiscal year include a general fund/general purpose allocation               

                                                                                

21  sufficient to support the membership in excess of 101% of the               

                                                                                

22  current year pupil membership.                                              

                                                                                

23      (16) For a district that had combined state and local revenue               

                                                                                

24  per membership pupil in the 1993-94 state fiscal year of more               

                                                                                

25  than $6,500.00, that had fewer than 7 pupils in membership in the           

                                                                                

26  1993-94 state fiscal year, that has at least 1 child educated in            

                                                                                

27  the district in the current state fiscal year, and that levies              


                                                                                

1   the number of mills of school operating taxes authorized for the            

                                                                                

2   district under section 1211 of the revised school code,                     

                                                                                

3   MCL 380.1211, a minimum amount of combined state and local                  

                                                                                

4   revenue shall be calculated for the district as provided under              

                                                                                

5   this subsection.  The minimum amount of combined state and local            

                                                                                

6   revenue for 1999-2000 shall be $67,000.00 plus the district's               

                                                                                

7   additional expenses to educate pupils in grades 9 to 12 educated            

                                                                                

8   in other districts as determined and allowed by the department.             

                                                                                

9   The minimum amount of combined state and local revenue under this           

                                                                                

10  subsection, before adding the additional expenses, shall increase           

                                                                                

11  each fiscal year by the same percentage increase as the                     

                                                                                

12  percentage increase in the basic foundation allowance from the              

                                                                                

13  immediately preceding fiscal year to the current fiscal year.               

                                                                                

14  The state portion of the minimum amount of combined state and               

                                                                                

15  local revenue under this subsection shall be calculated by                  

                                                                                

16  subtracting from the minimum amount of combined state and local             

                                                                                

17  revenue under this subsection the sum of the district's local               

                                                                                

18  school operating revenue and an amount equal to the product of              

                                                                                

19  the sum of the state portion of the district's foundation                   

                                                                                

20  allowance plus the amount calculated under section 20j times the            

                                                                                

21  district's membership.  As used in this subsection, "additional             

                                                                                

22  expenses" means the district's expenses for tuition or fees, not            

                                                                                

23  to exceed $6,500.00 as adjusted each year by an amount equal to             

                                                                                

24  the dollar amount of the difference between the basic foundation            

                                                                                

25  allowance for the current state fiscal year and $5,000.00, minus            

                                                                                

26  $200.00, plus a room and board stipend not to exceed $10.00 per             

                                                                                

27  school day for each pupil in grades 9 to 12 educated in another             


                                                                                

1   district, as approved by the department.                                    

                                                                                

2       (17) For a district in which 7.75 mills levied in 1992 for                  

                                                                                

3   school operating purposes in the 1992-93 school year were not               

                                                                                

4   renewed in 1993 for school operating purposes in the 1993-94                

                                                                                

5   school year, the district's combined state and local revenue per            

                                                                                

6   membership pupil shall be recalculated as if that millage                   

                                                                                

7   reduction did not occur and the district's foundation allowance             

                                                                                

8   shall be calculated as if its 1994-95 foundation allowance had              

                                                                                

9   been calculated using that recalculated 1993-94 combined state              

                                                                                

10  and local revenue per membership pupil as a base.  A district is            

                                                                                

11  not entitled to any retroactive payments for fiscal years before            

                                                                                

12  2000-2001 due to this subsection.                                           

                                                                                

13      (18) For a district in which an industrial facilities                       

                                                                                

14  exemption certificate that abated taxes on property with a state            

                                                                                

15  equalized valuation greater than the total state equalized                  

                                                                                

16  valuation of the district at the time the certificate was issued            

                                                                                

17  or $700,000,000.00, whichever is greater, was issued under 1974             

                                                                                

18  PA 198, MCL 207.551 to 207.572, before the calculation of the               

                                                                                

19  district's 1994-95 foundation allowance, the district's                     

                                                                                

20  foundation allowance for 2002-2003 is an amount equal to the sum            

                                                                                

21  of the district's foundation allowance for 2002-2003, as                    

                                                                                

22  otherwise calculated under this section, plus $250.00.                      

                                                                                

23      (19) For a district that received a grant under former                      

                                                                                

24  section 32e for 2001-2002,  the district's foundation allowance             

                                                                                

25  for 2002-2003 shall be adjusted to be an amount equal to the sum            

                                                                                

26  of the district's foundation allowance, as otherwise calculated             

                                                                                

27  under this section, plus the quotient of the amount of the grant            


                                                                                

1   award to the district for 2001-2002 under former section 32e                

                                                                                

2   divided by the district's membership for 2001-2002, and  the                

                                                                                

3   district's foundation allowance for  2003-2004  2002-2003 and               

                                                                                

4   each succeeding fiscal year shall be adjusted to be an amount               

                                                                                

5   equal to the sum of the district's foundation allowance, as                 

                                                                                

6   otherwise calculated under this section, plus the quotient of               

                                                                                

7   100% of the amount of the grant award to the district for                   

                                                                                

8   2001-2002 under former section 32e divided by the number of                 

                                                                                

9   pupils in the district's membership for 2001-2002 who were                  

                                                                                

10  residents of and enrolled in the district.  Except as otherwise             

                                                                                

11  provided in this subsection, a district qualifying for a                    

                                                                                

12  foundation allowance adjustment under this subsection shall use             

                                                                                

13  the funds resulting from this adjustment for at least 1 of grades           

                                                                                

14  K to 3 for purposes allowable under former section 32e as in                

                                                                                

15  effect for 2001-2002.  For an individual school or schools                  

                                                                                

16  operated by a district qualifying for a foundation allowance                

                                                                                

17  under this subsection that have been determined by the department           

                                                                                

18  to meet the adequate yearly progress standards of the federal no            

                                                                                

19  child left behind act of 2001, Public Law 107-110, 115                      

                                                                                

20  Stat. 1425, in both mathematics and English language arts at all            

                                                                                

21  applicable grade levels for all applicable subgroups, the                   

                                                                                

22  district may submit to the department an application for                    

                                                                                

23  flexibility in using the funds resulting from this adjustment               

                                                                                

24  that are attributable to the pupils in the school or schools.               

                                                                                

25  The application shall identify the affected school or schools and           

                                                                                

26  the affected funds and shall contain a plan for using the funds             

                                                                                

27  for specific purposes identified by the district that are                   


     Senate Bill No. 1069 (H-1) as amended June 9, 2004

   

1   designed to reduce class size, but that may be different from the           

                                                                                

2   purposes otherwise allowable under this subsection.  The                    

                                                                                

3   department shall approve the application if the department                  

                                                                                

4   determines that the purposes identified in the plan are                     

                                                                                

5   reasonably designed to reduce class size.  If the department does           

                                                                                

6   not act to approve or disapprove an application within 30 days              

                                                                                

7   after it is submitted to the department, the application is                 

                                                                                

8   considered to be approved.  If an application for flexibility in            

                                                                                

9   using the funds is approved, the district may use the funds                 

                                                                                

10  identified in the application for any purpose identified in the             

                                                                                

11  plan.                                                                       

                                                                                

12      (20) For a district that is a qualifying school district with               

                                                                                

13  a school reform board in place under part 5a of the revised                 

                                                                                

14  school code, MCL 380.371 to 380.376, the district's foundation              

                                                                                

15  allowance for 2002-2003 shall be adjusted to be an amount equal             

                                                                                

16  to the sum of the district's foundation allowance, as otherwise             

                                                                                

17  calculated under this section, plus the quotient of                         

                                                                                

18  $15,000,000.00  $100.00 divided by the district's membership for           

                                                                                

19  2002-2003.  If a district ceases to meet the requirements of this           

                                                                                

20  subsection, the department shall adjust the district's foundation           

                                                                                

21  allowance in effect at that time based on a 2002-2003 foundation            

                                                                                

22  allowance for the district that does not include the 2002-2003              

                                                                                

23  adjustment under this subsection.  This adjustment shall be made            

                                                                                

24  within 60 days after the date of the election at which the school           

                                                                                

25  electors vote to remove the school reform board.  [This subsection only applies for 2002-2003 and 2003-2004.  Beginning in 2004-2005, the foundation allowance of a district that received an increased foundation allowance for 2002-2003 and 2003-2004 due to adjustment under this subsection shall be calculated as if the adjustments under this subsection for 2002-2003 and 2003-2004 did not occur.]   

                                                                                

26      (21) For a district in which the school electors voted in                   

                                                                                

27  1993 on a proposal to override a millage reduction required under           


                                                                                

1   section 31 of article IX of the state constitution of 1963 of               

                                                                                

2   4.38 mills for operating purposes but did not approve the                   

                                                                                

3   proposal, the district's combined state and local revenue per               

                                                                                

4   membership pupil shall be recalculated as if that millage                   

                                                                                

5   reduction did not occur and, beginning in 2004-2005, the                    

                                                                                

6   district's foundation allowance shall be calculated as if its               

                                                                                

7   1994-1995 foundation allowance had been calculated using the                

                                                                                

8   recalculated 1993-1994 combined state and local revenue per                 

                                                                                

9   membership pupil as a base.  A district is not entitled to any              

                                                                                

10  retroactive payments for fiscal years before 2004-2005 due to               

                                                                                

11  this subsection.  A district receiving an adjustment under this             

                                                                                

12  subsection shall not receive more than $500,000.00 for a fiscal             

                                                                                

13  year as a result of this adjustment.                                        

                                                                                

14      (22) For a district that levied 1.9 mills in 1993 to finance                

                                                                                

15  an operating deficit, the district's foundation allowance shall             

                                                                                

16  be calculated as if those mills were included as operating mills            

                                                                                

17  in the calculation of the district's 1994-1995 foundation                   

                                                                                

18  allowance.  A district is not entitled to any retroactive                   

                                                                                

19  payments for fiscal years before 2004-2005 due to this                      

                                                                                

20  subsection.  A district receiving an adjustment under this                  

                                                                                

21  subsection shall not receive more than $700,000.00 for a fiscal             

                                                                                

22  year as a result of this adjustment.                                        

                                                                                

23      (23)  (21)  Payments to districts, university schools, or                   

                                                                                

24  public school academies shall not be made under this section.               

                                                                                

25  Rather, the calculations under this section shall be used to                

                                                                                

26  determine the amount of state payments under section 22b.                   

                                                                                

27      (24)  (22)  If an amendment to section 2 of article VIII of                 


                                                                                

1   the state constitution of 1963 allowing state aid to some or all            

                                                                                

2   nonpublic schools is approved by the voters of this state, each             

                                                                                

3   foundation allowance or per pupil payment calculation under this            

                                                                                

4   section may be reduced.                                                     

                                                                                

5       (25)  (23)  As used in this section:                                        

                                                                                

6       (a) "Combined state and local revenue" means the aggregate of               

                                                                                

7   the district's state school aid received by or paid on behalf of            

                                                                                

8   the district under this section and the district's local school             

                                                                                

9   operating revenue.                                                          

                                                                                

10      (b) "Combined state and local revenue per membership pupil"                 

                                                                                

11  means the district's combined state and local revenue divided by            

                                                                                

12  the district's membership excluding special education pupils.               

                                                                                

13      (c) "Current state fiscal year" means the state fiscal year                 

                                                                                

14  for which a particular calculation is made.                                 

                                                                                

15      (d) "Immediately preceding state fiscal year" means the state               

                                                                                

16  fiscal year immediately preceding the current state fiscal year.            

                                                                                

17      (e) "Local school operating revenue" means school operating                 

                                                                                

18  taxes levied under section 1211 of the revised school code,                 

                                                                                

19  MCL 380.1211.                                                               

                                                                                

20      (f) "Local school operating revenue per membership pupil"                   

                                                                                

21  means a district's local school operating revenue divided by the            

                                                                                

22  district's membership excluding special education pupils.                   

                                                                                

23      (g) "Membership" means the definition of that term under                    

                                                                                

24  section 6 as in effect for the particular fiscal year for which a           

                                                                                

25  particular calculation is made.                                             

                                                                                

26      (h) "Principal residence" and "qualified agricultural                       

                                                                                

27  property" mean those terms as defined in section 7dd of the                 


                                                                                

1   general property tax act, 1893 PA 206, MCL 211.7dd.                         

                                                                                

2       (i) "School operating purposes" means the purposes included                 

                                                                                

3   in the operation costs of the district as prescribed in                     

                                                                                

4   sections 7 and 18.                                                          

                                                                                

5       (j) "School operating taxes" means local ad valorem property                

                                                                                

6   taxes levied under section 1211 of the revised school code,                 

                                                                                

7   MCL 380.1211, and retained for school operating purposes.                   

                                                                                

8       (k) "Taxable value per membership pupil" means taxable value,               

                                                                                

9   as certified by the department of treasury, for the calendar year           

                                                                                

10  ending in the current state fiscal year divided by the district's           

                                                                                

11  membership excluding special education pupils for the school year           

                                                                                

12  ending in the current state fiscal year.                                    

                                                                                

13      Sec. 20l.  (1) From the allocation in section 22b, there is                 

                                                                                

14  allocated for 2004-2005 an amount not to exceed $100.00 for                 

                                                                                

15  consolidation incentive payments to districts under this                    

                                                                                

16  section.  A district that is formed by consolidation, or by the             

                                                                                

17  annexation by 1 district of all of the territory of another                 

                                                                                

18  district, after June 1, 2004 is eligible to receive a                       

                                                                                

19  consolidation incentive payment under this section.  The payment            

                                                                                

20  of an incentive payment to a district under this section shall be           

                                                                                

21  an amount equal to $25.00 per pupil in membership in the                    

                                                                                

22  consolidated district or in the district formed by the                      

                                                                                

23  annexation, not to exceed a total payment of $500,000.00 to any             

                                                                                

24  1 consolidated district or district formed by annexation.                   

                                                                                

25      (2) If the amount allocated under this section for a                        

                                                                                

26  particular fiscal year is not sufficient to fully fund payments             

                                                                                

27  to all eligible districts for the fiscal year, the department               


                                                                                

1   shall prorate payments under this section for that fiscal year on           

                                                                                

2   an equal percentage basis.                                                  

                                                                                

3       Sec. 21b.  (1) Subject to subsections (2) and (3), a                        

                                                                                

4   district shall use funds received under  section 20 or, beginning           

                                                                                

5   in 2000-2001, under  section 22a or 22b to support the attendance           

                                                                                

6   of a district pupil at an eligible postsecondary institution                

                                                                                

7   under the postsecondary enrollment options act, 1996 PA 160,                

                                                                                

8   MCL 388.511 to 388.524, or under the career and technical                   

                                                                                

9   preparation act, 2000 PA 258, MCL 388.1901 to 388.1913.                     

                                                                                

10      (2) To the extent required under subsection (3), a district                 

                                                                                

11  shall pay tuition and mandatory course fees, material fees, and             

                                                                                

12  registration fees required by an eligible postsecondary                     

                                                                                

13  institution for enrollment in an eligible course.  A district               

                                                                                

14  also shall pay any late fees charged by an eligible postsecondary           

                                                                                

15  institution due to the district's failure to make a required                

                                                                                

16  payment according to the timetable prescribed by the                        

                                                                                

17  postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to           

                                                                                

18  388.524, or the career and technical preparation act, 2000 PA               

                                                                                

19  258, MCL 388.1901 to 388.1913.  A district is not required to pay           

                                                                                

20  transportation costs, parking costs, or activity fees.                      

                                                                                

21      (3) A district shall pay to the eligible postsecondary                      

                                                                                

22  institution on behalf of an eligible student an amount equal to             

                                                                                

23  the lesser of the amount of the eligible charges described in               

                                                                                

24  subsection (2) or the prorated percentage of the state portion of           

                                                                                

25  the foundation allowance paid or calculated, as applicable, on              

                                                                                

26  behalf of that eligible student under section 20, with the                  

                                                                                

27  proration based on the proportion of the school year that the               


                                                                                

1   eligible student attends the postsecondary institution.  A                  

                                                                                

2   district may pay more money to an eligible postsecondary                    

                                                                                

3   institution on behalf of an eligible student than required under            

                                                                                

4   this section and the postsecondary enrollment options act, 1996             

                                                                                

5   PA 160, MCL 388.511 to 388.524, or the career and technical                 

                                                                                

6   preparation act, 2000 PA 258, MCL 388.1901 to 388.1913, and may             

                                                                                

7   use local school operating revenue for that purpose.  An eligible           

                                                                                

8   student is responsible for payment of the remainder of the costs            

                                                                                

9   associated with his or her postsecondary enrollment that exceed             

                                                                                

10  the amount the district is required to pay under this section and           

                                                                                

11  the postsecondary enrollment options act, 1996 PA 160,                      

                                                                                

12  MCL 388.511 to 388.524, or the career and technical preparation             

                                                                                

13  act, 2000 PA 258, MCL 388.1901 to 388.1913, and that are not paid           

                                                                                

14  by the district.  As used in this subsection, "local school                 

                                                                                

15  operating revenue" means that term as defined in section 20.                

                                                                                

16      (4) As used in this section, "eligible course", "eligible                   

                                                                                

17  student", and "eligible postsecondary institution" mean those               

                                                                                

18  terms as defined in section 3 of the postsecondary enrollment               

                                                                                

19  options act, 1996 PA 160, MCL 388.511 to 388.524, or in section 3           

                                                                                

20  of the career and technical preparation act, 2000 PA 258, MCL               

                                                                                

21  388.1903, as applicable.                                                    

                                                                                

22      Sec. 22a.  (1) From the appropriation in section 11, there                  

                                                                                

23  is allocated an amount not to exceed  $6,816,000,000.00                     

                                                                                

24  $6,765,300,000.00 for 2003-2004 and an amount not to exceed                 

                                                                                

25  $6,690,300,000.00 for 2004-2005 for payments to districts,                  

                                                                                

26  qualifying university schools, and qualifying public school                 

                                                                                

27  academies to guarantee each district, qualifying university                 


                                                                                

1   school, and qualifying public school academy an amount equal to             

                                                                                

2   its 1994-95 total state and local per pupil revenue for school              

                                                                                

3   operating purposes under section 11 of article IX of the state              

                                                                                

4   constitution of 1963.  Pursuant to section 11 of article IX of              

                                                                                

5   the state constitution of 1963, this guarantee does not apply to            

                                                                                

6   a district in a year in which the district levies a millage rate            

                                                                                

7   for school district operating purposes less than it levied in               

                                                                                

8   1994.  However, subsection (2) applies to calculating the                   

                                                                                

9   payments under this section.  Funds allocated under this section            

                                                                                

10  that are not expended in the state fiscal year for which they               

                                                                                

11  were allocated, as determined by the department, may be used to             

                                                                                

12  supplement the allocations under sections 22b and 51c in order to           

                                                                                

13  fully fund those calculated allocations for the same fiscal                 

                                                                                

14  year.                                                                       

                                                                                

15      (2) To ensure that a district receives an amount equal to the               

                                                                                

16  district's 1994-95 total state and local per pupil revenue for              

                                                                                

17  school operating purposes, there is allocated to each district a            

                                                                                

18  state portion of the district's 1994-95 foundation allowance in             

                                                                                

19  an amount calculated as follows:                                            

                                                                                

20      (a) Except as otherwise provided in this subsection, the                    

                                                                                

21  state portion of a district's 1994-95 foundation allowance is an            

                                                                                

22  amount equal to the district's 1994-95 foundation allowance or              

                                                                                

23  $6,500.00, whichever is less, minus the difference between the              

                                                                                

24  product of the taxable value per membership pupil of all property           

                                                                                

25  in the district that is not a homestead or qualified agricultural           

                                                                                

26  property times the lesser of 18 mills or the number of mills of             

                                                                                

27  school operating taxes levied by the district in 1993-94 and the            


                                                                                

1   quotient of the ad valorem property tax revenue of the district             

                                                                                

2   captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax               

                                                                                

3   increment finance authority act, 1980 PA 450, MCL 125.1801 to               

                                                                                

4   125.1830, the local development financing act, 1986 PA 281,                 

                                                                                

5   MCL 125.2151 to 125.2174, or the brownfield redevelopment                   

                                                                                

6   financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by            

                                                                                

7   the district's membership.  For a district that has a millage               

                                                                                

8   reduction required under section 31 of article IX of the state              

                                                                                

9   constitution of 1963, the state portion of the district's                   

                                                                                

10  foundation allowance shall be calculated as if that reduction did           

                                                                                

11  not occur.                                                                  

                                                                                

12      (b) For a district that had a 1994-95 foundation allowance                  

                                                                                

13  greater than $6,500.00, the state payment under this subsection             

                                                                                

14  shall be the sum of the amount calculated under subdivision (a)             

                                                                                

15  plus the amount calculated under this subdivision.  The amount              

                                                                                

16  calculated under this subdivision shall be equal to the                     

                                                                                

17  difference between the district's 1994-95 foundation allowance              

                                                                                

18  minus $6,500.00 and the current year hold harmless school                   

                                                                                

19  operating taxes per pupil.  If the result of the calculation                

                                                                                

20  under subdivision (a) is negative, the negative amount shall be             

                                                                                

21  an offset against any state payment calculated under this                   

                                                                                

22  subdivision.  If the result of a calculation under this                     

                                                                                

23  subdivision is negative, there shall not be a state payment or a            

                                                                                

24  deduction under this subdivision.  The taxable values per                   

                                                                                

25  membership pupil used in the calculations under this subdivision            

                                                                                

26  are as adjusted by ad valorem property tax revenue captured under           

                                                                                

27  1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance            


                                                                                

1   authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local             

                                                                                

2   development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,           

                                                                                

3   or the brownfield redevelopment financing act, 1996 PA 381,                 

                                                                                

4   MCL 125.2651 to 125.2672, divided by the district's membership.             

                                                                                

5       (3)  For  Beginning in 2003-2004, for pupils in membership in               

                                                                                

6   a qualifying public school academy or qualifying university                 

                                                                                

7   school, there is allocated under this section  for 2003-2004  to            

                                                                                

8   the authorizing body that is the fiscal agent for the qualifying            

                                                                                

9   public school academy for forwarding to the qualifying public               

                                                                                

10  school academy, or to the board of the public university                    

                                                                                

11  operating the qualifying university school, an amount equal to              

                                                                                

12  the 1994-95 per pupil payment to the qualifying public school               

                                                                                

13  academy or qualifying university school under section 20.                   

                                                                                

14      (4) A district, qualifying university school, or qualifying                 

                                                                                

15  public school academy may use funds allocated under this section            

                                                                                

16  in conjunction with any federal funds for which the district,               

                                                                                

17  qualifying university school, or qualifying public school academy           

                                                                                

18  otherwise would be eligible.                                                

                                                                                

19      (5) For a district that is formed or reconfigured after                     

                                                                                

20  June 1, 2000 by consolidation of 2 or more districts or by                  

                                                                                

21  annexation, the resulting district's 1994-95 foundation allowance           

                                                                                

22  under this section beginning after the effective date of the                

                                                                                

23  consolidation or annexation shall be the average of the 1994-95             

                                                                                

24  foundation allowances of each of the original or affected                   

                                                                                

25  districts, calculated as provided in this section, weighted as to           

                                                                                

26  the percentage of pupils in total membership in the resulting               

                                                                                

27  district in the state fiscal year in which the consolidation                


                                                                                

1   takes place who reside in the geographic area of each of the                

                                                                                

2   original districts.  If an affected district's 1994-95 foundation           

                                                                                

3   allowance is less than the 1994-95 basic foundation allowance,              

                                                                                

4   the amount of that district's 1994-95 foundation allowance shall            

                                                                                

5   be considered for the purpose of calculations under this                    

                                                                                

6   subsection to be equal to the amount of the 1994-95 basic                   

                                                                                

7   foundation allowance.                                                       

                                                                                

8       (6) As used in this section:                                                

                                                                                

9       (a) "1994-95 foundation allowance" means a district's 1994-95               

                                                                                

10  foundation allowance calculated and certified by the department             

                                                                                

11  of treasury or the superintendent under former section 20a as               

                                                                                

12  enacted in 1993 PA 336 and as amended by 1994 PA 283.                       

                                                                                

13      (b) "Current state fiscal year" means the state fiscal year                 

                                                                                

14  for which a particular calculation is made.                                 

                                                                                

15      (c) "Current year hold harmless school operating taxes per                  

                                                                                

16  pupil" means the per pupil revenue generated by multiplying a               

                                                                                

17  district's 1994-95 hold harmless millage by the district's                  

                                                                                

18  current year taxable value per membership pupil.                            

                                                                                

19      (d) "Hold harmless millage" means, for a district with a                    

                                                                                

20  1994-95 foundation allowance greater than $6,500.00, the number             

                                                                                

21  of mills by which the exemption from the levy of school operating           

                                                                                

22  taxes on a homestead and qualified agricultural property could be           

                                                                                

23  reduced as provided in section 1211(1) of the revised school                

                                                                                

24  code, MCL 380.1211, and the number of mills of school operating             

                                                                                

25  taxes that could be levied on all property as provided in section           

                                                                                

26  1211(2) of the revised school code, MCL 380.1211, as certified by           

                                                                                

27  the department of treasury for the 1994 tax year.                           


                                                                                

1       (e) "Homestead" means that term as defined in section 1211 of               

                                                                                

2   the revised school code, MCL 380.1211.                                      

                                                                                

3       (f) "Membership" means the definition of that term under                    

                                                                                

4   section 6 as in effect for the particular fiscal year for which a           

                                                                                

5   particular calculation is made.                                             

                                                                                

6       (g) "Qualified agricultural property" means that term as                    

                                                                                

7   defined in section 1211 of the revised school code,                         

                                                                                

8   MCL 380.1211.                                                               

                                                                                

9       (h) "Qualifying public school academy" means a public school                

                                                                                

10  academy that was in operation in the 1994-95 school year and is             

                                                                                

11  in operation in the current state fiscal year.                              

                                                                                

12      (i) "Qualifying university school" means a university school                

                                                                                

13  that was in operation in the 1994-95 school year and is in                  

                                                                                

14  operation in the current fiscal year.                                       

                                                                                

15      (j) "School operating taxes" means local ad valorem property                

                                                                                

16  taxes levied under section 1211 of the revised school code,                 

                                                                                

17  MCL 380.1211, and retained for school operating purposes.                   

                                                                                

18      (k) "Taxable value per membership pupil" means each of the                  

                                                                                

19  following divided by the district's membership:                             

                                                                                

20                                                                               (i) For the number of mills by which the exemption from the                         

                                                                                

21  levy of school operating taxes on a homestead and qualified                 

                                                                                

22  agricultural property may be reduced as provided in section                 

                                                                                

23  1211(1) of the revised school code, MCL 380.1211, the taxable               

                                                                                

24  value of homestead and qualified agricultural property for the              

                                                                                

25  calendar year ending in the current state fiscal year.                      

                                                                                

26      (ii) For the number of mills of school operating taxes that                  

                                                                                

27  may be levied on all property as provided in section 1211(2) of             


                                                                                

1   the revised school code, MCL 380.1211, the taxable value of all             

                                                                                

2   property for the calendar year ending in the current state fiscal           

                                                                                

3   year.                                                                       

                                                                                

4       Sec. 22b.  (1) From the appropriation in section 11, there                  

                                                                                

5   is allocated an amount not to exceed  $2,881,000,000.00 for                 

                                                                                

6   2003-2004  $2,901,700,000.00 for 2004-2005 for discretionary                

                                                                                

7   nonmandated payments to districts under this section.  Funds                

                                                                                

8   allocated under this section that are not expended in the state             

                                                                                

9   fiscal year for which they were allocated, as determined by the             

                                                                                

10  department, may be used to supplement the allocations under                 

                                                                                

11  sections 22a and 51c in order to fully fund those calculated                

                                                                                

12  allocations for the same fiscal year.                                       

                                                                                

13      (2) Subject to subsection (3) and section 11, the allocation                

                                                                                

14  to a district under this section shall be an amount equal to the            

                                                                                

15  sum of the amounts calculated under sections 20, 20j, 51a(2),               

                                                                                

16  51a(3), and 51a(12), minus the sum of the allocations to the                

                                                                                

17  district under sections 22a and 51c.                                        

                                                                                

18      (3) In order to receive an allocation under this section,                   

                                                                                

19  each district shall administer in each grade level that it                  

                                                                                

20  operates in grades 1 to 5 a standardized assessment approved by             

                                                                                

21  the department of grade-appropriate basic educational skills.  A            

                                                                                

22  district may use the Michigan literacy progress profile to                  

                                                                                

23  satisfy this requirement for grades 1 to 3.  Also, if the revised           

                                                                                

24  school code is amended to require annual assessments at                     

                                                                                

25  additional grade levels, in order to receive an allocation under            

                                                                                

26  this section each district shall comply with that requirement.              

                                                                                

27      (4) From the allocation in subsection (1), the department                   


                                                                                

1   shall  expend funds to pay for necessary costs associated with              

                                                                                

2   resolving matters pending in federal court impacting payments to            

                                                                                

3   districts, including, but not limited to, expert witness fees.              

                                                                                

4   Beginning in 2001-2002, from the allocation in subsection (1),              

                                                                                

5   the department shall also  pay up to $1,000,000.00 in litigation            

                                                                                

6   costs incurred by this state associated with lawsuits filed by 1            

                                                                                

7   or more districts or intermediate districts against this state.             

                                                                                

8   If the allocation under this section is insufficient to fully               

                                                                                

9   fund all payments required under this section, the payments under           

                                                                                

10  this subsection shall be made in full before any proration of               

                                                                                

11  remaining payments under this section.                                      

                                                                                

12      (5) It is the intent of the legislature that all                            

                                                                                

13  constitutional obligations of this state have been fully funded             

                                                                                

14  under sections 22a, 31d, 51a, and 51c.  If a claim is made by an            

                                                                                

15  entity receiving funds under this act that challenges the                   

                                                                                

16  legislative determination of the adequacy of this funding or                

                                                                                

17  alleges that there exists an unfunded constitutional requirement,           

                                                                                

18  the state budget director may escrow or allocate from the                   

                                                                                

19  discretionary funds for nonmandated payments under this section             

                                                                                

20  the amount as may be necessary to satisfy the claim before making           

                                                                                

21  any payments to districts under subsection (2).  If funds are               

                                                                                

22  escrowed, the escrowed funds are a work project appropriation and           

                                                                                

23  the funds are carried forward into the following fiscal year.               

                                                                                

24  The purpose of the work project is to provide for any payments              

                                                                                

25  that may be awarded to districts as a result of litigation.  The            

                                                                                

26  work project shall be completed upon resolution of the                      

                                                                                

27  litigation.                                                                 


                                                                                

1       (6) If the local claims review board or a court of competent                

                                                                                

2   jurisdiction makes a final determination that this state is in              

                                                                                

3   violation of section 29 of article IX of the state constitution             

                                                                                

4   of 1963 regarding state payments to districts, the state budget             

                                                                                

5   director shall use work project funds under subsection (5) or               

                                                                                

6   allocate from the discretionary funds for nonmandated payments              

                                                                                

7   under this section the amount as may be necessary to satisfy the            

                                                                                

8   amount owed to districts before making any payments to districts            

                                                                                

9   under subsection (2).                                                       

                                                                                

10      (7) If a claim is made in court that challenges the                         

                                                                                

11  legislative determination of the adequacy of funding for this               

                                                                                

12  state's constitutional obligations or alleges that there exists             

                                                                                

13  an unfunded constitutional requirement, any interested party may            

                                                                                

14  seek an expedited review of the claim by the local claims review            

                                                                                

15  board.  If the claim exceeds $10,000,000.00, this state may                 

                                                                                

16  remove the action to the court of appeals, and the court of                 

                                                                                

17  appeals shall have and shall exercise jurisdiction over the                 

                                                                                

18  claim.                                                                      

                                                                                

19      (8) If payments resulting from a final determination by the                 

                                                                                

20  local claims review board or a court of competent jurisdiction              

                                                                                

21  that there has been a violation of section 29 of article IX of              

                                                                                

22  the state constitution of 1963 exceed the amount allocated for              

                                                                                

23  discretionary nonmandated payments under this section, the                  

                                                                                

24  legislature shall provide for adequate funding for this state's             

                                                                                

25  constitutional obligations at its next legislative session.                 

                                                                                

26      (9) If a lawsuit challenging payments made to districts                     

                                                                                

27  related to costs reimbursed by federal title XIX medicaid funds             


                                                                                

1   is filed against this state during 2001-2002, 2002-2003, or                 

                                                                                

2   2003-2004, 50% of the amount allocated in subsection (1) not                

                                                                                

3   previously paid out for 2002-2003, 2003-2004, and each succeeding           

                                                                                

4   fiscal year is a work project appropriation and the funds are               

                                                                                

5   carried forward into the following fiscal year.  The purpose of             

                                                                                

6   the work project is to provide for any payments that may be                 

                                                                                

7   awarded to districts as a result of the litigation.  The work               

                                                                                

8   project shall be completed upon resolution of the litigation.  In           

                                                                                

9   addition, this state reserves the right to terminate future                 

                                                                                

10  federal title XIX medicaid reimbursement payments to districts if           

                                                                                

11  the amount or allocation of reimbursed funds is challenged in the           

                                                                                

12  lawsuit.  As used in this subsection, "title XIX" means title XIX           

                                                                                

13  of the social security act,  chapter 531, 49 Stat. 620,  42                 

                                                                                

14  U.S.C.  USC 1396 to  1396r-6 and 1396r-8 to  1396v.                        

                                                                                

15      Sec. 22d.  (1) From the amount allocated under section 22b,                 

                                                                                

16  an amount not to exceed $1,000,000.00 is allocated for additional           

                                                                                

17  payments to small, geographically isolated districts under this             

                                                                                

18  section.                                                                    

                                                                                

19      (2) To be eligible for a payment under this section, a                      

                                                                                

20  district shall meet all of the following:                                   

                                                                                

21      (a) Operates grades K to 12.                                                

                                                                                

22      (b) Has fewer than 250 pupils in membership.                                

                                                                                

23      (c) Each school building operated by the district meets at                  

                                                                                

24  least 1 of the following:                                                   

                                                                                

25                                                                               (i) Is located in the Upper Peninsula at least 30 miles from                        

                                                                                

26  any other public school building.                                           

                                                                                

27      (ii) Is located on an island that is not accessible by                       


     House Bill No. 1069 (H-1) as amended June 9, 2004

   

1   bridge.                                                                     

                                                                                

2       (3) The amount of the additional funding to each eligible                   

                                                                                

3   district under this section shall be determined under a spending            

                                                                                

4   plan developed as provided in this subsection and approved by the           

                                                                                

5   superintendent of public instruction.  The spending plan shall be           

                                                                                

6   developed cooperatively by the intermediate superintendents of              

                                                                                

7   each intermediate district in which an eligible district is                 

                                                                                

8   located.  The intermediate superintendents shall review the                 

                                                                                

9   financial situation of each eligible district, determine the                

                                                                                

10  minimum essential financial needs of each eligible district, and            

                                                                                

11  develop and agree on a spending plan that distributes the                   

                                                                                

12  available funding under this section to the eligible districts              

                                                                                

13  based on those financial needs.  The intermediate superintendents           

                                                                                

14  shall submit the spending plan to the superintendent of public              

                                                                                

15  instruction for approval.  Upon approval by the superintendent of           

                                                                                

16  public instruction, the amounts specified for each eligible                 

                                                                                

17  district under the spending plan are allocated under this section           

                                                                                

18  and shall be paid to the eligible districts in the same manner as           

                                                                                

19  payments under section 22b.                                                 

                                                                                

20      [Sec. 24.  (1)  Subject to subsection (2), from  From the                   

                                                                                

21  appropriation in section 11, there is allocated each fiscal year for        

                                                                                

22  2002-2003, and for 2003-2004  for 2004-2005 an amount not to exceed         

                                                                                

23  $8,000,000.00 for payments to the educating district or intermediate        

                                                                                

24  district  an amount equal to 100% of the added cost each fiscal year for    

                                                                                

25  educating  all  pupils assigned by a court or the family independence       

                                                                                

26  agency to reside in or to attend a juvenile detention facility or child     

                                                                                

27  caring institution licensed by the family independence agency or the        


     Senate Bill No. 1069 (H-1) as amended June 9, 2004

   

1   department of consumer and industry services and approved by the            

                                                                                

2   department to provide an on-grounds education program.   The total amount   

                                                                                

3   to be paid under this section for added cost shall not exceed               

                                                                                

4   $8,900,000.00 for 2002-2003 and $8,000,000.00 for 2003-2004.   The amount   

                                                                                

5   of the payment under this section to a district or intermediate district    

                                                                                

6   shall be calculated as prescribed under subsection (2).                     

                                                                                

7       (2) For 2004-2005, 70% of the total amount allocated under this             

                                                                                

8   section shall be allocated by paying to the educating district or           

                                                                                

9   intermediate district an amount equal to the lesser of the district's or    

                                                                                

10  intermediate district's added cost or the department's approved per pupil   

                                                                                

11  allocation for the district or intermediate district, and 30% of the        

                                                                                

12  total amount allocated under this section shall be allocated by paying to   

                                                                                

13  the educating district or intermediate district an amount equal to the      

                                                                                

14  district's or intermediate district's added cost.  For 2005-2006, 80% of    

                                                                                

15  the total amount allocated under this section shall be allocated by         

                                                                                

16  paying to the educating district or intermediate district an amount equal   

                                                                                

17  to the lesser of the district's or intermediate district's added cost or    

                                                                                

18  the department's approved per pupil allocation for the district or          

                                                                                

19  intermediate district, and 20% of the total amount allocated under this     

                                                                                

20  section shall be allocated by paying to the educating district or           

                                                                                

21  intermediate district an amount equal to the district's or intermediate     

                                                                                

22  district's added cost.  For 2006-2007, 90% of the total amount allocated    

                                                                                

23  under this section shall be allocated by paying to the educating district   

                                                                                

24  or intermediate district an amount equal to the lesser of the district's    

                                                                                

25  or intermediate district's added cost or the department's approved per      

                                                                                

26  pupil allocation for the district or intermediate district, and 10% of      

                                                                                

27  the total amount allocated under this section shall be allocated by         


    Senate Bill No. 1069 (H-1) as amended June 9, 2004    (1 of 2)              

1   paying to the educating district or intermediate district an amount equal   

                                                                                

2   to the district's or intermediate district's added cost.  For 2007-2008,    

                                                                                

3   100% of the total amount allocated under this section shall be allocated    

                                                                                

4   by paying to the educating district or intermediate district an amount      

                                                                                

5   equal to the lesser of the district's or intermediate district's added      

                                                                                

6   cost or the department's approved per pupil allocation for the district     

                                                                                

7   or intermediate district.  For the purposes of this section, "added         

                                                                                

8   cost"  subsection:                                                          

                                                                                

9       (a) "Added cost" means 100% of the added cost each fiscal year for          

                                                                                

10  educating all pupils assigned by a court or the family independence         

                                                                                

11  agency to reside in or to attend a juvenile detention facility or child     

                                                                                

12  caring institution licensed by the family independence agency or the        

                                                                                

13  department of consumer and industry services and approved by the            

                                                                                

14  department to provide an on-grounds education program.  Added cost shall    

                                                                                

15  be computed by deducting all other revenue received under this act for      

                                                                                

16  pupils described in this section from total costs, as approved by the       

                                                                                

17  department, in whole or in part, for educating those pupils in the on-      

                                                                                

18  grounds education program or in a program approved by the department that   

                                                                                

19  is located on property adjacent to a juvenile detention facility or child   

                                                                                

20  caring institution.  Costs reimbursed by federal funds are not included.    

                                                                                

21 For 2003-2004 only, for an on-grounds education program or a program located on property adjacent to a juvenile detention facility or child caring institution that was not in existence at the time the allocations under this section were approved, the department shall give approval for only that portion of the educating district's or intermediate district's total costs that will not prevent the allocated amounts under this section from first being applied to 100% of the added cost of the programs that were in existence at the time the preliminary allocations under this section were approved.

  (b) "Department's approved per pupil allocation" for a district or intermediate district shall be determined by dividing the total amount allocated under this section for a fiscal year by the full-time equated membership total for all pupils approved by the department to be funded under this section for that fiscal year for the district or intermediate district.

  (3)  (2)  A district or intermediate district educating pupils described in this section at a residential child caring institution may operate, and receive funding under this section for, a department-approved on-grounds educational program for those pupils that is longer than 181 days, but not longer than 233 days, if the child caring institution was licensed as a child caring institution and offered in 1991-92 an on-grounds educational program that was longer than 181 days but not longer than 233 days and that was operated by a district or intermediate district.

  (4)  (3)  Special education pupils funded under section 53a shall not be funded under this section.

     (4) The department shall appoint a committee to study and make recommendations concerning issues related to the education of pupils under this section, including, but not limited to, pupil counts, cost controls, and the number and type of eligible programs under this section.  The committee may include, but is not limited to, appointees from 1 or more adjudicated youth educators associations, the house fiscal agency, the senate fiscal agency, the department of management and budget, the family independence agency, the department of corrections, the court system, and the department.  Not later than May 15, 2004, the committee shall submit its recommendations to the house and senate appropriations subcommittees responsible for this act and to the department of management and budget.]       

                                                                                

22      Sec. 26.  A district or intermediate district receiving                     

                                                                                

23  money pursuant to 1975 PA 197, MCL 125.1651 to 125.1681, the tax            

                                                                                

24  increment finance authority act, 1980 PA 450, MCL 125.1801 to               

                                                                                

25  125.1830, the local development financing act, 1986 PA 281, MCL             

                                                                                

26  125.2151 to 125.2174, or the Brownfield redevelopment financing             

                                                                                

27  act, 1996 PA 381, MCL 125.2651 to 125.2672, shall have its funds            


                                                                                

1   received under section  20  22b, 56, or 62 reduced by an amount             

                                                                                

2   equal to the added local money.                                             

                                                                                

3       Sec. 26a.  (1) From the general fund appropriation in                       

                                                                                

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

                                                                                

5   $29,960,000.00 for 2003-2004  $36,337,200.00 for 2004-2005 to              

                                                                                

6   reimburse districts, intermediate districts, and the state school           

                                                                                

7   aid fund pursuant to section 12 of the Michigan renaissance zone            

                                                                                

8   act, 1996 PA 376, MCL 125.2692, for taxes levied in  2003  2004             

                                                                                

9   or for payments to districts as reimbursement for interest paid             

                                                                                

10  as a result of property tax refunds This reimbursement shall             

                                                                                

11  be made by adjusting payments under section 22a to eligible                 

                                                                                

12  districts, adjusting payments under section 56, 62, or 81 to                

                                                                                

13  eligible intermediate districts, and adjusting the state school             

                                                                                

14  aid fund.  The  adjustments  allocations 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      (2) From the allocation in subsection (1), there is                         

                                                                                

20  allocated an amount not to exceed $120,000.00 for 2004-2005 for             

                                                                                

21  interest payments to districts under this subsection.  If the               

                                                                                

22  department determines that a district is required to pay interest           

                                                                                

23  on any property tax refund ordered in the partial consent                   

                                                                                

24  judgment entered on November 6, 2001 in Hitachi Magnetics                   

                                                                                

25  Corporation v Home Township, Michigan tax tribunal, docket                  

                                                                                

26  nos. 190507 and 247733 (consolidated), the district shall receive           

                                                                                

27  a payment under this subsection to reimburse the district for               


                                                                                

1   interest paid, in an amount determined by the department of                 

                                                                                

2   treasury.                                                                   

                                                                                

3       (3) From the allocation in subsection (1), there is                         

                                                                                

4   allocated an amount not to exceed $17,200.00 for 2004-2005 to the           

                                                                                

5   department of treasury to refund to a township the amount of                

                                                                                

6   state education tax the township is required by court order to              

                                                                                

7   repay to a business that has been declared bankrupt.                        

                                                                                

8       Sec. 31a.  (1) From the  state school aid fund  money                       

                                                                                

9   appropriated in section 11, there is allocated for  2003-2004               

                                                                                

10  2004-2005 an amount not to exceed $314,200,000.00 for payments to           

                                                                                

11  eligible districts and eligible public school academies under               

                                                                                

12  this section.  Subject to subsection (12), the amount of the                

                                                                                

13  additional allowance under this section shall be based on the               

                                                                                

14  number of actual pupils in membership in the district or public             

                                                                                

15  school academy who met the income eligibility criteria for free             

                                                                                

16  breakfast, lunch, or milk in the immediately preceding state                

                                                                                

17  fiscal year, as determined under the Richard B. Russell national            

                                                                                

18  school lunch act,  chapter 281, 60 Stat. 230,  42  U.S.C.  USC              

                                                                                

19  1751 to  1753, 1755 to 1761, 1762a, 1765 to 1766a, 1769, 1769b to           

                                                                                

20  1769c, and 1769f to  1769h, and reported to the department by               

                                                                                

21  October 31 of the immediately preceding fiscal year and adjusted            

                                                                                

22  not later than December 31 of the immediately preceding fiscal              

                                                                                

23  year.  However, for a public school academy that began operations           

                                                                                

24  as a public school academy after the pupil membership count day             

                                                                                

25  of the immediately preceding school year, the basis for the                 

                                                                                

26  additional allowance under this section shall be the number of              

                                                                                

27  actual pupils in membership in the public school academy who met            


                                                                                

1   the income eligibility criteria for free breakfast, lunch, or               

                                                                                

2   milk in the current state fiscal year, as determined under the              

                                                                                

3   Richard B. Russell national school lunch act.                               

                                                                                

4       (2) To be eligible to receive funding under this section,                   

                                                                                

5   other than funding under subsection (6), a district or public               

                                                                                

6   school academy that has not been previously determined to be                

                                                                                

7   eligible shall apply to the department, in a form and manner                

                                                                                

8   prescribed by the department, and a district or public school               

                                                                                

9   academy must meet all of the following:                                     

                                                                                

10      (a) The sum of the district's or public school academy's                    

                                                                                

11  combined state and local revenue per membership pupil in the                

                                                                                

12  current state fiscal year, as calculated under section 20, plus             

                                                                                

13  the amount of the district's per pupil allocation under section             

                                                                                

14  20j(2), is less than or equal to $6,500.00 adjusted by the dollar           

                                                                                

15  amount of the difference between the basic foundation allowance             

                                                                                

16  under section 20 for the current state fiscal year and $5,000.00,           

                                                                                

17  minus $200.00.                                                              

                                                                                

18      (b) The district or public school academy agrees to use the                 

                                                                                

19  funding only for purposes allowed under this section and to                 

                                                                                

20  comply with the program and accountability requirements under               

                                                                                

21  this section.                                                               

                                                                                

22      (3) Except as otherwise provided in this subsection, an                     

                                                                                

23  eligible district or eligible public school academy shall receive           

                                                                                

24  under this section for each membership pupil in the district or             

                                                                                

25  public school academy who met the income eligibility criteria for           

                                                                                

26  free breakfast, lunch, or milk, as determined under the Richard             

                                                                                

27  B. Russell national school lunch act and as reported to the                 


                                                                                

1   department by October 31 of the immediately preceding fiscal year           

                                                                                

2   and adjusted not later than December 31 of the immediately                  

                                                                                

3   preceding fiscal year, an amount per pupil equal to 11.5% of the            

                                                                                

4   sum of the district's foundation allowance or public school                 

                                                                                

5   academy's per pupil amount calculated under section 20, plus the            

                                                                                

6   amount of the district's per pupil allocation under section                 

                                                                                

7   20j(2), not to exceed $6,500.00 adjusted by the dollar amount of            

                                                                                

8   the difference between the basic foundation allowance under                 

                                                                                

9   section 20 for the current state fiscal year and $5,000.00, minus           

                                                                                

10  $200.00, or of the public school academy's per membership pupil             

                                                                                

11  amount calculated under section 20 for the current state fiscal             

                                                                                

12  year.  A public school academy that began operations as a public            

                                                                                

13  school academy after the pupil membership count day of the                  

                                                                                

14  immediately preceding school year shall receive under this                  

                                                                                

15  section for each membership pupil in the public school academy              

                                                                                

16  who met the income eligibility criteria for free breakfast,                 

                                                                                

17  lunch, or milk, as determined under the Richard B. Russell                  

                                                                                

18  national school lunch act and as reported to the department by              

                                                                                

19  October 31 of the current fiscal year and adjusted not later than           

                                                                                

20  December 31 of the current fiscal year, an amount per pupil equal           

                                                                                

21  to 11.5% of the public school academy's per membership pupil                

                                                                                

22  amount calculated under section 20 for the current state fiscal             

                                                                                

23  year.                                                                       

                                                                                

24      (4) Except as otherwise provided in this section, a district                

                                                                                

25  or public school academy receiving funding under this section               

                                                                                

26  shall use that money only to provide instructional programs and             

                                                                                

27  direct noninstructional services, including, but not limited to,            


                                                                                

1   medical or counseling services, for at-risk pupils; for school              

                                                                                

2   health clinics; and for the purposes of subsection (5) or (6).  A           

                                                                                

3   district or public school academy shall not use any of that money           

                                                                                

4   for administrative costs or to supplant another program or other            

                                                                                

5   funds, except for funds allocated to the district or public                 

                                                                                

6   school academy under this section in the immediately preceding              

                                                                                

7   year and already being used by the district or public school                

                                                                                

8   academy for at-risk pupils.  The instruction or direct                      

                                                                                

9   noninstructional services provided under this section may be                

                                                                                

10  conducted before or after regular school hours or by adding extra           

                                                                                

11  school days to the school year and may include, but are not                 

                                                                                

12  limited to, tutorial services, early childhood programs to serve            

                                                                                

13  children age 0 to 5, and reading programs as described in former            

                                                                                

14  section 32f as in effect for 2001-2002.  A tutorial method may be           

                                                                                

15  conducted with paraprofessionals working under the supervision of           

                                                                                

16  a certificated teacher.  The ratio of pupils to paraprofessionals           

                                                                                

17  shall be between 10:1 and 15:1.  Only 1 certificated teacher is             

                                                                                

18  required to supervise instruction using a tutorial method.  As              

                                                                                

19  used in this subsection, "to supplant another program" means to             

                                                                                

20  take the place of a previously existing instructional program or            

                                                                                

21  direct noninstructional services funded from a funding source               

                                                                                

22  other than funding under this section.                                      

                                                                                

23      (5) Except as otherwise provided in subsection (11), a                      

                                                                                

24  district or public school academy that receives funds under this            

                                                                                

25  section and that operates a school breakfast program under                  

                                                                                

26  section 1272a of the revised school code, MCL 380.1272a, shall              

                                                                                

27  use from the funds received under this section an amount, not to            


    Senate Bill 1069 (H-1) as amended June 9, 2004                              

1   exceed $10.00 per pupil for whom the district or public school              

                                                                                

2   academy receives funds under this section, necessary to operate             

                                                                                

3   the school breakfast program.                                               

                                                                                

4       (6) From the funds allocated under subsection (1), there is                 

                                                                                

5   allocated  beginning with 2003-2004  for 2004-2005 an amount not            

                                                                                

6   to exceed $3,743,000.00 to support teen health centers.  These              

                                                                                

7   grants shall be awarded for 3 consecutive years beginning with              

                                                                                

8   2003-2004 in a form and manner approved jointly by the department           

                                                                                

9   and the department of community health.  Each grant recipient               

                                                                                

10  shall remain in compliance with the terms of the grant award or             

                                                                                

11  shall forfeit the grant award for the duration of the 3-year                

                                                                                

12  period after the noncompliance.  [Beginning in 2004-2005, to continue to receive funding for a teen health center under this section a grant recipient shall ensure that the teen health center has an advisory committee and that at least one-third of the members of the advisory committee are parents or legal guardians of school-aged children. A teen health center program shall recognize the role of a child's parents or legal guardian in the physical and emotional well-being of the child.]  If any funds allocated under                                           

                                                                                

13  this subsection are not used for the purposes of this subsection            

                                                                                

14  for the fiscal year in which they are allocated, those unused               

                                                                                

15  funds shall be used that fiscal year to avoid or minimize any               

                                                                                

16  proration that would otherwise be required under subsection (12)            

                                                                                

17  for that fiscal year.                                                       

                                                                                

18      (7) Each district or public school academy receiving funds                  

                                                                                

19  under this section shall submit to the department by July 15 of             

                                                                                

20  each fiscal year a report, not to exceed 10 pages, on the usage             

                                                                                

21  by the district or public school academy of funds under this                

                                                                                

22  section, which report shall include at least a brief description            

                                                                                

23  of each program conducted by the district or public school                  

                                                                                

24  academy using funds under this section, the amount of funds under           

                                                                                

25  this section allocated to each of those programs, the number of             

26  at-risk pupils eligible for free or reduced price school lunch              

27  who were served by each of those programs, and the total number             


                                                                                

1   of at-risk pupils served by each of those programs.  If a                   

                                                                                

2   district or public school academy does not comply with this                 

                                                                                

3   subsection, the department shall withhold an amount equal to the            

                                                                                

4   August payment due under this section until the district or                 

                                                                                

5   public school academy complies with this subsection.  If the                

                                                                                

6   district or public school academy does not comply with this                 

                                                                                

7   subsection by the end of the state fiscal year, the withheld                

                                                                                

8   funds shall be forfeited to the school aid fund.                            

                                                                                

9       (8) In order to receive funds under this section, a district                

                                                                                

10  or public school academy shall allow access for the department or           

                                                                                

11  the department's designee to audit all records related to the               

                                                                                

12  program for which it receives those funds.  The district or                 

                                                                                

13  public school academy shall reimburse the state for all                     

                                                                                

14  disallowances found in the audit.                                           

                                                                                

15      (9) Subject to subsections (5), (6), and (11), any district                 

                                                                                

16  may use up to 100% of the funds it receives under this section to           

                                                                                

17  reduce the ratio of pupils to teachers in grades K-6, or any                

                                                                                

18  combination of those grades, in school buildings in which the               

                                                                                

19  percentage of pupils described in subsection (1) exceeds the                

                                                                                

20  district's aggregate percentage of those pupils.  Subject to                

                                                                                

21  subsections (5), (6), and (11), if a district obtains a waiver              

                                                                                

22  from the department, the district may use up to 100% of the funds           

                                                                                

23  it receives under this section to reduce the ratio of pupils to             

                                                                                

24  teachers in grades K-6, or any combination of those grades, in              

                                                                                

25  school buildings in which the percentage of pupils described in             

                                                                                

26  subsection (1) is at least 60% of the district's aggregate                  

                                                                                

27  percentage of those pupils and at least 30% of the total number             


                                                                                

1   of pupils enrolled in the school building.  To obtain a waiver, a           

                                                                                

2   district must apply to the department and demonstrate to the                

                                                                                

3   satisfaction of the department that the class size reductions               

                                                                                

4   would be in the best interests of the district's at-risk pupils.            

                                                                                

5       (10) A district or public school academy may use funds                      

                                                                                

6   received under this section for adult high school completion,               

                                                                                

7   general  education  educational development (G.E.D.)  test                  

                                                                                

8   preparation, adult English as a second language, or adult basic             

                                                                                

9   education programs described in section 107.                                

                                                                                

10      (11) For an individual school or schools operated by a                      

                                                                                

11  district or public school academy receiving funds under this                

                                                                                

12  section that have been determined by the department to meet the             

                                                                                

13  adequate yearly progress standards of the federal no child left             

                                                                                

14  behind act of 2001, Public Law 107-110,  115 Stat. 1425,  in both           

                                                                                

15  mathematics and English language arts at all applicable grade               

                                                                                

16  levels for all applicable subgroups, the district or public                 

                                                                                

17  school academy may submit to the department an application for              

                                                                                

18  flexibility in using the funds received under this section that             

                                                                                

19  are attributable to the pupils in the school or schools.  The               

                                                                                

20  application shall identify the affected school or schools and the           

                                                                                

21  affected funds and shall contain a plan for using the funds for             

                                                                                

22  specific purposes identified by the district that are designed to           

                                                                                

23  benefit at-risk pupils in the school, but that may be different             

                                                                                

24  from the purposes otherwise allowable under this section.  The              

                                                                                

25  department shall approve the application if the department                  

                                                                                

26  determines that the purposes identified in the plan are                     

                                                                                

27  reasonably designed to benefit at-risk pupils in the school.  If            


                                                                                

1   the department does not act to approve or disapprove an                     

                                                                                

2   application within 30 days after it is submitted to the                     

                                                                                

3   department, the application is considered to be approved.  If an            

                                                                                

4   application for flexibility in using the funds is approved, the             

                                                                                

5   district may use the funds identified in the application for any            

                                                                                

6   purpose identified in the plan.                                             

                                                                                

7       (12) If necessary, and before any proration required under                  

                                                                                

8   section 11, the department shall prorate payments under this                

                                                                                

9   section by reducing the amount of the per pupil payment under               

                                                                                

10  this section by a dollar amount calculated by determining the               

                                                                                

11  amount by which the amount necessary to fully fund the                      

                                                                                

12  requirements of this section exceeds the maximum amount allocated           

                                                                                

13  under this section and then dividing that amount by the total               

                                                                                

14  statewide number of pupils who met the income eligibility                   

                                                                                

15  criteria for free breakfast, lunch, or milk in the immediately              

                                                                                

16  preceding fiscal year, as described in subsection (1).                      

                                                                                

17      (13) If a district is formed by consolidation after June 1,                 

                                                                                

18  1995, and if 1 or more of the original districts was not eligible           

                                                                                

19  before the consolidation for an additional allowance under this             

                                                                                

20  section, the amount of the additional allowance under this                  

                                                                                

21  section for the consolidated district shall be based on the                 

                                                                                

22  number of pupils described in subsection (1) enrolled in the                

                                                                                

23  consolidated district who reside in the territory of an original            

                                                                                

24  district that was eligible before the consolidation for an                  

                                                                                

25  additional allowance under this section.                                    

                                                                                

26      (14) A district or public school academy that does not meet                 

                                                                                

27  the eligibility requirement under subsection (2)(a) is eligible             


                                                                                

1   for funding under this section if at least 1/4 of the pupils in             

                                                                                

2   membership in the district or public school academy met the                 

                                                                                

3   income eligibility criteria for free breakfast, lunch, or milk in           

                                                                                

4   the immediately preceding state fiscal year, as determined and              

                                                                                

5   reported as described in subsection (1), and at least 4,500 of              

                                                                                

6   the pupils in membership in the district or public school academy           

                                                                                

7   met the income eligibility criteria for free breakfast, lunch, or           

                                                                                

8   milk in the immediately preceding state fiscal year, as                     

                                                                                

9   determined and reported as described in subsection (1).  A                  

                                                                                

10  district or public school academy that is eligible for funding              

                                                                                

11  under this section because the district meets the requirements of           

                                                                                

12  this subsection shall receive under this section for each                   

                                                                                

13  membership pupil in the district or public school academy who met           

                                                                                

14  the income eligibility criteria for free breakfast, lunch, or               

                                                                                

15  milk in the immediately preceding fiscal year, as determined and            

                                                                                

16  reported as described in subsection (1), an amount per pupil                

                                                                                

17  equal to 11.5% of the sum of the district's foundation allowance            

                                                                                

18  or public school academy's per pupil allocation under section 20,           

                                                                                

19  plus the amount of the district's per pupil allocation under                

                                                                                

20  section 20j(2), not to exceed $6,500.00 adjusted by the dollar              

                                                                                

21  amount of the difference between the basic foundation allowance             

                                                                                

22  under section 20 for the current state fiscal year and $5,000.00,           

                                                                                

23  minus $200.00.                                                              

                                                                                

24      (15) As used in this section, "at-risk pupil" means a pupil                 

                                                                                

25  for whom the district has documentation that the pupil meets at             

                                                                                

26  least 2 of the following criteria:  is a victim of child abuse or           

                                                                                

27  neglect; is below grade level in English language and                       


                                                                                

1   communication skills or mathematics; is a pregnant teenager or              

                                                                                

2   teenage parent; is eligible for a federal free or reduced-price             

                                                                                

3   lunch subsidy; has atypical behavior or attendance patterns; or             

                                                                                

4   has a family history of school failure, incarceration, or                   

                                                                                

5   substance abuse.  For pupils for whom the results of at least the           

                                                                                

6   applicable Michigan education assessment program (MEAP) test have           

                                                                                

7   been received, at-risk pupil also includes a pupil who does not             

                                                                                

8   meet the other criteria under this subsection but who did not               

                                                                                

9   achieve at least a score of  moderate  level 2 on the most recent           

                                                                                

10  MEAP  reading  English language arts, mathematics, or science               

                                                                                

11  test for which results for the pupil have been received.  , did             

                                                                                

12  not achieve at least a score of moderate on the most recent MEAP            

                                                                                

13  mathematics test for which results for the pupil have been                  

                                                                                

14  received, or did not achieve at least a score of novice on the              

                                                                                

15  most recent MEAP science test for which results for the pupil               

                                                                                

16  have been received.  For pupils in grades K-3, at-risk pupil also           

                                                                                

17  includes a pupil who is at risk of not meeting the district's               

                                                                                

18  core academic curricular objectives in English language  ,                  

                                                                                

19  communication skills,  arts or mathematics.                                 

                                                                                

20      Sec. 31d.  (1) From the appropriations in section 11, there                 

                                                                                

21  is allocated an amount not to exceed  $18,315,000.00 for                    

                                                                                

22  2002-2003 and an amount not to exceed $21,300,000.00 for                    

                                                                                

23  2003-2004  $21,095,000.00 for 2004-2005 for the purpose of making           

                                                                                

24  payments to districts and other eligible entities under this                

                                                                                

25  section.                                                                    

                                                                                

26      (2) The amounts allocated from state sources under this                     

                                                                                

27  section shall be used to pay the amount necessary to reimburse              


                                                                                

1   districts for 6.0127% of the necessary costs of the state                   

                                                                                

2   mandated portion of the school lunch programs provided by those             

                                                                                

3   districts.  The amount due to each district under this section              

                                                                                

4   shall be computed by the department using the methods of                    

                                                                                

5   calculation adopted by the Michigan supreme court in the                    

                                                                                

6   consolidated cases known as Durant v State of Michigan, Michigan            

                                                                                

7   supreme court docket no. 104458-104492.                                     

                                                                                

8       (3) The payments made under this section include all state                  

                                                                                

9   payments made to districts so that each district receives at                

                                                                                

10  least 6.0127% of the necessary costs of operating the state                 

                                                                                

11  mandated portion of the school lunch program in a fiscal year.              

                                                                                

12      (4) The payments made under this section to districts and                   

                                                                                

13  other eligible entities that are not required under section 1272a           

                                                                                

14  of the revised school code, MCL 380.1272a, to provide a school              

                                                                                

15  lunch program shall be in an amount not to exceed $10.00 per                

                                                                                

16  eligible pupil plus 5 cents for each free lunch and 2 cents for             

                                                                                

17  each reduced price lunch provided, as determined by the                     

                                                                                

18  department.                                                                 

                                                                                

19      (5) From the federal funds appropriated in section 11, there                

                                                                                

20  is allocated for  2003-2004  2004-2005 all available federal                

                                                                                

21  funding, estimated at  $272,125,000.00  $286,494,000.00, for the            

                                                                                

22  national school lunch program and all available federal funding,            

                                                                                

23  estimated at $2,506,000.00, for the emergency food assistance               

                                                                                

24  program.                                                                    

                                                                                

25      (6) Notwithstanding section 17b, payments to eligible                       

                                                                                

26  entities other than districts under this section shall be paid on           

                                                                                

27  a schedule determined by the department.                                    


                                                                                

1       Sec. 32c.  (1) From the general fund appropriation in                       

                                                                                

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

                                                                                

3   $250,000.00  $249,900.00 for  2003-2004  2004-2005 to the                  

                                                                                

4   department for grants for community-based collaborative                     

                                                                                

5   prevention services designed to promote marriage and foster                 

                                                                                

6   positive parenting skills; improve parent/child interaction,                

                                                                                

7   especially for children 0-3 years of age; promote access to                 

                                                                                

8   needed community services; increase local capacity to serve                 

                                                                                

9   families at risk; improve school readiness; and support healthy             

                                                                                

10  family environments that discourage alcohol, tobacco, and other             

                                                                                

11  drug use.  The allocation under this section is to fund secondary           

                                                                                

12  prevention programs as defined by the children's trust fund for             

                                                                                

13  the prevention of child abuse and neglect.                                  

                                                                                

14      (2) The funds allocated under subsection (1) shall be                       

                                                                                

15  distributed through a joint request for proposals process                   

                                                                                

16  established by the department in conjunction with the children's            

                                                                                

17  trust fund and the  state's interagency systems reform workgroup            

                                                                                

18  children's action network.  Projects funded with grants awarded             

                                                                                

19  under this section shall meet all of the following:                         

                                                                                

20      (a) Be secondary prevention initiatives and voluntary to                    

                                                                                

21  consumers.  This appropriation is not intended to serve the needs           

                                                                                

22  of children for whom and families in which neglect or abuse has             

                                                                                

23  been substantiated.                                                         

                                                                                

24      (b) Demonstrate that the planned services are part of a                     

                                                                                

25  community's integrated comprehensive family support strategy                

                                                                                

26  endorsed by the local multi-purpose collaborative body.                     

                                                                                

27      (c) Provide a 25% local match, of which not more than 10% may               


                                                                                

1   be in-kind services, unless this requirement is waived by the               

                                                                                

2   interagency systems reform workgroup  children's action                    

                                                                                

3   network.                                                                    

                                                                                

4       (3) Notwithstanding section 17b, payments under this section                

                                                                                

5   may be made pursuant to an agreement with the department.                   

                                                                                

6       (4) Not later than January 30 of the next fiscal year, the                  

                                                                                

7   department shall prepare and submit to the governor and the                 

                                                                                

8   legislature an annual report of outcomes achieved by the                    

                                                                                

9   providers of the community-based collaborative prevention                   

                                                                                

10  services funded under this section for a fiscal year.                       

                                                                                

11      Sec. 32d.  (1) From the state school aid fund money                         

                                                                                

12  appropriated under section 11, there is allocated an amount not             

                                                                                

13  to exceed  $72,600,000.00 for 2003-2004  $70,599,900.00 for                 

                                                                                

14  2004-2005 for school readiness  or preschool and parenting                  

                                                                                

15  program  grants to enable eligible districts, as determined under           

                                                                                

16  section 37, to develop or expand, in conjunction with whatever              

                                                                                

17  federal funds may be available, including, but not limited to,              

                                                                                

18  federal funds under title I of the elementary and secondary                 

                                                                                

19  education act of 1965,  Public Law 89-10, 108 Stat. 3519, 20                

                                                                                

20  U.S.C.  20 USC 6301 to  6304, 6311 to 6339, 6361 to 6368, 6371 to           

                                                                                

21  6376, 6381 to 6383, 6391 to 6399, 6421 to 6472, 6491 to 6494,               

                                                                                

22  6511 to 6518, 6531 to 6537, 6551 to 6561i, and 6571 to  6578,               

                                                                                

23  chapter 1 of title I of the Hawkins-Stafford elementary and                 

                                                                                

24  secondary school improvement amendments of 1988, Public Law                 

                                                                                

25  89-10, 102 Stat. 140  100-297, and the head start act,                     

                                                                                

26  subchapter B of chapter 8 of subtitle A of title VI of the                 

                                                                                

27  omnibus budget reconciliation act of 1981, Public Law 97-35, 42             


                                                                                

1   U.S.C.  42 USC 9831 to  9835, 9836 to 9844, 9846, and 9848 to               

                                                                                

2   9852  9852a, comprehensive compensatory programs designed to  do            

                                                                                

3   1 or both of the following:  (a) Improve  improve the readiness             

                                                                                

4   and subsequent achievement of educationally disadvantaged                   

                                                                                

5   children as defined by the department who will be at least 4, but           

                                                                                

6   less than 5 years of age, as of December 1 of the school year in            

                                                                                

7   which the programs are offered, and who show evidence of 2 or               

                                                                                

8   more risk factors as defined in the state board report entitled             

                                                                                

9   "children at risk" that was adopted by the state board on April             

                                                                                

10  5, 1988.                                                                    

                                                                                

11      (b) Provide preschool and parenting education programs                      

                                                                                

12  similar to those under former section 32b as in effect for                  

                                                                                

13  2001-2002.                                                                  

                                                                                

14      (2) A comprehensive compensatory program funded under this                  

                                                                                

15  section may include an age-appropriate educational curriculum,              

                                                                                

16  nutritional services, health screening for participating                    

                                                                                

17  children, a plan for parent and legal guardian involvement, and             

                                                                                

18  provision of referral services for families eligible for                    

                                                                                

19  community social services.                                                  

                                                                                

20      (3) In addition to the allocation under subsection (1), from                

                                                                                

21  the general fund money allocated under section 11, there is                 

                                                                                

22  allocated an amount not to exceed $200,000.00 for  2003-2004 for            

                                                                                

23  the purposes of subsection (4).  (4) From the general fund                  

                                                                                

24  allocation in subsection (3), there is allocated for 2003-2004 an           

                                                                                

25  amount not to exceed $200,000.00  2004-2005 for a competitive               

                                                                                

26  grant to continue a longitudinal evaluation of children who have            

                                                                                

27  participated in the Michigan school readiness program.                      


                                                                                

1       (4)  (5)  A district receiving a grant under this section                   

                                                                                

2   may contract for the provision of the comprehensive compensatory            

                                                                                

3   program and retain for administrative services an amount equal to           

                                                                                

4   not more than 5% of the grant amount.                                       

                                                                                

5       (5)  (6)  A grant recipient receiving funds under this                      

                                                                                

6   section shall report to the department no later than October 15             

                                                                                

7   of each year the number of children participating in the program            

                                                                                

8   who meet the income or other eligibility criteria specified under           

                                                                                

9   section 37(3)(g) and the total number of children participating             

                                                                                

10  in the program.  For children participating in the program who              

                                                                                

11  meet the income or other eligibility criteria specified under               

                                                                                

12  section 37(3)(g), grant recipients shall also report whether or             

                                                                                

13  not a parent is available to provide care based on employment               

                                                                                

14  status.  For the purposes of this subsection, "employment status"           

                                                                                

15  shall be defined by the family independence agency in a manner              

                                                                                

16  consistent with maximizing the amount of spending that may be               

                                                                                

17  claimed for temporary assistance for needy families maintenance             

                                                                                

18  of effort purposes.                                                         

                                                                                

19      Sec. 32f.   (1) From the state school aid fund allocation                   

                                                                                

20  under section 32a(1), there is allocated for 2001-2002 an amount            

                                                                                

21  not to exceed $45,000,000.00 and for 2002-2003 and 2003-2004                

                                                                                

22  $0.00, for grants under this section.  From the general fund                

                                                                                

23  allocation under section 32a(1), there is allocated each fiscal             

                                                                                

24  year for 2001-2002, 2002-2003, and 2003-2004 $0.00 for the                  

                                                                                

25  purposes of subsection (3).                                                 

                                                                                

26      (2) From the allocation in subsection (1), there is allocated               

                                                                                

27  for 2001-2002 an amount not to exceed $2,000,000.00 and for                 


                                                                                

1   2002-2003 and 2003-2004 $0.00, for providing grants to the 8                

                                                                                

2   regional literacy centers for the purposes of expanding training            

                                                                                

3   programs for trainers and teachers in the use of strategies for             

                                                                                

4   reading instruction and assessment, including the Michigan                  

                                                                                

5   literacy progress profile.                                                  

                                                                                

6       (3) From the general fund allocation in subsection (1), there               

                                                                                

7   is allocated to the department $0.00 each fiscal year for                   

                                                                                

8   2001-2002, 2002-2003, and 2003-2004 for the development and                 

                                                                                

9   dissemination of  In collaboration with central Michigan                    

                                                                                

10  university, the department shall develop and disseminate read,              

                                                                                

11  educate, and develop youth  (READY)  (R.E.A.D.Y.) kits to parents           

                                                                                

12  of preschool and kindergarten children to provide these parents             

                                                                                

13  with information about how they can prepare their children for              

                                                                                

14  reading success.                                                            

                                                                                

15      (4) From the general fund allocation in subsection (1),                     

                                                                                

16  there is allocated to the department each fiscal year for                   

                                                                                

17  2001-2002, 2002-2003, and 2003-2004 $0.00 for the grant review              

                                                                                

18  process and grant administration under this section.                        

                                                                                

19      (5) Except as otherwise provided in subsection (17), to be                  

                                                                                

20  eligible for a grant under this section, a district must have had           

                                                                                

21  at least 1,500 pupils in membership in 1998-99, and the number of           

                                                                                

22  pupils in the district that have been determined to have a                  

                                                                                

23  specific learning disability according to R 340.1713 of the                 

                                                                                

24  Michigan administrative code, as determined in the December 1,              

                                                                                

25  1998 head count required under the individuals with disabilities            

                                                                                

26  education act, title VI of Public Law 91-230, must equal or                 

                                                                                

27  exceed 5% of the district's membership.  In addition, a district            


                                                                                

1   is eligible for a grant under this section if the district had at           

                                                                                

2   least 1,500 pupils in membership in 1998-99 and if not more than            

                                                                                

3   41% of the district's pupils who took the spring 1999 fourth                

                                                                                

4   grade MEAP reading test achieved a score of at least                        

                                                                                

5   satisfactory.  Except as otherwise provided in subsection (17),             

                                                                                

6   for a public school academy to be eligible for a grant under this           

                                                                                

7   section, the public school academy must be located in a district            

                                                                                

8   that is eligible under this subsection.                                     

                                                                                

9       (6) From the allocation in subsection (1), there is allocated               

                                                                                

10  for 2001-2002 an amount not to exceed $43,000,000.00 and for                

                                                                                

11  2002-2003 and 2003-2004 $0.00, for competitive grants to eligible           

                                                                                

12  districts, to intermediate districts, and to public school                  

                                                                                

13  academies located within eligible districts for reading                     

                                                                                

14  improvements programs for pupils in grades K to 4, reading                  

                                                                                

15  disorders and reading methods programs, mentoring programs,                 

                                                                                

16  language and literacy outreach programs, or cognitive development           

                                                                                

17  programs.  For 2001-2002, grants under this subsection shall be             

                                                                                

18  paid to grant recipients in the same proportion of the total                

                                                                                

19  allocation under this subsection as for 2000-2001.  If the                  

                                                                                

20  legislature enacts legislation authorizing the appropriation of             

                                                                                

21  federal funds for reading improvement programs for 2001-2002, for           

                                                                                

22  2002-2003, or for 2003-2004, then it is the intent of the                   

                                                                                

23  legislature that these funds be used to the extent possible for             

                                                                                

24  the purposes of this subsection.  Federal funds received for                

                                                                                

25  reading improvement programs that can be used for substantially             

                                                                                

26  similar purposes as described under this section shall be first             

                                                                                

27  expended for the purposes of this subsection before funds                   


                                                                                

1   appropriated from the state school aid fund allocated under this            

                                                                                

2   subsection, and the expenditure of funds under this subsection              

                                                                                

3   from the state school aid fund shall be reduced by an amount                

                                                                                

4   equal to the amount of the expenditure of federal funds under               

                                                                                

5   this subsection.  If any conflict exists between federal reading            

                                                                                

6   program guidelines and this section, federal law will control.              

                                                                                

7       (7) Except as otherwise provided in subsection (17), to                     

                                                                                

8   qualify for funding under this section, a proposed reading                  

                                                                                

9   improvement program must meet all of the following:                         

                                                                                

10      (a) The program shall include assessment of reading skills of               

                                                                                

11  pupils in grades K to 4 to identify those pupils who are reading            

                                                                                

12  below grade level and must provide special reading assistance for           

                                                                                

13  these pupils.                                                               

                                                                                

14      (b) The program shall be a research-based, validated,                       

                                                                                

15  structured reading program.                                                 

                                                                                

16      (c) The program shall include continuous assessment of pupils               

                                                                                

17  and individualized education plans for pupils.                              

                                                                                

18      (d) The program shall align learning resources to state                     

                                                                                

19  standards.                                                                  

                                                                                

20      (e) For each school building receiving funding under this                   

                                                                                

21  section for a reading improvement program, the program shall                

                                                                                

22  serve at least 25% of pupils who are identified as at-risk, as              

                                                                                

23  determined by the Michigan literacy progress profile, of reading            

                                                                                

24  failure, and the amount of the grant shall not exceed $85,000.00            

                                                                                

25  per school building annually.                                               

                                                                                

26      (8) Funds allocated for programs described in subsection (7)                

                                                                                

27  may be used to reimburse grant recipients for funds paid by                 


                                                                                

1   districts for up to 1/2 of the salaries and benefits for each               

                                                                                

2   teacher trained and certified to provide a reading improvement              

                                                                                

3   program.                                                                    

                                                                                

4       (9) Except as otherwise provided under subsection (17), to                  

                                                                                

5   qualify for funding under this section, a proposed mentoring                

                                                                                

6   program must be a research-based, validated program or a                    

                                                                                

7   statewide 1-to-1 mentoring program to enhance the independence              

                                                                                

8   and life quality of pupils who are mentally impaired by providing           

                                                                                

9   opportunities for mentoring and integrated employment.                      

                                                                                

10      (10) Except as otherwise provided under subsection (17), to                 

                                                                                

11  qualify for funding under this section, a proposed cognitive                

                                                                                

12  development program must be a research-based, validated                     

                                                                                

13  educational service program, focused on assessing and building              

                                                                                

14  essential cognitive and perceptual learning abilities to                    

                                                                                

15  strengthen pupil concentration and learning.                                

                                                                                

16      (11) Except as otherwise provided under subsection (17), to                 

                                                                                

17  qualify for funding under this section, a proposed structured               

                                                                                

18  mentoring-tutorial reading program for preschool to grade 4                 

                                                                                

19  pupils must be a research-based, validated program that develops            

                                                                                

20  individualized instructional plans based on each pupil's age,               

                                                                                

21  assessed needs, reading level, interests, and learning style.               

                                                                                

22      (12) A program receiving funding under this section may be                  

                                                                                

23  conducted outside of regular school hours or outside the regular            

                                                                                

24  school calendar.                                                            

                                                                                

25      (13) To compete for a grant under this section, an applicant                

                                                                                

26  shall apply to the superintendent in the form and manner                    

                                                                                

27  prescribed by the superintendent.  The department shall make                


                                                                                

1   applications available for this purpose.  An applicant shall                

                                                                                

2   include in its application a projected budget for the programs.             

                                                                                

3   The grant recipient shall provide at least a 20% local match from           

                                                                                

4   local public or private resources for the funds received under              

                                                                                

5   this section.  Not more than 1/2 of this matching requirement, up           

                                                                                

6   to a total of 10% of the total project budget, may be satisfied             

                                                                                

7   through in-kind services provided by participating providers of             

                                                                                

8   programs or services.  In addition, not more than 10% of the                

                                                                                

9   grant may be used for program administration.                               

                                                                                

10      (14) The superintendent shall approve or disapprove                         

                                                                                

11  applications and notify the applicant of that decision.  Priority           

                                                                                

12  in awarding grants shall be given to programs that focus on                 

                                                                                

13  accelerating student achievement on a cost-effective basis,                 

                                                                                

14  reducing the number of pupils requiring special education                   

                                                                                

15  programs and services, and improving pupil scores on standardized           

                                                                                

16  tests and assessments.                                                      

                                                                                

17      (15) A grant recipient receiving funds under this section                   

                                                                                

18  shall report to the department, in the form and manner prescribed           

                                                                                

19  by the department, on the results achieved by the program.  At a            

                                                                                

20  minimum, the grant recipient shall report to the department by              

                                                                                

21  October 15 regarding the program's impact on reducing the number            

                                                                                

22  of pupils requiring special education programs and services and             

                                                                                

23  on improving pupil scores on standardized tests and assessments,            

                                                                                

24  and information on the costs and benefits per unit of pupil                 

                                                                                

25  improvement.  In addition, the report shall state the number of             

                                                                                

26  pupils eligible for free or reduced price school lunch who                  

                                                                                

27  received services under the program and the total number of                 


                                                                                

1   pupils who received services under the program.  Not later than             

                                                                                

2   November 15 of each fiscal year, the department shall submit a              

                                                                                

3   report to the legislature, the state budget director, and the               

                                                                                

4   senate and house fiscal agencies detailing the results of the               

                                                                                

5   programs.  It is the intent of the legislature that further                 

                                                                                

6   funding for the programs under this section will reflect the                

                                                                                

7   results achieved in these programs.                                         

                                                                                

8       (16) Notwithstanding section 17b, payments under this section               

                                                                                

9   shall be paid on a schedule determined by the department.                   

                                                                                

10      (17) For a district or public school academy awarded a grant                

                                                                                

11  under former section 32, the determination of whether the                   

                                                                                

12  district or public school academy is eligible for a grant under             

                                                                                

13  this section may be made according to the eligibility standards             

                                                                                

14  in effect under former section 32.  Further, the district or                

                                                                                

15  public school academy may continue to use the grant proceeds for            

                                                                                

16  any use permissible under this section or former section 32 as in           

                                                                                

17  effect at the time the district or public school academy was                

                                                                                

18  awarded the grant.                                                          

                                                                                

19      (18) If the maximum amount appropriated under this section                  

                                                                                

20  exceeds the amount necessary to fully fund allocations under this           

                                                                                

21  section, that excess amount shall not be expended in that state             

                                                                                

22  fiscal year but shall instead be carried forward to the                     

                                                                                

23  succeeding fiscal year and added to any funds appropriated for              

                                                                                

24  that fiscal year for expenditure in that fiscal year.                       

                                                                                

25      (19) A district that received funding for 1999-2000 under                   

                                                                                

26  former section 32 shall receive funding under this section for              

                                                                                

27  2001-2002.                                                                  


                                                                                

1       (20) A district or intermediate district receiving funds                    

                                                                                

2   under this section may carry over any unexpended funds received             

                                                                                

3   under this section to subsequent fiscal years and may expend                

                                                                                

4   those unused funds in subsequent fiscal years.                              

                                                                                

5       Sec. 32j.  (1) From the  appropriation  allocation in                       

                                                                                

6   section  11  81, there is allocated an amount not to exceed                 

                                                                                

7   $3,326,000.00 for  2003-2004  2004-2005 for great parents, great            

                                                                                

8   start grants to intermediate districts to provide programs for              

                                                                                

9   parents with preschool children.  The purpose of these programs             

                                                                                

10  is to encourage early literacy, improve school readiness, reduce            

                                                                                

11  the need for special education services, and foster the                     

                                                                                

12  maintenance of stable families by encouraging positive parenting            

                                                                                

13  skills.                                                                     

                                                                                

14      (2) To qualify for funding under this section, a program                    

                                                                                

15  shall provide services to all families with children age 5 or               

                                                                                

16  younger residing within the intermediate district who choose to             

                                                                                

17  participate, including at least all of the following services:              

                                                                                

18      (a) Providing parents with information on child development                 

                                                                                

19  from birth to age 5.                                                        

                                                                                

20      (b) Providing parents with methods to enhance parent-child                  

                                                                                

21  interaction; including, but not limited to, encouraging parents             

                                                                                

22  to read to their preschool children at least 1/2 hour per day.              

                                                                                

23      (c) Providing parents with examples of learning opportunities               

                                                                                

24  to promote intellectual, physical, and social growth of                     

                                                                                

25  preschoolers.                                                               

                                                                                

26      (d) Promoting access to needed community services through a                 

                                                                                

27  community-school-home partnership.                                          


                                                                                

1       (e) Promoting marriage.                                                     

                                                                                

2       (3) To  compete for  receive a grant under this section, an                 

                                                                                

3   intermediate district shall  apply  submit a plan to the                    

                                                                                

4   department not later than October 1,  2003  2004 in the form and            

                                                                                

5   manner prescribed by the department.   To be considered for a               

                                                                                

6   grant under this section, a grant application  The plan shall do            

                                                                                

7   all of the following in a manner prescribed by the department:              

                                                                                

8       (a) Provide a plan for the delivery of the program components               

                                                                                

9   described in subsection (2) that provides for educators trained             

                                                                                

10  in child development to help parents understand their role in               

                                                                                

11  their child's developmental process, thereby promoting school               

                                                                                

12  readiness and mitigating the need for special education                     

                                                                                

13  services.                                                                   

                                                                                

14      (b) Demonstrate an adequate collaboration of local entities                 

                                                                                

15  involved in providing programs and services for preschool                   

                                                                                

16  children and their parents.                                                 

                                                                                

17      (c) Provide a projected budget for the program to be funded.                

                                                                                

18  The intermediate district shall provide at least a 20% local                

                                                                                

19  match from local public or private resources for the funds                  

                                                                                

20  received under this section.  Not more than 1/2 of this matching            

                                                                                

21  requirement, up to a total of 10% of the total project budget,              

                                                                                

22  may be satisfied through in-kind services provided by                       

                                                                                

23  participating providers of programs or services.  In addition,              

                                                                                

24  not more than 10% of the grant may be used for program                      

                                                                                

25  administration.                                                             

                                                                                

26      (4) Each  successful grant recipient  intermediate district                 

                                                                                

27  receiving a grant under this section shall agree to include a               


                                                                                

1   data collection system  and an evaluation tool  approved by the             

                                                                                

2   department.  to measure the impact of the program on improving              

                                                                                

3   school readiness and fostering the maintenance of stable                    

                                                                                

4   families.  The data collection system shall provide a report by             

                                                                                

5   October 15 of each year on the number of children in families               

                                                                                

6   with income below 200% of the federal poverty level that received           

                                                                                

7   services under this program and the total number of children who            

                                                                                

8   received services under this program.                                       

                                                                                

9       (5) The department or superintendent, as applicable, shall do               

                                                                                

10  all of the following:                                                       

                                                                                

11      (a) The department shall make applications available for the                

                                                                                

12  purposes of this section not later than August 15, 2003.                    

                                                                                

13      (a)  (b)  The superintendent shall approve or disapprove                    

                                                                                

14  applications  the plans and notify the  applying  intermediate             

                                                                                

15  district of that decision not later than November 15,  2003                 

                                                                                

16  2004.  The amount  of each approved grant shall not exceed                  

                                                                                

17  allocated by each intermediate district shall be at least an                

                                                                                

18  amount equal to 3.5% of the intermediate district's 2002-2003               

                                                                                

19  payment under section 81.                                                   

                                                                                

20      (b)  (c)  The department shall ensure that all programs                     

                                                                                

21  funded under this section utilize the most current validated                

                                                                                

22  research-based methods and curriculum for providing the program             

                                                                                

23  components described in subsection (2).                                     

                                                                                

24      (c)  (d)  The department shall submit a report to the state                 

                                                                                

25  budget director and the senate and house fiscal agencies                    

                                                                                

26  detailing the evaluations  summarizing the data collection                 

                                                                                

27  reports described in subsection (4) by December 1 of each year.             


                                                                                

1       (6) An intermediate district receiving funds under this                     

                                                                                

2   section shall use the funds only for the program funded under               

                                                                                

3   this section.  An intermediate district receiving funds under               

                                                                                

4   this section may carry over any unexpended funds received under             

                                                                                

5   this section to subsequent fiscal years and may expend those                

                                                                                

6   unused funds in subsequent fiscal years.                                    

                                                                                

7       Sec. 32k.  (1) From the funds appropriated in section 11,                   

                                                                                

8   there is allocated an amount not to exceed $0.00 for a statewide            

                                                                                

9   before- or after-school program to provide youth with a safe,               

                                                                                

10  engaging environment to motivate and inspire learning outside the           

                                                                                

11  traditional classroom setting.  Before-school programs are                  

                                                                                

12  limited to elementary school-aged children.  Effective before- or           

                                                                                

13  after-school programs combine academic, enrichment, and                     

                                                                                

14  recreation activities to guide learning and inspire children and            

                                                                                

15  youth in various activities.  The before- or after-school                   

                                                                                

16  programs can meet the needs of the communities served by the                

                                                                                

17  programs.                                                                   

                                                                                

18      (2) The department shall work in collaboration with the                     

                                                                                

19  family independence agency under this section.                              

                                                                                

20      (3) The department shall, through a competitive bid process,                

                                                                                

21  provide grants or contracts up to $0.00 in state school aid funds           

                                                                                

22  for the program based on community needs.  A county shall receive           

                                                                                

23  no more than 20% of the funds allocated under this section for              

                                                                                

24  this program.  The use of funds under this section should not be            

                                                                                

25  considered an ongoing commitment of funding.                                

                                                                                

26      (4) The before- or after-school programs funded under this                  

                                                                                

27  section shall include, at a minimum, at least 3 of the following            


                                                                                

1   topics:                                                                     

                                                                                

2       (a) Abstinence-based pregnancy prevention.                                  

                                                                                

3       (b) Chemical abuse and dependency including nonmedical                      

                                                                                

4   services.                                                                   

                                                                                

5       (c) Gang violence prevention.                                               

                                                                                

6       (d) Academic assistance, including assistance with reading                  

                                                                                

7   and writing.                                                                

                                                                                

8       (e) Preparation toward future self-sufficiency.                             

                                                                                

9       (f) Leadership development.                                                 

                                                                                

10      (g) Case management or mentoring.                                           

                                                                                

11      (h) Parental involvement.                                                   

                                                                                

12      (i) Anger management.                                                       

                                                                                

13      (5) The department may enter into grants or contracts with                  

                                                                                

14  independent contractors including, but not limited to,                      

                                                                                

15  faith-based organizations, boys or girls clubs, schools, or                 

                                                                                

16  nonprofit organizations.  The department shall grant priority in            

                                                                                

17  funding independent contractors who secure at least 25% in                  

                                                                                

18  matching funds.  The matching funds may either be fulfilled                 

                                                                                

19  through local, state, or federal funds, or through in-kind or               

                                                                                

20  other donations.                                                            

                                                                                

21      (6) A referral to a program may be made by, but is not                      

                                                                                

22  limited to, any of the following:  a teacher, counselor, parent,            

                                                                                

23  police officer, judge, or social worker.                                    

                                                                                

24      (7) By August 30, 2005, the department before- or                           

                                                                                

25  after-school program expenditures shall be audited and the                  

                                                                                

26  department shall work in collaboration with independent                     

                                                                                

27  contractors to provide a report on the before- or after-school              


                                                                                

1   program to the senate and house standing committees dealing with            

                                                                                

2   human services and education, the senate and house appropriations           

                                                                                

3   subcommittees for this act, the senate and house fiscal agencies,           

                                                                                

4   and the senate and house policy offices.  The report shall                  

                                                                                

5   include the number of participants and the average cost per                 

                                                                                

6   participant, as well as changes noted in program participants in            

                                                                                

7   any of the following categories:                                            

                                                                                

8       (a) Juvenile crime.                                                         

                                                                                

9       (b) Aggressive behavior.                                                    

                                                                                

10      (c) Academic achievement.                                                   

                                                                                

11      (d) Development of new skills and interests.                                

                                                                                

12      (e) School attendance and dropout rates.                                    

                                                                                

13      (f) Behavioral changes in school.                                           

                                                                                

14      (8) Private foundations may contribute funding to this                      

                                                                                

15  program, as determined by the department.                                   

                                                                                

16      Sec. 37.  (1) A district is eligible for an allocation under                

                                                                                

17  section 32d if the district meets all of the requirements in                

                                                                                

18  subsections (2), (3), and (4).                                              

                                                                                

19      (2) The district shall submit a preapplication, in a manner                 

                                                                                

20  and on forms prescribed by the department, by a date specified by           

                                                                                

21  the department in the immediately preceding state fiscal year.              

                                                                                

22  The preapplication shall include a comprehensive needs assessment           

                                                                                

23  and community collaboration plan, and shall identify all of the             

                                                                                

24  following:                                                                  

                                                                                

25      (a) The estimated total number of children in the community                 

                                                                                

26  who meet the criteria of section 32d and how that calculation was           

                                                                                

27  made.                                                                       


                                                                                

1       (b) The estimated number of children in the community who                   

                                                                                

2   meet the criteria of section 32d and are being served by other              

                                                                                

3   early childhood development programs operating in the community,            

                                                                                

4   and how that calculation was made.                                          

                                                                                

5       (c) The number of children the district will be able to serve               

                                                                                

6   who meet the criteria of section 32d including a verification of            

                                                                                

7   physical facility and staff resources capacity.                             

                                                                                

8       (d) The estimated number of children who meet the criteria of               

                                                                                

9   section 32d who will remain unserved after the district and                 

                                                                                

10  community early childhood programs have met their funded                    

                                                                                

11  enrollments.  The school district shall maintain a waiting list             

                                                                                

12  of identified unserved eligible children who would be served when           

                                                                                

13  openings are available.                                                     

                                                                                

14      (3) The district shall submit a final application for                       

                                                                                

15  approval, in a manner and on forms prescribed by the department,            

                                                                                

16  by a date specified by the department.  The final application               

                                                                                

17  shall indicate all of the following that apply:                             

                                                                                

18      (a) The district complies with the state board approved                     

                                                                                

19  standards of quality and curriculum guidelines for early                    

                                                                                

20  childhood programs for 4-year-olds.                                         

                                                                                

21      (b) The district provides for the active and continuous                     

                                                                                

22  participation of parents or guardians of the children in the                

                                                                                

23  program, and describes the district's participation plan as part            

                                                                                

24  of the application.                                                         

                                                                                

25      (c) The district only employs for this program the                          

                                                                                

26  following:                                                                  

                                                                                

27                                                                               (i) Teachers possessing proper training, including, but not                         


                                                                                

1   limited to, a valid teaching certificate and an early childhood             

                                                                                

2   (ZA) endorsement.  This provision does not apply to a district              

                                                                                

3   that subcontracts with an eligible child development program.  In           

                                                                                

4   that situation a teacher must have  a  proper training in early             

                                                                                

5   childhood development equivalent to 4 years of formal training in           

                                                                                

6   early childhood/preschool education or child development.  This             

                                                                                

7   may include 1 or more of the following:                                     

                                                                                

8       (A) A valid Michigan teaching certificate  and may have a                   

                                                                                

9   child development associate credential (CDA) instead of  with an            

                                                                                

10  early childhood (ZA) endorsement.                                           

                                                                                

11      (B) A valid Michigan teaching certificate with a child                      

                                                                                

12  development associate credential (CDA).                                     

                                                                                

13      (C) A bachelor's degree in child care or child development.                 

                                                                                

14      (D) A child development associate credential (CDA) combined                 

                                                                                

15  with an associate of arts (AA) degree in early                              

                                                                                

16  childhood/preschool education or child development.                         

                                                                                

17      (ii) Paraprofessionals possessing proper training in early                   

                                                                                

18  childhood development or who have completed at least 1 course in            

                                                                                

19  an appropriate training program, including, but not limited to, a           

                                                                                

20  child development associate credential (CDA) or associate degree            

                                                                                

21  in child development or other similar program, as approved by the           

                                                                                

22  department.                                                                 

                                                                                

23      (d) The district has submitted for approval a program budget                

                                                                                

24  that includes only those costs not reimbursed or reimbursable by            

                                                                                

25  federal funding, that are clearly and directly attributable to              

                                                                                

26  the early childhood readiness program, and that would not be                

                                                                                

27  incurred if the program were not being offered.  If children                


                                                                                

1   other than those determined to be educationally disadvantaged               

                                                                                

2   participate in the program, state reimbursement under section 32d           

                                                                                

3   shall be limited to the portion of approved costs attributable to           

                                                                                

4   educationally disadvantaged children.                                       

                                                                                

5       (e) The district has established a school readiness advisory                

                                                                                

6   committee consisting of, at a minimum, classroom teachers for               

                                                                                

7   prekindergarten, kindergarten, and first grade; parents or                  

                                                                                

8   guardians of program participants; representatives from                     

                                                                                

9   appropriate community agencies and organizations; the district              

                                                                                

10  curriculum director or equivalent administrator; and, if                    

                                                                                

11  feasible, a school psychologist, school social worker, or school            

                                                                                

12  counselor.  In addition, there shall be on the committee at least           

                                                                                

13  1 parent or guardian of a program participant for every 18                  

                                                                                

14  children enrolled in the program, with a minimum of 2 parent or             

                                                                                

15  guardian representatives.  The committee shall do all of the                

                                                                                

16  following:                                                                  

                                                                                

17                                                                               (i) Ensure the ongoing articulation of the early childhood,                         

                                                                                

18  kindergarten, and first grade programs offered by the district.             

                                                                                

19      (ii) Review the mechanisms and criteria used to determine                    

                                                                                

20  participation in the early childhood program.                               

                                                                                

21      (iii) Review the health screening program for all                            

                                                                                

22  participants.                                                               

                                                                                

23      (iv) Review the nutritional services provided to program                     

                                                                                

24  participants.                                                               

                                                                                

25      (v) Review the mechanisms in place for the referral of                      

                                                                                

26  families to community social service agencies, as appropriate.              

                                                                                

27      (vi) Review the collaboration with and the involvement of                    


                                                                                

1   appropriate community, volunteer, and social service agencies and           

                                                                                

2   organizations in addressing all aspects of educational                      

                                                                                

3   disadvantage.                                                               

                                                                                

4       (vii) Review, evaluate, and make recommendations to a local                  

                                                                                

5   school readiness program or programs for changes to the school              

                                                                                

6   readiness program.                                                          

                                                                                

7       (f) The district has submitted for departmental approval a                  

                                                                                

8   plan to conduct and report annual school readiness program                  

                                                                                

9   evaluations using criteria approved by the department.  At a                

                                                                                

10  minimum, the evaluations shall include assessment of the gains in           

                                                                                

11  educational readiness and progress through first grade of                   

                                                                                

12  children participating in the school readiness program.                     

                                                                                

13      (g) More than 50% of the children participating in the                      

                                                                                

14  program meet the income eligibility criteria for free or reduced            

                                                                                

15  price lunch, as determined under the Richard B. Russell national            

                                                                                

16  school lunch act,  chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to             

                                                                                

17  1753, 1755 to 1761, 1762a, 1765 to 1766a, 1769, 1769b to 1769c,             

                                                                                

18  and 1769f  42 USC 1751 to 1769h, or meet the income and all other           

                                                                                

19  eligibility criteria for the family independence agency unified             

                                                                                

20  child day care program.                                                     

                                                                                

21      (4) A consortium of 2 or more districts shall be eligible for               

                                                                                

22  an allocation under section 32d if the districts designate a                

                                                                                

23  single fiscal agent for the allocation.  A district or                      

                                                                                

24  intermediate district may administer a consortium described in              

                                                                                

25  this subsection.  A consortium shall submit a single                        

                                                                                

26  preapplication and application for the children to be served,               

                                                                                

27  regardless of the number of districts participating in the                  


                                                                                

1   consortium.                                                                 

                                                                                

2       (5) With the final application, an applicant district shall                 

                                                                                

3   submit to the department a resolution adopted by its board                  

                                                                                

4   certifying the number of 4-year-old children who show evidence of           

                                                                                

5   risk factors as described in section 32d who meet the income                

                                                                                

6   eligibility criteria for free or reduced price lunch or the                 

                                                                                

7   income and all other eligibility criteria for the family                    

                                                                                

8   independence agency unified child day care program, and who will            

                                                                                

9   participate in a school readiness program funded under section              

                                                                                

10  32d.                                                                        

                                                                                

11      Sec. 39a.  (1) From the  appropriation  federal funds                       

                                                                                

12  appropriated in section 11, there is allocated for  2003-2004               

                                                                                

13  2004-2005 to districts, intermediate districts, and other                   

                                                                                

14  eligible entities all available federal funding, estimated at               

                                                                                

15  $665,458,500.00  $637,809,700.00, for the federal programs under           

                                                                                

16  the no child left behind act of 2001, Public Law 107-110.  , 115            

                                                                                

17  Stat. 1425.  These funds are allocated  for each fiscal year  as            

                                                                                

18  follows:                                                                    

                                                                                

19      (a) An amount estimated at $1,666,300.00 for community                      

                                                                                

20  service state grants, funded from DED-OESE, community service               

                                                                                

21  state grant funds.                                                          

                                                                                

22      (a)  (b)  An amount estimated at  $15,946,200.00                            

                                                                                

23  $12,095,000.00 to provide students with drug- and                           

                                                                                

24  violence-prevention programs and to implement strategies to                 

                                                                                

25  improve school safety, funded from DED-OESE, drug-free schools              

                                                                                

26  and communities funds.                                                      

                                                                                

27      (b)  (c)  An amount estimated at  $14,546,300.00                            


                                                                                

1   $9,520,500.00 for the purpose of improving teaching and learning            

                                                                                

2   through a more effective use of technology, funded from DED-OESE,           

                                                                                

3   educational technology state grant funds.                                   

                                                                                

4       (c)  (d)  An amount estimated at  $105,570,600.00                           

                                                                                

5   $105,565,700.00 for the purpose of preparing, training, and                 

                                                                                

6   recruiting high-quality teachers and class size reduction, funded           

                                                                                

7   from DED-OESE, improving teacher quality funds.                             

                                                                                

8       (d)  (e)  An amount estimated at  $4,647,700.00                             

                                                                                

9   $5,713,700.00 for programs to teach English to limited English              

                                                                                

10  proficient (LEP) children, funded from DED-OESE, language                   

                                                                                

11  acquisition state grant funds.                                              

                                                                                

12      (e)  (f)  An amount estimated at $8,550,000.00 for the                      

                                                                                

13  Michigan charter school subgrant program, funded from DED-OESE,             

                                                                                

14  charter school funds.                                                       

                                                                                

15      (f)  (g)  An amount estimated at  $247,600.00  $332,700.00                  

                                                                                

16  for Michigan model partnership for character education programs,            

                                                                                

17  funded from DED-OESE, title X, fund for improvement of education            

                                                                                

18  funds.                                                                      

                                                                                

19      (g)  (h)  An amount estimated at  $2,010,100.00  $469,900.00                

                                                                                

20  for rural and low income schools, funded from DED-OESE, rural and           

                                                                                

21  low income school funds.                                                    

                                                                                

22      (h)  (i)  An amount estimated at  $11,123,700.00                            

                                                                                

23  $9,563,000.00 to help schools develop and implement comprehensive           

                                                                                

24  school reform programs, funded from DED-OESE, title I and title             

                                                                                

25  X, comprehensive school reform funds.                                       

                                                                                

26      (i)  (j)  An amount estimated at  $427,000,000.00                           

                                                                                

27  $411,090,000.00 to provide supplemental programs to enable                  


                                                                                

1   educationally disadvantaged children to meet challenging academic           

                                                                                

2   standards, funded from DED-OESE, title I, disadvantaged children            

                                                                                

3   funds.                                                                      

                                                                                

4       (j)  (k)  An amount estimated at  $8,246,600.00                             

                                                                                

5   $6,622,900.00 for the purpose of providing unified family                   

                                                                                

6   literacy programs, funded from DED-OESE, title I, even start                

                                                                                

7   funds.                                                                      

                                                                                

8       (k)  (l)  An amount estimated at  $8,953,100.00                             

                                                                                

9   $8,175,200.00 for the purpose of identifying and serving migrant            

                                                                                

10  children, funded from DED-OESE, title I, migrant education                  

                                                                                

11  funds.                                                                      

                                                                                

12                                                                               (l)  (m)  An amount estimated at  $22,779,000.00                                     

                                                                                

13  $21,936,600.00 to promote high-quality school reading instruction           

                                                                                

14  for grades K-3, funded from DED-OESE, title I, reading first                

                                                                                

15  state grant funds.                                                          

                                                                                

16      (m)  (n)  An amount estimated at  $13,475,000.00                            

                                                                                

17  $8,582,300.00 for the purpose of implementing innovative                    

                                                                                

18  strategies for improving student achievement, funded from                   

                                                                                

19  DED-OESE, title VI, innovative strategies funds.                            

                                                                                

20      (n)  (o)  An amount estimated at  $20,696,300.00                            

                                                                                

21  $29,592,200.00 for the purpose of providing high-quality extended           

                                                                                

22  learning opportunities, after school and during the summer, for             

                                                                                

23  children in low-performing schools, funded from DED-OESE,                   

                                                                                

24  twenty-first century community learning center funds.  Of these             

                                                                                

25  funds, $25,000.00 may be used to support the Michigan                       

                                                                                

26  after-school partnership.  All of the following apply to the                

                                                                                

27  Michigan after-school partnership:                                          


                                                                                

1                                                                                (i) The department shall collaborate with the Michigan family                       

                                                                                

2   independence agency to extend the duration of the Michigan                  

                                                                                

3   after-school initiative, to be renamed the Michigan after-school            

                                                                                

4   partnership and oversee its efforts to implement the policy                 

                                                                                

5   recommendations and strategic next steps identified in the                  

                                                                                

6   Michigan after-school initiative's report of December 15, 2003.             

                                                                                

7       (ii) Funds shall be used to leverage other private and public                

                                                                                

8   funding to engage the public and private sectors in building and            

                                                                                

9   sustaining high quality out-of-school-time programs and                     

                                                                                

10  resources.  The cochairs, representing the department and the               

                                                                                

11  Michigan family independence agency, shall name a fiduciary agent           

                                                                                

12  and may authorize the fiduciary to expend funds and hire people             

                                                                                

13  to accomplish the work of the Michigan after-school partnership.            

                                                                                

14      (iii) Participation in the Michigan after-school partnership                 

                                                                                

15  shall be expanded beyond the membership of the initial Michigan             

                                                                                

16  after-school initiative to increase the representation of                   

                                                                                

17  parents, youth, foundations, employers, and others with                     

                                                                                

18  experience in education, child care, after-school and youth                 

                                                                                

19  development services, and crime and violence prevention, and to             

                                                                                

20  include representation from the Michigan department of community            

                                                                                

21  health.  Each year, on or before December 31, the Michigan                  

                                                                                

22  after-school partnership shall report its progress in reaching              

                                                                                

23  the recommendations set forth in the Michigan after-school                  

                                                                                

24  initiative's report to the legislature and the governor.                    

                                                                                

25      (2) From the federal funds  appropriation  appropriated in                  

                                                                                

26  section 11, there is allocated for  2003-2004  2004-2005 to                 

                                                                                

27  districts, intermediate districts, and other eligible entities              


                                                                                

1   all available federal funding, estimated at  $5,421,800.00 each             

                                                                                

2   fiscal year  $5,427,500.00, for the following programs that are             

                                                                                

3   funded by federal grants:                                                   

                                                                                

4       (a) An amount estimated at $600,000.00 for acquired                         

                                                                                

5   immunodeficiency syndrome education grants, funded from                     

                                                                                

6   HHS-center for disease control, AIDS funding.                               

                                                                                

7       (b) An amount estimated at  $1,553,500.00  $953,500.00 for                  

                                                                                

8   emergency services to immigrants, funded from DED-OBEMLA,                   

                                                                                

9   emergency immigrant education assistance funds.                             

                                                                                

10      (c) An amount estimated at  $1,468,300.00  $1,428,400.00 to                 

                                                                                

11  provide services to homeless children and youth, funded from                

                                                                                

12  DED-OVAE, homeless children and youth funds.                                

                                                                                

13      (d) An amount estimated at $1,000,000.00 for refugee children               

                                                                                

14  school impact grants, funded from HHS-ACF, refugee children                 

                                                                                

15  school impact funds.                                                        

                                                                                

16      (e) An amount estimated at  $800,000.00  $1,445,600.00 for                  

                                                                                

17  serve America grants, funded from the corporation for national              

                                                                                

18  and community service funds.                                                

                                                                                

19      (3) All federal funds allocated under this section shall be                 

                                                                                

20  distributed in accordance with federal law and with flexibility             

                                                                                

21  provisions outlined in Public Law 107-116,  115 Stat. 2177  and             

                                                                                

22  in the education flexibility partnership act of 1999, Public Law            

                                                                                

23  106-25.  , 113 Stat. 41.  Notwithstanding section 17b, payments             

                                                                                

24  of federal funds to districts, intermediate districts, and other            

                                                                                

25  eligible entities under this section shall be paid on a schedule            

                                                                                

26  determined by the department.                                               

                                                                                

27      (4) As used in this section:                                                


                                                                                

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

                                                                                

2       (b) "DED-OBEMLA" means the DED office of bilingual education                

                                                                                

3   and minority languages affairs.                                             

                                                                                

4       (c) "DED-OESE" means the DED office of elementary and                       

                                                                                

5   secondary education.                                                        

                                                                                

6       (d) "DED-OVAE" means the DED office of vocational and adult                 

                                                                                

7   education.                                                                  

                                                                                

8       (e) "HHS" means the United States department of health and                  

                                                                                

9   human services.                                                             

                                                                                

10      (f) "HHS-ACF" means the HHS administration for children and                 

                                                                                

11  families.                                                                   

                                                                                

12      Sec. 41.  From the appropriation in section 11, there is                    

                                                                                

13  allocated an amount not to exceed  $2,800,000.00  $2,799,900.00             

                                                                                

14  for  2003-2004  2004-2005 to applicant districts and intermediate           

                                                                                

15  districts offering programs of instruction for pupils of limited            

                                                                                

16  English-speaking ability under section 1153 of the revised school           

                                                                                

17  code, MCL 380.1153.  Reimbursement shall be on a per pupil basis            

                                                                                

18  and shall be based on the number of pupils of limited                       

                                                                                

19  English-speaking ability in membership on the pupil membership              

                                                                                

20  count day.  Funds allocated under this section shall be used                

                                                                                

21  solely for instruction in speaking, reading, writing, or                    

                                                                                

22  comprehension of English.  A pupil shall not be counted under               

                                                                                

23  this section or instructed in a program under this section for              

                                                                                

24  more than 3 years.                                                          

                                                                                

25      Sec. 41a.  From the federal funds appropriated in section                   

                                                                                

26  11, there is allocated an amount estimated at  $1,232,100.00                

                                                                                

27  $1,232,000.00 for 2004-2005 from the United States department of            


                                                                                

1   education - office of elementary and secondary education,                   

                                                                                

2   language acquisition state grant funds, to districts and                    

                                                                                

3   intermediate districts offering programs of instruction for                 

                                                                                

4   pupils of limited English-speaking ability.                                 

                                                                                

5       Sec. 51a.  (1) From the appropriation in section 11, there                  

                                                                                

6   is allocated for  2003-2004  2004-2005 an amount not to exceed              

                                                                                

7   $882,683,000.00  $906,183,000.00 from state sources and all                

                                                                                

8   available federal funding under sections 611 to 619 of part B of            

                                                                                

9   the individuals with disabilities education act,  title VI of               

                                                                                

10  Public Law 91-230, 20 U.S.C.  20 USC 1411 to 1419, estimated at             

                                                                                

11  $285,000,000.00  $329,850,000.00 plus any carryover federal                

                                                                                

12  funds from previous year appropriations.  The allocations under             

                                                                                

13  this subsection are for the purpose of reimbursing districts and            

                                                                                

14  intermediate districts for special education programs, services,            

                                                                                

15  and special education personnel as prescribed in article 3 of the           

                                                                                

16  revised school code, MCL 380.1701 to 380.1766; net tuition                  

                                                                                

17  payments made by intermediate districts to the Michigan schools             

                                                                                

18  for the deaf and blind; and special education programs and                  

                                                                                

19  services for pupils who are eligible for special education                  

                                                                                

20  programs and services according to statute or rule.  For meeting            

                                                                                

21  the costs of special education programs and services not                    

                                                                                

22  reimbursed under this article, a district or intermediate                   

                                                                                

23  district may use money in general funds or special education                

                                                                                

24  funds, not otherwise restricted, or contributions from districts            

                                                                                

25  to intermediate districts, tuition payments, gifts and                      

                                                                                

26  contributions from individuals, or federal funds that may be                

                                                                                

27  available for this purpose, as determined by the intermediate               


                                                                                

1   district plan prepared pursuant to article 3 of the revised                 

                                                                                

2   school code, MCL 380.1701 to 380.1766.  All federal funds                   

                                                                                

3   allocated under this section in excess of those allocated under             

                                                                                

4   this section for 2002-2003 may be distributed in accordance with            

                                                                                

5   the flexible funding provisions of the individuals with                     

                                                                                

6   disabilities education act, title VI of Public Law 91-230,                  

                                                                                

7   including, but not limited to, 34  C.F.R.  CFR 300.234 and                  

                                                                                

8   300.235.  Notwithstanding section 17b, payments of federal funds            

                                                                                

9   to districts, intermediate districts, and other eligible entities           

                                                                                

10  under this section shall be paid on a schedule determined by the            

                                                                                

11  department.                                                                 

                                                                                

12      (2) From the funds allocated under subsection (1), there is                 

                                                                                

13  allocated for  2003-2004  2004-2005 the amount necessary,                   

                                                                                

14  estimated at  $160,500,000.00  $169,100,000.00 for 2003-2004, for           

                                                                                

15  payments toward reimbursing districts and intermediate districts            

                                                                                

16  for 28.6138% of total approved costs of special education,                  

                                                                                

17  excluding costs reimbursed under section 53a, and 70.4165% of               

                                                                                

18  total approved costs of special education transportation.                   

                                                                                

19  Allocations under this subsection shall be made as follows:                 

                                                                                

20      (a) The initial amount allocated to a district under this                   

                                                                                

21  subsection toward fulfilling the specified percentages shall be             

                                                                                

22  calculated by multiplying the district's special education pupil            

                                                                                

23  membership, excluding pupils described in subsection (12), times            

                                                                                

24  the sum of the foundation allowance under section 20 of the                 

                                                                                

25  pupil's district of residence plus the amount of the district's             

                                                                                

26  per pupil allocation under section 20j(2), not to exceed                    

                                                                                

27  $6,500.00 adjusted by the dollar amount of the difference between           


                                                                                

1   the basic foundation allowance under section 20 for the current             

                                                                                

2   fiscal year and $5,000.00 minus $200.00, or, for a special                  

                                                                                

3   education pupil in membership in a district that is a public                

                                                                                

4   school academy or university school, times an amount equal to the           

                                                                                

5   amount per membership pupil calculated under section 20(6).  For            

                                                                                

6   an intermediate district, the amount allocated under this                   

                                                                                

7   subdivision toward fulfilling the specified percentages shall be            

                                                                                

8   an amount per special education membership pupil, excluding                 

                                                                                

9   pupils described in subsection (12), and shall be calculated in             

                                                                                

10  the same manner as for a district, using the foundation allowance           

                                                                                

11  under section 20 of the pupil's district of residence, not to               

                                                                                

12  exceed $6,500.00 adjusted by the dollar amount of the difference            

                                                                                

13  between the basic foundation allowance under section 20 for the             

                                                                                

14  current fiscal year and $5,000.00 minus $200.00, and that                   

                                                                                

15  district's per pupil allocation under section 20j(2).                       

                                                                                

16      (b) After the allocations under subdivision (a), districts                  

                                                                                

17  and intermediate districts for which the payments under                     

                                                                                

18  subdivision (a) do not fulfill the specified percentages shall be           

                                                                                

19  paid the amount necessary to achieve the specified percentages              

                                                                                

20  for the district or intermediate district.                                  

                                                                                

21      (3) From the funds allocated under subsection (1), there is                 

                                                                                

22  allocated for  2003-2004  2004-2005 the amount necessary,                   

                                                                                

23  estimated at  $2,600,000.00  $2,900,000.00, to make payments to             

                                                                                

24  districts and intermediate districts under this subsection.  If             

                                                                                

25  the amount allocated to a district or intermediate district for a           

                                                                                

26  fiscal year under subsection (2)(b) is less than the sum of the             

                                                                                

27  amounts allocated to the district or intermediate district for              


                                                                                

1   1996-97 under sections 52 and 58, there is allocated to the                 

                                                                                

2   district or intermediate district for the fiscal year an amount             

                                                                                

3   equal to that difference, adjusted by applying the same proration           

                                                                                

4   factor that was used in the distribution of funds under section             

                                                                                

5   52 in 1996-97 as adjusted to the district's or intermediate                 

                                                                                

6   district's necessary costs of special education used in                     

                                                                                

7   calculations for the fiscal year.  This adjustment is to reflect            

                                                                                

8   reductions in special education program operations between                  

                                                                                

9   1996-97 and subsequent fiscal years.  Adjustments for reductions            

                                                                                

10  in special education program operations shall be made in a manner           

                                                                                

11  determined by the department and shall include adjustments for              

                                                                                

12  program shifts.                                                             

                                                                                

13      (4) If the department determines that the sum of the amounts                

                                                                                

14  allocated for a fiscal year to a district or intermediate                   

                                                                                

15  district under subsection (2)(a) and (b) is not sufficient to               

                                                                                

16  fulfill the specified percentages in subsection (2), then the               

                                                                                

17  shortfall shall be paid to the district or intermediate district            

                                                                                

18  during the fiscal year beginning on the October 1 following the             

                                                                                

19  determination and payments under subsection (3) shall be adjusted           

                                                                                

20  as necessary.  If the department determines that the sum of the             

                                                                                

21  amounts allocated for a fiscal year to a district or intermediate           

                                                                                

22  district under subsection (2)(a) and (b) exceeds the sum of the             

                                                                                

23  amount necessary to fulfill the specified percentages in                    

                                                                                

24  subsection (2), then the department shall deduct the amount of              

                                                                                

25  the excess from the district's or intermediate district's                   

                                                                                

26  payments under this act for the fiscal year beginning on the                

                                                                                

27  October 1 following the determination and payments under                    


                                                                                

1   subsection (3) shall be adjusted as necessary.  However, if the             

                                                                                

2   amount allocated under subsection (2)(a) in itself exceeds the              

                                                                                

3   amount necessary to fulfill the specified percentages in                    

                                                                                

4   subsection (2), there shall be no deduction under this                      

                                                                                

5   subsection.                                                                 

                                                                                

6       (5) State funds shall be allocated on a total approved cost                 

                                                                                

7   basis.  Federal funds shall be allocated under applicable federal           

                                                                                

8   requirements, except that an amount not to exceed $3,500,000.00             

                                                                                

9   may be allocated by the department for  2003-2004  2004-2005 to             

                                                                                

10  districts or intermediate districts on a competitive grant basis            

                                                                                

11  for programs, equipment, and services that the department                   

                                                                                

12  determines to be designed to benefit or improve special education           

                                                                                

13  on a statewide scale.                                                       

                                                                                

14      (6) From the amount allocated in subsection (1), there is                   

                                                                                

15  allocated an amount not to exceed $2,200,000.00 for  2003-2004              

                                                                                

16  2004-2005 to reimburse 100% of the net increase in necessary                

                                                                                

17  costs incurred by a district or intermediate district in                    

                                                                                

18  implementing the revisions in the administrative rules for                  

                                                                                

19  special education that became effective on July 1, 1987.  As used           

                                                                                

20  in this subsection, "net increase in necessary costs" means the             

                                                                                

21  necessary additional costs incurred solely because of new or                

                                                                                

22  revised requirements in the administrative rules minus cost                 

                                                                                

23  savings permitted in implementing the revised rules.  Net                   

                                                                                

24  increase in necessary costs shall be determined in a manner                 

                                                                                

25  specified by the department.                                                

                                                                                

26      (7) For purposes of this article, all of the following                      

                                                                                

27  apply:                                                                      


                                                                                

1       (a) "Total approved costs of special education" shall be                    

                                                                                

2   determined in a manner specified by the department and may                  

                                                                                

3   include indirect costs, but shall not exceed 115% of approved               

                                                                                

4   direct costs for section 52 and section 53a programs.  The total            

                                                                                

5   approved costs include salary and other compensation for all                

                                                                                

6   approved special education personnel for the program, including             

                                                                                

7   payments for social security and medicare and public school                 

                                                                                

8   employee retirement system contributions.  The total approved               

                                                                                

9   costs do not include salaries or other compensation paid to                 

                                                                                

10  administrative personnel who are not special education personnel            

                                                                                

11  as defined in section 6 of the revised school code, MCL 380.6.              

                                                                                

12  Costs reimbursed by federal funds, other than those federal funds           

                                                                                

13  included in the allocation made under this article, are not                 

                                                                                

14  included.  Special education approved personnel not utilized full           

                                                                                

15  time in the evaluation of students or in the delivery of special            

                                                                                

16  education programs, ancillary, and other related services shall             

                                                                                

17  be reimbursed under this section only for that portion of time              

                                                                                

18  actually spent providing these programs and services, with the              

                                                                                

19  exception of special education programs and services provided to            

                                                                                

20  youth placed in child caring institutions or juvenile detention             

                                                                                

21  programs approved by the department to provide an on-grounds                

                                                                                

22  education program.                                                          

                                                                                

23      (b) Reimbursement for ancillary and other related services,                 

                                                                                

24  as defined by R 340.1701c of the Michigan administrative code,              

                                                                                

25  shall not be provided when those services are covered by and                

                                                                                

26  available through private group health insurance carriers or                

                                                                                

27  federal reimbursed program sources unless the department and                


                                                                                

1   district or intermediate district agree otherwise and that                  

                                                                                

2   agreement is approved by the state budget director.  Expenses,              

                                                                                

3   other than the incidental expense of filing, shall not be borne             

                                                                                

4   by the parent.  In addition, the filing of claims shall not delay           

                                                                                

5   the education of a pupil.  A district or intermediate district              

                                                                                

6   shall be responsible for payment of a deductible amount and for             

                                                                                

7   an advance payment required until the time a claim is paid.                 

                                                                                

8       (8) From the allocation in subsection (1), there is allocated               

                                                                                

9   for  2003-2004  2004-2005 an amount not to exceed $15,313,900.00            

                                                                                

10  to intermediate districts.  The payment under this subsection to            

                                                                                

11  each intermediate district shall be equal to the amount of the              

                                                                                

12  1996-97 allocation to the intermediate district under subsection            

                                                                                

13  (6) of this section as in effect for 1996-97.                               

                                                                                

14      (9) A pupil who is enrolled in a full-time special education                

                                                                                

15  program conducted or administered by an intermediate district or            

                                                                                

16  a pupil who is enrolled in the Michigan schools for the deaf and            

                                                                                

17  blind shall not be included in the membership count of a                    

                                                                                

18  district, but shall be counted in membership in the intermediate            

                                                                                

19  district of residence.                                                      

                                                                                

20      (10) Special education personnel transferred from 1 district                

                                                                                

21  to another to implement the revised school code shall be entitled           

                                                                                

22  to the rights, benefits, and tenure to which the person would               

                                                                                

23  otherwise be entitled had that person been employed by the                  

                                                                                

24  receiving district originally.                                              

                                                                                

25      (11) If a district or intermediate district uses money                      

                                                                                

26  received under this section for a purpose other than the purpose            

                                                                                

27  or purposes for which the money is allocated, the department may            


                                                                                

1   require the district or intermediate district to refund the                 

                                                                                

2   amount of money received.  Money that is refunded shall be                  

                                                                                

3   deposited in the state treasury to the credit of the state school           

                                                                                

4   aid fund.                                                                   

                                                                                

5       (12) From the funds allocated in subsection (1), there is                   

                                                                                

6   allocated for  2003-2004  2004-2005 the amount necessary,                   

                                                                                

7   estimated at  $6,300,000.00  $6,000,000.00, to pay the foundation           

                                                                                

8   allowances for pupils described in this subsection.  The                    

                                                                                

9   allocation to a district under this subsection shall be                     

                                                                                

10  calculated by multiplying the number of pupils described in this            

                                                                                

11  subsection who are counted in membership in the district times              

                                                                                

12  the sum of the foundation allowance under section 20 of the                 

                                                                                

13  pupil's district of residence plus the amount of the district's             

                                                                                

14  per pupil allocation under section 20j(2), not to exceed                    

                                                                                

15  $6,500.00 adjusted by the dollar amount of the difference between           

                                                                                

16  the basic foundation allowance under section 20 for the current             

                                                                                

17  fiscal year and $5,000.00 minus $200.00, or, for a pupil                    

                                                                                

18  described in this subsection who is counted in membership in a              

                                                                                

19  district that is a public school academy or university school,              

                                                                                

20  times an amount equal to the amount per membership pupil under              

                                                                                

21  section 20(6).  The allocation to an intermediate district under            

                                                                                

22  this subsection shall be calculated in the same manner as for a             

                                                                                

23  district, using the foundation allowance under section 20 of the            

                                                                                

24  pupil's district of residence, not to exceed $6,500.00 adjusted             

                                                                                

25  by the dollar amount of the difference between the basic                    

                                                                                

26  foundation allowance under section 20 for the current fiscal year           

                                                                                

27  and $5,000.00 minus $200.00, and that district's per pupil                  


                                                                                

1   allocation under section 20j(2).  This subsection applies to all            

                                                                                

2   of the following pupils:                                                    

                                                                                

3       (a) Pupils described in section 53a.                                        

                                                                                

4       (b) Pupils counted in membership in an intermediate district                

                                                                                

5   who are not special education pupils and are served by the                  

                                                                                

6   intermediate district in a juvenile detention or child caring               

                                                                                

7   facility.                                                                   

                                                                                

8       (c) Emotionally impaired pupils counted in membership by an                 

                                                                                

9   intermediate district and provided educational services by the              

                                                                                

10  department of community health.                                             

                                                                                

11      (13) After payments under subsections (2) and (12) and                      

                                                                                

12  section 51c, the remaining expenditures from the allocation in              

                                                                                

13  subsection (1) shall be made in the following order:                        

                                                                                

14      (a) 100% of the reimbursement required under section 53a.                   

                                                                                

15      (b) 100% of the reimbursement required under subsection (6).                

                                                                                

16      (c) 100% of the payment required under section 54.                          

                                                                                

17      (d) 100% of the payment required under subsection (3).                      

                                                                                

18      (e) 100% of the payment required under subsection (8).                      

                                                                                

19      (f) 100% of the payments under section 56.                                  

                                                                                

20      (14) The allocations under subsection (2), subsection (3),                  

                                                                                

21  and subsection (12) shall be allocations to intermediate                    

                                                                                

22  districts only and shall not be allocations to districts, but               

                                                                                

23  instead shall be calculations used only to determine the state              

                                                                                

24  payments under section 22b.                                                 

                                                                                

25      Sec. 51c.  As required by the court in the consolidated                     

                                                                                

26  cases known as Durant v State of Michigan, Michigan supreme court           

                                                                                

27  docket no. 104458-104492, from the allocation under section                 


                                                                                

1   51a(1), there is allocated for  2003-2004  2004-2005 the amount             

                                                                                

2   necessary, estimated at  $644,400,000.00  $659,300,000.00, for              

                                                                                

3   payments to reimburse districts for 28.6138% of total approved              

                                                                                

4   costs of special education excluding costs reimbursed under                 

                                                                                

5   section 53a, and 70.4165% of total approved costs of special                

                                                                                

6   education transportation.  Funds allocated under this section               

                                                                                

7   that are not expended in the state fiscal year for which they               

                                                                                

8   were allocated, as determined by the department, may be used to             

                                                                                

9   supplement the allocations under sections 22a and 22b in order to           

                                                                                

10  fully fund those calculated allocations for the same fiscal                 

                                                                                

11  year.                                                                       

                                                                                

12      Sec. 51d.  (1) From the federal funds appropriated in                       

                                                                                

13  section 11, there is allocated for  2003-2004  2004-2005 all                

                                                                                

14  available federal funding, estimated at  $60,500,000.00                     

                                                                                

15  $65,000,000.00, for special education programs that are funded by           

                                                                                

16  federal grants.  All federal funds allocated under this section             

                                                                                

17  shall be distributed in accordance with federal law.                        

                                                                                

18  Notwithstanding section 17b, payments of federal funds to                   

                                                                                

19  districts, intermediate districts, and other eligible entities              

                                                                                

20  under this section shall be paid on a schedule determined by the            

                                                                                

21  department.                                                                 

                                                                                

22      (2) From the federal funds allocated under subsection (1),                  

                                                                                

23  the following amounts are allocated for  2003-2004  2004-2005:              

                                                                                

24      (a) An amount estimated at  $16,000,000.00  $15,000,000.00                  

                                                                                

25  for handicapped infants and toddlers, funded from DED-OSERS,                

                                                                                

26  handicapped infants and toddlers funds.                                     

                                                                                

27      (b) An amount estimated at  $13,500,000.00  $14,000,000.00                  


                                                                                

1   for preschool grants (Public Law 94-142), funded from DED-OSERS,            

                                                                                

2   handicapped preschool incentive funds.                                      

                                                                                

3       (c) An amount estimated at  $31,000,000.00  $36,000,000.00                  

                                                                                

4   for special education programs funded by DED-OSERS, handicapped             

                                                                                

5   program, individuals with disabilities act funds.                           

                                                                                

6       (3) As used in this section, "DED-OSERS" means the United                   

                                                                                

7   States department of education office of special education and              

                                                                                

8   rehabilitative services.                                                    

                                                                                

9       Sec. 53a.  (1) For districts, reimbursement for pupils                      

                                                                                

10  described in subsection (2)  , reimbursement  shall be 100% of              

                                                                                

11  the total approved costs of operating special education programs            

                                                                                

12  and services approved by the department and included in the                 

                                                                                

13  intermediate district plan adopted pursuant to article 3 of the             

                                                                                

14  revised school code, MCL 380.1701 to 380.1766, minus the                    

                                                                                

15  district's foundation allowance calculated under section 20, and            

                                                                                

16  minus the amount calculated for the district under section 20j.             

                                                                                

17  For intermediate districts, reimbursement for pupils described in           

                                                                                

18  section (2) shall be calculated in the same manner as for a                 

                                                                                

19  district, using the foundation allowance under section 20 of the            

                                                                                

20  pupil's district of residence, not to exceed $6,500.00 adjusted             

                                                                                

21  by the dollar amount of the difference between the basic                    

                                                                                

22  foundation allowance under section 20 for the current fiscal year           

                                                                                

23  and $5,000.00, minus $200.00, and under section 20j.                        

                                                                                

24      (2) Reimbursement under subsection (1) is for the following                 

                                                                                

25  special education pupils:                                                   

                                                                                

26      (a) Pupils assigned to a district or intermediate district                  

                                                                                

27  through the community placement program of the courts or a state            


                                                                                

1   agency, if the pupil was a resident of another intermediate                 

                                                                                

2   district at the time the pupil came under the jurisdiction of the           

                                                                                

3   court or a state agency.                                                    

                                                                                

4       (b) Pupils who are residents of institutions operated by the                

                                                                                

5   department of community health.                                             

                                                                                

6       (c) Pupils who are former residents of department of                        

                                                                                

7   community health institutions for the developmentally disabled              

                                                                                

8   who are placed in community settings other than the pupil's                 

                                                                                

9   home.                                                                       

                                                                                

10      (d) Pupils enrolled in a department-approved on-grounds                     

                                                                                

11  educational program longer than 180 days, but not longer than 233           

                                                                                

12  days, at a residential child care institution, if the child care            

                                                                                

13  institution offered in 1991-92 an on-grounds educational program            

                                                                                

14  longer than 180 days but not longer than 233 days.                          

                                                                                

15      (e) Pupils placed in a district by a parent for the purpose                 

                                                                                

16  of seeking a suitable home, if the parent does not reside in the            

                                                                                

17  same intermediate district as the district in which the pupil is            

                                                                                

18  placed.                                                                     

                                                                                

19      (3) Only those costs that are clearly and directly                          

                                                                                

20  attributable to educational programs for pupils described in                

                                                                                

21  subsection (2), and that would not have been incurred if the                

                                                                                

22  pupils were not being educated in a district or intermediate                

                                                                                

23  district, are reimbursable under this section.                              

                                                                                

24      (4) The costs of transportation shall be funded under this                  

                                                                                

25  section and shall not be reimbursed under section 58.                       

                                                                                

26      (5) Not more than $12,800,000.00 of the allocation for                      

                                                                                

27  2003-2004  2004-2005 in section 51a(1) shall be allocated under            


                                                                                

1   this section.                                                               

                                                                                

2       Sec. 54.  In addition to the aid received under section 52,                 

                                                                                

3   each intermediate district shall receive an amount per pupil for            

                                                                                

4   each pupil in attendance at the Michigan schools for the deaf and           

                                                                                

5   blind.  The amount shall be proportionate to the total                      

                                                                                

6   instructional cost at each school.  Not more than $1,688,000.00             

                                                                                

7   of the allocation for  2003-2004  2004-2005 in section 51a(1)               

                                                                                

8   shall be allocated under this section.                                      

                                                                                

9       Sec. 56.  (1) For the purposes of this section:                             

                                                                                

10      (a) "Membership" means for a particular fiscal year the total               

                                                                                

11  membership for the immediately preceding fiscal year of the                 

                                                                                

12  intermediate district and the districts constituent to the                  

                                                                                

13  intermediate district.                                                      

                                                                                

14      (b) "Millage levied" means the millage levied for special                   

                                                                                

15  education pursuant to part 30 of the revised school code,                   

                                                                                

16  MCL 380.1711 to 380.1743, including a levy for debt service                 

                                                                                

17  obligations.                                                                

                                                                                

18      (c) "Taxable value" means the total taxable value of the                    

                                                                                

19  districts constituent to an intermediate district, except that if           

                                                                                

20  a district has elected not to come under part 30 of the revised             

                                                                                

21  school code, MCL 380.1711 to 380.1743, membership and taxable               

                                                                                

22  value of the district shall not be included in the membership and           

                                                                                

23  taxable value of the intermediate district.                                 

                                                                                

24      (2) From the allocation under section 51a(1), there is                      

                                                                                

25  allocated an amount not to exceed $36,881,100.00 for  2003-2004             

                                                                                

26  2004-2005 to reimburse intermediate districts levying millages              

                                                                                

27  for special education pursuant to part 30 of the revised school             


                                                                                

1   code, MCL 380.1711 to 380.1743.  The purpose, use, and                      

                                                                                

2   expenditure of the reimbursement shall be limited as if the funds           

                                                                                

3   were generated by these millages and governed by the intermediate           

                                                                                

4   district plan adopted pursuant to article 3 of the revised school           

                                                                                

5   code, MCL 380.1701 to 380.1766.  As a condition of receiving                

                                                                                

6   funds under this section, an intermediate district distributing             

                                                                                

7   any portion of special education millage funds to its constituent           

                                                                                

8   districts shall submit for departmental approval and implement a            

                                                                                

9   distribution plan.                                                          

                                                                                

10      (3) Reimbursement for those millages levied in  2002-2003                   

                                                                                

11  2003-2004 shall be made in  2003-2004  2004-2005 at an amount per           

                                                                                

12  2002-2003  2003-2004 membership pupil computed by subtracting              

                                                                                

13  from  $132,275.00 the 2002-2003  $133,300.00 the 2003-2004                  

                                                                                

14  taxable value behind each membership pupil and multiplying the              

                                                                                

15  resulting difference by the  2002-2003  2003-2004 millage                   

                                                                                

16  levied.                                                                     

                                                                                

17      Sec. 57.  (1) From the appropriation in section 11, there is                

                                                                                

18  allocated an amount not to exceed $50,000.00 for  2003-2004                 

                                                                                

19  2004-2005 to applicant intermediate districts that provide                  

                                                                                

20  support services for the education of advanced and accelerated              

                                                                                

21  pupils.  An intermediate district is entitled to 75% of the                 

                                                                                

22  actual salary, but not to exceed $25,000.00 reimbursement for an            

                                                                                

23  individual salary, of a support services teacher approved by the            

                                                                                

24  department, and not to exceed $4,000.00 reimbursement for                   

                                                                                

25  expenditures to support program costs, excluding in-county travel           

                                                                                

26  and salary, as approved by the department.                                  

                                                                                

27      (2) From the appropriation in section 11, there is allocated                


                                                                                

1   an amount not to exceed $0.00 for  2003-2004  2004-2005 to                  

                                                                                

2   support part of the cost of summer institutes for advanced and              

                                                                                

3   accelerated students.  This amount shall be contracted to                   

                                                                                

4   applicant intermediate districts in cooperation with a local                

                                                                                

5   institution of higher education and shall be coordinated by the             

                                                                                

6   department.                                                                 

                                                                                

7       (3) From the appropriation in section 11, there is allocated                

                                                                                

8   an amount not to exceed  $200,000.00  $199,900.00 for  2003-2004            

                                                                                

9   2004-2005 for the development and operation of comprehensive                

                                                                                

10  programs for advanced and accelerated pupils.  An eligible                  

                                                                                

11  district or consortium of districts shall receive an amount not             

                                                                                

12  to exceed $100.00 per K-12 pupil for up to 5% of the district's             

                                                                                

13  or consortium's K-12 membership for the immediately preceding               

                                                                                

14  fiscal year with a minimum total grant of $6,000.00.  Funding               

                                                                                

15  shall be provided in the following order:  the per pupil                    

                                                                                

16  allotment, and then the minimum total grant of $6,000.00 to                 

                                                                                

17  individual districts.  An intermediate district may act as the              

                                                                                

18  fiscal agent for a consortium of districts.  In order to be                 

                                                                                

19  eligible for funding under this subsection, the district or                 

                                                                                

20  consortium of districts shall submit each year a current 3-year             

                                                                                

21  plan for operating a comprehensive program for advanced and                 

                                                                                

22  accelerated pupils and the district or consortium shall                     

                                                                                

23  demonstrate to the department that the district or consortium               

                                                                                

24  will contribute matching funds of at least $50.00 per K-12                  

                                                                                

25  pupil.  The plan or revised plan shall be developed in accordance           

                                                                                

26  with criteria established by the department and shall be                    

                                                                                

27  submitted to the department for approval.  Within the criteria,             


                                                                                

1   the department shall encourage the development of consortia among           

                                                                                

2   districts of less than 5,000 memberships.                                   

                                                                                

3       Sec. 61a.  (1) From the appropriation in section 11, there                  

                                                                                

4   is allocated an amount not to exceed  $30,000,000.00 for                    

                                                                                

5   2003-2004  $27,999,900.00 for 2004-2005 to reimburse on an added            

                                                                                

6   cost basis districts, except for a district that served as the              

                                                                                

7   fiscal agent for a vocational education consortium in the 1993-94           

                                                                                

8   school year, and secondary area vocational-technical education              

                                                                                

9   centers for secondary-level vocational-technical education                  

                                                                                

10  programs, including parenthood education programs, according to             

                                                                                

11  rules approved by the superintendent.  Applications for                     

                                                                                

12  participation in the programs shall be submitted in the form                

                                                                                

13  prescribed by the department.  The department shall determine the           

                                                                                

14  added cost for each vocational-technical program area.  The                 

                                                                                

15  allocation of added cost funds shall be based on the type of                

                                                                                

16  vocational-technical programs provided, the number of pupils                

                                                                                

17  enrolled, and the length of the training period provided, and               

                                                                                

18  shall not exceed 75% of the added cost of any program.  With the            

                                                                                

19  approval of the department, the board of a district maintaining a           

                                                                                

20  secondary vocational-technical education program may offer the              

                                                                                

21  program for the period from the close of the school year until              

                                                                                

22  September 1.  The program shall use existing facilities and shall           

                                                                                

23  be operated as prescribed by rules promulgated by the                       

                                                                                

24  superintendent.                                                             

                                                                                

25      (2) Except for a district that served as the fiscal agent for               

                                                                                

26  a vocational education consortium in the 1993-94 school year,               

                                                                                

27  districts and intermediate districts shall be reimbursed for                


                                                                                

1   local vocational administration, shared time vocational                     

                                                                                

2   administration, and career education planning district                      

                                                                                

3   vocational-technical administration.  The definition of what                

                                                                                

4   constitutes administration and reimbursement shall be pursuant to           

                                                                                

5   guidelines adopted by the superintendent.  Not more than                    

                                                                                

6   $800,000.00 of the allocation in subsection (1) shall be                    

                                                                                

7   distributed under this subsection.                                          

                                                                                

8       (3) From the allocation in subsection (1), there is allocated               

                                                                                

9   an amount not to exceed $388,700.00 for  2003-2004  2004-2005 to            

                                                                                

10  intermediate districts with constituent districts that had                  

                                                                                

11  combined state and local revenue per membership pupil in the                

                                                                                

12  1994-95 state fiscal year of $6,500.00 or more, served as a                 

                                                                                

13  fiscal agent for a state board designated area vocational                   

                                                                                

14  education center in the 1993-94 school year, and had an                     

                                                                                

15  adjustment made to their 1994-95 combined state and local revenue           

                                                                                

16  per membership pupil pursuant to section 20d.  The payment under            

                                                                                

17  this subsection to the intermediate district shall equal the                

                                                                                

18  amount of the allocation to the intermediate district for 1996-97           

                                                                                

19  under this subsection.                                                      

                                                                                

20      Sec. 62.  (1) For the purposes of this section:                             

                                                                                

21      (a) "Membership" means for a particular fiscal year the total               

                                                                                

22  membership for the immediately preceding fiscal year of the                 

                                                                                

23  intermediate district and the districts constituent to the                  

                                                                                

24  intermediate district or the total membership for the immediately           

                                                                                

25  preceding fiscal year of the area vocational-technical program.             

                                                                                

26      (b) "Millage levied" means the millage levied for area                      

                                                                                

27  vocational-technical education pursuant to sections 681 to 690 of           


                                                                                

1   the revised school code, MCL 380.681 to 380.690, including a levy           

                                                                                

2   for debt service obligations incurred as the result of borrowing            

                                                                                

3   for capital outlay projects and in meeting capital projects fund            

                                                                                

4   requirements of area vocational-technical education.                        

                                                                                

5       (c) "Taxable value" means the total taxable value of the                    

                                                                                

6   districts constituent to an intermediate district or area                   

                                                                                

7   vocational-technical education program, except that if a district           

                                                                                

8   has elected not to come under sections 681 to 690 of the revised            

                                                                                

9   school code, MCL 380.681 to 380.690, the membership and taxable             

                                                                                

10  value of that district shall not be included in the membership              

                                                                                

11  and taxable value of the intermediate district.  However, the               

                                                                                

12  membership and taxable value of a district that has elected not             

                                                                                

13  to come under sections 681 to 690 of the revised school code,               

                                                                                

14  MCL 380.681 to 380.690, shall be included in the membership and             

                                                                                

15  taxable value of the intermediate district if the district meets            

                                                                                

16  both of the following:                                                      

                                                                                

17                                                                               (i) The district operates the area vocational-technical                             

                                                                                

18  education program pursuant to a contract with the intermediate              

                                                                                

19  district.                                                                   

                                                                                

20      (ii) The district contributes an annual amount to the                        

                                                                                

21  operation of the program that is commensurate with the revenue              

                                                                                

22  that would have been raised for operation of the program if                 

                                                                                

23  millage were levied in the district for the program under                   

                                                                                

24  sections 681 to 690 of the revised school code, MCL 380.681 to              

                                                                                

25  380.690.                                                                    

                                                                                

26      (2) From the appropriation in section 11, there is allocated                

                                                                                

27  an amount not to exceed  $9,000,000.00  $8,999,900.00 for                   


                                                                                

1   2003-2004  2004-2005 to reimburse intermediate districts and               

                                                                                

2   area vocational-technical education programs established under              

                                                                                

3   section 690(3) of the revised school code, MCL 380.690, levying             

                                                                                

4   millages for area vocational-technical education pursuant to                

                                                                                

5   sections 681 to 690 of the revised school code, MCL 380.681 to              

                                                                                

6   380.690.  The purpose, use, and expenditure of the reimbursement            

                                                                                

7   shall be limited as if the funds were generated by those                    

                                                                                

8   millages.                                                                   

                                                                                

9       (3) Reimbursement for the millages levied in  2002-2003                     

                                                                                

10  2003-2004 shall be made in  2003-2004  2004-2005 at an amount per           

                                                                                

11  2002-2003  2003-2004 membership pupil computed by subtracting              

                                                                                

12  from  $137,700.00 the 2002-2003  $142,200.00 the 2003-2004                  

                                                                                

13  taxable value behind each membership pupil and multiplying the              

                                                                                

14  resulting difference by the  2002-2003  2003-2004 millage                   

                                                                                

15  levied.                                                                     

                                                                                

16      Sec. 74.  (1) From the amount appropriated in section 11,                   

                                                                                

17  there is allocated an amount not to exceed  $1,625,000.00                   

                                                                                

18  $1,624,900.00 for  2003-2004  2004-2005 for the purposes of                 

                                                                                

19  subsections (2) and (3).                                                    

                                                                                

20      (2) From the allocation in subsection (1), there is allocated               

                                                                                

21  each fiscal year the amount necessary for payments to state                 

                                                                                

22  supported colleges or universities and intermediate districts               

                                                                                

23  providing school bus driver safety instruction or driver skills             

                                                                                

24  road tests pursuant to sections 51 and 52 of the pupil                      

                                                                                

25  transportation act, 1990 PA 187, MCL 257.1851 and 257.1852.  The            

                                                                                

26  payments shall be in an amount determined by the department not             

                                                                                

27  to exceed 75% of the actual cost of instruction and driver                  


                                                                                

1   compensation for each public or nonpublic school bus driver                 

                                                                                

2   attending a course of instruction.  For the purpose of computing            

                                                                                

3   compensation, the hourly rate allowed each school bus driver                

                                                                                

4   shall not exceed the hourly rate received for driving a school              

                                                                                

5   bus.  Reimbursement compensating the driver during the course of            

                                                                                

6   instruction or driver skills road tests shall be made by the                

                                                                                

7   department to the college or university or intermediate district            

                                                                                

8   providing the course of instruction.                                        

                                                                                

9       (3) From the allocation in subsection (1), there is allocated               

                                                                                

10  each fiscal year the amount necessary to pay the reasonable costs           

                                                                                

11  of nonspecial education auxiliary services transportation                   

                                                                                

12  provided pursuant to section 1323 of the revised school code,               

                                                                                

13  MCL 380.1323.  Districts funded under this subsection shall not             

                                                                                

14  receive funding under any other section of this act for                     

                                                                                

15  nonspecial education auxiliary services transportation.                     

                                                                                

16      Sec. 81.  (1) Except as otherwise provided in this section,                 

                                                                                

17  from the appropriation in section 11, there is allocated for                

                                                                                

18  2003-2004  2004-2005 to the intermediate districts the sum                 

                                                                                

19  necessary, but not to exceed  $91,702,100.00  $83,028,100.00, to            

                                                                                

20  provide state aid to intermediate districts under this section.             

                                                                                

21  Except as otherwise provided in this section, there shall be                

                                                                                

22  allocated to each intermediate district for  2003-2004  2004-2005           

                                                                                

23  an amount equal to  96.5%  87.4% of the amount appropriated under           

                                                                                

24  this subsection for 2002-2003 in 2002 PA 521, before any                    

                                                                                

25  reduction made for 2002-2003 under section 11(3).  Funding                  

                                                                                

26  provided under this section shall be used to comply with                    

                                                                                

27  requirements of this act and the revised school code that are               


                                                                                

1   applicable to intermediate districts, and for which funding is              

                                                                                

2   not provided elsewhere in this act, and to provide technical                

                                                                                

3   assistance to districts as authorized by the intermediate school            

                                                                                

4   board.  In order to receive funding under this section for                  

                                                                                

5   2004-2005, an intermediate district shall allocate for 2004-2005            

                                                                                

6   at least an amount equal to 3.5% of its total funding received              

                                                                                

7   under this section for 2002-2003 toward providing the great                 

                                                                                

8   parents, great start program under section 32j.                             

                                                                                

9       (2) From the allocation in subsection (1), there is allocated               

                                                                                

10  to an intermediate district, formed by the consolidation or                 

                                                                                

11  annexation of 2 or more intermediate districts or the attachment            

                                                                                

12  of a total intermediate district to another intermediate school             

                                                                                

13  district or the annexation of all of the constituent K-12                   

                                                                                

14  districts of a previously existing intermediate school district             

                                                                                

15  which has disorganized, an additional allotment of $3,500.00 each           

                                                                                

16  fiscal year for each intermediate district included in the new              

                                                                                

17  intermediate district for 3 years following consolidation,                  

                                                                                

18  annexation, or attachment.                                                  

                                                                                

19      (3) During a fiscal year, the department shall not increase                 

                                                                                

20  an intermediate district's allocation under subsection (1)                  

                                                                                

21  because of an adjustment made by the department during the fiscal           

                                                                                

22  year in the intermediate district's taxable value for a prior               

                                                                                

23  year.  Instead, the department shall report the adjustment and              

                                                                                

24  the estimated amount of the increase to the house and senate                

                                                                                

25  fiscal agencies and the state budget director not later than                

                                                                                

26  June 1 of the fiscal year, and the legislature shall appropriate            

                                                                                

27  money for the adjustment in the next succeeding fiscal year.                


                                                                                

1       (4) In order to receive funding under this section, an                      

                                                                                

2   intermediate district shall demonstrate to the satisfaction of              

                                                                                

3   the department that the intermediate district employs at least 1            

                                                                                

4   person who is trained in pupil counting procedures, rules, and              

                                                                                

5   regulations.                                                                

                                                                                

6       (5) From the allocation in subsection (1), up to $100,000.00                

                                                                                

7   is for a pilot program to develop a model for consolidation of              

                                                                                

8   services between 2 intermediate districts.  The pilot program               

                                                                                

9   shall be developed as a model for other intermediate districts as           

                                                                                

10  they reexamine service consolidation plans.  The model will be              

                                                                                

11  developed with the following outcomes in mind:                              

                                                                                

12      (a) To consolidate services based on relative intermediate                  

                                                                                

13  district strengths, available resources, and regional needs.                

                                                                                

14      (b) To expand general education support services to                         

                                                                                

15  partnering agencies to address the requirements of the no child             

                                                                                

16  left behind act of 2001, Public Law 107-110, and of section 1280            

                                                                                

17  of the revised school code, MCL 380.1280.                                   

                                                                                

18      (c) To complete an analysis of regional needs and wants.                    

                                                                                

19      (d) To combine resources to provide a more economical                       

                                                                                

20  educational delivery system.                                                

                                                                                

21      (e) To include in the delivery model postsecondary options                  

                                                                                

22  for pupils through partnerships with colleges and universities              

                                                                                

23  and the Michigan virtual high school.                                       

                                                                                

24      (f) To expand content-driven professional development                       

                                                                                

25  services for all teachers.                                                  

                                                                                

26      (g) To reconfigure services available through mathematics and               

                                                                                

27  science centers to continue high-quality mathematics and science            


                                                                                

1   instruction.                                                                

                                                                                

2       Sec. 94a.  (1) There is created within the office of the                    

                                                                                

3   state budget director in the department of management and budget            

                                                                                

4   the center for educational performance and information.  The                

                                                                                

5   center shall do all of the following:                                       

                                                                                

6       (a) Coordinate the collection of all data required by state                 

                                                                                

7   and federal law from all entities receiving funds under this                

                                                                                

8   act.                                                                        

                                                                                

9       (b) Collect data in the most efficient manner possible in                   

                                                                                

10  order to reduce the administrative burden on reporting entities.            

                                                                                

11      (c) Establish procedures to ensure the validity and                         

                                                                                

12  reliability of the data and the collection process.                         

                                                                                

13      (d) Develop state and model local data collection policies,                 

                                                                                

14  including, but not limited to, policies that ensure the privacy             

                                                                                

15  of individual student data.  State privacy policies shall ensure            

                                                                                

16  that student social security numbers are not released to the                

                                                                                

17  public for any purpose.                                                     

                                                                                

18      (e) Provide data in a useful manner to allow state and local                

                                                                                

19  policymakers to make informed policy decisions.                             

                                                                                

20      (f) Provide reports to the citizens of this state to allow                  

                                                                                

21  them to assess allocation of resources and the return on their              

                                                                                

22  investment in the education system of this state.                           

                                                                                

23      (g) Assist all entities receiving funds under this act in                   

                                                                                

24  complying with audits performed according to generally accepted             

                                                                                

25  accounting procedures.                                                      

                                                                                

26      (h) Other functions as assigned by the state budget                         

                                                                                

27  director.                                                                   


                                                                                

1       (2) Not later than August 15, 2004, each state department,                  

                                                                                

2   officer, or agency that collects information from districts or              

                                                                                

3   intermediate districts as required under state or federal law               

                                                                                

4   shall make arrangements with the center, and with the districts             

                                                                                

5   or intermediate districts, to have the center collect the                   

                                                                                

6   information and to provide it to the department, officer, or                

                                                                                

7   agency as necessary.  To the extent that it does not cause                  

                                                                                

8   financial hardship, the center shall arrange to collect the                 

                                                                                

9   information in a manner that allows electronic submission of the            

                                                                                

10  information to the center.  Each affected state department,                 

                                                                                

11  officer, or agency shall provide the center with any details                

                                                                                

12  necessary for the center to collect information as provided under           

                                                                                

13  this subsection.  This subsection does not apply to information             

                                                                                

14  collected by the department of treasury under the uniform                   

                                                                                

15  budgeting and accounting act, 1968 PA 2, MCL 141.421 to 141.440a;           

                                                                                

16  the revised municipal finance act, 2001 PA 34, MCL 141.2101 to              

                                                                                

17  141.2821; 1961 PA 108, MCL 388.951 to 388.963; or section 1351a             

                                                                                

18  of the revised school code, MCL 380.1351a.                                  

                                                                                

19      (3) The state budget director shall appoint a CEPI advisory                 

                                                                                

20  committee, consisting of the following members:                             

                                                                                

21      (a) One representative from the house fiscal agency.                        

                                                                                

22      (b) One representative from the senate fiscal agency.                       

                                                                                

23      (c) One representative from the office of the state budget                  

                                                                                

24  director.                                                                   

                                                                                

25      (d) One representative from the state education agency.                     

                                                                                

26      (e) One representative each from the department of  career                  

                                                                                

27  development  labor and economic growth and the department of                


                                                                                

1   treasury.                                                                   

                                                                                

2       (f) Three representatives from intermediate school                          

                                                                                

3   districts.                                                                  

                                                                                

4       (g) One representative from each of the following educational               

                                                                                

5   organizations:                                                              

                                                                                

6                                                                                (i) Michigan association of school boards.                                          

                                                                                

7       (ii) Michigan association of school administrators.                          

                                                                                

8       (iii) Michigan school business officials.                                    

                                                                                

9       (h) One representative representing private sector firms                    

                                                                                

10  responsible for auditing school records.                                    

                                                                                

11      (i) Other representatives as the state budget director                      

                                                                                

12  determines are necessary.                                                   

                                                                                

13      (4) The CEPI advisory committee appointed under subsection                  

                                                                                

14  (3) shall provide advice to the director of the center regarding            

                                                                                

15  the management of the center's data collection activities,                  

                                                                                

16  including, but not limited to:                                              

                                                                                

17      (a) Determining what data is necessary to collect and                       

                                                                                

18  maintain in order to perform the center's functions in the most             

                                                                                

19  efficient manner possible.                                                  

                                                                                

20      (b) Defining the roles of all stakeholders in the data                      

                                                                                

21  collection system.                                                          

                                                                                

22      (c) Recommending timelines for the implementation and ongoing               

                                                                                

23  collection of data.                                                         

                                                                                

24      (d) Establishing and maintaining data definitions, data                     

                                                                                

25  transmission protocols, and system specifications and procedures            

                                                                                

26  for the efficient and accurate transmission and collection of               

                                                                                

27  data.                                                                       


                                                                                

1       (e) Establishing and maintaining a process for ensuring the                 

                                                                                

2   accuracy of the data.                                                       

                                                                                

3       (f) Establishing and maintaining state and model local                      

                                                                                

4   policies related to data collection, including, but not limited             

                                                                                

5   to, privacy policies related to individual student data.                    

                                                                                

6       (g) Ensuring the data is made available to state and local                  

                                                                                

7   policymakers and citizens of this state in the most useful format           

                                                                                

8   possible.                                                                   

                                                                                

9       (h) Other matters as determined by the state budget director                

                                                                                

10  or the director of the center.                                              

                                                                                

11      (5) The center may enter into any interlocal agreements                     

                                                                                

12  necessary to fulfill its functions.                                         

                                                                                

13      (6) From the general fund appropriation in section 11, there                

                                                                                

14  is allocated an amount not to exceed  $4,500,000.00 each fiscal             

                                                                                

15  year for 2002-2003 and for 2003-2004  $1,499,900.00 for 2004-2005           

                                                                                

16  to the department of management and budget to support the                   

                                                                                

17  operations of the center.  The center shall cooperate with the              

                                                                                

18  state education agency to ensure that this state is in compliance           

                                                                                

19  with federal law and is maximizing opportunities for increased              

                                                                                

20  federal funding to improve education in this state.  In addition,           

                                                                                

21  from the federal funds appropriated in section 11 for  2002-2003            

                                                                                

22  and for 2003-2004  2004-2005, there is allocated the following              

                                                                                

23  amounts  each fiscal year  for 2004-2005 in order to fulfill                

                                                                                

24  federal reporting requirements:                                             

                                                                                

25      (a) An amount  estimated at $1,000,000.00  not to exceed                    

                                                                                

26  $835,000.00 funded from DED-OESE, title I, disadvantaged children           

                                                                                

27  funds.                                                                      


                                                                                

1       (b) An amount  estimated at $284,700.00  not to exceed                      

                                                                                

2   $63,000.00 funded from DED-OESE, title I, reading first state               

                                                                                

3   grant funds.                                                                

                                                                                

4       (c) An amount  estimated at $46,750.00  not to exceed                       

                                                                                

5   $46,800.00 funded from DED-OESE, title I, migrant education                 

                                                                                

6   funds.                                                                      

                                                                                

7       (d) An amount  estimated at $500,000.00  not to exceed                      

                                                                                

8   $285,000.00 funded from DED-OESE, improving teacher quality                 

                                                                                

9   funds.                                                                      

                                                                                

10      (e) An amount  estimated at $526,100.00  not to exceed                      

                                                                                

11  $73,000.00 funded from DED-OESE, drug-free schools and                      

                                                                                

12  communities funds.                                                          

                                                                                

13      (f) An amount not to exceed $150,000.00 funded under sections               

                                                                                

14  611 to 619 of part B of the individuals with disabilities                   

                                                                                

15  education act, title VI of Public Law 91-230, 20 USC 1411 to                

                                                                                

16  1419.                                                                       

                                                                                

17      (g) An amount not to exceed $13,500.00 for data collection                  

                                                                                

18  systems, funded from DED-NCES, common core data funds.                      

                                                                                

19      (h) An amount not to exceed $400,000.00 for the collection                  

                                                                                

20  and dissemination of state assessment data, funded from DED-OESE,           

                                                                                

21  title VI, state assessments funds.                                          

                                                                                

22      (7) In addition, from the federal funds appropriated in                     

                                                                                

23  section 11 for the 2003-2004 and 2004-2005 fiscal years, there is           

                                                                                

24  allocated the following amounts each fiscal year in order to                

                                                                                

25  fulfill federal reporting requirements:                                     

                                                                                

26      (a) An amount not to exceed $80,000.00 for data collection                  

                                                                                

27  systems, funded from DED-NCES, task award funds.                            


                                                                                

1       (b) An amount not to exceed $100,000.00 for data collection                 

                                                                                

2   systems development funded from DED-NCES, performance based data            

                                                                                

3   management initiative.                                                      

                                                                                

4       (8)  (7)  Funds allocated under this section that are not                   

                                                                                

5   expended in the fiscal year in which they were allocated may be             

                                                                                

6   carried forward to a subsequent fiscal year.   From the funds               

                                                                                

7   allocated for 1999-2000 that were carried forward under this                

                                                                                

8   section and from the general funds appropriated under this                  

                                                                                

9   section for 2002-2003, the center shall make grants to                      

                                                                                

10  intermediate districts for the purpose of assisting the                     

                                                                                

11  intermediate districts and their constituent districts in data              

                                                                                

12  collection required by state and federal law or necessary for               

                                                                                

13  audits according to generally accepted accounting procedures.               

                                                                                

14  Grants to each intermediate district shall be made at the rate of           

                                                                                

15  $2.00 per each full-time equated membership pupil times the total           

                                                                                

16  number of 2000-2001 pupils in membership in the intermediate                

                                                                                

17  district and its constituent districts.  An intermediate district           

                                                                                

18  shall develop a plan in cooperation with its constituent                    

                                                                                

19  districts to distribute the grants between the intermediate                 

                                                                                

20  district and its constituent districts.  These grants shall be              

                                                                                

21  paid to intermediate districts no later than the next regularly             

                                                                                

22  scheduled school aid payment after the effective date of this               

                                                                                

23  section.                                                                    

                                                                                

24      (8) If the applicable intermediate district determines that                 

                                                                                

25  the pupil counts submitted by a district for the February 2002              

                                                                                

26  supplemental pupil count using the single record student database           

                                                                                

27  cannot be audited by the intermediate district pursuant to                  


                                                                                

1   section 101, all of the following apply:                                    

                                                                                

2       (a) The district may submit its pupil count data for the                    

                                                                                

3   February 2002 supplemental pupil count using the education data             

                                                                                

4   network system.                                                             

                                                                                

5       (b) If the applicable intermediate district determines that                 

                                                                                

6   the pupil counts submitted by the district for the 2002-2003                

                                                                                

7   pupil membership count day using the single record student                  

                                                                                

8   database cannot be audited by the intermediate district pursuant            

                                                                                

9   to section 101, the district may submit its pupil count data for            

                                                                                

10  the 2002-2003 pupil membership count day using the education data           

                                                                                

11  network system.                                                             

                                                                                

12      (9) At least 30 days before implementing a proposed                         

                                                                                

13  electronic data collection, submission, or collation process, or            

                                                                                

14  a proposed change to 1 or more of those processes, the center               

                                                                                

15  shall submit the proposal and an analysis of the proposal to the            

                                                                                

16  senate and house of representatives appropriations subcommittees            

                                                                                

17  responsible for this act.  The analysis shall include at least a            

                                                                                

18  determination of the cost of the proposal for districts and                 

                                                                                

19  intermediate districts and of available funding for districts and           

                                                                                

20  intermediate districts.                                                     

                                                                                

21      (9)  (10)  The center may bill departments as necessary in                  

                                                                                

22  order to fulfill reporting requirements of state and federal                

                                                                                

23  law.                                                                        

                                                                                

24      (10)  (11)  As used in this section:                                        

                                                                                

25      (a) "Center" means the center for educational performance                   

                                                                                

26  and information created under this section.                                 

                                                                                

27      (a) "DED-NCES" means the United States department of                        


                                                                                

1   education national center for education statistics.                         

                                                                                

2       (b) "DED-OESE" means the United States department of                        

                                                                                

3   education office of elementary and secondary education.                     

                                                                                

4       (c) "State education agency" means the department.                          

                                                                                

5       Sec. 98.  (1) From the general fund money appropriated in                   

                                                                                

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

                                                                                

7   $750,000.00  $749,900.00 for  2003-2004  2004-2005 to provide a            

                                                                                

8   grant to the Michigan virtual university for the development,               

                                                                                

9   implementation, and operation of the Michigan virtual high school           

                                                                                

10  and to fund other purposes described in this section.  In                   

                                                                                

11  addition, from the federal funds appropriated in section 11,                

                                                                                

12  there is allocated for  2003-2004  2004-2005 an amount estimated            

                                                                                

13  at  $2,250,000.00  $2,249,900.00 from DED-OESE, title II,                   

                                                                                

14  improving teacher quality funds.                                            

                                                                                

15      (2) The Michigan virtual high school shall have the following               

                                                                                

16  goals:                                                                      

                                                                                

17      (a) Significantly expand curricular offerings for high                      

                                                                                

18  schools across this state through agreements with districts or              

                                                                                

19  licenses from other recognized providers.  The Michigan virtual             

                                                                                

20  university shall explore options for providing rigorous civics              

                                                                                

21  curricula online.                                                           

                                                                                

22      (b) Create statewide instructional models using interactive                 

                                                                                

23  multimedia tools delivered by electronic means, including, but              

                                                                                

24  not limited to, the internet, digital broadcast, or satellite               

                                                                                

25  network, for distributed learning at the high school level.                 

                                                                                

26      (c) Provide pupils with opportunities to develop skills and                 

                                                                                

27  competencies through on-line learning.                                      


                                                                                

1       (d) Offer teachers opportunities to learn new skills and                    

                                                                                

2   strategies for developing and delivering instructional services.            

                                                                                

3       (e) Accelerate this state's ability to respond to current and               

                                                                                

4   emerging educational demands.                                               

                                                                                

5       (f) Grant high school diplomas through a dual enrollment                    

                                                                                

6   method with districts.                                                      

                                                                                

7       (g) Act as a broker for college level equivalent courses, as                

                                                                                

8   defined in section 1471 of the revised school code, MCL 380.1471,           

                                                                                

9   and dual enrollment courses from postsecondary education                    

                                                                                

10  institutions.                                                               

                                                                                

11      (3) The Michigan virtual high school course offerings shall                 

                                                                                

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

                                                                                

13      (a) Information technology courses.                                         

                                                                                

14      (b) College level equivalent courses, as defined in section                 

                                                                                

15  1471 of the revised school code, MCL 380.1471.                              

                                                                                

16      (c) Courses and dual enrollment opportunities.                              

                                                                                

17      (d) Programs and services for at-risk pupils.                               

                                                                                

18      (e) General education development test preparation courses                  

                                                                                

19  for adjudicated youth.                                                      

                                                                                

20      (f) Special interest courses.                                               

                                                                                

21      (g) Professional development programs and services for                      

                                                                                

22  teachers.                                                                   

                                                                                

23      (4) The state education agency shall sign a memorandum of                   

                                                                                

24  understanding with the Michigan virtual university regarding the            

                                                                                

25  DED-OESE, title II, improving teacher quality funds as provided             

                                                                                

26  under this subsection.  The memorandum of understanding under               

                                                                                

27  this subsection shall require that the Michigan virtual                     


                                                                                

1   university coordinate the following activities related to                   

                                                                                

2   DED-OESE, title II, improving teacher quality funds in accordance           

                                                                                

3   with federal law:                                                           

                                                                                

4       (a) Develop, and assist districts in the development and use                

                                                                                

5   of, proven, innovative strategies to deliver intensive                      

                                                                                

6   professional development programs that are both cost-effective              

                                                                                

7   and easily accessible, such as strategies that involve delivery             

                                                                                

8   through the use of technology, peer networks, and distance                  

                                                                                

9   learning.                                                                   

                                                                                

10      (b) Encourage and support the training of teachers and                      

                                                                                

11  administrators to effectively integrate technology into curricula           

                                                                                

12  and instruction.                                                            

                                                                                

13      (c) Coordinate the activities of eligible partnerships that                 

                                                                                

14  include higher education institutions for the purposes of                   

                                                                                

15  providing professional development activities for teachers,                 

                                                                                

16  paraprofessionals, and principals as defined in federal law.                

                                                                                

17      (5) If a home-schooled or nonpublic school student is a                     

                                                                                

18  resident of a district that subscribes to services provided by              

                                                                                

19  the Michigan virtual university, the student may use the services           

                                                                                

20  provided by the Michigan virtual university to the district                 

                                                                                

21  without charge to the student beyond what is charged to a                   

                                                                                

22  district pupil using the same services.                                     

                                                                                

23      (6) From the allocations in subsection (1), the amount                      

                                                                                

24  necessary, not to exceed $1,250,000.00, shall be used to provide            

                                                                                

25  online professional development for classroom teachers.  This               

                                                                                

26  allocation is intended to be for the  first  second of 3 years.             

                                                                                

27  These funds may be used for designing and building courses,                 


                                                                                

1   marketing and outreach, workshops and evaluation, content                   

                                                                                

2   acquisition, technical assistance, project management, and                  

                                                                                

3   customer support.  The Michigan virtual university shall offer at           

                                                                                

4   least 5 hours of online professional development for classroom              

                                                                                

5   teachers under this section in  2003-2004  2004-2005 without                

                                                                                

6   charge to the teachers or to districts or intermediate                      

                                                                                

7   districts.                                                                  

                                                                                

8       (7) A district or intermediate district may require a                       

                                                                                

9   full-time teacher to participate in at least 5 hours of online              

                                                                                

10  professional development provided by the Michigan virtual                   

                                                                                

11  university under subsection (6).  Five hours of this professional           

                                                                                

12  development shall be considered to be part of the 51 hours                  

                                                                                

13  allowed to be counted as hours of pupil instruction under section           

                                                                                

14  101(10).                                                                    

                                                                                

15      (8) As used in this section:                                                

                                                                                

16      (a) "DED-OESE" means the United States department of                        

                                                                                

17  education office of elementary and secondary education.                     

                                                                                

18      (b) "State education agency" means the department.                          

                                                                                

19      Sec. 98b.  (1) From the school aid stabilization fund                       

                                                                                

20  created in section 11a, there is appropriated and allocated for             

                                                                                

21  2003-2004  2004-2005 an amount not to exceed  $22,000,000.00               

                                                                                

22  $4,999,900.00 for the freedom to learn program described in this            

                                                                                

23  section.  In addition, from the federal funds appropriated in               

                                                                                

24  section 11 there is allocated for  2003-2004 the following                  

                                                                                

25  federal funds:                                                              

                                                                                

26      (a) From the federal funds appropriated in section 11, an                   

                                                                                

27  amount estimated at $10,343,200.00 from the competitive grants of           


                                                                                

1   DED-OESE, title II, educational technology grants funds.                    

                                                                                

2       (b) An amount estimated at $7,000,000.00 from funds carried                 

                                                                                

3   forward from 2002-2003 from unexpended DED-OESE, title II,                  

                                                                                

4   educational technology grants funds  2004-2005 an amount not to             

                                                                                

5   exceed $10,343,100.00 from the competitive grants of DED-OESE,              

                                                                                

6   title II, educational technology grants funds, and an amount not            

                                                                                

7   to exceed $7,000,000.00 from funds carried forward from 2003-2004           

                                                                                

8   from unexpended DED-OESE, title II, educational technology grants           

                                                                                

9   funds.                                                                      

                                                                                

10      (2) The allocations in subsection (1) shall be used to                      

                                                                                

11  develop, implement, and operate the freedom to learn program and            

                                                                                

12  make program grants.  The goal of the program is to achieve                 

                                                                                

13  one-to-one access to wireless technology for K-12 pupils through            

                                                                                

14  statewide and local public-private partnerships.  To implement              

                                                                                

15  the program, the state education agency shall sign a memorandum             

                                                                                

16  of understanding with the Michigan virtual university that                  

                                                                                

17  provides for joint administration of program grants under this              

                                                                                

18  subsection.   By December 1, 2003, the  The Michigan virtual                

                                                                                

19  university and the state education agency shall make grants to              

                                                                                

20  districts as described in this section.  In awarding the grants,            

                                                                                

21  the Michigan virtual university and the state education agency              

                                                                                

22  shall give priority to applications that demonstrate that the               

                                                                                

23  district's program will meet all of the following:                          

                                                                                

24      (a) Will be ready for immediate implementation  by January 1,               

                                                                                

25  2004  and will have begun professional development on technology            

                                                                                

26  integration in the classroom.  before January 1, 2004.                      

                                                                                

27      (b) Will utilize state structure and resources for                          


                                                                                

1   professional development, as coordinated by the Michigan virtual            

                                                                                

2   university.                                                                 

                                                                                

3       (c) Will opt to participate in the statewide partnership                    

                                                                                

4   described in subsection  (6)  (8).                                          

                                                                                

5       (3) The amount of program grants to districts is estimated at               

                                                                                

6   $250.00 per pupil in membership in grade 6 in  2003-2004                    

                                                                                

7   2004-2005, or in another grade allowed in this section, or per              

                                                                                

8   grade 6 teacher if the funding is awarded in a ratio of at least            

                                                                                

9   20 pupils funded for each teacher funded.  The state education              

                                                                                

10  agency and the Michigan virtual university shall establish grant            

                                                                                

11  criteria that maximize the distribution of federal funds to                 

                                                                                

12  achieve the $250.00 per pupil or teacher in districts that                  

                                                                                

13  qualify for federal funds.  To qualify for a grant under this               

                                                                                

14  section, a district shall submit an application to the state                

                                                                                

15  education agency and the Michigan virtual university and complete           

                                                                                

16  the application process established by the state education agency           

                                                                                

17  and the Michigan virtual university.  The application shall                 

                                                                                

18  include at least all of the following:                                      

                                                                                

19      (a) If the district is applying for federal funds, how the                  

                                                                                

20  district will meet the requirements of the competitive grants               

                                                                                

21  under DED-OESE, title II, part D.                                           

                                                                                

22      (b) How the district will provide the opportunity for each                  

                                                                                

23  pupil in membership in grade 6 to receive a wireless computing              

                                                                                

24  device.  If the district has already achieved one-to-one wireless           

                                                                                

25  access in grade 6 or if the district's school building grade                

                                                                                

26  configuration makes implementation of the program for grade 6               

                                                                                

27  impractical, the district may apply for a grant for the next                


                                                                                

1   highest grade.  If the district does not have a grade 6 or                  

                                                                                

2   higher, the district may apply for funding for the next lowest              

                                                                                

3   grade level.  If the district operates 1 or more schools that are           

                                                                                

4   not meeting adequate yearly progress, as determined by the                  

                                                                                

5   department, and that contain grade 6, the district may apply for            

                                                                                

6   funding for a school building-wide program for 1 or more of those           

                                                                                

7   schools.  A public school academy that does not offer a grade               

                                                                                

8   higher than grade 5 may apply to receive a grant under this                 

                                                                                

9   section for pupils in the highest grade offered by the public               

                                                                                

10  school academy.                                                             

                                                                                

11      (c) The district shall submit a plan describing the uses of                 

                                                                                

12  the grant funds.  The plan shall describe a plan for professional           

                                                                                

13  development on technology integration, content and curriculum,              

                                                                                

14  and local partnerships with the other districts and                         

                                                                                

15  representatives from businesses, industry, and higher education.            

                                                                                

16  The plan shall include at least the following:                              

                                                                                

17                                                                               (i) The academic achievement goals, which may include, but                          

                                                                                

18  are not limited to, goals related to mathematics, science, and              

                                                                                

19  language arts.                                                              

                                                                                

20      (ii) The engagement goals, which may include, but are not                    

                                                                                

21  limited to, goals related to retention rates, dropout rates,                

                                                                                

22  detentions, and suspensions.                                                

                                                                                

23      (iii) A commitment that at least 25% of the total local                      

                                                                                

24  budget for the program will be used on professional development             

                                                                                

25  on technology integration in the classroom.                                 

                                                                                

26      (d) A 3- to 5-year plan or funding model for increasing the                 

                                                                                

27  share that is borne locally of the expenditures for one-to-one              


                                                                                

1   wireless access.  The Michigan virtual university shall provide             

                                                                                

2   districts with sample local plans and funding models for the                

                                                                                

3   purposes of this subdivision and with information on available              

                                                                                

4   federal and private resources.                                              

                                                                                

5       (e) How the district will amend its local technology plan as                

                                                                                

6   required under state and federal law to reflect the program under           

                                                                                

7   this section.                                                               

                                                                                

8       (4) A district that receives a grant under this section shall               

                                                                                

9   provide at least a $25.00 per pupil match for grant money                   

                                                                                

10  received under this section from local public or private                    

                                                                                

11  resources.                                                                  

                                                                                

12      (5) A district that received money under section 98 in                      

                                                                                

13  2002-2003 for a wireless technology grant is eligible to receive            

                                                                                

14  a grant under this section.                                                 

                                                                                

15      (6) The federal funding under subsection  (1)(b)  (1) shall                 

                                                                                

16  be used first to provide the grants under this subsection.  A               

                                                                                

17  district described in this subsection shall apply to the Michigan           

                                                                                

18  virtual university and the state education agency for a grant in            

                                                                                

19  the form and manner prescribed by the department.  An application           

                                                                                

20  under this section is not subject to the requirements of                    

                                                                                

21  subsection (3) if the application demonstrates that the program             

                                                                                

22  will meet all of the following:                                             

                                                                                

23      (a) Will continue as a demonstration program.                               

                                                                                

24      (b) Will provide regional assistance to schools that are not                

                                                                                

25  meeting adequate yearly progress, as determined by the                      

                                                                                

26  department, and to new grant recipients, as directed by the state           

                                                                                

27  education agency and the Michigan virtual university.                       


                                                                                

1       (c) Will seek to expand its existing wireless technology                    

                                                                                

2   initiatives.                                                                

                                                                                

3       (7) The state funding under subsection (1) shall be used                    

                                                                                

4   first to provide grants to districts that received money under              

                                                                                

5   section 98 in 2002-2003 and were designated as program                      

                                                                                

6   application sites.                                                          

                                                                                

7       (8)  (6) By October 15, 2003, the  The department of                        

                                                                                

8   management and budget shall establish a statewide public-private            

                                                                                

9   partnership to implement the program.  The department of                    

                                                                                

10  management and budget shall select a program partner through a              

                                                                                

11  request for proposals process for a total learning technology               

                                                                                

12  package that includes, but is not limited to, a wireless laptop,            

                                                                                

13  software, professional development, service, and support, and for           

                                                                                

14  management by a single point of contact individual responsible              

                                                                                

15  for the overall implementation.  The proposal selected shall                

                                                                                

16  achieve significant efficiencies and economies of scale and be              

                                                                                

17  interoperable with existing technologies.  The private partner              

                                                                                

18  selected in the request for proposals process to partner with the           

                                                                                

19  state must possess all of the following:                                    

                                                                                

20      (a) Experience in the development and successful                            

                                                                                

21  implementation of large-scale, school-based wireless technology             

                                                                                

22  projects.                                                                   

                                                                                

23      (b) Proven technical ability to deliver a total solutions                   

                                                                                

24  package of learning technology for elementary and secondary                 

                                                                                

25  students and teachers.                                                      

                                                                                

26      (c) Results-based education solutions to increase student                   

                                                                                

27  achievement and advance professional development for teachers.              


                                                                                

1       (d) Ability to coordinate, utilize, and expand existing                     

                                                                                

2   technology infrastructures and professional development delivery            

                                                                                

3   systems within school districts and regions.                                

                                                                                

4       (e) Ability to provide a wireless computing device that is                  

                                                                                

5   able to be connected to the wireless network and is able to                 

                                                                                

6   access a school's preexisting local network and the internet both           

                                                                                

7   wirelessly in the school and through dial-up or other remote                

                                                                                

8   connection from the home or elsewhere outside school.                       

                                                                                

9       (9)  (7)  A district may elect to purchase or lease wireless                

                                                                                

10  computing devices from a vendor other than the statewide                    

                                                                                

11  partnership described in subsection  (6)  (8) if the Michigan               

                                                                                

12  virtual university determines that the vendor meets the                     

                                                                                

13  requirements of subdivisions (a) to (d) of subsection  (6)  (8)             

                                                                                

14  and the vendor is identified in the district's grant                        

                                                                                

15  application.                                                                

                                                                                

16      (10)  (8)  The state education agency shall sign a memorandum               

                                                                                

17  of understanding with the Michigan virtual university regarding             

                                                                                

18  DED-OESE, title II, educational technology grants, as provided              

                                                                                

19  under this subsection.  The Michigan virtual university shall               

                                                                                

20  coordinate activities described in this subsection with the                 

                                                                                

21  freedom to learn grants described under this section.  The                  

                                                                                

22  memorandum of understanding shall require that the Michigan                 

                                                                                

23  virtual university coordinate the following state activities                

                                                                                

24  related to DED-OESE, title II, educational technology grants in             

                                                                                

25  accordance with federal law:                                                

                                                                                

26      (a) Assist in the development of innovative strategies for                  

                                                                                

27  the delivery of specialized or rigorous academic courses and                


                                                                                

1   curricula through the use of technology, including distance                 

                                                                                

2   learning technologies.                                                      

                                                                                

3       (b) Establish and support public-private initiatives for the                

                                                                                

4   acquisition of educational technology for students in high-need             

                                                                                

5   districts.                                                                  

                                                                                

6       (11)  (9)  Funds allocated under this section that are not                  

                                                                                

7   expended in the state fiscal year for which they were allocated             

                                                                                

8   may be carried forward to a subsequent state fiscal year.                   

                                                                                

9       (12)  (10)  The state education agency and the Michigan                     

                                                                                

10  virtual university shall complete the memoranda of understanding            

                                                                                

11  required under this section within 60 days after the effective              

                                                                                

12  date of the amendatory act that added this subsection.  It is the           

                                                                                

13  intent of the legislature that all plans or applications                    

                                                                                

14  submitted by the state education agency to the United States                

                                                                                

15  department of education relating to the distribution of federal             

                                                                                

16  funds under this section are for the purposes described in this             

                                                                                

17  section.                                                                    

                                                                                

18      (13)  (11)  The state education agency shall ensure that the                

                                                                                

19  program goals and plans for the freedom to learn program are                

                                                                                

20  contained in the state technology plan required by federal law.             

                                                                                

21      (14)  (12)  From the funds allocated under this section, an                 

                                                                                

22  amount not to exceed  $4,000,000.00  $2,700,000.00 is allocated             

                                                                                

23  to the Michigan virtual university to be used for statewide                 

                                                                                

24  activities, as follows:                                                     

                                                                                

25      (a) An amount estimated at  $2,700,000.00  $1,700,000.00 to                 

                                                                                

26  develop a professional development network in partnership with              

                                                                                

27  other statewide entities for professional development on                    


                                                                                

1   technology integration in the classroom.                                    

                                                                                

2       (b) An amount estimated at $250,000.00 for development of a                 

                                                                                

3   content resource package that will include on-line coursework               

                                                                                

4   content.                                                                    

                                                                                

5       (c) An amount estimated at $250,000.00 to Ferris state                      

                                                                                

6   university to develop or purchase an on-line assessment system to           

                                                                                

7   supplement the Michigan education assessment program tests and              

                                                                                

8   provide immediate feedback on pupil achievement.  The assessment            

                                                                                

9   system shall include high-quality tests aligned to the state                

                                                                                

10  curriculum framework and tests that can be customized by teachers           

                                                                                

11  and integrated with on-line instructional resources.  The                   

                                                                                

12  Michigan virtual university and the state education agency shall            

                                                                                

13  work in partnership  with the department of treasury  to                    

                                                                                

14  implement the assessment program.  The state education agency               

                                                                                

15  shall give first priority in implementing the assessment systems            

                                                                                

16  to districts not meeting adequately yearly progress requirements            

                                                                                

17  as established by the federal no child left behind act and to               

                                                                                

18  schools participating in grant programs under this section.                 

                                                                                

19      (d) An amount not to exceed  $800,000.00  $500,000.00 for                   

                                                                                

20  comprehensive statewide evaluation of current and future projects           

                                                                                

21  under this section and for statewide administration of the                  

                                                                                

22  freedom to learn program.                                                   

                                                                                

23      (15)  (13)  The Michigan virtual university is encouraged to                

                                                                                

24  work in partnership with Ferris state university in performing              

                                                                                

25  the functions under subsection  (12)  (14).                                 

                                                                                

26      (16)  (14)  Notwithstanding section 17b, payments under this                

                                                                                

27  section may be made pursuant to an agreement with the                       


                                                                                

1   department.                                                                 

                                                                                

2       (17)  (15)  It is the intent of the legislature that this                   

                                                                                

3   state will seek to raise private funds for the current and future           

                                                                                

4   funding of the freedom to learn program under this section and              

                                                                                

5   all of the program components.                                              

                                                                                

6       (18)  (16)  As used in this section:                                        

                                                                                

7       (a) "DED-OESE" means the United States department of                        

                                                                                

8   education office of elementary and secondary education.                     

                                                                                

9       (b) "State education agency" means the department.                          

                                                                                

10      Sec. 99.  (1) From the  appropriations  state school aid                    

                                                                                

11  fund money appropriated in section 11, there is allocated an                

                                                                                

12  amount not to exceed  $2,500,000.00 for 2003-2004  $2,415,900.00            

                                                                                

13  for 2004-2005 and from the general fund appropriation in section            

                                                                                

14  11, there is allocated an amount not to exceed $84,000.00 for               

                                                                                

15  2004-2005 for implementing the comprehensive master plan for                

                                                                                

16  mathematics and science centers developed by the department and             

                                                                                

17  approved by the state board on August 8, 2002.  In addition, from           

                                                                                

18  the federal funds appropriated in section 11, there is allocated            

                                                                                

19  an amount estimated at  $2,487,700.00  $3,581,300.00 from                   

                                                                                

20  DED-OESE, title II, mathematics and science partnership grants.             

                                                                                

21      (2) Within a service area designated locally, approved by the               

                                                                                

22  department, and consistent with the master plan described in                

                                                                                

23  subsection (1), an established mathematics and science center               

                                                                                

24  shall address  4  2 or more of the following 6 basic services, as           

                                                                                

25  described in the master plan, to constituent districts and                  

                                                                                

26  communities:  leadership, pupil services, curriculum support,               

                                                                                

27  community involvement, professional development, and resource               


                                                                                

1   clearinghouse services.                                                     

                                                                                

2       (3) The department shall not award a state grant under this                 

                                                                                

3   section to more than 1 mathematics and science center located in            

                                                                                

4   a designated region as prescribed in the 2002 master plan unless            

                                                                                

5   each of the grants serves a distinct target population or                   

                                                                                

6   provides a service that does not duplicate another program in the           

                                                                                

7   designated region.                                                          

                                                                                

8       (4) As part of the technical assistance process, the                        

                                                                                

9   department shall provide minimum standard guidelines that may be            

                                                                                

10  used by the mathematics and science center for providing fair               

                                                                                

11  access for qualified pupils and professional staff as prescribed            

                                                                                

12  in this section.                                                            

                                                                                

13      (5) Allocations under this section to support the activities                

                                                                                

14  and programs of mathematics and science centers shall be                    

                                                                                

15  continuing support grants to all 33 established mathematics and             

                                                                                

16  science centers.  Each established mathematics and science center           

                                                                                

17  that was funded in  2002-2003  2003-2004 shall receive state                

                                                                                

18  funding in an amount equal to  24.43% of  the amount it received            

                                                                                

19  under this section for  2002-2003 in 2002 PA 521, before any                

                                                                                

20  reduction made for 2002-2003 under section 11(3)  2003-2004If            

                                                                                

21  a center declines state funding or a center closes, the remaining           

                                                                                

22  money available under this section shall be distributed on a pro            

                                                                                

23  rata basis to the remaining centers, as determined by the                   

                                                                                

24  department.                                                                 

                                                                                

25      (6) In order to receive state funds under this section, a                   

                                                                                

26  grant recipient shall allow access for the department or the                

                                                                                

27  department's designee to audit all records related to the program           


                                                                                

1   for which it receives such funds.  The grant recipient shall                

                                                                                

2   reimburse the state for all disallowances found in the audit.               

                                                                                

3       (7) Not later than September 30, 2007, the department shall                 

                                                                                

4   reevaluate and update the comprehensive master plan described in            

                                                                                

5   subsection (1).  , including any recommendations for upgrading              

                                                                                

6   satellite extensions to full centers.                                       

                                                                                

7       (8) The department shall give preference in awarding the                    

                                                                                

8   federal grants allocated in subsection (1) to eligible existing             

                                                                                

9   mathematics and science centers.                                            

                                                                                

10      (9) In order to receive state funds under this section, a                   

                                                                                

11  grant recipient shall provide at least a 10% local match from               

                                                                                

12  local public or private resources for the funds received under              

                                                                                

13  this section.                                                               

                                                                                

14      (10) As used in this section:                                               

                                                                                

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

                                                                                

16      (b) "DED-OESE" means the DED office of elementary and                       

                                                                                

17  secondary education.                                                        

                                                                                

18      Sec. 101.  (1) To be eligible to receive state aid under                    

                                                                                

19  this act, not later than the fifth Wednesday after the pupil                

                                                                                

20  membership count day and not later than the fifth Wednesday after           

                                                                                

21  the supplemental count day, each district superintendent through            

                                                                                

22  the secretary of the district's board shall file with the                   

                                                                                

23  intermediate superintendent a certified and sworn copy of the               

                                                                                

24  number of pupils enrolled and in regular daily attendance in the            

                                                                                

25  district as of the pupil membership count day and as of the                 

                                                                                

26  supplemental count day, as applicable, for the current school               

                                                                                

27  year.  In addition, a district maintaining school during the                


                                                                                

1   entire year, as provided under section 1561 of the revised school           

                                                                                

2   code, MCL 380.1561, shall file with the intermediate                        

                                                                                

3   superintendent a certified and sworn copy of the number of pupils           

                                                                                

4   enrolled and in regular daily attendance in the district for the            

                                                                                

5   current school year pursuant to rules promulgated by the                    

                                                                                

6   superintendent.  Not later than the seventh Wednesday after the             

                                                                                

7   pupil membership count day and not later than the seventh                   

                                                                                

8   Wednesday after the supplemental count day, the intermediate                

                                                                                

9   district shall transmit to the center  the data filed by  revised           

                                                                                

10  data, as applicable, for each of its constituent districts.  If a           

                                                                                

11  district fails to file the sworn and certified copy with the                

                                                                                

12  intermediate superintendent in a timely manner, as required under           

                                                                                

13  this subsection, the intermediate district shall notify the                 

                                                                                

14  department and state aid due to be distributed under this act               

                                                                                

15  shall be withheld from the defaulting district immediately,                 

                                                                                

16  beginning with the next payment after the failure and continuing            

                                                                                

17  with each payment until the district complies with this                     

                                                                                

18  subsection.  If an intermediate district fails to transmit the              

                                                                                

19  data in its possession in a timely and accurate manner to the               

                                                                                

20  department  center, as required under this subsection, state aid           

                                                                                

21  due to be distributed under this act shall be withheld from the             

                                                                                

22  defaulting intermediate district immediately, beginning with the            

                                                                                

23  next payment after the failure and continuing with each payment             

                                                                                

24  until the intermediate district complies with this subsection.              

                                                                                

25  If a district or intermediate district does not comply with this            

                                                                                

26  subsection by the end of the fiscal year, the district or                   

                                                                                

27  intermediate district forfeits the amount withheld.  A person who           


                                                                                

1   willfully falsifies a figure or statement in the certified and              

                                                                                

2   sworn copy of enrollment shall be punished in the manner                    

                                                                                

3   prescribed by section 161.                                                  

                                                                                

4       (2) To be eligible to receive state aid under this act, not                 

                                                                                

5   later than the twenty-fourth Wednesday after the pupil membership           

                                                                                

6   count day and not later than the twenty-fourth Wednesday after              

                                                                                

7   the supplemental count day, an intermediate district shall submit           

                                                                                

8   to the center, in a form and manner prescribed by the center, the           

                                                                                

9   audited enrollment and attendance data for the pupils of its                

                                                                                

10  constituent districts and of the intermediate district.  If an              

                                                                                

11  intermediate district fails to transmit the audited data as                 

                                                                                

12  required under this subsection, state aid due to be distributed             

                                                                                

13  under this act shall be withheld from the defaulting intermediate           

                                                                                

14  district immediately, beginning with the next payment after the             

                                                                                

15  failure and continuing with each payment until the intermediate             

                                                                                

16  district complies with this subsection.  If an intermediate                 

                                                                                

17  district does not comply with this subsection by the end of the             

                                                                                

18  fiscal year, the intermediate district forfeits the amount                  

                                                                                

19  withheld.                                                                   

                                                                                

20      (3) Except as otherwise provided in this section, each                      

                                                                                

21  district shall provide at least 1,098 hours of pupil                        

                                                                                

22  instruction.  Except as otherwise provided in this act, a                   

                                                                                

23  district failing to comply with the required minimum hours of               

                                                                                

24  pupil instruction under this subsection shall forfeit from its              

                                                                                

25  total state aid allocation an amount determined by applying a               

                                                                                

26  ratio of the number of hours the district was in noncompliance in           

                                                                                

27  relation to the required minimum number of hours under this                 


     Senate Bill No. 1069 (H-1) as amended June 9, 2004

   

1   subsection.  Not later than August 1, the board of each district            

                                                                                

2   shall certify to the department the number of hours of pupil                

                                                                                

3   instruction in the previous school year.  If the district did not           

                                                                                

4   provide at least the required minimum number of hours of pupil              

                                                                                

5   instruction under this subsection, the deduction of state aid               

                                                                                

6   shall be made in the following fiscal year from the first payment           

                                                                                

7   of state school aid.  A district is not subject to forfeiture of            

                                                                                

8   funds under this subsection for a fiscal year in which a                    

                                                                                

9   forfeiture was already imposed under subsection (6).  Hours lost            

                                                                                

10  because of strikes or teachers' conferences shall not be counted            

                                                                                

11  as days or hours of pupil instruction.  A district not having at            

                                                                                

12  least 75% of the district's membership in attendance on any day             

                                                                                

13  of pupil instruction shall receive state aid in that proportion             

                                                                                

14  of 1/180 that the actual percent of attendance bears to the                 

                                                                                

15  specified percentage.  The superintendent shall promulgate rules            

                                                                                

16  for the implementation of this subsection.                                  

                                                                                

17      (4) Except as otherwise provided in this subsection, the                    

                                                                                

18  first 30 hours for which pupil instruction is not provided                  

                                                                                

19  because of conditions not within the control of school                      

                                                                                

20  authorities, such as severe storms, fires, epidemics, [utility power unavailability, water or sewer failure,] or health                              

                                                                                

21  conditions as defined by the city, county, or state health                  

                                                                                

22  authorities, shall be counted as hours of pupil instruction.  In            

                                                                                

23  addition, for  2002-2003  2003-2004 only, the department shall              

                                                                                

24  count  as days of pupil instruction not more than 5 additional              

                                                                                

25  days, and shall count  as hours of pupil instruction not more               

                                                                                

26  than  30  20 additional hours  ,  for which pupil instruction was           

                                                                                

27  not provided in a  district from April 3, 2003 to April 11, 2003            


                                                                                

1   due to a storm  school in a district due to structural roof and             

                                                                                

2   truss damage that required the school to be closed.  Subsequent             

                                                                                

3   such hours shall not be counted as hours of pupil instruction.              

                                                                                

4       (5) A district shall not forfeit part of its state aid                      

                                                                                

5   appropriation because it adopts or has in existence an                      

                                                                                

6   alternative scheduling program for pupils in kindergarten if the            

                                                                                

7   program provides at least the number of hours required under                

                                                                                

8   subsection (3) for a full-time equated membership for a pupil in            

                                                                                

9   kindergarten as provided under section 6(4).                                

                                                                                

10      (6) Not later than April 15 of each fiscal year, the board of               

                                                                                

11  each district shall certify to the department the planned number            

                                                                                

12  of hours of pupil instruction in the district for the school year           

                                                                                

13  ending in the fiscal year.  In addition to any other penalty or             

                                                                                

14  forfeiture under this section, if at any time the department                

                                                                                

15  determines that 1 or more of the following has occurred in a                

                                                                                

16  district, the district shall forfeit in the current fiscal year             

                                                                                

17  beginning in the next payment to be calculated by the department            

                                                                                

18  a proportion of the funds due to the district under this act that           

                                                                                

19  is equal to the proportion below the required minimum number of             

                                                                                

20  hours of pupil instruction under subsection (3), as specified in            

                                                                                

21  the following:                                                              

                                                                                

22      (a) The district fails to operate its schools for at least                  

                                                                                

23  the required minimum number of hours of pupil instruction under             

                                                                                

24  subsection (3) in a school year, including hours counted under              

                                                                                

25  subsection (4).                                                             

                                                                                

26      (b) The board of the district takes formal action not to                    

                                                                                

27  operate its schools for at least the required minimum number of             


                                                                                

1   hours of pupil instruction under subsection (3) in a school year,           

                                                                                

2   including hours counted under subsection (4).                               

                                                                                

3       (7) In providing the minimum number of hours of pupil                       

                                                                                

4   instruction required under subsection (3), a district shall use             

                                                                                

5   the following guidelines, and a district shall maintain records             

                                                                                

6   to substantiate its compliance with the following guidelines:               

                                                                                

7       (a) Except as otherwise provided in this subsection, a pupil                

                                                                                

8   must be scheduled for at least the required minimum number of               

                                                                                

9   hours of instruction, excluding study halls, or at least the sum            

                                                                                

10  of 90 hours plus the required minimum number of hours of                    

                                                                                

11  instruction, including up to 2 study halls.                                 

                                                                                

12      (b) The time a pupil is assigned to any tutorial activity in                

                                                                                

13  a block schedule may be considered instructional time, unless               

                                                                                

14  that time is determined in an audit to be a study hall period.              

                                                                                

15      (c)  A  Except as otherwise provided in this subdivision, a                 

                                                                                

16  pupil in grades 9 to 12 for whom a reduced schedule is determined           

                                                                                

17  to be in the individual pupil's best educational interest must be           

                                                                                

18  scheduled for a number of hours equal to at least 80% of the                

                                                                                

19  required minimum number of hours of pupil instruction to be                 

                                                                                

20  considered a full-time equivalent pupil.  A pupil in grades 9 to            

                                                                                

21  12 who is scheduled in a 4-block schedule may receive a reduced             

                                                                                

22  schedule under this subsection if the pupil is scheduled for a              

                                                                                

23  number of hours equal to at least 75% of the required minimum               

                                                                                

24  number of hours of pupil instruction to be considered a full-time           

                                                                                

25  equivalent pupil.                                                           

                                                                                

26      (d) If a pupil in grades 9 to 12 who is enrolled in a                       

                                                                                

27  cooperative education program or a special education pupil cannot           


                                                                                

1   receive the required minimum number of hours of pupil instruction           

                                                                                

2   solely because of travel time between instructional sites during            

                                                                                

3   the school day, that travel time, up to a maximum of 3 hours per            

                                                                                

4   school week, shall be considered to be pupil instruction time for           

                                                                                

5   the purpose of determining whether the pupil is receiving the               

                                                                                

6   required minimum number of hours of pupil instruction.  However,            

                                                                                

7   if a district demonstrates to the satisfaction of the department            

                                                                                

8   that the travel time limitation under this subdivision would                

                                                                                

9   create undue costs or hardship to the district, the department              

                                                                                

10  may consider more travel time to be pupil instruction time for              

                                                                                

11  this purpose.                                                               

                                                                                

12      (8) The department shall apply the guidelines under                         

                                                                                

13  subsection (7) in calculating the full-time equivalency of                  

                                                                                

14  pupils.                                                                     

                                                                                

15      (9) Upon application by the district for a particular fiscal                

                                                                                

16  year, the superintendent may waive for a district the minimum               

                                                                                

17  number of hours of pupil instruction requirement of subsection              

                                                                                

18  (3) for a department-approved alternative education program.  If            

                                                                                

19  a district applies for and receives a waiver under this                     

                                                                                

20  subsection and complies with the terms of the waiver, for the               

                                                                                

21  fiscal year covered by the waiver the district is not subject to            

                                                                                

22  forfeiture under this section for the specific program covered by           

                                                                                

23  the waiver.                                                                 

                                                                                

24      (10) A district may count up to 51 hours of qualifying                      

                                                                                

25  professional development for teachers, including the 5 hours of             

                                                                                

26  online professional development provided by the Michigan virtual            

                                                                                

27  university under section 98, as hours of pupil instruction.  A              


                                                                                

1   district that elects to use this exception shall notify the                 

                                                                                

2   department of its election.  As used in this subsection,                    

                                                                                

3   "qualifying professional development" means professional                    

                                                                                

4   development that is focused on 1 or more of the following:                  

                                                                                

5       (a) Achieving or improving adequate yearly progress as                      

                                                                                

6   defined under the no child left behind act of 2001, Public Law              

                                                                                

7   107-110.                                                                    

                                                                                

8       (b) Achieving accreditation or improving a school's                         

                                                                                

9   accreditation status under section 1280 of the revised school               

                                                                                

10  code, MCL 380.1280.                                                         

                                                                                

11      (c) Achieving highly qualified teacher status as defined                    

                                                                                

12  under the no child left behind act of 2001, Public Law 107-110.             

                                                                                

13      (d) Maintaining teacher certification.                                      

                                                                                

14      Sec. 104a.  (1) In order to receive state aid under this                    

                                                                                

15  act, a district shall comply with this section and shall                    

                                                                                

16  administer state assessments to high school pupils in the subject           

                                                                                

17  areas of  communications skills  English language arts,                     

                                                                                

18  mathematics, science, and social studies.  If the department  of            

                                                                                

19  treasury or the Michigan assessment governing board, as                     

                                                                                

20  applicable,  determines that it would be consistent with the                

                                                                                

21  purposes of this section, the department  of treasury or the                

                                                                                

22  Michigan assessment governing board, as applicable,  may                    

                                                                                

23  designate the grade 11 Michigan education assessment program                

                                                                                

24  tests or the ACT/ACT work keys tests as the assessments to be               

                                                                                

25  used for the purposes of this section.  The district shall                  

                                                                                

26  include on the pupil's high school transcript all of the                    

                                                                                

27  following:                                                                  


                                                                                

1       (a) For each high school graduate who has completed a subject               

                                                                                

2   area assessment under this section, the pupil's scaled score on             

                                                                                

3   the assessment.                                                             

                                                                                

4       (b) If the pupil's scaled score on a subject area assessment                

                                                                                

5   falls within the range required under subsection (2) for a                  

                                                                                

6   category established under subsection (2), an indication that the           

                                                                                

7   pupil has achieved state endorsement for that subject area.                 

                                                                                

8       (c) The number of school days the pupil was in attendance at                

                                                                                

9   school each school year during high school and the total number             

                                                                                

10  of school days in session for each of those school years.                   

                                                                                

11      (2) The department  of treasury  shall develop scaled scores                

                                                                                

12  for reporting subject area assessment results for each of the               

                                                                                

13  subject areas under this section.  The department  of treasury              

                                                                                

14  shall establish 3 categories for each subject area indicating               

                                                                                

15  basic competency, above average, and outstanding, and shall                 

                                                                                

16  establish the scaled score range required for each category.  The           

                                                                                

17  department  of treasury  shall design and distribute to                     

                                                                                

18  districts, intermediate districts, and nonpublic schools a simple           

                                                                                

19  and concise document that describes these categories in each                

                                                                                

20  subject area and indicates the scaled score ranges for each                 

                                                                                

21  category in each subject area.  A district may award a high                 

                                                                                

22  school diploma to a pupil who successfully completes local                  

                                                                                

23  district requirements established in accordance with state law              

                                                                                

24  for high school graduation, regardless of whether the pupil is              

                                                                                

25  eligible for any state endorsement.                                         

                                                                                

26      (3) The assessments administered for the purposes of this                   

                                                                                

27  section shall be administered to pupils during the last 30 school           


                                                                                

1   days of grade 11.  The department  of treasury  shall ensure that           

                                                                                

2   the assessments are scored and the scores are returned to pupils,           

                                                                                

3   their parents or legal guardians, and districts not later than              

                                                                                

4   the beginning of the pupil's first semester of grade 12.  The               

                                                                                

5   department  of treasury  shall arrange for those portions of a              

                                                                                

6   pupil's assessment that cannot be scored mechanically to be                 

                                                                                

7   scored in Michigan by persons who are Michigan teachers, retired            

                                                                                

8   Michigan teachers, or Michigan school administrators and who have           

                                                                                

9   been trained in scoring the assessments.  The returned scores               

                                                                                

10  shall indicate the pupil's scaled score for each subject area               

                                                                                

11  assessment, the range of scaled scores for each subject area, and           

                                                                                

12  the range of scaled scores required for each category established           

                                                                                

13  under subsection (2).  In reporting the scores to pupils,                   

                                                                                

14  parents, and schools, the department  of treasury  shall provide            

                                                                                

15  specific, meaningful, and timely feedback on the pupil's                    

                                                                                

16  performance on the assessment.                                              

                                                                                

17      (4) For each pupil who does not achieve state endorsement in                

                                                                                

18  1 or more subject areas, the board of the district in which the             

                                                                                

19  pupil is enrolled shall provide that there be at least 1 meeting            

                                                                                

20  attended by at least the pupil and a member of the district's               

                                                                                

21  staff or a local or intermediate district consultant who is                 

                                                                                

22  proficient in the measurement and evaluation of pupils.  The                

                                                                                

23  district may provide the meeting as a group meeting for pupils in           

                                                                                

24  similar circumstances.  If the pupil is a minor, the district               

                                                                                

25  shall invite and encourage the pupil's parent, legal guardian, or           

                                                                                

26  person in loco parentis to attend the meeting and shall mail a              

                                                                                

27  notice of the meeting to the pupil's parent, legal guardian, or             


                                                                                

1   person in loco parentis.  The purpose of this meeting and any               

                                                                                

2   subsequent meeting under this subsection shall be to determine an           

                                                                                

3   educational program for the pupil designed to have the pupil                

                                                                                

4   achieve state endorsement in each subject area in which he or she           

                                                                                

5   did not achieve state endorsement.  In addition, a district may             

                                                                                

6   provide for subsequent meetings with the pupil conducted by a               

                                                                                

7   high school counselor or teacher designated by the pupil's high             

                                                                                

8   school principal, and shall invite and encourage the pupil's                

                                                                                

9   parent, legal guardian, or person in loco parentis to attend the            

                                                                                

10  subsequent meetings.  The district shall provide special programs           

                                                                                

11  for the pupil or develop a program using the educational programs           

                                                                                

12  regularly provided by the district unless the board of the                  

                                                                                

13  district decides otherwise and publishes and explains its                   

                                                                                

14  decision in a public justification report.                                  

                                                                                

15      (5) A pupil who wants to repeat an assessment administered                  

                                                                                

16  under this section may repeat the assessment, without charge to             

                                                                                

17  the pupil, in the next school year or after graduation.  An                 

                                                                                

18  individual may repeat an assessment at any time the district                

                                                                                

19  administers an applicable assessment instrument or during a                 

                                                                                

20  retesting period under subsection (7).                                      

                                                                                

21      (6) The department  of treasury  shall ensure that the length               

                                                                                

22  of the assessments used for the purposes of this section and the            

                                                                                

23  combined total time necessary to administer all of the                      

                                                                                

24  assessments are the shortest possible that will still maintain              

                                                                                

25  the degree of reliability and validity of the assessment results            

                                                                                

26  determined necessary by the department.  of treasury.  The                  

                                                                                

27  department  of treasury  shall ensure that the maximum total                


                                                                                

1   combined length of time that schools are required to set aside              

                                                                                

2   for administration of all of the assessments used for the                   

                                                                                

3   purposes of this section does not exceed 8 hours.  However, this            

                                                                                

4   subsection does not limit the amount of time that individuals may           

                                                                                

5   have to complete the assessments.                                           

                                                                                

6       (7) The department  of treasury  shall establish, schedule,                 

                                                                                

7   and arrange periodic retesting periods throughout the year for              

                                                                                

8   individuals who desire to repeat an assessment under this                   

                                                                                

9   section.  The department  of treasury  shall coordinate the                 

                                                                                

10  arrangements for administering the repeat assessments and shall             

                                                                                

11  ensure that the retesting is made available at least within each            

                                                                                

12  intermediate district and, to the extent possible, within each              

                                                                                

13  district.                                                                   

                                                                                

14      (8) A district shall provide accommodations to a pupil with                 

                                                                                

15  disabilities for the assessments required under this section, as            

                                                                                

16  provided under section 504 of title V of the rehabilitation act             

                                                                                

17  of 1973,  Public Law 93-112,  29  U.S.C.  USC 794; subtitle A of            

                                                                                

18  title II of the Americans with disabilities act of 1990,  Public            

                                                                                

19  Law 101-336,  42  U.S.C.  USC 12131 to 12134; and the                       

                                                                                

20  implementing regulations for those statutes.                                

                                                                                

21      (9) For the purposes of this section, the department  of                    

                                                                                

22  treasury  shall develop or select and approve assessment                    

                                                                                

23  instruments to measure pupil performance in  communications                 

                                                                                

24  skills  English language arts, mathematics, social studies, and             

                                                                                

25  science.  Unless the department  of treasury  selects and                   

                                                                                

26  approves the ACT/ACT work keys tests, the assessment instruments            

                                                                                

27  shall be based on the model core academic content standards                 


                                                                                

1   objectives under section 1278 of the revised school code,                   

                                                                                

2   MCL 380.1278.                                                               

                                                                                

3       (10) Upon written request by the pupil's parent or legal                    

                                                                                

4   guardian stating that the request is being made for the purpose             

                                                                                

5   of providing the pupil with an opportunity to qualify to take 1             

                                                                                

6   or more postsecondary courses as an eligible student under the              

                                                                                

7   postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to           

                                                                                

8   388.524, the board of a district shall allow a pupil who is in at           

                                                                                

9   least grade 10 to take an assessment administered under this                

                                                                                

10  section without charge at any time the district regularly                   

                                                                                

11  administers the assessment or during a retesting period                     

                                                                                

12  established under subsection (7).  A district is not required to            

                                                                                

13  include in an annual education report, or in any other report               

                                                                                

14  submitted to the department  of treasury  for accreditation                 

                                                                                

15  purposes, results of assessments taken under this subsection by a           

                                                                                

16  pupil in grade 11 or lower until the results of that pupil's                

                                                                                

17  graduating class are otherwise reported.                                    

                                                                                

18      (11) All assessment instruments developed or selected and                   

                                                                                

19  approved by the state under any statute or rule for a purpose               

                                                                                

20  related to K to 12 education shall be objective-oriented and                

                                                                                

21  consistent with the model core academic content standards                   

                                                                                

22  objectives under section 1278 of the revised school code,                   

                                                                                

23  MCL 380.1278.                                                               

                                                                                

24      (12) A person who has graduated from high school after 1996                 

                                                                                

25  and who has not previously taken an assessment under this section           

                                                                                

26  may take an assessment used for the purposes of this section,               

                                                                                

27  without charge to the person, at the district from which he or              


                                                                                

1   she graduated from high school at any time that district                    

                                                                                

2   administers the assessment or during a retesting period scheduled           

                                                                                

3   under subsection (7) and have his or her scaled score on the                

                                                                                

4   assessment included on his or her high school transcript.  If the           

                                                                                

5   person's scaled score on a subject area assessment falls within             

                                                                                

6   the range required under subsection (2) for a category                      

                                                                                

7   established under subsection (2), the district shall also                   

                                                                                

8   indicate on the person's high school transcript that the person             

                                                                                

9   has achieved state endorsement for that subject area.                       

                                                                                

10      (13) A child who is a student in a nonpublic school or home                 

                                                                                

11  school may take an assessment under this section.  To take an               

                                                                                

12  assessment, a child who is a student in a home school shall                 

                                                                                

13  contact the district in which the child resides, and that                   

                                                                                

14  district shall administer the assessment, or the child may take             

                                                                                

15  the assessment at a nonpublic school if allowed by the nonpublic            

                                                                                

16  school.  Upon request from a nonpublic school, the department  of           

                                                                                

17  treasury  shall supply assessments and the nonpublic school may             

                                                                                

18  administer the assessment.                                                  

                                                                                

19      (14) The purpose of the assessment under this section is to                 

                                                                                

20  assess pupil performance in mathematics, science, social studies,           

                                                                                

21  and  communication  English language arts for the purpose of                

                                                                                

22  improving academic achievement and establishing a statewide                 

                                                                                

23  standard of competency.  The assessment under this section                  

                                                                                

24  provides a common measure of data that will contribute to the               

                                                                                

25  improvement of Michigan schools' curriculum and instruction by              

                                                                                

26  encouraging alignment with Michigan's curriculum framework                  

                                                                                

27  standards.  These standards are based upon the expectations of              


                                                                                

1   what pupils should know and be able to do by the end of grade               

                                                                                

2   11.                                                                         

                                                                                

3       (15) If the Michigan assessment governing board is                          

                                                                                

4   established by law, the Michigan assessment governing board shall           

                                                                                

5   administer this section and shall have all of the powers and                

                                                                                

6   duties as otherwise provided under this section for the                     

                                                                                

7   department of treasury.                                                     

                                                                                

8       (15)  (16)  As used in this section,  :                                     

                                                                                

9       (a) "Communications skills" means reading and writing.                      

                                                                                

10      (b) "Social  "social studies" means geography, history,                     

                                                                                

11  economics, and American government.                                         

                                                                                

12      Sec. 107.  (1) From the appropriation in section 11, there                  

                                                                                

13  is allocated an amount not to exceed  $20,000,000.00                        

                                                                                

14  $19,999,900.00 for  2003-2004  2004-2005 for adult education                

                                                                                

15  programs authorized under this section.                                     

                                                                                

16      (2) To be eligible to be a participant funded under this                    

                                                                                

17  section, a person shall be enrolled in an adult basic education             

                                                                                

18  program, an adult English as a second language program, a general           

                                                                                

19  education  educational development (G.E.D.)  test preparation              

                                                                                

20  program, a job or employment related program, or a high school              

                                                                                

21  completion program, that meets the requirements of this section,            

                                                                                

22  and shall meet either of the following, as applicable:                      

                                                                                

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

                                                                                

24  general  education  educational development (G.E.D.)                        

                                                                                

25  certificate, the individual meets 1 of the following:                       

                                                                                

26                                                                               (i) Is less than 20 years of age on September 1 of the school                       

                                                                                

27  year and is enrolled in the state technical institute and                   


                                                                                

1   rehabilitation center.                                                      

                                                                                

2       (ii) Is less than 20 years of age on September 1 of the                      

                                                                                

3   school year, is not attending an institution of higher education,           

                                                                                

4   and is enrolled in a job or employment-related program through a            

                                                                                

5   referral by an employer.                                                    

                                                                                

6       (iii) Is enrolled in an English as a second language                         

                                                                                

7   program.                                                                    

                                                                                

8       (iv) Is enrolled in a high school completion program.                        

                                                                                

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

                                                                                

10  or G.E.D. certificate, the individual meets 1 of the following:             

                                                                                

11                                                                               (i) Is at least 20 years of age on September 1 of the school                        

                                                                                

12  year.                                                                       

                                                                                

13      (ii) Is at least 16 years of age on September 1 of the school                

                                                                                

14  year, has been permanently expelled from school under section               

                                                                                

15  1311(2) or 1311a of the revised school code, MCL 380.1311 and               

                                                                                

16  380.1311a, and has no appropriate alternative education program             

                                                                                

17  available through his or her district of residence.                         

                                                                                

18      (3) Except as otherwise provided in subsection (4), the                     

                                                                                

19  amount allocated under subsection (1) shall be distributed as               

                                                                                

20  follows:                                                                    

                                                                                

21      (a) For districts and consortia that received payments for                  

                                                                                

22  2001-2002  2003-2004 under this section, the amount allocated to           

                                                                                

23  each for  2003-2004  2004-2005 shall be based on the number of              

                                                                                

24  participants served by the district or consortium for  2003-2004            

                                                                                

25  2004-2005, using the amount allocated per full-time equated                 

                                                                                

26  participant under subsection (5), up to a maximum total                     

                                                                                

27  allocation under this section in an amount equal to  26.67% of              


                                                                                

1   the amount the district or consortium received for  2001-2002               

                                                                                

2   2003-2004 under this section before any reallocations made for              

                                                                                

3   2001-2002  2003-2004 under subsection (4).                                 

                                                                                

4       (b) A district or consortium that received funding in                       

                                                                                

5   2002-2003  2003-2004 under this section may operate                        

                                                                                

6   independently of a consortium or join or form a consortium for              

                                                                                

7   2003-2004  2004-2005.  The allocation for  2003-2004  2004-2005            

                                                                                

8   to the district or the newly formed consortium under this                   

                                                                                

9   subsection shall be determined by the department of  career                 

                                                                                

10  development  labor and economic growth and shall be based on the            

                                                                                

11  proportion of the amounts that are attributable to the district             

                                                                                

12  or consortium that received funding in  2002-2003  2003-2004.  A            

                                                                                

13  district or consortium described in this subdivision shall notify           

                                                                                

14  the department of career development of its intention with regard           

                                                                                

15  to  2003-2004  2004-2005 by October 1,  2003  2004.                         

                                                                                

16      (4) A district that operated an adult education program in                  

                                                                                

17  2002-2003  2003-2004 and does not intend to operate a program in           

                                                                                

18  2003-2004  2004-2005 shall notify the department of  career                

                                                                                

19  development  labor and economic growth by October 1,  2003  2004            

                                                                                

20  of its intention.  The funds intended to be allocated under this            

                                                                                

21  section to a district that does not operate a program in                    

                                                                                

22  2003-2004  2004-2005 and the unspent funds originally allocated            

                                                                                

23  under this section to a district or consortium that subsequently            

                                                                                

24  operates a program at less than the level of funding allocated              

                                                                                

25  under subsection (3) shall instead be proportionately reallocated           

                                                                                

26  to the other districts described in subsection (3)(a) that are              

                                                                                

27  operating an adult education program in  2003-2004  2004-2005               


                                                                                

1   under this section.                                                         

                                                                                

2       (5) The amount allocated under this section per full-time                   

                                                                                

3   equated participant is $2,850.00 for a 450-hour program.  The               

                                                                                

4   amount shall be proportionately reduced for a program offering              

                                                                                

5   less than 450 hours of instruction.                                         

                                                                                

6       (6) An adult basic education program or an adult English as a               

                                                                                

7   second language program operated on a year-round or school year             

                                                                                

8   basis may be funded under this section, subject to all of the               

                                                                                

9   following:                                                                  

                                                                                

10      (a) The program enrolls adults who are determined by an                     

                                                                                

11  appropriate assessment to be below ninth grade level in reading             

                                                                                

12  or mathematics, or both, or to lack basic English proficiency.              

                                                                                

13      (b) The program tests individuals for eligibility under                     

                                                                                

14  subdivision (a) before enrollment and tests participants to                 

                                                                                

15  determine progress after every 90 hours of attendance, using                

                                                                                

16  assessment instruments approved by the department of  career                

                                                                                

17  development  labor and economic growth.                                     

                                                                                

18      (c) A participant in an adult basic education program is                    

                                                                                

19  eligible for reimbursement until 1 of the following occurs:                 

                                                                                

20                                                                               (i) The participant's reading and mathematics proficiency are                       

                                                                                

21  assessed at or above the ninth grade level.                                 

                                                                                

22      (ii) The participant fails to show progress on 2 successive                  

                                                                                

23  assessments after having completed at least 450 hours of                    

                                                                                

24  instruction.                                                                

                                                                                

25      (d) A funding recipient enrolling a participant in an English               

                                                                                

26  as a second language program is eligible for funding according to           

                                                                                

27  subsection (10) (11) until the participant meets 1 of the following:        


                                                                                

1                                                                                (i) The participant is assessed as having attained basic                            

                                                                                

2   English proficiency.                                                        

                                                                                

3       (ii) The participant fails to show progress on 2 successive                  

                                                                                

4   assessments after having completed at least 450 hours of                    

                                                                                

5   instruction.  The department of  career development  labor and              

                                                                                

6   economic growth shall provide information to a funding recipient            

                                                                                

7   regarding appropriate assessment instruments for this program.              

                                                                                

8       (7) A general  education  educational development (G.E.D.)                  

                                                                                

9   test preparation program operated on a year-round or school year            

                                                                                

10  basis may be funded under this section, subject to all of the               

                                                                                

11  following:                                                                  

                                                                                

12      (a) The program enrolls adults who do not have a high school                

                                                                                

13  diploma.                                                                    

                                                                                

14      (b) The program shall administer a G.E.D. pre-test approved                 

                                                                                

15  by the department of  career development  labor and economic                

                                                                                

16  growth before enrolling an individual to determine the                      

                                                                                

17  individual's potential for success on the G.E.D. test, and shall            

                                                                                

18  administer other tests after every 90 hours of attendance to                

                                                                                

19  determine a participant's readiness to take the G.E.D. test.                

                                                                                

20      (c) A funding recipient shall receive funding according to                  

                                                                                

21  subsection (10) (11) for a participant, and a participant may be            

                                                                                

22  enrolled in the program until 1 of the following occurs:                    

                                                                                

23                                                                               (i) The participant passes the G.E.D. test.                                         

                                                                                

24      (ii) The participant fails to show progress on 2 successive                  

                                                                                

25  tests used to determine readiness to take the G.E.D. test after             

                                                                                

26  having completed at least 450 hours of instruction.                         

                                                                                

27      (8) A high school completion program operated on a year-round               


                                                                                

1   or school year basis may be funded under this section, subject to           

                                                                                

2   all of the following:                                                       

                                                                                

3       (a) The program enrolls adults who do not have a high school                

                                                                                

4   diploma.                                                                    

                                                                                

5       (b) A funding recipient shall receive funding according to                  

                                                                                

6   subsection (10) (11) for a participant in a course offered under this       

                                                                                

7   subsection until 1 of the following occurs:                                 

                                                                                

8                                                                                (i) The participant passes the course and earns a high school                       

                                                                                

9   diploma.                                                                    

                                                                                

10      (ii) The participant fails to earn credit in 2 successive                    

                                                                                

11  semesters or terms in which the participant is enrolled after               

                                                                                

12  having completed at least 900 hours of instruction.                         

                                                                                

13      (9) A job or employment-related adult education program                     

                                                                                

14  operated on a year-round or school year basis may be funded under           

                                                                                

15  this section, subject to all of the following:                              

                                                                                

16      (a) The program enrolls adults referred by their employer who               

                                                                                

17  are less than 20 years of age, have a high school diploma, are              

                                                                                

18  determined to be in need of remedial mathematics or communication           

                                                                                

19  arts skills and are not attending an institution of higher                  

                                                                                

20  education.                                                                  

                                                                                

21      (b) An individual may be enrolled in this program and the                   

                                                                                

22  grant recipient shall receive funding according to subsection               

                                                                                

23  (10) (11) until 1 of the following occurs:                                  

                                                                                

24                                                                               (i) The individual achieves the requisite skills as                                 

                                                                                

25  determined by appropriate assessment instruments administered at            

                                                                                

26  least after every 90 hours of attendance.                                   

                                                                                

27      (ii) The individual fails to show progress on 2 successive                   


                                                                                

1   assessments after having completed at least 450 hours of                    

                                                                                

2   instruction.  The department of  career development  labor and              

                                                                                

3   economic growth shall provide information to a funding recipient            

                                                                                

4   regarding appropriate assessment instruments for this program.              

                                                                                

5       (10) In order to receive funds under this section, a district               

                                                                                

6   or intermediate district shall meet all of the following:                   

                                                                                

7       (a) Be part of an adult education strategic plan.                           

                                                                                

8       (b) Develop individual adult education plans containing the                 

                                                                                

9   educational goals and objectives for each participant.                      

                                                                                

10      (c) Use research-based instructional practices and technology               

                                                                                

11  that have proven to be effective for adult learners.                        

                                                                                

12      (d) Coordinate with other available resources in the                        

                                                                                

13  community, such as schools, postsecondary institutions, job                 

                                                                                

14  training programs, one-stop centers, and social service                     

                                                                                

15  agencies.                                                                   

                                                                                

16      (e) Offer job and postsecondary education counseling                        

                                                                                

17  services.                                                                   

                                                                                

18      (f) Report participant outcomes and other measures of program               

                                                                                

19  performance in a form and manner approved by the department of              

                                                                                

20  labor and economic growth.                                                  

                                                                                

21      (11)  (10)  A funding recipient shall receive payments under                

                                                                                

22  this section in accordance with the following:                              

                                                                                

23      (a) Ninety percent for enrollment of eligible participants.                 

                                                                                

24      (b) Ten percent for completion of the adult basic education                 

                                                                                

25  objectives by achieving an increase of at least 1 grade level of            

                                                                                

26  proficiency in reading or mathematics; for achieving basic                  

                                                                                

27  English proficiency; for passage of the G.E.D. test; for passage            


                                                                                

1   of a course required for a participant to attain a high school              

                                                                                

2   diploma; or for completion of the course and demonstrated                   

                                                                                

3   proficiency in the academic skills to be learned in the course,             

                                                                                

4   as applicable.                                                              

                                                                                

5       (12)  (11)  As used in this section:  , "participant"                       

                                                                                

6       (a) "Participant" means the sum of the number of full-time                  

                                                                                

7   equated individuals enrolled in and attending a                             

                                                                                

8   department-approved adult education program under this section,             

                                                                                

9   using quarterly participant count days on the schedule described            

                                                                                

10  in section 6(7)(b).                                                         

                                                                                

11      (b) "Workforce development board" means a local workforce                   

                                                                                

12  development board established pursuant to the workforce                     

                                                                                

13  investment act of 1998, Public Law 105-220, and the                         

                                                                                

14  school-to-work opportunities act of 1994, Public Law 103-239, or            

                                                                                

15  the equivalent.                                                             

                                                                                

16      (13)  (12)  A person who is not eligible to be a participant                

                                                                                

17  funded under this section may receive adult education services              

                                                                                

18  upon the payment of tuition.  In addition, a person who is not              

                                                                                

19  eligible to be served in a program under this section due to the            

                                                                                

20  program limitations specified in subsection (6), (7), (8), or (9)           

                                                                                

21  may continue to receive adult education services in that program            

                                                                                

22  upon the payment of tuition.  The tuition level shall be                    

                                                                                

23  determined by the local or intermediate district conducting the             

                                                                                

24  program.                                                                    

                                                                                

25      (14)  (13)  An individual who is an inmate in a state                       

                                                                                

26  correctional facility shall not be counted as a participant under           

                                                                                

27  this section.                                                               


                                                                                

1       (15)  (14)  A district shall not commingle money received                   

                                                                                

2   under this section or from another source for adult education               

                                                                                

3   purposes with any other funds of the district.  A district                  

                                                                                

4   receiving adult education funds shall establish a separate ledger           

                                                                                

5   account for those funds.  This subsection does not prohibit a               

                                                                                

6   district from using general funds of the district to support an             

                                                                                

7   adult education or community education program.                             

                                                                                

8       (16)  (15)  A district or intermediate district receiving                   

                                                                                

9   funds under this section may establish a sliding scale of tuition           

                                                                                

10  rates based upon a participant's family income.  A district or              

                                                                                

11  intermediate district may charge a participant tuition to receive           

                                                                                

12  adult education services under this section from that sliding               

                                                                                

13  scale of tuition rates on a uniform basis.  The amount of tuition           

                                                                                

14  charged per participant shall not exceed the actual operating               

                                                                                

15  cost per participant minus any funds received under this section            

                                                                                

16  per participant.  A district or intermediate district may not               

                                                                                

17  charge a participant tuition under this section if the                      

                                                                                

18  participant's income is at or below 200% of the federal poverty             

                                                                                

19  guidelines published by the United States department of health              

                                                                                

20  and human services.                                                         

                                                                                

21      Sec. 107b.  (1) The department is authorized to implement a                 

                                                                                

22  pilot adult learning system as a pilot project in 1 Michigan                

                                                                                

23  works! region as described under this section.                              

                                                                                

24      (2) Funds that would be allocated under section 107 to adult                

                                                                                

25  education providers located within the Michigan works! region               

                                                                                

26  shall instead be distributed to the Michigan works! agency                  

                                                                                

27  selected by the department to participate in the pilot adult                


                                                                                

1   learning system.                                                            

                                                                                

2       (3) To be eligible to be enrolled as a participant in a pilot               

                                                                                

3   adult learning system, a person shall be at least 16 years of age           

                                                                                

4   as of September 1 of the immediately preceding state fiscal year            

                                                                                

5   and shall meet the following, as applicable:                                

                                                                                

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

                                                                                

7   general educational development (G.E.D.)  certificate, the                  

                                                                                

8   individual is determined to have English language proficiency,              

                                                                                

9   reading, writing, or math skills below employment trainability              

                                                                                

10  skills standards as determined by tests approved by the                     

                                                                                

11  department and is not enrolled in a postsecondary institution.              

                                                                                

12  An individual who has obtained a high school diploma is not                 

                                                                                

13  eligible for enrollment in a G.E.D. test preparation program.               

                                                                                

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

                                                                                

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

                                                                                

16  secondary institution for at least 6 months before enrollment in            

                                                                                

17  an adult learning pilot project and is not enrolled in a                    

                                                                                

18  postsecondary institution.                                                  

                                                                                

19      (4) Not more than 5% of a grant awarded to a Michigan                       

                                                                                

20  works! agency under this section may be used for program                    

                                                                                

21  administration, including contracting for the provision of career           

                                                                                

22  and educational information, counseling services, and assessment            

                                                                                

23  services.                                                                   

                                                                                

24      (5) A Michigan works! agency authorized to participate in a                 

                                                                                

25  pilot adult learner system shall comply with the following                  

                                                                                

26  requirements in a manner approved by the department:                        

                                                                                

27      (a) The Michigan works! agency shall document the need for                  


                                                                                

1   adult learning programs in its region.                                      

                                                                                

2       (b) The Michigan works! agency shall develop a strategic plan               

                                                                                

3   that does all of the following:                                             

                                                                                

4                                                                                (i) Identifies multiple potential adult learning providers,                         

                                                                                

5   including community-based organizations.  Eligible providers                

                                                                                

6   shall have programs that are open entry/open exit, allowing for             

                                                                                

7   the immediate start of training and exit of system upon                     

                                                                                

8   completion of learning goals.                                               

                                                                                

9       (ii) Provides an efficient referral process for participants                 

                                                                                

10  to enroll with appropriate adult learning providers.                        

                                                                                

11      (iii) Coordinates the pilot adult learner system with other                  

                                                                                

12  available resources in the community, such as schools,                      

                                                                                

13  postsecondary institutions, job training programs, and social               

                                                                                

14  service agencies.                                                           

                                                                                

15      (iv) Contains regional promotional and recruitment strategies                

                                                                                

16  to inform potential participants, referral agencies, special                

                                                                                

17  targeted groups, and the general public of available services.              

                                                                                

18      (v) Provides adequate job and postsecondary education                       

                                                                                

19  counseling services.                                                        

                                                                                

20      (c) The local workforce development board shall report                      

                                                                                

21  participant outcomes and other measurements of program                      

                                                                                

22  performance into the Michigan adult education reporting system              

                                                                                

23  (MAERS) administered by the department.                                     

                                                                                

24      (d) The Michigan works! agency shall allow access for the                   

                                                                                

25  department or its designee to audit all records related to the              

                                                                                

26  pilot adult learning system for which it receives funds.  The               

                                                                                

27  agency shall reimburse this state for all disallowances found in            


                                                                                

1   the audit.                                                                  

                                                                                

2       (6) The Michigan works! agency in the pilot adult learning                  

                                                                                

3   system shall award competitive grants to eligible adult learning            

                                                                                

4   providers for the purpose of providing adult learning programs in           

                                                                                

5   their region.  Applications shall be in a form and manner                   

                                                                                

6   prescribed by the department.  The Michigan works! agency shall             

                                                                                

7   reimburse eligible adult learning providers under this section as           

                                                                                

8   follows:                                                                    

                                                                                

9       (a) The contract amount shall be allocated to eligible adult                

                                                                                

10  learning providers based upon the following performance standards           

                                                                                

11  as measured in a manner approved by the department:                         

                                                                                

12                                                                               (i) The percentage of participants taking both a pretest and                        

                                                                                

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

                                                                                

14  math.                                                                       

                                                                                

15      (ii) The percentage of participants showing improvement                      

                                                                                

16  toward goals identified in their individual adult learner plan.             

                                                                                

17      (iii) The percentage of participants achieving their terminal                

                                                                                

18  goals as identified in their individual adult learner plan.                 

                                                                                

19      (b) A provider is eligible for reimbursement for a                          

                                                                                

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

                                                                                

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

                                                                                

22  at employment trainability skills standards or the participant              

                                                                                

23  fails to show progress on 2 successive assessments as determined            

                                                                                

24  by the department.                                                          

                                                                                

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

                                                                                

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

                                                                                

27  participant is assessed as having attained basic English                    


                                                                                

1   proficiency or the participant fails to show progress on 2                  

                                                                                

2   successive assessments as determined by the department.                     

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

6   show progress on 2 successive assessments as determined by the              

                                                                                

7   department.                                                                 

                                                                                

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

                                                                                

9   participant in a high school completion program until the                   

                                                                                

10  participant earns a high school diploma or the participant fails            

                                                                                

11  to show progress as determined by the department.                           

                                                                                

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

                                                                                

13  under this section may receive adult learning services in a pilot           

                                                                                

14  adult learning system upon the payment of tuition or fees for               

                                                                                

15  service.  The tuition or fee level shall be determined by the               

                                                                                

16  adult learning provider and approved by the Michigan                        

                                                                                

17  works! agency.                                                              

                                                                                

18      (8) A provider shall not be reimbursed under this section for               

                                                                                

19  an individual who is an inmate in a state correctional facility.            

                                                                                

20      (9) A provider shall allow access for the Michigan                          

                                                                                

21  works! agency or its designee to audit all records related to the           

                                                                                

22  pilot adult learning system for which it receives funds.  The               

                                                                                

23  adult learning provider shall reimburse this state for all                  

                                                                                

24  disallowances found in the audit.                                           

                                                                                

25      (10) As used in this section:                                               

                                                                                

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

                                                                                

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


                                                                                

1   means a high school pupil receiving educational services in a               

                                                                                

2   nontraditional setting from a district or intermediate district             

                                                                                

3   in order to receive a high school diploma.                                  

                                                                                

4       (b) "Adult learning system" means a system approved by the                  

                                                                                

5   department that improves reading, writing, and math skills to               

                                                                                

6   employment trainability skills standards; an English as a second            

                                                                                

7   language program; a G.E.D. preparation program; a high school               

                                                                                

8   completion program; or a workforce readiness program that                   

                                                                                

9   enhances employment opportunities.                                          

                                                                                

10      (c) "Department" means the department of labor and economic                 

                                                                                

11  growth.                                                                     

                                                                                

12      (d) "Eligible adult learning provider" means a district,                    

                                                                                

13  public school academy, intermediate district, community college,            

                                                                                

14  university, community-based organization, or other organization             

                                                                                

15  approved by the department that provides adult learning systems             

                                                                                

16  under a contract with the Michigan works! agency that is part of            

                                                                                

17  the pilot adult learner system.                                             

                                                                                

18      (e) "Employment trainability skills standard" means a                       

                                                                                

19  proficiency level approved by the department in English language,           

                                                                                

20  reading, writing, or mathematics, or any and all of these, as               

                                                                                

21  determined by results from assessments approved for use by the              

                                                                                

22  department.                                                                 

                                                                                

23      (f) "Michigan works! agency" means the agency designated by                 

                                                                                

24  the chief elected official and approved by the governor to                  

                                                                                

25  administer the portion of the Michigan works! system for that               

                                                                                

26  local workforce investment area.                                            

                                                                                

27      (g) "Participant" means an individual enrolled in an adult                  


                                                                                

1   learning program and receiving services from an eligible adult              

                                                                                

2   learning provider.                                                          

                                                                                

3       (h) "Pilot project" means a temporary project established to                

                                                                                

4   deliver a new adult learner system.                                         

                                                                                

5       Sec. 146.  Not later than January 1, 2005, the state budget                 

                                                                                

6   director, the office of financial and insurance services, and the           

                                                                                

7   senate and house fiscal agencies jointly shall do both of the               

                                                                                

8   following:                                                                  

                                                                                

9       (a) Conduct a study of the feasibility of creating and                      

                                                                                

10  requiring districts, intermediate districts, community colleges,            

                                                                                

11  and state universities to participate in a statewide purchasing             

                                                                                

12  pool for employee health benefits or of including public school,            

                                                                                

13  community college, and state university employees in state                  

                                                                                

14  employee group health plans, and of the possible cost savings               

                                                                                

15  from implementation of these options.                                       

                                                                                

16      (b) Submit a report to the legislature detailing the findings               

                                                                                

17  and recommendations from the study.                                         

                                                                                

18      Sec. 147.  (1) The allocation for  2003-2004  2004-2005 for                 

                                                                                

19  the public school employees' retirement system pursuant to the              

                                                                                

20  public school employees retirement act of 1979, 1980 PA 300,                

                                                                                

21  MCL 38.1301 to 38.1408, shall be made using the entry age normal            

                                                                                

22  cost actuarial method and risk assumptions adopted by the public            

                                                                                

23  school employees retirement board and the department of                     

                                                                                

24  management and budget.  The annual level percentage of payroll              

                                                                                

25  contribution rate is estimated  14.37%  14.87% for the                      

                                                                                

26  2003-2004  2004-2005 state fiscal year.   However, if all                  

                                                                                

27  eligible districts participating in the school bond loan                    


                                                                                

1   authority assist the state treasurer in the refinancing of school           

                                                                                

2   bond loan authority debt, the annual level percentage of payroll            

                                                                                

3   contribution rate for all districts is estimated to be 12.99% for           

                                                                                

4   the 2003-2004 fiscal year.  If an eligible district does not                

                                                                                

5   assist in the refinancing, that district's payroll contribution             

                                                                                

6   rate is estimated to be 14.37% for the 2003-2004 fiscal year.               

                                                                                

7   The portion of the contribution rate assigned to districts and              

                                                                                

8   intermediate districts for each fiscal year is all of the total             

                                                                                

9   percentage points.  This contribution rate reflects an                      

                                                                                

10  amortization period of  33  32 years for  2003-2004  2004-2005.             

                                                                                

11  The public school employees' retirement system board shall notify           

                                                                                

12  each district and intermediate district by February 28 of each              

                                                                                

13  fiscal year of the estimated contribution rate for the next                 

                                                                                

14  fiscal year.                                                                

                                                                                

15      (2) It is the intent of the legislature that the amortization               

                                                                                

16  period described in section 41(2) of the public school employees            

                                                                                

17  retirement act of 1979, 1980 PA 300, MCL 38.1341, be reduced to             

                                                                                

18  30 years by the end of the 2005-2006 state fiscal year by                   

                                                                                

19  reducing the amortization period by not more than 1 year each               

                                                                                

20  fiscal year.                                                                

                                                                                

21      Sec. 152.  Except for reports due on other dates specified                  

                                                                                

22  in this act, each district and intermediate district shall                  

                                                                                

23  furnish to the center or the department, as applicable, before              

                                                                                

24  the first Monday in November of each year those reports the                 

                                                                                

25  department considers necessary for the determination of the                 

                                                                                

26  allocation of funds under this act.  In order to receive funds              

                                                                                

27  under this act, each district and intermediate district shall               


                                                                                

1   also furnish to the center or the department, as applicable, the            

                                                                                

2   information the department considers necessary for the                      

                                                                                

3   administration of this act, including information necessary to              

                                                                                

4   determine compliance with article 16, and for the provision of              

                                                                                

5   reports of educational progress to the senate and house                     

                                                                                

6   committees responsible for education, the senate and house                  

                                                                                

7   appropriations subcommittees responsible for appropriations to              

                                                                                

8   school districts, the senate and house fiscal agencies, and the             

                                                                                

9   state budget director, as appropriate.  This section does not               

                                                                                

10  require a district or intermediate district to submit any                   

                                                                                

11  information to both the center and the department.                          

                                                                                

12      Sec. 158b.  Each district that receives federal impact aid                  

                                                                                

13  under section 3(c)(1) of title 1 of chapter 1124, 64 Stat. 1100,           

                                                                                

14  20 U.S.C. 238,  annually shall report to the  department  center,           

                                                                                

15  in the form and manner prescribed by the department, the amount             

                                                                                

16  of that aid the district received.                                          

                                                                                

17      Sec. 163.  (1) Except as provided in the revised school code                

                                                                                

18  or in section  108  107b, the board of a district or intermediate           

                                                                                

19  district shall not permit any of the following:                             

                                                                                

20      (a) A noncertificated teacher to teach in an elementary or                  

                                                                                

21  secondary school or in an adult basic education or high school              

                                                                                

22  completion program.                                                         

                                                                                

23      (b) A noncertificated counselor to provide counseling                       

                                                                                

24  services to pupils in an elementary or secondary school or in an            

                                                                                

25  adult basic education or high school completion program.                    

                                                                                

26      (2) Except as provided in the revised school code or in                     

                                                                                

27  section  108  107b, a district or intermediate district employing           


                                                                                

1   teachers or counselors not legally certificated shall have                  

                                                                                

2   deducted the sum equal to the amount paid the teachers or                   

                                                                                

3   counselors for the period of noncertificated or illegal                     

                                                                                

4   employment.  Each intermediate superintendent shall notify the              

                                                                                

5   department of the name of the noncertificated teacher or                    

                                                                                

6   counselor, and the district employing that individual and the               

                                                                                

7   amount of salary the noncertificated teacher or counselor was               

                                                                                

8   paid within a constituent district.                                         

                                                                                

9       (3) If a school official is notified by the department that                 

                                                                                

10  he or she is employing a nonapproved noncertificated teacher or             

                                                                                

11  counselor in violation of this section and knowingly continues to           

                                                                                

12  employ that teacher or counselor, the school official is guilty             

                                                                                

13  of a misdemeanor, punishable by a fine of $1,500.00 for each                

                                                                                

14  incidence.                                                                  

                                                                                

15      Sec. 166a.  (1) In order to avoid forfeiture of state aid                   

                                                                                

16  under subsection (2), the board of a district or intermediate               

                                                                                

17  district providing reproductive health or other sex education               

                                                                                

18  instruction under section 1169, 1506, or 1507 of the revised                

                                                                                

19  school code, MCL 380.1169, 380.1506, and 380.1507, or under any             

                                                                                

20  other provision of law, shall ensure that all of the following              

                                                                                

21  are met:                                                                    

                                                                                

22      (a) That the district or intermediate district does not                     

                                                                                

23  provide any of the instruction to a pupil who is less than 18               

                                                                                

24  years of age unless the district or intermediate district                   

                                                                                

25  notifies the pupil's parent or legal guardian in advance of the             

                                                                                

26  instruction and the content of the instruction, gives the pupil's           

                                                                                

27  parent or legal guardian a prior opportunity to review the                  


                                                                                

1   materials to be used in the instruction, allows the pupil's                 

                                                                                

2   parent or legal guardian to observe the instruction, and notifies           

                                                                                

3   the pupil's parent or legal guardian in advance of his or her               

                                                                                

4   rights to observe the instruction and to have the pupil excused             

                                                                                

5   from the instruction.                                                       

                                                                                

6       (b) That, upon the written request of a pupil's parent or                   

                                                                                

7   legal guardian or of a pupil if the pupil is at least age 18, the           

                                                                                

8   pupil shall be excused, without penalty or loss of academic                 

                                                                                

9   credit, from attending class sessions in which the instruction is           

                                                                                

10  provided.                                                                   

                                                                                

11      (c) That the sex education instruction includes                             

                                                                                

12  age-appropriate information clearly informing pupils at 1 or more           

                                                                                

13  age-appropriate grade levels that having sex or sexual contact              

                                                                                

14  with an individual under the age of 16 is a crime punishable by             

                                                                                

15  imprisonment, and that 1 of the other results of being convicted            

                                                                                

16  of this crime is to be listed on the sex offender registry on the           

                                                                                

17  internet for at least 25 years.                                             

                                                                                

18      (2) If a parent or legal guardian of a pupil enrolled in a                  

                                                                                

19  district or intermediate district believes that the district or             

                                                                                

20  intermediate district has violated this section or section 1169,            

                                                                                

21  1506, or 1507 of the revised school code, MCL 380.1169, 380.1506,           

                                                                                

22  and 380.1507, he or she may file a complaint with the                       

                                                                                

23  superintendent or chief administrator of the district or                    

                                                                                

24  intermediate district in which the pupil is enrolled.  Upon                 

                                                                                

25  receipt of the complaint, the superintendent or chief                       

                                                                                

26  administrator of the district or intermediate district shall                

                                                                                

27  investigate the complaint and, within 30 days after the date of             


                                                                                

1   the complaint, provide a written report of his or her findings to           

                                                                                

2   the parent or legal guardian who filed the complaint and to the             

                                                                                

3   superintendent of public instruction.  If the investigation                 

                                                                                

4   reveals that 1 or more violations have occurred, the written                

                                                                                

5   report shall contain a description of each violation and of                 

                                                                                

6   corrective action the district or intermediate district will take           

                                                                                

7   to correct the situation to ensure that there is no further                 

                                                                                

8   violation.  The district or intermediate district shall take the            

                                                                                

9   corrective action described in the written report within 30 days            

                                                                                

10  after the date of the written report.                                       

                                                                                

11      (3) If a parent who has filed a complaint with a district                   

                                                                                

12  under subsection (2) is not satisfied with the investigation or             

                                                                                

13  findings made by the superintendent or chief administrator of the           

                                                                                

14  district, the parent may appeal the findings to the intermediate            

                                                                                

15  district in which the district is located.  If there is an appeal           

                                                                                

16  to an intermediate district under this subsection, the                      

                                                                                

17  intermediate superintendent of the intermediate district shall              

                                                                                

18  investigate the complaint and, within 30 days after the date of             

                                                                                

19  the appeal, provide a written report of his or her findings to              

                                                                                

20  the parent or legal guardian who filed the appeal and to the                

                                                                                

21  superintendent of public instruction.  If the investigation by              

                                                                                

22  the intermediate superintendent reveals that 1 or more violations           

                                                                                

23  have occurred, the intermediate superintendent in consultation              

                                                                                

24  with the local district shall develop a plan for corrective                 

                                                                                

25  action for the district to take to correct the situation to                 

                                                                                

26  ensure that there is no further violation, and shall include this           

                                                                                

27  plan for corrective action with the written report provided to              


                                                                                

1   the parent or legal guardian and the superintendent of public               

                                                                                

2   instruction.  The district shall take the corrective action                 

                                                                                

3   described in the plan within 30 days after the date of the                  

                                                                                

4   written report.                                                             

                                                                                

5       (4) If a parent who has filed a complaint with an                           

                                                                                

6   intermediate district under subsection (2) or a parent who has              

                                                                                

7   filed an appeal with an intermediate district under subsection              

                                                                                

8   (3) is not satisfied with the investigation or findings made by             

                                                                                

9   the intermediate superintendent of the intermediate district, the           

                                                                                

10  parent may appeal the findings to the department.  If there is an           

                                                                                

11  appeal to the department under this subsection, the department              

                                                                                

12  shall investigate the complaint and, within 90 days after the               

                                                                                

13  date of the appeal, provide a written report of its findings to             

                                                                                

14  the parent or legal guardian who filed the appeal, to the                   

                                                                                

15  superintendent of public instruction, and to the district and               

                                                                                

16  intermediate district.  If the department finds 1 or more                   

                                                                                

17  violations as a result of its investigation, then all of the                

                                                                                

18  following apply:                                                            

                                                                                

19      (a) The department shall develop a plan for corrective action               

                                                                                

20  for the district or intermediate district to take to correct the            

                                                                                

21  situation to ensure that there is no further violation, and shall           

                                                                                

22  include this plan for corrective action with the written report             

                                                                                

23  provided to the parent or legal guardian, the superintendent of             

                                                                                

24  public instruction, and the district or intermediate district.              

                                                                                

25  The district or intermediate district shall take the corrective             

                                                                                

26  action described in the plan within 30 days after the date of the           

                                                                                

27  written report.                                                             


                                                                                

1       (b) In addition to withholding the percentage of state school               

                                                                                

2   aid forfeited by the district or intermediate district under                

                                                                                

3   subsection (5), the department may assess a fee to the district             

                                                                                

4   or intermediate district that committed the violation in an                 

                                                                                

5   amount not to exceed the actual cost to the department of                   

                                                                                

6   conducting the investigation and making the reports required                

                                                                                

7   under this subsection.                                                      

                                                                                

8       (5)  (2) A  If an investigation conducted by the department                 

                                                                                

9   under subsection (4) reveals that a district or intermediate                

                                                                                

10  district  that does not comply with  has committed 1 or more                

                                                                                

11  violations of this section or section 1169, 1506, or 1507 of the            

                                                                                

12  revised school code, MCL 380.1169, 380.1506, and 380.1507, the              

                                                                                

13  district or intermediate district shall forfeit  5%  an amount              

                                                                                

14  equal to 1% of its total state school aid allocation under this             

                                                                                

15  act.                                                                        

                                                                                

16      (6) The department, with the approval of the superintendent                 

                                                                                

17  of public instruction, shall establish a reasonable process for a           

                                                                                

18  complainant to appeal to the department under subsection (4).               

                                                                                

19  The process shall not place an undue burden on the complainant,             

                                                                                

20  the district or intermediate district, or the department.                   

                                                                                

21      (7) The department shall track the number of complaints and                 

                                                                                

22  appeals it receives under this section for the 2004-2005 school             

                                                                                

23  year and, not later than the end of that school year, shall                 

                                                                                

24  submit a report to the standing committees and appropriations               

                                                                                

25  subcommittees of the legislature having jurisdiction over                   

                                                                                

26  education legislation and state school aid that details the                 

                                                                                

27  number and nature of those complaints and appeals and the cost to           


                                                                                

1   the department of handling them.                                            

                                                                                

2       Enacting section 1.  In accordance with section 30 of                       

                                                                                

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

                                                                                

4   spending in this amendatory act from state sources for fiscal               

                                                                                

5   year 2004-2005 is estimated at $11,176,557,800.00 and state                 

                                                                                

6   appropriations to be paid to local units of government for fiscal           

                                                                                

7   year 2004-2005 are estimated at $11,116,249,600.00.                         

                                                                                

8       Enacting section 2.  Sections 11c, 31e, 32b, 68, 107a, and                  

                                                                                

9   108 of the state school aid act of 1979, 1979 PA 94, MCL                    

                                                                                

10  388.1611c, 388.1631e, 388.1632b, 388.1668, 388.1707a, and                   

                                                                                

11  388.1708, are repealed effective October 1, 2004.                           

                                                                                

12      Enacting section 3.  (1) Except as otherwise provided in                    

                                                                                

13  subsection (2), this amendatory act takes effect October 1,                 

                                                                                

14  2004.                                                                       

                                                                                

15      (2) Sections 22a, 94a, and 101 of the state school aid act of               

                                                                                

16  1979, MCL 388.1622a, 388.1694a, and 388.1701, as amended by this            

                                                                                

17  amendatory act, take effect upon enactment of this amendatory               

                                                                                

18  act.