SB-1069, As Passed Senate, March 31, 2004                                   

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

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

                                                                                

    81, 94a, 98, 98b, 99, 101, 104a, 107, 147, 152, 158b, 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, 388.1639a, 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, 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 and 152 as amended by 2000 PA 297, section 26 as               

                                                                                

    amended by 1997 PA 93, section 32f as amended by 2002 PA 521,               

                                                                                

    section 94a as amended by 2003 PA 180, and section 158b as added            

                                                                                

    by 1994 PA 283, and by adding section 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.                           

                                                                                

15      (5) "Department", except in  sections 67, 68,  section 107,                 


                                                                                

1   and 108,  means the department of education.                               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

7   university school.                                                          

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  residence shall be considered to be the district or intermediate            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

19  residence shall be considered to be the educating district or               

                                                                                

20  educating intermediate district.                                            

                                                                                

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

                                                                                

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

                                                                                

23  the chief administrator of a university school.                             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  classes above the eighth grade.                                             


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   extended year program.  The mandatory days of student instruction           

                                                                                

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

                                                                                

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

                                                                                

7   classes for the school year prescribed.  The department shall               

                                                                                

8   prescribe pupil, personnel, and other reporting requirements for            

                                                                                

9   the educational program.                                                    

                                                                                

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

                                                                                

11  October 1 and continues through September 30.                               

                                                                                

12      (4) "General educational development testing preparation                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  successfully complete the general educational development (GED)             

                                                                                

17  test.                                                                       

                                                                                

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

                                                                                

19  7 to 12, except in a district not maintaining grades above the              

                                                                                

20  eighth grade.                                                               

                                                                                

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

                                                                                

22  district or intermediate district for special education pupils              

                                                                                

23  from several districts in programs for the autistically impaired,           

                                                                                

24  trainable mentally impaired, severely mentally impaired, severely           

                                                                                

25  multiply impaired, hearing impaired, physically and otherwise               

                                                                                

26  health impaired, and visually impaired.  Programs for emotionally           

                                                                                

27  impaired pupils housed in buildings that do not serve regular               


                                                                                

1   education pupils also qualify.  Unless otherwise approved by the            

                                                                                

2   department, a center program either shall serve all constituent             

                                                                                

3   districts within an intermediate district or shall serve several            

                                                                                

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

                                                                                

5   operating district.  In addition, special education center                  

                                                                                

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

                                                                                

7   with the least restrictive environment provisions of section 612            

                                                                                

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

                                                                                

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

                                                                                

10  considered center program pupils for pupil accounting purposes              

                                                                                

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

                                                                                

12  program.                                                                    

                                                                                

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

                                                                                

14  annual completion and pupil dropout rate that is calculated by              

                                                                                

15  the center pursuant to nationally recognized standards.                     

                                                                                

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

                                                                                

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

                                                                                

18  the district for the immediately preceding school year, adjusted            

                                                                                

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

                                                                                

20  or transferred to alternative programs, who leave high school               

                                                                                

21  with a diploma or other credential of equal status.                         

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

26  enrolled and in regular daily attendance on the pupil membership            

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   this subsection are as determined by the department and                     

                                                                                

4   calculated by adding the number of pupils registered for                    

                                                                                

5   attendance plus pupils received by transfer and minus pupils lost           

                                                                                

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

                                                                                

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

                                                                                

8   foundation allowance for a pupil in membership is determined                

                                                                                

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

                                                                                

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

                                                                                

11  membership of a district, public school academy, university                 

                                                                                

12  school, or intermediate district:                                           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

17  1.0 full-time equated membership.                                           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  district of residence does not give the educating district its              

                                                                                

22  approval to count the pupil in membership in the educating                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  be counted in membership in any district.                                   


                                                                                

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

                                                                                

2   district shall be counted in membership in the intermediate                 

                                                                                

3   district.                                                                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

8   district or intermediate district approved by the department to             

                                                                                

9   operate the program.                                                        

                                                                                

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

                                                                                

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

                                                                                

12  district of residence.                                                      

                                                                                

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

                                                                                

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

                                                                                

15  district or in an area vocational-technical education program               

                                                                                

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

                                                                                

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

                                                                                

18  residence.                                                                  

                                                                                

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

                                                                                

20  in membership in the university school.                                     

                                                                                

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

                                                                                

22  counted in membership in the public school academy.                         

                                                                                

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

                                                                                

24  academy beginning its operation after December 31, 1994,                    

                                                                                

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

                                                                                

26  operation shall be determined as follows:                                   

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

5   current school year, as determined by the department and                    

                                                                                

6   calculated by adding the number of pupils registered for                    

                                                                                

7   attendance on the pupil membership count day plus pupils received           

                                                                                

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

                                                                                

9   by the superintendent, and as corrected by a 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      (ii) If operations begin after the pupil membership count day                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

17  enrolled and in regular daily attendance on the supplemental                

                                                                                

18  count day for the current school year.                                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

24  immediately preceding supplemental count day any pupils who are             

                                                                                

25  counted in the public school academy on that first pupil                    

                                                                                

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

                                                                                

27  immediately preceding supplemental count day.                               


                                                                                

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

                                                                                

2   or intermediate district operating an extended school year                  

                                                                                

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

                                                                                

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

                                                                                

5   count day, shall be counted.                                                

                                                                                

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

                                                                                

7   5 years of age on December 1 and less than 20 years of age on               

                                                                                

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

                                                                                

9   who is enrolled and receiving instruction in a special education            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

13  membership.                                                                 

                                                                                

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

                                                                                

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

                                                                                

16  obtained a general education development (G.E.D.)  certificate              

                                                                                

17  shall not be counted in membership.  An individual participating            

                                                                                

18  in a job training program funded under former section 107a or a             

                                                                                

19  jobs program funded under former section 107b, administered by              

                                                                                

20  the Michigan strategic fund or the department of  career                    

                                                                                

21  development  labor and economic growth, or participating in any             

                                                                                

22  successor of either of those 2 programs, shall not be counted in            

                                                                                

23  membership.                                                                 

                                                                                

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

                                                                                

25  academy is also educated by a district or intermediate district             

                                                                                

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

                                                                                

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


                                                                                

1   written agreement signed by all parties designates the party or             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

6   pupils receiving instruction in both a public school academy and            

                                                                                

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

                                                                                

8   cooperative education program, the following apply:                         

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  public school academy provides divided by the number of hours               

                                                                                

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

                                                                                

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

                                                                                

17  shall be allocated to the district or intermediate district                 

                                                                                

18  providing the remainder of the hours of instruction.                        

                                                                                

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

                                                                                

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

                                                                                

21  the district or intermediate district providing the remainder of            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

25  the district or intermediate district provides divided by the               

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   academy.                                                                    

                                                                                

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

                                                                                

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

                                                                                

5   alternative education program shall not be counted in membership            

                                                                                

6   if there are also adult education participants being educated in            

                                                                                

7   the same program or classroom.                                              

                                                                                

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

                                                                                

9   full-time and part-time memberships.                                        

                                                                                

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

                                                                                

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

                                                                                

12  determining full-time equated memberships for pupils who are                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

17  provided by the district to the pupil.                                      

                                                                                

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

                                                                                

19  shall be determined by dividing the number of class hours                   

                                                                                

20  scheduled and provided per year per kindergarten pupil by a                 

                                                                                

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

                                                                                

22  equated memberships for pupils in grades 1 to 12.                           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   regular daily attendance on the pupil membership count day and              

                                                                                

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

                                                                                

4   determined by the department.  Membership shall be calculated by            

                                                                                

5   adding the number of pupils registered for attendance in that               

                                                                                

6   grade level on the pupil membership count day plus pupils                   

                                                                                

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

                                                                                

8   promulgated by the superintendent, and as corrected by subsequent           

                                                                                

9   department audit, plus the final audited count from the                     

                                                                                

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

                                                                                

11  that sum by 2.                                                              

                                                                                

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

                                                                                

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

                                                                                

14  with the written approval of all parties to the cooperative                 

                                                                                

15  agreement.                                                                  

                                                                                

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

                                                                                

17  determines through the district's alternative or disciplinary               

                                                                                

18  education program that the best instructional placement for a               

                                                                                

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

                                                                                

20  writing by the district superintendent and district alternative             

                                                                                

21  or disciplinary education supervisor, and if the district                   

                                                                                

22  provides appropriate instruction as described in this subdivision           

                                                                                

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

                                                                                

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

                                                                                

25  on the number of hours of instruction the district actually                 

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   appropriate instruction if all of the following are met:                    

                                                                                

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

                                                                                

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

                                                                                

5   supervision of a certificated teacher.                                      

                                                                                

6       (ii) The district provides instructional materials,                          

                                                                                

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

                                                                                

8   those otherwise provided in the district's alternative education            

                                                                                

9   program.                                                                    

                                                                                

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

                                                                                

11  alternative education program.                                              

                                                                                

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

                                                                                

13  pupil's transcript.                                                         

                                                                                

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

                                                                                

15  education program described in section 25 shall be counted in               

                                                                                

16  membership in the district or public school academy that expelled           

                                                                                

17  the pupil.                                                                  

                                                                                

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

                                                                                

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

                                                                                

20  contract with its authorizing body is revoked or the public                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

25  count.                                                                      

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   on the first pupil membership count day or supplemental count               

                                                                                

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

                                                                                

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

                                                                                

7   recent pupil membership count day or supplemental count day that            

                                                                                

8   occurred before suspending operations, as determined by the                 

                                                                                

9   superintendent.                                                             

                                                                                

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

                                                                                

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

                                                                                

12  1,550 pupils and the district has 4.5 or fewer pupils per square            

                                                                                

13  mile, as determined by the department, the district's membership            

                                                                                

14  shall be considered to be the membership figure calculated under            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  the affected districts request the department to use the                    

                                                                                

19  determination allowed under this sentence, the department shall             

                                                                                

20  include the square mileage of both districts in determining the             

                                                                                

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

                                                                                

22  the purposes of this subdivision.  The membership figure                    

                                                                                

23  calculated under this subdivision is the greater of the                     

                                                                                

24  following:                                                                  

                                                                                

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

                                                                                

26  3-fiscal-year period ending with that fiscal year, calculated by            

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   otherwise calculated under this subsection.                                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

13  count day of the preceding school year.                                     

                                                                                

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

                                                                                

15  urban high school academy, or strict discipline academy operating           

                                                                                

16  under the revised school code.                                              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  of the following:                                                           

                                                                                

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

                                                                                

23  accordance with section 166b.                                               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  school.                                                                     


                                                                                

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

                                                                                

2   district of residence under an intermediate district schools of             

                                                                                

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

                                                                                

4   section 91 if the intermediate district and its constituent                 

                                                                                

5   districts have been exempted from section 105.                              

                                                                                

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

                                                                                

7   district of residence  but within the same intermediate district            

                                                                                

8   if the educating district enrolls nonresident pupils  if the                

                                                                                

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

                                                                                

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

                                                                                

11  district of residence if the pupil has been continuously enrolled           

                                                                                

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

                                                                                

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

                                                                                

14  in which the educating district enrolled nonresident pupils in              

                                                                                

15  accordance with section 105 or 105c.                                        

                                                                                

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

                                                                                

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

                                                                                

18  complaint to law enforcement officials and to school officials of           

                                                                                

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

                                                                                

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

                                                                                

21  the official complaint either indicates that the assault occurred           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

26  crime to law enforcement officials for the purposes of this                 

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

6   school premises.                                                            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  educating district enrolls those nonresident pupils in accordance           

                                                                                

15  with section 105c.                                                          

                                                                                

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

                                                                                

17  the pupil membership count day and before the supplemental count            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  same school year.                                                           

                                                                                

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

                                                                                

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

                                                                                

24  residence who meets 1 or more of the following:                             

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   380.1311a.                                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

8   school.                                                                     

                                                                                

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

                                                                                

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

                                                                                

11  primary instructional site for those pupils is located within the           

                                                                                

12  boundaries of the first class district, the educating district              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  first class under the revised school code.                                  

                                                                                

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

                                                                                

18  intermediate district means:                                                

                                                                                

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

                                                                                

20  Wednesday in September each school year.                                    

                                                                                

21      (b) For a district or intermediate district maintaining                     

                                                                                

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

                                                                                

23                                                                               (i) Fourth Wednesday in July.                                                       

                                                                                

24      (ii) Fourth Wednesday in September.                                          

                                                                                

25      (iii) Second Wednesday in February.                                          

                                                                                

26      (iv) Fourth Wednesday in April.                                              

                                                                                

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


                                                                                

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

                                                                                

2   attendance and receiving instruction in all classes for which               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

8   days immediately following the pupil membership count day or                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  enrolled within 30 calendar days after the pupil membership count           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  legally qualified substitute teacher are together and instruction           

                                                                                

22  is taking place.                                                            

                                                                                

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

                                                                                

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

                                                                                

25  24.328.                                                                     

                                                                                

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

                                                                                

27  to 380.1852.                                                                


                                                                                

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

                                                                                

2   July 1 and continues through June 30.                                       

                                                                                

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

                                                                                

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

                                                                                

5   district or intermediate district superintendent, means the                 

                                                                                

6   superintendent of public instruction described in section 3 of              

                                                                                

7   article VIII of the state constitution of 1963.                             

                                                                                

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

                                                                                

9   supplemental pupil count is conducted under section 6a.                     

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

17  has been assigned to a school district.                                     

                                                                                

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

                                                                                

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

                                                                                

20  of 1963.                                                                    

                                                                                

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

                                                                                

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

                                                                                

23  1893 PA 206, MCL 211.27a.                                                   

                                                                                

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

                                                                                

25  the governing board of a district and that contains a                       

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   the basis of classroom instruction.                                         

                                                                                

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

                                                                                

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

                                                                                

5   intermediate district, or other entity under all of the                     

                                                                                

6   provisions of this act.                                                     

                                                                                

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

                                                                                

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

                                                                                

9   requirements of section 23.                                                 

                                                                                

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

                                                                                

11  2004  2005, there is appropriated for the public schools of this           

                                                                                

12  state and certain other state purposes relating to education the            

                                                                                

13  sum of  $10,962,387,100.00  $11,033,722,200.00 from the state               

                                                                                

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

                                                                                

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

                                                                                

16  $138,600,000.00 from the general fund.   For the fiscal year                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  108, MCL 388.959c, there is appropriated from the general fund to           

                                                                                

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

                                                                                

22  treasurer to equal the difference between the outstanding amount            

                                                                                

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

                                                                                

24  388.981 to 388.985, and the outstanding amount of loans under               

                                                                                

25  1961 PA 108, MCL 388.951 to 388.963, as reduced in accordance               

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

6   and representing the difference between the outstanding amount of           

                                                                                

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

                                                                                

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

                                                                                

9   1961 PA 108, MCL 388.951 to 388.963, at the time of repayment.              

                                                                                

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

                                                                                

11  fund from loan repayments received as described in this                     

                                                                                

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

                                                                                

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

                                                                                

14  appropriated for  each of those fiscal years  the fiscal year               

                                                                                

15  ending September 30, 2005.                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

19  this act before the expenditure of money appropriated under this            

                                                                                

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

                                                                                

21  appropriated under this section from the state school aid fund              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

26  deposited into the school aid stabilization fund created in                 

                                                                                

27  section 11a.                                                                


                                                                                

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

                                                                                

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

                                                                                

3   fund for a fiscal year exceeds the amount available for                     

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   22b shall be made so that the qualifying districts receive the              

                                                                                

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

                                                                                

11  the district in which the district beginning operations after               

                                                                                

12  1994-95 is located or $5,500.00.  The amount of the payment to be           

                                                                                

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

                                                                                

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

                                                                                

15  under section 22b being subject to the proration otherwise                  

                                                                                

16  provided under this subsection and subsection (4).   For any  If            

                                                                                

17  proration is necessary after 2002-2003, state payments under each           

                                                                                

18  of the other sections of this act from all state funding sources            

                                                                                

19  shall be prorated in the manner prescribed in subsection (4) as             

                                                                                

20  necessary to reflect the amount available for expenditure from              

                                                                                

21  the state school aid fund for the affected fiscal year.  However,           

                                                                                

22  if the department of treasury determines that proration will be             

                                                                                

23  required under this subsection, the department of treasury shall            

                                                                                

24  notify the state budget director, and the state budget director             

                                                                                

25  shall notify the legislature at least 30 calendar days or 6                 

                                                                                

26  legislative session days, whichever is more, before the                     

                                                                                

27  department reduces any payments under this act because of the               


                                                                                

1   proration.  During the 30 calendar day or 6 legislative session             

                                                                                

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

                                                                                

3   the department shall not reduce any payments under this act                 

                                                                                

4   because of proration under this subsection.  The legislature may            

                                                                                

5   prevent proration from occurring by, within the 30 calendar day             

                                                                                

6   or 6 legislative session day period after that notification by              

                                                                                

7   the state budget director, enacting legislation appropriating               

                                                                                

8   additional funds from the general fund, countercyclical budget              

                                                                                

9   and economic stabilization fund, state school aid fund balance,             

                                                                                

10  or another source to fund the amount of the projected shortfall.            

                                                                                

11      (4)  For any  If proration is necessary,  after 2002-2003,                  

                                                                                

12  the department shall calculate the proration in district and                

                                                                                

13  intermediate district payments that is required under subsection            

                                                                                

14  (3) as follows:                                                             

                                                                                

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

                                                                                

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

                                                                                

17  year for each of the following:                                             

                                                                                

18                                                                               (i) Districts.                                                                      

                                                                                

19      (ii) Intermediate districts.                                                 

                                                                                

20      (iii) Entities other than districts or intermediate                          

                                                                                

21  districts.                                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  recover this percentage of the proration amount and reducing each           


                                                                                

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

                                                                                

2   payments under sections 11f, 11g, 22a, 26a, 31d, 51a(2), 51a(12),           

                                                                                

3   51c, 53a, and 56, by that amount.                                           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

7   intermediate districts by reducing payments to intermediate                 

                                                                                

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

                                                                                

9   to each intermediate district, other than payments under sections           

                                                                                

10  11f, 11g,  22a, 31d,  26a, 51a(2), 51a(12),  51c,  53a, and 56,             

                                                                                

11  on an equal percentage basis.                                               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

15  other than districts and intermediate districts by reducing                 

                                                                                

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

                                                                                

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

                                                                                

18  payments under section 11j, on an equal percentage basis.                   

                                                                                

19      (5) Except for the allocation under section 26a, any general                

                                                                                

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

                                                                                

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

                                                                                

22  fund.                                                                       

                                                                                

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

                                                                                

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

                                                                                

25  of  $67,600,000.00  $5,000,000.00 for deposit into the school aid           

                                                                                

26  stabilization fund created in section 11a.                                  

                                                                                

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


                                                                                

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

                                                                                

2   to exceed $32,000,000.00 for the fiscal year ending September 30,           

                                                                                

3   2004  2005 and for each succeeding fiscal year through the                 

                                                                                

4   fiscal year ending September 30, 2008.  Payments under this                 

                                                                                

5   section will cease after September 30, 2008.  These allocations             

                                                                                

6   are for paying the amounts described in subsection (4) to                   

                                                                                

7   districts and intermediate districts, other than those receiving            

                                                                                

8   a lump sum payment under subsection (2), that were not plaintiffs           

                                                                                

9   in the consolidated cases known as Durant v State of Michigan,              

                                                                                

10  Michigan supreme court docket no. 104458-104492 and that, on or             

                                                                                

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

                                                                                

12  resolution waiving any right or interest the district or                    

                                                                                

13  intermediate district has or may have in any claim or litigation            

                                                                                

14  based on or arising out of any claim or potential claim through             

                                                                                

15  September 30, 1997 that is or was similar to the claims asserted            

                                                                                

16  by the plaintiffs in the consolidated cases known as Durant v               

                                                                                

17  State of Michigan.  The waiver resolution shall be in form and              

                                                                                

18  substance as required under subsection (7).  The state treasurer            

                                                                                

19  is authorized to accept such a waiver resolution on behalf of               

                                                                                

20  this state.  The amounts described in this subsection represent             

                                                                                

21  offers of settlement and compromise of any claim or claims that             

                                                                                

22  were or could have been asserted by these districts and                     

                                                                                

23  intermediate districts, as described in this subsection.                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

1   amounts described in this subsection to districts and                       

                                                                                

2   intermediate districts that were not plaintiffs in the                      

                                                                                

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

                                                                                

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

                                                                                

5   resolution waiving any right or interest the district or                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   claims asserted by the plaintiffs in the consolidated cases known           

                                                                                

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

                                                                                

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

                                                                                

12  $75,000.00.  For a district or intermediate district qualifying             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  following that date.  The amounts paid under this subsection                

                                                                                

17  represent offers of settlement and compromise of any claim or               

                                                                                

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

                                                                                

19  and intermediate districts, as described in this subsection.                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  in any litigation or future litigation with a district or                   


                                                                                

1   intermediate district.                                                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

5   intermediate district that qualifies for a payment under                    

                                                                                

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

                                                                                

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

                                                                                

8   are offers of settlement and compromise to each of these                    

                                                                                

9   districts or intermediate districts to resolve, in their                    

                                                                                

10  entirety, any claim or claims that these districts or                       

                                                                                

11  intermediate districts may have asserted for violations of                  

                                                                                

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

                                                                                

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

                                                                                

14  the claims asserted by the plaintiffs in the consolidated cases             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  constitute an admission of liability to the districts or                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

22  litigation with a district or intermediate district.                        

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  this section shall be used only for textbooks, electronic                   


                                                                                

1   instructional material, software, technology, infrastructure or             

                                                                                

2   infrastructure improvements, school buses, school security,                 

                                                                                

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

                                                                                

4   bonds issued by the district or intermediate district before the            

                                                                                

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

                                                                                

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

                                                                                

7   nonrecurring instructional expenditures including, but not                  

                                                                                

8   limited to, nonrecurring instructional expenditures for                     

                                                                                

9   vocational education, or for debt service for acquisition of                

                                                                                

10  technology for academic support services.  Funds received by an             

                                                                                

11  intermediate district under this section may be used for projects           

                                                                                

12  conducted for the benefit of its constituent districts at the               

                                                                                

13  discretion of the intermediate board.  To the extent payments               

                                                                                

14  under this section are used by a district or intermediate                   

                                                                                

15  district to pay debt service on debt payable from millage                   

                                                                                

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

                                                                                

17  intermediate district may make a corresponding reduction in the             

                                                                                

18  number of mills levied for that debt service.                               

                                                                                

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

                                                                                

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

                                                                                

21  read as follows:                                                            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   settle and compromise these claims for the consideration                    

                                                                                

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

                                                                                

6   1979, 1979 PA 94, MCL 388.1611f and 388.1611g, and in the amount            

                                                                                

7   specified for the district (or intermediate district) in                    

                                                                                

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

                                                                                

9   MCL 388.1611h.                                                              

                                                                                

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

                                                                                

11  intermediate district) is authorized to adopt this resolution.              

                                                                                

12      Now, therefore, be it resolved as follows:                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  relating to the amount of funding the district or intermediate              

                                                                                

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

                                                                                

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

                                                                                

19  388.1772, or any other source of state funding, by reason of the            

                                                                                

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

                                                                                

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

                                                                                

22  the claims asserted by the plaintiffs in the consolidated cases             

                                                                                

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

                                                                                

24  docket no. 104458-104492.                                                   

                                                                                

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

                                                                                

26  intermediate district) directs its secretary to submit a                    

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   resolution.                                                                 

                                                                                

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

                                                                                

5   intermediate district) expressly agrees and understands that, if            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   otherwise have been available had the claims or potential claims            

                                                                                

10  been actually litigated in any forum.                                       

                                                                                

11                                                                               4.  This resolution is contingent on continued payments by                          

                                                                                

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

                                                                                

13  11g of the state school aid act of 1979, 1979 PA 94,                        

                                                                                

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

                                                                                

15  an irrevocable waiver of any claim to amounts actually received             

                                                                                

16  by the school district or intermediate school district under                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  $141,000.00  each fiscal year for the fiscal year ending                    

                                                                                

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

                                                                                

22  2004, and  for the fiscal year ending September 30, 2005.  There            

                                                                                

23  is allocated an amount not to exceed  $34,200,000.00                        

                                                                                

24  $35,000,000.00 for each succeeding fiscal year through the fiscal           

                                                                                

25  year ending September 30, 2013.  Payments under this section will           

                                                                                

26  cease after September 30, 2013.  These allocations are for paying           

                                                                                

27  the amounts described in subsection (3) to districts and                    


                                                                                

1   intermediate districts, other than those receiving a lump sum               

                                                                                

2   payment under section 11f(2), that were not plaintiffs in the               

                                                                                

3   consolidated cases known as Durant v State of Michigan, Michigan            

                                                                                

4   supreme court docket no. 104458-104492 and that, on or before               

                                                                                

5   March 2, 1998, submitted to the state treasurer a waiver                    

                                                                                

6   resolution described in section 11f.  The amounts paid under this           

                                                                                

7   section represent offers of settlement and compromise of any                

                                                                                

8   claim or claims that were or could have been asserted by these              

                                                                                

9   districts and intermediate districts, as described in this                  

                                                                                

10  section.                                                                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  in any litigation or future litigation with a district or                   

                                                                                

19  intermediate district regarding these claims or potential                   

                                                                                

20  claims.                                                                     

                                                                                

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

                                                                                

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

                                                                                

23  following:                                                                  

                                                                                

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

                                                                                

25  district or intermediate district.                                          

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   annual payments made to the district or intermediate district               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

8   result in the total payments made to all districts and                      

                                                                                

9   intermediate districts in each fiscal year under this section               

                                                                                

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

                                                                                

11  each fiscal year.                                                           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

15  or intermediate district borrows money and issues bonds under               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  district or intermediate district shall use funds received under            

                                                                                

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

                                                                                

22  order of priority:                                                          

                                                                                

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

                                                                                

24  by the district or intermediate district before the effective               

                                                                                

25  date of this section.                                                       

                                                                                

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

                                                                                

27  obligations.                                                                


                                                                                

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

                                                                                

2   district or intermediate district under the revised school code.            

                                                                                

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

                                                                                

4   district or intermediate district to pay debt service on debt               

                                                                                

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

                                                                                

6   law, the district or intermediate district may make a                       

                                                                                

7   corresponding reduction in the number of mills levied for debt              

                                                                                

8   service.                                                                    

                                                                                

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

                                                                                

10  payments under this section as security for bonds issued under              

                                                                                

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

                                                                                

12  under this section.                                                         

                                                                                

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

                                                                                

14  allocated an amount not to exceed  $28,300,000.00  $41,100,000.00           

                                                                                

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

                                                                                

16  redemption fund in the department of treasury on behalf of                  

                                                                                

17  districts and intermediate districts.                                       

                                                                                

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

                                                                                

19  apportionments and limitations of the apportionments made under             

                                                                                

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

                                                                                

21  and other professionals approved by the superintendent employed             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  educational personnel pursuant to rules promulgated by the                  


                                                                                

1   superintendent and shall report to the center as required by                

                                                                                

2   state and federal law.                                                      

                                                                                

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

                                                                                

4   to receive its proper apportionment, the department, upon                   

                                                                                

5   satisfactory proof that the district or intermediate district was           

                                                                                

6   entitled justly, shall apportion the deficiency in the  remaining           

                                                                                

7   apportionments  next apportionment.  Subject to subsections (2)             

                                                                                

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

                                                                                

9   than its proper apportionment, the department, upon satisfactory            

                                                                                

10  proof, shall deduct the excess in the  remaining apportionments             

                                                                                

11  next apportionment.  Notwithstanding any other provision in this            

                                                                                

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

                                                                                

13  overpayments in payments for special education or special                   

                                                                                

14  education transportation, may be recovered from any payment made            

                                                                                

15  under this act other than a special education or special                    

                                                                                

16  education transportation payment.  State aid overpayments made in           

                                                                                

17  special education or special education transportation payments              

                                                                                

18  may be recovered from subsequent special education or special               

                                                                                

19  education transportation payments.                                          

                                                                                

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

                                                                                

21  department affects the current fiscal year membership, affected             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

25  obtained by the department from the district, an intermediate               

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   the district presenting evidence satisfactory to the department             

                                                                                

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

                                                                                

5   years for the adjustment if the district would otherwise                    

                                                                                

6   experience a significant hardship.                                          

                                                                                

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

                                                                                

8   department determines during a fiscal year that the amount paid             

                                                                                

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

                                                                                

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

                                                                                

11  the department may make the appropriate deduction or payment in             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

15  fiscal year in which the improper amount was paid.                          

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  or  intermediate district, or other entity, unless otherwise               

                                                                                

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

                                                                                

22  before the end of the school fiscal year immediately following              

                                                                                

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

                                                                                

24  recipient does not expend the funds received under this act                 

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

1   which the funds are received indicating whether it expects to               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

6   which the funds are received.                                               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

12  Stat. 1425,  as determined by the department.                               

                                                                                

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

                                                                                

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

                                                                                

15  department, information necessary for the development of an                 

                                                                                

16  annual progress report on the required implementation of sections           

                                                                                

17  1204a, 1277, 1278, and 1280 of the revised school code,                     

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  applicable reporting requirements specified in state and federal            

                                                                                

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

                                                                                

23  prescribed by the center, shall be aggregated and disaggregated             

                                                                                

24  as required by state and federal law.                                       

                                                                                

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

                                                                                

26  7 weeks after the pupil membership count day, in a manner                   

                                                                                

27  prescribed by the center, the information necessary for the                 


                                                                                

1   preparation of the district and high school graduation report.              

                                                                                

2   The center shall calculate an annual graduation and pupil dropout           

                                                                                

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

                                                                                

4   compliance with nationally recognized standards for these                   

                                                                                

5   calculations.  The center shall report all graduation and dropout           

                                                                                

6   rates to the senate and house education committees and                      

                                                                                

7   appropriations committees, the state budget director, and the               

                                                                                

8   department not later than June 1 of each year.                              

                                                                                

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

                                                                                

10  prescribed by the center, information related to educational                

                                                                                

11  personnel as necessary for reporting required by state and                  

                                                                                

12  federal law.                                                                

                                                                                

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

                                                                                

14  prescribed by the center, information related to safety practices           

                                                                                

15  and criminal incidents as necessary for reporting required by               

                                                                                

16  state and federal law.                                                      

                                                                                

17      (7)  (6)  If a district or intermediate district fails to                   

                                                                                

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

                                                                                

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

                                                                                

20  which the district or intermediate district qualifies under this            

                                                                                

21  act until the district or intermediate district complies with all           

                                                                                

22  of those subsections.  If the district or intermediate district             

                                                                                

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

                                                                                

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

                                                                                

25  escrow account until the district or intermediate district                  

                                                                                

26  complies with all of those subsections.                                     

                                                                                

27      (8)  (7)  If a school in a district is not accredited under                 


                                                                                

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

                                                                                

2   making satisfactory progress toward meeting the standards for               

                                                                                

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

                                                                                

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

                                                                                

5   attributable to pupils attending that school.  The department               

                                                                                

6   shall place the amount withheld from a district under this                  

                                                                                

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

                                                                                

8   to the district until the district submits to the department a              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

12  progress toward meeting the standards for that accreditation.               

                                                                                

13      (9)  (8)  Before publishing a list of schools or districts                  

                                                                                

14  determined to have failed to make adequate yearly progress as               

                                                                                

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

                                                                                

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

                                                                                

17  or district to appeal that determination.  The department shall             

                                                                                

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

                                                                                

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

                                                                                

20  have been considered and decided.                                           

                                                                                

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

                                                                                

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

                                                                                

23  pupil.                                                                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   district's foundation allowance as calculated before any                    

                                                                                

4   proration:                                                                  

                                                                                

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

                                                                                

6   district that in the immediately preceding state fiscal year had            

                                                                                

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

                                                                                

8   of the basic foundation allowance for the immediately preceding             

                                                                                

9   state fiscal year, the district shall receive a foundation                  

                                                                                

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

                                                                                

11  foundation allowance for the immediately preceding state fiscal             

                                                                                

12  year plus the dollar amount of the adjustment from the                      

                                                                                

13  immediately preceding state fiscal year to the current state                

                                                                                

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

                                                                                

15  2002-2003, the foundation allowance for a district under this               

                                                                                

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

                                                                                

17  foundation allowance for the immediately preceding state fiscal             

                                                                                

18  year plus $200.00.                                                          

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

22  district's foundation allowance for the immediately preceding               

                                                                                

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

                                                                                

24  foundation allowance for the current state fiscal year, as                  

                                                                                

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

                                                                                

26  product of the district's foundation allowance for the                      

                                                                                

27  immediately preceding state fiscal year times the percentage                


                                                                                

1   increase in the United States consumer price index in the                   

                                                                                

2   calendar year ending in the immediately preceding fiscal year as            

                                                                                

3   reported by the May revenue estimating conference conducted under           

                                                                                

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

                                                                                

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

                                                                                

6   state fiscal year had a foundation allowance greater than                   

                                                                                

7   $6,500.00, the district's foundation allowance is an amount equal           

                                                                                

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

                                                                                

9   immediately preceding state fiscal year plus the lesser of                  

                                                                                

10  $200.00 or the product of the district's foundation allowance for           

                                                                                

11  the immediately preceding state fiscal year times the percentage            

                                                                                

12  increase in the United States consumer price index in the                   

                                                                                

13  calendar year ending in the immediately preceding fiscal year as            

                                                                                

14  reported by the May revenue estimating conference conducted under           

                                                                                

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

                                                                                

16  MCL 18.1367b.                                                               

                                                                                

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

                                                                                

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

                                                                                

19  shall be rounded up to the nearest whole dollar.                            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

24  otherwise calculated under this section plus the per pupil amount           

                                                                                

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

                                                                                

26  section 22c.                                                                

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

5   district that is not a principal residence or qualified                     

                                                                                

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

                                                                                

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

                                                                                

8   1993-94 and the quotient of the ad valorem property tax revenue             

                                                                                

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

                                                                                

10  125.1681, the tax increment finance authority act, 1980 PA 450,             

                                                                                

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

                                                                                

12  1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield                    

                                                                                

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

                                                                                

14  125.2672, divided by the district's membership excluding special            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  difference between the product of the taxable value per                     

                                                                                

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

                                                                                

22  principal residence or qualified agricultural property times the            

                                                                                

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

                                                                                

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

                                                                                

25  ad valorem property tax revenue of the district captured under              

                                                                                

26  1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance            

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

7   foundation allowance shall be calculated as if that reduction did           

                                                                                

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

                                                                                

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

                                                                                

10  amount of the difference between the basic foundation allowance             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  calculated under this section shall not include the adjustment              

                                                                                

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

                                                                                

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

                                                                                

21  of residence, the allocation calculated under this section shall            

                                                                                

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

                                                                                

23  district of residence or the foundation allowance of the                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  calculated under this section shall be based on the foundation              


                                                                                

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

                                                                                

2   foundation allowance is greater than the foundation allowance of            

                                                                                

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

                                                                                

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

                                                                                

5   allocation under section 20j(2).                                            

                                                                                

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

                                                                                

7   as otherwise provided in this subsection, for pupils in                     

                                                                                

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

                                                                                

9   school academy or a university school, the allocation calculated            

                                                                                

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

                                                                                

11  special education pupils in the public school academy or                    

                                                                                

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

                                                                                

13  revenue per membership pupil other than special education pupils            

                                                                                

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

                                                                                

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

                                                                                

16  foundation allowance, or the sum of the basic foundation                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  pupil calculated under this subsection shall be adjusted by                 

                                                                                

22  multiplying that amount per membership pupil by the number of               

                                                                                

23  hours of pupil instruction provided by the public school academy            

                                                                                

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

                                                                                

25  divided by the minimum number of hours of pupil instruction                 

                                                                                

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

                                                                                

27  shall not exceed the amount per membership pupil otherwise                  


                                                                                

1   calculated under this subsection.                                           

                                                                                

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

                                                                                

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

                                                                                

4   the district, then the amount per membership pupil calculated               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   qualified agricultural property times the lesser of 18 mills or             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

13  MCL 125.1651 to 125.1681, the tax increment finance authority               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

26  local school operating revenue per membership pupil for each                

                                                                                

27  resident pupil in membership other than special education pupils            


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   principal residence and qualified agricultural property under               

                                                                                

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

                                                                                

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

                                                                                

7   mills, the district instead shall receive a separate supplemental           

                                                                                

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

                                                                                

9   amount the district would have received had it levied those                 

                                                                                

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

                                                                                

11  shall not receive a separate supplemental amount calculated under           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  residence or qualified agricultural property.                               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  which a principal residence and qualified agricultural property             

                                                                                

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

                                                                                

23  residence and qualified agricultural property as provided in                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

1   succeeding fiscal year a separate supplemental amount in an                 

                                                                                

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

                                                                                

3   membership pupil had it levied school operating taxes on a                  

                                                                                

4   principal residence and qualified agricultural property at the              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

13  principal residence or qualified agricultural property, the                 

                                                                                

14  amount calculated under this subsection will be reduced by the              

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  allowance under this section beginning after the effective date             

                                                                                

21  of the consolidation or annexation shall be the average of the              

                                                                                

22  foundation allowances of each of the original or affected                   

                                                                                

23  districts, calculated as provided in this section, weighted as to           

                                                                                

24  the percentage of pupils in total membership in the resulting               

                                                                                

25  district who reside in the geographic area of each of the                   

                                                                                

26  original or affected districts.                                             

                                                                                

27      (11) Each fraction used in making calculations under this                   


                                                                                

1   section shall be rounded to the fourth decimal place and the                

                                                                                

2   dollar amount of an increase in the basic foundation allowance              

                                                                                

3   shall be rounded to the nearest whole dollar.                               

                                                                                

4       (12) State payments related to payment of the foundation                    

                                                                                

5   allowance for a special education pupil are not calculated under            

                                                                                

6   this section but are instead calculated under section 51a.                  

                                                                                

7       (13) To assist the legislature in determining the basic                     

                                                                                

8   foundation allowance for the subsequent state fiscal year, each             

                                                                                

9   revenue estimating conference conducted under section 367b of the           

                                                                                

10  management and budget act, 1984 PA 431, MCL 18.1367b, shall                 

                                                                                

11  calculate a pupil membership factor, a revenue adjustment factor,           

                                                                                

12  and an index as follows:                                                    

                                                                                

13      (a) The pupil membership factor shall be computed by dividing               

                                                                                

14  the estimated membership in the school year ending in the current           

                                                                                

15  state fiscal year, excluding intermediate district membership, by           

                                                                                

16  the estimated membership for the school year ending in the                  

                                                                                

17  subsequent state fiscal year, excluding intermediate district               

                                                                                

18  membership.  If a consensus membership factor is not determined             

                                                                                

19  at the revenue estimating conference, the principals of the                 

                                                                                

20  revenue estimating conference shall report their estimates to the           

                                                                                

21  house and senate subcommittees responsible for school aid                   

                                                                                

22  appropriations not later than 7 days after the conclusion of the            

                                                                                

23  revenue conference.                                                         

                                                                                

24      (b) The revenue adjustment factor shall be computed by                      

                                                                                

25  dividing the sum of the estimated total state school aid fund               

                                                                                

26  revenue for the subsequent state fiscal year plus the estimated             

                                                                                

27  total state school aid fund revenue for the current state fiscal            


                                                                                

1   year, adjusted for any change in the rate or base of a tax the              

                                                                                

2   proceeds of which are deposited in that fund and excluding money            

                                                                                

3   transferred into that fund from the countercyclical budget and              

                                                                                

4   economic stabilization fund under section 353e of the management            

                                                                                

5   and budget act, 1984 PA 431, MCL 18.1353e, by the sum of the                

                                                                                

6   estimated total school aid fund revenue for the current state               

                                                                                

7   fiscal year plus the estimated total state school aid fund                  

                                                                                

8   revenue for the immediately preceding state fiscal year, adjusted           

                                                                                

9   for any change in the rate or base of a tax the proceeds of which           

                                                                                

10  are deposited in that fund.  If a consensus revenue factor is not           

                                                                                

11  determined at the revenue estimating conference, the principals             

                                                                                

12  of the revenue estimating conference shall report their estimates           

                                                                                

13  to the house and senate subcommittees responsible for school aid            

                                                                                

14  appropriations not later than 7 days after the conclusion of the            

                                                                                

15  revenue conference.                                                         

                                                                                

16      (c) The index shall be calculated by multiplying the pupil                  

                                                                                

17  membership factor by the revenue adjustment factor.  However, for           

                                                                                

18  2003-2004 only  2004-2005, the index shall be 1.00.  If a                  

                                                                                

19  consensus index is not determined at the revenue estimating                 

                                                                                

20  conference, the principals of the revenue estimating conference             

                                                                                

21  shall report their estimates to the house and senate                        

                                                                                

22  subcommittees responsible for school aid appropriations not later           

                                                                                

23  than 7 days after the conclusion of the revenue conference.                 

                                                                                

24      (14) If the principals at the revenue estimating conference                 

                                                                                

25  reach a consensus on the index described in subsection (13)(c),             

                                                                                

26  the basic foundation allowance for the subsequent state fiscal              

                                                                                

27  year shall be at least the amount of that consensus index                   


                                                                                

1   multiplied by the basic foundation allowance specified in                   

                                                                                

2   subsection (1).                                                             

                                                                                

3       (15) If at the January revenue estimating conference it is                  

                                                                                

4   estimated that pupil membership, excluding intermediate district            

                                                                                

5   membership, for the subsequent state fiscal year will be greater            

                                                                                

6   than 101% of the pupil membership, excluding intermediate                   

                                                                                

7   district membership, for the current state fiscal year, then it             

                                                                                

8   is the intent of the legislature that the executive budget                  

                                                                                

9   proposal for the school aid budget for the subsequent state                 

                                                                                

10  fiscal year include a general fund/general purpose allocation               

                                                                                

11  sufficient to support the membership in excess of 101% of the               

                                                                                

12  current year pupil membership.                                              

                                                                                

13      (16) For a district that had combined state and local revenue               

                                                                                

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

                                                                                

15  than $6,500.00, that had fewer than 7 pupils in membership in the           

                                                                                

16  1993-94 state fiscal year, that has at least 1 child educated in            

                                                                                

17  the district in the current state fiscal year, and that levies              

                                                                                

18  the number of mills of school operating taxes authorized for the            

                                                                                

19  district under section 1211 of the revised school code,                     

                                                                                

20  MCL 380.1211, a minimum amount of combined state and local                  

                                                                                

21  revenue shall be calculated for the district as provided under              

                                                                                

22  this subsection.  The minimum amount of combined state and local            

                                                                                

23  revenue for 1999-2000 shall be $67,000.00 plus the district's               

                                                                                

24  additional expenses to educate pupils in grades 9 to 12 educated            

                                                                                

25  in other districts as determined and allowed by the department.             

                                                                                

26  The minimum amount of combined state and local revenue under this           

                                                                                

27  subsection, before adding the additional expenses, shall increase           


                                                                                

1   each fiscal year by the same percentage increase as the                     

                                                                                

2   percentage increase in the basic foundation allowance from the              

                                                                                

3   immediately preceding fiscal year to the current fiscal year.               

                                                                                

4   The state portion of the minimum amount of combined state and               

                                                                                

5   local revenue under this subsection shall be calculated by                  

                                                                                

6   subtracting from the minimum amount of combined state and local             

                                                                                

7   revenue under this subsection the sum of the district's local               

                                                                                

8   school operating revenue and an amount equal to the product of              

                                                                                

9   the sum of the state portion of the district's foundation                   

                                                                                

10  allowance plus the amount calculated under section 20j times the            

                                                                                

11  district's membership.  As used in this subsection, "additional             

                                                                                

12  expenses" means the district's expenses for tuition or fees, not            

                                                                                

13  to exceed $6,500.00 as adjusted each year by an amount equal to             

                                                                                

14  the dollar amount of the difference between the basic foundation            

                                                                                

15  allowance for the current state fiscal year and $5,000.00, minus            

                                                                                

16  $200.00, plus a room and board stipend not to exceed $10.00 per             

                                                                                

17  school day for each pupil in grades 9 to 12 educated in another             

                                                                                

18  district, as approved by the department.                                    

                                                                                

19      (17) For a district in which 7.75 mills levied in 1992 for                  

                                                                                

20  school operating purposes in the 1992-93 school year were not               

                                                                                

21  renewed in 1993 for school operating purposes in the 1993-94                

                                                                                

22  school year, the district's combined state and local revenue per            

                                                                                

23  membership pupil shall be recalculated as if that millage                   

                                                                                

24  reduction did not occur and the district's foundation allowance             

                                                                                

25  shall be calculated as if its 1994-95 foundation allowance had              

                                                                                

26  been calculated using that recalculated 1993-94 combined state              

                                                                                

27  and local revenue per membership pupil as a base.  A district is            


                                                                                

1   not entitled to any retroactive payments for fiscal years before            

                                                                                

2   2000-2001 due to this subsection.                                           

                                                                                

3       (18) For a district in which an industrial facilities                       

                                                                                

4   exemption certificate that abated taxes on property with a state            

                                                                                

5   equalized valuation greater than the total state equalized                  

                                                                                

6   valuation of the district at the time the certificate was issued            

                                                                                

7   or $700,000,000.00, whichever is greater, was issued under 1974             

                                                                                

8   PA 198, MCL 207.551 to 207.572, before the calculation of the               

                                                                                

9   district's 1994-95 foundation allowance, the district's                     

                                                                                

10  foundation allowance for 2002-2003 is an amount equal to the sum            

                                                                                

11  of the district's foundation allowance for 2002-2003, as                    

                                                                                

12  otherwise calculated under this section, plus $250.00.                      

                                                                                

13      (19) For a district that received a grant under former                      

                                                                                

14  section 32e for 2001-2002,  the district's foundation allowance             

                                                                                

15  for 2002-2003 shall be adjusted to be an amount equal to the sum            

                                                                                

16  of the district's foundation allowance, as otherwise calculated             

                                                                                

17  under this section, plus the quotient of the amount of the grant            

                                                                                

18  award to the district for 2001-2002 under former section 32e                

                                                                                

19  divided by the district's membership for 2001-2002, and  the                

                                                                                

20  district's foundation allowance for  2003-2004  2002-2003 and               

                                                                                

21  each succeeding fiscal year shall be adjusted to be an amount               

                                                                                

22  equal to the sum of the district's foundation allowance, as                 

                                                                                

23  otherwise calculated under this section, plus the quotient of               

                                                                                

24  100% of the amount of the grant award to the district for                   

                                                                                

25  2001-2002 under former section 32e divided by the number of                 

                                                                                

26  pupils in the district's membership for 2001-2002 who were                  

                                                                                

27  residents of and enrolled in the district.  Except as otherwise             


                                                                                

1   provided in this subsection, a district qualifying for a                    

                                                                                

2   foundation allowance adjustment under this subsection shall use             

                                                                                

3   the funds resulting from this adjustment for at least 1 of grades           

                                                                                

4   K to 3 for purposes allowable under former section 32e as in                

                                                                                

5   effect for 2001-2002.  For an individual school or schools                  

                                                                                

6   operated by a district qualifying for a foundation allowance                

                                                                                

7   under this subsection that have been determined by the department           

                                                                                

8   to meet the adequate yearly progress standards of the federal no            

                                                                                

9   child left behind act of 2001, Public Law 107-110, 115                      

                                                                                

10  Stat. 1425, in both mathematics and English language arts at all            

                                                                                

11  applicable grade levels for all applicable subgroups, the                   

                                                                                

12  district may submit to the department an application for                    

                                                                                

13  flexibility in using the funds resulting from this adjustment               

                                                                                

14  that are attributable to the pupils in the school or schools.               

                                                                                

15  The application shall identify the affected school or schools and           

                                                                                

16  the affected funds and shall contain a plan for using the funds             

                                                                                

17  for specific purposes identified by the district that are                   

                                                                                

18  designed to reduce class size, but that may be different from the           

                                                                                

19  purposes otherwise allowable under this subsection.  The                    

                                                                                

20  department shall approve the application if the department                  

                                                                                

21  determines that the purposes identified in the plan are                     

                                                                                

22  reasonably designed to reduce class size.  If the department does           

                                                                                

23  not act to approve or disapprove an application within 30 days              

                                                                                

24  after it is submitted to the department, the application is                 

                                                                                

25  considered to be approved.  If an application for flexibility in            

                                                                                

26  using the funds is approved, the district may use the funds                 

                                                                                

27  identified in the application for any purpose identified in the             


                                                                                

1   plan.                                                                       

                                                                                

2       (20) For a district that is a qualifying school district with               

                                                                                

3   a school reform board in place under part 5a of the revised                 

                                                                                

4   school code, MCL 380.371 to 380.376, the district's foundation              

                                                                                

5   allowance for 2002-2003 shall be adjusted to be an amount equal             

                                                                                

6   to the sum of the district's foundation allowance, as otherwise             

                                                                                

7   calculated under this section, plus the quotient of                         

                                                                                

8   $15,000,000.00 divided by the district's membership for                     

                                                                                

9   2002-2003.  If a district ceases to meet the requirements of this           

                                                                                

10  subsection, the department shall adjust the district's foundation           

                                                                                

11  allowance in effect at that time based on a 2002-2003 foundation            

                                                                                

12  allowance for the district that does not include the 2002-2003              

                                                                                

13  adjustment under this subsection.  This subsection only applies             

                                                                                

14  for 2002-2003 and 2003-2004.  Beginning in 2004-2005, the                   

                                                                                

15  foundation allowance of a district that received an adjustment              

                                                                                

16  under this subsection for 2002-2003 and 2003-2004 shall be                  

                                                                                

17  calculated as if those adjustments did not occur.                           

                                                                                

18      (21) Payments to districts, university schools, or public                   

                                                                                

19  school academies shall not be made under this section.  Rather,             

                                                                                

20  the calculations under this section shall be used to determine              

                                                                                

21  the amount of state payments under section 22b.                             

                                                                                

22      (22) If an amendment to section 2 of article VIII of the                    

                                                                                

23  state constitution of 1963 allowing state aid to some or all                

                                                                                

24  nonpublic schools is approved by the voters of this state, each             

                                                                                

25  foundation allowance or per pupil payment calculation under this            

                                                                                

26  section may be reduced.                                                     

                                                                                

27      (23) As used in this section:                                               


                                                                                

1       (a) "Combined state and local revenue" means the aggregate of               

                                                                                

2   the district's state school aid received by or paid on behalf of            

                                                                                

3   the district under this section and the district's local school             

                                                                                

4   operating revenue.                                                          

                                                                                

5       (b) "Combined state and local revenue per membership pupil"                 

                                                                                

6   means the district's combined state and local revenue divided by            

                                                                                

7   the district's membership excluding special education pupils.               

                                                                                

8       (c) "Current state fiscal year" means the state fiscal year                 

                                                                                

9   for which a particular calculation is made.                                 

                                                                                

10      (d) "Immediately preceding state fiscal year" means the state               

                                                                                

11  fiscal year immediately preceding the current state fiscal year.            

                                                                                

12      (e) "Local school operating revenue" means school operating                 

                                                                                

13  taxes levied under section 1211 of the revised school code,                 

                                                                                

14  MCL 380.1211.                                                               

                                                                                

15      (f) "Local school operating revenue per membership pupil"                   

                                                                                

16  means a district's local school operating revenue divided by the            

                                                                                

17  district's membership excluding special education pupils.                   

                                                                                

18      (g) "Membership" means the definition of that term under                    

                                                                                

19  section 6 as in effect for the particular fiscal year for which a           

                                                                                

20  particular calculation is made.                                             

                                                                                

21      (h) "Principal residence" and "qualified agricultural                       

                                                                                

22  property" mean those terms as defined in section 7dd of the                 

                                                                                

23  general property tax act, 1893 PA 206, MCL 211.7dd.                         

                                                                                

24      (i) "School operating purposes" means the purposes included                 

                                                                                

25  in the operation costs of the district as prescribed in                     

                                                                                

26  sections 7 and 18.                                                          

                                                                                

27      (j) "School operating taxes" means local ad valorem property                


                                                                                

1   taxes levied under section 1211 of the revised school code,                 

                                                                                

2   MCL 380.1211, and retained for school operating purposes.                   

                                                                                

3       (k) "Taxable value per membership pupil" means taxable value,               

                                                                                

4   as certified by the department of treasury, for the calendar year           

                                                                                

5   ending in the current state fiscal year divided by the district's           

                                                                                

6   membership excluding special education pupils for the school year           

                                                                                

7   ending in the current state fiscal year.                                    

                                                                                

8       Sec. 21b.  (1) Subject to subsections (2) and (3), a                        

                                                                                

9   district shall use funds received under  section 20 or, beginning           

                                                                                

10  in 2000-2001, under  section 22a or 22b to support the attendance           

                                                                                

11  of a district pupil at an eligible postsecondary institution                

                                                                                

12  under the postsecondary enrollment options act, 1996 PA 160,                

                                                                                

13  MCL 388.511 to 388.524, or under the career and technical                   

                                                                                

14  preparation act, 2000 PA 258, MCL 388.1901 to 388.1913.                     

                                                                                

15      (2) To the extent required under subsection (3), a district                 

                                                                                

16  shall pay tuition and mandatory course fees, material fees, and             

                                                                                

17  registration fees required by an eligible postsecondary                     

                                                                                

18  institution for enrollment in an eligible course.  A district               

                                                                                

19  also shall pay any late fees charged by an eligible postsecondary           

                                                                                

20  institution due to the district's failure to make a required                

                                                                                

21  payment according to the timetable prescribed by the                        

                                                                                

22  postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to           

                                                                                

23  388.524, or the career and technical preparation act, 2000 PA               

                                                                                

24  258, MCL 388.1901 to 388.1913.  A district is not required to pay           

                                                                                

25  transportation costs, parking costs, or activity fees.                      

                                                                                

26      (3) A district shall pay to the eligible postsecondary                      

                                                                                

27  institution on behalf of an eligible student an amount equal to             


                                                                                

1   the lesser of the amount of the eligible charges described in               

                                                                                

2   subsection (2) or the prorated percentage of the state portion of           

                                                                                

3   the foundation allowance paid or calculated, as applicable, on              

                                                                                

4   behalf of that eligible student under section 20, with the                  

                                                                                

5   proration based on the proportion of the school year that the               

                                                                                

6   eligible student attends the postsecondary institution.  A                  

                                                                                

7   district may pay more money to an eligible postsecondary                    

                                                                                

8   institution on behalf of an eligible student than required under            

                                                                                

9   this section and the postsecondary enrollment options act, 1996             

                                                                                

10  PA 160, MCL 388.511 to 388.524, or the career and technical                 

                                                                                

11  preparation act, 2000 PA 258, MCL 388.1901 to 388.1913, and may             

                                                                                

12  use local school operating revenue for that purpose.  An eligible           

                                                                                

13  student is responsible for payment of the remainder of the costs            

                                                                                

14  associated with his or her postsecondary enrollment that exceed             

                                                                                

15  the amount the district is required to pay under this section and           

                                                                                

16  the postsecondary enrollment options act, 1996 PA 160,                      

                                                                                

17  MCL 388.511 to 388.524, or the career and technical preparation             

                                                                                

18  act, 2000 PA 258, MCL 388.1901 to 388.1913, and that are not paid           

                                                                                

19  by the district.  As used in this subsection, "local school                 

                                                                                

20  operating revenue" means that term as defined in section 20.                

                                                                                

21      (4) As used in this section, "eligible course", "eligible                   

                                                                                

22  student", and "eligible postsecondary institution" mean those               

                                                                                

23  terms as defined in section 3 of the postsecondary enrollment               

                                                                                

24  options act, 1996 PA 160, MCL 388.511 to 388.524, or in section 3           

                                                                                

25  of the career and technical preparation act, 2000 PA 258, MCL               

                                                                                

26  388.1903, as applicable.                                                    

                                                                                

27      Sec. 22a.  (1) From the appropriation in section 11, there                  


                                                                                

1   is allocated an amount not to exceed  $6,816,000,000.00                     

                                                                                

2   $6,765,300,000.00 for 2003-2004 and an amount not to exceed                 

                                                                                

3   $6,693,000,000.00 for 2004-2005 for payments to districts,                  

                                                                                

4   qualifying university schools, and qualifying public school                 

                                                                                

5   academies to guarantee each district, qualifying university                 

                                                                                

6   school, and qualifying public school academy an amount equal to             

                                                                                

7   its 1994-95 total state and local per pupil revenue for school              

                                                                                

8   operating purposes under section 11 of article IX of the state              

                                                                                

9   constitution of 1963.  Pursuant to section 11 of article IX of              

                                                                                

10  the state constitution of 1963, this guarantee does not apply to            

                                                                                

11  a district in a year in which the district levies a millage rate            

                                                                                

12  for school district operating purposes less than it levied in               

                                                                                

13  1994.  However, subsection (2) applies to calculating the                   

                                                                                

14  payments under this section.  Funds allocated under this section            

                                                                                

15  that are not expended in the state fiscal year for which they               

                                                                                

16  were allocated, as determined by the department, may be used to             

                                                                                

17  supplement the allocations under sections 22b and 51c in order to           

                                                                                

18  fully fund those calculated allocations for the same fiscal                 

                                                                                

19  year.                                                                       

                                                                                

20      (2) To ensure that a district receives an amount equal to the               

                                                                                

21  district's 1994-95 total state and local per pupil revenue for              

                                                                                

22  school operating purposes, there is allocated to each district a            

                                                                                

23  state portion of the district's 1994-95 foundation allowance in             

                                                                                

24  an amount calculated as follows:                                            

                                                                                

25      (a) Except as otherwise provided in this subsection, the                    

                                                                                

26  state portion of a district's 1994-95 foundation allowance is an            

                                                                                

27  amount equal to the district's 1994-95 foundation allowance or              


                                                                                

1   $6,500.00, whichever is less, minus the difference between the              

                                                                                

2   product of the taxable value per membership pupil of all property           

                                                                                

3   in the district that is not a homestead or qualified agricultural           

                                                                                

4   property times the lesser of 18 mills or the number of mills of             

                                                                                

5   school operating taxes levied by the district in 1993-94 and the            

                                                                                

6   quotient of the ad valorem property tax revenue of the district             

                                                                                

7   captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax               

                                                                                

8   increment finance authority act, 1980 PA 450, MCL 125.1801 to               

                                                                                

9   125.1830, the local development financing act, 1986 PA 281,                 

                                                                                

10  MCL 125.2151 to 125.2174, or the brownfield redevelopment                   

                                                                                

11  financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by            

                                                                                

12  the district's membership.  For a district that has a millage               

                                                                                

13  reduction required under section 31 of article IX of the state              

                                                                                

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

                                                                                

15  foundation allowance shall be calculated as if that reduction did           

                                                                                

16  not occur.                                                                  

                                                                                

17      (b) For a district that had a 1994-95 foundation allowance                  

                                                                                

18  greater than $6,500.00, the state payment under this subsection             

                                                                                

19  shall be the sum of the amount calculated under subdivision (a)             

                                                                                

20  plus the amount calculated under this subdivision.  The amount              

                                                                                

21  calculated under this subdivision shall be equal to the                     

                                                                                

22  difference between the district's 1994-95 foundation allowance              

                                                                                

23  minus $6,500.00 and the current year hold harmless school                   

                                                                                

24  operating taxes per pupil.  If the result of the calculation                

                                                                                

25  under subdivision (a) is negative, the negative amount shall be             

                                                                                

26  an offset against any state payment calculated under this                   

                                                                                

27  subdivision.  If the result of a calculation under this                     


                                                                                

1   subdivision is negative, there shall not be a state payment or a            

                                                                                

2   deduction under this subdivision.  The taxable values per                   

                                                                                

3   membership pupil used in the calculations under this subdivision            

                                                                                

4   are as adjusted by ad valorem property tax revenue captured under           

                                                                                

5   1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10      (3)  For  Beginning in 2003-2004, for pupils in membership in               

                                                                                

11  a qualifying public school academy or qualifying university                 

                                                                                

12  school, there is allocated under this section  for 2003-2004  to            

                                                                                

13  the authorizing body that is the fiscal agent for the qualifying            

                                                                                

14  public school academy for forwarding to the qualifying public               

                                                                                

15  school academy, or to the board of the public university                    

                                                                                

16  operating the qualifying university school, an amount equal to              

                                                                                

17  the 1994-95 per pupil payment to the qualifying public school               

                                                                                

18  academy or qualifying university school under section 20.                   

                                                                                

19      (4) A district, qualifying university school, or qualifying                 

                                                                                

20  public school academy may use funds allocated under this section            

                                                                                

21  in conjunction with any federal funds for which the district,               

                                                                                

22  qualifying university school, or qualifying public school academy           

                                                                                

23  otherwise would be eligible.                                                

                                                                                

24      (5) For a district that is formed or reconfigured after                     

                                                                                

25  June 1, 2000 by consolidation of 2 or more districts or by                  

                                                                                

26  annexation, the resulting district's 1994-95 foundation allowance           

                                                                                

27  under this section beginning after the effective date of the                


                                                                                

1   consolidation or annexation shall be the average of the 1994-95             

                                                                                

2   foundation allowances of each of the original or affected                   

                                                                                

3   districts, calculated as provided in this section, weighted as to           

                                                                                

4   the percentage of pupils in total membership in the resulting               

                                                                                

5   district in the state fiscal year in which the consolidation                

                                                                                

6   takes place who reside in the geographic area of each of the                

                                                                                

7   original districts.  If an affected district's 1994-95 foundation           

                                                                                

8   allowance is less than the 1994-95 basic foundation allowance,              

                                                                                

9   the amount of that district's 1994-95 foundation allowance shall            

                                                                                

10  be considered for the purpose of calculations under this                    

                                                                                

11  subsection to be equal to the amount of the 1994-95 basic                   

                                                                                

12  foundation allowance.                                                       

                                                                                

13      (6) As used in this section:                                                

                                                                                

14      (a) "1994-95 foundation allowance" means a district's 1994-95               

                                                                                

15  foundation allowance calculated and certified by the department             

                                                                                

16  of treasury or the superintendent under former section 20a as               

                                                                                

17  enacted in 1993 PA 336 and as amended by 1994 PA 283.                       

                                                                                

18      (b) "Current state fiscal year" means the state fiscal year                 

                                                                                

19  for which a particular calculation is made.                                 

                                                                                

20      (c) "Current year hold harmless school operating taxes per                  

                                                                                

21  pupil" means the per pupil revenue generated by multiplying a               

                                                                                

22  district's 1994-95 hold harmless millage by the district's                  

                                                                                

23  current year taxable value per membership pupil.                            

                                                                                

24      (d) "Hold harmless millage" means, for a district with a                    

                                                                                

25  1994-95 foundation allowance greater than $6,500.00, the number             

                                                                                

26  of mills by which the exemption from the levy of school operating           

                                                                                

27  taxes on a homestead and qualified agricultural property could be           


                                                                                

1   reduced as provided in section 1211(1) of the revised school                

                                                                                

2   code, MCL 380.1211, and the number of mills of school operating             

                                                                                

3   taxes that could be levied on all property as provided in section           

                                                                                

4   1211(2) of the revised school code, MCL 380.1211, as certified by           

                                                                                

5   the department of treasury for the 1994 tax year.                           

                                                                                

6       (e) "Homestead" means that term as defined in section 1211 of               

                                                                                

7   the revised school code, MCL 380.1211.                                      

                                                                                

8       (f) "Membership" means the definition of that term under                    

                                                                                

9   section 6 as in effect for the particular fiscal year for which a           

                                                                                

10  particular calculation is made.                                             

                                                                                

11      (g) "Qualified agricultural property" means that term as                    

                                                                                

12  defined in section 1211 of the revised school code,                         

                                                                                

13  MCL 380.1211.                                                               

                                                                                

14      (h) "Qualifying public school academy" means a public school                

                                                                                

15  academy that was in operation in the 1994-95 school year and is             

                                                                                

16  in operation in the current state fiscal year.                              

                                                                                

17      (i) "Qualifying university school" means a university school                

                                                                                

18  that was in operation in the 1994-95 school year and is in                  

                                                                                

19  operation in the current fiscal year.                                       

                                                                                

20      (j) "School operating taxes" means local ad valorem property                

                                                                                

21  taxes levied under section 1211 of the revised school code,                 

                                                                                

22  MCL 380.1211, and retained for school operating purposes.                   

                                                                                

23      (k) "Taxable value per membership pupil" means each of the                  

                                                                                

24  following divided by the district's membership:                             

                                                                                

25                                                                               (i) For the number of mills by which the exemption from the                         

                                                                                

26  levy of school operating taxes on a homestead and qualified                 

                                                                                

27  agricultural property may be reduced as provided in section                 


                                                                                

1   1211(1) of the revised school code, MCL 380.1211, the taxable               

                                                                                

2   value of homestead and qualified agricultural property for the              

                                                                                

3   calendar year ending in the current state fiscal year.                      

                                                                                

4       (ii) For the number of mills of school operating taxes that                  

                                                                                

5   may be levied on all property as provided in section 1211(2) of             

                                                                                

6   the revised school code, MCL 380.1211, the taxable value of all             

                                                                                

7   property for the calendar year ending in the current state fiscal           

                                                                                

8   year.                                                                       

                                                                                

9       Sec. 22b.  (1) From the appropriation in section 11, there                  

                                                                                

10  is allocated an amount not to exceed  $2,881,000,000.00 for                 

                                                                                

11  2003-2004  $2,905,000,000.00 for 2004-2005 for discretionary                

                                                                                

12  nonmandated payments to districts under this section.  Funds                

                                                                                

13  allocated under this section that are not expended in the state             

                                                                                

14  fiscal year for which they were allocated, as determined by the             

                                                                                

15  department, may be used to supplement the allocations under                 

                                                                                

16  sections 22a and 51c in order to fully fund those calculated                

                                                                                

17  allocations for the same fiscal year.                                       

                                                                                

18      (2) Subject to subsection (3) and section 11, the allocation                

                                                                                

19  to a district under this section shall be an amount equal to the            

                                                                                

20  sum of the amounts calculated under sections 20, 20j, 51a(2),               

                                                                                

21  51a(3), and 51a(12), minus the sum of the allocations to the                

                                                                                

22  district under sections 22a and 51c.                                        

                                                                                

23      (3) In order to receive an allocation under this section,                   

                                                                                

24  each district shall administer in each grade level that it                  

                                                                                

25  operates in grades 1 to 5 a standardized assessment approved by             

                                                                                

26  the department of grade-appropriate basic educational skills.  A            

                                                                                

27  district may use the Michigan literacy progress profile to                  


                                                                                

1   satisfy this requirement for grades 1 to 3.  Also, if the revised           

                                                                                

2   school code is amended to require annual assessments at                     

                                                                                

3   additional grade levels, in order to receive an allocation under            

                                                                                

4   this section each district shall comply with that requirement.              

                                                                                

5       (4) From the allocation in subsection (1), the department                   

                                                                                

6   shall  expend funds to pay for necessary costs associated with              

                                                                                

7   resolving matters pending in federal court impacting payments to            

                                                                                

8   districts, including, but not limited to, expert witness fees.              

                                                                                

9   Beginning in 2001-2002, from the allocation in subsection (1),              

                                                                                

10  the department shall also  pay up to $1,000,000.00 in litigation            

                                                                                

11  costs incurred by this state associated with lawsuits filed by 1            

                                                                                

12  or more districts or intermediate districts against this state.             

                                                                                

13  If the allocation under this section is insufficient to fully               

                                                                                

14  fund all payments required under this section, the payments under           

                                                                                

15  this subsection shall be made in full before any proration of               

                                                                                

16  remaining payments under this section.                                      

                                                                                

17      (5) It is the intent of the legislature that all                            

                                                                                

18  constitutional obligations of this state have been fully funded             

                                                                                

19  under sections 22a, 31d, 51a, and 51c.  If a claim is made by an            

                                                                                

20  entity receiving funds under this act that challenges the                   

                                                                                

21  legislative determination of the adequacy of this funding or                

                                                                                

22  alleges that there exists an unfunded constitutional requirement,           

                                                                                

23  the state budget director may escrow or allocate from the                   

                                                                                

24  discretionary funds for nonmandated payments under this section             

                                                                                

25  the amount as may be necessary to satisfy the claim before making           

                                                                                

26  any payments to districts under subsection (2).  If funds are               

                                                                                

27  escrowed, the escrowed funds are a work project appropriation and           


                                                                                

1   the funds are carried forward into the following fiscal year.               

                                                                                

2   The purpose of the work project is to provide for any payments              

                                                                                

3   that may be awarded to districts as a result of litigation.  The            

                                                                                

4   work project shall be completed upon resolution of the                      

                                                                                

5   litigation.                                                                 

                                                                                

6       (6) If the local claims review board or a court of competent                

                                                                                

7   jurisdiction makes a final determination that this state is in              

                                                                                

8   violation of section 29 of article IX of the state constitution             

                                                                                

9   of 1963 regarding state payments to districts, the state budget             

                                                                                

10  director shall use work project funds under subsection (5) or               

                                                                                

11  allocate from the discretionary funds for nonmandated payments              

                                                                                

12  under this section the amount as may be necessary to satisfy the            

                                                                                

13  amount owed to districts before making any payments to districts            

                                                                                

14  under subsection (2).                                                       

                                                                                

15      (7) If a claim is made in court that challenges the                         

                                                                                

16  legislative determination of the adequacy of funding for this               

                                                                                

17  state's constitutional obligations or alleges that there exists             

                                                                                

18  an unfunded constitutional requirement, any interested party may            

                                                                                

19  seek an expedited review of the claim by the local claims review            

                                                                                

20  board.  If the claim exceeds $10,000,000.00, this state may                 

                                                                                

21  remove the action to the court of appeals, and the court of                 

                                                                                

22  appeals shall have and shall exercise jurisdiction over the                 

                                                                                

23  claim.                                                                      

                                                                                

24      (8) If payments resulting from a final determination by the                 

                                                                                

25  local claims review board or a court of competent jurisdiction              

                                                                                

26  that there has been a violation of section 29 of article IX of              

                                                                                

27  the state constitution of 1963 exceed the amount allocated for              


                                                                                

1   discretionary nonmandated payments under this section, the                  

                                                                                

2   legislature shall provide for adequate funding for this state's             

                                                                                

3   constitutional obligations at its next legislative session.                 

                                                                                

4       (9) If a lawsuit challenging payments made to districts                     

                                                                                

5   related to costs reimbursed by federal title XIX medicaid funds             

                                                                                

6   is filed against this state during 2001-2002, 2002-2003, or                 

                                                                                

7   2003-2004, 50% of the amount allocated in subsection (1) not                

                                                                                

8   previously paid out for 2002-2003, 2003-2004, and each succeeding           

                                                                                

9   fiscal year is a work project appropriation and the funds are               

                                                                                

10  carried forward into the following fiscal year.  The purpose of             

                                                                                

11  the work project is to provide for any payments that may be                 

                                                                                

12  awarded to districts as a result of the litigation.  The work               

                                                                                

13  project shall be completed upon resolution of the litigation.  In           

                                                                                

14  addition, this state reserves the right to terminate future                 

                                                                                

15  federal title XIX medicaid reimbursement payments to districts if           

                                                                                

16  the amount or allocation of reimbursed funds is challenged in the           

                                                                                

17  lawsuit.  As used in this subsection, "title XIX" means title XIX           

                                                                                

18  of the social security act,  chapter 531, 49 Stat. 620,  42                 

                                                                                

19  U.S.C.  USC 1396 to  1396r-6 and 1396r-8 to  1396v.                        

                                                                                

20      Sec. 24.  (1) Subject to subsection (2), from the                           

                                                                                

21  appropriation in section 11, there is allocated  each fiscal year           

                                                                                

22  for 2002-2003, and for 2003-2004  for 2004-2005 to the educating            

                                                                                

23  district or intermediate district an amount equal to 100% of the            

                                                                                

24  added cost each fiscal year for educating all pupils assigned by            

                                                                                

25  a court or the family independence agency to reside in or to                

                                                                                

26  attend a juvenile detention facility or child caring institution            

                                                                                

27  licensed by the family independence agency  or the department of            


                                                                                

1   consumer and industry services  and approved by the department to           

                                                                                

2   provide an on-grounds education program.  The total amount to be            

                                                                                

3   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              

                                                                                

5   2004-2005.  For the purposes of this section, "added cost" shall            

                                                                                

6   be computed by deducting all other revenue received under this              

                                                                                

7   act for pupils described in this section from total costs, as               

                                                                                

8   approved by the department, in whole or in part, for educating              

                                                                                

9   those pupils in the on-grounds education program or in a program            

                                                                                

10  approved by the department that is located on property adjacent             

                                                                                

11  to a juvenile detention facility or child caring institution.               

                                                                                

12  Costs reimbursed by federal funds are not included.  For                    

                                                                                

13  2003-2004 only  a particular fiscal year, for an on-grounds                

                                                                                

14  education program or a program located on property adjacent to a            

                                                                                

15  juvenile detention facility or child caring institution that was            

                                                                                

16  not in existence at the time the allocations under this section             

                                                                                

17  were approved, the department shall give approval for only that             

                                                                                

18  portion of the educating district's or intermediate district's              

                                                                                

19  total costs that will not prevent the allocated amounts under               

                                                                                

20  this section from first being applied to 100% of the added cost             

                                                                                

21  of the programs that were in existence at the time the                      

                                                                                

22  preliminary allocations under this section were approved for that           

                                                                                

23  fiscal year.                                                                

                                                                                

24      (2) A district or intermediate district educating pupils                    

                                                                                

25  described in this section at a residential child caring                     

                                                                                

26  institution may operate, and receive funding under this section             

                                                                                

27  for, a department-approved on-grounds educational program for               


                                                                                

1   those pupils that is longer than 181 days, but not longer than              

                                                                                

2   233 days, if the child caring institution was licensed as a child           

                                                                                

3   caring institution and offered in 1991-92 an on-grounds                     

                                                                                

4   educational program that was longer than 181 days but not longer            

                                                                                

5   than 233 days and that was operated by a district or intermediate           

                                                                                

6   district.                                                                   

                                                                                

7       (3) Special education pupils funded under section 53a shall                 

                                                                                

8   not be funded under this section.                                           

                                                                                

9       (4) The department shall appoint a committee to study and                   

                                                                                

10  make recommendations concerning issues related to the education             

                                                                                

11  of pupils under this section, including, but not limited to,                

                                                                                

12  pupil counts, cost controls, and the number and type of eligible            

                                                                                

13  programs under this section.  The committee may include, but is             

                                                                                

14  not limited to, appointees from 1 or more adjudicated youth                 

                                                                                

15  educators associations, the house fiscal agency, the senate                 

                                                                                

16  fiscal agency, the department of management and budget, the                 

                                                                                

17  family independence agency, the department of corrections, the              

                                                                                

18  court system, and the department.  Not later than May 15, 2004,             

                                                                                

19  the committee shall submit its recommendations to the house and             

                                                                                

20  senate appropriations subcommittees responsible for this act and            

                                                                                

21  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.  From the general fund appropriation in section                   

                                                                                

4   11, there is allocated an amount not to exceed  $29,960,000.00              

                                                                                

5   for 2003-2004  $36,200,000.00 for 2004-2005 to reimburse                    

                                                                                

6   districts, intermediate districts, and the state school aid fund            

                                                                                

7   pursuant to section 12 of the Michigan renaissance zone act, 1996           

                                                                                

8   PA 376, MCL 125.2692, for taxes levied in  2003  2004 or for                

                                                                                

9   payments to districts as reimbursement for interest paid as a               

                                                                                

10  result of property tax refunds This reimbursement shall be               

                                                                                

11  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      Sec. 31a.  (1) From the state school aid fund  money                        

                                                                                

20  appropriated  appropriation in section 11, there is allocated for           

                                                                                

21  2003-2004  2004-2005 an amount not to exceed  $314,200,000.00              

                                                                                

22  $304,300,000.00 for payments to eligible districts and eligible             

                                                                                

23  public school academies under this section.  Subject to                     

                                                                                

24  subsection (12), the amount of the additional allowance under               

                                                                                

25  this section shall be based on the number of actual pupils in               

                                                                                

26  membership in the district or public school academy who met the             

                                                                                

27  income eligibility criteria for free breakfast, lunch, or milk in           


                                                                                

1   the immediately preceding state fiscal year, as determined under            

                                                                                

2   the Richard B. Russell national school lunch act,  chapter 281,             

                                                                                

3   60 Stat. 230,  42  U.S.C.  USC 1751 to  1753, 1755 to 1761,                 

                                                                                

4   1762a, 1765 to 1766a, 1769, 1769b to 1769c, and 1769f to  1769h,            

                                                                                

5   and reported to the department by October 31 of the immediately             

                                                                                

6   preceding fiscal year and adjusted not later than December 31 of            

                                                                                

7   the immediately preceding fiscal year.  However, for a public               

                                                                                

8   school academy that began operations as a public school academy             

                                                                                

9   after the pupil membership count day of the immediately preceding           

                                                                                

10  school year, the basis for the additional allowance under this              

                                                                                

11  section shall be the number of actual pupils in membership in the           

                                                                                

12  public school academy who met the income eligibility criteria for           

                                                                                

13  free breakfast, lunch, or milk in the current state fiscal year,            

                                                                                

14  as determined under the Richard B. Russell national school lunch            

                                                                                

15  act.                                                                        

                                                                                

16      (2) To be eligible to receive funding under this section,                   

                                                                                

17  other than funding under subsection (6), a district or public               

                                                                                

18  school academy that has not been previously determined to be                

                                                                                

19  eligible shall apply to the department, in a form and manner                

                                                                                

20  prescribed by the department, and a district or public school               

                                                                                

21  academy must meet all of the following:                                     

                                                                                

22      (a) The sum of the district's or public school academy's                    

                                                                                

23  combined state and local revenue per membership pupil in the                

                                                                                

24  current state fiscal year, as calculated under section 20, plus             

                                                                                

25  the amount of the district's per pupil allocation under section             

                                                                                

26  20j(2), is less than or equal to $6,500.00 adjusted by the dollar           

                                                                                

27  amount of the difference between the basic foundation allowance             


                                                                                

1   under section 20 for the current state fiscal year and $5,000.00,           

                                                                                

2   minus $200.00.                                                              

                                                                                

3       (b) The district or public school academy agrees to use the                 

                                                                                

4   funding only for purposes allowed under this section and to                 

                                                                                

5   comply with the program and accountability requirements under               

                                                                                

6   this section.                                                               

                                                                                

7       (3) Except as otherwise provided in this subsection, an                     

                                                                                

8   eligible district or eligible public school academy shall receive           

                                                                                

9   under this section for each membership pupil in the district or             

                                                                                

10  public school academy who met the income eligibility criteria for           

                                                                                

11  free breakfast, lunch, or milk, as determined under the Richard             

                                                                                

12  B. Russell national school lunch act and as reported to the                 

                                                                                

13  department by October 31 of the immediately preceding fiscal year           

                                                                                

14  and adjusted not later than December 31 of the immediately                  

                                                                                

15  preceding fiscal year, an amount per pupil equal to 11.5% of the            

                                                                                

16  sum of the district's foundation allowance or public school                 

                                                                                

17  academy's per pupil amount calculated under section 20, plus the            

                                                                                

18  amount of the district's per pupil allocation under section                 

                                                                                

19  20j(2), not to exceed $6,500.00 adjusted by the dollar amount of            

                                                                                

20  the difference between the basic foundation allowance under                 

                                                                                

21  section 20 for the current state fiscal year and $5,000.00, minus           

                                                                                

22  $200.00, or of the public school academy's per membership pupil             

                                                                                

23  amount calculated under section 20 for the current state fiscal             

                                                                                

24  year.  A public school academy that began operations as a public            

                                                                                

25  school academy after the pupil membership count day of the                  

                                                                                

26  immediately preceding school year shall receive under this                  

                                                                                

27  section for each membership pupil in the public school academy              


                                                                                

1   who met the income eligibility criteria for free breakfast,                 

                                                                                

2   lunch, or milk, as determined under the Richard B. Russell                  

                                                                                

3   national school lunch act and as reported to the department by              

                                                                                

4   October 31 of the current fiscal year and adjusted not later than           

                                                                                

5   December 31 of the current fiscal year, an amount per pupil equal           

                                                                                

6   to 11.5% of the public school academy's per membership pupil                

                                                                                

7   amount calculated under section 20 for the current state fiscal             

                                                                                

8   year.                                                                       

                                                                                

9       (4) Except as otherwise provided in this section, a district                

                                                                                

10  or public school academy receiving funding under this section               

                                                                                

11  shall use that money only to provide instructional programs and             

                                                                                

12  direct noninstructional services, including, but not limited to,            

                                                                                

13  medical or counseling services, for at-risk pupils; for school              

                                                                                

14  health clinics; and for the purposes of subsection (5) or (6).  A           

                                                                                

15  district or public school academy shall not use any of that money           

                                                                                

16  for administrative costs or to supplant another program or other            

                                                                                

17  funds, except for funds allocated to the district or public                 

                                                                                

18  school academy under this section in the immediately preceding              

                                                                                

19  year and already being used by the district or public school                

                                                                                

20  academy for at-risk pupils.  The instruction or direct                      

                                                                                

21  noninstructional services provided under this section may be                

                                                                                

22  conducted before or after regular school hours or by adding extra           

                                                                                

23  school days to the school year and may include, but are not                 

                                                                                

24  limited to, tutorial services, early childhood programs to serve            

                                                                                

25  children age 0 to 5, and reading programs as described in former            

                                                                                

26  section 32f as in effect for 2001-2002.  A tutorial method may be           

                                                                                

27  conducted with paraprofessionals working under the supervision of           


                                                                                

1   a certificated teacher.  The ratio of pupils to paraprofessionals           

                                                                                

2   shall be between 10:1 and 15:1.  Only 1 certificated teacher is             

                                                                                

3   required to supervise instruction using a tutorial method.  As              

                                                                                

4   used in this subsection, "to supplant another program" means to             

                                                                                

5   take the place of a previously existing instructional program or            

                                                                                

6   direct noninstructional services funded from a funding source               

                                                                                

7   other than funding under this section.                                      

                                                                                

8       (5) Except as otherwise provided in subsection (11), a                      

                                                                                

9   district or public school academy that receives funds under this            

                                                                                

10  section and that operates a school breakfast program under                  

                                                                                

11  section 1272a of the revised school code, MCL 380.1272a, shall              

                                                                                

12  use from the funds received under this section an amount, not to            

                                                                                

13  exceed $10.00 per pupil for whom the district or public school              

                                                                                

14  academy receives funds under this section, necessary to operate             

                                                                                

15  the school breakfast program.                                               

                                                                                

16      (6) From the funds allocated under subsection (1), there is                 

                                                                                

17  allocated  beginning with 2003-2004  for 2004-2005 an amount not            

                                                                                

18  to exceed $3,743,000.00 to support teen health centers.  These              

                                                                                

19  grants shall be awarded for 3 consecutive years beginning with              

                                                                                

20  2003-2004 in a form and manner approved jointly by the department           

                                                                                

21  and the department of community health.  Each grant recipient               

                                                                                

22  shall remain in compliance with the terms of the grant award or             

                                                                                

23  shall forfeit the grant award for the duration of the 3-year                

                                                                                

24  period after the noncompliance.  If any funds allocated under               

                                                                                

25  this subsection are not used for the purposes of this subsection            

                                                                                

26  for the fiscal year in which they are allocated, those unused               

                                                                                

27  funds shall be used that fiscal year to avoid or minimize any               


                                                                                

1   proration that would otherwise be required under subsection (12)            

                                                                                

2   for that fiscal year.                                                       

                                                                                

3       (7) Each district or public school academy receiving funds                  

                                                                                

4   under this section shall submit to the department by July 15 of             

                                                                                

5   each fiscal year a report, not to exceed 10 pages, on the usage             

                                                                                

6   by the district or public school academy of funds under this                

                                                                                

7   section, which report shall include at least a brief description            

                                                                                

8   of each program conducted by the district or public school                  

                                                                                

9   academy using funds under this section, the amount of funds under           

                                                                                

10  this section allocated to each of those programs, the number of             

                                                                                

11  at-risk pupils eligible for free or reduced price school lunch              

                                                                                

12  who were served by each of those programs, and the total number             

                                                                                

13  of at-risk pupils served by each of those programs.  If a                   

                                                                                

14  district or public school academy does not comply with this                 

                                                                                

15  subsection, the department shall withhold an amount equal to the            

                                                                                

16  August payment due under this section until the district or                 

                                                                                

17  public school academy complies with this subsection.  If the                

                                                                                

18  district or public school academy does not comply with this                 

                                                                                

19  subsection by the end of the state fiscal year, the withheld                

                                                                                

20  funds shall be forfeited to the school aid fund.                            

                                                                                

21      (8) In order to receive funds under this section, a district                

                                                                                

22  or public school academy shall allow access for the department or           

                                                                                

23  the department's designee to audit all records related to the               

                                                                                

24  program for which it receives those funds.  The district or                 

                                                                                

25  public school academy shall reimburse the state for all                     

                                                                                

26  disallowances found in the audit.                                           

                                                                                

27      (9) Subject to subsections (5), (6), and (11), any district                 


                                                                                

1   may use up to 100% of the funds it receives under this section to           

                                                                                

2   reduce the ratio of pupils to teachers in grades K-6, or any                

                                                                                

3   combination of those grades, in school buildings in which the               

                                                                                

4   percentage of pupils described in subsection (1) exceeds the                

                                                                                

5   district's aggregate percentage of those pupils.  Subject to                

                                                                                

6   subsections (5), (6), and (11), if a district obtains a waiver              

                                                                                

7   from the department, the district may use up to 100% of the funds           

                                                                                

8   it receives under this section to reduce the ratio of pupils to             

                                                                                

9   teachers in grades K-6, or any combination of those grades, in              

                                                                                

10  school buildings in which the percentage of pupils described in             

                                                                                

11  subsection (1) is at least 60% of the district's aggregate                  

                                                                                

12  percentage of those pupils and at least 30% of the total number             

                                                                                

13  of pupils enrolled in the school building.  To obtain a waiver, a           

                                                                                

14  district must apply to the department and demonstrate to the                

                                                                                

15  satisfaction of the department that the class size reductions               

                                                                                

16  would be in the best interests of the district's at-risk pupils.            

                                                                                

17      (10) A district or public school academy may use funds                      

                                                                                

18  received under this section for adult high school completion,               

                                                                                

19  general education development (G.E.D.)  test preparation, adult             

                                                                                

20  English as a second language, or adult basic education programs             

                                                                                

21  described in section 107.                                                   

                                                                                

22      (11) For an individual school or schools operated by a                      

                                                                                

23  district or public school academy receiving funds under this                

                                                                                

24  section that have been determined by the department to meet the             

                                                                                

25  adequate yearly progress standards of the federal no child left             

                                                                                

26  behind act of 2001, Public Law 107-110,  115 Stat. 1425,  in both           

                                                                                

27  mathematics and English language arts at all applicable grade               


                                                                                

1   levels for all applicable subgroups, the district or public                 

                                                                                

2   school academy may submit to the department an application for              

                                                                                

3   flexibility in using the funds received under this section that             

                                                                                

4   are attributable to the pupils in the school or schools.  The               

                                                                                

5   application shall identify the affected school or schools and the           

                                                                                

6   affected funds and shall contain a plan for using the funds for             

                                                                                

7   specific purposes identified by the district that are designed to           

                                                                                

8   benefit at-risk pupils in the school, but that may be different             

                                                                                

9   from the purposes otherwise allowable under this section.  The              

                                                                                

10  department shall approve the application if the department                  

                                                                                

11  determines that the purposes identified in the plan are                     

                                                                                

12  reasonably designed to benefit at-risk pupils in the school.  If            

                                                                                

13  the department does not act to approve or disapprove an                     

                                                                                

14  application within 30 days after it is submitted to the                     

                                                                                

15  department, the application is considered to be approved.  If an            

                                                                                

16  application for flexibility in using the funds is approved, the             

                                                                                

17  district may use the funds identified in the application for any            

                                                                                

18  purpose identified in the plan.                                             

                                                                                

19      (12) If necessary, and before any proration required under                  

                                                                                

20  section 11, the department shall prorate payments under this                

                                                                                

21  section by reducing the amount of the per pupil payment under               

                                                                                

22  this section by a dollar amount calculated by determining the               

                                                                                

23  amount by which the amount necessary to fully fund the                      

                                                                                

24  requirements of this section exceeds the maximum amount allocated           

                                                                                

25  under this section and then dividing that amount by the total               

                                                                                

26  statewide number of pupils who met the income eligibility                   

                                                                                

27  criteria for free breakfast, lunch, or milk in the immediately              


                                                                                

1   preceding fiscal year, as described in subsection (1).                      

                                                                                

2       (13) If a district is formed by consolidation after June 1,                 

                                                                                

3   1995, and if 1 or more of the original districts was not eligible           

                                                                                

4   before the consolidation for an additional allowance under this             

                                                                                

5   section, the amount of the additional allowance under this                  

                                                                                

6   section for the consolidated district shall be based on the                 

                                                                                

7   number of pupils described in subsection (1) enrolled in the                

                                                                                

8   consolidated district who reside in the territory of an original            

                                                                                

9   district that was eligible before the consolidation for an                  

                                                                                

10  additional allowance under this section.                                    

                                                                                

11      (14) A district or public school academy that does not meet                 

                                                                                

12  the eligibility requirement under subsection (2)(a) is eligible             

                                                                                

13  for funding under this section if at least 1/4 of the pupils in             

                                                                                

14  membership in the district or public school academy met the                 

                                                                                

15  income eligibility criteria for free breakfast, lunch, or milk in           

                                                                                

16  the immediately preceding state fiscal year, as determined and              

                                                                                

17  reported as described in subsection (1), and at least 4,500 of              

                                                                                

18  the pupils in membership in the district or public school academy           

                                                                                

19  met the income eligibility criteria for free breakfast, lunch, or           

                                                                                

20  milk in the immediately preceding state fiscal year, as                     

                                                                                

21  determined and reported as described in subsection (1).  A                  

                                                                                

22  district or public school academy that is eligible for funding              

                                                                                

23  under this section because the district meets the requirements of           

                                                                                

24  this subsection shall receive under this section for each                   

                                                                                

25  membership pupil in the district or public school academy who met           

                                                                                

26  the income eligibility criteria for free breakfast, lunch, or               

                                                                                

27  milk in the immediately preceding fiscal year, as determined and            


                                                                                

1   reported as described in subsection (1), an amount per pupil                

                                                                                

2   equal to 11.5% of the sum of the district's foundation allowance            

                                                                                

3   or public school academy's per pupil allocation under section 20,           

                                                                                

4   plus the amount of the district's per pupil allocation under                

                                                                                

5   section 20j(2), not to exceed $6,500.00 adjusted by the dollar              

                                                                                

6   amount of the difference between the basic foundation allowance             

                                                                                

7   under section 20 for the current state fiscal year and $5,000.00,           

                                                                                

8   minus $200.00.                                                              

                                                                                

9       (15) As used in this section, "at-risk pupil" means a pupil                 

                                                                                

10  for whom the district has documentation that the pupil meets at             

                                                                                

11  least 2 of the following criteria:  is a victim of child abuse or           

                                                                                

12  neglect; is below grade level in English language and                       

                                                                                

13  communication skills or mathematics; is a pregnant teenager or              

                                                                                

14  teenage parent; is eligible for a federal free or reduced-price             

                                                                                

15  lunch subsidy; has atypical behavior or attendance patterns; or             

                                                                                

16  has a family history of school failure, incarceration, or                   

                                                                                

17  substance abuse.  For pupils for whom the results of at least the           

                                                                                

18  applicable Michigan education assessment program (MEAP) test have           

                                                                                

19  been received, at-risk pupil also includes a pupil who does not             

                                                                                

20  meet the other criteria under this subsection but who did not               

                                                                                

21  achieve at least a score of  moderate  level 2 on the most recent           

                                                                                

22  MEAP  reading  English language arts, mathematics, or science               

                                                                                

23  test for which results for the pupil have been received.  , did             

                                                                                

24  not achieve at least a score of moderate on the most recent MEAP            

                                                                                

25  mathematics test for which results for the pupil have been                  

                                                                                

26  received, or did not achieve at least a score of novice on the              

                                                                                

27  most recent MEAP science test for which results for the pupil               


                                                                                

1   have been received.  For pupils in grades K-3, at-risk pupil also           

                                                                                

2   includes a pupil who is at risk of not meeting the district's               

                                                                                

3   core academic curricular objectives in English language  ,                  

                                                                                

4   communication skills,  arts or mathematics.                                 

                                                                                

5       Sec. 31d.  (1) From the appropriations in section 11, there                 

                                                                                

6   is allocated an amount not to exceed  $18,315,000.00 for                    

                                                                                

7   2002-2003 and an amount not to exceed $21,300,000.00 for                    

                                                                                

8   2003-2004  $21,095,100.00 for 2004-2005 for the purpose of making           

                                                                                

9   payments to districts and other eligible entities under this                

                                                                                

10  section.                                                                    

                                                                                

11      (2) The amounts allocated from state sources under this                     

                                                                                

12  section shall be used to pay the amount necessary to reimburse              

                                                                                

13  districts for 6.0127% of the necessary costs of the state                   

                                                                                

14  mandated portion of the school lunch programs provided by those             

                                                                                

15  districts.  The amount due to each district under this section              

                                                                                

16  shall be computed by the department using the methods of                    

                                                                                

17  calculation adopted by the Michigan supreme court in the                    

                                                                                

18  consolidated cases known as Durant v State of Michigan, Michigan            

                                                                                

19  supreme court docket no. 104458-104492.                                     

                                                                                

20      (3) The payments made under this section include all state                  

                                                                                

21  payments made to districts so that each district receives at                

                                                                                

22  least 6.0127% of the necessary costs of operating the state                 

                                                                                

23  mandated portion of the school lunch program in a fiscal year.              

                                                                                

24      (4) The payments made under this section to districts and                   

                                                                                

25  other eligible entities that are not required under section 1272a           

                                                                                

26  of the revised school code, MCL 380.1272a, to provide a school              

                                                                                

27  lunch program shall be in an amount not to exceed $10.00 per                


                                                                                

1   eligible pupil plus 5 cents for each free lunch and 2 cents for             

                                                                                

2   each reduced price lunch provided, as determined by the                     

                                                                                

3   department.                                                                 

                                                                                

4       (5) From the federal funds appropriated in section 11, there                

                                                                                

5   is allocated for  2003-2004  2004-2005 all available federal                

                                                                                

6   funding, estimated at $272,125,000.00, for the national school              

                                                                                

7   lunch program and all available federal funding, estimated at               

                                                                                

8   $2,506,000.00, for the emergency food assistance program.                   

                                                                                

9       (6) Notwithstanding section 17b, payments to eligible                       

                                                                                

10  entities other than districts under this section shall be paid on           

                                                                                

11  a schedule determined by the department.                                    

                                                                                

12      Sec. 32c.  (1) From the general fund appropriation in                       

                                                                                

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

                                                                                

14  $250,000.00 for  2003-2004  2004-2005 to the department for                 

                                                                                

15  grants for community-based collaborative prevention services                

                                                                                

16  designed to promote marriage and foster positive parenting                  

                                                                                

17  skills; improve parent/child interaction, especially for children           

                                                                                

18  0-3 years of age; promote access to needed community services;              

                                                                                

19  increase local capacity to serve families at risk; improve school           

                                                                                

20  readiness; and support healthy family environments that                     

                                                                                

21  discourage alcohol, tobacco, and other drug use.  The allocation            

                                                                                

22  under this section is to fund secondary prevention programs as              

                                                                                

23  defined by the children's trust fund for the prevention of child            

                                                                                

24  abuse and neglect.                                                          

                                                                                

25      (2) The funds allocated under subsection (1) shall be                       

                                                                                

26  distributed through a joint request for proposals process                   

                                                                                

27  established by the department in conjunction with the children's            


                                                                                

1   trust fund and the state's interagency systems reform workgroup.            

                                                                                

2   Projects funded with grants awarded under this section shall meet           

                                                                                

3   all of the following:                                                       

                                                                                

4       (a) Be secondary prevention initiatives and voluntary to                    

                                                                                

5   consumers.  This appropriation is not intended to serve the needs           

                                                                                

6   of children for whom and families in which neglect or abuse has             

                                                                                

7   been substantiated.                                                         

                                                                                

8       (b) Demonstrate that the planned services are part of a                     

                                                                                

9   community's integrated comprehensive family support strategy                

                                                                                

10  endorsed by the local multi-purpose collaborative body.                     

                                                                                

11      (c) Provide a 25% local match, of which not more than 10% may               

                                                                                

12  be in-kind services, unless this requirement is waived by the               

                                                                                

13  interagency systems reform workgroup.                                       

                                                                                

14      (3) Notwithstanding section 17b, payments under this section                

                                                                                

15  may be made pursuant to an agreement with the department.                   

                                                                                

16      (4) Not later than January 30 of the next fiscal year, the                  

                                                                                

17  department shall prepare and submit to the governor and the                 

                                                                                

18  legislature an annual report of outcomes achieved by the                    

                                                                                

19  providers of the community-based collaborative prevention                   

                                                                                

20  services funded under this section for a fiscal year.                       

                                                                                

21      Sec. 32d.  (1) From the state school aid fund money                         

                                                                                

22  appropriated under section 11, there is allocated an amount not             

                                                                                

23  to exceed  $72,600,000.00 for 2003-2004  $70,600,000.00 for                 

                                                                                

24  2004-2005 for school readiness  or preschool and parenting                  

                                                                                

25  program  grants to enable eligible districts, as determined under           

                                                                                

26  section 37, to develop or expand, in conjunction with whatever              

                                                                                

27  federal funds may be available, including, but not limited to,              


                                                                                

1   federal funds under title I of the elementary and secondary                 

                                                                                

2   education act of 1965,  Public Law 89-10, 108 Stat. 3519, 20                

                                                                                

3   U.S.C.  20 USC 6301 to  6304, 6311 to 6339, 6361 to 6368, 6371 to           

                                                                                

4   6376, 6381 to 6383, 6391 to 6399, 6421 to 6472, 6491 to 6494,               

                                                                                

5   6511 to 6518, 6531 to 6537, 6551 to 6561i, and 6571 to  6578,               

                                                                                

6   chapter 1 of title I of the Hawkins-Stafford elementary and                 

                                                                                

7   secondary school improvement amendments of 1988, Public Law                 

                                                                                

8   89-10, 102 Stat. 140  100-297, and the head start act,                     

                                                                                

9   subchapter B of chapter 8 of subtitle A of title VI of the                 

                                                                                

10  omnibus budget reconciliation act of 1981, Public Law 97-35, 42             

                                                                                

11  U.S.C.  42 USC 9831 to  9835, 9836 to 9844, 9846, and 9848 to               

                                                                                

12  9852  9852a, comprehensive compensatory programs designed to  do            

                                                                                

13  1 or both of the following:  (a) Improve  improve the readiness             

                                                                                

14  and subsequent achievement of educationally disadvantaged                   

                                                                                

15  children as defined by the department who will be at least 4, but           

                                                                                

16  less than 5 years of age, as of December 1 of the school year in            

                                                                                

17  which the programs are offered, and who show evidence of 2 or               

                                                                                

18  more risk factors as defined in the state board report entitled             

                                                                                

19  "children at risk" that was adopted by the state board on April             

                                                                                

20  5, 1988.                                                                    

                                                                                

21      (b) Provide preschool and parenting education programs                      

                                                                                

22  similar to those under former section 32b as in effect for                  

                                                                                

23  2001-2002.                                                                  

                                                                                

24      (2) A comprehensive compensatory program funded under this                  

                                                                                

25  section may include an age-appropriate educational curriculum,              

                                                                                

26  nutritional services, health screening for participating                    

                                                                                

27  children, a plan for parent and legal guardian involvement, and             


                                                                                

1   provision of referral services for families eligible for                    

                                                                                

2   community social services.                                                  

                                                                                

3       (3) In addition to the allocation under subsection (1), from                

                                                                                

4   the general fund money allocated under section 11, there is                 

                                                                                

5   allocated an amount not to exceed $200,000.00 for  2003-2004 for            

                                                                                

6   the purposes of subsection (4).  (4) From the general fund                  

                                                                                

7   allocation in subsection (3), there is allocated for 2003-2004 an           

                                                                                

8   amount not to exceed $200,000.00  2004-2005 for a competitive               

                                                                                

9   grant to continue a longitudinal evaluation of children who have            

                                                                                

10  participated in the Michigan school readiness program.                      

                                                                                

11      (4)  (5)  A district receiving a grant under this section                   

                                                                                

12  may contract for the provision of the comprehensive compensatory            

                                                                                

13  program and retain for administrative services an amount equal to           

                                                                                

14  not more than 5% of the grant amount.                                       

                                                                                

15      (5)  (6)  A grant recipient receiving funds under this                      

                                                                                

16  section shall report to the department no later than October 15             

                                                                                

17  of each year the number of children participating in the program            

                                                                                

18  who meet the income or other eligibility criteria specified under           

                                                                                

19  section 37(3)(g) and the total number of children participating             

                                                                                

20  in the program.  For children participating in the program who              

                                                                                

21  meet the income or other eligibility criteria specified under               

                                                                                

22  section 37(3)(g), grant recipients shall also report whether or             

                                                                                

23  not a parent is available to provide care based on employment               

                                                                                

24  status.  For the purposes of this subsection, "employment status"           

                                                                                

25  shall be defined by the family independence agency in a manner              

                                                                                

26  consistent with maximizing the amount of spending that may be               

                                                                                

27  claimed for temporary assistance for needy families maintenance             


                                                                                

1   of effort purposes.                                                         

                                                                                

2       Sec. 32f.   (1) From the state school aid fund allocation                   

                                                                                

3   under section 32a(1), there is allocated for 2001-2002 an amount            

                                                                                

4   not to exceed $45,000,000.00 and for 2002-2003 and 2003-2004                

                                                                                

5   $0.00, for grants under this section.  From the general fund                

                                                                                

6   allocation under section 32a(1), there is allocated each fiscal             

                                                                                

7   year for 2001-2002, 2002-2003, and 2003-2004 $0.00 for the                  

                                                                                

8   purposes of subsection (3).                                                 

                                                                                

9       (2) From the allocation in subsection (1), there is allocated               

                                                                                

10  for 2001-2002 an amount not to exceed $2,000,000.00 and for                 

                                                                                

11  2002-2003 and 2003-2004 $0.00, for providing grants to the 8                

                                                                                

12  regional literacy centers for the purposes of expanding training            

                                                                                

13  programs for trainers and teachers in the use of strategies for             

                                                                                

14  reading instruction and assessment, including the Michigan                  

                                                                                

15  literacy progress profile.                                                  

                                                                                

16      (3) From the general fund allocation in subsection (1), there               

                                                                                

17  is allocated to the department $0.00 each fiscal year for                   

                                                                                

18  2001-2002, 2002-2003, and 2003-2004 for the development and                 

                                                                                

19  dissemination of  In collaboration with central Michigan                    

                                                                                

20  university, the department shall develop and disseminate read,              

                                                                                

21  educate, and develop youth  (READY)  (R.E.A.D.Y.) kits to parents           

                                                                                

22  of preschool and kindergarten children to provide these parents             

                                                                                

23  with information about how they can prepare their children for              

                                                                                

24  reading success.                                                            

                                                                                

25      (4) From the general fund allocation in subsection (1),                     

                                                                                

26  there is allocated to the department each fiscal year for                   

                                                                                

27  2001-2002, 2002-2003, and 2003-2004 $0.00 for the grant review              


                                                                                

1   process and grant administration under this section.                        

                                                                                

2       (5) Except as otherwise provided in subsection (17), to be                  

                                                                                

3   eligible for a grant under this section, a district must have had           

                                                                                

4   at least 1,500 pupils in membership in 1998-99, and the number of           

                                                                                

5   pupils in the district that have been determined to have a                  

                                                                                

6   specific learning disability according to R 340.1713 of the                 

                                                                                

7   Michigan administrative code, as determined in the December 1,              

                                                                                

8   1998 head count required under the individuals with disabilities            

                                                                                

9   education act, title VI of Public Law 91-230, must equal or                 

                                                                                

10  exceed 5% of the district's membership.  In addition, a district            

                                                                                

11  is eligible for a grant under this section if the district had at           

                                                                                

12  least 1,500 pupils in membership in 1998-99 and if not more than            

                                                                                

13  41% of the district's pupils who took the spring 1999 fourth                

                                                                                

14  grade MEAP reading test achieved a score of at least                        

                                                                                

15  satisfactory.  Except as otherwise provided in subsection (17),             

                                                                                

16  for a public school academy to be eligible for a grant under this           

                                                                                

17  section, the public school academy must be located in a district            

                                                                                

18  that is eligible under this subsection.                                     

                                                                                

19      (6) From the allocation in subsection (1), there is allocated               

                                                                                

20  for 2001-2002 an amount not to exceed $43,000,000.00 and for                

                                                                                

21  2002-2003 and 2003-2004 $0.00, for competitive grants to eligible           

                                                                                

22  districts, to intermediate districts, and to public school                  

                                                                                

23  academies located within eligible districts for reading                     

                                                                                

24  improvements programs for pupils in grades K to 4, reading                  

                                                                                

25  disorders and reading methods programs, mentoring programs,                 

                                                                                

26  language and literacy outreach programs, or cognitive development           

                                                                                

27  programs.  For 2001-2002, grants under this subsection shall be             


                                                                                

1   paid to grant recipients in the same proportion of the total                

                                                                                

2   allocation under this subsection as for 2000-2001.  If the                  

                                                                                

3   legislature enacts legislation authorizing the appropriation of             

                                                                                

4   federal funds for reading improvement programs for 2001-2002, for           

                                                                                

5   2002-2003, or for 2003-2004, then it is the intent of the                   

                                                                                

6   legislature that these funds be used to the extent possible for             

                                                                                

7   the purposes of this subsection.  Federal funds received for                

                                                                                

8   reading improvement programs that can be used for substantially             

                                                                                

9   similar purposes as described under this section shall be first             

                                                                                

10  expended for the purposes of this subsection before funds                   

                                                                                

11  appropriated from the state school aid fund allocated under this            

                                                                                

12  subsection, and the expenditure of funds under this subsection              

                                                                                

13  from the state school aid fund shall be reduced by an amount                

                                                                                

14  equal to the amount of the expenditure of federal funds under               

                                                                                

15  this subsection.  If any conflict exists between federal reading            

                                                                                

16  program guidelines and this section, federal law will control.              

                                                                                

17      (7) Except as otherwise provided in subsection (17), to                     

                                                                                

18  qualify for funding under this section, a proposed reading                  

                                                                                

19  improvement program must meet all of the following:                         

                                                                                

20      (a) The program shall include assessment of reading skills of               

                                                                                

21  pupils in grades K to 4 to identify those pupils who are reading            

                                                                                

22  below grade level and must provide special reading assistance for           

                                                                                

23  these pupils.                                                               

                                                                                

24      (b) The program shall be a research-based, validated,                       

                                                                                

25  structured reading program.                                                 

                                                                                

26      (c) The program shall include continuous assessment of pupils               

                                                                                

27  and individualized education plans for pupils.                              


                                                                                

1       (d) The program shall align learning resources to state                     

                                                                                

2   standards.                                                                  

                                                                                

3       (e) For each school building receiving funding under this                   

                                                                                

4   section for a reading improvement program, the program shall                

                                                                                

5   serve at least 25% of pupils who are identified as at-risk, as              

                                                                                

6   determined by the Michigan literacy progress profile, of reading            

                                                                                

7   failure, and the amount of the grant shall not exceed $85,000.00            

                                                                                

8   per school building annually.                                               

                                                                                

9       (8) Funds allocated for programs described in subsection (7)                

                                                                                

10  may be used to reimburse grant recipients for funds paid by                 

                                                                                

11  districts for up to 1/2 of the salaries and benefits for each               

                                                                                

12  teacher trained and certified to provide a reading improvement              

                                                                                

13  program.                                                                    

                                                                                

14      (9) Except as otherwise provided under subsection (17), to                  

                                                                                

15  qualify for funding under this section, a proposed mentoring                

                                                                                

16  program must be a research-based, validated program or a                    

                                                                                

17  statewide 1-to-1 mentoring program to enhance the independence              

                                                                                

18  and life quality of pupils who are mentally impaired by providing           

                                                                                

19  opportunities for mentoring and integrated employment.                      

                                                                                

20      (10) Except as otherwise provided under subsection (17), to                 

                                                                                

21  qualify for funding under this section, a proposed cognitive                

                                                                                

22  development program must be a research-based, validated                     

                                                                                

23  educational service program, focused on assessing and building              

                                                                                

24  essential cognitive and perceptual learning abilities to                    

                                                                                

25  strengthen pupil concentration and learning.                                

                                                                                

26      (11) Except as otherwise provided under subsection (17), to                 

                                                                                

27  qualify for funding under this section, a proposed structured               


                                                                                

1   mentoring-tutorial reading program for preschool to grade 4                 

                                                                                

2   pupils must be a research-based, validated program that develops            

                                                                                

3   individualized instructional plans based on each pupil's age,               

                                                                                

4   assessed needs, reading level, interests, and learning style.               

                                                                                

5       (12) A program receiving funding under this section may be                  

                                                                                

6   conducted outside of regular school hours or outside the regular            

                                                                                

7   school calendar.                                                            

                                                                                

8       (13) To compete for a grant under this section, an applicant                

                                                                                

9   shall apply to the superintendent in the form and manner                    

                                                                                

10  prescribed by the superintendent.  The department shall make                

                                                                                

11  applications available for this purpose.  An applicant shall                

                                                                                

12  include in its application a projected budget for the programs.             

                                                                                

13  The grant recipient shall provide at least a 20% local match from           

                                                                                

14  local public or private resources for the funds received under              

                                                                                

15  this section.  Not more than 1/2 of this matching requirement, up           

                                                                                

16  to a total of 10% of the total project budget, may be satisfied             

                                                                                

17  through in-kind services provided by participating providers of             

                                                                                

18  programs or services.  In addition, not more than 10% of the                

                                                                                

19  grant may be used for program administration.                               

                                                                                

20      (14) The superintendent shall approve or disapprove                         

                                                                                

21  applications and notify the applicant of that decision.  Priority           

                                                                                

22  in awarding grants shall be given to programs that focus on                 

                                                                                

23  accelerating student achievement on a cost-effective basis,                 

                                                                                

24  reducing the number of pupils requiring special education                   

                                                                                

25  programs and services, and improving pupil scores on standardized           

                                                                                

26  tests and assessments.                                                      

                                                                                

27      (15) A grant recipient receiving funds under this section                   


                                                                                

1   shall report to the department, in the form and manner prescribed           

                                                                                

2   by the department, on the results achieved by the program.  At a            

                                                                                

3   minimum, the grant recipient shall report to the department by              

                                                                                

4   October 15 regarding the program's impact on reducing the number            

                                                                                

5   of pupils requiring special education programs and services and             

                                                                                

6   on improving pupil scores on standardized tests and assessments,            

                                                                                

7   and information on the costs and benefits per unit of pupil                 

                                                                                

8   improvement.  In addition, the report shall state the number of             

                                                                                

9   pupils eligible for free or reduced price school lunch who                  

                                                                                

10  received services under the program and the total number of                 

                                                                                

11  pupils who received services under the program.  Not later than             

                                                                                

12  November 15 of each fiscal year, the department shall submit a              

                                                                                

13  report to the legislature, the state budget director, and the               

                                                                                

14  senate and house fiscal agencies detailing the results of the               

                                                                                

15  programs.  It is the intent of the legislature that further                 

                                                                                

16  funding for the programs under this section will reflect the                

                                                                                

17  results achieved in these programs.                                         

                                                                                

18      (16) Notwithstanding section 17b, payments under this section               

                                                                                

19  shall be paid on a schedule determined by the department.                   

                                                                                

20      (17) For a district or public school academy awarded a grant                

                                                                                

21  under former section 32, the determination of whether the                   

                                                                                

22  district or public school academy is eligible for a grant under             

                                                                                

23  this section may be made according to the eligibility standards             

                                                                                

24  in effect under former section 32.  Further, the district or                

                                                                                

25  public school academy may continue to use the grant proceeds for            

                                                                                

26  any use permissible under this section or former section 32 as in           

                                                                                

27  effect at the time the district or public school academy was                


                                                                                

1   awarded the grant.                                                          

                                                                                

2       (18) If the maximum amount appropriated under this section                  

                                                                                

3   exceeds the amount necessary to fully fund allocations under this           

                                                                                

4   section, that excess amount shall not be expended in that state             

                                                                                

5   fiscal year but shall instead be carried forward to the                     

                                                                                

6   succeeding fiscal year and added to any funds appropriated for              

                                                                                

7   that fiscal year for expenditure in that fiscal year.                       

                                                                                

8       (19) A district that received funding for 1999-2000 under                   

                                                                                

9   former section 32 shall receive funding under this section for              

                                                                                

10  2001-2002.                                                                  

                                                                                

11      (20) A district or intermediate district receiving funds                    

                                                                                

12  under this section may carry over any unexpended funds received             

                                                                                

13  under this section to subsequent fiscal years and may expend                

                                                                                

14  those unused funds in subsequent fiscal years.                              

                                                                                

15      Sec. 32j.  (1) From the appropriation in section 11, there                  

                                                                                

16  is allocated an amount not to exceed $3,326,000.00 for                      

                                                                                

17  2003-2004  2004-2005 for great parents, great start grants to              

                                                                                

18  intermediate districts to provide programs for parents with                 

                                                                                

19  preschool children.  The purpose of these programs is to                    

                                                                                

20  encourage early literacy, improve school readiness, reduce the              

                                                                                

21  need for special education services, and foster the maintenance             

                                                                                

22  of stable families by encouraging positive parenting skills.                

                                                                                

23      (2) To qualify for funding under this section, a program                    

                                                                                

24  shall provide services to all families with children age 5 or               

                                                                                

25  younger residing within the intermediate district who choose to             

                                                                                

26  participate, including at least all of the following services:              

                                                                                

27      (a) Providing parents with information on child development                 


                                                                                

1   from birth to age 5.                                                        

                                                                                

2       (b) Providing parents with methods to enhance parent-child                  

                                                                                

3   interaction; including, but not limited to, encouraging parents             

                                                                                

4   to read to their preschool children at least 1/2 hour per day.              

                                                                                

5       (c) Providing parents with examples of learning opportunities               

                                                                                

6   to promote intellectual, physical, and social growth of                     

                                                                                

7   preschoolers.                                                               

                                                                                

8       (d) Promoting access to needed community services through a                 

                                                                                

9   community-school-home partnership.                                          

                                                                                

10      (3) To compete for a grant under this section, an                           

                                                                                

11  intermediate district shall apply to the department not later               

                                                                                

12  than October 1,  2003  2004 in the form and manner prescribed by            

                                                                                

13  the department.  To be considered for a grant under this section,           

                                                                                

14  a grant application shall do all of the following in a manner               

                                                                                

15  prescribed by the department:                                               

                                                                                

16      (a) Provide a plan for the delivery of the program components               

                                                                                

17  described in subsection (2) that provides for educators trained             

                                                                                

18  in child development to help parents understand their role in               

                                                                                

19  their child's developmental process, thereby promoting school               

                                                                                

20  readiness and mitigating the need for special education                     

                                                                                

21  services.                                                                   

                                                                                

22      (b) Demonstrate an adequate collaboration of local entities                 

                                                                                

23  involved in providing programs and services for preschool                   

                                                                                

24  children and their parents.                                                 

                                                                                

25      (c) Provide a projected budget for the program to be funded.                

                                                                                

26  The intermediate district shall provide at least a 20% local                

                                                                                

27  match from local public or private resources for the funds                  


                                                                                

1   received under this section.  Not more than 1/2 of this matching            

                                                                                

2   requirement, up to a total of 10% of the total project budget,              

                                                                                

3   may be satisfied through in-kind services provided by                       

                                                                                

4   participating providers of programs or services.  In addition,              

                                                                                

5   not more than 10% of the grant may be used for program                      

                                                                                

6   administration.                                                             

                                                                                

7       (4) Each successful grant recipient of a grant under this                   

                                                                                

8   section shall agree to include a data collection system  and an             

                                                                                

9   evaluation tool  approved by the department.  to measure the                

                                                                                

10  impact of the program on improving school readiness and fostering           

                                                                                

11  the maintenance of stable families.  The data collection system             

                                                                                

12  shall provide a report by October 15 of each year on the number             

                                                                                

13  of children in families with income below 200% of the federal               

                                                                                

14  poverty level that received services under this program and the             

                                                                                

15  total number of children who received services under this                   

                                                                                

16  program.                                                                    

                                                                                

17      (5) The department or superintendent, as applicable, shall do               

                                                                                

18  all of the following:                                                       

                                                                                

19      (a) The department shall make applications available for the                

                                                                                

20  purposes of this section not later than August 15,  2003  2004.             

                                                                                

21      (b) The superintendent shall approve or disapprove                          

                                                                                

22  applications and notify the applying intermediate district of               

                                                                                

23  that decision not later than November 15,  2003  2004.  The                 

                                                                                

24  amount of each approved grant shall not exceed 3.5% of the                  

                                                                                

25  intermediate district's 2002-2003 payment under section 81.                 

                                                                                

26      (c) The department shall ensure that all programs funded                    

                                                                                

27  under this section utilize the most current validated                       


                                                                                

1   research-based methods and curriculum for providing the program             

                                                                                

2   components described in subsection (2).                                     

                                                                                

3       (d) The department shall submit a report to the state budget                

                                                                                

4   director and the senate and house fiscal agencies  detailing the            

                                                                                

5   evaluations  summarizing the data collection reports described in           

                                                                                

6   subsection (4) by December 1 of each year.                                  

                                                                                

7       (6) An intermediate district receiving funds under this                     

                                                                                

8   section shall use the funds only for the program funded under               

                                                                                

9   this section.  An intermediate district receiving funds under               

                                                                                

10  this section may carry over any unexpended funds received under             

                                                                                

11  this section to subsequent fiscal years and may expend those                

                                                                                

12  unused funds in subsequent fiscal years.                                    

                                                                                

13      Sec. 39a.  (1) From the  appropriation  federal funds                       

                                                                                

14  appropriated in section 11, there is allocated for  2003-2004               

                                                                                

15  2004-2005 to districts, intermediate districts, and other                   

                                                                                

16  eligible entities all available federal funding, estimated at               

                                                                                

17  $665,458,500.00  $664,225,900.00, for the federal programs under           

                                                                                

18  the no child left behind act of 2001, Public Law 107-110.  , 115            

                                                                                

19  Stat. 1425.  These funds are allocated  for each fiscal year  as            

                                                                                

20  follows:                                                                    

                                                                                

21      (a) An amount estimated at $1,666,300.00 for community                      

                                                                                

22  service state grants, funded from DED-OESE, community service               

                                                                                

23  state grant funds.                                                          

                                                                                

24      (b) An amount estimated at  $15,946,200.00  $16,399,300.00 to               

                                                                                

25  provide students with drug- and violence-prevention programs and            

                                                                                

26  to implement strategies to improve school safety, funded from               

                                                                                

27  DED-OESE, drug-free schools and communities funds.                          


                                                                                

1       (c) An amount estimated at $14,546,300.00 for the purpose of                

                                                                                

2   improving teaching and learning through a more effective use of             

                                                                                

3   technology, funded from DED-OESE, educational technology state              

                                                                                

4   grant funds.                                                                

                                                                                

5       (d) An amount estimated at  $105,570,600.00  $105,785,600.00                

                                                                                

6   for the purpose of preparing, training, and recruiting                      

                                                                                

7   high-quality teachers and class size reduction, funded from                 

                                                                                

8   DED-OESE, improving teacher quality funds.                                  

                                                                                

9       (e) An amount estimated at  $4,647,700.00  $3,967,900.00 for                

                                                                                

10  programs to teach English to limited English proficient (LEP)               

                                                                                

11  children, funded from DED-OESE, language acquisition state grant            

                                                                                

12  funds.                                                                      

                                                                                

13      (f) An amount estimated at $8,550,000.00 for the Michigan                   

                                                                                

14  charter school subgrant program, funded from DED-OESE, charter              

                                                                                

15  school funds.                                                               

                                                                                

16      (g) An amount estimated at  $247,600.00  $40,000.00 for                     

                                                                                

17  Michigan model partnership for character education programs,                

                                                                                

18  funded from DED-OESE, title X, fund for improvement of education            

                                                                                

19  funds.                                                                      

                                                                                

20      (h) An amount estimated at  $2,010,100.00  $610,100.00 for                  

                                                                                

21  rural and low income schools, funded from DED-OESE, rural and low           

                                                                                

22  income school funds.                                                        

                                                                                

23      (i) An amount estimated at $11,123,700.00 to help schools                   

                                                                                

24  develop and implement comprehensive school reform programs,                 

                                                                                

25  funded from DED-OESE, title I and title X, comprehensive school             

                                                                                

26  reform funds.                                                               

                                                                                

27      (j) An amount estimated at  $427,000,000.00  $427,165,000.00                


                                                                                

1   to provide supplemental programs to enable educationally                    

                                                                                

2   disadvantaged children to meet challenging academic standards,              

                                                                                

3   funded from DED-OESE, title I, disadvantaged children funds.                

                                                                                

4       (k) An amount estimated at $8,246,600.00 for the purpose of                 

                                                                                

5   providing unified family literacy programs, funded from DED-OESE,           

                                                                                

6   title I, even start funds.                                                  

                                                                                

7                                                                                (l) An amount estimated at $8,953,100.00 for the purpose of                         

                                                                                

8   identifying and serving migrant children, funded from DED-OESE,             

                                                                                

9   title I, migrant education funds.                                           

                                                                                

10      (m) An amount estimated at  $22,779,000.00  $23,000,700.00 to               

                                                                                

11  promote high-quality school reading instruction for grades K-3,             

                                                                                

12  funded from DED-OESE, title I, reading first state grant funds.             

                                                                                

13      (n) An amount estimated at $13,475,000.00 for the purpose of                

                                                                                

14  implementing innovative strategies for improving student                    

                                                                                

15  achievement, funded from DED-OESE, title VI, innovative                     

                                                                                

16  strategies funds.                                                           

                                                                                

17      (o) An amount estimated at $20,696,300.00 for the purpose of                

                                                                                

18  providing high-quality extended learning opportunities, after               

                                                                                

19  school and during the summer, for children in low-performing                

                                                                                

20  schools, funded from DED-OESE, twenty-first century community               

                                                                                

21  learning center funds.  Of these funds, $25,000.00 may be used to           

                                                                                

22  support the Michigan after-school partnership.  All of the                  

                                                                                

23  following apply to the Michigan after-school partnership:                   

                                                                                

24                                                                               (i) The department shall collaborate with the Michigan family                       

                                                                                

25  independence agency to extend the duration of the Michigan                  

                                                                                

26  after-school initiative, to be renamed the Michigan after-school            

                                                                                

27  partnership and oversee its efforts to implement the policy                 


                                                                                

1   recommendations and strategic next steps identified in the                  

                                                                                

2   Michigan after-school initiative's report of December 15, 2003.             

                                                                                

3       (ii) Funds shall be used to leverage other private and public                

                                                                                

4   funding to engage the public and private sectors in building and            

                                                                                

5   sustaining high quality out-of-school-time programs and                     

                                                                                

6   resources.  The cochairs, representing the department and the               

                                                                                

7   Michigan family independence agency, shall name a fiduciary agent           

                                                                                

8   and may authorize the fiduciary to expend funds and hire people             

                                                                                

9   to accomplish the work of the Michigan after-school partnership.            

                                                                                

10      (iii) Participation in the Michigan after-school partnership                 

                                                                                

11  shall be expanded beyond the membership of the initial Michigan             

                                                                                

12  after-school initiative to increase the representation of                   

                                                                                

13  parents, youth, foundations, employers, and others with                     

                                                                                

14  experience in education, child care, after-school and youth                 

                                                                                

15  development services, and crime and violence prevention, and to             

                                                                                

16  include representation from the Michigan department of community            

                                                                                

17  health.  Each year, on or before December 31, the Michigan                  

                                                                                

18  after-school partnership shall report its progress in reaching              

                                                                                

19  the recommendations set forth in the Michigan after-school                  

                                                                                

20  initiative's report to the legislature and the governor.                    

                                                                                

21      (2) From the federal funds  appropriation  appropriated in                  

                                                                                

22  section 11, there is allocated for  2003-2004  2004-2005 to                 

                                                                                

23  districts, intermediate districts, and other eligible entities              

                                                                                

24  all available federal funding, estimated at  $5,421,800.00 each             

                                                                                

25  fiscal year  $4,821,800.00, for the following programs that are             

                                                                                

26  funded by federal grants:                                                   

                                                                                

27      (a) An amount estimated at $600,000.00 for acquired                         


                                                                                

1   immunodeficiency syndrome education grants, funded from                     

                                                                                

2   HHS-center for disease control, AIDS funding.                               

                                                                                

3       (b) An amount estimated at  $1,553,500.00  $953,500.00 for                  

                                                                                

4   emergency services to immigrants, funded from DED-OBEMLA,                   

                                                                                

5   emergency immigrant education assistance funds.                             

                                                                                

6       (c) An amount estimated at $1,468,300.00 to provide services                

                                                                                

7   to homeless children and youth, funded from DED-OVAE, homeless              

                                                                                

8   children and youth funds.                                                   

                                                                                

9       (d) An amount estimated at $1,000,000.00 for refugee children               

                                                                                

10  school impact grants, funded from HHS-ACF, refugee children                 

                                                                                

11  school impact funds.                                                        

                                                                                

12      (e) An amount estimated at $800,000.00 for serve America                    

                                                                                

13  grants, funded from the corporation for national and community              

                                                                                

14  service funds.                                                              

                                                                                

15      (3) All federal funds allocated under this section shall be                 

                                                                                

16  distributed in accordance with federal law and with flexibility             

                                                                                

17  provisions outlined in Public Law 107-116,  115 Stat. 2177  and             

                                                                                

18  in the education flexibility partnership act of 1999, Public Law            

                                                                                

19  106-25.  , 113 Stat. 41.  Notwithstanding section 17b, payments             

                                                                                

20  of federal funds to districts, intermediate districts, and other            

                                                                                

21  eligible entities under this section shall be paid on a schedule            

                                                                                

22  determined by the department.                                               

                                                                                

23      (4) As used in this section:                                                

                                                                                

24      (a) "DED" means the United States department of education.                  

                                                                                

25      (b) "DED-OBEMLA" means the DED office of bilingual education                

                                                                                

26  and minority languages affairs.                                             

                                                                                

27      (c) "DED-OESE" means the DED office of elementary and                       


                                                                                

1   secondary education.                                                        

                                                                                

2       (d) "DED-OVAE" means the DED office of vocational and adult                 

                                                                                

3   education.                                                                  

                                                                                

4       (e) "HHS" means the United States department of health and                  

                                                                                

5   human services.                                                             

                                                                                

6       (f) "HHS-ACF" means the HHS administration for children and                 

                                                                                

7   families.                                                                   

                                                                                

8       Sec. 41.  From the appropriation in section 11, there is                    

                                                                                

9   allocated an amount not to exceed $2,800,000.00 for  2003-2004              

                                                                                

10  2004-2005 to applicant districts and intermediate districts                 

                                                                                

11  offering programs of instruction for pupils of limited                      

                                                                                

12  English-speaking ability under section 1153 of the revised school           

                                                                                

13  code, MCL 380.1153.  Reimbursement shall be on a per pupil basis            

                                                                                

14  and shall be based on the number of pupils of limited                       

                                                                                

15  English-speaking ability in membership on the pupil membership              

                                                                                

16  count day.  Funds allocated under this section shall be used                

                                                                                

17  solely for instruction in speaking, reading, writing, or                    

                                                                                

18  comprehension of English.  A pupil shall not be counted under               

                                                                                

19  this section or instructed in a program under this section for              

                                                                                

20  more than 3 years.                                                          

                                                                                

21      Sec. 41a.  From the federal funds appropriated in section                   

                                                                                

22  11, there is allocated an amount estimated at $1,232,100.00 for             

                                                                                

23  2004-2005 from the United States department of education - office           

                                                                                

24  of elementary and secondary education, language acquisition state           

                                                                                

25  grant funds, to districts and intermediate districts offering               

                                                                                

26  programs of instruction for pupils of limited English-speaking              

                                                                                

27  ability.                                                                    


                                                                                

1       Sec. 51a.  (1) From the appropriation in section 11, there                  

                                                                                

2   is allocated for  2003-2004  2004-2005 an amount not to exceed              

                                                                                

3   $882,683,000.00  $906,483,000.00 from state sources and all                

                                                                                

4   available federal funding under sections 611 to 619 of part B of            

                                                                                

5   the individuals with disabilities education act,  title VI of               

                                                                                

6   Public Law 91-230, 20 U.S.C.  20 USC 1411 to 1419, estimated at             

                                                                                

7   $285,000,000.00  $284,850,000.00 plus any carryover federal                

                                                                                

8   funds from previous year appropriations.  The allocations under             

                                                                                

9   this subsection are for the purpose of reimbursing districts and            

                                                                                

10  intermediate districts for special education programs, services,            

                                                                                

11  and special education personnel as prescribed in article 3 of the           

                                                                                

12  revised school code, MCL 380.1701 to 380.1766; net tuition                  

                                                                                

13  payments made by intermediate districts to the Michigan schools             

                                                                                

14  for the deaf and blind; and special education programs and                  

                                                                                

15  services for pupils who are eligible for special education                  

                                                                                

16  programs and services according to statute or rule.  For meeting            

                                                                                

17  the costs of special education programs and services not                    

                                                                                

18  reimbursed under this article, a district or intermediate                   

                                                                                

19  district may use money in general funds or special education                

                                                                                

20  funds, not otherwise restricted, or contributions from districts            

                                                                                

21  to intermediate districts, tuition payments, gifts and                      

                                                                                

22  contributions from individuals, or federal funds that may be                

                                                                                

23  available for this purpose, as determined by the intermediate               

                                                                                

24  district plan prepared pursuant to article 3 of the revised                 

                                                                                

25  school code, MCL 380.1701 to 380.1766.  All federal funds                   

                                                                                

26  allocated under this section in excess of those allocated under             

                                                                                

27  this section for 2002-2003 may be distributed in accordance with            


                                                                                

1   the flexible funding provisions of the individuals with                     

                                                                                

2   disabilities education act, title VI of Public Law 91-230,                  

                                                                                

3   including, but not limited to, 34 C.F.R. 300.234 and 300.235.               

                                                                                

4   Notwithstanding section 17b, payments of federal funds to                   

                                                                                

5   districts, intermediate districts, and other eligible entities              

                                                                                

6   under this section shall be paid on a schedule determined by the            

                                                                                

7   department.                                                                 

                                                                                

8       (2) From the funds allocated under subsection (1), there is                 

                                                                                

9   allocated for  2003-2004  2004-2005 the amount necessary,                   

                                                                                

10  estimated at  $160,500,000.00  $169,700,000.00 for 2003-2004, for           

                                                                                

11  payments toward reimbursing districts and intermediate districts            

                                                                                

12  for 28.6138% of total approved costs of special education,                  

                                                                                

13  excluding costs reimbursed under section 53a, and 70.4165% of               

                                                                                

14  total approved costs of special education transportation.                   

                                                                                

15  Allocations under this subsection shall be made as follows:                 

                                                                                

16      (a) The initial amount allocated to a district under this                   

                                                                                

17  subsection toward fulfilling the specified percentages shall be             

                                                                                

18  calculated by multiplying the district's special education pupil            

                                                                                

19  membership, excluding pupils described in subsection (12), times            

                                                                                

20  the sum of the foundation allowance under section 20 of the                 

                                                                                

21  pupil's district of residence plus the amount of the district's             

                                                                                

22  per pupil allocation under section 20j(2), not to exceed                    

                                                                                

23  $6,500.00 adjusted by the dollar amount of the difference between           

                                                                                

24  the basic foundation allowance under section 20 for the current             

                                                                                

25  fiscal year and $5,000.00 minus $200.00, or, for a special                  

                                                                                

26  education pupil in membership in a district that is a public                

                                                                                

27  school academy or university school, times an amount equal to the           


                                                                                

1   amount per membership pupil calculated under section 20(6).  For            

                                                                                

2   an intermediate district, the amount allocated under this                   

                                                                                

3   subdivision toward fulfilling the specified percentages shall be            

                                                                                

4   an amount per special education membership pupil, excluding                 

                                                                                

5   pupils described in subsection (12), and shall be calculated in             

                                                                                

6   the same manner as for a district, using the foundation allowance           

                                                                                

7   under section 20 of the pupil's district of residence, not to               

                                                                                

8   exceed $6,500.00 adjusted by the dollar amount of the difference            

                                                                                

9   between the basic foundation allowance under section 20 for the             

                                                                                

10  current fiscal year and $5,000.00 minus $200.00, and that                   

                                                                                

11  district's per pupil allocation under section 20j(2).                       

                                                                                

12      (b) After the allocations under subdivision (a), districts                  

                                                                                

13  and intermediate districts for which the payments under                     

                                                                                

14  subdivision (a) do not fulfill the specified percentages shall be           

                                                                                

15  paid the amount necessary to achieve the specified percentages              

                                                                                

16  for the district or intermediate district.                                  

                                                                                

17      (3) From the funds allocated under subsection (1), there is                 

                                                                                

18  allocated for  2003-2004  2004-2005 the amount necessary,                   

                                                                                

19  estimated at  $2,600,000.00  $2,400,000.00, to make payments to             

                                                                                

20  districts and intermediate districts under this subsection.  If             

                                                                                

21  the amount allocated to a district or intermediate district for a           

                                                                                

22  fiscal year under subsection (2)(b) is less than the sum of the             

                                                                                

23  amounts allocated to the district or intermediate district for              

                                                                                

24  1996-97 under sections 52 and 58, there is allocated to the                 

                                                                                

25  district or intermediate district for the fiscal year an amount             

                                                                                

26  equal to that difference, adjusted by applying the same proration           

                                                                                

27  factor that was used in the distribution of funds under section             


                                                                                

1   52 in 1996-97 as adjusted to the district's or intermediate                 

                                                                                

2   district's necessary costs of special education used in                     

                                                                                

3   calculations for the fiscal year.  This adjustment is to reflect            

                                                                                

4   reductions in special education program operations between                  

                                                                                

5   1996-97 and subsequent fiscal years.  Adjustments for reductions            

                                                                                

6   in special education program operations shall be made in a manner           

                                                                                

7   determined by the department and shall include adjustments for              

                                                                                

8   program shifts.                                                             

                                                                                

9       (4) If the department determines that the sum of the amounts                

                                                                                

10  allocated for a fiscal year to a district or intermediate                   

                                                                                

11  district under subsection (2)(a) and (b) is not sufficient to               

                                                                                

12  fulfill the specified percentages in subsection (2), then the               

                                                                                

13  shortfall shall be paid to the district or intermediate district            

                                                                                

14  during the fiscal year beginning on the October 1 following the             

                                                                                

15  determination and payments under subsection (3) shall be adjusted           

                                                                                

16  as necessary.  If the department determines that the sum of the             

                                                                                

17  amounts allocated for a fiscal year to a district or intermediate           

                                                                                

18  district under subsection (2)(a) and (b) exceeds the sum of the             

                                                                                

19  amount necessary to fulfill the specified percentages in                    

                                                                                

20  subsection (2), then the department shall deduct the amount of              

                                                                                

21  the excess from the district's or intermediate district's                   

                                                                                

22  payments under this act for the fiscal year beginning on the                

                                                                                

23  October 1 following the determination and payments under                    

                                                                                

24  subsection (3) shall be adjusted as necessary.  However, if the             

                                                                                

25  amount allocated under subsection (2)(a) in itself exceeds the              

                                                                                

26  amount necessary to fulfill the specified percentages in                    

                                                                                

27  subsection (2), there shall be no deduction under this                      


                                                                                

1   subsection.                                                                 

                                                                                

2       (5) State funds shall be allocated on a total approved cost                 

                                                                                

3   basis.  Federal funds shall be allocated under applicable federal           

                                                                                

4   requirements, except that an amount not to exceed $3,500,000.00             

                                                                                

5   may be allocated by the department for  2003-2004  2004-2005 to             

                                                                                

6   districts or intermediate districts on a competitive grant basis            

                                                                                

7   for programs, equipment, and services that the department                   

                                                                                

8   determines to be designed to benefit or improve special education           

                                                                                

9   on a statewide scale.                                                       

                                                                                

10      (6) From the amount allocated in subsection (1), there is                   

                                                                                

11  allocated an amount not to exceed $2,200,000.00 for  2003-2004              

                                                                                

12  2004-2005 to reimburse 100% of the net increase in necessary                

                                                                                

13  costs incurred by a district or intermediate district in                    

                                                                                

14  implementing the revisions in the administrative rules for                  

                                                                                

15  special education that became effective on July 1, 1987.  As used           

                                                                                

16  in this subsection, "net increase in necessary costs" means the             

                                                                                

17  necessary additional costs incurred solely because of new or                

                                                                                

18  revised requirements in the administrative rules minus cost                 

                                                                                

19  savings permitted in implementing the revised rules.  Net                   

                                                                                

20  increase in necessary costs shall be determined in a manner                 

                                                                                

21  specified by the department.                                                

                                                                                

22      (7) For purposes of this article, all of the following                      

                                                                                

23  apply:                                                                      

                                                                                

24      (a) "Total approved costs of special education" shall be                    

                                                                                

25  determined in a manner specified by the department and may                  

                                                                                

26  include indirect costs, but shall not exceed 115% of approved               

                                                                                

27  direct costs for section 52 and section 53a programs.  The total            


                                                                                

1   approved costs include salary and other compensation for all                

                                                                                

2   approved special education personnel for the program, including             

                                                                                

3   payments for social security and medicare and public school                 

                                                                                

4   employee retirement system contributions.  The total approved               

                                                                                

5   costs do not include salaries or other compensation paid to                 

                                                                                

6   administrative personnel who are not special education personnel            

                                                                                

7   as defined in section 6 of the revised school code, MCL 380.6.              

                                                                                

8   Costs reimbursed by federal funds, other than those federal funds           

                                                                                

9   included in the allocation made under this article, are not                 

                                                                                

10  included.  Special education approved personnel not utilized full           

                                                                                

11  time in the evaluation of students or in the delivery of special            

                                                                                

12  education programs, ancillary, and other related services shall             

                                                                                

13  be reimbursed under this section only for that portion of time              

                                                                                

14  actually spent providing these programs and services, with the              

                                                                                

15  exception of special education programs and services provided to            

                                                                                

16  youth placed in child caring institutions or juvenile detention             

                                                                                

17  programs approved by the department to provide an on-grounds                

                                                                                

18  education program.                                                          

                                                                                

19      (b) Reimbursement for ancillary and other related services,                 

                                                                                

20  as defined by R 340.1701c of the Michigan administrative code,              

                                                                                

21  shall not be provided when those services are covered by and                

                                                                                

22  available through private group health insurance carriers or                

                                                                                

23  federal reimbursed program sources unless the department and                

                                                                                

24  district or intermediate district agree otherwise and that                  

                                                                                

25  agreement is approved by the state budget director.  Expenses,              

                                                                                

26  other than the incidental expense of filing, shall not be borne             

                                                                                

27  by the parent.  In addition, the filing of claims shall not delay           


                                                                                

1   the education of a pupil.  A district or intermediate district              

                                                                                

2   shall be responsible for payment of a deductible amount and for             

                                                                                

3   an advance payment required until the time a claim is paid.                 

                                                                                

4       (8) From the allocation in subsection (1), there is allocated               

                                                                                

5   for  2003-2004  2004-2005 an amount not to exceed $15,313,900.00            

                                                                                

6   to intermediate districts.  The payment under this subsection to            

                                                                                

7   each intermediate district shall be equal to the amount of the              

                                                                                

8   1996-97 allocation to the intermediate district under subsection            

                                                                                

9   (6) of this section as in effect for 1996-97.                               

                                                                                

10      (9) A pupil who is enrolled in a full-time special education                

                                                                                

11  program conducted or administered by an intermediate district or            

                                                                                

12  a pupil who is enrolled in the Michigan schools for the deaf and            

                                                                                

13  blind shall not be included in the membership count of a                    

                                                                                

14  district, but shall be counted in membership in the intermediate            

                                                                                

15  district of residence.                                                      

                                                                                

16      (10) Special education personnel transferred from 1 district                

                                                                                

17  to another to implement the revised school code shall be entitled           

                                                                                

18  to the rights, benefits, and tenure to which the person would               

                                                                                

19  otherwise be entitled had that person been employed by the                  

                                                                                

20  receiving district originally.                                              

                                                                                

21      (11) If a district or intermediate district uses money                      

                                                                                

22  received under this section for a purpose other than the purpose            

                                                                                

23  or purposes for which the money is allocated, the department may            

                                                                                

24  require the district or intermediate district to refund the                 

                                                                                

25  amount of money received.  Money that is refunded shall be                  

                                                                                

26  deposited in the state treasury to the credit of the state school           

                                                                                

27  aid fund.                                                                   


                                                                                

1       (12) From the funds allocated in subsection (1), there is                   

                                                                                

2   allocated for  2003-2004  2004-2005 the amount necessary,                   

                                                                                

3   estimated at  $6,300,000.00  $6,800,000.00, to pay the foundation           

                                                                                

4   allowances for pupils described in this subsection.  The                    

                                                                                

5   allocation to a district under this subsection shall be                     

                                                                                

6   calculated by multiplying the number of pupils described in this            

                                                                                

7   subsection who are counted in membership in the district times              

                                                                                

8   the sum of the foundation allowance under section 20 of the                 

                                                                                

9   pupil's district of residence plus the amount of the district's             

                                                                                

10  per pupil allocation under section 20j(2), not to exceed                    

                                                                                

11  $6,500.00 adjusted by the dollar amount of the difference between           

                                                                                

12  the basic foundation allowance under section 20 for the current             

                                                                                

13  fiscal year and $5,000.00 minus $200.00, or, for a pupil                    

                                                                                

14  described in this subsection who is counted in membership in a              

                                                                                

15  district that is a public school academy or university school,              

                                                                                

16  times an amount equal to the amount per membership pupil under              

                                                                                

17  section 20(6).  The allocation to an intermediate district under            

                                                                                

18  this subsection 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 that district's per pupil                  

                                                                                

24  allocation under section 20j(2).  This subsection applies to all            

                                                                                

25  of the following pupils:                                                    

                                                                                

26      (a) Pupils described in section 53a.                                        

                                                                                

27      (b) Pupils counted in membership in an intermediate district                


                                                                                

1   who are not special education pupils and are served by the                  

                                                                                

2   intermediate district in a juvenile detention or child caring               

                                                                                

3   facility.                                                                   

                                                                                

4       (c) Emotionally impaired pupils counted in membership by an                 

                                                                                

5   intermediate district and provided educational services by the              

                                                                                

6   department of community health.                                             

                                                                                

7       (13) After payments under subsections (2) and (12) and                      

                                                                                

8   section 51c, the remaining expenditures from the allocation in              

                                                                                

9   subsection (1) shall be made in the following order:                        

                                                                                

10      (a) 100% of the reimbursement required under section 53a.                   

                                                                                

11      (b) 100% of the reimbursement required under subsection (6).                

                                                                                

12      (c) 100% of the payment required under section 54.                          

                                                                                

13      (d) 100% of the payment required under subsection (3).                      

                                                                                

14      (e) 100% of the payment required under subsection (8).                      

                                                                                

15      (f) 100% of the payments under section 56.                                  

                                                                                

16      (14) The allocations under subsection (2), subsection (3),                  

                                                                                

17  and subsection (12) shall be allocations to intermediate                    

                                                                                

18  districts only and shall not be allocations to districts, but               

                                                                                

19  instead shall be calculations used only to determine the state              

                                                                                

20  payments under section 22b.                                                 

                                                                                

21      Sec. 51c.  As required by the court in the consolidated                     

                                                                                

22  cases known as Durant v State of Michigan, Michigan supreme court           

                                                                                

23  docket no. 104458-104492, from the allocation under section                 

                                                                                

24  51a(1), there is allocated for  2003-2004  2004-2005 the amount             

                                                                                

25  necessary, estimated at  $644,400,000.00  $658,700,000.00, for              

                                                                                

26  payments to reimburse districts for 28.6138% of total approved              

                                                                                

27  costs of special education excluding costs reimbursed under                 


                                                                                

1   section 53a, and 70.4165% of total approved costs of special                

                                                                                

2   education transportation.  Funds allocated under this section               

                                                                                

3   that are not expended in the state fiscal year for which they               

                                                                                

4   were allocated, as determined by the department, may be used to             

                                                                                

5   supplement the allocations under sections 22a and 22b in order to           

                                                                                

6   fully fund those calculated allocations for the same fiscal                 

                                                                                

7   year.                                                                       

                                                                                

8       Sec. 51d.  (1) From the federal funds appropriated in                       

                                                                                

9   section 11, there is allocated for  2003-2004  2004-2005 all                

                                                                                

10  available federal funding, estimated at $60,500,000.00, for                 

                                                                                

11  special education programs that are funded by federal grants.               

                                                                                

12  All federal funds allocated under this section shall be                     

                                                                                

13  distributed in accordance with federal law.  Notwithstanding                

                                                                                

14  section 17b, payments of federal funds to districts, intermediate           

                                                                                

15  districts, and other eligible entities under this section shall             

                                                                                

16  be paid on a schedule determined by the department.                         

                                                                                

17      (2) From the federal funds allocated under subsection (1),                  

                                                                                

18  the following amounts are allocated for  2003-2004  2004-2005:              

                                                                                

19      (a) An amount estimated at $16,000,000.00 for handicapped                   

                                                                                

20  infants and toddlers, funded from DED-OSERS, handicapped infants            

                                                                                

21  and toddlers funds.                                                         

                                                                                

22      (b) An amount estimated at $13,500,000.00 for preschool                     

                                                                                

23  grants (Public Law 94-142), funded from DED-OSERS, handicapped              

                                                                                

24  preschool incentive funds.                                                  

                                                                                

25      (c) An amount estimated at $31,000,000.00 for special                       

                                                                                

26  education programs funded by DED-OSERS, handicapped program,                

                                                                                

27  individuals with disabilities act funds.                                    


                                                                                

1       (3) As used in this section, "DED-OSERS" means the United                   

                                                                                

2   States department of education office of special education and              

                                                                                

3   rehabilitative services.                                                    

                                                                                

4       Sec. 53a.  (1) For districts, reimbursement for pupils                      

                                                                                

5   described in subsection (2)  , reimbursement  shall be 100% of              

                                                                                

6   the total approved costs of operating special education programs            

                                                                                

7   and services approved by the department and included in the                 

                                                                                

8   intermediate district plan adopted pursuant to article 3 of the             

                                                                                

9   revised school code, MCL 380.1701 to 380.1766, minus the                    

                                                                                

10  district's foundation allowance calculated under section 20, and            

                                                                                

11  minus the amount calculated for the district under section 20j.             

                                                                                

12  For intermediate districts, reimbursement for pupils described in           

                                                                                

13  section (2) shall be calculated in the same manner as for a                 

                                                                                

14  district, using the foundation allowance under section 20 of the            

                                                                                

15  pupil's district of residence, not to exceed $6,500.00 adjusted             

                                                                                

16  by the dollar amount of the difference between the basic                    

                                                                                

17  foundation allowance under section 20 for the current fiscal year           

                                                                                

18  and $5,000.00, minus $200.00, and under section 20j.                        

                                                                                

19      (2) Reimbursement under subsection (1) is for the following                 

                                                                                

20  special education pupils:                                                   

                                                                                

21      (a) Pupils assigned to a district or intermediate district                  

                                                                                

22  through the community placement program of the courts or a state            

                                                                                

23  agency, if the pupil was a resident of another intermediate                 

                                                                                

24  district at the time the pupil came under the jurisdiction of the           

                                                                                

25  court or a state agency.                                                    

                                                                                

26      (b) Pupils who are residents of institutions operated by the                

                                                                                

27  department of community health.                                             


                                                                                

1       (c) Pupils who are former residents of department of                        

                                                                                

2   community health institutions for the developmentally disabled              

                                                                                

3   who are placed in community settings other than the pupil's                 

                                                                                

4   home.                                                                       

                                                                                

5       (d) Pupils enrolled in a department-approved on-grounds                     

                                                                                

6   educational program longer than 180 days, but not longer than 233           

                                                                                

7   days, at a residential child care institution, if the child care            

                                                                                

8   institution offered in 1991-92 an on-grounds educational program            

                                                                                

9   longer than 180 days but not longer than 233 days.                          

                                                                                

10      (e) Pupils placed in a district by a parent for the purpose                 

                                                                                

11  of seeking a suitable home, if the parent does not reside in the            

                                                                                

12  same intermediate district as the district in which the pupil is            

                                                                                

13  placed.                                                                     

                                                                                

14      (3) Only those costs that are clearly and directly                          

                                                                                

15  attributable to educational programs for pupils described in                

                                                                                

16  subsection (2), and that would not have been incurred if the                

                                                                                

17  pupils were not being educated in a district or intermediate                

                                                                                

18  district, are reimbursable under this section.                              

                                                                                

19      (4) The costs of transportation shall be funded under this                  

                                                                                

20  section and shall not be reimbursed under section 58.                       

                                                                                

21      (5) Not more than $12,800,000.00 of the allocation for                      

                                                                                

22  2003-2004  2004-2005 in section 51a(1) shall be allocated under            

                                                                                

23  this section.                                                               

                                                                                

24      Sec. 54.  In addition to the aid received under section 52,                 

                                                                                

25  each intermediate district shall receive an amount per pupil for            

                                                                                

26  each pupil in attendance at the Michigan schools for the deaf and           

                                                                                

27  blind.  The amount shall be proportionate to the total                      


                                                                                

1   instructional cost at each school.  Not more than $1,688,000.00             

                                                                                

2   of the allocation for  2003-2004  2004-2005 in section 51a(1)               

                                                                                

3   shall be allocated under this section.                                      

                                                                                

4       Sec. 56.  (1) For the purposes of this section:                             

                                                                                

5       (a) "Membership" means for a particular fiscal year the total               

                                                                                

6   membership for the immediately preceding fiscal year of the                 

                                                                                

7   intermediate district and the districts constituent to the                  

                                                                                

8   intermediate district.                                                      

                                                                                

9       (b) "Millage levied" means the millage levied for special                   

                                                                                

10  education pursuant to part 30 of the revised school code,                   

                                                                                

11  MCL 380.1711 to 380.1743, including a levy for debt service                 

                                                                                

12  obligations.                                                                

                                                                                

13      (c) "Taxable value" means the total taxable value of the                    

                                                                                

14  districts constituent to an intermediate district, except that if           

                                                                                

15  a district has elected not to come under part 30 of the revised             

                                                                                

16  school code, MCL 380.1711 to 380.1743, membership and taxable               

                                                                                

17  value of the district shall not be included in the membership and           

                                                                                

18  taxable value of the intermediate district.                                 

                                                                                

19      (2) From the allocation under section 51a(1), there is                      

                                                                                

20  allocated an amount not to exceed $36,881,100.00 for  2003-2004             

                                                                                

21  2004-2005 to reimburse intermediate districts levying millages              

                                                                                

22  for special education pursuant to part 30 of the revised school             

                                                                                

23  code, MCL 380.1711 to 380.1743.  The purpose, use, and                      

                                                                                

24  expenditure of the reimbursement shall be limited as if the funds           

                                                                                

25  were generated by these millages and governed by the intermediate           

                                                                                

26  district plan adopted pursuant to article 3 of the revised school           

                                                                                

27  code, MCL 380.1701 to 380.1766.  As a condition of receiving                


                                                                                

1   funds under this section, an intermediate district distributing             

                                                                                

2   any portion of special education millage funds to its constituent           

                                                                                

3   districts shall submit for departmental approval and implement a            

                                                                                

4   distribution plan.                                                          

                                                                                

5       (3) Reimbursement for those millages levied in  2002-2003                   

                                                                                

6   2003-2004 shall be made in  2003-2004  2004-2005 at an amount per           

                                                                                

7   2002-2003  2003-2004 membership pupil computed by subtracting              

                                                                                

8   from  $132,275.00 the 2002-2003  $133,400.00 the 2003-2004                  

                                                                                

9   taxable value behind each membership pupil and multiplying the              

                                                                                

10  resulting difference by the  2002-2003  2003-2004 millage                   

                                                                                

11  levied.                                                                     

                                                                                

12      Sec. 57.  (1) From the appropriation in section 11, there is                

                                                                                

13  allocated an amount not to exceed $50,000.00 for  2003-2004                 

                                                                                

14  2004-2005 to applicant intermediate districts that provide                  

                                                                                

15  support services for the education of advanced and accelerated              

                                                                                

16  pupils.  An intermediate district is entitled to 75% of the                 

                                                                                

17  actual salary, but not to exceed $25,000.00 reimbursement for an            

                                                                                

18  individual salary, of a support services teacher approved by the            

                                                                                

19  department, and not to exceed $4,000.00 reimbursement for                   

                                                                                

20  expenditures to support program costs, excluding in-county travel           

                                                                                

21  and salary, as approved by the department.                                  

                                                                                

22      (2) From the appropriation in section 11, there is allocated                

                                                                                

23  an amount not to exceed $0.00 for  2003-2004  2004-2005 to                  

                                                                                

24  support part of the cost of summer institutes for advanced and              

                                                                                

25  accelerated students.  This amount shall be contracted to                   

                                                                                

26  applicant intermediate districts in cooperation with a local                

                                                                                

27  institution of higher education and shall be coordinated by the             


                                                                                

1   department.                                                                 

                                                                                

2       (3) From the appropriation in section 11, there is allocated                

                                                                                

3   an amount not to exceed $200,000.00 for  2003-2004  2004-2005 for           

                                                                                

4   the development and operation of comprehensive programs for                 

                                                                                

5   advanced and accelerated pupils.  An eligible district or                   

                                                                                

6   consortium of districts shall receive an amount not to exceed               

                                                                                

7   $100.00 per K-12 pupil for up to 5% of the district's or                    

                                                                                

8   consortium's K-12 membership for the immediately preceding fiscal           

                                                                                

9   year with a minimum total grant of $6,000.00.  Funding shall be             

                                                                                

10  provided in the following order:  the per pupil allotment, and              

                                                                                

11  then the minimum total grant of $6,000.00 to individual                     

                                                                                

12  districts.  An intermediate district may act as the fiscal agent            

                                                                                

13  for a consortium of districts.  In order to be eligible for                 

                                                                                

14  funding under this subsection, the district or consortium of                

                                                                                

15  districts shall submit each year a current 3-year plan for                  

                                                                                

16  operating a comprehensive program for advanced and accelerated              

                                                                                

17  pupils and the district or consortium shall demonstrate to the              

                                                                                

18  department that the district or consortium will contribute                  

                                                                                

19  matching funds of at least $50.00 per K-12 pupil.  The plan or              

                                                                                

20  revised plan shall be developed in accordance with criteria                 

                                                                                

21  established by the department and shall be submitted to the                 

                                                                                

22  department for approval.  Within the criteria, the department               

                                                                                

23  shall encourage the development of consortia among districts of             

                                                                                

24  less than 5,000 memberships.                                                

                                                                                

25      Sec. 61a.  (1) From the appropriation in section 11, there                  

                                                                                

26  is allocated an amount not to exceed  $30,000,000.00 for                    

                                                                                

27  2003-2004  $28,000,000.00 for 2004-2005 to reimburse on an added            


                                                                                

1   cost basis districts, except for a district that served as the              

                                                                                

2   fiscal agent for a vocational education consortium in the 1993-94           

                                                                                

3   school year, and secondary area vocational-technical education              

                                                                                

4   centers for secondary-level vocational-technical education                  

                                                                                

5   programs, including parenthood education programs, according to             

                                                                                

6   rules approved by the superintendent.  Applications for                     

                                                                                

7   participation in the programs shall be submitted in the form                

                                                                                

8   prescribed by the department.  The department shall determine the           

                                                                                

9   added cost for each vocational-technical program area.  The                 

                                                                                

10  allocation of added cost funds shall be based on the type of                

                                                                                

11  vocational-technical programs provided, the number of pupils                

                                                                                

12  enrolled, and the length of the training period provided, and               

                                                                                

13  shall not exceed 75% of the added cost of any program.  With the            

                                                                                

14  approval of the department, the board of a district maintaining a           

                                                                                

15  secondary vocational-technical education program may offer the              

                                                                                

16  program for the period from the close of the school year until              

                                                                                

17  September 1.  The program shall use existing facilities and shall           

                                                                                

18  be operated as prescribed by rules promulgated by the                       

                                                                                

19  superintendent.                                                             

                                                                                

20      (2) Except for a district that served as the fiscal agent for               

                                                                                

21  a vocational education consortium in the 1993-94 school year,               

                                                                                

22  districts and intermediate districts shall be reimbursed for                

                                                                                

23  local vocational administration, shared time vocational                     

                                                                                

24  administration, and career education planning district                      

                                                                                

25  vocational-technical administration.  The definition of what                

                                                                                

26  constitutes administration and reimbursement shall be pursuant to           

                                                                                

27  guidelines adopted by the superintendent.  Not more than                    


                                                                                

1   $800,000.00 of the allocation in subsection (1) shall be                    

                                                                                

2   distributed under this subsection.                                          

                                                                                

3       (3) From the allocation in subsection (1), there is allocated               

                                                                                

4   an amount not to exceed $388,700.00 for  2003-2004  2004-2005 to            

                                                                                

5   intermediate districts with constituent districts that had                  

                                                                                

6   combined state and local revenue per membership pupil in the                

                                                                                

7   1994-95 state fiscal year of $6,500.00 or more, served as a                 

                                                                                

8   fiscal agent for a state board designated area vocational                   

                                                                                

9   education center in the 1993-94 school year, and had an                     

                                                                                

10  adjustment made to their 1994-95 combined state and local revenue           

                                                                                

11  per membership pupil pursuant to section 20d.  The payment under            

                                                                                

12  this subsection to the intermediate district shall equal the                

                                                                                

13  amount of the allocation to the intermediate district for 1996-97           

                                                                                

14  under this subsection.                                                      

                                                                                

15      Sec. 62.  (1) For the purposes of this section:                             

                                                                                

16      (a) "Membership" means for a particular fiscal year the total               

                                                                                

17  membership for the immediately preceding fiscal year of the                 

                                                                                

18  intermediate district and the districts constituent to the                  

                                                                                

19  intermediate district or the total membership for the immediately           

                                                                                

20  preceding fiscal year of the area vocational-technical program.             

                                                                                

21      (b) "Millage levied" means the millage levied for area                      

                                                                                

22  vocational-technical education pursuant to sections 681 to 690 of           

                                                                                

23  the revised school code, MCL 380.681 to 380.690, including a levy           

                                                                                

24  for debt service obligations incurred as the result of borrowing            

                                                                                

25  for capital outlay projects and in meeting capital projects fund            

                                                                                

26  requirements of area vocational-technical education.                        

                                                                                

27      (c) "Taxable value" means the total taxable value of the                    


                                                                                

1   districts constituent to an intermediate district or area                   

                                                                                

2   vocational-technical education program, except that if a district           

                                                                                

3   has elected not to come under sections 681 to 690 of the revised            

                                                                                

4   school code, MCL 380.681 to 380.690, the membership and taxable             

                                                                                

5   value of that district shall not be included in the membership              

                                                                                

6   and taxable value of the intermediate district.  However, the               

                                                                                

7   membership and taxable value of a district that has elected not             

                                                                                

8   to come under sections 681 to 690 of the revised school code,               

                                                                                

9   MCL 380.681 to 380.690, shall be included in the membership and             

                                                                                

10  taxable value of the intermediate district if the district meets            

                                                                                

11  both of the following:                                                      

                                                                                

12                                                                               (i) The district operates the area vocational-technical                             

                                                                                

13  education program pursuant to a contract with the intermediate              

                                                                                

14  district.                                                                   

                                                                                

15      (ii) The district contributes an annual amount to the                        

                                                                                

16  operation of the program that is commensurate with the revenue              

                                                                                

17  that would have been raised for operation of the program if                 

                                                                                

18  millage were levied in the district for the program under                   

                                                                                

19  sections 681 to 690 of the revised school code, MCL 380.681 to              

                                                                                

20  380.690.                                                                    

                                                                                

21      (2) From the appropriation in section 11, there is allocated                

                                                                                

22  an amount not to exceed $9,000,000.00 for  2003-2004  2004-2005             

                                                                                

23  to reimburse intermediate districts and area vocational-technical           

                                                                                

24  education programs established under section 690(3) of the                  

                                                                                

25  revised school code, MCL 380.690, levying millages for area                 

                                                                                

26  vocational-technical education pursuant to sections 681 to 690 of           

                                                                                

27  the revised school code, MCL 380.681 to 380.690.  The purpose,              


                                                                                

1   use, and expenditure of the reimbursement shall be limited as if            

                                                                                

2   the funds were generated by those millages.                                 

                                                                                

3       (3) Reimbursement for the millages levied in  2002-2003                     

                                                                                

4   2003-2004 shall be made in  2003-2004  2004-2005 at an amount per           

                                                                                

5   2002-2003  2003-2004 membership pupil computed by subtracting              

                                                                                

6   from  $137,700.00 the 2002-2003  $142,200.00 the 2003-2004                  

                                                                                

7   taxable value behind each membership pupil and multiplying the              

                                                                                

8   resulting difference by the  2002-2003  2003-2004 millage                   

                                                                                

9   levied.                                                                     

                                                                                

10      Sec. 74.  (1) From the amount appropriated in section 11,                   

                                                                                

11  there is allocated an amount not to exceed $1,625,000.00 for                

                                                                                

12  2003-2004  2004-2005 for the purposes of subsections (2) and               

                                                                                

13  (3).                                                                        

                                                                                

14      (2) From the allocation in subsection (1), there is allocated               

                                                                                

15  each fiscal year the amount necessary for payments to state                 

                                                                                

16  supported colleges or universities and intermediate districts               

                                                                                

17  providing school bus driver safety instruction or driver skills             

                                                                                

18  road tests pursuant to sections 51 and 52 of the pupil                      

                                                                                

19  transportation act, 1990 PA 187, MCL 257.1851 and 257.1852.  The            

                                                                                

20  payments shall be in an amount determined by the department not             

                                                                                

21  to exceed 75% of the actual cost of instruction and driver                  

                                                                                

22  compensation for each public or nonpublic school bus driver                 

                                                                                

23  attending a course of instruction.  For the purpose of computing            

                                                                                

24  compensation, the hourly rate allowed each school bus driver                

                                                                                

25  shall not exceed the hourly rate received for driving a school              

                                                                                

26  bus.  Reimbursement compensating the driver during the course of            

                                                                                

27  instruction or driver skills road tests shall be made by the                


                                                                                

1   department to the college or university or intermediate district            

                                                                                

2   providing the course of instruction.                                        

                                                                                

3       (3) From the allocation in subsection (1), there is allocated               

                                                                                

4   each fiscal year the amount necessary to pay the reasonable costs           

                                                                                

5   of nonspecial education auxiliary services transportation                   

                                                                                

6   provided pursuant to section 1323 of the revised school code,               

                                                                                

7   MCL 380.1323.  Districts funded under this subsection shall not             

                                                                                

8   receive funding under any other section of this act for                     

                                                                                

9   nonspecial education auxiliary services transportation.                     

                                                                                

10      Sec. 81.  (1) Except as otherwise provided in this section,                 

                                                                                

11  from the appropriation in section 11, there is allocated for                

                                                                                

12  2003-2004  2004-2005 to the intermediate districts the sum                 

                                                                                

13  necessary, but not to exceed  $91,702,100.00  $79,202,100.00, to            

                                                                                

14  provide state aid to intermediate districts under this section.             

                                                                                

15  Except as otherwise provided in this section, there shall be                

                                                                                

16  allocated to each intermediate district for  2003-2004  2004-2005           

                                                                                

17  an amount equal to  96.5%  83.3% of the amount appropriated under           

                                                                                

18  this subsection for 2002-2003 in 2002 PA 521, before any                    

                                                                                

19  reduction made for 2002-2003 under section 11(3).  Funding                  

                                                                                

20  provided under this section shall be used to comply with                    

                                                                                

21  requirements of this act and the revised school code that are               

                                                                                

22  applicable to intermediate districts, and for which funding is              

                                                                                

23  not provided elsewhere in this act, and to provide technical                

                                                                                

24  assistance to districts as authorized by the intermediate school            

                                                                                

25  board.                                                                      

                                                                                

26      (2) From the allocation in subsection (1), there is allocated               

                                                                                

27  to an intermediate district, formed by the consolidation or                 


                                                                                

1   annexation of 2 or more intermediate districts or the attachment            

                                                                                

2   of a total intermediate district to another intermediate school             

                                                                                

3   district or the annexation of all of the constituent K-12                   

                                                                                

4   districts of a previously existing intermediate school district             

                                                                                

5   which has disorganized, an additional allotment of $3,500.00 each           

                                                                                

6   fiscal year for each intermediate district included in the new              

                                                                                

7   intermediate district for 3 years following consolidation,                  

                                                                                

8   annexation, or attachment.                                                  

                                                                                

9       (3) During a fiscal year, the department shall not increase                 

                                                                                

10  an intermediate district's allocation under subsection (1)                  

                                                                                

11  because of an adjustment made by the department during the fiscal           

                                                                                

12  year in the intermediate district's taxable value for a prior               

                                                                                

13  year.  Instead, the department shall report the adjustment and              

                                                                                

14  the estimated amount of the increase to the house and senate                

                                                                                

15  fiscal agencies and the state budget director not later than                

                                                                                

16  June 1 of the fiscal year, and the legislature shall appropriate            

                                                                                

17  money for the adjustment in the next succeeding fiscal year.                

                                                                                

18      (4) In order to receive funding under this section, an                      

                                                                                

19  intermediate district shall demonstrate to the satisfaction of              

                                                                                

20  the department that the intermediate district employs at least 1            

                                                                                

21  person who is trained in pupil counting procedures, rules, and              

                                                                                

22  regulations.                                                                

                                                                                

23      Sec. 94a.  (1) There is created within the office of the                    

                                                                                

24  state budget director in the department of management and budget            

                                                                                

25  the center for educational performance and information.  The                

                                                                                

26  center shall do all of the following:                                       

                                                                                

27      (a) Coordinate the collection of all data required by state                 


                                                                                

1   and federal law from all entities receiving funds under this                

                                                                                

2   act.                                                                        

                                                                                

3       (b) Collect data in the most efficient manner possible in                   

                                                                                

4   order to reduce the administrative burden on reporting entities.            

                                                                                

5       (c) Establish procedures to ensure the validity and                         

                                                                                

6   reliability of the data and the collection process.                         

                                                                                

7       (d) Develop state and model local data collection policies,                 

                                                                                

8   including, but not limited to, policies that ensure the privacy             

                                                                                

9   of individual student data.  State privacy policies shall ensure            

                                                                                

10  that student social security numbers are not released to the                

                                                                                

11  public for any purpose.                                                     

                                                                                

12      (e) Provide data in a useful manner to allow state and local                

                                                                                

13  policymakers to make informed policy decisions.                             

                                                                                

14      (f) Provide reports to the citizens of this state to allow                  

                                                                                

15  them to assess allocation of resources and the return on their              

                                                                                

16  investment in the education system of this state.                           

                                                                                

17      (g) Assist all entities receiving funds under this act in                   

                                                                                

18  complying with audits performed according to generally accepted             

                                                                                

19  accounting procedures.                                                      

                                                                                

20      (h) Not later than January 1, 2005, and of each succeeding                  

                                                                                

21  fiscal year, provide an analysis of each district's academic and            

                                                                                

22  financial performance that contains at least the same information           

                                                                                

23  and detail as that provided in 2002-2003 under the contract in              

                                                                                

24  effect for that fiscal year with Standard and Poor's school                 

                                                                                

25  evaluation services.                                                        

                                                                                

26      (i)  (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  $1,500,000.00 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 for  2003-2004  2004-2005 to provide a grant to the             

                                                                                

8   Michigan virtual university for the development, implementation,            

                                                                                

9   and operation of the Michigan virtual high school and to fund               

                                                                                

10  other purposes described in this section.  In addition, from the            

                                                                                

11  federal funds appropriated in section 11, there is allocated for            

                                                                                

12  2003-2004  2004-2005 an amount estimated at $2,250,000.00 from             

                                                                                

13  DED-OESE, title II, improving teacher quality funds.                        

                                                                                

14      (2) The Michigan virtual high school shall have the following               

                                                                                

15  goals:                                                                      

                                                                                

16      (a) Significantly expand curricular offerings for high                      

                                                                                

17  schools across this state through agreements with districts or              

                                                                                

18  licenses from other recognized providers.  The Michigan virtual             

                                                                                

19  university shall explore options for providing rigorous civics              

                                                                                

20  curricula online.                                                           

                                                                                

21      (b) Create statewide instructional models using interactive                 

                                                                                

22  multimedia tools delivered by electronic means, including, but              

                                                                                

23  not limited to, the internet, digital broadcast, or satellite               

                                                                                

24  network, for distributed learning at the high school level.                 

                                                                                

25      (c) Provide pupils with opportunities to develop skills and                 

                                                                                

26  competencies through on-line learning.                                      

                                                                                

27      (d) Offer teachers opportunities to learn new skills and                    


                                                                                

1   strategies for developing and delivering instructional services.            

                                                                                

2       (e) Accelerate this state's ability to respond to current and               

                                                                                

3   emerging educational demands.                                               

                                                                                

4       (f) Grant high school diplomas through a dual enrollment                    

                                                                                

5   method with districts.                                                      

                                                                                

6       (g) Act as a broker for college level equivalent courses, as                

                                                                                

7   defined in section 1471 of the revised school code, MCL 380.1471,           

                                                                                

8   and dual enrollment courses from postsecondary education                    

                                                                                

9   institutions.                                                               

                                                                                

10      (3) The Michigan virtual high school course offerings shall                 

                                                                                

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

                                                                                

12      (a) Information technology courses.                                         

                                                                                

13      (b) College level equivalent courses, as defined in section                 

                                                                                

14  1471 of the revised school code, MCL 380.1471.                              

                                                                                

15      (c) Courses and dual enrollment opportunities.                              

                                                                                

16      (d) Programs and services for at-risk pupils.                               

                                                                                

17      (e) General education development test preparation courses                  

                                                                                

18  for adjudicated youth.                                                      

                                                                                

19      (f) Special interest courses.                                               

                                                                                

20      (g) Professional development programs and services for                      

                                                                                

21  teachers.                                                                   

                                                                                

22      (4) The state education agency shall sign a memorandum of                   

                                                                                

23  understanding with the Michigan virtual university regarding the            

                                                                                

24  DED-OESE, title II, improving teacher quality funds as provided             

                                                                                

25  under this subsection.  The memorandum of understanding under               

                                                                                

26  this subsection shall require that the Michigan virtual                     

                                                                                

27  university coordinate the following activities related to                   


                                                                                

1   DED-OESE, title II, improving teacher quality funds in accordance           

                                                                                

2   with federal law:                                                           

                                                                                

3       (a) Develop, and assist districts in the development and use                

                                                                                

4   of, proven, innovative strategies to deliver intensive                      

                                                                                

5   professional development programs that are both cost-effective              

                                                                                

6   and easily accessible, such as strategies that involve delivery             

                                                                                

7   through the use of technology, peer networks, and distance                  

                                                                                

8   learning.                                                                   

                                                                                

9       (b) Encourage and support the training of teachers and                      

                                                                                

10  administrators to effectively integrate technology into curricula           

                                                                                

11  and instruction.                                                            

                                                                                

12      (c) Coordinate the activities of eligible partnerships that                 

                                                                                

13  include higher education institutions for the purposes of                   

                                                                                

14  providing professional development activities for teachers,                 

                                                                                

15  paraprofessionals, and principals as defined in federal law.                

                                                                                

16      (5) If a home-schooled or nonpublic school student is a                     

                                                                                

17  resident of a district that subscribes to services provided by              

                                                                                

18  the Michigan virtual university, the student may use the services           

                                                                                

19  provided by the Michigan virtual university to the district                 

                                                                                

20  without charge to the student beyond what is charged to a                   

                                                                                

21  district pupil using the same services.                                     

                                                                                

22      (6) From the allocations in subsection (1), the amount                      

                                                                                

23  necessary, not to exceed $1,250,000.00, shall be used to provide            

                                                                                

24  online professional development for classroom teachers.  This               

                                                                                

25  allocation is intended to be for the  first  second of 3 years.             

                                                                                

26  These funds may be used for designing and building courses,                 

                                                                                

27  marketing and outreach, workshops and evaluation, content                   


                                                                                

1   acquisition, technical assistance, project management, and                  

                                                                                

2   customer support.  The Michigan virtual university shall offer at           

                                                                                

3   least 5 hours of online professional development for classroom              

                                                                                

4   teachers under this section in  2003-2004  2004-2005 without                

                                                                                

5   charge to the teachers or to districts or intermediate                      

                                                                                

6   districts.                                                                  

                                                                                

7       (7) A district or intermediate district may require a                       

                                                                                

8   full-time teacher to participate in at least 5 hours of online              

                                                                                

9   professional development provided by the Michigan virtual                   

                                                                                

10  university under subsection (6).  Five hours of this professional           

                                                                                

11  development shall be considered to be part of the 51 hours                  

                                                                                

12  allowed to be counted as hours of pupil instruction under section           

                                                                                

13  101(10).                                                                    

                                                                                

14      (8) As used in this section:                                                

                                                                                

15      (a) "DED-OESE" means the United States department of                        

                                                                                

16  education office of elementary and secondary education.                     

                                                                                

17      (b) "State education agency" means the department.                          

                                                                                

18      Sec. 98b.  (1) From the school aid stabilization fund                       

                                                                                

19  created in section 11a, there is appropriated and allocated for             

                                                                                

20  2003-2004  2004-2005 an amount not to exceed  $22,000,000.00               

                                                                                

21  $5,000,000.00 for the freedom to learn program described in this            

                                                                                

22  section.  In addition, from the federal funds appropriated in               

                                                                                

23  section 11 there is allocated for  2003-2004 the following                  

                                                                                

24  federal funds:                                                              

                                                                                

25      (a) From the federal funds appropriated in section 11, an                   

                                                                                

26  amount estimated at $10,343,200.00 from the competitive grants of           

                                                                                

27  DED-OESE, title II, educational technology grants funds.                    


                                                                                

1       (b) An amount estimated at $7,000,000.00 from funds carried                 

                                                                                

2   forward from 2002-2003 from unexpended DED-OESE, title II,                  

                                                                                

3   educational technology grants funds  2004-2005 an amount not to             

                                                                                

4   exceed $10,343,200.00 from the competitive grants of DED-OESE,              

                                                                                

5   title II, educational technology grants funds, and an amount not            

                                                                                

6   to exceed $7,000,000.00 from funds carried forward from 2003-2004           

                                                                                

7   from unexpended DED-OESE, title II, educational technology grants           

                                                                                

8   funds.                                                                      

                                                                                

9       (2) The allocations in subsection (1) shall be used to                      

                                                                                

10  develop, implement, and operate the freedom to learn program and            

                                                                                

11  make program grants.  The goal of the program is to achieve                 

                                                                                

12  one-to-one access to wireless technology for K-12 pupils through            

                                                                                

13  statewide and local public-private partnerships.  To implement              

                                                                                

14  the program, the state education agency shall sign a memorandum             

                                                                                

15  of understanding with the Michigan virtual university that                  

                                                                                

16  provides for joint administration of program grants under this              

                                                                                

17  subsection.  By December 1,  2003  2004, the Michigan virtual               

                                                                                

18  university and the state education agency shall make grants to              

                                                                                

19  districts as described in this section.  In awarding the grants,            

                                                                                

20  the Michigan virtual university and the state education agency              

                                                                                

21  shall give priority to applications that demonstrate that the               

                                                                                

22  district's program will meet all of the following:                          

                                                                                

23      (a) Will be ready for implementation by January 1,  2004                    

                                                                                

24  2005 and will have begun professional development on technology             

                                                                                

25  integration in the classroom before January 1,  2004  2005.                 

                                                                                

26      (b) Will utilize state structure and resources for                          

                                                                                

27  professional development, as coordinated by the Michigan virtual            


                                                                                

1   university.                                                                 

                                                                                

2       (c) Will opt to participate in the statewide partnership                    

                                                                                

3   described in subsection (6).                                                

                                                                                

4       (3) The amount of program grants to districts is estimated at               

                                                                                

5   $250.00 per pupil in membership in grade 6 in  2003-2004                    

                                                                                

6   2004-2005, or in another grade allowed in this section.  The                

                                                                                

7   state education agency and the Michigan virtual university shall            

                                                                                

8   establish grant criteria that maximize the distribution of                  

                                                                                

9   federal funds to achieve the $250.00 per pupil in districts that            

                                                                                

10  qualify for federal funds.  To qualify for a grant under this               

                                                                                

11  section, a district shall submit an application to the state                

                                                                                

12  education agency and the Michigan virtual university and complete           

                                                                                

13  the application process established by the state education agency           

                                                                                

14  and the Michigan virtual university.  The application shall                 

                                                                                

15  include at least all of the following:                                      

                                                                                

16      (a) If the district is applying for federal funds, how the                  

                                                                                

17  district will meet the requirements of the competitive grants               

                                                                                

18  under DED-OESE, title II, part D.                                           

                                                                                

19      (b) How the district will provide the opportunity for each                  

                                                                                

20  pupil in membership in grade 6 to receive a wireless computing              

                                                                                

21  device.  If the district has already achieved one-to-one wireless           

                                                                                

22  access in grade 6 or if the district's school building grade                

                                                                                

23  configuration makes implementation of the program for grade 6               

                                                                                

24  impractical, the district may apply for a grant for the next                

                                                                                

25  highest grade.  If the district does not have a grade 6 or                  

                                                                                

26  higher, the district may apply for funding for the next lowest              

                                                                                

27  grade level.  If the district operates 1 or more schools that are           


                                                                                

1   not meeting adequate yearly progress, as determined by the                  

                                                                                

2   department, and that contain grade 6, the district may apply for            

                                                                                

3   funding for a school building-wide program for 1 or more of those           

                                                                                

4   schools.  A public school academy that does not offer a grade               

                                                                                

5   higher than grade 5 may apply to receive a grant under this                 

                                                                                

6   section for pupils in the highest grade offered by the public               

                                                                                

7   school academy.                                                             

                                                                                

8       (c) The district shall submit a plan describing the uses of                 

                                                                                

9   the grant funds.  The plan shall describe a plan for professional           

                                                                                

10  development on technology integration, content and curriculum,              

                                                                                

11  and local partnerships with the other districts and                         

                                                                                

12  representatives from businesses, industry, and higher education.            

                                                                                

13  The plan shall include at least the following:                              

                                                                                

14                                                                               (i) The academic achievement goals, which may include, but                          

                                                                                

15  are not limited to, goals related to mathematics, science, and              

                                                                                

16  language arts.                                                              

                                                                                

17      (ii) The engagement goals, which may include, but are not                    

                                                                                

18  limited to, goals related to retention rates, dropout rates,                

                                                                                

19  detentions, and suspensions.                                                

                                                                                

20      (iii) A commitment that at least 25% of the total local                      

                                                                                

21  budget for the program will be used on professional development             

                                                                                

22  on technology integration in the classroom.                                 

                                                                                

23      (d) A 3- to 5-year plan or funding model for increasing the                 

                                                                                

24  share that is borne locally of the expenditures for one-to-one              

                                                                                

25  wireless access.  The Michigan virtual university shall provide             

                                                                                

26  districts with sample local plans and funding models for the                

                                                                                

27  purposes of this subdivision and with information on available              


                                                                                

1   federal and private resources.                                              

                                                                                

2       (e) How the district will amend its local technology plan as                

                                                                                

3   required under state and federal law to reflect the program under           

                                                                                

4   this section.                                                               

                                                                                

5       (4) A district that receives a grant under this section shall               

                                                                                

6   provide at least a $25.00 per pupil match for grant money                   

                                                                                

7   received under this section from local public or private                    

                                                                                

8   resources.                                                                  

                                                                                

9       (5) The amount of a grant under this section to a single                    

                                                                                

10  district for a fiscal year shall not exceed 25% of the total                

                                                                                

11  amount available for grants under this section for that fiscal              

                                                                                

12  year.                                                                       

                                                                                

13      (6)  (5)  A district that received money under section 98 in                

                                                                                

14  2002-2003 for a wireless technology grant is eligible to receive            

                                                                                

15  a grant under this section.  The funding under subsection (1)(b)            

                                                                                

16  shall be used first to provide the grants under this subsection.            

                                                                                

17  A district described in this subsection shall apply to the                  

                                                                                

18  Michigan virtual university and the state education agency for a            

                                                                                

19  grant in the form and manner prescribed by the department.  An              

                                                                                

20  application under this section is not subject to the requirements           

                                                                                

21  of subsection (3) if the application demonstrates that the                  

                                                                                

22  program 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)  (6) By October 15, 2003, the  The department of                        

                                                                                

4   management and budget shall establish a statewide public-private            

                                                                                

5   partnership to implement the program.  The department of                    

                                                                                

6   management and budget shall select a program partner through a              

                                                                                

7   request for proposals process for a total learning technology               

                                                                                

8   package that includes, but is not limited to, a wireless laptop,            

                                                                                

9   software, professional development, service, and support, and for           

                                                                                

10  management by a single point of contact individual responsible              

                                                                                

11  for the overall implementation.  The proposal selected shall                

                                                                                

12  achieve significant efficiencies and economies of scale and be              

                                                                                

13  interoperable with existing technologies.  The private partner              

                                                                                

14  selected in the request for proposals process to partner with the           

                                                                                

15  state must possess all of the following:                                    

                                                                                

16      (a) Experience in the development and successful                            

                                                                                

17  implementation of large-scale, school-based wireless technology             

                                                                                

18  projects.                                                                   

                                                                                

19      (b) Proven technical ability to deliver a total solutions                   

                                                                                

20  package of learning technology for elementary and secondary                 

                                                                                

21  students and teachers.                                                      

                                                                                

22      (c) Results-based education solutions to increase student                   

                                                                                

23  achievement and advance professional development for teachers.              

                                                                                

24      (d) Ability to coordinate, utilize, and expand existing                     

                                                                                

25  technology infrastructures and professional development delivery            

                                                                                

26  systems within school districts and regions.                                

                                                                                

27      (e) Ability to provide a wireless computing device that is                  


                                                                                

1   able to be connected to the wireless network and is able to                 

                                                                                

2   access a school's preexisting local network and the internet both           

                                                                                

3   wirelessly in the school and through dial-up or other remote                

                                                                                

4   connection from the home or elsewhere outside school.                       

                                                                                

5       (8)  (7)  A district may elect to purchase or lease wireless                

                                                                                

6   computing devices from a vendor other than the statewide                    

                                                                                

7   partnership described in subsection  (6)  (7) if the Michigan               

                                                                                

8   virtual university determines that the vendor meets the                     

                                                                                

9   requirements of subdivisions (a) to (d) of subsection  (6)  (7)             

                                                                                

10  and the vendor is identified in the district's grant                        

                                                                                

11  application.                                                                

                                                                                

12      (9)  (8)  The state education agency shall sign a memorandum                

                                                                                

13  of understanding with the Michigan virtual university regarding             

                                                                                

14  DED-OESE, title II, educational technology grants, as provided              

                                                                                

15  under this subsection.  The Michigan virtual university shall               

                                                                                

16  coordinate activities described in this subsection with the                 

                                                                                

17  freedom to learn grants described under this section.  The                  

                                                                                

18  memorandum of understanding shall require that the Michigan                 

                                                                                

19  virtual university coordinate the following state activities                

                                                                                

20  related to DED-OESE, title II, educational technology grants in             

                                                                                

21  accordance with federal law:                                                

                                                                                

22      (a) Assist in the development of innovative strategies for                  

                                                                                

23  the delivery of specialized or rigorous academic courses and                

                                                                                

24  curricula through the use of technology, including distance                 

                                                                                

25  learning technologies.                                                      

                                                                                

26      (b) Establish and support public-private initiatives for the                

                                                                                

27  acquisition of educational technology for students in high-need             


                                                                                

1   districts.                                                                  

                                                                                

2       (10)  (9)  Funds allocated under this section that are not                  

                                                                                

3   expended in the state fiscal year for which they were allocated             

                                                                                

4   may be carried forward to a subsequent state fiscal year.                   

                                                                                

5       (11)  (10)  The state education agency and the Michigan                     

                                                                                

6   virtual university shall complete the memoranda of understanding            

                                                                                

7   required under this section within 60 days after the effective              

                                                                                

8   date of the amendatory act that added this subsection.  It is the           

                                                                                

9   intent of the legislature that all plans or applications                    

                                                                                

10  submitted by the state education agency to the United States                

                                                                                

11  department of education relating to the distribution of federal             

                                                                                

12  funds under this section are for the purposes described in this             

                                                                                

13  section.                                                                    

                                                                                

14      (12)  (11)  The state education agency shall ensure that the                

                                                                                

15  program goals and plans for the freedom to learn program are                

                                                                                

16  contained in the state technology plan required by federal law.             

                                                                                

17      (13)  (12)  From the funds allocated under this section, an                 

                                                                                

18  amount not to exceed $4,000,000.00 is allocated to the Michigan             

                                                                                

19  virtual university to be used for statewide activities, as                  

                                                                                

20  follows:                                                                    

                                                                                

21      (a) An amount estimated at $2,700,000.00 to develop a                       

                                                                                

22  professional development network in partnership with other                  

                                                                                

23  statewide entities for professional development on technology               

                                                                                

24  integration in the classroom.                                               

                                                                                

25      (b) An amount estimated at $250,000.00 for development of a                 

                                                                                

26  content resource package that will include on-line coursework               

                                                                                

27  content.                                                                    


                                                                                

1       (c) An amount estimated at $250,000.00 to develop or purchase               

                                                                                

2   an on-line assessment system to supplement the Michigan education           

                                                                                

3   assessment program tests and provide immediate feedback on pupil            

                                                                                

4   achievement.  The assessment system shall include high-quality              

                                                                                

5   tests aligned to the state curriculum framework and tests that              

                                                                                

6   can be customized by teachers and integrated with on-line                   

                                                                                

7   instructional resources.  The Michigan virtual university and the           

                                                                                

8   state education agency shall work in partnership  with the                  

                                                                                

9   department of treasury  to implement the assessment program.  The           

                                                                                

10  state education agency shall give first priority in implementing            

                                                                                

11  the assessment systems to districts not meeting adequately yearly           

                                                                                

12  progress requirements as established by the federal no child left           

                                                                                

13  behind act and to schools participating in grant programs under             

                                                                                

14  this section.                                                               

                                                                                

15      (d) An amount not to exceed $800,000.00 for comprehensive                   

                                                                                

16  statewide evaluation of current and future projects under this              

                                                                                

17  section and for statewide administration of the freedom to learn            

                                                                                

18  program.                                                                    

                                                                                

19      (14)  (13)  The Michigan virtual university is encouraged to                

                                                                                

20  work in partnership with Ferris state university in performing              

                                                                                

21  the functions under subsection  (12)  (13).                                 

                                                                                

22      (15)  (14)  Notwithstanding section 17b, payments under this                

                                                                                

23  section may be made pursuant to an agreement with the                       

                                                                                

24  department.                                                                 

                                                                                

25      (16)  (15)  It is the intent of the legislature that this                   

                                                                                

26  state will seek to raise private funds for the current and future           

                                                                                

27  funding of the freedom to learn program under this section and              


                                                                                

1   all of the program components.                                              

                                                                                

2       (17)  (16)  As used in this section:                                        

                                                                                

3       (a) "DED-OESE" means the United States department of                        

                                                                                

4   education office of elementary and secondary education.                     

                                                                                

5       (b) "State education agency" means the department.                          

                                                                                

6       Sec. 99.  (1) From the  appropriations  state school aid                    

                                                                                

7   fund money appropriated in section 11, there is allocated an                

                                                                                

8   amount not to exceed  $2,500,000.00 for 2003-2004  $2,416,000.00            

                                                                                

9   for 2004-2005 and from the general fund appropriation in section            

                                                                                

10  11, there is allocated an amount not to exceed $84,000.00 for               

                                                                                

11  2004-2005 for implementing the comprehensive master plan for                

                                                                                

12  mathematics and science centers developed by the department and             

                                                                                

13  approved by the state board on August 8, 2002.  In addition, from           

                                                                                

14  the federal funds appropriated in section 11, there is allocated            

                                                                                

15  an amount estimated at $2,487,700.00 from DED-OESE, title II,               

                                                                                

16  mathematics and science partnership grants.                                 

                                                                                

17      (2) Within a service area designated locally, approved by the               

                                                                                

18  department, and consistent with the master plan described in                

                                                                                

19  subsection (1), an established mathematics and science center               

                                                                                

20  shall address  4  2 or more of the following 6 basic services, as           

                                                                                

21  described in the master plan, to constituent districts and                  

                                                                                

22  communities:  leadership, pupil services, curriculum support,               

                                                                                

23  community involvement, professional development, and resource               

                                                                                

24  clearinghouse services.                                                     

                                                                                

25      (3) The department shall not award a state grant under this                 

                                                                                

26  section to more than 1 mathematics and science center located in            

                                                                                

27  a designated region as prescribed in the 2002 master plan unless            


                                                                                

1   each of the grants serves a distinct target population or                   

                                                                                

2   provides a service that does not duplicate another program in the           

                                                                                

3   designated region.                                                          

                                                                                

4       (4) As part of the technical assistance process, the                        

                                                                                

5   department shall provide minimum standard guidelines that may be            

                                                                                

6   used by the mathematics and science center for providing fair               

                                                                                

7   access for qualified pupils and professional staff as prescribed            

                                                                                

8   in this section.                                                            

                                                                                

9       (5) Allocations under this section to support the activities                

                                                                                

10  and programs of mathematics and science centers shall be                    

                                                                                

11  continuing support grants to all 33 established mathematics and             

                                                                                

12  science centers.  Each established mathematics and science center           

                                                                                

13  that was funded in  2002-2003  2003-2004 shall receive state                

                                                                                

14  funding in an amount equal to  24.43% of  the amount it received            

                                                                                

15  under this section for  2002-2003 in 2002 PA 521, before any                

                                                                                

16  reduction made for 2002-2003 under section 11(3)  2003-2004If            

                                                                                

17  a center declines state funding or a center closes, the remaining           

                                                                                

18  money available under this section shall be distributed on a pro            

                                                                                

19  rata basis to the remaining centers, as determined by the                   

                                                                                

20  department.                                                                 

                                                                                

21      (6) In order to receive state funds under this section, a                   

                                                                                

22  grant recipient shall allow access for the department or the                

                                                                                

23  department's designee to audit all records related to the program           

                                                                                

24  for which it receives such funds.  The grant recipient shall                

                                                                                

25  reimburse the state for all disallowances found in the audit.               

                                                                                

26      (7) Not later than September 30, 2007, the department shall                 

                                                                                

27  reevaluate and update the comprehensive master plan described in            


                                                                                

1   subsection (1).  , including any recommendations for upgrading              

                                                                                

2   satellite extensions to full centers.                                       

                                                                                

3       (8) The department shall give preference in awarding the                    

                                                                                

4   federal grants allocated in subsection (1) to eligible existing             

                                                                                

5   mathematics and science centers.                                            

                                                                                

6       (9) In order to receive state funds under this section, a                   

                                                                                

7   grant recipient shall provide at least a 10% local match from               

                                                                                

8   local public or private resources for the funds received under              

                                                                                

9   this section.                                                               

                                                                                

10      (10) As used in this section:                                               

                                                                                

11      (a) "DED" means the United States department of education.                  

                                                                                

12      (b) "DED-OESE" means the DED office of elementary and                       

                                                                                

13  secondary education.                                                        

                                                                                

14      Sec. 101.  (1) To be eligible to receive state aid under                    

                                                                                

15  this act, not later than the fifth Wednesday after the pupil                

                                                                                

16  membership count day and not later than the fifth Wednesday after           

                                                                                

17  the supplemental count day, each district superintendent through            

                                                                                

18  the secretary of the district's board shall file with the                   

                                                                                

19  intermediate superintendent a certified and sworn copy of the               

                                                                                

20  number of pupils enrolled and in regular daily attendance in the            

                                                                                

21  district as of the pupil membership count day and as of the                 

                                                                                

22  supplemental count day, as applicable, for the current school               

                                                                                

23  year.  In addition, a district maintaining school during the                

                                                                                

24  entire year, as provided under section 1561 of the revised school           

                                                                                

25  code, MCL 380.1561, shall file with the intermediate                        

                                                                                

26  superintendent a certified and sworn copy of the number of pupils           

                                                                                

27  enrolled and in regular daily attendance in the district for the            


                                                                                

1   current school year pursuant to rules promulgated by the                    

                                                                                

2   superintendent.  Not later than the seventh Wednesday after the             

                                                                                

3   pupil membership count day and not later than the seventh                   

                                                                                

4   Wednesday after the supplemental count day, the intermediate                

                                                                                

5   district shall transmit to the center  the data filed by  revised           

                                                                                

6   data, as applicable, for each of its constituent districts.  If a           

                                                                                

7   district fails to file the sworn and certified copy with the                

                                                                                

8   intermediate superintendent in a timely manner, as required under           

                                                                                

9   this subsection, the intermediate district shall notify the                 

                                                                                

10  department and state aid due to be distributed under this act               

                                                                                

11  shall be withheld from the defaulting district immediately,                 

                                                                                

12  beginning with the next payment after the failure and continuing            

                                                                                

13  with each payment until the district complies with this                     

                                                                                

14  subsection.  If an intermediate district fails to transmit the              

                                                                                

15  data in its possession in a timely and accurate manner to the               

                                                                                

16  department  center, as required under this subsection, state aid           

                                                                                

17  due to be distributed under this act shall be withheld from the             

                                                                                

18  defaulting intermediate district immediately, beginning with the            

                                                                                

19  next payment after the failure and continuing with each payment             

                                                                                

20  until the intermediate district complies with this subsection.              

                                                                                

21  If a district or intermediate district does not comply with this            

                                                                                

22  subsection by the end of the fiscal year, the district or                   

                                                                                

23  intermediate district forfeits the amount withheld.  A person who           

                                                                                

24  willfully falsifies a figure or statement in the certified and              

                                                                                

25  sworn copy of enrollment shall be punished in the manner                    

                                                                                

26  prescribed by section 161.                                                  

                                                                                

27      (2) To be eligible to receive state aid under this act, not                 


                                                                                

1   later than the twenty-fourth Wednesday after the pupil membership           

                                                                                

2   count day and not later than the twenty-fourth Wednesday after              

                                                                                

3   the supplemental count day, an intermediate district shall submit           

                                                                                

4   to the center, in a form and manner prescribed by the center, the           

                                                                                

5   audited enrollment and attendance data for the pupils of its                

                                                                                

6   constituent districts and of the intermediate district.  If an              

                                                                                

7   intermediate district fails to transmit the audited data as                 

                                                                                

8   required under this subsection, state aid due to be distributed             

                                                                                

9   under this act shall be withheld from the defaulting intermediate           

                                                                                

10  district immediately, beginning with the next payment after the             

                                                                                

11  failure and continuing with each payment until the intermediate             

                                                                                

12  district complies with this subsection.  If an intermediate                 

                                                                                

13  district does not comply with this subsection by the end of the             

                                                                                

14  fiscal year, the intermediate district forfeits the amount                  

                                                                                

15  withheld.                                                                   

                                                                                

16      (3) Except as otherwise provided in this section, each                      

                                                                                

17  district shall provide at least 1,098 hours of pupil                        

                                                                                

18  instruction.  Except as otherwise provided in this act, a                   

                                                                                

19  district failing to comply with the required minimum hours of               

                                                                                

20  pupil instruction under this subsection shall forfeit from its              

                                                                                

21  total state aid allocation an amount determined by applying a               

                                                                                

22  ratio of the number of hours the district was in noncompliance in           

                                                                                

23  relation to the required minimum number of hours under this                 

                                                                                

24  subsection.  Not later than August 1, the board of each district            

                                                                                

25  shall certify to the department the number of hours of pupil                

                                                                                

26  instruction in the previous school year.  If the district did not           

                                                                                

27  provide at least the required minimum number of hours of pupil              


    Senate Bill No. 1069 as amended March 31, 2004                              

1   instruction under this subsection, the deduction of state aid               

                                                                                

2   shall be made in the following fiscal year from the first payment           

                                                                                

3   of state school aid.  A district is not subject to forfeiture of            

                                                                                

4   funds under this subsection for a fiscal year in which a                    

                                                                                

5   forfeiture was already imposed under subsection (6).  Hours lost            

                                                                                

6   because of strikes or teachers' conferences shall not be counted            

                                                                                

7   as days or hours of pupil instruction.  A district not having at            

                                                                                

8   least 75% of the district's membership in attendance on any day             

                                                                                

9   of pupil instruction shall receive state aid in that proportion             

                                                                                

10  of 1/180 that the actual percent of attendance bears to the                 

                                                                                

11  specified percentage.  The superintendent shall promulgate rules            

                                                                                

12  for the implementation of this subsection.                                  

                                                                                

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

                                                                                

14  first 30 hours for which pupil instruction is not provided                  

                                                                                

15  because of conditions not within the control of school                      

                                                                                

16  authorities, such as severe storms, fires, epidemics, or health             

                                                                                

17  conditions as defined by the city, county, or state health                  

                                                                                

18  authorities, shall be counted as hours of pupil instruction.  In            

                                                                                

19  addition, for  2002-2003  2003-2004 only, the department shall              

                                                                                

20  count  as days of pupil instruction not more than 5 additional              

                                                                                

21  days, and shall count  as hours of pupil instruction not more               

                                                                                

22  than  30  20 additional hours  ,  for which pupil instruction was           

                                                                                

23  not provided in a  district from April 3, 2003 to April 11, 2003            

                                                                                

24  due to a storm  school in a district due to structural roof and             

                                                                                

25  truss damage that required the school to be closedBeginning in           

                                                                                

26  2004-2005, the department shall count as hours of pupil                     

                                                                                

27  instruction for a fiscal year not more than 30 <<additional>> hours for which    


    Senate Bill No. 1069 as amended March 31, 2004                              

1   pupil instruction is not provided in a district after April 1 of            

                                                                                

2   the applicable school year due to <<unusual and extenuating occurrences resulting from>> conditions not within the                                      

3   control of school authorities such as those conditions described            

                                                                                

4   in this subsection. Subsequent such hours shall not be counted as           

                                                                                

5   hours of pupil instruction.                                                 

                                                                                

6       (5) A district shall not forfeit part of its state aid                      

                                                                                

7   appropriation because it adopts or has in existence an                      

                                                                                

8   alternative scheduling program for pupils in kindergarten if the            

                                                                                

9   program provides at least the number of hours required under                

                                                                                

10  subsection (3) for a full-time equated membership for a pupil in            

                                                                                

11  kindergarten as provided under section 6(4).                                

                                                                                

12      (6) Not later than April 15 of each fiscal year, the board of               

                                                                                

13  each district shall certify to the department the planned number            

                                                                                

14  of hours of pupil instruction in the district for the school year           

                                                                                

15  ending in the fiscal year.  In addition to any other penalty or             

                                                                                

16  forfeiture under this section, if at any time the department                

                                                                                

17  determines that 1 or more of the following has occurred in a                

                                                                                

18  district, the district shall forfeit in the current fiscal year             

                                                                                

19  beginning in the next payment to be calculated by the department            

                                                                                

20  a proportion of the funds due to the district under this act that           

                                                                                

21  is equal to the proportion below the required minimum number of             

                                                                                

22  hours of pupil instruction under subsection (3), as specified in            

                                                                                

23  the following:                                                              

                                                                                

24      (a) The district fails to operate its schools for at least                  

                                                                                

25  the required minimum number of hours of pupil instruction under             

                                                                                

26  subsection (3) in a school year, including hours counted under              

                                                                                

27  subsection (4).                                                             


                                                                                

1       (b) The board of the district takes formal action not to                    

                                                                                

2   operate its schools for at least the required minimum number of             

                                                                                

3   hours of pupil instruction under subsection (3) in a school year,           

                                                                                

4   including hours counted under subsection (4).                               

                                                                                

5       (7) In providing the minimum number of hours of pupil                       

                                                                                

6   instruction required under subsection (3), a district shall use             

                                                                                

7   the following guidelines, and a district shall maintain records             

                                                                                

8   to substantiate its compliance with the following guidelines:               

                                                                                

9       (a) Except as otherwise provided in this subsection, a pupil                

                                                                                

10  must be scheduled for at least the required minimum number of               

                                                                                

11  hours of instruction, excluding study halls, or at least the sum            

                                                                                

12  of 90 hours plus the required minimum number of hours of                    

                                                                                

13  instruction, including up to 2 study halls.                                 

                                                                                

14      (b) The time a pupil is assigned to any tutorial activity in                

                                                                                

15  a block schedule may be considered instructional time, unless               

                                                                                

16  that time is determined in an audit to be a study hall period.              

                                                                                

17      (c)  A  Except as otherwise provided in this subdivision, a                 

                                                                                

18  pupil in grades 9 to 12 for whom a reduced schedule is determined           

                                                                                

19  to be in the individual pupil's best educational interest must be           

                                                                                

20  scheduled for a number of hours equal to at least 80% of the                

                                                                                

21  required minimum number of hours of pupil instruction to be                 

                                                                                

22  considered a full-time equivalent pupil.  A pupil in grades 9 to            

                                                                                

23  12 who is scheduled in a 4-block schedule may receive a reduced             

                                                                                

24  schedule under this subsection if the pupil is scheduled for a              

                                                                                

25  number of hours equal to at least 75% of the required minimum               

                                                                                

26  number of hours of pupil instruction to be considered a full-time           

                                                                                

27  equivalent pupil.                                                           


                                                                                

1       (d) If a pupil in grades 9 to 12 who is enrolled in a                       

                                                                                

2   cooperative education program or a special education pupil cannot           

                                                                                

3   receive the required minimum number of hours of pupil instruction           

                                                                                

4   solely because of travel time between instructional sites during            

                                                                                

5   the school day, that travel time, up to a maximum of 3 hours per            

                                                                                

6   school week, shall be considered to be pupil instruction time for           

                                                                                

7   the purpose of determining whether the pupil is receiving the               

                                                                                

8   required minimum number of hours of pupil instruction.  However,            

                                                                                

9   if a district demonstrates to the satisfaction of the department            

                                                                                

10  that the travel time limitation under this subdivision would                

                                                                                

11  create undue costs or hardship to the district, the department              

                                                                                

12  may consider more travel time to be pupil instruction time for              

                                                                                

13  this purpose.                                                               

                                                                                

14      (8) The department shall apply the guidelines under                         

                                                                                

15  subsection (7) in calculating the full-time equivalency of                  

                                                                                

16  pupils.                                                                     

                                                                                

17      (9) Upon application by the district for a particular fiscal                

                                                                                

18  year, the superintendent may waive for a district the minimum               

                                                                                

19  number of hours of pupil instruction requirement of subsection              

                                                                                

20  (3) for a department-approved alternative education program.  If            

                                                                                

21  a district applies for and receives a waiver under this                     

                                                                                

22  subsection and complies with the terms of the waiver, for the               

                                                                                

23  fiscal year covered by the waiver the district is not subject to            

                                                                                

24  forfeiture under this section for the specific program covered by           

                                                                                

25  the waiver.                                                                 

                                                                                

26      (10) A district may count up to 51 hours of qualifying                      

                                                                                

27  professional development for teachers, including the 5 hours of             


                                                                                

1   online professional development provided by the Michigan virtual            

                                                                                

2   university under section 98, as hours of pupil instruction.  A              

                                                                                

3   district that elects to use this exception shall notify the                 

                                                                                

4   department of its election.  As used in this subsection,                    

                                                                                

5   "qualifying professional development" means professional                    

                                                                                

6   development that is focused on 1 or more of the following:                  

                                                                                

7       (a) Achieving or improving adequate yearly progress as                      

                                                                                

8   defined under the no child left behind act of 2001, Public Law              

                                                                                

9   107-110.                                                                    

                                                                                

10      (b) Achieving accreditation or improving a school's                         

                                                                                

11  accreditation status under section 1280 of the revised school               

                                                                                

12  code, MCL 380.1280.                                                         

                                                                                

13      (c) Achieving highly qualified teacher status as defined                    

                                                                                

14  under the no child left behind act of 2001, Public Law 107-110.             

                                                                                

15      (d) Maintaining teacher certification.                                      

                                                                                

16      Sec. 104a.  (1) In order to receive state aid under this                    

                                                                                

17  act, a district shall comply with this section and shall                    

                                                                                

18  administer state assessments to high school pupils in the subject           

                                                                                

19  areas of  communications skills  English language arts,                     

                                                                                

20  mathematics, science, and social studies.  If the department  of            

                                                                                

21  treasury or the Michigan assessment governing board, as                     

                                                                                

22  applicable,  determines that it would be consistent with the                

                                                                                

23  purposes of this section, the department  of treasury or the                

                                                                                

24  Michigan assessment governing board, as applicable,  may                    

                                                                                

25  designate the grade 11 Michigan education assessment program                

                                                                                

26  tests or the ACT/ACT work keys tests as the assessments to be               

                                                                                

27  used for the purposes of this section.  The district shall                  


                                                                                

1   include on the pupil's high school transcript all of the                    

                                                                                

2   following:                                                                  

                                                                                

3       (a) For each high school graduate who has completed a subject               

                                                                                

4   area assessment under this section, the pupil's scaled score on             

                                                                                

5   the assessment.                                                             

                                                                                

6       (b) If the pupil's scaled score on a subject area assessment                

                                                                                

7   falls within the range required under subsection (2) for a                  

                                                                                

8   category established under subsection (2), an indication that the           

                                                                                

9   pupil has achieved state endorsement for that subject area.                 

                                                                                

10      (c) The number of school days the pupil was in attendance at                

                                                                                

11  school each school year during high school and the total number             

                                                                                

12  of school days in session for each of those school years.                   

                                                                                

13      (2) The department  of treasury  shall develop scaled scores                

                                                                                

14  for reporting subject area assessment results for each of the               

                                                                                

15  subject areas under this section.  The department  of treasury              

                                                                                

16  shall establish 3 categories for each subject area indicating               

                                                                                

17  basic competency, above average, and outstanding, and shall                 

                                                                                

18  establish the scaled score range required for each category.  The           

                                                                                

19  department  of treasury  shall design and distribute to                     

                                                                                

20  districts, intermediate districts, and nonpublic schools a simple           

                                                                                

21  and concise document that describes these categories in each                

                                                                                

22  subject area and indicates the scaled score ranges for each                 

                                                                                

23  category in each subject area.  A district may award a high                 

                                                                                

24  school diploma to a pupil who successfully completes local                  

                                                                                

25  district requirements established in accordance with state law              

                                                                                

26  for high school graduation, regardless of whether the pupil is              

                                                                                

27  eligible for any state endorsement.                                         


                                                                                

1       (3) The assessments administered for the purposes of this                   

                                                                                

2   section shall be administered to pupils during the last 30 school           

                                                                                

3   days of grade 11.  The department  of treasury  shall ensure that           

                                                                                

4   the assessments are scored and the scores are returned to pupils,           

                                                                                

5   their parents or legal guardians, and districts not later than              

                                                                                

6   the beginning of the pupil's first semester of grade 12.  The               

                                                                                

7   department  of treasury  shall arrange for those portions of a              

                                                                                

8   pupil's assessment that cannot be scored mechanically to be                 

                                                                                

9   scored in Michigan by persons who are Michigan teachers, retired            

                                                                                

10  Michigan teachers, or Michigan school administrators and who have           

                                                                                

11  been trained in scoring the assessments.  The returned scores               

                                                                                

12  shall indicate the pupil's scaled score for each subject area               

                                                                                

13  assessment, the range of scaled scores for each subject area, and           

                                                                                

14  the range of scaled scores required for each category established           

                                                                                

15  under subsection (2).  In reporting the scores to pupils,                   

                                                                                

16  parents, and schools, the department  of treasury  shall provide            

                                                                                

17  specific, meaningful, and timely feedback on the pupil's                    

                                                                                

18  performance on the assessment.                                              

                                                                                

19      (4) For each pupil who does not achieve state endorsement in                

                                                                                

20  1 or more subject areas, the board of the district in which the             

                                                                                

21  pupil is enrolled shall provide that there be at least 1 meeting            

                                                                                

22  attended by at least the pupil and a member of the district's               

                                                                                

23  staff or a local or intermediate district consultant who is                 

                                                                                

24  proficient in the measurement and evaluation of pupils.  The                

                                                                                

25  district may provide the meeting as a group meeting for pupils in           

                                                                                

26  similar circumstances.  If the pupil is a minor, the district               

                                                                                

27  shall invite and encourage the pupil's parent, legal guardian, or           


                                                                                

1   person in loco parentis to attend the meeting and shall mail a              

                                                                                

2   notice of the meeting to the pupil's parent, legal guardian, or             

                                                                                

3   person in loco parentis.  The purpose of this meeting and any               

                                                                                

4   subsequent meeting under this subsection shall be to determine an           

                                                                                

5   educational program for the pupil designed to have the pupil                

                                                                                

6   achieve state endorsement in each subject area in which he or she           

                                                                                

7   did not achieve state endorsement.  In addition, a district may             

                                                                                

8   provide for subsequent meetings with the pupil conducted by a               

                                                                                

9   high school counselor or teacher designated by the pupil's high             

                                                                                

10  school principal, and shall invite and encourage the pupil's                

                                                                                

11  parent, legal guardian, or person in loco parentis to attend the            

                                                                                

12  subsequent meetings.  The district shall provide special programs           

                                                                                

13  for the pupil or develop a program using the educational programs           

                                                                                

14  regularly provided by the district unless the board of the                  

                                                                                

15  district decides otherwise and publishes and explains its                   

                                                                                

16  decision in a public justification report.                                  

                                                                                

17      (5) A pupil who wants to repeat an assessment administered                  

                                                                                

18  under this section may repeat the assessment, without charge to             

                                                                                

19  the pupil, in the next school year or after graduation.  An                 

                                                                                

20  individual may repeat an assessment at any time the district                

                                                                                

21  administers an applicable assessment instrument or during a                 

                                                                                

22  retesting period under subsection (7).                                      

                                                                                

23      (6) The department  of treasury  shall ensure that the length               

                                                                                

24  of the assessments used for the purposes of this section and the            

                                                                                

25  combined total time necessary to administer all of the                      

                                                                                

26  assessments are the shortest possible that will still maintain              

                                                                                

27  the degree of reliability and validity of the assessment results            


                                                                                

1   determined necessary by the department.  of treasury.  The                  

                                                                                

2   department  of treasury  shall ensure that the maximum total                

                                                                                

3   combined length of time that schools are required to set aside              

                                                                                

4   for administration of all of the assessments used for the                   

                                                                                

5   purposes of this section does not exceed 8 hours.  However, this            

                                                                                

6   subsection does not limit the amount of time that individuals may           

                                                                                

7   have to complete the assessments.                                           

                                                                                

8       (7) The department  of treasury  shall establish, schedule,                 

                                                                                

9   and arrange periodic retesting periods throughout the year for              

                                                                                

10  individuals who desire to repeat an assessment under this                   

                                                                                

11  section.  The department  of treasury  shall coordinate the                 

                                                                                

12  arrangements for administering the repeat assessments and shall             

                                                                                

13  ensure that the retesting is made available at least within each            

                                                                                

14  intermediate district and, to the extent possible, within each              

                                                                                

15  district.                                                                   

                                                                                

16      (8) A district shall provide accommodations to a pupil with                 

                                                                                

17  disabilities for the assessments required under this section, as            

                                                                                

18  provided under section 504 of title V of the rehabilitation act             

                                                                                

19  of 1973,  Public Law 93-112,  29  U.S.C.  USC 794; subtitle A of            

                                                                                

20  title II of the Americans with disabilities act of 1990,  Public            

                                                                                

21  Law 101-336,  42  U.S.C.  USC 12131 to 12134; and the                       

                                                                                

22  implementing regulations for those statutes.                                

                                                                                

23      (9) For the purposes of this section, the department  of                    

                                                                                

24  treasury  shall develop or select and approve assessment                    

                                                                                

25  instruments to measure pupil performance in  communications                 

                                                                                

26  skills  English language arts, mathematics, social studies, and             

                                                                                

27  science.  Unless the department  of treasury  selects and                   


                                                                                

1   approves the ACT/ACT work keys tests, the assessment instruments            

                                                                                

2   shall be based on the model core academic content standards                 

                                                                                

3   objectives under section 1278 of the revised school code,                   

                                                                                

4   MCL 380.1278.                                                               

                                                                                

5       (10) Upon written request by the pupil's parent or legal                    

                                                                                

6   guardian stating that the request is being made for the purpose             

                                                                                

7   of providing the pupil with an opportunity to qualify to take 1             

                                                                                

8   or more postsecondary courses as an eligible student under the              

                                                                                

9   postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to           

                                                                                

10  388.524, the board of a district shall allow a pupil who is in at           

                                                                                

11  least grade 10 to take an assessment administered under this                

                                                                                

12  section without charge at any time the district regularly                   

                                                                                

13  administers the assessment or during a retesting period                     

                                                                                

14  established under subsection (7).  A district is not required to            

                                                                                

15  include in an annual education report, or in any other report               

                                                                                

16  submitted to the department  of treasury  for accreditation                 

                                                                                

17  purposes, results of assessments taken under this subsection by a           

                                                                                

18  pupil in grade 11 or lower until the results of that pupil's                

                                                                                

19  graduating class are otherwise reported.                                    

                                                                                

20      (11) All assessment instruments developed or selected and                   

                                                                                

21  approved by the state under any statute or rule for a purpose               

                                                                                

22  related to K to 12 education shall be objective-oriented and                

                                                                                

23  consistent with the model core academic content standards                   

                                                                                

24  objectives under section 1278 of the revised school code,                   

                                                                                

25  MCL 380.1278.                                                               

                                                                                

26      (12) A person who has graduated from high school after 1996                 

                                                                                

27  and who has not previously taken an assessment under this section           


                                                                                

1   may take an assessment used for the purposes of this section,               

                                                                                

2   without charge to the person, at the district from which he or              

                                                                                

3   she graduated from high school at any time that district                    

                                                                                

4   administers the assessment or during a retesting period scheduled           

                                                                                

5   under subsection (7) and have his or her scaled score on the                

                                                                                

6   assessment included on his or her high school transcript.  If the           

                                                                                

7   person's scaled score on a subject area assessment falls within             

                                                                                

8   the range required under subsection (2) for a category                      

                                                                                

9   established under subsection (2), the district shall also                   

                                                                                

10  indicate on the person's high school transcript that the person             

                                                                                

11  has achieved state endorsement for that subject area.                       

                                                                                

12      (13) A child who is a student in a nonpublic school or home                 

                                                                                

13  school may take an assessment under this section.  To take an               

                                                                                

14  assessment, a child who is a student in a home school shall                 

                                                                                

15  contact the district in which the child resides, and that                   

                                                                                

16  district shall administer the assessment, or the child may take             

                                                                                

17  the assessment at a nonpublic school if allowed by the nonpublic            

                                                                                

18  school.  Upon request from a nonpublic school, the department  of           

                                                                                

19  treasury  shall supply assessments and the nonpublic school may             

                                                                                

20  administer the assessment.                                                  

                                                                                

21      (14) The purpose of the assessment under this section is to                 

                                                                                

22  assess pupil performance in mathematics, science, social studies,           

                                                                                

23  and  communication  English language arts for the purpose of                

                                                                                

24  improving academic achievement and establishing a statewide                 

                                                                                

25  standard of competency.  The assessment under this section                  

                                                                                

26  provides a common measure of data that will contribute to the               

                                                                                

27  improvement of Michigan schools' curriculum and instruction by              


                                                                                

1   encouraging alignment with Michigan's curriculum framework                  

                                                                                

2   standards.  These standards are based upon the expectations of              

                                                                                

3   what pupils should know and be able to do by the end of grade               

                                                                                

4   11.                                                                         

                                                                                

5       (15) If the Michigan assessment governing board is                          

                                                                                

6   established by law, the Michigan assessment governing board shall           

                                                                                

7   administer this section and shall have all of the powers and                

                                                                                

8   duties as otherwise provided under this section for the                     

                                                                                

9   department of treasury.                                                     

                                                                                

10      (15)  (16)  As used in this section,  :                                     

                                                                                

11      (a) "Communications skills" means reading and writing.                      

                                                                                

12      (b) "Social  "social studies" means geography, history,                     

                                                                                

13  economics, and American government.                                         

                                                                                

14      Sec. 107.  (1) From the appropriation in section 11, there                  

                                                                                

15  is allocated an amount not to exceed $20,000,000.00 for                     

                                                                                

16  2003-2004  2004-2005 for adult education programs authorized               

                                                                                

17  under this section.                                                         

                                                                                

18      (2) To be eligible to be a participant funded under this                    

                                                                                

19  section, a person shall be enrolled in an adult basic education             

                                                                                

20  program, an adult English as a second language program, a general           

                                                                                

21  education  educational development (G.E.D.)  test preparation              

                                                                                

22  program, a job or employment related program, or a high school              

                                                                                

23  completion program, that meets the requirements of this section,            

                                                                                

24  and shall meet either of the following, as applicable:                      

                                                                                

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

                                                                                

26  general  education  educational development (G.E.D.)                        

                                                                                

27  certificate, the individual meets 1 of the following:                       


                                                                                

1                                                                                (i) Is less than 20 years of age on September 1 of the school                       

                                                                                

2   year and is enrolled in the state technical institute and                   

                                                                                

3   rehabilitation center.                                                      

                                                                                

4       (ii) Is less than 20 years of age on September 1 of the                      

                                                                                

5   school year, is not attending an institution of higher education,           

                                                                                

6   and is enrolled in a job or employment-related program through a            

                                                                                

7   referral by an employer.                                                    

                                                                                

8       (iii) Is enrolled in an English as a second language                         

                                                                                

9   program.                                                                    

                                                                                

10      (iv) Is enrolled in a high school completion program.                        

                                                                                

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

                                                                                

12  or G.E.D. certificate, the individual meets 1 of the following:             

                                                                                

13                                                                               (i) Is at least 20 years of age on September 1 of the school                        

                                                                                

14  year.                                                                       

                                                                                

15      (ii) Is at least 16 years of age on September 1 of the school                

                                                                                

16  year, has been permanently expelled from school under section               

                                                                                

17  1311(2) or 1311a of the revised school code, MCL 380.1311 and               

                                                                                

18  380.1311a, and has no appropriate alternative education program             

                                                                                

19  available through his or her district of residence.                         

                                                                                

20      (3) Except as otherwise provided in subsection (4), the                     

                                                                                

21  amount allocated under subsection (1) shall be distributed as               

                                                                                

22  follows:                                                                    

                                                                                

23      (a) For districts and consortia that received payments for                  

                                                                                

24  2001-2002  2003-2004 under this section, the amount allocated to           

                                                                                

25  each for  2003-2004  2004-2005 shall be based on the number of              

                                                                                

26  participants served by the district or consortium for  2003-2004            

                                                                                

27  2004-2005, using the amount allocated per full-time equated                 


                                                                                

1   participant under subsection (5), up to a maximum total                     

                                                                                

2   allocation under this section in an amount equal to  26.67% of              

                                                                                

3   the amount the district or consortium received for  2001-2002               

                                                                                

4   2003-2004 under this section before any reallocations made for              

                                                                                

5   2001-2002  2003-2004 under subsection (4).                                 

                                                                                

6       (b) A district or consortium that received funding in                       

                                                                                

7   2002-2003  2003-2004 under this section may operate                        

                                                                                

8   independently of a consortium or join or form a consortium for              

                                                                                

9   2003-2004  2004-2005.  The allocation for  2003-2004  2004-2005            

                                                                                

10  to the district or the newly formed consortium under this                   

                                                                                

11  subsection shall be determined by the department of  career                 

                                                                                

12  development  labor and economic growth and shall be based on the            

                                                                                

13  proportion of the amounts that are attributable to the district             

                                                                                

14  or consortium that received funding in  2002-2003  2003-2004.  A            

                                                                                

15  district or consortium described in this subdivision shall notify           

                                                                                

16  the department of career development of its intention with regard           

                                                                                

17  to  2003-2004  2004-2005 by October 1,  2003  2004.                         

                                                                                

18      (4) A district that operated an adult education program in                  

                                                                                

19  2002-2003  2003-2004 and does not intend to operate a program in           

                                                                                

20  2003-2004  2004-2005 shall notify the department of  career                

                                                                                

21  development  labor and economic growth by October 1,  2003  2004            

                                                                                

22  of its intention.  The funds intended to be allocated under this            

                                                                                

23  section to a district that does not operate a program in                    

                                                                                

24  2003-2004  2004-2005 and the unspent funds originally allocated            

                                                                                

25  under this section to a district or consortium that subsequently            

                                                                                

26  operates a program at less than the level of funding allocated              

                                                                                

27  under subsection (3) shall instead be proportionately reallocated           


                                                                                

1   to the other districts described in subsection (3)(a) that are              

                                                                                

2   operating an adult education program in  2003-2004  2004-2005               

                                                                                

3   under this section.                                                         

                                                                                

4       (5) The amount allocated under this section per full-time                   

                                                                                

5   equated participant is $2,850.00 for a 450-hour program.  The               

                                                                                

6   amount shall be proportionately reduced for a program offering              

                                                                                

7   less than 450 hours of instruction.                                         

                                                                                

8       (6) An adult basic education program or an adult English as a               

                                                                                

9   second language 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 are determined by an                     

                                                                                

13  appropriate assessment to be below ninth grade level in reading             

                                                                                

14  or mathematics, or both, or to lack basic English proficiency.              

                                                                                

15      (b) The program tests individuals for eligibility under                     

                                                                                

16  subdivision (a) before enrollment and tests participants to                 

                                                                                

17  determine progress after every 90 hours of attendance, using                

                                                                                

18  assessment instruments approved by the department of  career                

                                                                                

19  development  labor and economic growth.                                     

                                                                                

20      (c) A participant in an adult basic education program is                    

                                                                                

21  eligible for reimbursement until 1 of the following occurs:                 

                                                                                

22                                                                               (i) The participant's reading and mathematics proficiency are                       

                                                                                

23  assessed at or above the ninth grade level.                                 

                                                                                

24      (ii) The participant fails to show progress on 2 successive                  

                                                                                

25  assessments after having completed at least 450 hours of                    

                                                                                

26  instruction.                                                                

                                                                                

27      (d) A funding recipient enrolling a participant in an English               


                                                                                

1   as a second language program is eligible for funding according to           

                                                                                

2   subsection (10) until the participant meets 1 of the following:             

                                                                                

3                                                                                (i) The participant is assessed as having attained basic                            

                                                                                

4   English proficiency.                                                        

                                                                                

5       (ii) The participant fails to show progress on 2 successive                  

                                                                                

6   assessments after having completed at least 450 hours of                    

                                                                                

7   instruction.  The department of  career development  labor and              

                                                                                

8   economic growth shall provide information to a funding recipient            

                                                                                

9   regarding appropriate assessment instruments for this program.              

                                                                                

10      (7) A general  education  educational development (G.E.D.)                  

                                                                                

11  test preparation program operated on a year-round or school year            

                                                                                

12  basis may be funded under this section, subject to all of the               

                                                                                

13  following:                                                                  

                                                                                

14      (a) The program enrolls adults who do not have a high school                

                                                                                

15  diploma.                                                                    

                                                                                

16      (b) The program shall administer a G.E.D. pre-test approved                 

                                                                                

17  by the department of  career development  labor and economic                

                                                                                

18  growth before enrolling an individual to determine the                      

                                                                                

19  individual's potential for success on the G.E.D. test, and shall            

                                                                                

20  administer other tests after every 90 hours of attendance to                

                                                                                

21  determine a participant's readiness to take the G.E.D. test.                

                                                                                

22      (c) A funding recipient shall receive funding according to                  

                                                                                

23  subsection (10) for a participant, and a participant may be                 

                                                                                

24  enrolled in the program until 1 of the following occurs:                    

                                                                                

25                                                                               (i) The participant passes the G.E.D. test.                                         

                                                                                

26      (ii) The participant fails to show progress on 2 successive                  

                                                                                

27  tests used to determine readiness to take the G.E.D. test after             


                                                                                

1   having completed at least 450 hours of instruction.                         

                                                                                

2       (8) A high school completion program operated on a year-round               

                                                                                

3   or school year basis may be funded under this section, subject to           

                                                                                

4   all of the following:                                                       

                                                                                

5       (a) The program enrolls adults who do not have a high school                

                                                                                

6   diploma.                                                                    

                                                                                

7       (b) A funding recipient shall receive funding according to                  

                                                                                

8   subsection (10) for a participant in a course offered under this            

                                                                                

9   subsection until 1 of the following occurs:                                 

                                                                                

10                                                                               (i) The participant passes the course and earns a high school                       

                                                                                

11  diploma.                                                                    

                                                                                

12      (ii) The participant fails to earn credit in 2 successive                    

                                                                                

13  semesters or terms in which the participant is enrolled after               

                                                                                

14  having completed at least 900 hours of instruction.                         

                                                                                

15      (9) A job or employment-related adult education program                     

                                                                                

16  operated on a year-round or school year basis may be funded under           

                                                                                

17  this section, subject to all of the following:                              

                                                                                

18      (a) The program enrolls adults referred by their employer who               

                                                                                

19  are less than 20 years of age, have a high school diploma, are              

                                                                                

20  determined to be in need of remedial mathematics or communication           

                                                                                

21  arts skills and are not attending an institution of higher                  

                                                                                

22  education.                                                                  

                                                                                

23      (b) An individual may be enrolled in this program and the                   

                                                                                

24  grant recipient shall receive funding according to subsection               

                                                                                

25  (10) until 1 of the following occurs:                                       

                                                                                

26                                                                               (i) The individual achieves the requisite skills as                                 

                                                                                

27  determined by appropriate assessment instruments administered at            


                                                                                

1   least after every 90 hours of attendance.                                   

                                                                                

2       (ii) The individual fails to show progress on 2 successive                   

                                                                                

3   assessments after having completed at least 450 hours of                    

                                                                                

4   instruction.  The department of  career development  labor and              

                                                                                

5   economic growth shall provide information to a funding recipient            

                                                                                

6   regarding appropriate assessment instruments for this program.              

                                                                                

7       (10) A funding recipient shall receive payments under this                  

                                                                                

8   section in accordance with the following:                                   

                                                                                

9       (a)  Ninety  Eighty percent for enrollment of eligible                      

                                                                                

10  participants.                                                               

                                                                                

11      (b)  Ten  Twenty percent for completion of the adult basic                  

                                                                                

12  education objectives by achieving an increase of at least 1 grade           

                                                                                

13  level of proficiency in reading or mathematics; for achieving               

                                                                                

14  basic English proficiency; for passage of the G.E.D. test; for              

                                                                                

15  passage of a course required for a participant to attain a high             

                                                                                

16  school diploma; or for completion of the course and demonstrated            

                                                                                

17  proficiency in the academic skills to be learned in the course,             

                                                                                

18  as applicable.                                                              

                                                                                

19      (11) As used in this section, "participant" means the sum of                

                                                                                

20  the number of full-time equated individuals enrolled in and                 

                                                                                

21  attending a department-approved adult education program under               

                                                                                

22  this section, using quarterly participant count days on the                 

                                                                                

23  schedule described in section 6(7)(b).                                      

                                                                                

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

                                                                                

25  under this section may receive adult education services upon the            

                                                                                

26  payment of tuition.  In addition, a person who is not eligible to           

                                                                                

27  be served in a program under this section due to the program                


                                                                                

1   limitations specified in subsection (6), (7), (8), or (9) may               

                                                                                

2   continue to receive adult education services in that program upon           

                                                                                

3   the payment of tuition.  The tuition level shall be determined by           

                                                                                

4   the local or intermediate district conducting the program.                  

                                                                                

5       (13) An individual who is an inmate in a state correctional                 

                                                                                

6   facility shall not be counted as a participant under this                   

                                                                                

7   section.                                                                    

                                                                                

8       (14) A district shall not commingle money received under this               

                                                                                

9   section or from another source for adult education purposes with            

                                                                                

10  any other funds of the district.  A district receiving adult                

                                                                                

11  education funds shall establish a separate ledger account for               

                                                                                

12  those funds.  This subsection does not prohibit a district from             

                                                                                

13  using general funds of the district to support an adult education           

                                                                                

14  or community education program.                                             

                                                                                

15      (15) A district or intermediate district receiving funds                    

                                                                                

16  under this section may establish a sliding scale of tuition rates           

                                                                                

17  based upon a participant's family income.  A district or                    

                                                                                

18  intermediate district may charge a participant tuition to receive           

                                                                                

19  adult education services under this section from that sliding               

                                                                                

20  scale of tuition rates on a uniform basis.  The amount of tuition           

                                                                                

21  charged per participant shall not exceed the actual operating               

                                                                                

22  cost per participant minus any funds received under this section            

                                                                                

23  per participant.  A district or intermediate district may not               

                                                                                

24  charge a participant tuition under this section if the                      

                                                                                

25  participant's income is at or below 200% of the federal poverty             

                                                                                

26  guidelines published by the United States department of health              

                                                                                

27  and human services.                                                         


                                                                                

1       Sec. 146.  Not later than January 1, 2005, the state budget                 

                                                                                

2   director, the department, and the senate and house fiscal                   

                                                                                

3   agencies jointly shall do both of the following:                            

                                                                                

4       (a) Conduct a study of the feasibility of creating and                      

                                                                                

5   requiring districts, intermediate districts, community colleges,            

                                                                                

6   and state universities to participate in a statewide purchasing             

                                                                                

7   pool for employee health benefits or of including public school,            

                                                                                

8   community college, and state university employees in state                  

                                                                                

9   employee group health plans, and of the possible cost savings               

                                                                                

10  from implementation of these options.                                       

                                                                                

11      (b) Submit a report to the legislature detailing the findings               

                                                                                

12  and recommendations from the study.                                         

                                                                                

13      Sec. 147.  (1) The allocation for  2003-2004  2004-2005 for                 

                                                                                

14  the public school employees' retirement system pursuant to the              

                                                                                

15  public school employees retirement act of 1979, 1980 PA 300,                

                                                                                

16  MCL 38.1301 to 38.1408, shall be made using the entry age normal            

                                                                                

17  cost actuarial method and risk assumptions adopted by the public            

                                                                                

18  school employees retirement board and the department of                     

                                                                                

19  management and budget.  The annual level percentage of payroll              

                                                                                

20  contribution rate is estimated  14.37%  14.87% for the                      

                                                                                

21  2003-2004  2004-2005 state fiscal year.   However, if all                  

                                                                                

22  eligible districts participating in the school bond loan                    

                                                                                

23  authority assist the state treasurer in the refinancing of school           

                                                                                

24  bond loan authority debt, the annual level percentage of payroll            

                                                                                

25  contribution rate for all districts is estimated to be 12.99% for           

                                                                                

26  the 2003-2004 fiscal year.  If an eligible district does not                

                                                                                

27  assist in the refinancing, that district's payroll contribution             


                                                                                

1   rate is estimated to be 14.37% for the 2003-2004 fiscal year.               

                                                                                

2   The portion of the contribution rate assigned to districts and              

                                                                                

3   intermediate districts for each fiscal year is all of the total             

                                                                                

4   percentage points.  This contribution rate reflects an                      

                                                                                

5   amortization period of  33  32 years for  2003-2004  2004-2005.             

                                                                                

6   The public school employees' retirement system board shall notify           

                                                                                

7   each district and intermediate district by February 28 of each              

                                                                                

8   fiscal year of the estimated contribution rate for the next                 

                                                                                

9   fiscal year.                                                                

                                                                                

10      (2) It is the intent of the legislature that the amortization               

                                                                                

11  period described in section 41(2) of the public school employees            

                                                                                

12  retirement act of 1979, 1980 PA 300, MCL 38.1341, be reduced to             

                                                                                

13  30 years by the end of the 2005-2006 state fiscal year by                   

                                                                                

14  reducing the amortization period by not more than 1 year each               

                                                                                

15  fiscal year.                                                                

                                                                                

16      Sec. 152.  Except for reports due on other dates specified                  

                                                                                

17  in this act, each district and intermediate district shall                  

                                                                                

18  furnish to the center or the department, as applicable, before              

                                                                                

19  the first Monday in November of each year those reports the                 

                                                                                

20  department considers necessary for the determination of the                 

                                                                                

21  allocation of funds under this act.  In order to receive funds              

                                                                                

22  under this act, each district and intermediate district shall               

                                                                                

23  also furnish to the center or the department, as applicable, the            

                                                                                

24  information the department considers necessary for the                      

                                                                                

25  administration of this act, including information necessary to              

                                                                                

26  determine compliance with article 16, and for the provision of              

                                                                                

27  reports of educational progress to the senate and house                     


                                                                                

1   committees responsible for education, the senate and house                  

                                                                                

2   appropriations subcommittees responsible for appropriations to              

                                                                                

3   school districts, the senate and house fiscal agencies, and the             

                                                                                

4   state budget director, as appropriate.  This section does not               

                                                                                

5   require a district or intermediate district to submit any                   

                                                                                

6   information to both the center and the department.                          

                                                                                

7       Sec. 158b.  Each district that receives federal impact aid                  

                                                                                

8   under section 3(c)(1) of title 1 of chapter 1124, 64 Stat. 1100,           

                                                                                

9   20 U.S.C. 238,  annually shall report to the  department  center,           

                                                                                

10  in the form and manner prescribed by the department, the amount             

                                                                                

11  of that aid the district received.                                          

                                                                                

12      Sec. 166a.  (1) In order to avoid forfeiture of state aid                   

                                                                                

13  under subsection (2), the board of a district or intermediate               

                                                                                

14  district providing reproductive health or other sex education               

                                                                                

15  instruction under section 1169, 1506, or 1507 of the revised                

                                                                                

16  school code, MCL 380.1169, 380.1506, and 380.1507, or under any             

                                                                                

17  other provision of law, shall ensure that all of the following              

                                                                                

18  are met:                                                                    

                                                                                

19      (a) That the district or intermediate district does not                     

                                                                                

20  provide any of the instruction to a pupil who is less than 18               

                                                                                

21  years of age unless the district or intermediate district                   

                                                                                

22  notifies the pupil's parent or legal guardian in advance of the             

                                                                                

23  instruction and the content of the instruction, gives the pupil's           

                                                                                

24  parent or legal guardian a prior opportunity to review the                  

                                                                                

25  materials to be used in the instruction, allows the pupil's                 

                                                                                

26  parent or legal guardian to observe the instruction, and notifies           

                                                                                

27  the pupil's parent or legal guardian in advance of his or her               


                                                                                

1   rights to observe the instruction and to have the pupil excused             

                                                                                

2   from the instruction.                                                       

                                                                                

3       (b) That, upon the written request of a pupil's parent or                   

                                                                                

4   legal guardian or of a pupil if the pupil is at least age 18, the           

                                                                                

5   pupil shall be excused, without penalty or loss of academic                 

                                                                                

6   credit, from attending class sessions in which the instruction is           

                                                                                

7   provided.                                                                   

                                                                                

8       (c) That the sex education instruction includes                             

                                                                                

9   age-appropriate information clearly informing pupils at 1 or more           

                                                                                

10  age-appropriate grade levels that having sex or sexual contact              

                                                                                

11  with an individual under the age of 16 is a crime punishable by             

                                                                                

12  imprisonment, and that 1 of the other results of being convicted            

                                                                                

13  of this crime is to be listed on the sex offender registry on the           

                                                                                

14  internet for  at least  up to 25 years.                                     

                                                                                

15      (2) A district or intermediate district that does not comply                

                                                                                

16  with this section shall forfeit 5% of its total state school aid            

                                                                                

17  allocation under this act.                                                  

                                                                                

18      Enacting section 1.  In accordance with section 30 of                       

                                                                                

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

                                                                                

20  spending in this amendatory act from state sources for fiscal               

                                                                                

21  year 2004-2005 is estimated at $11,172,322,200.00 and state                 

                                                                                

22  appropriations to be paid to local units of government for fiscal           

                                                                                

23  year 2004-2005 are estimated at $11,114,433,700.00.                         

                                                                                

24      Enacting section 2.  Sections 11c, 31e, 32b, 68, 107a, and                  

                                                                                

25  108 of the state school aid act of 1979, 1979 PA 94, MCL                    

                                                                                

26  388.1611c, 388.1631e, 388.1632b, 388.1668, 388.1707a, and                   

                                                                                

27  388.1708, are repealed effective October 1, 2004.                           


                                                                                

1       Enacting section 3.  (1) Except as otherwise provided in                    

                                                                                

2   subsection (2), this amendatory act takes effect October 1,                 

                                                                                

3   2004.                                                                       

                                                                                

4       (2) Sections 22a, 94a, and 101 of the state school aid act of               

                                                                                

5   1979, MCL 388.1622a, 388.1694a, and 388.1701, as amended by this            

                                                                                

6   amendatory act, take effect upon enactment of this amendatory               

                                                                                

7   act.