SENATE BILL No. 1048

 

 

March 2, 2004, Introduced by Senator SWITALSKI and referred to the Committee on Appropriations.

 

   

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

    EXECUTIVE BUDGET BILL                                                       

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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, 18, 18a,      

                                                                                

    19, 20, 20j, 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 163 (MCL 388.1603,              

                                                                                

    388.1604, 388.1606, 388.1611, 388.1611b, 388.1611f, 388.1611g,              

                                                                                

    388.1611j, 388.1613, 388.1615, 388.1618, 388.1618a, 388.1619, 388.1620,     

                                                                                

    388.1620j, 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            

                                                                                

    388.1763), sections 11 and 26a as amended by 2003 PA 236, sections 11b,     

                                                                                

    32j, 41a, and 98b as added and sections 3, 6, 11f, 11g, 11j, 18, 19,        

                                                                                

    20, 22a, 22b, 24, 31a, 31d, 32c, 32d, 39a, 41, 51a, 51c, 51d, 53a, 54,      

                                                                                

    56, 57, 61a, 62, 74, 81, 94a, 98, 99, 101, 104a, 107, and 147 as            

                                                                                

    amended by 2003 PA 158, and section 32f as amended by 2002 PA 521, and      

                                                                                

    section 20j as amended by 2001 PA 121, and sections 21b, 152 and 163 as     

                                                                                

    amended by 2000 PA 297, and section 13 as amended by 1999 PA 119; and       

                                                                                

    section 26 as amended by 1997 PA 93, and sections 15 and 18a as amended     

                                                                                

    by 1996 PA 300, and section 4 as amended by 1995 PA 130, and section        

                                                                                

    158b as added by 1994 PA 283, and by adding sections 20l, 32, 61b and       

                                                                                

    107b; 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 defined in       

                                                                                

3   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 educational        

                                                                                

10  programs for pupils in certain groups of districts.  The written            

                                                                                

11  agreement shall be approved by all affected districts at least annually     


                                                                                

1   and shall specify the educational programs to be provided and the           

                                                                                

2   estimated number of pupils from each district who will participate in       

                                                                                

3   the educational programs.                                                   

                                                                                

4       (5) "Department", except in sections 67, 68, 107 and 107b 108,              

                                                                                

5   means the department of education.                                          

                                                                                

6       (6) "District" means a local school district established under the          

                                                                                

7   revised school code, a local act school district, or, except in sections    

                                                                                

8   6(4), 6(6), 13, 20, 22a, 23, 31a, 32f, 105, and 105c, a public school       

                                                                                

9   academy.  Except in sections 6(4), 6(6), 13, 20, 22a, 105, and 105c,        

                                                                                

10  district also includes a university school.                                 

                                                                                

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

                                                                                

12  subsection, means the district in which a pupil's custodial parent or       

                                                                                

13  parents or legal guardian resides.  For a pupil described in section        

                                                                                

14  24b, the pupil's district of residence is the district in which the         

                                                                                

15  pupil enrolls under that section.  For a pupil described in section         

                                                                                

16  6(4)(d), the pupil's district of residence shall be considered to be the    

                                                                                

17  district or intermediate district in which the pupil is counted in          

                                                                                

18  membership under that section.  For a pupil under court jurisdiction who    

                                                                                

19  is placed outside the district in which the pupil's custodial parent or     

                                                                                

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

                                                                                

21  shall be considered to be the educating district or educating               

                                                                                

22  intermediate district.                                                      

                                                                                

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

                                                                                

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

                                                                                

25  chief administrator of a university school.                                 

                                                                                

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

                                                                                

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


                                                                                

1   grade or in grades K to 6 in a district maintaining classes above the       

                                                                                

2   eighth grade.                                                               

                                                                                

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

                                                                                

4   by a district in which pupils must be enrolled but not necessarily in       

                                                                                

5   attendance on the pupil membership count day in an extended year            

                                                                                

6   program.  The mandatory days of student instruction and prescribed clock    

                                                                                

7   hours shall be completed by each pupil not more than 365 calendar days      

                                                                                

8   after the pupil's first day of classes for the school year prescribed.      

                                                                                

9   The department shall prescribe pupil, personnel, and other reporting        

                                                                                

10  requirements for the educational program.                                   

                                                                                

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

                                                                                

12  October 1 and continues through September 30.                               

                                                                                

13      (4) "General educational development testing preparation program"           

                                                                                

14  means a program that has high school level courses in writing skills,       

                                                                                

15  English language arts, social studies, science, reading skills, and         

                                                                                

16  mathematics and that prepares a person to successfully complete the         

                                                                                

17  general educational development (GED) test.                                 

                                                                                

18      (5) "High school pupil" means a pupil in membership in grades 7 to          

                                                                                

19  12, except in a district not maintaining grades above the eighth grade.     

                                                                                

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

                                                                                

21  district or intermediate district for special education pupils from         

                                                                                

22  several districts in programs for the autistically impaired, trainable      

                                                                                

23  mentally impaired, severely mentally impaired, severely multiply            

                                                                                

24  impaired, hearing impaired, physically and otherwise health impaired,       

                                                                                

25  and visually impaired.  Programs for emotionally impaired pupils housed     

                                                                                

26  in buildings that do not serve regular education pupils also qualify.       

                                                                                

27  Unless otherwise approved by the department, a center program either        


                                                                                

1   shall serve all constituent districts within an intermediate district or    

                                                                                

2   shall serve several districts with less than 50% of the pupils residing     

                                                                                

3   in the operating district.  In addition, special education center           

                                                                                

4   program pupils placed part-time in noncenter programs to comply with the    

                                                                                

5   least restrictive environment provisions of section 612 of part B of the    

                                                                                

6   individuals with disabilities education act, title VI of Public Law 91-     

                                                                                

7   230, 20 U.S.C. 1412, may be considered center program pupils for pupil      

                                                                                

8   accounting purposes for the time scheduled in either a center program or    

                                                                                

9   A noncenter program.                                                        

                                                                                

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

                                                                                

11  completion and pupil dropout rate that is calculated by the center          

                                                                                

12  pursuant to nationally recognized standards.                                

                                                                                

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

                                                                                

14  the number of pupils, excluding migrant and adult, in the district for      

                                                                                

15  the immediately preceding school year, adjusted for those pupils who        

                                                                                

16  have transferred into or out of the district or transferred to              

                                                                                

17  alternative programs, who leave high school with a diploma or other         

                                                                                

18  credential of equal status.                                                 

                                                                                

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

                                                                                

20  for a district, public school academy, university school, or                

                                                                                

21  intermediate district the sum of the product of .8 .5 times the number      

                                                                                

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

                                                                                

23  regular daily attendance on the pupil membership count day for the          

                                                                                

24  current school year, plus the product of .2 .5 times the final audited      

                                                                                

25  count from the supplemental count day for the immediately preceding         

                                                                                

26  school year.  All pupil counts used in this subsection are as               

                                                                                

27  determined by the department and calculated by adding the number of         


                                                                                

1   pupils registered for attendance plus pupils received by transfer           

                                                                                

2   and minus pupils lost as defined by rules promulgated by                    

                                                                                

3   the superintendent, and as corrected by a subsequent department             

                                                                                

4   audit.  The amount of the foundation allowance for a pupil in               

                                                                                

5   membership is determined under section 20.  In making the calculation of    

                                                                                

6   membership, all of the following, as applicable, apply to determining       

                                                                                

7   the membership of a district, public school academy, university school,     

                                                                                

8   or intermediate district:                                                   

                                                                                

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

                                                                                

10  to subsection (6), a pupil shall be counted in membership in the pupil's    

                                                                                

11  educating district or districts.  An individual pupil shall not be          

                                                                                

12  counted for more than a total of 1.0 full-time equated membership.          

                                                                                

13      (b) If a pupil is educated in a district other than the pupil's             

                                                                                

14  district of residence, if the pupil is not being educated as part of a      

                                                                                

15  cooperative education program, if the pupil's district of residence does    

                                                                                

16  not give the educating district its approval to count the pupil in          

                                                                                

17  membership in the educating district, and if the pupil is not covered by    

                                                                                

18  an exception specified in subsection (6) to the requirement that the        

                                                                                

19  educating district must have the approval of the pupil's district of        

                                                                                

20  residence to count the pupil in membership, the pupil shall not be          

                                                                                

21  counted in membership in any district.                                      

                                                                                

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

                                                                                

23  district shall be counted in membership in the intermediate district.       

                                                                                

24      (d) A pupil placed by a court or state agency in an on-grounds              

                                                                                

25  program of a juvenile detention facility, a child caring institution, or    

                                                                                

26  A mental health institution, or a pupil funded under section 53a, shall     

                                                                                

27  be counted in membership in the district or intermediate district           


                                                                                

1   approved by the department to operate the program.                          

                                                                                

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

                                                                                

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

                                                                                

4   district of residence.                                                      

                                                                                

5       (f) A pupil enrolled in a vocational education program supported            

                                                                                

6   by a millage levied over an area larger than a single district or in an     

                                                                                

7   area vocational-technical education program established pursuant to         

                                                                                

8   section 690 of the revised school code, MCL 380.690, shall be counted       

                                                                                

9   only in the pupil's district of residence.                                  

                                                                                

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

                                                                                

11  membership in the university school.                                        

                                                                                

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

                                                                                

13  in membership in the public school academy.                                 

                                                                                

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

                                                                                

15  academy beginning its operation after December 31, 1994, membership for     

                                                                                

16  the first 2 full or partial fiscal years of operation shall be              

                                                                                

17  determined as follows:                                                      

                                                                                

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

                                                                                

19  the fiscal year, membership is the average number of full-time equated      

                                                                                

20  pupils in grades K to 12 actually enrolled and in regular daily             

                                                                                

21  attendance on the pupil membership count day for the current school year    

                                                                                

22  and on the supplemental count day for the current school year, as           

                                                                                

23  determined by the department and calculated by adding the number of         

                                                                                

24  pupils registered for attendance on the pupil membership count day plus     

                                                                                

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

                                                                                

26  promulgated by the superintendent, and as corrected by a subsequent         

                                                                                

27  department audit, plus the final audited count from the supplemental        


                                                                                

1   count day for the current school year, and dividing that sum by 2.          

                                                                                

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

                                                                                

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

                                                                                

4   fiscal year, membership is the final audited count of the number of         

                                                                                

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

                                                                                

6   regular daily attendance on the supplemental count day for the current      

                                                                                

7   school year.                                                                

                                                                                

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

                                                                                

9   academy, then, in the first school year in which pupils are counted in      

                                                                                

10  membership on the pupil membership count day in the public school           

                                                                                

11  academy, the determination of the district's membership shall exclude       

                                                                                

12  from the district's pupil count for the immediately preceding               

                                                                                

13  supplemental count day any pupils who are counted in the public school      

                                                                                

14  academy on that first pupil membership count day who were also counted      

                                                                                

15  in the district on the immediately preceding supplemental count day.        

                                                                                

16      (k) In a district, public school academy, university school, or             

                                                                                

17  intermediate district operating an extended school year program approved    

                                                                                

18  by the superintendent, a pupil enrolled, but not scheduled to be in         

                                                                                

19  regular daily attendance on a pupil membership count day, shall be          

                                                                                

20  counted.                                                                    

                                                                                

21      (l) Pupils to be counted in membership shall be not less than 5             

                                                                                

22  years of age on December 1 and less than 20 years of age on September 1     

                                                                                

23  of the school year except a special education pupil who is enrolled and     

                                                                                

24  receiving instruction in a special education program or service approved    

                                                                                

25  by the department and not having a high school diploma who is less than     

                                                                                

26  26 years of age as of September 1 of the current school year shall be       

                                                                                

27  counted in membership.                                                      


                                                                                

1       (m) An individual who has obtained a high school diploma shall not          

                                                                                

2   be counted in membership.  An individual who has obtained a general         

                                                                                

3   education development (G.E.D.) certificate shall not be counted in          

                                                                                

4   membership.  An individual participating in a job training program          

                                                                                

5   funded under former section 107a or a jobs program funded under former      

                                                                                

6   section 107b, administered by the Michigan strategic fund or the            

                                                                                

7   department of career development labor and economic growth, or              

                                                                                

8   participating in any successor of either of those 2 programs, shall not     

                                                                                

9   be counted in membership.                                                   

                                                                                

10      (n) If a pupil counted in membership in a public school academy is          

                                                                                

11  also educated by a district or intermediate district as part of a           

                                                                                

12  cooperative education program, the pupil shall be counted in membership     

                                                                                

13  only in the public school academy, unless a written agreement signed by     

                                                                                

14  all parties designates which parties shall count the pupil in               

                                                                                

15  membership, and the instructional time scheduled for the pupil in the       

                                                                                

16  district or intermediate district shall be included in the full-time        

                                                                                

17  equated membership determination under subdivision (q).  However, for       

                                                                                

18  pupils receiving instruction in both a public school academy and in a       

                                                                                

19  district or intermediate district but not as a part of a cooperative        

                                                                                

20  education program, the following apply:                                     

                                                                                

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

                                                                                

22  1/2 of the class hours specified in subdivision (q), the public school      

                                                                                

23  academy shall receive as its prorated share of the full-time equated        

                                                                                

24  membership for each of those pupils an amount equal to 1 times the          

                                                                                

25  product of the hours of instruction the public school academy provides      

                                                                                

26  divided by the number of hours specified in subdivision (q) for full-       

                                                                                

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


                                                                                

1   of those pupils shall be allocated to the district or intermediate          

                                                                                

2   district providing the remainder of the hours of instruction.               

                                                                                

3       (ii) If the public school academy provides instruction for less             

                                                                                

4   than 1/2 of the class hours specified in subdivision (q), the district      

                                                                                

5   or intermediate district providing the remainder of the hours of            

                                                                                

6   instruction shall receive as its prorated share of the full-time equated    

                                                                                

7   membership for each of those pupils an amount equal to 1 times the          

                                                                                

8   product of the hours of instruction the district or intermediate            

                                                                                

9   district provides divided by the number of hours specified in               

                                                                                

10  subdivision (q) for full-time equivalency, and the remainder of the         

                                                                                

11  full-time membership for each of those pupils shall be allocated to the     

                                                                                

12  public school academy.                                                      

                                                                                

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

                                                                                

14  the current school year who is being educated in an alternative             

                                                                                

15  education program shall not be counted in membership if there are also      

                                                                                

16  adult education participants being educated in the same program or          

                                                                                

17  classroom.                                                                  

                                                                                

18      (p) The department shall give a uniform interpretation of full-             

                                                                                

19  time and part-time memberships.                                             

                                                                                

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

                                                                                

21  memberships shall be consistent with section 101(3).  In determining        

                                                                                

22  full-time equated memberships for pupils who are enrolled in a              

                                                                                

23  postsecondary institution, a pupil shall not be considered to be less       

                                                                                

24  than a full-time equated pupil solely because of the effect of his or       

                                                                                

25  her postsecondary enrollment, including necessary travel time, on the       

                                                                                

26  number of class hours provided by the district to the pupil.                

                                                                                

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


                                                                                

1   be determined by dividing the number of class hours scheduled and           

                                                                                

2   provided per year per kindergarten pupil by a number equal to 1/2 the       

                                                                                

3   number used for determining full-time equated memberships for pupils in     

                                                                                

4   grades 1 to 12.                                                             

                                                                                

5       (s) For a district, university school, or public school academy             

                                                                                

6   that has pupils enrolled in a grade level that was not offered by the       

                                                                                

7   district, university school, or public school academy in the immediately    

                                                                                

8   preceding school year, the number of pupils enrolled in that grade level    

                                                                                

9   to be counted in membership is the average of the number of those pupils    

                                                                                

10  enrolled and in regular daily attendance on the pupil membership count      

                                                                                

11  day and the supplemental count day of the current school year, as           

                                                                                

12  determined by the department.  Membership shall be calculated by adding     

                                                                                

13  the number of pupils registered for attendance in that grade level on       

                                                                                

14  the pupil membership count day plus pupils received by transfer and         

                                                                                

15  minus pupils lost as defined by rules promulgated by the superintendent,    

                                                                                

16  and as corrected by subsequent department audit, plus the final audited     

                                                                                

17  count from the supplemental count day for the current school year, and      

                                                                                

18  dividing that sum by 2.                                                     

                                                                                

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

                                                                                

20  counted in membership in the pupil's district of residence with the         

                                                                                

21  written approval of all parties to the cooperative agreement.               

                                                                                

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

                                                                                

23  determines through the district's alternative or disciplinary education     

                                                                                

24  program that the best instructional placement for a pupil is in the         

                                                                                

25  pupil's home, if that placement is authorized in writing by the district    

                                                                                

26  superintendent and district alternative or disciplinary education           

                                                                                

27  supervisor, and if the district provides appropriate instruction as         


                                                                                

1   described in this subdivision to the pupil at the pupil's home, the         

                                                                                

2   district may count the pupil in membership on a pro rata basis, with the    

                                                                                

3   proration based on the number of hours of instruction the district          

                                                                                

4   actually provides to the pupil divided by the number of hours specified     

                                                                                

5   in subdivision (q)  for full-time equivalency.  For the purposes of this    

                                                                                

6   subdivision, a district shall be considered to be providing appropriate     

                                                                                

7   instruction if all of the following are met:                                

                                                                                

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

                                                                                

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

                                                                                

10  supervision of a certificated teacher.                                      

                                                                                

11      (ii) The district provides instructional materials, resources, and          

                                                                                

12  supplies, except computers, that are comparable to those otherwise          

                                                                                

13  provided in the district's alternative education program.                   

                                                                                

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

                                                                                

15  alternative education program.                                              

                                                                                

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

                                                                                

17  pupil's transcript.                                                         

                                                                                

18      (v) A pupil enrolled in an alternative or disciplinary education            

                                                                                

19  program described in section 25 shall be counted in membership in the       

                                                                                

20  district or public school academy that expelled the pupil.                  

                                                                                

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

                                                                                

22  pupil membership count day, if the public school academy's contract with    

                                                                                

23  its authorizing body is revoked or the public school academy otherwise      

                                                                                

24  ceases to operate, and if the pupil enrolls in a district within 45 days    

                                                                                

25  after the pupil membership count day, the department shall adjust the       

                                                                                

26  district's pupil count for the pupil membership count day to include the    

                                                                                

27  pupil in the count.                                                         


                                                                                

1       (x) For a public school academy that has been in operation for at           

                                                                                

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

                                                                                

3   is resuming operations, membership is the sum of the product of .8 .5       

                                                                                

4   times the number of full-time equated pupils in grades K to 12 actually     

                                                                                

5   enrolled and in regular daily attendance on the first pupil membership      

                                                                                

6   count day or supplemental count day, whichever is first, occurring after    

                                                                                

7   operations resume, plus the product of .2 .5 times the final audited        

                                                                                

8   count from the most recent pupil membership count day or supplemental       

                                                                                

9   count day that occurred before suspending operations, as determined by      

                                                                                

10  the superintendent.                                                         

                                                                                

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

                                                                                

12  otherwise calculated under this subsection, would be less than 1,550        

                                                                                

13  pupils and the district has 4.5 or fewer pupils per square mile, as         

                                                                                

14  determined by the department, the district's membership shall be            

                                                                                

15  considered to be the membership figure calculated under this                

                                                                                

16  subdivision.  If a district educates and counts in its membership pupils    

                                                                                

17  in grades 9 to 12 who reside in a contiguous district that does not         

                                                                                

18  operate grades 9 to 12 and if 1 or both of the affected districts           

                                                                                

19  request the department to use the determination allowed under this          

                                                                                

20  sentence, the department shall include the square mileage of both           

                                                                                

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

                                                                                

22  of the districts for the purposes of this subdivision.  The membership      

                                                                                

23  figure calculated under this subdivision is the greater of the              

                                                                                

24  following:                                                                  

                                                                                

25      (i) The average of the district's membership for the 3-fiscal-year          

                                                                                

26  period ending with that fiscal year, calculated by adding the district's    

                                                                                

27  actual membership for each of those 3 fiscal years, as otherwise            


                                                                                

1   calculated under this subsection, and dividing the sum of those 3           

                                                                                

2   membership figures by 3.                                                    

                                                                                

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

                                                                                

4   otherwise calculated under this subsection.                                 

                                                                                

5       (y) (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 does not    

                                                                                

7   reopen for the next school year, the department shall adjust the            

                                                                                

8   membership count of the district in which a former pupil of the public      

                                                                                

9   school academy enrolls and is in regular daily attendance for the next      

                                                                                

10  school year to ensure that the district receives the same amount of         

                                                                                

11  membership aid for the pupil as if the pupil were counted in the            

                                                                                

12  district on the supplemental count day of the preceding school year.        

                                                                                

13      (5) "Public school academy" means a public school academy, urban            

                                                                                

14  high school academy or strict discipline academy operating under the        

                                                                                

15  revised school code.                                                        

                                                                                

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

                                                                                

17  district must have the approval of the pupil's district of residence to     

                                                                                

18  count the pupil in membership, except approval by the pupil's district      

                                                                                

19  of residence shall not be required for any of the following:                

                                                                                

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

                                                                                

21  accordance with section 166b.                                               

                                                                                

22      (b) A pupil receiving 1/2 or less of his or her instruction in a            

                                                                                

23  district other than the pupil's district of residence.                      

                                                                                

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

                                                                                

25  school.                                                                     

                                                                                

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

                                                                                

27  of residence under an intermediate district schools of choice pilot         


                                                                                

1   program as described in section 91a or former section 91 if the             

                                                                                

2   intermediate district and its constituent districts have been exempted      

                                                                                

3   from section 105.                                                           

                                                                                

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

                                                                                

5   of residence but within the same intermediate district if the educating     

                                                                                

6   district enrolls nonresident pupils if the pupil was enrolled in            

                                                                                

7   accordance with section 105 or section 105c.                                

                                                                                

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

                                                                                

9   of residence if the pupil has been continuously enrolled in the             

                                                                                

10  educating district since a school year in which the pupil enrolled in       

                                                                                

11  the educating district under section 105 or 105c and in which the           

                                                                                

12  educating district enrolled nonresident pupils in accordance with           

                                                                                

13  section 105 or 105c.                                                        

                                                                                

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

                                                                                

15  whose parent or legal guardian has made an official written complaint to    

                                                                                

16  law enforcement officials and to school officials of the pupil's            

                                                                                

17  district of residence that the pupil has been the victim of a criminal      

                                                                                

18  sexual assault or other serious assault, if the official complaint          

                                                                                

19  either indicates that the assault occurred at school or that the assault    

                                                                                

20  was committed by 1 or more other pupils enrolled in the school the pupil    

                                                                                

21  would otherwise attend in the district of residence or by an employee of    

                                                                                

22  the district of residence.  A person who intentionally makes a false        

                                                                                

23  report of a crime to law enforcement officials for the purposes of this     

                                                                                

24  subdivision is subject to section 411a of the Michigan penal code, 1931     

                                                                                

25  PA 328, MCL 750.411a, which provides criminal penalties for that            

                                                                                

26  conduct.  As used in this subdivision:                                      

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   premises.                                                                   

                                                                                

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

                                                                                

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

                                                                                

6   750.81 to 750.90g, or that constitutes an assault and infliction of         

                                                                                

7   serious or aggravated injury under section 81a of the Michigan penal        

                                                                                

8   code, 1931 PA 328, MCL 750.81a.                                             

                                                                                

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

                                                                                

10  intermediate district, as described in section 105c, if the educating       

                                                                                

11  district enrolls those nonresident pupils in accordance with section        

                                                                                

12  105c.                                                                       

                                                                                

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

                                                                                

14  pupil membership count day and before the supplemental count day and who    

                                                                                

15  continues to be enrolled on the supplemental count day as a nonresident     

                                                                                

16  in the district in which he or she was enrolled as a resident on the        

                                                                                

17  pupil membership count day of the same school year.                         

                                                                                

18      (h) (j) A pupil enrolled in an alternative education program                

                                                                                

19  operated by a district other than his or her district of residence who      

                                                                                

20  meets 1 or more of the following:                                           

                                                                                

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

                                                                                

22  district of residence for any reason, including, but not limited to, a      

                                                                                

23  suspension or expulsion under section 1310, 1311, or 1311a of the           

                                                                                

24  revised school code, MCL 380.1310, 380.1311, and 380.1311a.                 

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

1       (i) (k)  A pupil enrolled in the Michigan virtual high school, for          

                                                                                

2   the pupil's enrollment in the Michigan virtual high school.                 

                                                                                

3   However, if a district that is not a first class district educates          

                                                                                

4   pupils who reside in a first class district and if the primary              

                                                                                

5   instructional site for those pupils is located within the boundaries of     

                                                                                

6   the first class district, the educating district must have the approval     

                                                                                

7   of the first class district to count those pupils in membership.  As        

                                                                                

8   used in this subsection, "first class district" means a district            

                                                                                

9   organized as a school district of the first class under the revised         

                                                                                

10  school code.                                                                

                                                                                

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

                                                                                

12  district means:                                                             

                                                                                

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

                                                                                

14  September each school year.                                                 

                                                                                

15      (b) For a district or intermediate district maintaining school              

                                                                                

16  during the entire school year, the following days:                          

                                                                                

17      (i) Fourth Wednesday in July.                                               

                                                                                

18      (ii) Fourth Wednesday in September.                                         

                                                                                

19      (iii) Second Wednesday in February.                                         

                                                                                

20      (iv) Fourth Wednesday in April.                                             

                                                                                

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

                                                                                

22  daily attendance" means pupils in grades K to 12 in attendance and          

                                                                                

23  receiving instruction in all classes for which they are enrolled on the     

                                                                                

24  pupil membership count day or the supplemental count day, as applicable.    

                                                                                

25  A pupil who is absent from any of the classes in which the pupil is         

                                                                                

26  enrolled on the pupil membership count day or supplemental count day and    

                                                                                

27  who does not attend each of those classes during the 10 consecutive         


                                                                                

1   school days immediately following the pupil membership count day or         

                                                                                

2   supplemental count day, except for a pupil who has been excused by the      

                                                                                

3   district, shall not be counted as 1.0 full-time equated membership.  In     

                                                                                

4   addition, a pupil who is excused from attendance on the pupil membership    

                                                                                

5   count day or supplemental count day and who fails to attend each of the     

                                                                                

6   classes in which the pupil is enrolled within 30 calendar days after the    

                                                                                

7   pupil membership count day or supplemental count day shall not be           

                                                                                

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

                                                                                

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

                                                                                

10  counted as a prorated membership for the classes the pupil attended.        

                                                                                

11  For purposes of this subsection, "class" means a period of time in 1 day    

                                                                                

12  when pupils and a certificated teacher or legally qualified substitute      

                                                                                

13  teacher are together and instruction is taking place.                       

                                                                                

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

                                                                                

15  procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.                  

                                                                                

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

                                                                                

17  380.1852.                                                                   

                                                                                

18      (11) "School fiscal year" means a fiscal year that commences July           

                                                                                

19  1 and continues through June 30.                                            

                                                                                

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

                                                                                

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

                                                                                

22  district or intermediate district superintendent, means the                 

                                                                                

23  superintendent of public instruction described in section 3 of article      

                                                                                

24  VIII of the state constitution of 1963.                                     

                                                                                

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

                                                                                

26  supplemental pupil count is conducted under section 6a.                     

                                                                                

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


                                                                                

1   in a district other than the pupil's district of residence for whom         

                                                                                

2   tuition may be charged.  Tuition pupil does not include a pupil who is a    

                                                                                

3   special education pupil or a pupil described in subsection (6)(d) to (k)    

                                                                                

4   (i).  A pupil's district of residence shall not require a high school       

                                                                                

5   tuition pupil, as provided under section 111, to attend another school      

                                                                                

6   district after the pupil has been assigned to a school district.            

                                                                                

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

                                                                                

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

                                                                                

9   1963.                                                                       

                                                                                

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

                                                                                

11  determined under section 27a of the general property tax act, 1893 PA       

                                                                                

12  206, MCL 211.27a.                                                           

                                                                                

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

                                                                                

14  governing board of a district and that contains a presentation of           

                                                                                

15  principles of a subject, or that is a literary work relevant to the         

                                                                                

16  study of a subject required for the use of classroom pupils, or another     

                                                                                

17  type of course material that forms the basis of classroom instruction.      

                                                                                

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

                                                                                

19  combined amount of all funds due to a district, intermediate district,      

                                                                                

20  or other entity under all of the provisions of this act.                    

                                                                                

21      (20) "University school" means an instructional program operated            

                                                                                

22  by a public university under section 23 that meets the requirements of      

                                                                                

23  section 23.                                                                 

                                                                                

24      Sec. 11. (1) For the fiscal year ending September 30, 2004, there           

                                                                                

25  is appropriated for the public schools of this state and certain other      

                                                                                

26  state purposes relating to education the sum of $10,962,387,100.00 from     

                                                                                

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


                                                                                

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

                                                                                

2   general fund. 2005, there is appropriated for the public schools of this    

                                                                                

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

                                                                                

4   $11,033,722,200.00 from the state school aid fund established by section    

                                                                                

5   11 of article IX of the state constitution of 1963 and the sum of           

                                                                                

6   $131,800,000.00 from the general fund. For the fiscal year ending           

                                                                                

7   September 30, 2003, from loan repayments deposited to the general fund      

                                                                                

8   pursuant to section 4 of 1961 PA 112, MCL 388.984, on the settlement        

                                                                                

9   date, as determined under section 9c of 1961 PA 108, MCL 388.959c, there    

                                                                                

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

                                                                                

11  amount determined by the state treasurer to equal the difference between    

                                                                                

12  the outstanding amount of general obligation debt incurred pursuant to      

                                                                                

13  1961 PA 112, MCL 388.981 to 388.985, and the outstanding amount of loans    

                                                                                

14  under 1961 PA 108, MCL 388.951 to 388.963, as reduced in accordance with    

                                                                                

15  section 9c(1) of 1961 PA 108, MCL 388.959c. In addition, for the fiscal     

                                                                                

16  year ending September 30, 2003, there is appropriated from the general      

                                                                                

17  fund to the state school aid fund an amount equal to the amount of all      

                                                                                

18  school bond loan fund repayments received by the state treasurer from       

                                                                                

19  June 1, 2003 through December 21, 2003, determined by the state             

                                                                                

20  treasurer not to have been paid from proceeds of bonds of the school        

                                                                                

21  district and representing the difference between the outstanding amount     

                                                                                

22  of general obligation debt incurred by this state under 1961 PA 112, MCL    

                                                                                

23  388.981 to 388.985, and the outstanding amount of loans under 1961 PA       

                                                                                

24  108, MCL 388.951 to 388.963, at the time of repayment. Funds                

                                                                                

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

                                                                                

26  loan repayments received as described in this subsection shall be           

                                                                                

27  expended within 90 days of deposit within the state school aid fund. In     


                                                                                

1   addition, available federal funds are appropriated for each of those the    

                                                                                

2   fiscal years. year ending September 30, 2005.                               

                                                                                

3       (2) The appropriations under this section shall be allocated as             

                                                                                

4   provided in this act. Money appropriated under this section from the        

                                                                                

5   general fund shall be expended to fund the purposes of this act before      

                                                                                

6   the expenditure of money appropriated under this section from the state     

                                                                                

7   school aid fund. If the maximum                                             

                                                                                

8   amount appropriated under this section from the state school aid fund       

                                                                                

9   for a fiscal year exceeds the amount necessary to fully fund allocations    

                                                                                

10  under this act from the state school aid fund, that excess amount shall     

                                                                                

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

                                                                                

12  general fund, but instead shall be deposited into the school aid            

                                                                                

13  stabilization fund created in section 11a.                                  

                                                                                

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

                                                                                

15  state school aid fund and the school aid stabilization fund for a fiscal    

                                                                                

16  year exceeds the amount available for expenditure from the state school     

                                                                                

17  aid fund for that fiscal                                                    

                                                                                

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

                                                                                

19  51a(12),and 51c, and 53a shall be made in full. In addition, for            

                                                                                

20  districts beginning operations after 1994-95 that qualify for payments      

                                                                                

21  under section 22b, payments under section 22b shall be made so that the     

                                                                                

22  qualifying districts receive the lesser of an amount equal to the 1994-     

                                                                                

23  95 foundation allowance of the district in which the district beginning     

                                                                                

24  operations after 1994-95 is located or $5,500.00. The amount of the         

                                                                                

25  payment to be made under section 22b for these qualifying districts         

                                                                                

26  shall be as calculated under section 22a, with the balance of the           

                                                                                

27  payment under section 22b being subject to the proration otherwise          


                                                                                

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

                                                                                

2   is necessary after 2002-2003, state payments under each of the other        

                                                                                

3   sections of this act from all state funding sources shall be prorated in    

                                                                                

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

                                                                                

5   amount available for expenditure from the state school aid fund for the     

                                                                                

6   affected fiscal year. However, if the department of treasury determines     

                                                                                

7   that proration will be required under this subsection, the department of    

                                                                                

8   treasury shall notify the state budget director, and the state budget       

                                                                                

9   director shall notify the legislature at least 30 calendar days or 6        

                                                                                

10  legislative session days, whichever is more, before the department          

                                                                                

11  reduces any payments under this act because of the proration. During the    

                                                                                

12  30 calendar day or 6 legislative session day period after that              

                                                                                

13  notification by the state budget director, the department shall not         

                                                                                

14  reduce any payments under this act because of proration under this          

                                                                                

15  subsection. The legislature may prevent proration from occurring by,        

                                                                                

16  within the 30 calendar day or 6 legislative session day period after        

                                                                                

17  that notification by the state budget director, enacting legislation        

                                                                                

18  appropriating additional funds from the general fund, countercyclical       

                                                                                

19  budget and economic stabilization fund, state school aid fund balance,      

                                                                                

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

                                                                                

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

                                                                                

22  department shall calculate the proration in district and intermediate       

                                                                                

23  district payments that is required under subsection (3) as follows:         

                                                                                

24      (a) The department shall calculate the percentage of total state            

                                                                                

25  school aid allocated under this act for the affected fiscal year for        

                                                                                

26  each of the following:                                                      

                                                                                

27      (i) Districts.                                                              


                                                                                

1       (ii) Intermediate districts.                                                

                                                                                

2       (iii) Entities other than districts or intermediate districts.              

                                                                                

3       (b) The department shall recover a percentage of the proration              

                                                                                

4   amount required under subsection (3) that is equal to the percentage        

                                                                                

5   calculated under subdivision (a)(i) for districts by reducing payments      

                                                                                

6   to districts. This reduction shall be made by calculating an equal          

                                                                                

7   dollar amount per pupil as necessary to recover this percentage of the      

                                                                                

8   proration amount and reducing each district's total state school aid        

                                                                                

9   from state sources, other than payments under sections 11f, 11g, 11j,       

                                                                                

10  22a, 26a, 31d, 51a(2), 51a(12), 51c, and 53a, and 56, by that amount.       

                                                                                

11      (c) The department shall recover a percentage of the proration              

                                                                                

12  amount required under subsection (3) that is equal to the percentage        

                                                                                

13  calculated under subdivision (a)(ii) for intermediate districts by          

                                                                                

14  reducing payments to intermediate districts. This reduction shall be        

                                                                                

15  made by reducing the payments to each intermediate district, other than     

                                                                                

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

                                                                                

17  and 53a, and 56, on an equal percentage basis.                              

                                                                                

18      (d) The department shall recover a percentage of the proration              

                                                                                

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

                                                                                

20  calculated under subdivision (a)(iii) for entities other than districts     

                                                                                

21  and intermediate districts by reducing payments to these entities. This     

                                                                                

22  reduction shall be made by reducing the payments to each of these           

                                                                                

23  entities on an equal percentage basis.                                      

                                                                                

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

                                                                                

25  allocations under this act that are not expended by the end of the state    

                                                                                

26  fiscal year are transferred to the state school aid fund.                   

                                                                                

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


                                                                                

1   there is allocated for 2003-2004 2004-2005 the sum of $22,000,000.00        

                                                                                

2   $5,000,000.00 for deposit into the school aid stabilization fund created    

                                                                                

3   in section 11a.                                                             

                                                                                

4       Sec. 11f. (1) From the appropriations under section 11, there is            

                                                                                

5   allocated for the purposes of this section an amount not to exceed          

                                                                                

6   $32,000,000.00 for the fiscal year ending September 30, 2004 2005 and       

                                                                                

7   for each succeeding fiscal year through the fiscal year ending September    

                                                                                

8   30, 2008.  Payments under this section will cease after September 30,       

                                                                                

9   2008.  These allocations are for paying the amounts described in            

                                                                                

10  subsection (4) to districts and intermediate districts, other than those    

                                                                                

11  receiving a lump sum payment under subsection (2), that were not            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

15  resolution waiving any right or interest the district or intermediate       

                                                                                

16  district has or may have in any claim or litigation based on or arising     

                                                                                

17  out of any claim or potential claim through September 30, 1997 that is      

                                                                                

18  or was similar to the claims asserted by the plaintiffs in the              

                                                                                

19  consolidated cases known as Durant v State of Michigan.  The waiver         

                                                                                

20  resolution shall be in form and substance as required under subsection      

                                                                                

21  (7).  The state treasurer is authorized to accept such a waiver             

                                                                                

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

                                                                                

23  subsection represent offers of settlement and compromise of any claim or    

                                                                                

24  claims that were or could have been asserted by these districts and         

                                                                                

25  intermediate districts, as described in this subsection.                    

                                                                                

26      (2) In addition to any other money appropriated under this act,             

                                                                                

27  there was appropriated from the state school aid fund an amount not to      


                                                                                

1   exceed $1,700,000.00 for the fiscal year ending September 30, 1999.         

                                                                                

2   This appropriation was for paying the amounts described in this             

                                                                                

3   subsection to districts and intermediate districts that were not            

                                                                                

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

                                                                                

5   Michigan; that, on or before March 2, 1998, submitted to the state          

                                                                                

6   treasurer a board resolution waiving any right or interest the district     

                                                                                

7   or intermediate district had or may have had in any claim or litigation     

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

11  Michigan; and for which the total amount listed in section 11h and paid     

                                                                                

12  under this section was less than $75,000.00.  For a district or             

                                                                                

13  intermediate district qualifying for a payment under this subsection,       

                                                                                

14  the entire amount listed for the district or intermediate district in       

                                                                                

15  section 11h was paid in a lump sum on November 15, 1998 or on the next      

                                                                                

16  business day following that date.  The amounts paid under this              

                                                                                

17  subsection represent offers of settlement and compromise of any claim or    

                                                                                

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

                                                                                

19  intermediate districts, as described in this subsection.                    

                                                                                

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

                                                                                

21  this state to any district or intermediate district that does not submit    

                                                                                

22  A waiver resolution described in this section. This section, any other      

                                                                                

23  provision of this act, and section 353e of the management and budget        

                                                                                

24  act, 1984 PA 431, MCL 18.1353e, are not intended to admit liability or      

                                                                                

25  waive any defense that is or would be available to this state or its        

                                                                                

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

                                                                                

27  with a district or intermediate district.                                   


                                                                                

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

                                                                                

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

                                                                                

3   amount listed in section 11h for each listed district or intermediate       

                                                                                

4   district that qualifies for a payment under subsection (1).  The amounts    

                                                                                

5   listed in section 11h and paid in part under this subsection and in a       

                                                                                

6   lump sum under subsection (2) are offers of settlement and compromise to    

                                                                                

7   each of these districts or intermediate districts to resolve, in their      

                                                                                

8   entirety, any claim or claims that these districts or intermediate          

                                                                                

9   districts may have asserted for violations of section 29 of article IX      

                                                                                

10  of the state constitution of 1963 through September 30, 1997, which         

                                                                                

11  claims are or were similar to the claims asserted by the plaintiffs in      

                                                                                

12  the consolidated cases known as Durant v State of Michigan.  This           

                                                                                

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

                                                                                

14  management and budget act, 1984 PA 431, MCL 18.1353e, shall not be          

                                                                                

15  construed to constitute an admission of liability to the districts or       

                                                                                

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

                                                                                

17  that is or would have been available to the state or its agencies,          

                                                                                

18  employees, or agents in any litigation or future litigation with a          

                                                                                

19  district or intermediate district.                                          

                                                                                

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

                                                                                

21  fiscal year shall be paid on November 15 of the applicable fiscal year      

                                                                                

22  or on the next business day following that date.                            

                                                                                

23      (6) Funds paid to a district or intermediate district under this            

                                                                                

24  section shall be used only for textbooks, electronic instructional          

                                                                                

25  material, software, technology, infrastructure or infrastructure            

                                                                                

26  improvements, school buses, school security, training for technology, or    

                                                                                

27  to pay debt service on voter-approved bonds issued by the district or       


                                                                                

1   intermediate district before the effective date of this section.  For       

                                                                                

2   intermediate districts only, funds paid under this section may also be      

                                                                                

3   used for other nonrecurring instructional expenditures including, but       

                                                                                

4   not limited to, nonrecurring instructional expenditures for vocational      

                                                                                

5   education, or for debt service for acquisition of technology for            

                                                                                

6   academic support services.  Funds received by an intermediate district      

                                                                                

7   under this section may be used for projects conducted for the benefit of    

                                                                                

8   its constituent districts at the discretion of the intermediate board.      

                                                                                

9   To the extent payments under this section are used by a district or         

                                                                                

10  intermediate district to pay debt service on debt payable from millage      

                                                                                

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

                                                                                

12  intermediate district may make a corresponding reduction in the number      

                                                                                

13  of mills levied for that debt service.                                      

                                                                                

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

                                                                                

15  intermediate district under this section and section 11g shall read as      

                                                                                

16  follows:                                                                    

                                                                                

17      "Whereas, the board of ____________________ (name of district or            

                                                                                

18  intermediate district) desires to settle and compromise, in their           

                                                                                

19  entirety, any claim or claims that the district (or intermediate            

                                                                                

20  district) has or had for violations of section 29 of article IX of the      

                                                                                

21  state constitution of 1963, which claim or claims are or were similar to    

                                                                                

22  the claims asserted by the plaintiffs in the consolidated cases known as    

                                                                                

23  Durant v State of Michigan, Michigan supreme court docket no. 104458-       

                                                                                

24  104492.                                                                     

                                                                                

25      Whereas, the district (or intermediate district) agrees to settle           

                                                                                

26  and compromise these claims for the consideration described in sections     

                                                                                

27  11f and 11g of the state school aid act of 1979, 1979 PA 94, MCL            


                                                                                

1   388.1611f and 388.1611g, and in the amount specified for the district       

                                                                                

2   (or intermediate district) in section 11h of the state school aid act of    

                                                                                

3   1979, 1979 PA 94, MCL 388.1611h.                                            

                                                                                

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

                                                                                

5   intermediate district) is authorized to adopt this resolution.              

                                                                                

6       Now, therefore, be it resolved as follows:                                  

                                                                                

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

                                                                                

8   intermediate district) waives any right or interest it may have in any      

                                                                                

9   claim or potential claim through September 30, 1997 relating to the         

                                                                                

10  amount of funding the district or intermediate district is, or may have     

                                                                                

11  been, entitled to receive under the state school aid act of 1979, 1979      

                                                                                

12  PA 94, MCL 388.1601 to 388.1772, or any other source of state funding,      

                                                                                

13  by reason of the application of section 29 of article IX of the state       

                                                                                

14  constitution of 1963, which claims or potential claims are or were          

                                                                                

15  similar to the claims asserted by the plaintiffs in the consolidated        

                                                                                

16  cases known as Durant v State of Michigan, Michigan supreme court docket    

                                                                                

17  no. 104458-104492.                                                          

                                                                                

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

                                                                                

19  intermediate district) directs its secretary to submit a certified copy     

                                                                                

20  of this resolution to the state treasurer no later than 5 p.m. eastern      

                                                                                

21  standard time on March 2, 1998, and agrees that it will not take any        

                                                                                

22  action to amend or rescind this resolution.                                 

                                                                                

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

                                                                                

24  intermediate district) expressly agrees and understands that, if it         

                                                                                

25  takes any action to amend or rescind this resolution, the state, its        

                                                                                

26  agencies, employees, and agents shall have available to them any            

                                                                                

27  privilege, immunity, and/or defense that would otherwise have been          


                                                                                

1   available had the claims or potential claims been actually litigated in     

                                                                                

2   any forum.                                                                  

                                                                                

3                                                                                4.  This resolution is contingent on continued payments by the                      

                                                                                

4   state each fiscal year as determined under sections 11f and 11g of the      

                                                                                

5   state school aid act of 1979, 1979 PA 94, MCL 388.1611f and 388.1611g.      

                                                                                

6   However, this resolution shall be an irrevocable waiver of any claim to     

                                                                                

7   amounts actually received by the school district or intermediate school     

                                                                                

8   district under sections 11f and 11g of the state school aid act of          

                                                                                

9   1979."                                                                      

                                                                                

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

                                                                                

11  section 11, there is allocated an amount not to exceed $141,000.00 each     

                                                                                

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

                                                                                

13  fiscal year ending September 30, 2004, and for the fiscal year ending       

                                                                                

14  September 30, 2005.  There is allocated an amount not to exceed             

                                                                                

15  $34,200,000.00 $35,000,000.00 for each succeeding fiscal year through       

                                                                                

16  the fiscal year ending September 30, 2013.  Payments under this section     

                                                                                

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

                                                                                

18  the amounts described in subsection (3) to districts and intermediate       

                                                                                

19  districts, other than those receiving a lump sum payment under section      

                                                                                

20  11f(2), that were not plaintiffs in the consolidated cases known as         

                                                                                

21  Durant v State of Michigan, Michigan supreme court docket no. 104458-       

                                                                                

22  104492 and that, on or before March 2, 1998, submitted to the state         

                                                                                

23  treasurer a waiver resolution described in section 11f.  The amounts        

                                                                                

24  paid under this section represent offers of settlement and compromise of    

                                                                                

25  any claim or claims that were or could have been asserted by these          

                                                                                

26  districts and intermediate districts, as described in this section.         

                                                                                

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


                                                                                

1   this state to any district or intermediate district that does not submit    

                                                                                

2   A waiver resolution described in section 11f. This section, any other       

                                                                                

3   provision of this act, and section 353e of the management and budget        

                                                                                

4   act, 1984 PA 431, MCL 18.1353e, are not intended to admit liability or      

                                                                                

5   waive any defense that is or would be available to this state or its        

                                                                                

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

                                                                                

7   with a district or intermediate district regarding these claims or          

                                                                                

8   potential claims.                                                           

                                                                                

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

                                                                                

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

                                                                                

11  following:                                                                  

                                                                                

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

                                                                                

13  district or intermediate district.                                          

                                                                                

14      (b) If the district or intermediate district borrows money and              

                                                                                

15  issues bonds under section 11i, an additional amount in each fiscal year    

                                                                                

16  calculated by the department of treasury that, when added to the amount     

                                                                                

17  described in subdivision (a), will cause the net present value as of        

                                                                                

18  November 15, 1998 of the total of the 15 annual payments made to the        

                                                                                

19  district or intermediate district under this section, discounted at a       

                                                                                

20  rate as determined by the state treasurer, to equal the amount of the       

                                                                                

21  bonds issued by that district or intermediate district under section 11i    

                                                                                

22  and that will result in the total payments made to all districts and        

                                                                                

23  intermediate districts in each fiscal year under this section being no      

                                                                                

24  more than the amount appropriated under this section in each fiscal         

                                                                                

25  year.                                                                       

                                                                                

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

                                                                                

27  fiscal year shall be paid on May 15 of the applicable fiscal year or on     


                                                                                

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

                                                                                

2   intermediate district borrows money and issues bonds under section 11i,     

                                                                                

3   the district or intermediate district shall use funds received under        

                                                                                

4   this section to pay debt service on bonds issued under section 11i.  If     

                                                                                

5   A district or intermediate district does not borrow money and issue         

                                                                                

6   bonds under section 11i, the district or intermediate district shall use    

                                                                                

7   funds received under this section only for the following purposes, in       

                                                                                

8   the following order of priority:                                            

                                                                                

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

                                                                                

10  the district or intermediate district before the effective date of this     

                                                                                

11  section.                                                                    

                                                                                

12      (b) Second, to pay debt service on other limited tax obligations.           

                                                                                

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

                                                                                

14  district or intermediate district under the revised school code.            

                                                                                

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

                                                                                

16  district or intermediate district to pay debt service on debt payable       

                                                                                

17  from millage revenues, and to the extent permitted by law, the district     

                                                                                

18  or intermediate district may make a corresponding reduction in the          

                                                                                

19  number of mills levied for debt service.                                    

                                                                                

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

                                                                                

21  payments under this section as security for bonds issued under section      

                                                                                

22  11i, but shall not otherwise pledge or assign payments under this           

                                                                                

23  section.                                                                    

                                                                                

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

                                                                                

25  an amount not to exceed $28,300,000.00 $41,100,000.00 for 2003-2004         

                                                                                

26  2004-2005 for payments to the school loan bond redemption fund on behalf    

                                                                                

27  of districts and intermediate school districts to in the department of      


                                                                                

1   treasury.                                                                   

                                                                                

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

                                                                                

3   apportionments and limitations of the apportionments made under this act    

                                                                                

4   shall be made on the membership and number of teachers and other            

                                                                                

5   professionals approved by the superintendent employed as of the pupil       

                                                                                

6   membership count day of each year and on the taxable value and the          

                                                                                

7   operating millage of each district for the calendar year. In addition, a    

                                                                                

8   district maintaining school during the entire year, as provided in          

                                                                                

9   section 1561 of the revised school code, MCL 380.1561, shall count          

                                                                                

10  memberships and teachers educational personnel pursuant to rules            

                                                                                

11  promulgated by the superintendent and shall report to the center as         

                                                                                

12  required by state and federal law.                                          

                                                                                

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

                                                                                

14  receive its proper apportionment, the department, upon satisfactory         

                                                                                

15  proof that the district or intermediate district was entitled justly,       

                                                                                

16  shall apportion the deficiency in the remaining apportionments next         

                                                                                

17  apportionment.  Subject to subsections (2) and (3), if a district or        

                                                                                

18  intermediate district has received more than its proper apportionment,      

                                                                                

19  the department, upon satisfactory proof, shall deduct the excess in the     

                                                                                

20  remaining apportionments next apportionment.  Notwithstanding any other     

                                                                                

21  provision in this act, state aid overpayments to a district, other than     

                                                                                

22  overpayments in payments for special education or special education         

                                                                                

23  transportation, may be recovered from any payment made under this act       

                                                                                

24  other than a special education or special education transportation          

                                                                                

25  payment. State aid overpayments made in special education or special        

                                                                                

26  education transportation payments may be recovered from subsequent          

                                                                                

27  special education or special education transportation payments.             


                                                                                

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

                                                                                

2   affects the current fiscal year membership, affected payments shall be      

                                                                                

3   adjusted in the current fiscal year.  A deduction due to an adjustment      

                                                                                

4   made as a result of an audit conducted by or for the department, or as a    

                                                                                

5   result of information obtained by the department from the district, an      

                                                                                

6   intermediate district, the department of treasury, or the office of         

                                                                                

7   auditor general, shall be deducted from the district's apportionments       

                                                                                

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

                                                                                

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

                                                                                

10  district presenting evidence satisfactory to the department of the          

                                                                                

11  hardship, the department may grant up to an additional 4 years for the      

                                                                                

12  adjustment if the district would otherwise experience a significant         

                                                                                

13  hardship.                                                                   

                                                                                

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

                                                                                

15  department determines during a fiscal year that the amount paid to a        

                                                                                

16  district or intermediate district under this act for a prior fiscal year    

                                                                                

17  was incorrect under the law in effect for that year, the department may     

                                                                                

18  make the appropriate deduction or payment in the district's or              

                                                                                

19  intermediate district's allocation for the fiscal year in which the         

                                                                                

20  determination is made.  The deduction or payment shall be calculated        

                                                                                

21  according to the law in effect in the fiscal year in which the improper     

                                                                                

22  amount was paid.                                                            

                                                                                

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

                                                                                

24  caused by the write-off of prior year accruals may be funded by revenue     

                                                                                

25  from the write-off of prior year accruals.                                  

                                                                                

26      Sec. 18. (1) Except as provided in another section of this act,             

                                                                                

27  each district or other entity shall apply the money received by the         


                                                                                

1   district or entity under this act to salaries and other compensation of     

                                                                                

2   teachers and other employees, tuition, transportation, lighting,            

                                                                                

3   heating, ventilation, water service, the purchase of textbooks which are    

                                                                                

4   designated by the board to be used in the schools under the board's         

                                                                                

5   charge, other supplies, and any other school operating expenditures         

                                                                                

6   defined in section 7.  However, not more than 20% of the total amount       

                                                                                

7   received by a district under article 2 or intermediate district under       

                                                                                

8   article 8 may be transferred by the board to either the capital projects    

                                                                                

9   fund or to the debt retirement fund for debt service.  The money shall      

                                                                                

10  not be applied or taken for a purpose other than as provided in this        

                                                                                

11  section.  The department shall determine the reasonableness of              

                                                                                

12  expenditures and may withhold from a recipient of funds under this act      

                                                                                

13  the apportionment otherwise due for the fiscal year following the           

                                                                                

14  discovery by the department of a violation by the recipient.                

                                                                                

15      (2) For the purpose of determining the reasonableness of                    

                                                                                

16  expenditures and whether a violation of this act has occurred, the          

                                                                                

17  department shall require that each district and intermediate district       

                                                                                

18  have an audit of the district's or intermediate district's financial and    

                                                                                

19  pupil accounting records conducted at least annually at the expense of      

                                                                                

20  the district or intermediate district, as applicable, by a certified        

                                                                                

21  public accountant or by the intermediate district superintendent, as may    

                                                                                

22  be required by the department, or in the case of a district of the first    

                                                                                

23  class by a certified public accountant, the intermediate superintendent,    

                                                                                

24  or the auditor general of the city.  An intermediate district's annual      

                                                                                

25  financial audit shall be accompanied by the intermediate district's         

                                                                                

26  pupil accounting procedures report. A district's or intermediate            

                                                                                

27  district's annual financial audit shall include an analysis of the          


                                                                                

1   financial and pupil accounting data used as the basis for distribution      

                                                                                

2   of state school aid.  The pupil accounting records and reports, audits,     

                                                                                

3   and management letters are subject to requirements established in the       

                                                                                

4   auditing and accounting manuals approved and published by the               

                                                                                

5   department.  Except as otherwise provided in this subsection, a district    

                                                                                

6   shall file the annual financial audit reports with the intermediate         

                                                                                

7   district and with the department not later than November 15 of each         

                                                                                

8   year. 120 days after the end of each school fiscal year and the             

                                                                                

9   intermediate district shall forward the annual financial audit reports      

                                                                                

10  for its constituent districts and for the The intermediate district         

                                                                                

11  shall file and the pupil accounting procedures report for the pupil         

                                                                                

12  membership count day and supplemental count day, to the department not      

                                                                                

13  later than November 15 of each year.  The annual financial audit reports    

                                                                                

14  and pupil accounting procedures reports shall be available to the public    

                                                                                

15  in compliance with the freedom of information act, 1976 PA 442, MCL         

                                                                                

16  15.231 to 15.246.  Not later than December 1 of each year, the              

                                                                                

17  department shall notify the state budget director and the legislative       

                                                                                

18  appropriations subcommittees responsible for review of the school aid       

                                                                                

19  budget of districts and intermediate districts that have not filed an       

                                                                                

20  annual financial audit and pupil accounting procedures report required      

                                                                                

21  under this section for the school year ending in the immediately            

                                                                                

22  preceding fiscal year.                                                      

                                                                                

23      (3) By November 15 of each year, each district and intermediate             

                                                                                

24  district shall submit to the center, in a manner prescribed by the          

                                                                                

25  center, annual comprehensive financial data consistent with accounting      

                                                                                

26  manuals and charts of accounts approved and published by the department.    

                                                                                

27      (4) By September 30 of each year, each district and intermediate            


                                                                                

1   district shall file with the department the special education actual        

                                                                                

2   cost report, known as "SE-4096", on a form and in the manner prescribed     

                                                                                

3   by the department.                                                          

                                                                                

4       (5) By October 7 of each year, each district and intermediate               

                                                                                

5   district shall file with the department the transportation expenditure      

                                                                                

6   report, known as "SE-4094", on a form and in the manner prescribed by       

                                                                                

7   the department.                                                             

                                                                                

8       (6) Not later than July 1, 1999, the department shall approve and           

                                                                                

9   publish pupil accounting and pupil auditing manuals.  The department        

                                                                                

10  shall review those manuals at least annually and shall periodically         

                                                                                

11  update those manuals to reflect changes in this act. The pupil              

                                                                                

12  accounting manuals in effect for the 1996-97 school year, including         

                                                                                

13  subsequent revisions issued by the superintendent, shall be the interim     

                                                                                

14  manuals in effect until new manuals are approved and published.             

                                                                                

15  However, the clarification of class-by-class accounting provided in the     

                                                                                

16  department's April 15, 1998 memorandum on pupil accounting procedures       

                                                                                

17  shall be excluded from the interim manuals.                                 

                                                                                

18      (7) If a district that is a public school academy purchases                 

                                                                                

19  property using money received under this act, the public school academy     

                                                                                

20  shall retain ownership of the property unless the public school academy     

                                                                                

21  sells the property at fair market value.                                    

                                                                                

22      (8) If a district or intermediate district does not comply with             

                                                                                

23  subsection (2),(3),(4), or (5), the department shall withhold all state     

                                                                                

24  school aid due to the district or intermediate district under this act,     

                                                                                

25  beginning with the next payment due to the district or intermediate         

                                                                                

26  district, until the district or intermediate district complies with         

                                                                                

27  subsections (2),(3),(4), and (5).  If the district or intermediate          


                                                                                

1   district does not comply with subsections (2),(3),(4), and (5) by the       

                                                                                

2   end of the fiscal year, the district or intermediate district forfeits      

                                                                                

3   the amount withheld.                                                        

                                                                                

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

                                                                                

5   intermediate district, or other entity, unless otherwise specified in       

                                                                                

6   this act, shall be expended by the grant recipient before the end of the    

                                                                                

7   school fiscal year immediately following the fiscal year in which the       

                                                                                

8   funds are received.  If a grant recipient does not expend the funds         

                                                                                

9   received under this act before the end of the fiscal year in which the      

                                                                                

10  funds are received, the grant recipient shall submit a report to the        

                                                                                

11  department not later than November 1 after the fiscal year in which the     

                                                                                

12  funds are received indicating whether it expects to expend those funds      

                                                                                

13  during the fiscal year in which the report is submitted.  A recipient of    

                                                                                

14  A grant shall return any unexpended grant funds to the department in the    

                                                                                

15  manner prescribed by the department not later than September 30 after       

                                                                                

16  the fiscal year in which the funds are received.                            

                                                                                

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

                                                                                

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

                                                                                

19  380.1204a, 380.1277, 380.1278, and 380.1280, commonly referred to as        

                                                                                

20  "public act 25 of 1990" that are not also required by the no child left     

                                                                                

21  behind act of 2001, Public Law 107-110, 115 Stat. 1425, as determined by    

                                                                                

22  the department.                                                             

                                                                                

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

                                                                                

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

                                                                                

25  information necessary for the development of an annual progress report      

                                                                                

26  on the required implementation of sections 1204a, 1277, 1278, and 1280      

                                                                                

27  of the revised school code, MCL 380.1204a, 380.1277, 380.1278, and          


                                                                                

1   380.1280, commonly referred to as "public act 25 of 1990".                  

                                                                                

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

                                                                                

3   applicable reporting requirements specified in state and federal law.       

                                                                                

4   Data provided to the center, in a form and manner prescribed by the         

                                                                                

5   center, shall be aggregated and disaggregated as required by state and      

                                                                                

6   federal law.                                                                

                                                                                

7       (4) Each district shall furnish to the center not later than 7              

                                                                                

8   weeks after the pupil membership count day, in a manner prescribed by       

                                                                                

9   the center, the information necessary for the preparation of the            

                                                                                

10  district and high school graduation report.  The center shall calculate     

                                                                                

11  an annual graduation and pupil dropout rate for each high school, each      

                                                                                

12  district, and this state, in compliance with nationally recognized          

                                                                                

13  standards for these calculations.  The center shall report all              

                                                                                

14  graduation and dropout rates to the senate and house education              

                                                                                

15  committees and appropriations committees, the state budget director, and    

                                                                                

16  the department not later than June 1 of each year.                          

                                                                                

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

                                                                                

18  by the center, information related to educational personnel as necessary    

                                                                                

19  for reporting required by state and federal law.                            

                                                                                

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

                                                                                

21  by the center, information related to safety practices and criminal         

                                                                                

22  incidents as necessary for reporting required by state and federal laws.    

                                                                                

23      (7) (6) If a district or intermediate district fails to meet the            

                                                                                

24  requirements of subsection (2), (3), (4), or (5), or (6) the department     

                                                                                

25  shall withhold 5% of the total funds for which the district or              

                                                                                

26  intermediate district qualifies under this act until the district or        

                                                                                

27  intermediate district complies with all of those subsections. If the        


                                                                                

1   district or intermediate district does not comply with all of those         

                                                                                

2   subsections by the end of the fiscal year, the department shall place       

                                                                                

3   the amount withheld in an escrow account until the district or              

                                                                                

4   intermediate district complies with all of those subsections.               

                                                                                

5       (7) If a school in a district is not accredited under section 1280          

                                                                                

6   of the revised school code, MCL 380.1280, or is not making satisfactory     

                                                                                

7   progress toward meeting the standards for that accreditation, the           

                                                                                

8   department shall withhold 5% of the total funds for which the district      

                                                                                

9   qualifies under this act that are attributable to pupils attending that     

                                                                                

10  school.  The department shall place the amount withheld from a district     

                                                                                

11  under this subsection in an escrow account and shall not release the        

                                                                                

12  funds to the district until the district submits to the department a        

                                                                                

13  plan for achieving accreditation for each of the district's schools that    

                                                                                

14  are not accredited under section 1280 of the revised school code, MCL       

                                                                                

15  380.1280, or are not making satisfactory progress toward meeting the        

                                                                                

16  standards for that accreditation.                                           

                                                                                

17      (8) Before publishing a list of schools or districts determined to          

                                                                                

18  have failed to make adequate yearly progress as required by the federal     

                                                                                

19  no child left behind act of 2001, Public Law 107-110, 115 Stat. 1425,       

                                                                                

20  the department shall allow a school or district to appeal that              

                                                                                

21  determination.  The department shall consider and act upon the appeal       

                                                                                

22  within 30 days after it is submitted and shall not publish the list         

                                                                                

23  until after all appeals have been considered and decided.                   

                                                                                

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

                                                                                

25  basic foundation allowance is $6,700.00 per membership pupil.               

                                                                                

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

                                                                                

27  calculated as provided in this section, using a basic foundation            


                                                                                

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

                                                                                

2       (3) Except as otherwise provided in this section, the amount of a           

                                                                                

3   district's foundation allowance shall be calculated as follows, using in    

                                                                                

4   all calculations the total amount of the district's foundation allowance    

                                                                                

5   as calculated before any proration:                                         

                                                                                

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

                                                                                

7   district that in the immediately preceding state fiscal year had a          

                                                                                

8   foundation allowance in an amount at least equal to the amount of the       

                                                                                

9   basic foundation allowance for the immediately preceding state fiscal       

                                                                                

10  year, the district shall receive a foundation allowance in an amount        

                                                                                

11  equal to the sum of the district's foundation allowance for the             

                                                                                

12  immediately preceding state fiscal year plus the dollar amount of the       

                                                                                

13  adjustment from the immediately preceding state fiscal year to the          

                                                                                

14  current state fiscal year in the basic foundation allowance.  However,      

                                                                                

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

                                                                                

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

                                                                                

17  allowance for the immediately preceding state fiscal year plus $200.00.     

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

21  allowance for the immediately preceding state fiscal year plus the          

                                                                                

22  lesser of the increase in the basic foundation allowance for the current    

                                                                                

23  state fiscal year, as compared to the immediately preceding state fiscal    

                                                                                

24  year, or the product of the district's foundation allowance for the         

                                                                                

25  immediately preceding state fiscal year times the percentage increase in    

                                                                                

26  the United States consumer price index in the calendar year ending in       

                                                                                

27  the immediately preceding fiscal year as reported by the May revenue        


                                                                                

1   estimating conference conducted under section 367b of the management and    

                                                                                

2   budget act, 1984 PA 431, MCL 18.1367b.  For 2002-2003, for a district       

                                                                                

3   that in the 1994-95 state fiscal year had a foundation allowance greater    

                                                                                

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

                                                                                

5   to the sum of the district's foundation allowance for the immediately       

                                                                                

6   preceding state fiscal year plus the lesser of $200.00 or the product of    

                                                                                

7   the district's foundation allowance for the immediately preceding state     

                                                                                

8   fiscal year times the percentage increase in the United States consumer     

                                                                                

9   price index in the calendar year ending in the immediately preceding        

                                                                                

10  fiscal year as reported by the May revenue estimating conference            

                                                                                

11  conducted under section 367b of the management and budget act, 1984 PA      

                                                                                

12  431, MCL 18.1367b.                                                          

                                                                                

13      (c) For a district that has a foundation allowance that is not a            

                                                                                

14  whole dollar amount, the district's foundation allowance shall be           

                                                                                

15  rounded up to the nearest whole dollar.                                     

                                                                                

16      (d) For a district that received a payment under former section             

                                                                                

17  22c for 2001-2002, the district's 2001-2002 foundation allowance shall      

                                                                                

18  be considered to have been an amount equal to the sum of the district's     

                                                                                

19  actual 2001-2002 foundation allowance as otherwise calculated under this    

                                                                                

20  section plus the per pupil amount of the district's equity payment for      

                                                                                

21  2001-2002 under former section 22c.                                         

                                                                                

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

                                                                                

23  portion of a district's foundation allowance is an amount equal to the      

                                                                                

24  district's foundation allowance or $6,500.00, whichever is less, minus      

                                                                                

25  the difference between the product of the taxable value per membership      

                                                                                

26  pupil of all property in the district that is not a principal residence     

                                                                                

27  or qualified agricultural property times the lesser of 18 mills or the      


                                                                                

1   number of mills of school operating taxes levied by the district in         

                                                                                

2   1993-94 and the quotient of the ad valorem property tax revenue of the      

                                                                                

3   district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax      

                                                                                

4   increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830,     

                                                                                

5   the local development financing act, 1986 PA 281, MCL 125.2151 to           

                                                                                

6   125.2174, or the brownfield redevelopment financing act, 1996 PA 381,       

                                                                                

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

                                                                                

8   special education pupils.  For a district described in subsection           

                                                                                

9   (3)(b), the state portion of the district's foundation allowance is an      

                                                                                

10  amount equal to $6,962.00 plus the difference between the district's        

                                                                                

11  foundation allowance for the current state fiscal year and the              

                                                                                

12  district's foundation allowance for 1998-99, minus the difference           

                                                                                

13  between the product of the taxable value per membership pupil of all        

                                                                                

14  property in the district that is not a principal residence or qualified     

                                                                                

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

                                                                                

16  mills of school operating taxes levied by the district in 1993-94 and       

                                                                                

17  the quotient of the ad valorem property tax revenue of the district         

                                                                                

18  captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment     

                                                                                

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

                                                                                

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

                                                                                

21  brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to        

                                                                                

22  125.2672, divided by the district's membership excluding special            

                                                                                

23  education pupils. For a district that has a millage reduction required      

                                                                                

24  under section 31 of article IX of the state constitution of 1963, the       

                                                                                

25  state portion of the district's foundation allowance shall be calculated    

                                                                                

26  as if that reduction did not occur.  The $6,500.00 amount prescribed in     

                                                                                

27  this subsection shall be adjusted each year by an amount equal to the       


                                                                                

1   dollar amount of the difference between the basic foundation allowance      

                                                                                

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

                                                                                

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

                                                                                

4   be based on the foundation allowance of the pupil's district of             

                                                                                

5   residence.  However, for a pupil enrolled in a district other than the      

                                                                                

6   pupil’s district of residence, if the foundation allowance of the           

                                                                                

7   resident district has been adjusted pursuant to subsection (18), the        

                                                                                

8   allocation calculated under this section shall not include the              

                                                                                

9   adjustment described in subsection (18). For for a pupil enrolled           

                                                                                

10  pursuant to section 105 or 105c in a district other than the pupil's        

                                                                                

11  district of residence, the allocation calculated under this section         

                                                                                

12  shall be based on the lesser of the foundation allowance of the pupil's     

                                                                                

13  district of residence or the foundation allowance of the educating          

                                                                                

14  district.  For a pupil in membership in a K-5, K-6, or K-8 district who     

                                                                                

15  is enrolled in another district in a grade not offered by the pupil's       

                                                                                

16  district of residence, the allocation calculated under this section         

                                                                                

17  shall be based on the foundation allowance of the educating district if     

                                                                                

18  the educating district's foundation allowance is greater than the           

                                                                                

19  foundation allowance of the pupil's district of residence.  The             

                                                                                

20  calculation under this subsection shall take into account a district's      

                                                                                

21  per pupil allocation under section 20j(2).                                  

                                                                                

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

                                                                                

23  otherwise provided in this subsection, for pupils in membership, other      

                                                                                

24  than special education pupils, in a public school academy or a              

                                                                                

25  university school, the allocation calculated under this section is an       

                                                                                

26  amount per membership pupil other than special education pupils in the      

                                                                                

27  public school academy or university school equal to the sum of the local    


                                                                                

1   school operating revenue per membership pupil other than special            

                                                                                

2   education pupils for the district in which the public school academy or     

                                                                                

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

                                                                                

4   foundation allowance, or the sum of the basic foundation allowance under    

                                                                                

5   subsection (1) plus $300.00, whichever is less. Notwithstanding section     

                                                                                

6   101(2), for a public school academy that begins operations in 2002-2003     

                                                                                

7   or 2003-2004, as applicable, after the pupil membership count day, the      

                                                                                

8   amount per membership pupil calculated under this subsection shall be       

                                                                                

9   adjusted by multiplying that amount per membership pupil by the number      

                                                                                

10  of hours of pupil instruction provided by the public school academy         

                                                                                

11  after it begins operations, as determined by the department, divided by     

                                                                                

12  the minimum number of hours of pupil instruction required under section     

                                                                                

13  101(3).  The result of this calculation shall not exceed the amount per     

                                                                                

14  membership pupil otherwise calculated under this subsection.                

                                                                                

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

                                                                                

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

                                                                                

17  district, then the amount per membership pupil calculated under this        

                                                                                

18  section for a public school academy located in the district shall be        

                                                                                

19  reduced by an amount equal to the difference between the product of the     

                                                                                

20  taxable value per membership pupil of all property in the district that     

                                                                                

21  is not a principal residence or qualified agricultural property times       

                                                                                

22  the lesser of 18 mills or the number of mills of school operating taxes     

                                                                                

23  levied by the district in 1993-94 and the quotient of the ad valorem        

                                                                                

24  property tax revenue of the district captured under 1975 PA 197, MCL        

                                                                                

25  125.1651 to 125.1681, the tax increment finance authority act, 1980 PA      

                                                                                

26  450, MCL 125.1801 to 125.1830, the local development financing act, 1986    

                                                                                

27  PA 281, MCL 125.2151 to 125.2174, or the brownfield redevelopment           


                                                                                

1   financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the        

                                                                                

2   district's membership excluding special education pupils, in the school     

                                                                                

3   fiscal year ending in the current state fiscal year, calculated as if       

                                                                                

4   the resident pupils in membership in 1 or more public school academies      

                                                                                

5   located in the district were in membership in the district.  In order to    

                                                                                

6   receive state school aid under this act, a district described in this       

                                                                                

7   subsection shall pay to the authorizing body that is the fiscal agent       

                                                                                

8   for a public school academy located in the district for forwarding to       

                                                                                

9   the public school academy an amount equal to that local school operating    

                                                                                

10  revenue per membership pupil for each resident pupil in membership other    

                                                                                

11  than special education pupils in the public school academy, as              

                                                                                

12  determined by the department.                                               

                                                                                

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

                                                                                

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

                                                                                

15  principal residence and qualified agricultural property under section       

                                                                                

16  1211(1) of the revised school code, MCL 380.1211, is 0.5 mills or less;     

                                                                                

17  and if the district elects not to levy those mills, the district instead    

                                                                                

18  shall receive a separate supplemental amount calculated under this          

                                                                                

19  subsection in an amount equal to the amount the district would have         

                                                                                

20  received had it levied those mills, as determined by the department of      

                                                                                

21  treasury.  A district shall not receive a separate supplemental amount      

                                                                                

22  calculated under this subsection for a fiscal year unless in the            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

26  or qualified agricultural property.                                         

                                                                                

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


                                                                                

1   membership pupil in the 1993-94 state fiscal year of more than $6,500.00    

                                                                                

2   and that had fewer than 350 pupils in membership, if the district elects    

                                                                                

3   not to reduce the number of mills from which a principal residence and      

                                                                                

4   qualified agricultural property are exempt and not to levy school           

                                                                                

5   operating taxes on a principal residence and qualified agricultural         

                                                                                

6   property as provided in section 1211(1) of the revised school code, MCL     

                                                                                

7   380.1211, and not to levy school operating taxes on all property as         

                                                                                

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

                                                                                

9   there is calculated under this subsection for 1994-95 and each              

                                                                                

10  succeeding fiscal year a separate supplemental amount in an amount equal    

                                                                                

11  to the amount the district would have received per membership pupil had     

                                                                                

12  it levied school operating taxes on a principal residence and qualified     

                                                                                

13  agricultural property at the rate authorized for the district under         

                                                                                

14  section 1211(1) of the revised school code, MCL 380.1211, and levied        

                                                                                

15  school operating taxes on all property at the rate authorized for the       

                                                                                

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

                                                                                

17  as determined by the department of treasury.  If in the calendar year       

                                                                                

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

                                                                                

19  number of mills of school operating taxes levied by the district in         

                                                                                

20  1993, whichever is less, on property that is not a principal residence      

                                                                                

21  or qualified agricultural property, the amount calculated under this        

                                                                                

22  subsection will be reduced by the same percentage as the millage            

                                                                                

23  actually levied compares to the 18 mills or the number of mills levied      

                                                                                

24  in 1993, whichever is less.                                                 

                                                                                

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

                                                                                

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

                                                                                

27  or by annexation, the resulting district's foundation allowance under       


                                                                                

1   this section beginning after the effective date of the consolidation or     

                                                                                

2   annexation shall be the average of the foundation allowances of each of     

                                                                                

3   the original or affected districts, calculated as provided in this          

                                                                                

4   section, weighted as to the percentage of pupils in total membership in     

                                                                                

5   the resulting district who reside in the geographic area of each of the     

                                                                                

6   original or affected districts.                                             

                                                                                

7       (11) Each fraction used in making calculations under this section           

                                                                                

8   shall be rounded to the fourth decimal place and the dollar amount of an    

                                                                                

9   increase in the basic foundation allowance shall be rounded to the          

                                                                                

10  nearest whole dollar.                                                       

                                                                                

11      (12) State payments related to payment of the foundation allowance          

                                                                                

12  for a special education pupil are not calculated under this section but     

                                                                                

13  are instead calculated under section 51a.                                   

                                                                                

14      (13) To assist the legislature in determining the basic foundation          

                                                                                

15  allowance for the subsequent state fiscal year, each revenue estimating     

                                                                                

16  conference conducted under section 367b of the management and budget        

                                                                                

17  act, 1984 PA 431, MCL 18.1367b, shall calculate a pupil membership          

                                                                                

18  factor, a revenue adjustment factor, and an index as follows:               

                                                                                

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

                                                                                

20  estimated membership in the school year ending in the current state         

                                                                                

21  fiscal year, excluding intermediate district membership, by the             

                                                                                

22  estimated membership for the school year ending in the subsequent state     

                                                                                

23  fiscal year, excluding intermediate district membership.  If a consensus    

                                                                                

24  membership factor is not determined at the revenue estimating               

                                                                                

25  conference, the principals of the revenue estimating conference shall       

                                                                                

26  report their estimates to the house and senate subcommittees responsible    

                                                                                

27  for school aid appropriations not later than 7 days after the conclusion    


                                                                                

1   of the revenue conference.                                                  

                                                                                

2       (b) The revenue adjustment factor shall be computed by dividing             

                                                                                

3   the sum of the estimated total state school aid fund revenue for the        

                                                                                

4   subsequent state fiscal year plus the estimated total state school aid      

                                                                                

5   fund revenue for the current state fiscal year, adjusted for any change     

                                                                                

6   in the rate or base of a tax the proceeds of which are deposited in that    

                                                                                

7   fund and excluding money transferred into that fund from the                

                                                                                

8   countercyclical budget and economic stabilization fund under section        

                                                                                

9   353e of the management and budget act, 1984 PA 431, MCL 18.1353e, by the    

                                                                                

10  sum of the estimated total school aid fund revenue for the current state    

                                                                                

11  fiscal year plus the estimated total state school aid fund revenue for      

                                                                                

12  the immediately preceding state fiscal year, adjusted for any change in     

                                                                                

13  the rate or base of a tax the proceeds of which are deposited in that       

                                                                                

14  fund. If a consensus revenue factor is not determined at the revenue        

                                                                                

15  estimating conference, the principals of the revenue estimating             

                                                                                

16  conference shall report their estimates to the house and senate             

                                                                                

17  subcommittees responsible for school aid appropriations not later than 7    

                                                                                

18  days after the conclusion of the revenue conference.                        

                                                                                

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

                                                                                

20  membership factor by the revenue adjustment factor. However, for 2003-      

                                                                                

21  2004 only, 2004-2005, the index shall be 1.00.  If a consensus index is     

                                                                                

22  not determined at the revenue estimating conference, the principals of      

                                                                                

23  the revenue estimating conference shall report their estimates to the       

                                                                                

24  house and senate subcommittees responsible for school aid appropriations    

                                                                                

25  not later than 7 days after the conclusion of the revenue conference.       

                                                                                

26      (14) If the principals at the revenue estimating conference reach           

                                                                                

27  A consensus on the index described in subsection (13)(c), the basic         


                                                                                

1   foundation allowance for the subsequent state fiscal year shall be at       

                                                                                

2   least the amount of that consensus index multiplied by the basic            

                                                                                

3   foundation allowance specified in subsection (1).                           

                                                                                

4       (15) If at the January revenue estimating conference it is                  

                                                                                

5   estimated that pupil membership, excluding intermediate district            

                                                                                

6   membership, for the subsequent state fiscal year will be greater than       

                                                                                

7   101% of the pupil membership, excluding intermediate district               

                                                                                

8   membership, for the current state fiscal year, then it is the intent of     

                                                                                

9   the legislature that the executive budget proposal for the school aid       

                                                                                

10  budget for the subsequent state fiscal year include a general               

                                                                                

11  fund/general purpose allocation sufficient to support the membership in     

                                                                                

12  excess of 101% of the current year pupil membership.                        

                                                                                

13      (15) (16) For a district that had combined state and local revenue          

                                                                                

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

                                                                                

15  $6,500.00, that had fewer than 7 pupils in membership in the 1993-94        

                                                                                

16  state fiscal year, that has at least 1 child educated in the district in    

                                                                                

17  the current state fiscal year, and that levies the number of mills of       

                                                                                

18  school operating taxes authorized for the district under section 1211 of    

                                                                                

19  the revised school code, MCL 380.1211, a minimum amount of combined         

                                                                                

20  state and local revenue shall be calculated for the district as provided    

                                                                                

21  under this subsection.  The minimum amount of combined state and local      

                                                                                

22  revenue for 1999-2000 shall be $67,000.00 plus the district's additional    

                                                                                

23  expenses to educate pupils in grades 9 to 12 educated in other districts    

                                                                                

24  as determined and allowed by the department. The minimum amount of          

                                                                                

25  combined state and local revenue under this subsection, before adding       

                                                                                

26  the additional expenses, shall increase each fiscal year by the same        

                                                                                

27  percentage increase as the percentage increase in the basic foundation      


                                                                                

1   allowance from the immediately preceding fiscal year to the current         

                                                                                

2   fiscal year.  The state portion of the minimum amount of combined state     

                                                                                

3   and local revenue under this subsection shall be calculated by              

                                                                                

4   subtracting from the minimum amount of combined state and local revenue     

                                                                                

5   under this subsection the sum of the district's local school operating      

                                                                                

6   revenue and an amount equal to the product of the sum of the state          

                                                                                

7   portion of the district's foundation allowance plus the amount              

                                                                                

8   calculated under section 20j times the district's membership.  As used      

                                                                                

9   in this subsection, "additional expenses" means the district's expenses     

                                                                                

10  for tuition or fees, not to exceed $6,500.00 as adjusted each year by an    

                                                                                

11  amount equal to the dollar amount of the difference between the basic       

                                                                                

12  foundation allowance for the current state fiscal year and $5,000.00,       

                                                                                

13  minus $200.00, plus a room and board stipend not to exceed $10.00 per       

                                                                                

14  school day for each pupil in grades 9 to 12 educated in another             

                                                                                

15  district, as approved by the department.                                    

                                                                                

16      (16) (17) For a district in which 7.75 mills levied in 1992 for             

                                                                                

17  school operating purposes in the 1992-93 school year were not renewed in    

                                                                                

18  1993 for school operating purposes in the 1993-94 school year, the          

                                                                                

19  district's combined state and local revenue per membership pupil shall      

                                                                                

20  be recalculated as if that millage reduction did not occur and the          

                                                                                

21  district's foundation allowance shall be calculated as if its 1994-95       

                                                                                

22  foundation allowance had been calculated using that recalculated 1993-94    

                                                                                

23  combined state and local revenue per membership pupil as a base.  A         

                                                                                

24  district is not entitled to any retroactive payments for fiscal years       

                                                                                

25  before 2000-2001 due to this subsection.                                    

                                                                                

26      (17) (18) For a district in which an industrial facilities                  

                                                                                

27  exemption certificate that abated taxes on property with a state            


                                                                                

1   equalized valuation greater than the total state equalized valuation of     

                                                                                

2   the district at the time the certificate was issued or $700,000,000.00,     

                                                                                

3   whichever is greater, was issued under 1974 PA 198, MCL 207.551 to          

                                                                                

4   207.572, before the calculation of the district's 1994-95 foundation        

                                                                                

5   allowance, the district's foundation allowance for 2002-2003 is an          

                                                                                

6   amount equal to the sum of the district's foundation allowance for 2002-    

                                                                                

7   2003, as otherwise calculated under this section, plus $250.00.             

                                                                                

8       (18) (19) For a district that received a grant under former section         

                                                                                

9   32e for 2001-2002, the district's foundation allowance for 2002-2003        

                                                                                

10  shall be adjusted to be an amount equal to the sum of the district's        

                                                                                

11  foundation allowance, as otherwise calculated under this section, plus      

                                                                                

12  the quotient of the amount of the grant award to the district for 2001-     

                                                                                

13  2002 under former section 32e divided by the district's membership for      

                                                                                

14  2001-2002, and the district's foundation allowance for 2003-2004 2002-      

                                                                                

15  2003 and each year thereafter shall be adjusted to be an amount equal to    

                                                                                

16  the sum of the district's foundation allowance, as otherwise calculated     

                                                                                

17  under this section, plus the quotient of 100% of the amount of the grant    

                                                                                

18  award to the district for 2001-2002 under former section 32e divided by     

                                                                                

19  the number of pupils in the district's membership for 2001-2002 who were    

                                                                                

20  residents of and were enrolled in the district.  Except as otherwise        

                                                                                

21  provided in this subsection, a district qualifying for a foundation         

                                                                                

22  allowance adjustment under this subsection shall use the funds resulting    

                                                                                

23  from this adjustment for at least 1 of grades K to 3 for purposes           

                                                                                

24  allowable under former section 32e as in effect for 2001-2002.  For an      

                                                                                

25  individual school or schools operated by a district qualifying for a        

                                                                                

26  foundation allowance under this subsection that have been determined by     

                                                                                

27  the department to meet the adequate yearly progress standards of the        


                                                                                

1   federal no child left behind act of 2001, Public Law 107-110, 115 Stat.     

                                                                                

2   1425, in both mathematics and English language arts at all applicable       

                                                                                

3   grade levels for all applicable subgroups, the district may submit to       

                                                                                

4   the department an application for flexibility in using the funds            

                                                                                

5   resulting from this adjustment that are attributable to the pupils in       

                                                                                

6   the school or schools.  The application shall identify the affected         

                                                                                

7   school or schools and the affected funds and shall contain a plan for       

                                                                                

8   using the funds for specific purposes identified by the district that       

                                                                                

9   are designed to reduce class size, but that may be different from the       

                                                                                

10  purposes otherwise allowable under this subsection. The department shall    

                                                                                

11  approve the application if the department determines that the purposes      

                                                                                

12  identified in the plan are reasonably designed to reduce class size.  If    

                                                                                

13  the department does not act to approve or disapprove an application         

                                                                                

14  within 30 days after it is submitted to the department, the application     

                                                                                

15  is considered to be approved.  If an application for flexibility in         

                                                                                

16  using the funds is approved, the district may use the funds identified      

                                                                                

17  in the application for any purpose identified in the plan.                  

                                                                                

18      (19) (20) For a district that is a qualifying school district with          

                                                                                

19  A school reform board in place under part 5a of the revised school code,    

                                                                                

20  MCL 380.371 to 380.376, the district's foundation allowance for 2002-       

                                                                                

21  2003 2004-2005 shall be adjusted to be an amount equal to the sum of the    

                                                                                

22  district's foundation allowance, as otherwise calculated under this         

                                                                                

23  section, plus the quotient of $15,000,000.00 divided by the district's      

                                                                                

24  membership for 2002-2003 2004-2005.  If a district ceases to meet the       

                                                                                

25  requirements of this subsection, the department shall adjust the            

                                                                                

26  district's foundation allowance in effect at that time based on a 2002-     

                                                                                

27  2003 2004-2005 foundation allowance for the district that does not          


                                                                                

1   include the 2002-2003 2004-2005 adjustment under this subsection.           

                                                                                

2       (20) (21) Payments to districts, university schools, or public              

                                                                                

3   school academies shall not be made under this section.  Rather, the         

                                                                                

4   calculations under this section shall be used to determine the amount of    

                                                                                

5   state payments under section 22b.                                           

                                                                                

6       (21) (22) If an amendment to section 2 of article VIII of the state         

                                                                                

7   constitution of 1963 allowing state aid to some or all nonpublic schools    

                                                                                

8   is approved by the voters of this state, each foundation allowance or       

                                                                                

9   per pupil payment calculation under this section may be reduced.            

                                                                                

10      (22) (23) As used in this section:                                          

                                                                                

11      (a) "Combined state and local revenue" means the aggregate of the           

                                                                                

12  district's state school aid received by or paid on behalf of the            

                                                                                

13  district under this section and the district's local school operating       

                                                                                

14  revenue.                                                                    

                                                                                

15      (b) "Combined state and local revenue per membership pupil" means           

                                                                                

16  the district's combined state and local revenue divided by the              

                                                                                

17  district's membership excluding special education pupils.                   

                                                                                

18      (c) "Current state fiscal year" means the state fiscal year for             

                                                                                

19  which a particular calculation is made.                                     

                                                                                

20      (d) "Immediately preceding state fiscal year" means the state               

                                                                                

21  fiscal year immediately preceding the current state fiscal year.            

                                                                                

22      (e) "Local school operating revenue" means school operating taxes           

                                                                                

23  levied under section 1211 of the revised school code, MCL 380.1211.         

                                                                                

24      (f) "Local school operating revenue per membership pupil" means a           

                                                                                

25  district's local school operating revenue divided by the district's         

                                                                                

26  membership excluding special education pupils.                              

                                                                                

27      (g) "Membership" means the definition of that term under section 6          


                                                                                

1   as in effect for the particular fiscal year for which a particular          

                                                                                

2   calculation is made.                                                        

                                                                                

3       (h) "Principal residence" and "qualified agricultural property"             

                                                                                

4   mean those terms as defined in section 7dd of the general property tax      

                                                                                

5   act, 1893 PA 206, MCL 211.7dd.                                              

                                                                                

6       (i) "School operating purposes" means the purposes included in the          

                                                                                

7   operation costs of the district as prescribed in sections 7 and 18.         

                                                                                

8       (j) "School operating taxes" means local ad valorem property taxes          

                                                                                

9   levied under section 1211 of the revised school code, MCL 380.1211, and     

                                                                                

10  retained for school operating purposes.                                     

                                                                                

11      (k) "Taxable value per membership pupil" means taxable value, as            

                                                                                

12  certified by the department of treasury, for the calendar year ending in    

                                                                                

13  the current state fiscal year divided by the district's membership          

                                                                                

14  excluding special education pupils for the school year ending in the        

                                                                                

15  current state fiscal year.                                                  

                                                                                

16      Sec. 20j. (1) Foundation allowance supplemental payments to                 

                                                                                

17  districts that in the 1994-95 state fiscal year had a foundation            

                                                                                

18  allowance greater than $6,500.00 shall be calculated under this section.    

                                                                                

19      (2) The per pupil allocation to each district under this section            

                                                                                

20  shall be the difference between the dollar amount of the adjustment from    

                                                                                

21  the 1998-99 state fiscal year to the current state fiscal year in the       

                                                                                

22  basic foundation allowance minus the dollar amount of the adjustment        

                                                                                

23  from the 1998-99 state fiscal year to the current state fiscal year in      

                                                                                

24  the district's foundation allowance.  If the sum of a district’s            

                                                                                

25  foundation allowance under section 20 plus the per pupil allocation         

                                                                                

26  under this subsection is greater than $9,000.00, the district’s per         

                                                                                

27  pupil allocation under this subsection shall be reduced by up to $74.00     


                                                                                

1   per pupil. The sum of the district’s foundation allowance under section     

                                                                                

2   20 plus the per pupil allocation under this subsection shall not be less    

                                                                                

3   than $9,000.00 for those districts impacted by the per pupil adjustment.    

                                                                                

4       (3) If a district's local revenue per pupil does not exceed the             

                                                                                

5   sum of its foundation allowance under section 20 plus the per pupil         

                                                                                

6   allocation under subsection (2), the total payment to the district          

                                                                                

7   calculated under this section shall be the product of the per pupil         

                                                                                

8   allocation under subsection (2) multiplied by the district's membership     

                                                                                

9   excluding special education pupils.  If a district's local revenue per      

                                                                                

10  pupil exceeds the foundation allowance under section 20 but does not        

                                                                                

11  exceed the sum of the foundation allowance under section 20 plus the per    

                                                                                

12  pupil allocation under subsection (2), the total payment to the district    

                                                                                

13  calculated under this section shall be the product of the difference        

                                                                                

14  between the sum of the foundation allowance under section 20 plus the       

                                                                                

15  per pupil allocation under subsection (2) minus the local revenue per       

                                                                                

16  pupil multiplied by the district's membership excluding special             

                                                                                

17  education pupils.  If a district's local revenue per pupil exceeds the      

                                                                                

18  sum of the foundation allowance under section 20 plus the per pupil         

                                                                                

19  allocation under subsection (2), there is no payment calculated under       

                                                                                

20  this section for the district.                                              

                                                                                

21      (4) Payments to districts shall not be made under this section.             

                                                                                

22  Rather, the calculations under this section shall be made and used to       

                                                                                

23  determine the amount of state payments under section 22b.                   

                                                                                

24      Sec. 20l.  (1) From the allocation in section 22b, there is                 

                                                                                

25  allocated for 2004-2005 an amount not to exceed $1,000,000.00 for           

                                                                                

26  consolidation incentive payments to districts under this section.  A        

                                                                                

27  district that is formed by consolidation, or by the annexation by 1         


                                                                                

1   district of all of the territory of another district, after June 1,         

                                                                                

2   2004 is eligible to receive a consolidation incentive payment under         

                                                                                

3   this section.  The payment of an incentive payment to a district under      

                                                                                

4   this section shall be an amount equal to $25.00 per pupil in membership     

                                                                                

5   in the consolidated district or in the district formed by the               

                                                                                

6   annexation, not to exceed a total payment of $500,000.00 to any one         

                                                                                

7   consolidated district or district formed by annexation.                     

                                                                                

8       (2) If the amount allocated under this section for a particular             

                                                                                

9   fiscal year is not sufficient to fully fund payments to all eligible        

                                                                                

10  districts for the fiscal year, the department shall prorate payments        

                                                                                

11  under this section for that fiscal year on an equal percentage basis.       

                                                                                

12      Sec. 21b. (1) Subject to subsections (2) and (3), a district shall          

                                                                                

13  use funds received under section 20 or, beginning in 2000-2001, under       

                                                                                

14  section 22a or 22b to support the attendance of a district pupil at an      

                                                                                

15  eligible postsecondary institution under the postsecondary enrollment       

                                                                                

16  options act, 1996 PA 160, MCL 388.511 to 388.524, or under the career       

                                                                                

17  and technical preparation act, 2000 PA 258, MCL 388.1901 to 388.1913.       

                                                                                

18      (2) To the extent required under subsection (3), a district shall           

                                                                                

19  pay tuition and mandatory course fees, material fees, and registration      

                                                                                

20  fees required by an eligible postsecondary institution for enrollment in    

                                                                                

21  an eligible course.  A district also shall pay any late fees charged by     

                                                                                

22  an eligible postsecondary institution due to the district's failure to      

                                                                                

23  make a required payment according to the timetable prescribed by the        

                                                                                

24  postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to           

                                                                                

25  388.524, or the career and technical preparation act, 2000 PA 258, MCL      

                                                                                

26  388.1901 to 388.1913.  A district is not required to pay transportation     

                                                                                

27  costs, parking costs, or activity fees.                                     


                                                                                

1       (3) A district shall pay to the eligible postsecondary institution          

                                                                                

2   on behalf of an eligible student an amount equal to the lesser of the       

                                                                                

3   amount of the eligible charges described in subsection (2) or the           

                                                                                

4   prorated percentage of the state portion of the foundation allowance        

                                                                                

5   paid or calculated, as applicable, on behalf of that eligible student       

                                                                                

6   under section 20, with the proration based on the proportion of the         

                                                                                

7   school year that the eligible student attends the postsecondary             

                                                                                

8   institution.  A district may pay more money to an eligible postsecondary    

                                                                                

9   institution on behalf of an eligible student than required under this       

                                                                                

10  section and the postsecondary enrollment options act, 1996 PA 160, MCL      

                                                                                

11  388.511 to 388.524, or the career and technical preparation act, 2000 PA    

                                                                                

12  258, MCL 388.1901 to 388.1913, and may use local school operating           

                                                                                

13  revenue for that purpose.  An eligible student is responsible for           

                                                                                

14  payment of the remainder of the costs associated with his or her            

                                                                                

15  postsecondary enrollment that exceed the amount the district is required    

                                                                                

16  to pay under this section and the postsecondary enrollment options act,     

                                                                                

17  1996 PA 160, MCL 388.511 to 388.524, or the career and technical            

                                                                                

18  preparation act, 2000 PA 258, MCL 388.1901 to 388.1913, and that are not    

                                                                                

19  paid 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 terms as      

                                                                                

23  defined in section 3 of the postsecondary enrollment options act, 1996      

                                                                                

24  PA 160, MCL 388.511 to 388.524, or in section 3 of the career and           

                                                                                

25  technical preparation act, 2000 PA 258, MCL 388.1901 to 388.1913, as        

                                                                                

26  applicable.                                                                 

                                                                                

27      Sec. 22a. (1) From the appropriation in section 11, there is                


                                                                                

1   allocated an amount not to exceed $6,816,000,000.00 $6,765,300,000.00       

                                                                                

2   for 2003-2004 and an amount not to exceed $6,665,000,000.00 for 2004-       

                                                                                

3   2005 for payments to districts, qualifying university schools, and          

                                                                                

4   qualifying public school academies to guarantee each district,              

                                                                                

5   qualifying university school, and qualifying public school academy an       

                                                                                

6   amount equal to its 1994-95 total state and local per pupil revenue for     

                                                                                

7   school operating purposes under section 11 of article IX of the state       

                                                                                

8   constitution of 1963.  Pursuant to section 11 of article IX of the state    

                                                                                

9   constitution of 1963, this guarantee does not apply to a district in a      

                                                                                

10  year in which the district levies a millage rate for school district        

                                                                                

11  operating purposes less than it levied in 1994.  However, subsection (2)    

                                                                                

12  applies to calculating the payments under this section.  Funds allocated    

                                                                                

13  under this section that are not expended in the state fiscal year for       

                                                                                

14  which they were allocated, as determined by the department, may be used     

                                                                                

15  to supplement the allocations under sections 22b and 51c in order to        

                                                                                

16  fully fund those calculated allocations for the same fiscal year.           

                                                                                

17      (2) To ensure that a district receives an amount equal to the               

                                                                                

18  district's 1994-95 total state and local per pupil revenue for school       

                                                                                

19  operating purposes, there is allocated to each district a state portion     

                                                                                

20  of the district's 1994-95 foundation allowance in an amount calculated      

                                                                                

21  as follows:                                                                 

                                                                                

22      (a) Except as otherwise provided in this subsection, the state              

                                                                                

23  portion of a district's 1994-95 foundation allowance is an amount equal     

                                                                                

24  to the district's 1994-95 foundation allowance or $6,500.00, whichever      

                                                                                

25  is less, minus the difference between the product of the taxable value      

                                                                                

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

                                                                                

27  homestead or qualified agricultural property times the lesser of 18         


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

4   125.1681, the tax increment finance authority act, 1980 PA 450, MCL         

                                                                                

5   125.1801 to 125.1830, the local development financing act, 1986 PA 281,     

                                                                                

6   MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act,    

                                                                                

7   1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's            

                                                                                

8   membership. For a district that has a millage reduction required under      

                                                                                

9   section 31 of article IX of the state constitution of 1963, the state       

                                                                                

10  portion of the district's foundation allowance shall be calculated as if    

                                                                                

11  that reduction did not occur.                                               

                                                                                

12      (b) For a district that had a 1994-95 foundation allowance greater          

                                                                                

13  than $6,500.00, the state payment under this subsection shall be the sum    

                                                                                

14  of the amount calculated under subdivision (a) plus the amount              

                                                                                

15  calculated under this subdivision.  The amount calculated under this        

                                                                                

16  subdivision shall be equal to the difference between the district's         

                                                                                

17  1994-95 foundation allowance minus $6,500.00 and the current year hold      

                                                                                

18  harmless school operating taxes per pupil.  If the result of the            

                                                                                

19  calculation under subdivision (a) is negative, the negative amount shall    

                                                                                

20  be an offset against any state payment calculated under this                

                                                                                

21  subdivision. If the result of a calculation under this subdivision is       

                                                                                

22  negative, there shall not be a state payment or a deduction under this      

                                                                                

23  subdivision.  The taxable values per membership pupil used in the           

                                                                                

24  calculations under this subdivision are as adjusted by ad valorem           

                                                                                

25  property tax revenue captured under 1975 PA 197, MCL 125.1651 to            

                                                                                

26  125.1681, the tax increment finance authority act, 1980 PA 450, MCL         

                                                                                

27  125.1801 to 125.1830, the local development financing act, 1986 PA 281,     


                                                                                

1   MCL 125.2151 to 125.2174, or the brownfield redevelopment financing act,    

                                                                                

2   1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's            

                                                                                

3   membership.                                                                 

                                                                                

4       (3) For Beginning in 2003-2004, for pupils in membership in a               

                                                                                

5   qualifying public school academy or qualifying university school, there     

                                                                                

6   is allocated under this section for 2003-2004 to the authorizing body       

                                                                                

7   that is the fiscal agent for the qualifying public school academy for       

                                                                                

8   forwarding to the qualifying public school academy, or to the board of      

                                                                                

9   the public university operating the qualifying university school, an        

                                                                                

10  amount equal to the 1994-95 per pupil payment to the qualifying public      

                                                                                

11  school academy or qualifying university school under section 20.            

                                                                                

12      (4) A district, qualifying university school, or qualifying public          

                                                                                

13  school academy may use funds allocated under this section in conjunction    

                                                                                

14  with any federal funds for which the district, qualifying university        

                                                                                

15  school, or qualifying public school academy otherwise would be eligible.    

                                                                                

16      (5) For a district that is formed or reconfigured after June 1,             

                                                                                

17  2000 by consolidation of 2 or more districts or by annexation, the          

                                                                                

18  resulting district's 1994-95 foundation allowance under this section        

                                                                                

19  beginning after the effective date of the consolidation or annexation       

                                                                                

20  shall be the average of the 1994-95 foundation allowances of each of the    

                                                                                

21  original or affected districts, calculated as provided in this section,     

                                                                                

22  weighted as to the percentage of pupils in total membership in the          

                                                                                

23  resulting district in the state fiscal year in which the consolidation      

                                                                                

24  takes place who reside in the geographic area of each of the original       

                                                                                

25  districts. If an affected district's 1994-95 foundation allowance is        

                                                                                

26  less than the 1994-95 basic foundation allowance, the amount of that        

                                                                                

27  district's 1994-95 foundation allowance shall be considered for the         


                                                                                

1   purpose of calculations under this subsection to be equal to the amount     

                                                                                

2   of the 1994-95 basic foundation allowance.                                  

                                                                                

3       (6) As used in this section:                                                

                                                                                

4       (a) "1994-95 foundation allowance" means a district's 1994-95               

                                                                                

5   foundation allowance calculated and certified by the department of          

                                                                                

6   treasury or the superintendent under former section 20a as enacted in       

                                                                                

7   1993 PA 336 and as amended by 1994 PA 283.                                  

                                                                                

8       (b) "Current state fiscal year" means the state fiscal year for             

                                                                                

9   which a particular calculation is made.                                     

                                                                                

10      (c) "Current year hold harmless school operating taxes per pupil"           

                                                                                

11  means the per pupil revenue generated by multiplying a district's 1994-     

                                                                                

12  95 hold harmless millage by the district's current year taxable value       

                                                                                

13  per membership pupil.                                                       

                                                                                

14      (d) "Hold harmless millage" means, for a district with a 1994-95            

                                                                                

15  foundation allowance greater than $6,500.00, the number of mills by         

                                                                                

16  which the exemption from the levy of school operating taxes on a            

                                                                                

17  homestead and qualified agricultural property could be reduced as           

                                                                                

18  provided in section 1211(1) of the revised school code, MCL 380.1211,       

                                                                                

19  and the number of mills of school operating taxes that could be levied      

                                                                                

20  on all property as provided in section 1211(2) of the revised school        

                                                                                

21  code, MCL 380.1211, as certified by the department of treasury for the      

                                                                                

22  1994 tax year.                                                              

                                                                                

23      (e) "Homestead" means that term as defined in section 1211 of the           

                                                                                

24  revised school code, MCL 380.1211.                                          

                                                                                

25      (f) "Membership" means the definition of that term under section 6          

                                                                                

26  as in effect for the particular fiscal year for which a particular          

                                                                                

27  calculation is made.                                                        


                                                                                

1       (g) "Qualified agricultural property" means that term as defined            

                                                                                

2   in section 1211 of the revised school code, MCL 380.1211.                   

                                                                                

3       (h) "Qualifying public school academy" means a public school                

                                                                                

4   academy that was in operation in the 1994-95 school year and is in          

                                                                                

5   operation in the current state fiscal year.                                 

                                                                                

6       (i) "Qualifying university school" means a university school that           

                                                                                

7   was in operation in the 1994-95 school year and is in operation in the      

                                                                                

8   current fiscal year.                                                        

                                                                                

9       (j) "School operating taxes" means local ad valorem property taxes          

                                                                                

10  levied under section 1211 of the revised school code, MCL 380.1211, and     

                                                                                

11  retained for school operating purposes.                                     

                                                                                

12      (k) "Taxable value per membership pupil" means each of the                  

                                                                                

13  following divided by the district's membership:                             

                                                                                

14      (i) For the number of mills by which the exemption from the levy            

                                                                                

15  of school operating taxes on a homestead and qualified agricultural         

                                                                                

16  property may be reduced as provided in section 1211(1) of the revised       

                                                                                

17  school code, MCL 380.1211, the taxable value of homestead and qualified     

                                                                                

18  agricultural property for the calendar year ending in the current state     

                                                                                

19  fiscal year.                                                                

                                                                                

20      (ii) For the number of mills of school operating taxes that may be          

                                                                                

21  levied on all property as provided in section 1211(2) of the revised        

                                                                                

22  school code, MCL 380.1211, the taxable value of all property for the        

                                                                                

23  calendar year ending in the current state fiscal year.                      

                                                                                

24      Sec. 22b. (1) From the appropriation in section 11, there is                

                                                                                

25  allocated an amount not to exceed $2,881,000,000.00 for 2003-2004           

                                                                                

26  $2,900,000,000.00 for 2004-2005 for discretionary nonmandated payments      

                                                                                

27  to districts under this section.  Funds allocated under this section        


                                                                                

1   that are not expended in the state fiscal year for which they were          

                                                                                

2   allocated, as determined by the department, may be used to supplement       

                                                                                

3   the allocations under sections 22a and 51c in order to fully fund those     

                                                                                

4   calculated allocations for the same fiscal year.                            

                                                                                

5       (2) Subject to subsection (3) and section 11, the allocation to a           

                                                                                

6   district under this section shall be an amount equal to the sum of the      

                                                                                

7   amounts calculated under sections 20, 20j,51a(2), 51a(3), and 51a(12),      

                                                                                

8   minus the sum of the allocations to the district under sections 22a and     

                                                                                

9   51c.                                                                        

                                                                                

10      (3) In order to receive an allocation under this section, each              

                                                                                

11  district shall administer in each grade level that it operates in grades    

                                                                                

12  1 to 5 a standardized assessment approved by the department of grade-       

                                                                                

13  appropriate basic educational skills.  A district may use the Michigan      

                                                                                

14  literacy progress profile to satisfy this requirement for grades 1 to 3.    

                                                                                

15  Also, if the revised school code is amended to require annual               

                                                                                

16  assessments at additional grade levels, in order to receive an              

                                                                                

17  allocation under this section each district shall comply with that          

                                                                                

18  requirement.                                                                

                                                                                

19      (4) From the allocation in subsection (1), the department shall             

                                                                                

20  expend funds to pay for necessary costs associated with resolving           

                                                                                

21  matters pending in federal court impacting payments to districts,           

                                                                                

22  including, but not limited to, expert witness fees. Beginning in 2001-      

                                                                                

23  2002, from the allocation in subsection (1), the department shall also      

                                                                                

24  pay up to $1,000,000.00 in litigation costs incurred by this state          

                                                                                

25  associated with lawsuits filed by 1 or more districts or intermediate       

                                                                                

26  districts against this state.  If the allocation under this section is      

                                                                                

27  insufficient to fully fund all payments required under this section, the    


                                                                                

1   payments under this subsection shall be made in full before any             

                                                                                

2   proration of remaining payments under this section.                         

                                                                                

3       (5) It is the intent of the legislature that all constitutional             

                                                                                

4   obligations of this state have been fully funded under sections 22a,        

                                                                                

5   31d, 51a, and 51c.  If a claim is made by an entity receiving funds         

                                                                                

6   under this act that challenges the legislative determination of the         

                                                                                

7   adequacy of this funding or alleges that there exists an unfunded           

                                                                                

8   constitutional requirement, the state budget director may escrow or         

                                                                                

9   allocate from the discretionary funds for nonmandated payments under        

                                                                                

10  this section the amount as may be necessary to satisfy the claim before     

                                                                                

11  making any payments to districts under subsection (2).  If funds are        

                                                                                

12  escrowed, the escrowed funds are a work project appropriation and the       

                                                                                

13  funds are carried forward into the following fiscal year. The purpose of    

                                                                                

14  the work project is to provide for any payments that may be awarded to      

                                                                                

15  districts as a result of litigation.  The work project shall be             

                                                                                

16  completed upon resolution of the litigation.                                

                                                                                

17      (6) If the local claims review board or a court of competent                

                                                                                

18  jurisdiction makes a final determination that this state is in violation    

                                                                                

19  of section 29 of article IX of the state constitution of 1963 regarding     

                                                                                

20  state payments to districts, the state budget director shall use work       

                                                                                

21  project funds under subsection (5) or allocate from the discretionary       

                                                                                

22  funds for nonmandated payments under this section the amount as may be      

                                                                                

23  necessary to satisfy the amount owed to districts before making any         

                                                                                

24  payments to districts under subsection (2).                                 

                                                                                

25      (7) If a claim is made in court that challenges the legislative             

                                                                                

26  determination of the adequacy of funding for this state's constitutional    

                                                                                

27  obligations or alleges that there exists an unfunded constitutional         


                                                                                

1   requirement, any interested party may seek an expedited review of the       

                                                                                

2   claim by the local claims review board. If the claim exceeds                

                                                                                

3   $10,000,000.00, this state may remove the action to the court of            

                                                                                

4   appeals, and the court of appeals shall have and shall exercise             

                                                                                

5   jurisdiction over the claim.                                                

                                                                                

6       (8) If payments resulting from a final determination by the local           

                                                                                

7   claims review board or a court of competent jurisdiction that there has     

                                                                                

8   been a violation of section 29 of article IX of the state constitution      

                                                                                

9   of 1963 exceed the amount allocated for discretionary nonmandated           

                                                                                

10  payments under this section, the legislature shall provide for adequate     

                                                                                

11  funding for this state's constitutional obligations at its next             

                                                                                

12  legislative session.                                                        

                                                                                

13      (9) If a lawsuit challenging payments made to districts related to          

                                                                                

14  costs reimbursed by federal title XIX medicaid funds is filed against       

                                                                                

15  this state during 2001-2002, 2002-2003, or 2003-2004, 50% of the amount     

                                                                                

16  allocated in subsection (1) not previously paid out for 2002-2003, 2003-    

                                                                                

17  2004, and each succeeding fiscal year is a work project appropriation       

                                                                                

18  and the funds are carried forward into the following fiscal year.  The      

                                                                                

19  purpose of the work project is to provide for any payments that may be      

                                                                                

20  awarded to districts as a result of the litigation.  The work project       

                                                                                

21  shall be completed upon resolution of the litigation. In addition, this     

                                                                                

22  state reserves the right to terminate future federal title XIX medicaid     

                                                                                

23  reimbursement payments to districts if the amount or allocation of          

                                                                                

24  reimbursed funds is challenged in the lawsuit.  As used in this             

                                                                                

25  subsection, "title XIX" means title XIX of the social security act,         

                                                                                

26  chapter 531, 49 Stat. 620, 42 U.S.C. 1396 to 1396r-6 and 1396r-8 to         

                                                                                

27  1396v.                                                                      


                                                                                

1       Sec. 24. (1) Subject to subsection (2), from the appropriation in           

                                                                                

2   section 11, there is allocated each fiscal year for 2002-2003, and for      

                                                                                

3   2003-2004 2004-2005 to the educating district or intermediate district      

                                                                                

4   an amount equal to 100% of the added cost each fiscal year for educating    

                                                                                

5   all pupils assigned by a court or the family independence agency to         

                                                                                

6   reside in or to attend a juvenile detention facility or child caring        

                                                                                

7   institution licensed by the family independence agency or the department    

                                                                                

8   of consumer and industry services and approved by the department to         

                                                                                

9   provide an on-grounds education program.  The total amount to be paid       

                                                                                

10  under this section for added cost shall not exceed $8,900,000.00 for        

                                                                                

11  2002-2003 and  $8,000,000.00 for 2003-2004 2004-2005. For the purposes      

                                                                                

12  of this section, "added cost" shall be computed by deducting all other      

                                                                                

13  revenue received under this act for pupils described in this section        

                                                                                

14  from total costs, as approved by the department, in whole or in part,       

                                                                                

15  for educating those pupils in the on-grounds education program or in a      

                                                                                

16  program approved by the department that is located on property adjacent     

                                                                                

17  to a juvenile detention facility or child caring institution.  Costs        

                                                                                

18  reimbursed by federal funds are not included.  For 2003-2004 only, for      

                                                                                

19  an on-grounds education program or a program located on property            

                                                                                

20  adjacent to a juvenile detention facility or child caring institution       

                                                                                

21  that was not in existence at the time the allocations under this section    

                                                                                

22  were approved, the department shall give approval for only that portion     

                                                                                

23  of the educating district's or intermediate district's total costs that     

                                                                                

24  will not prevent the allocated amounts under this section from first        

                                                                                

25  being applied to 100% of the added cost of the programs that were in        

                                                                                

26  existence at the time the preliminary allocations under this section        

                                                                                

27  were approved.                                                              


                                                                                

1       (2) A district or intermediate district educating pupils described          

                                                                                

2   in this section at a residential child caring institution may operate,      

                                                                                

3   and receive funding under this section for, a department-approved on-       

                                                                                

4   grounds educational program for those pupils that is longer than 181        

                                                                                

5   days, but not longer than 233 days, if the child caring institution was     

                                                                                

6   licensed as a child caring institution and offered in 1991-92 an on-        

                                                                                

7   grounds educational program that was longer than 181 days but not longer    

                                                                                

8   than 233 days and that was operated by a district or intermediate           

                                                                                

9   district.                                                                   

                                                                                

10      (3) Special education pupils funded under section 53a shall not be          

                                                                                

11  funded under this section.                                                  

                                                                                

12      (4) The department shall appoint a committee to study and make              

                                                                                

13  recommendations concerning issues related to the education of pupils        

                                                                                

14  under this section, including, but not limited to, pupil counts, cost       

                                                                                

15  controls, and the number and type of eligible programs under this           

                                                                                

16  section.  The committee may include, but is not limited to, appointees      

                                                                                

17  from 1 or more adjudicated youth educators associations, the house          

                                                                                

18  fiscal agency, the senate fiscal agency, the department of management       

                                                                                

19  and budget, the family independence agency, the department of               

                                                                                

20  corrections, the court system, and the department.  Not later than May      

                                                                                

21  15, 2004, the committee shall submit its recommendations to the house       

                                                                                

22  and senate appropriations subcommittees responsible for this act and to     

                                                                                

23  the department of management and budget.                                    

                                                                                

24      Sec. 26. A district or intermediate district receiving money                

                                                                                

25  pursuant to 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment        

                                                                                

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

                                                                                

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


                                                                                

1   Brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to        

                                                                                

2   125.2672, shall have its funds received under section 20 22b, 56, or 62     

                                                                                

3   reduced by an amount equal to the added local money.                        

                                                                                

4       Sec. 26a. From the school aid fund appropriation in section 11,             

                                                                                

5   there is allocated an amount not to exceed $22,800,000.00 for 2004-2005     

                                                                                

6   and from the general fund appropriation in section 11, there is             

                                                                                

7   allocated an amount not to exceed  $29,960,000.00 for 2003-2004             

                                                                                

8   $13,400,000.00 for 2004-2005 to reimburse districts, intermediate           

                                                                                

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

                                                                                

10  Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes         

                                                                                

11  levied in  2003  2004This reimbursement shall be made by adjusting       

                                                                                

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

                                                                                

13  under section 56, 62, or 81 to eligible intermediate districts, and         

                                                                                

14  adjusting the state school aid fund.  The adjustments allocations shall     

                                                                                

15  be made not later than 60 days after the department of treasury             

                                                                                

16  certifies to the department and to the state budget director that the       

                                                                                

17  department of treasury has received all necessary information to            

                                                                                

18  properly determine the amounts due to each eligible recipient.              

                                                                                

19      Sec. 31a. (1) From the state school aid fund money appropriated             

                                                                                

20  appropriation in section 11, there is allocated for 2003-2004 2004-2005     

                                                                                

21  an amount not to exceed $314,200,000.00 for payments to eligible            

                                                                                

22  districts and eligible public school academies under this section.          

                                                                                

23  Subject to subsection (12), the amount of the additional allowance under    

                                                                                

24  this section shall be based on the number of actual pupils in membership    

                                                                                

25  in the district or public school academy who met the income eligibility     

                                                                                

26  criteria for free breakfast, lunch, or milk in the immediately preceding    

                                                                                

27  state fiscal year, as determined under the Richard B. Russell national      


                                                                                

1   school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753,        

                                                                                

2   1755 to 1761, 1762a, 1765 to 1766a, 1769, 1769b to 1769c, and 1769f to      

                                                                                

3   1769h, and reported to the department by October 31 of the immediately      

                                                                                

4   preceding fiscal year and adjusted not later than December 31 of the        

                                                                                

5   immediately preceding fiscal year. However, for a public school academy     

                                                                                

6   that began operations as a public school academy after the pupil            

                                                                                

7   membership count day of the immediately preceding school year, the basis    

                                                                                

8   for the additional allowance under this section shall be the number of      

                                                                                

9   actual pupils in membership in the public school academy who met the        

                                                                                

10  income eligibility criteria for free breakfast, lunch, or milk in the       

                                                                                

11  current state fiscal year, as determined under the Richard B. Russell       

                                                                                

12  national school lunch act.                                                  

                                                                                

13      (2) To be eligible to receive funding under this section, other             

                                                                                

14  than funding under subsection (6), a district or public school academy      

                                                                                

15  that has not been previously determined to be eligible shall apply to       

                                                                                

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

                                                                                

17  district or public school academy must meet all of the following:           

                                                                                

18      (a) The sum of the district's or public school academy's combined           

                                                                                

19  state and local revenue per membership pupil in the current state fiscal    

                                                                                

20  year, as calculated under section 20, plus the amount of the district's     

                                                                                

21  per pupil allocation under section 20j(2), is less than or equal to         

                                                                                

22  $6,500.00 adjusted by the dollar amount of the difference between the       

                                                                                

23  basic foundation allowance under section 20 for the current state fiscal    

                                                                                

24  year and $5,000.00, minus $200.00.                                          

                                                                                

25      (b) The district or public school academy agrees to use the                 

                                                                                

26  funding only for purposes allowed under this section and to comply with     

                                                                                

27  the program and accountability requirements under this section.             


                                                                                

1       (3) Except as otherwise provided in this subsection, an eligible            

                                                                                

2   district or eligible public school academy shall receive under this         

                                                                                

3   section for each membership pupil in the district or public school          

                                                                                

4   academy who met the income eligibility criteria for free breakfast,         

                                                                                

5   lunch, or milk, as determined under the Richard B. Russell national         

                                                                                

6   school lunch act and as reported to the department by October 31 of the     

                                                                                

7   immediately preceding fiscal year and adjusted not later than December      

                                                                                

8   31 of the immediately preceding fiscal year, an amount per pupil equal      

                                                                                

9   to 11.5% of the sum of the district's foundation allowance or public        

                                                                                

10  school academy's per pupil amount calculated under section 20, plus the     

                                                                                

11  amount of the district's per pupil allocation under section 20j(2), not     

                                                                                

12  to exceed $6,500.00 adjusted by the dollar amount of the difference         

                                                                                

13  between the basic foundation allowance under section 20 for the current     

                                                                                

14  state fiscal year and $5,000.00, minus $200.00, or of the public school     

                                                                                

15  academy's per membership pupil amount calculated under section 20 for       

                                                                                

16  the current state fiscal year.  A public school academy that began          

                                                                                

17  operations as a public school academy after the pupil membership count      

                                                                                

18  day of the immediately preceding school year shall receive under this       

                                                                                

19  section for each membership pupil in the public school academy who met      

                                                                                

20  the income eligibility criteria for free breakfast, lunch, or milk, as      

                                                                                

21  determined under the Richard B. Russell national school lunch act and as    

                                                                                

22  reported to the department by October 31 of the current fiscal year and     

                                                                                

23  adjusted not later than December 31 of the current fiscal year, an          

                                                                                

24  amount per pupil equal to 11.5% of the public school academy's per          

                                                                                

25  membership pupil amount calculated under section 20 for the current         

                                                                                

26  state fiscal year.                                                          

                                                                                

27      (4) Except as otherwise provided in this section, a district or             


                                                                                

1   public school academy receiving funding under this section shall use        

                                                                                

2   that money only to provide instructional programs and direct                

                                                                                

3   noninstructional services, including, but not limited to, medical or        

                                                                                

4   counseling services, for at-risk pupils; for school health clinics; and     

                                                                                

5   for the purposes of subsection (5) or (6).  A district or public school     

                                                                                

6   academy shall not use any of that money for administrative costs or to      

                                                                                

7   supplant another program or other funds, except for funds allocated to      

                                                                                

8   the district or public school academy under this section in the             

                                                                                

9   immediately preceding year and already being used by the district or        

                                                                                

10  public school academy for at-risk pupils.  The instruction or direct        

                                                                                

11  noninstructional services provided under this section may be conducted      

                                                                                

12  before or after regular school hours or by adding extra school days to      

                                                                                

13  the school year and may include, but are not limited to, tutorial           

                                                                                

14  services, early childhood programs to serve children age 0 to 5, and        

                                                                                

15  reading programs as described in former section 32f as in effect for        

                                                                                

16  2001-2002.  A tutorial method may be conducted with paraprofessionals       

                                                                                

17  working under the supervision of a certificated teacher.  The ratio of      

                                                                                

18  pupils to paraprofessionals shall be between 10:1 and 15:1. Only 1          

                                                                                

19  certificated teacher is required to supervise instruction using a           

                                                                                

20  tutorial method.  As used in this subsection, "to supplant another          

                                                                                

21  program" means to take the place of a previously existing instructional     

                                                                                

22  program or direct noninstructional services funded from a funding source    

                                                                                

23  other than funding under this section.                                      

                                                                                

24      (5) Except as otherwise provided in subsection (11), a district or          

                                                                                

25  public school academy that receives funds under this section and that       

                                                                                

26  operates a school breakfast program under section 1272a of the revised      

                                                                                

27  school code, MCL 380.1272a, shall use from the funds received under this    


                                                                                

1   section an amount, not to exceed $10.00 per pupil for whom the district     

                                                                                

2   or public school academy receives funds under this section, necessary to    

                                                                                

3   operate the school breakfast program.                                       

                                                                                

4       (6) From the funds allocated under subsection (1), there is                 

                                                                                

5   allocated beginning with 2003-2004 for 2004-2005 an amount not to exceed    

                                                                                

6   $3,743,000.00 to support teen health centers.  These grants shall be        

                                                                                

7   awarded for 3 consecutive years beginning with 2003-2004 in a form and      

                                                                                

8   manner approved jointly by the department and the department of             

                                                                                

9   community health. Each grant recipient shall remain in compliance with      

                                                                                

10  the terms of the grant award or shall forfeit the grant award for the       

                                                                                

11  duration of the 3-year period after the noncompliance.  If any funds        

                                                                                

12  allocated under this subsection are not used for the purposes of this       

                                                                                

13  subsection for the fiscal year in which they are allocated, those unused    

                                                                                

14  funds shall be used that fiscal year to avoid or minimize any proration     

                                                                                

15  that would otherwise be required under subsection (12) for that fiscal      

                                                                                

16  year.                                                                       

                                                                                

17      (7) Each district or public school academy receiving funds under            

                                                                                

18  this section shall submit to the department by July 15 of each fiscal       

                                                                                

19  year a report, not to exceed 10 pages, on the usage by the district or      

                                                                                

20  public school academy of funds under this section, which report shall       

                                                                                

21  include at least a brief description of each program conducted by the       

                                                                                

22  district or public school academy using funds under this section, the       

                                                                                

23  amount of funds under this section allocated to each of those programs,     

                                                                                

24  the number of at-risk pupils eligible for free or reduced price school      

                                                                                

25  lunch who were served by each of those programs, and the total number of    

                                                                                

26  at-risk pupils served by each of those programs.  If a district or          

                                                                                

27  public school academy does not comply with this subsection, the             


                                                                                

1   department shall withhold an amount equal to the August payment due         

                                                                                

2   under this section until the district or public school academy complies     

                                                                                

3   with this subsection.  If the district or public school academy does not    

                                                                                

4   comply with this subsection by the end of the state fiscal year, the        

                                                                                

5   withheld funds shall be forfeited to the school aid fund.                   

                                                                                

6       (8) In order to receive funds under this section, a district or             

                                                                                

7   public school academy shall allow access for the department or the          

                                                                                

8   department's designee to audit all records related to the program for       

                                                                                

9   which it receives those funds.  The district or public school academy       

                                                                                

10  shall reimburse the state for all disallowances found in the audit.         

                                                                                

11      (9) Subject to subsections (5), (6), and (11), any district may             

                                                                                

12  use up to 100% of the funds it receives under this section to reduce the    

                                                                                

13  ratio of pupils to teachers in grades K-6, or any combination of those      

                                                                                

14  grades, in school buildings in which the percentage of pupils described     

                                                                                

15  in subsection (1) exceeds the district's aggregate percentage of those      

                                                                                

16  pupils.  Subject to subsections (5), (6), and (11), if a district           

                                                                                

17  obtains a waiver from the department, the district may use up to 100% of    

                                                                                

18  the funds it receives under this section to reduce the ratio of pupils      

                                                                                

19  to teachers in grades K-6, or any combination of those grades, in school    

                                                                                

20  buildings in which the percentage of pupils described in subsection (1)     

                                                                                

21  is at least 60% of the district's aggregate percentage of those pupils      

                                                                                

22  and at least 30% of the total number of pupils enrolled in the school       

                                                                                

23  building.  To obtain a waiver, a district must apply to the department      

                                                                                

24  and demonstrate to the satisfaction of the department that the class        

                                                                                

25  size reductions would be in the best interests of the district's at-risk    

                                                                                

26  pupils.                                                                     

                                                                                

27      (10) A district or public school academy may use funds received             


                                                                                

1   under this section for adult high school completion, general education      

                                                                                

2   development (G.E.D.) test preparation, adult English as a second            

                                                                                

3   language, or adult basic education programs described in section 107.       

                                                                                

4       (11) For an individual school or schools operated by a district or          

                                                                                

5   public school academy receiving funds under this section that have been     

                                                                                

6   determined by the department to meet the adequate yearly progress           

                                                                                

7   standards of the federal no child left behind act of 2001, Public Law       

                                                                                

8   107-110, 115 Stat. 1425, in both mathematics and English language arts      

                                                                                

9   at all applicable grade levels for all applicable subgroups, the            

                                                                                

10  district or public school academy may submit to the department an           

                                                                                

11  application for flexibility in using the funds received under this          

                                                                                

12  section that are attributable to the pupils in the school or schools.       

                                                                                

13  The application shall identify the affected school or schools and the       

                                                                                

14  affected funds and shall contain a plan for using the funds for specific    

                                                                                

15  purposes identified by the district that are designed to benefit at-risk    

                                                                                

16  pupils in the school, but that may be different from the purposes           

                                                                                

17  otherwise allowable under this section.  The department shall approve       

                                                                                

18  the application if the department determines that the purposes              

                                                                                

19  identified in the plan are reasonably designed to benefit at-risk pupils    

                                                                                

20  in the school.  If the department does not act to approve or disapprove     

                                                                                

21  an application within 30 days after it is submitted to the department,      

                                                                                

22  the application is considered to be approved.  If an application for        

                                                                                

23  flexibility in using the funds is approved, the district may use the        

                                                                                

24  funds identified in the application for any purpose identified in the       

                                                                                

25  plan.                                                                       

                                                                                

26      (12) If necessary, and before any proration required under section          

                                                                                

27  11, the department shall prorate payments under this section by reducing    


                                                                                

1   the amount of the per pupil payment under this section by a dollar          

                                                                                

2   amount calculated by determining the amount by which the amount             

                                                                                

3   necessary to fully fund the requirements of this section exceeds the        

                                                                                

4   maximum amount allocated under this section and then dividing that          

                                                                                

5   amount by the total statewide number of pupils who met the income           

                                                                                

6   eligibility criteria for free breakfast, lunch, or milk in the              

                                                                                

7   immediately preceding fiscal year, as described in subsection (1).          

                                                                                

8       (13) If a district is formed by consolidation after June 1, 1995,           

                                                                                

9   and if 1 or more of the original districts was not eligible before the      

                                                                                

10  consolidation for an additional allowance under this section, the amount    

                                                                                

11  of the additional allowance under this section for the consolidated         

                                                                                

12  district shall be based on the number of pupils described in subsection     

                                                                                

13  (1) enrolled in the consolidated district who reside in the territory of    

                                                                                

14  an original district that was eligible before the consolidation for an      

                                                                                

15  additional allowance under this section.                                    

                                                                                

16      (14) A district or public school academy that does not meet the             

                                                                                

17  eligibility requirement under subsection (2)(a) is eligible for funding     

                                                                                

18  under this section if at least 1/4 of the pupils in membership in the       

                                                                                

19  district or public school academy met the income eligibility criteria       

                                                                                

20  for free breakfast, lunch, or milk in the immediately preceding state       

                                                                                

21  fiscal year, as determined and reported as described in subsection (1),     

                                                                                

22  and at least 4,500 of the pupils in membership in the district or public    

                                                                                

23  school academy met the income eligibility criteria for free breakfast,      

                                                                                

24  lunch, or milk in the immediately preceding state fiscal year, as           

                                                                                

25  determined and reported as described in subsection (1).  A district or      

                                                                                

26  public school academy that is eligible for funding under this section       

                                                                                

27  because the district meets the requirements of this subsection shall        


                                                                                

1   receive under this section for each membership pupil in the district or     

                                                                                

2   public school academy who met the income eligibility criteria for free      

                                                                                

3   breakfast, lunch, or milk in the immediately preceding fiscal year, as      

                                                                                

4   determined and reported as described in subsection (1), an amount per       

                                                                                

5   pupil equal to 11.5% of the sum of the district's foundation allowance      

                                                                                

6   or public school academy's per pupil allocation under section 20, plus      

                                                                                

7   the amount of the district's per pupil allocation under section 20j(2),     

                                                                                

8   not to exceed $6,500.00 adjusted by the dollar amount of the difference     

                                                                                

9   between the basic foundation allowance under section 20 for the current     

                                                                                

10  state fiscal year and $5,000.00, minus $200.00.                             

                                                                                

11      (15) As used in this section, "at-risk pupil" means a pupil for             

                                                                                

12  whom the district has documentation that the pupil meets at least 2 of      

                                                                                

13  the following criteria: is a victim of child abuse or neglect; is below     

                                                                                

14  grade level in English language and communication skills or mathematics;    

                                                                                

15  is a pregnant teenager or teenage parent; is eligible for a federal free    

                                                                                

16  or reduced-price lunch subsidy; has atypical behavior or attendance         

                                                                                

17  patterns; or has a family history of school failure, incarceration, or      

                                                                                

18  substance abuse.  For pupils for whom the results of at least the           

                                                                                

19  applicable Michigan education assessment program (MEAP) test have been      

                                                                                

20  received, at-risk pupil also includes a pupil who does not meet the         

                                                                                

21  other criteria under this subsection but who did not achieve at least a     

                                                                                

22  score of moderate Level 2 on the most recent MEAP reading test English      

                                                                                

23  language arts, mathematics, or science test for which results for the       

                                                                                

24  pupil have been received, did not achieve at least a score of moderate      

                                                                                

25  on the most recent MEAP mathematics test for which results for the pupil    

                                                                                

26  have been 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 have been     


                                                                                

1   received. For pupils in grades K-3, at-risk pupil also includes a pupil     

                                                                                

2   who is at risk of not meeting the district's core academic curricular       

                                                                                

3   objectives in English language arts , communication skills, or              

                                                                                

4   mathematics.                                                                

                                                                                

5       Sec. 31d. (1) From the appropriations in section 11, there is               

                                                                                

6   allocated an amount not to exceed $18,315,000.00 for 2002-2003 and an       

                                                                                

7   amount not to exceed $21,300,000.00 for 2003-2004 $21,095,100.00 for        

                                                                                

8   2004-2005 for the purpose of making payments to districts and other         

                                                                                

9   eligible entities under this section.                                       

                                                                                

10      (2) The amounts allocated from state sources under this section             

                                                                                

11  shall be used to pay the amount necessary to reimburse districts for        

                                                                                

12  6.0127% of the necessary costs of the state mandated portion of the         

                                                                                

13  school lunch programs provided by those districts. The amount due to        

                                                                                

14  each district under this section shall be computed by the department        

                                                                                

15  using the methods of calculation adopted by the Michigan supreme court      

                                                                                

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

                                                                                

17  supreme court docket no. 104458-104492.                                     

                                                                                

18      (3) The payments made under this section include all state                  

                                                                                

19  payments made to districts so that each district receives at least          

                                                                                

20  6.0127% of the necessary costs of operating the state mandated portion      

                                                                                

21  of the school lunch program in a fiscal year.                               

                                                                                

22      (4) The payments made under this section to districts and other             

                                                                                

23  eligible entities that are not required under section 1272a of the          

                                                                                

24  revised school code, MCL 380.1272a, to provide a school lunch program       

                                                                                

25  shall be in an amount not to exceed $10.00 per eligible pupil plus 5        

                                                                                

26  cents for each free lunch and 2 cents for each reduced price lunch          

                                                                                

27  provided, as determined by the department.                                  


                                                                                

1       (5) From the federal funds appropriated in section 11, there is             

                                                                                

2   allocated for 2003-2004 2004-2005 all available federal funding,            

                                                                                

3   estimated at $272,125,000.00, for the national school lunch program and     

                                                                                

4   all available federal funding, estimated at  $2,506,000.00, for the         

                                                                                

5   emergency food assistance program.                                          

                                                                                

6       (6) Notwithstanding section 17b, payments to eligible entities              

                                                                                

7   other than districts under this section shall be paid on a schedule         

                                                                                

8   determined by the department.                                               

                                                                                

9       Sec. 32.  From the appropriations in section 11 for 2004-2005,              

                                                                                

10  there is allocated an amount not to exceed $82,600,000.00 from the          

                                                                                

11  state school aid fund and an amount not to exceed $450,000.00 from the      

                                                                                

12  general fund to fund project great start, as provided under sections        

                                                                                

13  32c, 32d, 32f and 32j.  The programs funded through this section are        

                                                                                

14  for the purposes of improving parenting skills, encouraging early           

                                                                                

15  literacy training, improving school readiness and mitigating the need       

                                                                                

16  for special education services.                                             

                                                                                

17      Sec. 32c. (1) From the general fund appropriation allocation under          

                                                                                

18  in section 11 32, there is allocated an amount not to exceed $250,000.00    

                                                                                

19  for 2003-2004 2004-2005 to the department for grants for community-based    

                                                                                

20  collaborative prevention services designed to foster positive parenting     

                                                                                

21  skills; improve parent/child interaction, especially for children 0-3       

                                                                                

22  years of age; promote access to needed community services; increase         

                                                                                

23  local capacity to serve families at risk; improve school readiness; and     

                                                                                

24  support healthy family environments that discourage alcohol, tobacco,       

                                                                                

25  and other drug use.  The allocation under this section is to fund           

                                                                                

26  secondary prevention programs as defined by the children's trust fund       

                                                                                

27  for the prevention of child abuse and neglect.                              


                                                                                

1       (2) The funds allocated under subsection (1) shall be distributed           

                                                                                

2   through a joint request for proposals process established by the            

                                                                                

3   department in conjunction with the children's trust fund and the state's    

                                                                                

4   interagency systems reform workgroup children’s action network. Projects    

                                                                                

5   funded with grants awarded under this section shall meet all of the         

                                                                                

6   following:                                                                  

                                                                                

7       (a) Be secondary prevention initiatives and voluntary to                    

                                                                                

8   consumers. This appropriation is not intended to serve the needs of         

                                                                                

9   children for whom and families in which neglect or abuse has been           

                                                                                

10  substantiated.                                                              

                                                                                

11      (b) Demonstrate that the planned services are part of a                     

                                                                                

12  community's integrated comprehensive family support strategy endorsed by    

                                                                                

13  the local multi-purpose collaborative body.                                 

                                                                                

14      (c) Provide a 25% local match, of which not more than 10% may be            

                                                                                

15  in-kind services, unless this requirement is waived by the interagency      

                                                                                

16  systems reform workgroup children’s action network.                         

                                                                                

17      (3) Notwithstanding section 17b, payments under this section may            

                                                                                

18  be made pursuant to an agreement with the department.                       

                                                                                

19      (4) An annual report of outcomes achieved by the providers of the           

                                                                                

20  community-based collaborative prevention services shall be prepared and     

                                                                                

21  submitted to the governor and the legislature not later than January 30     

                                                                                

22  of the following fiscal year.                                               

                                                                                

23      Sec. 32d.    (1) From the state school aid fund money appropriated                       

                                                                                

24  allocated under section 11 32, there is allocated an amount not to          

                                                                                

25  exceed $72,600,000.00 for  2003-2004  2004-2005 for school readiness or     

                                                                                

26  preschool and parenting program grants to enable eligible districts, as     

                                                                                

27  determined under section 37, to develop or expand, in conjunction with      


                                                                                

1   whatever federal funds may be available, including, but not limited to,     

                                                                                

2   federal funds under title I of the elementary and secondary education       

                                                                                

3   act of 1965, Public Law 89-10, 108 Stat. 3519, 20 U.S.C. 6301 to 6304,      

                                                                                

4   6311 to 6339, 6361 to 6368, 6371 to 6376, 6381 to 6383, 6391 to 6399,       

                                                                                

5   6421 to 6472, 6491 to 6494, 6511 to 6518, 6531 to 6537, 6551 to 6561i,      

                                                                                

6   and 6571 to 6578, chapter 1 of title I of the Hawkins-Stafford              

                                                                                

7   elementary and secondary school improvement amendments of 1988, Public      

                                                                                

8   Law 89-10, 102 Stat. 140, and the head start act, subchapter B of           

                                                                                

9   chapter 8 of subtitle A of title VI of the omnibus budget reconciliation    

                                                                                

10  act of 1981, Public Law 97-35, 42 U.S.C. 9831 to 9835, 9836 to 9844,        

                                                                                

11  9846, and 9848 to 9852, comprehensive compensatory programs designed to     

                                                                                

12  do 1 or both of the following:                                              

                                                                                

13      (a) Improve improve the readiness and subsequent achievement of             

                                                                                

14  educationally disadvantaged children as defined by the department who       

                                                                                

15  will be at least 4, but less than 5 years of age, as of December 1 of       

                                                                                

16  the school year in which the programs are offered, and who show evidence    

                                                                                

17  of 2 or more risk factors as defined in the state board report entitled     

                                                                                

18  "children at risk" that was adopted by the state board on April 5, 1988.    

                                                                                

19      (b) Provide preschool and parenting education programs similar to           

                                                                                

20  those under former section 32b as in effect for 2001-2002.                  

                                                                                

21      (2) A comprehensive compensatory program funded under this section          

                                                                                

22  may include an age-appropriate educational curriculum, nutritional          

                                                                                

23  services, health screening for participating children, a plan for parent    

                                                                                

24  and legal guardian involvement, and provision of referral services for      

                                                                                

25  families eligible for community social services.                            

                                                                                

26      (3) In addition to the allocation under subsection (1), from the            

                                                                                

27  general fund money allocated under section 11, there is allocated an        


                                                                                

1   amount not to exceed $200,000.00 for 2003-2004 for the purposes of          

                                                                                

2   subsection (4).                                                             

                                                                                

3       (3) (4) In addition to the allocation under subsection (1), From            

                                                                                

4   from the general fund allocation in subsection (3) under section 32,        

                                                                                

5   there is allocated for   2003-2004  2004-2005 an amount not to exceed       

                                                                                

6   $200,000.00 for a competitive grant to continue a longitudinal              

                                                                                

7   evaluation of children who have participated in the Michigan school         

                                                                                

8   readiness program.                                                          

                                                                                

9       (4) (5) A district receiving a grant under this section may                 

                                                                                

10  contract for the provision of the comprehensive compensatory program and    

                                                                                

11  retain for administrative services an amount equal to not more than 5%      

                                                                                

12  of the grant amount.                                                        

                                                                                

13      (5) (6) A grant recipient receiving funds under this section shall          

                                                                                

14  report to the department no later than October 15 of each year the          

                                                                                

15  number of children participating in the program who meet the income or      

                                                                                

16  other eligibility criteria specified under section 37(3)(g) and the         

                                                                                

17  total number of children participating in the program. For children         

                                                                                

18  participating in the program who meet the income or other eligibility       

                                                                                

19  criteria specified under section 37(3)(g), grant recipients shall also      

                                                                                

20  report whether or not a parent is available to provide care based on        

                                                                                

21  employment status. For the purposes of this subsection, "employment         

                                                                                

22  status" shall be defined by the family independence agency in a manner      

                                                                                

23  consistent with maximizing the amount of spending that may be claimed       

                                                                                

24  for temporary assistance for needy families maintenance of effort           

                                                                                

25  purposes.                                                                   

                                                                                

26      Sec. 32f. (1) In collaboration with central Michigan university,            

                                                                                

27  the department shall From the state school aid fund allocation under        


                                                                                

1   section 32a(1), there is allocated for 2001-2002 an amount not to exceed    

                                                                                

2   $45,000,000.00 and for 2002-2003 and 2003-2004 $0.00, for grants under      

                                                                                

3   this section. From the general fund allocation under section 32a(1),        

                                                                                

4   there is allocated each fiscal year for 2001-2002, 2002-2003, and 2003-     

                                                                                

5   2004 $0.00 for the purposes of subsection (3).                              

                                                                                

6       (2) From the allocation in subsection (1), there is allocated for           

                                                                                

7   2001-2002 an amount not to exceed $2,000,000.00 and for 2002-2003 and       

                                                                                

8   2003-2004 $0.00, for providing grants to the 8 regional literacy centers    

                                                                                

9   for the purposes of expanding training programs for trainers and            

                                                                                

10  teachers in the use of strategies for reading instruction and               

                                                                                

11  assessment, including the Michigan literacy progress profile.               

                                                                                

12      (3) From the general fund allocation in subsection (1), there is            

                                                                                

13  allocated to the department $0.00 each fiscal year for 2001-2002, 2002-     

                                                                                

14  2003, and 2003-2004 for the development and dissemination of develop and    

                                                                                

15  disseminate read, educate, and develop youth (READY) (R.E.A.D.Y) kits to    

                                                                                

16  parents of preschool and kindergarten children to provide these parents     

                                                                                

17  with information about how they can prepare their children for reading      

                                                                                

18  success.                                                                    

                                                                                

19      (4) From the general fund allocation in subsection (1), there is            

                                                                                

20  allocated to the department each fiscal year for 2001-2002, 2002-2003,      

                                                                                

21  and 2003-2004 $0.00 for the grant review process and grant                  

                                                                                

22  administration under this section.                                          

                                                                                

23      (5) Except as otherwise provided in subsection (17), to be                  

                                                                                

24  eligible for a grant under this section, a district must have had at        

                                                                                

25  least 1,500 pupils in membership in 1998-99, and the number of pupils in    

                                                                                

26  the district that have been determined to have a specific learning          

                                                                                

27  disability according to R 340.1713 of the Michigan administrative code,     


                                                                                

1   as determined in the December 1, 1998 head count required under the         

                                                                                

2   individuals with disabilities education act, title VI of Public Law 91-     

                                                                                

3   230, must equal or exceed 5% of the district's membership. In addition,     

                                                                                

4   A district is eligible for a grant under this section if the district       

                                                                                

5   had at least 1,500 pupils in membership in 1998-99 and if not more than     

                                                                                

6   41% of the district's pupils who took the spring 1999 fourth grade MEAP     

                                                                                

7   reading test achieved a score of at least satisfactory. Except as           

                                                                                

8   otherwise provided in subsection (17), for a public school academy to be    

                                                                                

9   eligible for a grant under this section, the public school academy must     

                                                                                

10  be located in a district that is eligible under this subsection.            

                                                                                

11      (6) From the allocation in subsection (1), there is allocated for           

                                                                                

12  2001-2002 an amount not to exceed $43,000,000.00 and for 2002-2003 and      

                                                                                

13  2003-2004 $0.00, for competitive grants to eligible districts, to           

                                                                                

14  intermediate districts, and to public school academies located within       

                                                                                

15  eligible districts for reading improvements programs for pupils in          

                                                                                

16  grades K to 4, reading disorders and reading methods programs, mentoring    

                                                                                

17  programs, language and literacy outreach programs, or cognitive             

                                                                                

18  development programs.  For 2001-2002, grants under this subsection shall    

                                                                                

19  be paid to grant recipients in the same proportion of the total             

                                                                                

20  allocation under this subsection as for 2000-2001. If the legislature       

                                                                                

21  enacts legislation authorizing the appropriation of federal funds for       

                                                                                

22  reading improvement programs for 2001-2002, for 2002-2003, or for 2003-     

                                                                                

23  2004, then it is the intent of the legislature that these funds be used     

                                                                                

24  to the extent possible for the purposes of this subsection.  Federal        

                                                                                

25  funds received for reading improvement programs that can be used for        

                                                                                

26  substantially similar purposes as described under this section shall be     

                                                                                

27  first expended for the purposes of this subsection before funds             


                                                                                

1   appropriated from the state school aid fund allocated under this            

                                                                                

2   subsection, and the expenditure of funds under this subsection from the     

                                                                                

3   state school aid fund shall be reduced by an amount equal to the amount     

                                                                                

4   of the expenditure of federal funds under this subsection.  If any          

                                                                                

5   conflict exists between federal reading program guidelines and this         

                                                                                

6   section, federal law will control.                                          

                                                                                

7       (7) Except as otherwise provided in subsection (17), to qualify             

                                                                                

8   for funding under this section, a proposed reading improvement program      

                                                                                

9   must meet all of the following:                                             

                                                                                

10      (a) The program shall include assessment of reading skills of               

                                                                                

11  pupils in grades K to 4 to identify those pupils who are reading below      

                                                                                

12  grade level and must provide special reading assistance for these           

                                                                                

13  pupils.                                                                     

                                                                                

14      (b) The program shall be a research-based, validated, structured            

                                                                                

15  reading program.                                                            

                                                                                

16      (c) The program shall include continuous assessment of pupils and           

                                                                                

17  individualized education plans for pupils.                                  

                                                                                

18      (d) The program shall align learning resources to state standards.          

                                                                                

19      (e) For each school building receiving funding under this section           

                                                                                

20  for a reading improvement program, the program shall serve at least 25%     

                                                                                

21  of pupils who are identified as at-risk, as determined by the Michigan      

                                                                                

22  literacy progress profile, of reading failure, and the amount of the        

                                                                                

23  grant shall not exceed $85,000.00 per school building annually.             

                                                                                

24      (8) Funds allocated for programs described in subsection (7) may            

                                                                                

25  be used to reimburse grant recipients for funds paid by districts for up    

                                                                                

26  to 1/2 of the salaries and benefits for each teacher trained and            

                                                                                

27  certified to provide a reading improvement program.                         


                                                                                

1       (9) Except as otherwise provided under subsection (17), to qualify          

                                                                                

2   for funding under this section, a proposed mentoring program must be a      

                                                                                

3   research-based, validated program or a statewide 1-to-1 mentoring           

                                                                                

4   program to enhance the independence and life quality of pupils who are      

                                                                                

5   mentally impaired by providing opportunities for mentoring and              

                                                                                

6   integrated employment.                                                      

                                                                                

7       (10) Except as otherwise provided under subsection (17), to                 

                                                                                

8   qualify for funding under this section, a proposed cognitive development    

                                                                                

9   program must be a research-based, validated educational service program,    

                                                                                

10  focused on assessing and building essential cognitive and perceptual        

                                                                                

11  learning abilities to strengthen pupil concentration and learning.          

                                                                                

12      (11) Except as otherwise provided under subsection (17), to                 

                                                                                

13  qualify for funding under this section, a proposed structured mentoring-    

                                                                                

14  tutorial reading program for preschool to grade 4 pupils must be a          

                                                                                

15  research-based, validated program that develops individualized              

                                                                                

16  instructional plans based on each pupil's age, assessed needs, reading      

                                                                                

17  level, interests, and learning style.                                       

                                                                                

18      (12) A program receiving funding under this section may be                  

                                                                                

19  conducted outside of regular school hours or outside the regular school     

                                                                                

20  calendar.                                                                   

                                                                                

21      (13) To compete for a grant under this section, an applicant shall          

                                                                                

22  apply to the superintendent in the form and manner prescribed by the        

                                                                                

23  superintendent.  The department shall make applications available for       

                                                                                

24  this purpose.  An applicant shall include in its application a projected    

                                                                                

25  budget for the programs. The grant recipient shall provide at least a       

                                                                                

26  20% local match from local public or private resources for the funds        

                                                                                

27  received under this section. Not more than 1/2 of this matching             


                                                                                

1   requirement, up to a total of 10% of the total project budget, may be       

                                                                                

2   satisfied through in-kind services provided by participating providers      

                                                                                

3   of programs or services. In addition, not more than 10% of the grant may    

                                                                                

4   be used for program administration.                                         

                                                                                

5       (14) The superintendent shall approve or disapprove applications            

                                                                                

6   and notify the applicant of that decision.  Priority in awarding grants     

                                                                                

7   shall be given to programs that focus on accelerating student               

                                                                                

8   achievement on a cost-effective basis, reducing the number of pupils        

                                                                                

9   requiring special education programs and services, and improving pupil      

                                                                                

10  scores on standardized tests and assessments.                               

                                                                                

11      (15) A grant recipient receiving funds under this section shall             

                                                                                

12  report to the department, in the form and manner prescribed by the          

                                                                                

13  department, on the results achieved by the program. At a minimum, the       

                                                                                

14  grant recipient shall report to the department by October 15 regarding      

                                                                                

15  the program's impact on reducing the number of pupils requiring special     

                                                                                

16  education programs and services and on improving pupil scores on            

                                                                                

17  standardized tests and assessments, and information on the costs and        

                                                                                

18  benefits per unit of pupil improvement. In addition, the report shall       

                                                                                

19  state the number of pupils eligible for free or reduced price school        

                                                                                

20  lunch who received services under the program and the total number of       

                                                                                

21  pupils who received services under the program.  Not later than November    

                                                                                

22  15 of each fiscal year, the department shall submit a report to the         

                                                                                

23  legislature, the state budget director, and the senate and house fiscal     

                                                                                

24  agencies detailing the results of the programs. It is the intent of the     

                                                                                

25  legislature that further funding for the programs under this section        

                                                                                

26  will reflect the results achieved in these programs.                        

                                                                                

27      (16) Notwithstanding section 17b, payments under this section               


                                                                                

1   shall be paid on a schedule determined by the department.                   

                                                                                

2       (17) For a district or public school academy awarded a grant under          

                                                                                

3   former section 32, the determination of whether the district or public      

                                                                                

4   school academy is eligible for a grant under this section may be made       

                                                                                

5   according to the eligibility standards in effect under former section       

                                                                                

6   32.  Further, the district or public school academy may continue to use     

                                                                                

7   the grant proceeds for any use permissible under this section or former     

                                                                                

8   section 32 as in effect at the time the district or public school           

                                                                                

9   academy was awarded the grant.                                              

                                                                                

10      (18) If the maximum amount appropriated under this section exceeds          

                                                                                

11  the amount necessary to fully fund allocations under this section, that     

                                                                                

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

                                                                                

13  instead be carried forward to the succeeding fiscal year and added to       

                                                                                

14  any funds appropriated for that fiscal year for expenditure in that         

                                                                                

15  fiscal year.                                                                

                                                                                

16      (19) A district that received funding for 1999-2000 under former            

                                                                                

17  section 32 shall receive funding under this section for 2001-2002.          

                                                                                

18      (20) A district or intermediate district receiving funds under              

                                                                                

19  this section may carry over any unexpended funds received under this        

                                                                                

20  section to subsequent fiscal years and may expend those unused funds in     

                                                                                

21  subsequent fiscal years.                                                    

                                                                                

22      Sec. 32j. (1) From the appropriation in allocation under section            

                                                                                

23  11 32, there is allocated an amount not to exceed $3,326,000.00             

                                                                                

24  $10,000,000.00 for 2003-2004  2004-2005 for great parents, great start      

                                                                                

25  grants to intermediate districts to provide programs for parents with       

                                                                                

26  preschool children.  The purpose of these programs is to encourage early    

                                                                                

27  literacy, improve school readiness, reduce the need for special             


                                                                                

1   education services, and foster the maintenance of stable families by        

                                                                                

2   encouraging positive parenting skills.                                      

                                                                                

3       (2) To qualify for funding under this section, a program shall              

                                                                                

4   provide services to all families with children age 5 or younger residing    

                                                                                

5   within the intermediate district who choose to participate, including at    

                                                                                

6   least all of the following services:                                        

                                                                                

7       (a) Providing parents with information on child development from            

                                                                                

8   birth to age 5.                                                             

                                                                                

9       (b) Providing parents with methods to enhance parent-child                  

                                                                                

10  interaction; including, but not limited to, encouraging parents to read     

                                                                                

11  to their preschool children at least 1/2 hour per day.                      

                                                                                

12      (c) Providing parents with examples of learning opportunities to            

                                                                                

13  promote intellectual, physical, and social growth of preschoolers.          

                                                                                

14      (d) Promoting access to needed community services through a                 

                                                                                

15  community-school-home partnership.                                          

                                                                                

16      (3) To compete for a grant under this section, an intermediate              

                                                                                

17  district shall apply to the department not later than October 1, 2003       

                                                                                

18  2004 in the form and manner prescribed by the department.  To be            

                                                                                

19  considered for a grant under this section, a grant application shall do     

                                                                                

20  all of the following in a manner prescribed by the department:              

                                                                                

21      (a) Provide a plan for the delivery of the program components               

                                                                                

22  described in subsection (2) that provides for educators trained in child    

                                                                                

23  development to help parents understand their role in their child’s          

                                                                                

24  developmental process, thereby promoting school readiness and mitigating    

                                                                                

25  the need for special education services.                                    

                                                                                

26      (b) Demonstrate an adequate collaboration of local entities                 

                                                                                

27  involved in providing programs and services for preschool children and      


                                                                                

1   their parents.                                                              

                                                                                

2       (c) Provide a projected budget for the program to be funded. The            

                                                                                

3   intermediate district shall provide at least a 20% local match from         

                                                                                

4   local public or private resources for the funds received under this         

                                                                                

5   section.  Not more than 1/2 of this matching requirement, up to a total     

                                                                                

6   of 10% of the total project budget, may be satisfied through in-kind        

                                                                                

7   services provided by participating providers of programs or services.       

                                                                                

8   In addition, not more than 10% of the grant may be used for program         

                                                                                

9   administration.                                                             

                                                                                

10      (4) Each successful grant recipient of a grant under this section           

                                                                                

11  shall agree to include a data collection system and an evaluation tool      

                                                                                

12  approved by the department. to measure the impact of the program on         

                                                                                

13  improving school readiness and fostering the maintenance of stable          

                                                                                

14  families. The data collection system shall provide a report by October      

                                                                                

15  15 of each year on the number of children in families with income below     

                                                                                

16  200% of the federal poverty level that received services under this         

                                                                                

17  program and the total number of children who received services under        

                                                                                

18  this program.                                                               

                                                                                

19      (5) The department or superintendent, as applicable, shall do all           

                                                                                

20  of the following:                                                           

                                                                                

21      (a) The department shall make applications available for the                

                                                                                

22  purposes of this section not later than August 15, 2003 2004.               

                                                                                

23      (b) The superintendent shall approve or disapprove applications             

                                                                                

24  and notify the applying intermediate district of that decision not later    

                                                                                

25  than November 15, 2003 2004.  The amount of each approved grant shall       

                                                                                

26  not exceed 3.5% 10.5% of the intermediate district's 2002-2003 payment      

                                                                                

27  under section 81.                                                           


                                                                                

1       (c) The department shall ensure that all programs funded under              

                                                                                

2   this section utilize the most current validated research-based methods      

                                                                                

3   and curriculum for providing the program components described in            

                                                                                

4   subsection (2).                                                             

                                                                                

5       (d) The department shall submit a report to the state budget                

                                                                                

6   director and the senate and house fiscal agencies detailing the             

                                                                                

7   evaluations summarizing the data collection reports described in            

                                                                                

8   subsection (4) by December 1 of each year.                                  

                                                                                

9       (6) An intermediate district receiving funds under this section             

                                                                                

10  shall use the funds only for the program funded under this section.  An     

                                                                                

11  intermediate district receiving funds under this section may carry over     

                                                                                

12  any unexpended funds received under this section to subsequent fiscal       

                                                                                

13  years and may expend those unused funds in subsequent fiscal years.         

                                                                                

14      Sec. 39a. (1) From the federal funds appropriation in section 11,           

                                                                                

15  there is allocated for 2003-2004 2004-2005 to districts, intermediate       

                                                                                

16  districts, and other eligible entities all available federal funding,       

                                                                                

17  estimated at $665,458,500.00, $664,225,900.00 for the federal programs      

                                                                                

18  under 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 follows:      

                                                                                

20      (a) An amount estimated at $1,666,300.00 for community service              

                                                                                

21  state grants, funded from DED-OESE, community service state grant funds.    

                                                                                

22      (b) An amount estimated at $15,946,200.00 $16,399,300.00 to                 

                                                                                

23  provide students with drug- and violence-prevention programs and to         

                                                                                

24  implement strategies to improve school safety, funded from DED-OESE,        

                                                                                

25  drug-free schools and communities funds.                                    

                                                                                

26      (c) An amount estimated at $14,546,300.00 for the purpose of                

                                                                                

27  improving teaching and learning through a more effective use of             


                                                                                

1   technology, funded from DED-OESE, educational technology state grant        

                                                                                

2   funds.                                                                      

                                                                                

3       (d) An amount estimated at $105,570,600.00 $105,785,600.00 for the          

                                                                                

4   purpose of preparing, training, and recruiting high-quality teachers and    

                                                                                

5   class size reduction, funded from DED-OESE, improving teacher quality       

                                                                                

6   funds.                                                                      

                                                                                

7       (e) An amount estimated at $4,647,700.00 $3,967,900.00 for                  

                                                                                

8   programs to teach English to limited English proficient (LEP) children,     

                                                                                

9   funded from DED-OESE, language acquisition state grant funds.               

                                                                                

10      (f) An amount estimated at $8,550,000.00 for the Michigan charter           

                                                                                

11  school subgrant program, funded from DED-OESE, charter school funds.        

                                                                                

12      (g) An amount estimated at $247,600.00 $40,000.00 for Michigan              

                                                                                

13  model partnership for character education programs, funded from DED-        

                                                                                

14  OESE, title X, fund for improvement of education funds.                     

                                                                                

15      (h) An amount estimated at $2,010,100.00 $610,100.00 for rural and          

                                                                                

16  low income schools, funded from DED-OESE, rural and low income school       

                                                                                

17  funds.                                                                      

                                                                                

18      (i) An amount estimated at $11,123,700.00 to help schools develop           

                                                                                

19  and implement comprehensive school reform programs, funded from DED-        

                                                                                

20  OESE, title I and title X, comprehensive school reform funds.               

                                                                                

21      (j) An amount estimated at $427,000,000.00 $427,165,000.00 to               

                                                                                

22  provide supplemental programs to enable educationally disadvantaged         

                                                                                

23  children to meet challenging academic standards, funded from DED-OESE,      

                                                                                

24  title I, disadvantaged children funds.                                      

                                                                                

25      (k) An amount estimated at $8,246,600.00 for the purpose of                 

                                                                                

26  providing unified family literacy programs, funded from DED-OESE, title     

                                                                                

27  I, even start funds.                                                        


                                                                                

1       (l) An amount estimated at $8,953,100.00 for the purpose of                 

                                                                                

2   identifying and serving migrant children, funded from DED-OESE, title I,    

                                                                                

3   migrant education funds.                                                    

                                                                                

4       (m) An amount estimated at $22,779,000.00 $23,000,700.00 to                 

                                                                                

5   promote high-quality school reading instruction for grades K-3, funded      

                                                                                

6   from DED-OESE, title I, reading first state grant funds.                    

                                                                                

7       (n) An amount estimated at $13,475,000.00 for the purpose of                

                                                                                

8   implementing innovative strategies for improving student achievement,       

                                                                                

9   funded from DED-OESE, title VI, innovative strategies funds.                

                                                                                

10      (o) An amount estimated at $20,696,300.00 for the purpose of                

                                                                                

11  providing high-quality extended learning opportunities, after school and    

                                                                                

12  during the summer, for children in low-performing schools, funded from      

                                                                                

13  DED-OESE, twenty-first century community learning center funds.             

                                                                                

14      (2) From the federal funds appropriation in section 11, there is            

                                                                                

15  allocated for 2003-2004 2004-2005 to districts, intermediate districts,     

                                                                                

16  and other eligible entities all available federal funding, estimated at     

                                                                                

17  $5,421,800.00 $4,821,800.00 each fiscal year, for the following programs    

                                                                                

18  that are funded by federal grants:                                          

                                                                                

19      (a) An amount estimated at $600,000.00 for acquired                         

                                                                                

20  immunodeficiency syndrome education grants, funded from HHS-center for      

                                                                                

21  disease control, AIDS funding.                                              

                                                                                

22      (b) An amount estimated at $1,553,500.00 $953,500.00 for emergency          

                                                                                

23  services to immigrants, funded from DED-OBEMLA, emergency immigrant         

                                                                                

24  education assistance funds.                                                 

                                                                                

25      (c) An amount estimated at $1,468,300.00 to provide services to             

                                                                                

26  homeless children and youth, funded from DED-OVAE, homeless children and    

                                                                                

27  youth funds.                                                                


                                                                                

1       (d) An amount estimated at $1,000,000.00 for refugee children               

                                                                                

2   school impact grants, funded from HHS-ACF, refugee children school          

                                                                                

3   impact funds.                                                               

                                                                                

4       (e) An amount estimated at $800,000.00 for serve America grants,            

                                                                                

5   funded from the corporation for national and community service funds.       

                                                                                

6       (3) All federal funds allocated under this section shall be                 

                                                                                

7   distributed in accordance with federal law and with flexibility             

                                                                                

8   provisions outlined in Public Law 107-116, 115 Stat. 2177 and in the        

                                                                                

9   education flexibility partnership act of 1999, Public Law 106-25, 113       

                                                                                

10  Stat. 41.  Notwithstanding section 17b, payments of federal funds to        

                                                                                

11  districts, intermediate districts, and other eligible entities under        

                                                                                

12  this section shall be paid on a schedule determined by the department.      

                                                                                

13      (4) As used in this section:                                                

                                                                                

14      (a) "DED" means the United States department of education.                  

                                                                                

15      (b) "DED-OBEMLA" means the DED office of bilingual education and            

                                                                                

16  minority languages affairs.                                                 

                                                                                

17      (c) "DED-OESE" means the DED office of elementary and secondary             

                                                                                

18  education.                                                                  

                                                                                

19      (d) "DED-OVAE" means the DED office of vocational and adult                 

                                                                                

20  education.                                                                  

                                                                                

21      (e) "HHS" means the United States department of health and human            

                                                                                

22  services.                                                                   

                                                                                

23      (f) "HHS-ACF" means the HHS administration for children and                 

                                                                                

24  families.                                                                   

                                                                                

25      Sec. 41. From the appropriation in section 11, there is allocated           

                                                                                

26  an amount not to exceed $2,800,000.00 for 2003-2004 2004-2005 to            

                                                                                

27  applicant districts and intermediate districts offering programs of         


                                                                                

1   instruction for pupils of limited English-speaking ability under section    

                                                                                

2   1153 of the revised school code, MCL 380.1153. Reimbursement shall be on    

                                                                                

3   A per pupil basis and shall be based on the number of pupils of limited     

                                                                                

4   English-speaking ability in membership on the pupil membership count        

                                                                                

5   day. Funds allocated under this section shall be used solely for            

                                                                                

6   instruction in speaking, reading, writing, or comprehension of English.     

                                                                                

7   A pupil shall not be counted under this section or instructed in a          

                                                                                

8   program under this section for more than 3 years.                           

                                                                                

9       Sec. 41a. From the federal funds appropriated in section 11, there          

                                                                                

10  is allocated an amount estimated at $1,232,100.00 for 2004-2005 from the    

                                                                                

11  United States department of education - office of elementary and            

                                                                                

12  secondary education, language acquisition state grant funds, to             

                                                                                

13  districts and intermediate districts offering programs of instruction       

                                                                                

14  for pupils of limited English-speaking ability.                             

                                                                                

15      Sec. 51a. (1) From the appropriation in section 11, there is                

                                                                                

16  allocated for 2003-2004  2004-2005 an amount not to exceed                  

                                                                                

17  $882,683,000.00 $906,283,000.00 from state sources and all available        

                                                                                

18  federal funding under sections 611 to 619 of part B of the individuals      

                                                                                

19  with disabilities education act, title VI of Public Law 91-230, 20          

                                                                                

20  U.S.C. 1411 to 1419, estimated at $285,000,000.00 $284,850,000.00 for       

                                                                                

21  2003-2004 2004-2005 plus any carryover federal funds from previous year     

                                                                                

22  appropriations.  The allocations under this subsection are for the          

                                                                                

23  purpose of reimbursing districts and intermediate districts for special     

                                                                                

24  education programs, services, and special education personnel as            

                                                                                

25  prescribed in article 3 of the revised school code, MCL 380.1701 to         

                                                                                

26  380.1766; net tuition payments made by intermediate districts to the        

                                                                                

27  Michigan schools for the deaf and blind; and special education programs     


                                                                                

1   and services for pupils who are eligible for special education programs     

                                                                                

2   and services according to statute or rule. For meeting the costs of         

                                                                                

3   special education programs and services not reimbursed under this           

                                                                                

4   article, a district or intermediate district may use money in general       

                                                                                

5   funds or special education funds, not otherwise restricted, or              

                                                                                

6   contributions from districts to intermediate districts, tuition             

                                                                                

7   payments, gifts and contributions from individuals, or federal funds        

                                                                                

8   that may be available for this purpose, as determined by the                

                                                                                

9   intermediate district plan prepared pursuant to article 3 of the revised    

                                                                                

10  school code, MCL 380.1701 to 380.1766.  All federal funds allocated         

                                                                                

11  under this section in excess of those allocated under this section for      

                                                                                

12  2002-2003 may be distributed in accordance with the flexible funding        

                                                                                

13  provisions of the individuals with disabilities education act, title VI     

                                                                                

14  of Public Law 91-230, including, but not limited to, 34 C.F.R. 300.234      

                                                                                

15  and 300.235. Notwithstanding section 17b, payments of federal funds to      

                                                                                

16  districts, intermediate districts, and other eligible entities under        

                                                                                

17  this section shall be paid on a schedule determined by the department.      

                                                                                

18      (2) From the funds allocated under subsection (1), there is                 

                                                                                

19  allocated for 2003-2004 the amount necessary, estimated at                  

                                                                                

20  $160,500,000.00 for 2003-2004, $169,900,000.00 for 2004-2005, for           

                                                                                

21  payments toward reimbursing districts and intermediate districts for        

                                                                                

22  28.6138% of total approved costs of special education, excluding costs      

                                                                                

23  reimbursed under section 53a, and 70.4165% of total approved costs of       

                                                                                

24  special education transportation.  Allocations under this subsection        

                                                                                

25  shall be made as follows:                                                   

                                                                                

26      (a) The initial amount allocated to a district under this                   

                                                                                

27  subsection toward fulfilling the specified percentages shall be             


                                                                                

1   calculated by multiplying the district's special education pupil            

                                                                                

2   membership, excluding pupils described in subsection (12), times the sum    

                                                                                

3   of the foundation allowance under section 20 of the pupil's district of     

                                                                                

4   residence 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 amount of    

                                                                                

6   the difference between the basic foundation allowance under section 20      

                                                                                

7   for the current fiscal year and $5,000.00 minus $200.00, or, for a          

                                                                                

8   special education pupil in membership in a district that is a public        

                                                                                

9   school academy or university school, times an amount equal to the amount    

                                                                                

10  per membership pupil calculated under section 20(6).  For an                

                                                                                

11  intermediate district, the amount allocated under this subdivision          

                                                                                

12  toward fulfilling the specified percentages shall be an amount per          

                                                                                

13  special education membership pupil, excluding pupils described in           

                                                                                

14  subsection (12), and shall be calculated in the same manner as for a        

                                                                                

15  district, using the foundation allowance under section 20 of the pupil's    

                                                                                

16  district of residence, not to exceed $6,500.00 adjusted by the dollar       

                                                                                

17  amount of the difference between the basic foundation allowance under       

                                                                                

18  section 20 for the current fiscal year and $5,000.00 minus $200.00, and     

                                                                                

19  that district's per pupil allocation under section 20j(2).                  

                                                                                

20      (b) After the allocations under subdivision (a), districts and              

                                                                                

21  intermediate districts for which the payments under subdivision (a) do      

                                                                                

22  not fulfill the specified percentages shall be paid the amount necessary    

                                                                                

23  to achieve the specified percentages for the district or intermediate       

                                                                                

24  district.                                                                   

                                                                                

25      (3) From the funds allocated under subsection (1), there is                 

                                                                                

26  allocated for 2003-2004 2004-2005 the amount necessary, estimated at        

                                                                                

27  $2,600,000.00, $2,100,000.00, to make payments to districts and             


                                                                                

1   intermediate districts under this subsection.  If the amount allocated      

                                                                                

2   to a district or intermediate district for a fiscal year under              

                                                                                

3   subsection (2)(b) is less than the sum of the amounts allocated to the      

                                                                                

4   district or intermediate district for 1996-97 under sections 52 and 58,     

                                                                                

5   there is allocated to the district or intermediate district for the         

                                                                                

6   fiscal year an amount equal to that difference, adjusted by applying the    

                                                                                

7   same proration factor that was used in the distribution of funds under      

                                                                                

8   section 52 in 1996-97 as adjusted to the district's or intermediate         

                                                                                

9   district's necessary costs of special education used in calculations for    

                                                                                

10  the fiscal year.  This adjustment is to reflect reductions in special       

                                                                                

11  education program operations between 1996-97 and subsequent fiscal          

                                                                                

12  years. Adjustments for reductions in special education program              

                                                                                

13  operations shall be made in a manner determined by the department and       

                                                                                

14  shall include adjustments for program shifts.                               

                                                                                

15      (4) If the department determines that the sum of the amounts                

                                                                                

16  allocated for a fiscal year to a district or intermediate district under    

                                                                                

17  subsection (2)(a) and (b) is not sufficient to fulfill the specified        

                                                                                

18  percentages in subsection (2), then the shortfall shall be paid to the      

                                                                                

19  district or intermediate district during the fiscal year beginning on       

                                                                                

20  the October 1 following the determination and payments under subsection     

                                                                                

21  (3) shall be adjusted as necessary.  If the department determines that      

                                                                                

22  the sum of the amounts allocated for a fiscal year to a district or         

                                                                                

23  intermediate district under subsection (2)(a) and (b) exceeds the sum of    

                                                                                

24  the amount necessary to fulfill the specified percentages in subsection     

                                                                                

25  (2), then the department shall deduct the amount of the excess from the     

                                                                                

26  district's or intermediate district's payments under this act for the       

                                                                                

27  fiscal year beginning on the October 1 following the determination and      


                                                                                

1   payments under subsection (3) shall be adjusted as necessary.  However,     

                                                                                

2   if the amount allocated under subsection (2)(a) in itself exceeds the       

                                                                                

3   amount necessary to fulfill the specified percentages in subsection (2),    

                                                                                

4   there shall be no deduction under this subsection.                          

                                                                                

5       (5) State funds shall be allocated on a total approved cost basis.          

                                                                                

6   Federal funds shall be allocated under applicable federal requirements,     

                                                                                

7   except that an amount not to exceed $3,500,000.00 may be allocated by       

                                                                                

8   the department for 2003-2004  2004-2005 to districts or intermediate        

                                                                                

9   districts on a competitive grant basis for programs, equipment, and         

                                                                                

10  services that the department determines to be designed to benefit or        

                                                                                

11  improve special education on a statewide scale.                             

                                                                                

12      (6) From the amount allocated in subsection (1), there is                   

                                                                                

13  allocated an amount not to exceed $2,200,000.00 for 2003-2004 2004-2005     

                                                                                

14  to reimburse 100% of the net increase in necessary costs incurred by a      

                                                                                

15  district or intermediate district in implementing the revisions in the      

                                                                                

16  administrative rules for special education that became effective on July    

                                                                                

17  1, 1987.  As used in this subsection, "net increase in necessary costs"     

                                                                                

18  means the necessary additional costs incurred solely because of new or      

                                                                                

19  revised requirements in the administrative rules minus cost savings         

                                                                                

20  permitted in implementing the revised rules.  Net increase in necessary     

                                                                                

21  costs shall be determined in a manner specified by the department.          

                                                                                

22      (7) For purposes of this article, all of the following apply:               

                                                                                

23      (a) "Total approved costs of special education" shall be                    

                                                                                

24  determined in a manner specified by the department and may include          

                                                                                

25  indirect costs, but shall not exceed 115% of approved direct costs for      

                                                                                

26  section 52 and section 53a programs.  The total approved costs include      

                                                                                

27  salary and other compensation for all approved special education            


                                                                                

1   personnel for the program, including payments for social security and       

                                                                                

2   medicare and public school employee retirement system contributions.        

                                                                                

3   The total approved costs do not include salaries or other compensation      

                                                                                

4   paid to administrative personnel who are not special education personnel    

                                                                                

5   as defined in section 6 of the revised school code, MCL 380.6. Costs        

                                                                                

6   reimbursed by federal funds, other than those federal funds included in     

                                                                                

7   the allocation made under this article, are not included.  Special          

                                                                                

8   education approved personnel not utilized full time in the evaluation of    

                                                                                

9   students or in the delivery of special education programs, ancillary,       

                                                                                

10  and other related services shall be reimbursed under this section only      

                                                                                

11  for that portion of time actually spent providing these programs and        

                                                                                

12  services, with the exception of special education programs and services     

                                                                                

13  provided to youth placed in child caring institutions or juvenile           

                                                                                

14  detention programs approved by the department to provide an on-grounds      

                                                                                

15  education program.                                                          

                                                                                

16      (b) Reimbursement for ancillary and other related services, as              

                                                                                

17  defined by R 340.1701c of the Michigan administrative code, shall not be    

                                                                                

18  provided when those services are covered by and available through           

                                                                                

19  private group health insurance carriers or federal reimbursed program       

                                                                                

20  sources unless the department and district or intermediate district         

                                                                                

21  agree otherwise and that agreement is approved by the state budget          

                                                                                

22  director.  Expenses, other than the incidental expense of filing, shall     

                                                                                

23  not be borne by the parent.  In addition, the filing of claims shall not    

                                                                                

24  delay the education of a pupil.  A district or intermediate district        

                                                                                

25  shall be responsible for payment of a deductible amount and for an          

                                                                                

26  advance payment required until the time a claim is paid.                    

                                                                                

27      (8) From the allocation in subsection (1), there is allocated for           


                                                                                

1   2003-2004 2004-2005 an amount not to exceed $15,313,900.00 to               

                                                                                

2   intermediate districts.  The payment under this subsection to each          

                                                                                

3   intermediate district shall be equal to the amount of the 1996-97           

                                                                                

4   allocation to the intermediate district under subsection (6) of this        

                                                                                

5   section as in effect for 1996-97.                                           

                                                                                

6       (9) A pupil who is enrolled in a full-time special education                

                                                                                

7   program conducted or administered by an intermediate district or a pupil    

                                                                                

8   who is enrolled in the Michigan schools for the deaf and blind shall not    

                                                                                

9   be included in the membership count of a district, but shall be counted     

                                                                                

10  in membership in the intermediate district of residence.                    

                                                                                

11      (10) Special education personnel transferred from 1 district to             

                                                                                

12  another to implement the revised school code shall be entitled to the       

                                                                                

13  rights, benefits, and tenure to which the person would otherwise be         

                                                                                

14  entitled had that person been employed by the receiving district            

                                                                                

15  originally.                                                                 

                                                                                

16      (11) If a district or intermediate district uses money received             

                                                                                

17  under this section for a purpose other than the purpose or purposes for     

                                                                                

18  which the money is allocated, the department may require the district or    

                                                                                

19  intermediate district to refund the amount of money received.  Money        

                                                                                

20  that is refunded shall be deposited in the state treasury to the credit     

                                                                                

21  of the state school aid fund.                                               

                                                                                

22      (12) From the funds allocated in subsection (1), there is                   

                                                                                

23  allocated for 2003-2004 2004-2005 the amount necessary, estimated at        

                                                                                

24  $6,300,000.00 $6,800,000.00, to pay the foundation allowances for pupils    

                                                                                

25  described in this subsection.  The allocation to a district under this      

                                                                                

26  subsection shall be calculated by multiplying the number of pupils          

                                                                                

27  described in this subsection who are counted in membership in the           


                                                                                

1   district times the sum of the foundation allowance under section 20 of      

                                                                                

2   the pupil's district of residence plus the amount of the district's per     

                                                                                

3   pupil allocation under section 20j(2), not to exceed $6,500.00 adjusted     

                                                                                

4   by the dollar amount of the difference between the basic foundation         

                                                                                

5   allowance under section 20 for the current fiscal year and $5,000.00        

                                                                                

6   minus $200.00, or, for a pupil described in this subsection who is          

                                                                                

7   counted in membership in a district that is a public school academy or      

                                                                                

8   university school, times an amount equal to the amount per membership       

                                                                                

9   pupil under section 20(6).  The allocation to an intermediate district      

                                                                                

10  under this subsection shall be calculated in the same manner as for a       

                                                                                

11  district, using the foundation allowance under section 20 of the pupil's    

                                                                                

12  district of residence, not to exceed $6,500.00 adjusted by the dollar       

                                                                                

13  amount of the difference between the basic foundation allowance under       

                                                                                

14  section 20 for the current fiscal year and $5,000.00 minus $200.00, and     

                                                                                

15  that district's per pupil allocation under section 20j(2).  This            

                                                                                

16  subsection applies to all of the following pupils:                          

                                                                                

17      (a) Pupils described in section 53a.                                        

                                                                                

18      (b) Pupils counted in membership in an intermediate district who            

                                                                                

19  are not special education pupils and are served by the intermediate         

                                                                                

20  district in a juvenile detention or child caring facility.                  

                                                                                

21      (c) Emotionally impaired pupils counted in membership by an                 

                                                                                

22  intermediate district and provided educational services by the              

                                                                                

23  department of community health.                                             

                                                                                

24      (13) After payments under subsections (2) and (12) and section              

                                                                                

25  51c, the remaining expenditures from the allocation in subsection (1)       

                                                                                

26  shall be made in the following order:                                       

                                                                                

27      (a) 100% of the reimbursement required under section 53a.                   


                                                                                

1       (b) 100% of the reimbursement required under subsection (6).                

                                                                                

2       (c) 100% of the payment required under section 54.                          

                                                                                

3       (d) 100% of the payment required under subsection (3).                      

                                                                                

4       (e) 100% of the payment required under subsection (8).                      

                                                                                

5       (f) 100% of the payments under section 56.                                  

                                                                                

6       (14) The allocations under subsection (2), subsection (3), and              

                                                                                

7   subsection (12) shall be allocations to intermediate districts only and     

                                                                                

8   shall not be allocations to districts, but instead shall be calculations    

                                                                                

9   used only to determine the state payments under section 22b.                

                                                                                

10      Sec. 51c.  As required by the court in the consolidated cases               

                                                                                

11  known as Durant v State of Michigan, Michigan supreme court docket no.      

                                                                                

12  104458-104492, from the allocation under section 51a(1), there is           

                                                                                

13  allocated for 2003-2004 2004-2005 the amount necessary, estimated at        

                                                                                

14  $644,400,000.00, $658,600,000.00, for payments to reimburse districts       

                                                                                

15  for 28.6138% of total approved costs of special education excluding         

                                                                                

16  costs reimbursed under section 53a, and 70.4165% of total approved costs    

                                                                                

17  of special education transportation.  Funds allocated under this section    

                                                                                

18  that are not expended in the state fiscal year for which they were          

                                                                                

19  allocated, as determined by the department, may be used to supplement       

                                                                                

20  the allocations under sections 22a and 22b in order to fully fund those     

                                                                                

21  calculated allocations for the same fiscal year.                            

                                                                                

22      Sec. 51d. (1) From the federal funds appropriated in section 11,            

                                                                                

23  there is allocated for 2003-2004 2004-2005 all available federal            

                                                                                

24  funding, estimated at $60,500,000.00, for special education programs        

                                                                                

25  that are funded by federal grants.  All federal funds allocated under       

                                                                                

26  this section shall be distributed in accordance with federal law.           

                                                                                

27  Notwithstanding section 17b, payments of federal funds to districts,        


                                                                                

1   intermediate districts, and other eligible entities under this section      

                                                                                

2   shall be paid on a schedule determined by the department.                   

                                                                                

3       (2) From the federal funds allocated under subsection (1), the              

                                                                                

4   following amounts are allocated for 2003-2004 2004-2005:                    

                                                                                

5       (a) An amount estimated at $16,000,000.00 for handicapped infants           

                                                                                

6   and toddlers, funded from DED-OSERS, handicapped infants and toddlers       

                                                                                

7   funds.                                                                      

                                                                                

8       (b) An amount estimated at $13,500,000.00 for preschool grants              

                                                                                

9   (Public Law 94-142), funded from DED-OSERS, handicapped preschool           

                                                                                

10  incentive funds.                                                            

                                                                                

11      (c) An amount estimated at $31,000,000.00 for special education             

                                                                                

12  programs funded by DED-OSERS, handicapped program, individuals with         

                                                                                

13  disabilities act funds.                                                     

                                                                                

14      (3) As used in this section, "DED-OSERS" means the United States            

                                                                                

15  department of education office of special education and rehabilitative      

                                                                                

16  services.                                                                   

                                                                                

17      Sec. 53a. (1) For districts, reimbursement for pupils described in          

                                                                                

18  subsection (2) , reimbursement shall be 100% of the total approved costs    

                                                                                

19  of operating special education programs and services approved by the        

                                                                                

20  department and included in the intermediate district plan adopted           

                                                                                

21  pursuant to article 3 of the revised school code, MCL 380.1701 to           

                                                                                

22  380.1766, minus the district's foundation allowance calculated under        

                                                                                

23  section 20, and minus the amount calculated for the district under          

                                                                                

24  section 20j. For intermediate districts, reimbursement for pupils           

                                                                                

25  described in section (2) shall be calculated in the same manner as for a    

                                                                                

26  district, using the foundation allowance under section 20 of the pupil's    

                                                                                

27  district of residence, not to exceed $6,500.00 adjusted by the dollar       


                                                                                

1   amount of the difference between the basic foundation allowance under       

                                                                                

2   section 20 for the current fiscal year and $5,000.00, minus $200.00, and    

                                                                                

3   under section 20j.                                                          

                                                                                

4       (2) Reimbursement under subsection (1) is for the following                 

                                                                                

5   special education pupils:                                                   

                                                                                

6       (a) Pupils assigned to a district or intermediate district through          

                                                                                

7   the community placement program of the courts or a state agency, if the     

                                                                                

8   pupil was a resident of another intermediate district at the time the       

                                                                                

9   pupil came under the jurisdiction of the court or a state agency.           

                                                                                

10      (b) Pupils who are residents of institutions operated by the                

                                                                                

11  department of community health.                                             

                                                                                

12      (c) Pupils who are former residents of department of community              

                                                                                

13  health institutions for the developmentally disabled who are placed in      

                                                                                

14  community settings other than the pupil's home.                             

                                                                                

15      (d) Pupils enrolled in a department-approved on-grounds                     

                                                                                

16  educational program longer than 180 days, but not longer than 233 days,     

                                                                                

17  at a residential child care institution, if the child care institution      

                                                                                

18  offered in 1991-92 an on-grounds educational program longer than 180        

                                                                                

19  days but not longer than 233 days.                                          

                                                                                

20      (e) Pupils placed in a district by a parent for the purpose of              

                                                                                

21  seeking a suitable home, if the parent does not reside in the same          

                                                                                

22  intermediate district as the district in which the pupil is placed.         

                                                                                

23      (3) Only those costs that are clearly and directly attributable to          

                                                                                

24  educational programs for pupils described in subsection (2), and that       

                                                                                

25  would not have been incurred if the pupils were not being educated in a     

                                                                                

26  district or intermediate district, are reimbursable under this section.     

                                                                                

27      (4) The costs of transportation shall be funded under this section          


                                                                                

1   and shall not be reimbursed under section 58.                               

                                                                                

2       (5) Not more than $12,800,000.00 of the allocation for 2003-2004            

                                                                                

3   2004-2005 in section 51a(1) shall be allocated under this section.          

                                                                                

4       Sec. 54.  In addition to the aid received under section 52, each            

                                                                                

5   intermediate district shall receive an amount per pupil for each pupil      

                                                                                

6   in attendance at the Michigan schools for the deaf and blind.  The          

                                                                                

7   amount shall be proportionate to the total instructional cost at each       

                                                                                

8   school. Not more than $1,688,000.00 of the allocation for 2003-2004         

                                                                                

9   2004-2005 in section 51a(1) shall be allocated under this section.          

                                                                                

10      Sec. 56. (1) For the purposes of this section:                              

                                                                                

11      (a) "Membership" means for a particular fiscal year the total               

                                                                                

12  membership for the immediately preceding fiscal year of the intermediate    

                                                                                

13  district and the districts constituent to the intermediate district.        

                                                                                

14      (b) "Millage levied" means the millage levied for special                   

                                                                                

15  education pursuant to part 30 of the revised school code, MCL 380.1711      

                                                                                

16  to 380.1743, including a levy for debt service obligations.                 

                                                                                

17      (c) "Taxable value" means the total taxable value of the districts          

                                                                                

18  constituent to an intermediate district, except that if a district has      

                                                                                

19  elected not to come under part 30 of the revised school code, MCL           

                                                                                

20  380.1711 to 380.1743, membership and taxable value of the district shall    

                                                                                

21  not be included in the membership and taxable value of the intermediate     

                                                                                

22  district.                                                                   

                                                                                

23      (2) From the allocation under section 51a(1), there is allocated            

                                                                                

24  an amount not to exceed $36,881,100.00 for 2003-2004  2004-2005 to          

                                                                                

25  reimburse intermediate districts levying millages for special education     

                                                                                

26  pursuant to part 30 of the revised school code, MCL 380.1711 to             

                                                                                

27  380.1743.  The purpose, use, and expenditure of the reimbursement shall     


                                                                                

1   be limited as if the funds were generated by these millages and governed    

                                                                                

2   by the intermediate district plan adopted pursuant to article 3 of the      

                                                                                

3   revised school code, MCL 380.1701 to 380.1766.  As a condition of           

                                                                                

4   receiving funds under this section, an intermediate district                

                                                                                

5   distributing any portion of special education millage funds to its          

                                                                                

6   constituent districts shall submit for departmental approval and            

                                                                                

7   implement a distribution plan.                                              

                                                                                

8       (3) Reimbursement for those millages levied in 2002-2003 2003-2004          

                                                                                

9   shall be made in 2003-2004 2004-2005 at an amount per 2002-2003 2003-       

                                                                                

10  2004 membership pupil computed by subtracting from $132,275.00              

                                                                                

11  $133,400.00 the 2002-2003 2003-2004 taxable value behind each membership    

                                                                                

12  pupil and multiplying the resulting difference by the 2002-2003 2003-       

                                                                                

13  2004 millage levied.                                                        

                                                                                

14      Sec. 57. (1) From the appropriation in section 11, there is                 

                                                                                

15  allocated an amount not to exceed $50,000.00 for 2003-2004 2004-2005 to     

                                                                                

16  applicant intermediate districts that provide support services for the      

                                                                                

17  education of advanced and accelerated pupils.  An intermediate district     

                                                                                

18  is entitled to 75% of the actual salary, but not to exceed $25,000.00       

                                                                                

19  reimbursement for an individual salary, of a support services teacher       

                                                                                

20  approved by the department, and not to exceed $4,000.00 reimbursement       

                                                                                

21  for expenditures to support program costs, excluding in-county travel       

                                                                                

22  and salary, as approved by the department.                                  

                                                                                

23      (2) From the appropriation in section 11, there is allocated an             

                                                                                

24  amount not to exceed $0.00 for 2003-2004 2004-2005 to support part of       

                                                                                

25  the cost of summer institutes for advanced and accelerated students.        

                                                                                

26  This amount shall be contracted to applicant intermediate districts in      

                                                                                

27  cooperation with a local institution of higher education and shall be       


                                                                                

1   coordinated by the department.                                              

                                                                                

2       (3) From the appropriation in section 11, there is allocated an             

                                                                                

3   amount not to exceed $200,000.00 for 2003-2004 2004-2005 for the            

                                                                                

4   development and operation of comprehensive programs for advanced and        

                                                                                

5   accelerated pupils.  An eligible district or consortium of districts        

                                                                                

6   shall receive an amount not to exceed $100.00 per K-12 pupil for up to      

                                                                                

7   5% of the district's or consortium's K-12 membership for the immediately    

                                                                                

8   preceding fiscal year with a minimum total grant of $6,000.00. Funding      

                                                                                

9   shall be provided in the following order: the per pupil allotment, and      

                                                                                

10  then the minimum total grant of $6,000.00 to individual districts.  An      

                                                                                

11  intermediate district may act as the fiscal agent for a consortium of       

                                                                                

12  districts.  In order to be eligible for funding under this subsection,      

                                                                                

13  the district or consortium of districts shall submit each year a current    

                                                                                

14  3-year plan for operating a comprehensive program for advanced and          

                                                                                

15  accelerated pupils and the district or consortium shall demonstrate to      

                                                                                

16  the department that the district or consortium will contribute matching     

                                                                                

17  funds of at least $50.00 per K-12 pupil.  The plan or revised plan shall    

                                                                                

18  be developed in accordance with criteria established by the department      

                                                                                

19  and shall be submitted to the department for approval.  Within the          

                                                                                

20  criteria, the department shall encourage the development of consortia       

                                                                                

21  among districts of less than 5,000 memberships.                             

                                                                                

22      Sec. 61a. (1) From the appropriation in section 11, there is                

                                                                                

23  allocated an amount not to exceed $30,000,000.00 for 2003-2004  2004-       

                                                                                

24  2005 to reimburse on an added cost basis districts, except for a            

                                                                                

25  district that served as the fiscal agent for a vocational education         

                                                                                

26  consortium in the 1993-94 school year, and secondary area vocational-       

                                                                                

27  technical education centers for secondary-level vocational-technical        


                                                                                

1   education programs, including parenthood education programs, according      

                                                                                

2   to rules approved by the superintendent.  Applications for participation    

                                                                                

3   in the programs shall be submitted in the form prescribed by the            

                                                                                

4   department.  The department shall determine the added cost for each         

                                                                                

5   vocational-technical program area.  The allocation of added cost funds      

                                                                                

6   shall be based on the type of vocational-technical programs provided,       

                                                                                

7   the number of pupils enrolled, and the length of the training period        

                                                                                

8   provided, and shall not exceed 75% of the added cost of any program.        

                                                                                

9   With the approval of the department, the board of a district maintaining    

                                                                                

10  A secondary vocational-technical education program may offer the program    

                                                                                

11  for the period from the close of the school year until September 1.  The    

                                                                                

12  program shall use existing facilities and shall be operated as              

                                                                                

13  prescribed by rules promulgated by the superintendent.                      

                                                                                

14      (2) Except for a district that served as the fiscal agent for a             

                                                                                

15  vocational education consortium in the 1993-94 school year, districts       

                                                                                

16  and intermediate districts shall be reimbursed for local vocational         

                                                                                

17  administration, shared time vocational administration, and career           

                                                                                

18  education planning district vocational-technical administration.  The       

                                                                                

19  definition of what constitutes administration and reimbursement shall be    

                                                                                

20  pursuant to guidelines adopted by the superintendent.  Not more than        

                                                                                

21  $800,000.00 of the allocation in subsection (1) shall be distributed        

                                                                                

22  under this subsection.                                                      

                                                                                

23      (3) From the allocation in subsection (1), there is allocated an            

                                                                                

24  amount not to exceed $388,700.00 for 2003-2004  2004-2005 to                

                                                                                

25  intermediate districts with constituent districts that had combined         

                                                                                

26  state and local revenue per membership pupil in the 1994-95 state fiscal    

                                                                                

27  year of $6,500.00 or more, served as a fiscal agent for a state board       


                                                                                

1   designated area vocational education center in the 1993-94 school year,     

                                                                                

2   and had an adjustment made to their 1994-95 combined state and local        

                                                                                

3   revenue per membership pupil pursuant to section 20d.  The payment under    

                                                                                

4   this subsection to the intermediate district shall equal the amount of      

                                                                                

5   the allocation to the intermediate district for 1996-97 under this          

                                                                                

6   subsection.                                                                 

                                                                                

7       Sec. 61b.  (1) From the appropriation in section 11, there is               

                                                                                

8   allocated for 2004-2005 an amount not to exceed $1,000,000.00 for           

                                                                                

9   strategic planning grants to intermediate districts or consortiums of       

                                                                                

10  intermediate districts for the purpose of planning for the operation of     

                                                                                

11  learn to earn centers.  The amount of each planning grant shall not         

                                                                                

12  exceed $100,000.00. An intermediate district or consortium of               

                                                                                

13  intermediate districts shall provide at least 100% local match.  An         

                                                                                

14  application for a planning grant shall be made in a form and manner         

                                                                                

15  prescribed by the department.                                               

                                                                                

16      (2) As used in this section:                                                

                                                                                

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

                                                                                

18  more industries that share common skill requirements.                       

                                                                                

19      (b)  "Career preparation system" is a system of programs and                

                                                                                

20  strategies providing pupils with opportunities to prepare for success in    

                                                                                

21  careers of their choice.                                                    

                                                                                

22      (c) "Eligible pupil" means a pupil that:                                    

                                                                                

23      (i) Is at least 15 years of age on December 1 and less than 20              

                                                                                

24  years of age on September 1 of the school year.                             

                                                                                

25      (ii) Has dropped out of school and is not counted in the                    

                                                                                

26  membership of a district.                                                   

                                                                                

27      (iii) Has not obtained a high school diploma or a general                   


                                                                                

1   education development (G.E.D.) certificate.                                 

                                                                                

2       (d) "Intermediate district average weighted foundation allowance"           

                                                                                

3   means the average foundation allowance per membership pupil, calculated     

                                                                                

4   by averaging the foundation allowances per membership pupil of the          

                                                                                

5   intermediate district's constituent districts or consortium of              

                                                                                

6   intermediate district’s constituent districts, weighted as to the           

                                                                                

7   membership.  However, the intermediate district weighted average            

                                                                                

8   foundation allowance for an intermediate district or consortium of          

                                                                                

9   intermediate districts shall not exceed $6,500.00 as adjusted each year     

                                                                                

10  by an amount equal to the dollar amount of the difference between the       

                                                                                

11  basic foundation allowance for the current state fiscal year and            

                                                                                

12  $5,000.00, minus $200.00.                                                   

                                                                                

13      (e) "Learn to earn center" means a high school operated by an               

                                                                                

14  intermediate district or consortium of intermediate districts that is       

                                                                                

15  part of a career preparation system and has implemented a career            

                                                                                

16  development process that allows eligible pupils to receive a high school    

                                                                                

17  diploma.                                                                    

                                                                                

18      (3) A strategic plan resulting from the planning grants awarded             

                                                                                

19  under this section shall contain at least the following components:         

                                                                                

20      (a) Evidence that the learn to earn center is part of a                     

                                                                                

21  comprehensive career preparation system as demonstrated by:                 

                                                                                

22      (i) The active involvement of employers, labor representatives,             

                                                                                

23  and postsecondary institutions in the delivery of education services to     

                                                                                

24  eligible pupils.                                                            

                                                                                

25      (ii) The provision of dual enrollment opportunities and                     

                                                                                

26  articulation agreements with postsecondary institutions.                    

                                                                                

27      (iii) The provision of experiential school-based and work-based             


                                                                                

1   learning opportunities that connect pupils with workers and experts in      

                                                                                

2   various career clusters.                                                    

                                                                                

3       (b) Evidence that the learn to earn center will adopt curricula             

                                                                                

4   that:                                                                       

                                                                                

5       (i) Includes at least English language arts, math, science and              

                                                                                

6   social studies.                                                             

                                                                                

7       (ii) Integrates academic and technical content by career clusters           

                                                                                

8   in a career pathways structure that is consistent with the standards and    

                                                                                

9   benchmarks established by the department of labor and economic growth.      

                                                                                

10      (iii) Uses research-based instructional practices and advanced              

                                                                                

11  technology in the delivery of educational services to eligible pupils.      

                                                                                

12      (iv) Provides entrepreneurship training to eligible pupils who are          

                                                                                

13  interested in operating their own businesses.                               

                                                                                

14      (c) Evidence that the learn to earn center recognizes the needs of          

                                                                                

15  its unique pupil population by:                                             

                                                                                

16      (i) Adopting a comprehensive guidance and counseling program,               

                                                                                

17  consistent with the standards and benchmarks established by the             

                                                                                

18  department of labor and economic growth.                                    

                                                                                

19      (ii) Considering the provision of flexible scheduling and support           

                                                                                

20  services, such as English as a second language, childcare and               

                                                                                

21  transportation.                                                             

                                                                                

22      (d) Evidence that the learn to earn center will develop and                 

                                                                                

23  maintain an education development plan to document each pupil’s             

                                                                                

24  educational and career plans that is consistent with the standards and      

                                                                                

25  benchmarks established by the department of labor and economic growth.      

                                                                                

26      (e) Evidence that the learn to earn center will adopt career                

                                                                                

27  awareness, exploration and assessment processes that assist pupils in       


                                                                                

1   identifying their career pathway goals and that are consistent with the     

                                                                                

2   standards and benchmarks established by the department of labor and         

                                                                                

3   economic growth.                                                            

                                                                                

4       (f) Evidence that the learn to earn center will use the Michigan            

                                                                                

5   educational assessment program assessments and other assessment tools       

                                                                                

6   approved by the department for measuring student academic achievement.      

                                                                                

7       (g) Other components determined jointly by the department and the           

                                                                                

8   department of labor and economic growth.                                    

                                                                                

9       (4) Strategic plans shall be submitted to the department no later           

                                                                                

10  than October 15, 2004.  The department and the department of labor and      

                                                                                

11  economic growth shall review the strategic plans and approve those plans    

                                                                                

12  that are determined to best meet the educational and career needs of        

                                                                                

13  eligible pupils no later than November 15, 2004.                            

                                                                                

14      (5) Beginning in 2004-2005, those intermediate districts or                 

                                                                                

15  consortium of intermediate districts with approved strategic plans shall    

                                                                                

16  be eligible to receive an intermediate district average weighted            

                                                                                

17  foundation allowance, as adjusted under subsection (6), for each            

                                                                                

18  eligible pupil in membership enrolled in a program operated by the          

                                                                                

19  intermediate district or consortium of intermediate districts that is in    

                                                                                

20  compliance with an approved strategic plan.                                 

                                                                                

21      (6) Payments provided for in subsection (5) shall be adjusted as            

                                                                                

22  follows:                                                                    

                                                                                

23      (a) Eighty percent shall be paid for enrollment of eligible                 

                                                                                

24  pupils.  "Enrollment" for the purposes of this subsection includes the      

                                                                                

25  development of an education development plan for each pupil enrolled on     

                                                                                

26  the pupil membership count day or the supplemental count day, as            

                                                                                

27  applicable.                                                                 


                                                                                

1       (b) Twenty percent shall be paid for:                                       

                                                                                

2       (i) An increase of at least 1 grade level of proficiency in                 

                                                                                

3   reading or mathematics as measured by a pretest and posttest; or            

                                                                                

4       (ii) The satisfactory completion of a course required in order to           

                                                                                

5   attain a high school diploma; or                                            

                                                                                

6       (iii) The attainment of a high school diploma.                              

                                                                                

7       (7) Beginning in 2004-2005, intermediate districts or consortium            

                                                                                

8   of intermediate districts may award a high school diploma to an eligible    

                                                                                

9   pupil who successfully completes learn to earn center requirements          

                                                                                

10  established in accordance with state law for high school graduation.        

                                                                                

11      (8) The department, in collaboration with the department of labor           

                                                                                

12  and economic growth, shall do at least all of the following:                

                                                                                

13      (a) Develop and provide guidelines to intermediate districts for            

                                                                                

14  the development of strategic plans.                                         

                                                                                

15      (b) Implement a strategic planning grant submission and approval            

                                                                                

16  process.                                                                    

                                                                                

17      (c) Identify approved assessment tools for measuring pupil                  

                                                                                

18  achievement.                                                                

                                                                                

19      Sec. 62. (1) For the purposes of this section:                              

                                                                                

20      (a) "Membership" means for a particular fiscal year the total               

                                                                                

21  membership for the immediately preceding fiscal year of the intermediate    

                                                                                

22  district and the districts constituent to the intermediate district or      

                                                                                

23  the total membership for the immediately preceding fiscal year of the       

                                                                                

24  area vocational-technical program.                                          

                                                                                

25      (b) "Millage levied" means the millage levied for area vocational-          

                                                                                

26  technical education pursuant to sections 681 to 690 of the revised          

                                                                                

27  school code, MCL 380.681 to 380.690, including a levy for debt service      


                                                                                

1   obligations incurred as the result of borrowing for capital outlay          

                                                                                

2   projects and in meeting capital projects fund requirements of area          

                                                                                

3   vocational-technical education.                                             

                                                                                

4       (c) "Taxable value" means the total taxable value of the districts          

                                                                                

5   constituent to an intermediate district or area vocational-technical        

                                                                                

6   education program, except that if a district has elected not to come        

                                                                                

7   under sections 681 to 690 of the revised school code, MCL 380.681 to        

                                                                                

8   380.690, the membership and taxable value of that district shall not be     

                                                                                

9   included in the membership and taxable value of the intermediate            

                                                                                

10  district.  However, the membership and taxable value of a district that     

                                                                                

11  has elected not to come under sections 681 to 690 of the revised school     

                                                                                

12  code, MCL 380.681 to 380.690, shall be included in the membership and       

                                                                                

13  taxable value of the intermediate district if the district meets both of    

                                                                                

14  the following:                                                              

                                                                                

15      (i) The district operates the area vocational-technical education           

                                                                                

16  program pursuant to a contract with the intermediate district.              

                                                                                

17      (ii) The district contributes an annual amount to the operation of          

                                                                                

18  the program that is commensurate with the revenue that would have been      

                                                                                

19  raised for operation of the program if millage were levied in the           

                                                                                

20  district for the program under sections 681 to 690 of the revised school    

                                                                                

21  code, MCL 380.681 to 380.690.                                               

                                                                                

22      (2) From the appropriation in section 11, there is allocated an             

                                                                                

23  amount not to exceed $9,000,000.00 for 2003-2004 2004-2005 to reimburse     

                                                                                

24  intermediate districts and area vocational-technical education programs     

                                                                                

25  established under section 690(3) of the revised school code, MCL            

                                                                                

26  380.690, levying millages for area vocational-technical education           

                                                                                

27  pursuant to sections 681 to 690 of the revised school code, MCL 380.681     


                                                                                

1   to 380.690.  The purpose, use, and expenditure of the reimbursement         

                                                                                

2   shall be limited as if the funds were generated by those millages.          

                                                                                

3       (3) Reimbursement for the millages levied in 2002-2003 2003-2004            

                                                                                

4   shall be made in 2003-2004 2004-2005 at an amount per 2002-2003 2003-       

                                                                                

5   2004 membership pupil computed by subtracting from $137,700.00              

                                                                                

6   $142,200.00 the 2002-2003 2003-2004 taxable value behind each membership    

                                                                                

7   pupil and multiplying the resulting difference by the 2002-2003 2003-       

                                                                                

8   2004 millage levied.                                                        

                                                                                

9       Sec. 74.     (1) From the amount appropriated in section 11, there is                    

                                                                                

10  allocated an amount not to exceed $1,625,000.00 for 2003-2004 2004-2005     

                                                                                

11  for the purposes of subsections (2) and (3).                                

                                                                                

12      (2) From the allocation in subsection (1), there is allocated each          

                                                                                

13  fiscal year the amount necessary for payments to state supported            

                                                                                

14  colleges or universities and intermediate districts providing school bus    

                                                                                

15  driver safety instruction or driver skills road tests pursuant to           

                                                                                

16  sections 51 and 52 of the pupil transportation act, 1990 PA 187, MCL        

                                                                                

17  257.1851 and 257.1852.  The payments shall be in an amount determined by    

                                                                                

18  the department not to exceed 75% of the actual cost of instruction and      

                                                                                

19  driver compensation for each public or nonpublic school bus driver          

                                                                                

20  attending a course of instruction.  For the purpose of computing            

                                                                                

21  compensation, the hourly rate allowed each school bus driver shall not      

                                                                                

22  exceed the hourly rate received for driving a school bus.  Reimbursement    

                                                                                

23  compensating the driver during the course of instruction or driver          

                                                                                

24  skills road tests shall be made by the department to the college or         

                                                                                

25  university or intermediate district providing the course of instruction.    

                                                                                

26      (3) From the allocation in subsection (1), there is allocated each          

                                                                                

27  fiscal year the amount necessary to pay the reasonable costs of             


                                                                                

1   nonspecial education auxiliary services transportation provided pursuant    

                                                                                

2   to section 1323 of the revised school code, MCL 380.1323. Districts         

                                                                                

3   funded under this subsection shall not receive funding under any other      

                                                                                

4   section of this act for nonspecial education auxiliary services             

                                                                                

5   transportation.                                                             

                                                                                

6       Sec. 81. (1) Except as otherwise provided in this section, from             

                                                                                

7   the appropriation in section 11, there is allocated for 2003-2004 2004-     

                                                                                

8   2005 to the intermediate districts the sum necessary, but not to exceed     

                                                                                

9   $91,702,100.00, $84,028,100.00, to provide state aid to intermediate        

                                                                                

10  districts under this section.  Except as otherwise provided in this         

                                                                                

11  section, there shall be allocated to each intermediate district for         

                                                                                

12  2003-2004 2004-2005 an amount equal to 96.5% 88.4% of the amount            

                                                                                

13  appropriated under this subsection for 2002-2003 in 2002 PA 521, before     

                                                                                

14  any reduction made for 2002-2003 under section 11(3). Funding provided      

                                                                                

15  under this section shall be used to comply with requirements of this act    

                                                                                

16  and the revised school code that are applicable to intermediate             

                                                                                

17  districts, and for which funding is not provided elsewhere in this act,     

                                                                                

18  and to provide technical assistance to districts as authorized by the       

                                                                                

19  intermediate school board.                                                  

                                                                                

20      (2) From the allocation in subsection (1), there is allocated to            

                                                                                

21  an intermediate district, formed by the consolidation or annexation of 2    

                                                                                

22  or more intermediate districts or the attachment of a total intermediate    

                                                                                

23  district to another intermediate school district or the annexation of       

                                                                                

24  all of the constituent K-12 districts of a previously existing              

                                                                                

25  intermediate school district which has disorganized, an additional          

                                                                                

26  allotment of $3,500.00 each fiscal year for each intermediate district      

                                                                                

27  included in the new intermediate district for 3 years following             


                                                                                

1   consolidation, annexation, or attachment.                                   

                                                                                

2       (3) During a fiscal year, the department shall not increase an              

                                                                                

3   intermediate district's allocation under subsection (1) because of an       

                                                                                

4   adjustment made by the department during the fiscal year in the             

                                                                                

5   intermediate district's taxable value for a prior year. Instead, the        

                                                                                

6   department shall report the adjustment and the estimated amount of the      

                                                                                

7   increase to the house and senate fiscal agencies and the state budget       

                                                                                

8   director not later than June 1 of the fiscal year, and the legislature      

                                                                                

9   shall appropriate money for the adjustment in the next succeeding fiscal    

                                                                                

10  year.                                                                       

                                                                                

11      (4) In order to receive funding under this section, an                      

                                                                                

12  intermediate district shall demonstrate to the satisfaction of the          

                                                                                

13  department that the intermediate district employs at least 1 person who     

                                                                                

14  is trained in pupil counting procedures, rules, and regulations.            

                                                                                

15      Sec. 94a. (1) There is created within the office of the state               

                                                                                

16  budget director in the department of management and budget the center       

                                                                                

17  for educational performance and information.  The center shall do all of    

                                                                                

18  the following:                                                              

                                                                                

19      (a) Coordinate the collection of all data required by state and             

                                                                                

20  federal law from all entities receiving funds under this act.               

                                                                                

21      (b) Collect data in the most efficient manner possible in order to          

                                                                                

22  reduce the administrative burden on reporting entities.                     

                                                                                

23      (c) Establish procedures to ensure the validity and reliability of          

                                                                                

24  the data and the collection process.                                        

                                                                                

25      (d) Develop state and model local data collection policies,                 

                                                                                

26  including, but not limited to, policies that ensure the privacy of          

                                                                                

27  individual student data.  State privacy policies shall ensure that          


                                                                                

1   student social security numbers are not released to the public for any      

                                                                                

2   purpose.                                                                    

                                                                                

3       (e) Provide data in a useful manner to allow state and local                

                                                                                

4   policymakers to make informed policy decisions.                             

                                                                                

5       (f) Provide reports to the citizens of this state to allow them to          

                                                                                

6   assess allocation of resources and the return on their investment in the    

                                                                                

7   education system of this state.                                             

                                                                                

8       (g) Assist all entities receiving funds under this act in                   

                                                                                

9   complying with audits performed according to generally accepted             

                                                                                

10  accounting procedures.                                                      

                                                                                

11      (h) Other functions as assigned by the state budget director.               

                                                                                

12      (2) Not later than August 15, 2004, each state department,                  

                                                                                

13  officer, or agency that collects information from districts or              

                                                                                

14  intermediate districts as required under state or federal law shall make    

                                                                                

15  arrangements with the center, and with the districts or intermediate        

                                                                                

16  districts, to have the center collect the information and to provide it     

                                                                                

17  to the department, officer, or agency as necessary.  To the extent that     

                                                                                

18  it does not cause financial hardship, the center shall arrange to           

                                                                                

19  collect the information in a manner that allows electronic submission of    

                                                                                

20  the information to the center.  Each affected state department, officer,    

                                                                                

21  or agency shall provide the center with any details necessary for the       

                                                                                

22  center to collect information as provided under this subsection.  This      

                                                                                

23  subsection does not apply to information collected by the department of     

                                                                                

24  treasury under the uniform budgeting and accounting act, 1968 PA 2, MCL     

                                                                                

25  141.421 to 141.440a; the revised municipal finance act, 2001 PA 34, MCL     

                                                                                

26  141.2101 to 141.2821; 1961 PA 108, MCL 388.951 to 388.963; or section       

                                                                                

27  1351a of the revised school code, MCL 380.1351a.                            


                                                                                

1       (3) The state budget director shall appoint a CEPI advisory                 

                                                                                

2   committee, consisting of the following members:                             

                                                                                

3       (a) One representative from the house fiscal agency.                        

                                                                                

4       (b) One representative from the senate fiscal agency.                       

                                                                                

5       (c) One representative from the office of the state budget                  

                                                                                

6   director.                                                                   

                                                                                

7       (d) One representative from the state education agency.                     

                                                                                

8       (e) One representative each from the department of career                   

                                                                                

9   development labor and economic growth and the department of treasury.       

                                                                                

10      (f) Three representatives from intermediate school districts.               

                                                                                

11      (g) One representative from each of the following educational               

                                                                                

12  organizations:                                                              

                                                                                

13      (i) Michigan association of school boards.                                  

                                                                                

14      (ii) Michigan association of school administrators.                         

                                                                                

15      (iii) Michigan school business officials.                                   

                                                                                

16      (h) One representative representing private sector firms                    

                                                                                

17  responsible for auditing school records.                                    

                                                                                

18      (i) Other representatives as the state budget director determines           

                                                                                

19  are necessary.                                                              

                                                                                

20      (4) The CEPI advisory committee appointed under subsection (3)              

                                                                                

21  shall provide advice to the director of the center regarding the            

                                                                                

22  management of the center's data collection activities, including, but       

                                                                                

23  not limited to:                                                             

                                                                                

24      (a) Determining what data is necessary to collect and maintain in           

                                                                                

25  order to perform the center's functions in the most efficient manner        

                                                                                

26  possible.                                                                   

                                                                                

27      (b) Defining the roles of all stakeholders in the data collection           


                                                                                

1   system.                                                                     

                                                                                

2       (c) Recommending timelines for the implementation and ongoing               

                                                                                

3   collection of data.                                                         

                                                                                

4       (d) Establishing and maintaining data definitions, data                     

                                                                                

5   transmission protocols, and system specifications and procedures for the    

                                                                                

6   efficient and accurate transmission and collection of data.                 

                                                                                

7       (e) Establishing and maintaining a process for ensuring the                 

                                                                                

8   accuracy of the data.                                                       

                                                                                

9       (f) Establishing and maintaining state and model local policies             

                                                                                

10  related to data collection, including, but not limited to, privacy          

                                                                                

11  policies related to individual student data.                                

                                                                                

12      (g) Ensuring the data is made available to state and local                  

                                                                                

13  policymakers and citizens of this state in the most useful format           

                                                                                

14  possible.                                                                   

                                                                                

15      (h) Other matters as determined by the state budget director or             

                                                                                

16  the director of the center.                                                 

                                                                                

17      (5) The center may enter into any interlocal agreements necessary           

                                                                                

18  to fulfill its functions.                                                   

                                                                                

19      (6) From the general fund appropriation in section 11, there is             

                                                                                

20  allocated an amount not to exceed $4,500,000.00 each fiscal year for        

                                                                                

21  2002-2003 and for 2003-2004 $1,500,000.00 for 2004-2005 to the              

                                                                                

22  department of management and budget to support the operations of the        

                                                                                

23  center.  The center shall cooperate with the state education agency to      

                                                                                

24  ensure that this state is in compliance with federal law and is             

                                                                                

25  maximizing opportunities for increased federal funding to improve           

                                                                                

26  education in this state.  In addition, from the federal funds               

                                                                                

27  appropriated in section 11 for 2002-2003 and for 2003-2004 2004-2005,       


                                                                                

1   there is allocated the following amounts each fiscal year in order to       

                                                                                

2   fulfill federal reporting requirements:                                     

                                                                                

3       (a) An amount estimated at $1,000,000.00 not to exceed                      

                                                                                

4   $835,000.00 funded from DED-OESE, title I, disadvantaged children funds.    

                                                                                

5       (b) An amount estimated at $284,700.00 not to exceed $63,000.00             

                                                                                

6   funded from DED-OESE, title I, reading first state grant funds.             

                                                                                

7       (c) An amount estimated at $46,750.00 not to exceed $46,800.00              

                                                                                

8   funded from DED-OESE, title I, migrant education funds.                     

                                                                                

9       (d) An amount estimated at $500,000.00 not to exceed $285,000.00            

                                                                                

10  funded from DED-OESE, improving teacher quality funds.                      

                                                                                

11      (e) An amount estimated at $526,100.00 not to exceed $73,000.00             

                                                                                

12  funded from DED-OESE, drug-free schools and communities funds.              

                                                                                

13      (f) An amount not to exceed $150,000.00 funded under sections 611           

                                                                                

14  to 619 of part B of the individuals with disabilities education act,        

                                                                                

15  title VI of Public Law 91-230, 20 U.S.C. 1411 to 1419.                      

                                                                                

16      (g) An amount not to exceed $13,500.00 for data collection                  

                                                                                

17  systems, funded from DED-NCES, common core data funds.                      

                                                                                

18      (h) An amount not to exceed $400,000.00 for the collection and              

                                                                                

19  dissemination of state assessment data, funded from DED-OESE, title VI,     

                                                                                

20  state assessments funds.                                                    

                                                                                

21      (7) In addition, from the federal funds appropriated in section 11          

                                                                                

22  for fiscal years 2003-2004 and 2004-2005, there is allocated the            

                                                                                

23  following amounts each fiscal year in order to fulfill federal reporting    

                                                                                

24  requirements:                                                               

                                                                                

25      (a) An amount not to exceed $80,000.00 for data collection                  

                                                                                

26  systems, funded from DED-NCES, task award funds.                            

                                                                                

27      (b) An amount not to exceed $100,000.00 for data collection                 


                                                                                

1   systems development funded from DED-NCES, performance based data            

                                                                                

2   management initiative.                                                      

                                                                                

3       (8) (7) Funds allocated under this section that are not expended            

                                                                                

4   in the fiscal year in which they were allocated may be carried forward      

                                                                                

5   to a subsequent fiscal year.  From the funds allocated for 1999-2000        

                                                                                

6   that were carried forward under this section and from the general funds     

                                                                                

7   appropriated under this section for 2002-2003, the center shall make        

                                                                                

8   grants to intermediate districts for the purpose of assisting the           

                                                                                

9   intermediate districts and their constituent districts in data              

                                                                                

10  collection required by state and federal law or necessary for audits        

                                                                                

11  according to generally accepted accounting procedures.  Grants to each      

                                                                                

12  intermediate district shall be made at the rate of $2.00 per each full-     

                                                                                

13  time equated membership pupil times the total number of 2000-2001 pupils    

                                                                                

14  in membership in the intermediate district and its constituent              

                                                                                

15  districts.  An intermediate district shall develop a plan in cooperation    

                                                                                

16  with its constituent districts to distribute the grants between the         

                                                                                

17  intermediate district and its constituent districts.  These grants shall    

                                                                                

18  be paid to intermediate districts no later than the next regularly          

                                                                                

19  scheduled school aid payment after the effective date of this section.      

                                                                                

20      (8) If the applicable intermediate district determines that the             

                                                                                

21  pupil counts submitted by a district for the February 2002 supplemental     

                                                                                

22  pupil count using the single record student database cannot be audited      

                                                                                

23  by the intermediate district pursuant to section 101, all of the            

                                                                                

24  following apply:                                                            

                                                                                

25      (a) The district may submit its pupil count data for the February           

                                                                                

26  2002 supplemental pupil count using the education data network system.      

                                                                                

27      (b) If the applicable intermediate district determines that the             


                                                                                

1   pupil counts submitted by the district for the 2002-2003 pupil              

                                                                                

2   membership count day using the single record student database cannot be     

                                                                                

3   audited by the intermediate district pursuant to section 101, the           

                                                                                

4   district may submit its pupil count data for the 2002-2003 pupil            

                                                                                

5   membership count day using the education data network system.               

                                                                                

6       (9) At least 30 days before implementing a proposed electronic              

                                                                                

7   data collection, submission, or collation process, or a proposed change     

                                                                                

8   to 1 or more of those processes, the center shall submit the proposal       

                                                                                

9   and an analysis of the proposal to the senate and house of                  

                                                                                

10  representatives appropriations subcommittees responsible for this act.      

                                                                                

11  The analysis shall include at least a determination of the cost of the      

                                                                                

12  proposal for districts and intermediate districts and of available          

                                                                                

13  funding for districts and intermediate districts.                           

                                                                                

14      (9) (10) The center may bill departments as necessary in order to           

                                                                                

15  fulfill reporting requirements of state and federal law.                    

                                                                                

16      (10) (11) As used in this section:                                          

                                                                                

17      (a) "Center" means the center for educational performance and               

                                                                                

18  information created under this section.                                     

                                                                                

19      (a) (b) "DED-OESE" means the United States department of education          

                                                                                

20  office of elementary and secondary education.                               

                                                                                

21      (b) (c) "State education agency" means the department.                      

                                                                                

22      (c) "DED-NCES" means the United States department of education              

                                                                                

23  national center for education statistics.                                   

                                                                                

24      Sec. 98. (1) From the general fund money appropriated in section            

                                                                                

25  11, there is allocated an amount not to exceed $750,000.00 for 2003-2004    

                                                                                

26  2004-2005 to provide a grant to the Michigan virtual university for the     

                                                                                

27  development, implementation, and operation of the Michigan virtual high     


                                                                                

1   school and to fund other purposes described in this section. In             

                                                                                

2   addition, from the federal funds appropriated in section 11, there is       

                                                                                

3   allocated for 2003-2004 2004-2005 an amount estimated at $2,250,000.00      

                                                                                

4   from DED-OESE, title II, improving teacher quality funds.                   

                                                                                

5       (2) The Michigan virtual high school shall have the following               

                                                                                

6   goals:                                                                      

                                                                                

7       (a) Significantly expand curricular offerings for high schools              

                                                                                

8   across this state through agreements with districts or licenses from        

                                                                                

9   other recognized providers. The Michigan virtual university shall           

                                                                                

10  explore options for providing rigorous civics curricula online.             

                                                                                

11      (b) Create statewide instructional models using interactive                 

                                                                                

12  multimedia tools delivered by electronic means, including, but not          

                                                                                

13  limited to, the internet, digital broadcast, or satellite network, for      

                                                                                

14  distributed learning at the high school level.                              

                                                                                

15      (c) Provide pupils with opportunities to develop skills and                 

                                                                                

16  competencies through on-line learning.                                      

                                                                                

17      (d) Offer teachers opportunities to learn new skills and                    

                                                                                

18  strategies for developing and delivering instructional services.            

                                                                                

19      (e) Accelerate this state's ability to respond to current and               

                                                                                

20  emerging educational demands.                                               

                                                                                

21      (f) Grant high school diplomas through a dual enrollment method             

                                                                                

22  with districts.                                                             

                                                                                

23      (g) Act as a broker for college level equivalent courses, as                

                                                                                

24  defined in section 1471 of the revised school code, MCL 380.1471, and       

                                                                                

25  dual enrollment courses from postsecondary education institutions.          

                                                                                

26      (3) The Michigan virtual high school course offerings shall                 

                                                                                

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


                                                                                

1       (a) Information technology courses.                                         

                                                                                

2       (b) College level equivalent courses, as defined in section 1471            

                                                                                

3   of the revised school code, MCL 380.1471.                                   

                                                                                

4       (c) Courses and dual enrollment opportunities.                              

                                                                                

5       (d) Programs and services for at-risk pupils.                               

                                                                                

6       (e) General education development test preparation courses for              

                                                                                

7   adjudicated youth.                                                          

                                                                                

8       (f) Special interest courses.                                               

                                                                                

9       (g) Professional development programs and services for teachers.            

                                                                                

10      (4) The state education agency shall sign a memorandum of                   

                                                                                

11  understanding with the Michigan virtual university regarding the DED-       

                                                                                

12  OESE, title II, improving teacher quality funds as provided under this      

                                                                                

13  subsection. The memorandum of understanding under this subsection shall     

                                                                                

14  require that the Michigan virtual university coordinate the following       

                                                                                

15  activities related to DED-OESE, title II, improving teacher quality         

                                                                                

16  funds in accordance with federal law:                                       

                                                                                

17      (a) Develop, and assist districts in the development and use of,            

                                                                                

18  proven, innovative strategies to deliver intensive professional             

                                                                                

19  development programs that are both cost-effective and easily accessible,    

                                                                                

20  such as strategies that involve delivery through the use of technology,     

                                                                                

21  peer networks, and distance learning.                                       

                                                                                

22      (b) Encourage and support the training of teachers and                      

                                                                                

23  administrators to effectively integrate technology into curricula and       

                                                                                

24  instruction.                                                                

                                                                                

25      (c) Coordinate the activities of eligible partnerships that                 

                                                                                

26  include higher education institutions for the purposes of providing         

                                                                                

27  professional development activities for teachers, paraprofessionals, and    


                                                                                

1   principals as defined in federal law.                                       

                                                                                

2       (5) If a home-schooled or nonpublic school student is a resident            

                                                                                

3   of a district that subscribes to services provided by the Michigan          

                                                                                

4   virtual university, the student may use the services provided by the        

                                                                                

5   Michigan virtual university to the district without charge to the           

                                                                                

6   student beyond what is charged to a district pupil using the same           

                                                                                

7   services.                                                                   

                                                                                

8       (6) From the allocations in subsection (1), the amount necessary,           

                                                                                

9   not to exceed $1,250,000.00, shall be used to provide online                

                                                                                

10  professional development for classroom teachers.  This allocation is        

                                                                                

11  intended to be for the first second of 3 years.  These funds may be used    

                                                                                

12  for designing and building courses, marketing and outreach, workshops       

                                                                                

13  and evaluation, content acquisition, technical assistance, project          

                                                                                

14  management, and customer support. The Michigan virtual university shall     

                                                                                

15  offer at least 5 hours of online professional development for classroom     

                                                                                

16  teachers under this section in 2003-2004 2004-2005 without charge to the    

                                                                                

17  teachers or to districts or intermediate districts.                         

                                                                                

18      (7) A district or intermediate district may require a full-time             

                                                                                

19  teacher to participate in at least 5 hours of online professional           

                                                                                

20  development provided by the Michigan virtual university under subsection    

                                                                                

21  (6).  Five hours of this professional development shall be considered to    

                                                                                

22  be part of the 51 hours allowed to be counted as hours of pupil             

                                                                                

23  instruction under section 101(10).                                          

                                                                                

24      (8) As used in this section:                                                

                                                                                

25      (a) "DED-OESE" means the United States department of education              

                                                                                

26  office of elementary and secondary education.                               

                                                                                

27      (b) "State education agency" means the department.                          


                                                                                

1       Sec. 98b. (1) From the school aid stabilization fund created in             

                                                                                

2   section 11a, there is appropriated and allocated for 2003-2004 2004-2005    

                                                                                

3   an amount not to exceed $22,000,000.00 $5,000,000.00 for the freedom to     

                                                                                

4   learn program described in this section. In addition, from the federal      

                                                                                

5   funds appropriated in section 11, there is allocated for 2003-2004 the      

                                                                                

6   following federal funds:  2004-2005, an amount not to exceed                

                                                                                

7   $10,343,200.00 from the competitive grants of DED-OESE, title II,           

                                                                                

8   educational technology grants funds, and an amount not to exceed            

                                                                                

9   $7,000,000.00 from funds carried forward from 2003-2004 from unexpended     

                                                                                

10  DED-OESE, title II, educational technology grants funds.                    

                                                                                

11      (a) From the federal funds appropriated in section 11, an amount            

                                                                                

12  estimated at $10,343,200.00 from the competitive grants of DED-OESE,        

                                                                                

13  title II, educational technology grants funds.                              

                                                                                

14      (b) An amount estimated at $7,000,000.00 from funds carried                 

                                                                                

15  forward from 2002-2003 from unexpended DED-OESE, title II, educational      

                                                                                

16  technology grants funds.                                                    

                                                                                

17      (2) The allocations in subsection (1) shall be used to develop,             

                                                                                

18  implement, and operate the freedom to learn program and make program        

                                                                                

19  grants.  The goal of the program is to achieve one-to-one access to         

                                                                                

20  wireless technology for K-12 pupils through statewide and local public-     

                                                                                

21  private partnerships.  To implement the program, the state education        

                                                                                

22  agency shall sign a memorandum of understanding with the Michigan           

                                                                                

23  virtual university that provides for joint administration of program        

                                                                                

24  grants under this subsection. By December 1, 2003, 2004 the Michigan        

                                                                                

25  virtual university and the state education agency shall make grants to      

                                                                                

26  districts as described in this section.  In awarding the grants, the        

                                                                                

27  Michigan virtual university and the state education agency shall give       


                                                                                

1   priority to applications that demonstrate that the district's program       

                                                                                

2   will meet all of the following:                                             

                                                                                

3       (a) Will be ready for implementation by January 1, 2004 2005 and            

                                                                                

4   will have begun professional development on technology integration in       

                                                                                

5   the classroom before January 1, 2004 2005.                                  

                                                                                

6       (b) Will utilize state structure and resources for professional             

                                                                                

7   development, as coordinated by the Michigan virtual university.             

                                                                                

8       (c) Will opt to participate in the statewide partnership described          

                                                                                

9   in subsection (6).                                                          

                                                                                

10      (3) The amount of program grants to districts is estimated at               

                                                                                

11  $250.00 per pupil in membership in grade 6 in 2003-2004, 2004-2005 or in    

                                                                                

12  another grade allowed in this section.  The state education agency and      

                                                                                

13  the Michigan virtual university shall establish grant criteria that         

                                                                                

14  maximize the distribution of federal funds to achieve the $250.00 per       

                                                                                

15  pupil in districts that qualify for federal funds.  To qualify for a        

                                                                                

16  grant under this section, a district shall submit an application to the     

                                                                                

17  state education agency and the Michigan virtual university and complete     

                                                                                

18  the application process established by the state education agency and       

                                                                                

19  the Michigan virtual university. The application shall include at least     

                                                                                

20  all of the following:                                                       

                                                                                

21      (a) If the district is applying for federal funds, how the                  

                                                                                

22  district will meet the requirements of the competitive grants under DED-    

                                                                                

23  OESE, title II, part D.                                                     

                                                                                

24      (b) How the district will provide the opportunity for each pupil            

                                                                                

25  in membership in grade 6 to receive a wireless computing device.  If the    

                                                                                

26  district has already achieved one-to-one wireless access in grade 6 or      

                                                                                

27  if the district's school building grade configuration makes                 


                                                                                

1   implementation of the program for grade 6 impractical, the district may     

                                                                                

2   apply for a grant for the next highest grade.  If the district does not     

                                                                                

3   have a grade 6 or higher, the district may apply for funding for the        

                                                                                

4   next lowest grade level.  If the district operates 1 or more schools        

                                                                                

5   that are not meeting adequate yearly progress, as determined by the         

                                                                                

6   department, and that contain grade 6, the district may apply for funding    

                                                                                

7   for a school building-wide program for 1 or more of those schools.  A       

                                                                                

8   public school academy that does not offer a grade higher than grade 5       

                                                                                

9   may apply to receive a grant under this section for pupils in the           

                                                                                

10  highest grade offered by the public school academy.                         

                                                                                

11      (c) The district shall submit a plan describing the uses of the             

                                                                                

12  grant funds.  The plan shall describe a plan for professional               

                                                                                

13  development on technology integration, content and curriculum, and local    

                                                                                

14  partnerships with the other districts and representatives from              

                                                                                

15  businesses, industry, and higher education.  The plan shall include at      

                                                                                

16  least the following:                                                        

                                                                                

17      (i) The academic achievement goals, which may include, but are not          

                                                                                

18  limited to, goals related to mathematics, science, and language arts.       

                                                                                

19      (ii) The engagement goals, which may include, but are not limited           

                                                                                

20  to, goals related to retention rates, dropout rates, detentions, and        

                                                                                

21  suspensions.                                                                

                                                                                

22      (iii) A commitment that at least 25% of the total local budget for          

                                                                                

23  the program will be used on professional development on technology          

                                                                                

24  integration in the classroom.                                               

                                                                                

25      (d) A 3- to 5-year plan or funding model for increasing the share           

                                                                                

26  that is borne locally of the expenditures for one-to-one wireless           

                                                                                

27  access.  The Michigan virtual university shall provide districts with       


                                                                                

1   sample local plans and funding models for the purposes of this              

                                                                                

2   subdivision and with information on available federal and private           

                                                                                

3   resources.                                                                  

                                                                                

4       (e) How the district will amend its local technology plan as                

                                                                                

5   required under state and federal law to reflect the program under this      

                                                                                

6   section.                                                                    

                                                                                

7       (4) A district that receives a grant under this section shall               

                                                                                

8   provide at least a $25.00 per pupil match for grant money received under    

                                                                                

9   this section from local public or private resources.                        

                                                                                

10      (5) A district that received money under section 98 in 2002-2003            

                                                                                

11  for a wireless technology grant is eligible to receive a grant under        

                                                                                

12  this section.  The funding under subsection (1)(b) shall be used first      

                                                                                

13  to provide the grants under this subsection. A district described in        

                                                                                

14  this subsection shall apply to the Michigan virtual university and the      

                                                                                

15  state education agency for a grant in the form and manner prescribed by     

                                                                                

16  the department.  An application under this section is not subject to the    

                                                                                

17  requirements of subsection (3) if the application demonstrates that the     

                                                                                

18  program will meet all of the following:                                     

                                                                                

19      (a) Will continue as a demonstration program.                               

                                                                                

20      (b) Will provide regional assistance to schools that are not                

                                                                                

21  meeting adequate yearly progress, as determined by the department, and      

                                                                                

22  to new grant recipients, as directed by the state education agency and      

                                                                                

23  the Michigan virtual university.                                            

                                                                                

24      (c) Will seek to expand its existing wireless technology                    

                                                                                

25  initiatives.                                                                

                                                                                

26      (6) By October 15, 2003, the The department of management and               

                                                                                

27  budget shall establish a statewide public-private partnership to            


                                                                                

1   implement the program.  The department of management and budget shall       

                                                                                

2   select a program partner through a request for proposals process for a      

                                                                                

3   total learning technology package that includes, but is not limited to,     

                                                                                

4   A wireless laptop, software, professional development, service, and         

                                                                                

5   support, and for management by a single point of contact individual         

                                                                                

6   responsible for the overall implementation.  The proposal selected shall    

                                                                                

7   achieve significant efficiencies and economies of scale and be              

                                                                                

8   interoperable with existing technologies.  The private partner selected     

                                                                                

9   in the request for proposals process to partner with the state must         

                                                                                

10  possess all of the following:                                               

                                                                                

11      (a) Experience in the development and successful implementation of          

                                                                                

12  large-scale, school-based wireless technology projects.                     

                                                                                

13      (b) Proven technical ability to deliver a total solutions package           

                                                                                

14  of learning technology for elementary and secondary students and            

                                                                                

15  teachers.                                                                   

                                                                                

16      (c) Results-based education solutions to increase student                   

                                                                                

17  achievement and advance professional development for teachers.              

                                                                                

18      (d) Ability to coordinate, utilize, and expand existing technology          

                                                                                

19  infrastructures and professional development delivery systems within        

                                                                                

20  school districts and regions.                                               

                                                                                

21      (e) Ability to provide a wireless computing device that is able to          

                                                                                

22  be connected to the wireless network and is able to access a school's       

                                                                                

23  preexisting local network and the internet both wirelessly in the school    

                                                                                

24  and through dial-up or other remote connection from the home or             

                                                                                

25  elsewhere outside school.                                                   

                                                                                

26      (7) A district may elect to purchase or lease wireless computing            

                                                                                

27  devices from a vendor other than the statewide partnership described in     


                                                                                

1   subsection (6) if the Michigan virtual university determines that the       

                                                                                

2   vendor meets the requirements of subdivisions (a) to (d) of subsection      

                                                                                

3   (6) and the vendor is identified in the district's grant application.       

                                                                                

4       (8) The state education agency shall sign a memorandum of                   

                                                                                

5   understanding with the Michigan virtual university regarding DED-OESE,      

                                                                                

6   title II, educational technology grants, as provided under this             

                                                                                

7   subsection.  The Michigan virtual university shall coordinate activities    

                                                                                

8   described in this subsection with the freedom to learn grants described     

                                                                                

9   under this section.  The memorandum of understanding shall require that     

                                                                                

10  the Michigan virtual university coordinate the following state              

                                                                                

11  activities related to DED-OESE, title II, educational technology grants     

                                                                                

12  in accordance with federal law:                                             

                                                                                

13      (a) Assist in the development of innovative strategies for the              

                                                                                

14  delivery of specialized or rigorous academic courses and curricula          

                                                                                

15  through the use of technology, including distance learning technologies.    

                                                                                

16      (b) Establish and support public-private initiatives for the                

                                                                                

17  acquisition of educational technology for students in high-need             

                                                                                

18  districts.                                                                  

                                                                                

19      (9) Funds allocated under this section that are not expended in             

                                                                                

20  the state fiscal year for which they were allocated may be carried          

                                                                                

21  forward to a subsequent state fiscal year.                                  

                                                                                

22      (10) The state education agency and the Michigan virtual                    

                                                                                

23  university shall complete the memoranda of understanding required under     

                                                                                

24  this section within 60 days after the effective date of the amendatory      

                                                                                

25  act that added this subsection.  It is the intent of the legislature        

                                                                                

26  that all plans or applications submitted by the state education agency      

                                                                                

27  to the United States department of education relating to the                


                                                                                

1   distribution of federal funds under this section are for the purposes       

                                                                                

2   described in this section.                                                  

                                                                                

3       (11) The state education agency shall ensure that the program               

                                                                                

4   goals and plans for the freedom to learn program are contained in the       

                                                                                

5   state technology plan required by federal law.                              

                                                                                

6       (12) From the funds allocated under this section, an amount not to          

                                                                                

7   exceed $4,000,000.00 is allocated to the Michigan virtual university to     

                                                                                

8   be used for statewide activities, as follows:                               

                                                                                

9       (a) An amount estimated at $2,700,000.00 to develop a professional          

                                                                                

10  development network in partnership with other statewide entities for        

                                                                                

11  professional development on technology integration in the classroom.        

                                                                                

12      (b) An amount estimated at $250,000.00 for development of a                 

                                                                                

13  content resource package that will include on-line coursework content.      

                                                                                

14      (c) An amount estimated at $250,000.00 to develop or purchase an            

                                                                                

15  on-line assessment system to supplement the Michigan education              

                                                                                

16  assessment program tests and provide immediate feedback on pupil            

                                                                                

17  achievement.  The assessment system shall include high-quality tests        

                                                                                

18  aligned to the state curriculum framework and tests that can be             

                                                                                

19  customized by teachers and integrated with on-line instructional            

                                                                                

20  resources.  The Michigan virtual university and the state education         

                                                                                

21  agency shall work in partnership with the department of treasury to         

                                                                                

22  implement the assessment program.  The state education agency shall give    

                                                                                

23  first priority in implementing the assessment systems to districts not      

                                                                                

24  meeting adequately yearly progress requirements as established by the       

                                                                                

25  federal no child left behind act and to schools participating in grant      

                                                                                

26  programs under this section.                                                

                                                                                

27      (d) An amount not to exceed $800,000.00 for comprehensive                   


                                                                                

1   statewide evaluation of current and future projects under this section      

                                                                                

2   and for statewide administration of the freedom to learn program.           

                                                                                

3       (13) The Michigan virtual university is encouraged to work in               

                                                                                

4   partnership with Ferris state university in performing the functions        

                                                                                

5   under subsection (12).                                                      

                                                                                

6       (13)(14) Notwithstanding section 17b, payments under this section           

                                                                                

7   may be made pursuant to an agreement with the department.                   

                                                                                

8       (15) It is the intent of the legislature that this state will seek          

                                                                                

9   to raise private funds for the current and future funding of the freedom    

                                                                                

10  to learn program under this section and all of the program components.      

                                                                                

11      (14)(16) As used in this section:                                           

                                                                                

12      (a) "DED-OESE" means the United States department of education              

                                                                                

13  office of elementary and secondary education.                               

                                                                                

14      (b) "State education agency" means the department.                          

                                                                                

15      Sec. 99. (1) From the school aid fund appropriations in section             

                                                                                

16  11, there is allocated an amount not to exceed $2,500,000.00                

                                                                                

17  $2,416,000.00 for 2003-2004 2004-2005 and from the general fund             

                                                                                

18  appropriation in section 11, there is allocated an amount not to exceed     

                                                                                

19  $84,000.00 for 2004-2005 for implementing the comprehensive master plan     

                                                                                

20  for mathematics and science centers developed by the department and         

                                                                                

21  approved by the state board on August 8, 2002.  In addition, from the       

                                                                                

22  federal funds appropriated in section 11, there is allocated an amount      

                                                                                

23  estimated at $2,487,700.00 from DED-OESE, title II, mathematics and         

                                                                                

24  science partnership grants.                                                 

                                                                                

25      (2) Within a service area designated locally, approved by the               

                                                                                

26  department, and consistent with the master plan described in subsection     

                                                                                

27  (1), an established mathematics and science center shall address  4  2      


                                                                                

1   or more of the following 6 basic services, as described in the master       

                                                                                

2   plan, to constituent districts and communities: leadership, pupil           

                                                                                

3   services, curriculum support, community involvement, professional           

                                                                                

4   development, and resource clearinghouse services.                           

                                                                                

5       (3) The department shall not award a state grant under this                 

                                                                                

6   section to more than 1 mathematics and science center located in a          

                                                                                

7   designated region as prescribed in the 2002 master plan unless each of      

                                                                                

8   the grants serves a distinct target population or provides a service        

                                                                                

9   that does not duplicate another program in the designated region.           

                                                                                

10      (4) As part of the technical assistance process, the department             

                                                                                

11  shall provide minimum standard guidelines that may be used by the           

                                                                                

12  mathematics and science center for providing fair access for qualified      

                                                                                

13  pupils and professional staff as prescribed in this section.                

                                                                                

14      (5) Allocations under this section to support the activities and            

                                                                                

15  programs of mathematics and science centers shall be continuing support     

                                                                                

16  grants to all 33 established mathematics and science centers.  Each         

                                                                                

17  established mathematics and science center that was funded in 2002-2003     

                                                                                

18  2003-2004 shall receive state funding in an amount equal to 24.43% of       

                                                                                

19  the amount it received under this section for 2002-2003 2003-2004 in        

                                                                                

20  2002 PA 521 2003 PA 158, before any reduction made for 2002-2003 under      

                                                                                

21  section 11(3). In the event that funding for a center or centers is         

                                                                                

22  declined, the remaining dollars shall be distributed on a pro rata          

                                                                                

23  basis to the remaining centers, as determined by the department.            

                                                                                

24      (6) In order to receive state funds under this section, a grant             

                                                                                

25  recipient shall allow access for the department or the department's         

                                                                                

26  designee to audit all records related to the program for which it           

                                                                                

27  receives such funds.  The grant recipient shall reimburse the state for     


                                                                                

1   all disallowances found in the audit.                                       

                                                                                

2       (7) Not later than September 30, 2007, the department shall                 

                                                                                

3   reevaluate and update the comprehensive master plan described in            

                                                                                

4   subsection (1) , including any recommendations for upgrading satellite      

                                                                                

5   extensions to full centers.                                                 

                                                                                

6       (8) The department shall give preference in awarding the federal            

                                                                                

7   grants allocated in subsection (1) to eligible existing mathematics and     

                                                                                

8   science centers.                                                            

                                                                                

9       (9) In order to receive state funds under this section, a grant             

                                                                                

10  recipient shall provide at least a 10% local match from local public or     

                                                                                

11  private resources for the funds received under this section.                

                                                                                

12      (10) As used in this section:                                               

                                                                                

13      (a) "DED" means the United States department of education.                  

                                                                                

14      (b) "DED-OESE" means the DED office of elementary and secondary             

                                                                                

15  education.                                                                  

                                                                                

16      Sec. 101. (1) To be eligible to receive state aid under this act,           

                                                                                

17  not later than the fifth Wednesday after the pupil membership count day     

                                                                                

18  and not later than the fifth Wednesday after the supplemental count day,    

                                                                                

19  each district superintendent through the secretary of the district's        

                                                                                

20  board shall file with the intermediate superintendent and the center a      

                                                                                

21  certified and sworn copy of the number of pupils enrolled and in regular    

                                                                                

22  daily attendance in the district as of the pupil membership count day       

                                                                                

23  and as of the supplemental count day, as applicable, for the current        

                                                                                

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

                                                                                

25  entire year, as provided under section 1561 of the revised school code,     

                                                                                

26  MCL 380.1561, shall file with the intermediate superintendent and the       

                                                                                

27  center a certified and sworn copy of the number of pupils enrolled and      


                                                                                

1   in regular daily attendance in the district for the current school year     

                                                                                

2   pursuant to rules promulgated by the superintendent.  Not later than the    

                                                                                

3   seventh Wednesday after the pupil membership count day and not later        

                                                                                

4   than the seventh Wednesday after the supplemental count day, the            

                                                                                

5   intermediate district shall transmit to the center the revised data, as     

                                                                                

6   applicable, filed by for each of its constituent districts.  If a           

                                                                                

7   district fails to file the sworn and certified copy with the                

                                                                                

8   intermediate superintendent and the center in a timely manner, as           

                                                                                

9   required under this subsection, the intermediate district and the center    

                                                                                

10  shall notify the department and state aid due to be distributed under       

                                                                                

11  this act shall be withheld from the defaulting district immediately,        

                                                                                

12  beginning with the next payment after the failure and continuing with       

                                                                                

13  each payment until the district complies with this subsection. If an        

                                                                                

14  intermediate district fails to transmit the data in its possession in a     

                                                                                

15  timely and accurate manner to the department center, as required under      

                                                                                

16  this subsection, state aid due to be distributed under this act shall be    

                                                                                

17  withheld from the defaulting intermediate district immediately,             

                                                                                

18  beginning with the next payment after the failure and continuing with       

                                                                                

19  each payment until the intermediate district complies with this             

                                                                                

20  subsection.  If a district or intermediate district does not comply with    

                                                                                

21  this subsection by the end of the fiscal year, the district or              

                                                                                

22  intermediate district forfeits the amount withheld.  A person who           

                                                                                

23  willfully falsifies a figure or statement in the certified and sworn        

                                                                                

24  copy of enrollment shall be punished in the manner prescribed by section    

                                                                                

25  161.                                                                        

                                                                                

26      (2) To be eligible to receive state aid under this act, not later           

                                                                                

27  than the twenty-fourth Wednesday after the pupil membership count day       


                                                                                

1   and not later than the twenty-fourth Wednesday after the supplemental       

                                                                                

2   count day, an intermediate district shall submit to the center, in a        

                                                                                

3   form and manner prescribed by the center, the audited enrollment and        

                                                                                

4   attendance data for the pupils of its constituent districts and of the      

                                                                                

5   intermediate district.  If an intermediate district fails to transmit       

                                                                                

6   the audited data as required under this subsection, state aid due to be     

                                                                                

7   distributed under this act shall be withheld from the defaulting            

                                                                                

8   intermediate district immediately, beginning with the next payment after    

                                                                                

9   the failure and continuing with each payment until the intermediate         

                                                                                

10  district complies with this subsection.  If an intermediate district        

                                                                                

11  does not comply with this subsection by the end of the fiscal year, the     

                                                                                

12  intermediate district forfeits the amount withheld.                         

                                                                                

13      (3) Except as otherwise provided in this section, each district             

                                                                                

14  shall provide at least 1,098 hours of pupil instruction. Except as          

                                                                                

15  otherwise provided in this act, a district failing to comply with the       

                                                                                

16  required minimum hours of pupil instruction under this subsection shall     

                                                                                

17  forfeit from its total state aid allocation an amount determined by         

                                                                                

18  applying a ratio of the number of hours the district was in                 

                                                                                

19  noncompliance in relation to the required minimum number of hours under     

                                                                                

20  this subsection.  Not later than August 1, the board of each district       

                                                                                

21  shall certify to the department the number of hours of pupil instruction    

                                                                                

22  in the previous school year.  If the district did not provide at least      

                                                                                

23  the required minimum number of hours of pupil instruction under this        

                                                                                

24  subsection, the deduction of state aid shall be made in the following       

                                                                                

25  fiscal year from the first payment of state school aid. A district is       

                                                                                

26  not subject to forfeiture of funds under this subsection for a fiscal       

                                                                                

27  year in which a forfeiture was already imposed under subsection (6).        


                                                                                

1   Hours lost because of strikes or teachers' conferences shall not be         

                                                                                

2   counted as days or hours of pupil instruction.  A district not having at    

                                                                                

3   least 75% of the district's membership in attendance on any day of pupil    

                                                                                

4   instruction shall receive state aid in that proportion of 1/180 that the    

                                                                                

5   actual percent of attendance bears to the specified percentage.  The        

                                                                                

6   superintendent shall promulgate rules for the implementation of this        

                                                                                

7   subsection.                                                                 

                                                                                

8       (4) Except as otherwise provided in this subsection, the first 30           

                                                                                

9   hours for which pupil instruction is not provided because of conditions     

                                                                                

10  not within the control of school authorities, such as severe storms,        

                                                                                

11  fires, epidemics, or health conditions as defined by the city, county,      

                                                                                

12  or state health authorities, shall be counted as hours of pupil             

                                                                                

13  instruction.  In addition, for 2002-2003 only, the department shall         

                                                                                

14  count as days of pupil instruction not more than 5 additional days, and     

                                                                                

15  shall count as hours of pupil instruction not more than 30 hours, for       

                                                                                

16  which pupil instruction was not provided in a district from April 3,        

                                                                                

17  2003 to April 11, 2003 due to a storm. Subsequent such hours shall not      

                                                                                

18  be counted as hours of pupil instruction.                                   

                                                                                

19      (5) A district shall not forfeit part of its state aid                      

                                                                                

20  appropriation because it adopts or has in existence an alternative          

                                                                                

21  scheduling program for pupils in kindergarten if the program provides at    

                                                                                

22  least the number of hours required under subsection (3) for a full-time     

                                                                                

23  equated membership for a pupil in kindergarten as provided under section    

                                                                                

24  6(4).                                                                       

                                                                                

25      (6) Not later than April 15 of each fiscal year, the board of each          

                                                                                

26  district shall certify to the department the planned number of hours of     

                                                                                

27  pupil instruction in the district for the school year ending in the         


                                                                                

1   fiscal year.  In addition to any other penalty or forfeiture under this     

                                                                                

2   section, if at any time the department determines that 1 or more of the     

                                                                                

3   following has occurred in a district, the district shall forfeit in the     

                                                                                

4   current fiscal year beginning in the next payment to be calculated by       

                                                                                

5   the department a proportion of the funds due to the district under this     

                                                                                

6   act that is equal to the proportion below the required minimum number of    

                                                                                

7   hours of pupil instruction under subsection (3), as specified in the        

                                                                                

8   following:                                                                  

                                                                                

9       (a) The district fails to operate its schools for at least the              

                                                                                

10  required minimum number of hours of pupil instruction under subsection      

                                                                                

11  (3) in a school year, including hours counted under subsection (4).         

                                                                                

12      (b) The board of the district takes formal action not to operate            

                                                                                

13  its schools for at least the required minimum number of hours of pupil      

                                                                                

14  instruction under subsection (3) in a school year, including hours          

                                                                                

15  counted under subsection (4).                                               

                                                                                

16      (7) In providing the minimum number of hours of pupil instruction           

                                                                                

17  required under subsection (3), a district shall use the following           

                                                                                

18  guidelines, and a district shall maintain records to substantiate its       

                                                                                

19  compliance with the following guidelines:                                   

                                                                                

20      (a) Except as otherwise provided in this subsection, a pupil must           

                                                                                

21  be scheduled for at least the required minimum number of hours of           

                                                                                

22  instruction, excluding study halls, or at least the sum of 90 hours plus    

                                                                                

23  the required minimum number of hours of instruction, including up to 2      

                                                                                

24  study halls.                                                                

                                                                                

25      (b) The time a pupil is assigned to any tutorial activity in a              

                                                                                

26  block schedule may be considered instructional time, unless that time is    

                                                                                

27  determined in an audit to be a study hall period.                           


                                                                                

1       (c) A pupil in grades 9 to 12 for whom a reduced schedule is                

                                                                                

2   determined to be in the individual pupil's best educational interest        

                                                                                

3   must be scheduled for a number of hours equal to at least 80% of the        

                                                                                

4   required minimum number of hours of pupil instruction to be considered a    

                                                                                

5   full-time equivalent pupil.                                                 

                                                                                

6       (d) If a pupil in grades 9 to 12 who is enrolled in a cooperative           

                                                                                

7   education program or a special education pupil cannot receive the           

                                                                                

8   required minimum number of hours of pupil instruction solely because of     

                                                                                

9   travel time between instructional sites during the school day, that         

                                                                                

10  travel time, up to a maximum of 3 hours per school week, shall be           

                                                                                

11  considered to be pupil instruction time for the purpose of determining      

                                                                                

12  whether the pupil is receiving the required minimum number of hours of      

                                                                                

13  pupil instruction.  However, if a district demonstrates to the              

                                                                                

14  satisfaction of the department that the travel time limitation under        

                                                                                

15  this subdivision would create undue costs or hardship to the district,      

                                                                                

16  the department may consider more travel time to be pupil instruction        

                                                                                

17  time for this purpose.                                                      

                                                                                

18      (8) The department shall apply the guidelines under subsection (7)          

                                                                                

19  in calculating the full-time equivalency of pupils.                         

                                                                                

20      (9) Upon application by the district for a particular fiscal year,          

                                                                                

21  the superintendent may waive for a district the minimum number of hours     

                                                                                

22  of pupil instruction requirement of subsection (3) for a department-        

                                                                                

23  approved alternative education program provided the number of hours         

                                                                                

24  scheduled for pupil instruction is equal to at least 80% of the required    

                                                                                

25  minimum number of hours of pupil instruction to be considered a full-       

                                                                                

26  time equivalent pupil.  If a district applies for and receives a waiver     

                                                                                

27  under this subsection and complies with the terms of the waiver, for the    


                                                                                

1   fiscal year covered by the waiver the district is not subject to            

                                                                                

2   forfeiture under this section for the specific program covered by the       

                                                                                

3   waiver.                                                                     

                                                                                

4       (10) A district may count up to 51 hours of professional                    

                                                                                

5   development for teachers, including the 5 hours of online professional      

                                                                                

6   development provided by the Michigan virtual university under section       

                                                                                

7   98, as hours of pupil instruction, provided the professional development    

                                                                                

8   is focused on achieving or improving adequate yearly progress as defined    

                                                                                

9   in the no child left behind act of 2001. A district that elects to use      

                                                                                

10  this exception shall notify the department of its election.                 

                                                                                

11      Sec. 104a. (1) In order to receive state aid under this act, a              

                                                                                

12  district shall comply with this section and shall administer state          

                                                                                

13  assessments to high school pupils in the subject areas of communications    

                                                                                

14  skills, English language arts, mathematics, science, and social studies.    

                                                                                

15  If the department of treasury or the Michigan assessment governing          

                                                                                

16  board, as applicable, determines that it would be consistent with the       

                                                                                

17  purposes of this section, the department of treasury or the Michigan        

                                                                                

18  assessment governing board, as applicable, may designate the grade 11       

                                                                                

19  Michigan education assessment program tests or the ACT/ACT work keys        

                                                                                

20  tests as the assessments to be used for the purposes of this section.       

                                                                                

21  The district shall include on the pupil's high school transcript all of     

                                                                                

22  the following:                                                              

                                                                                

23      (a) For each high school graduate who has completed a subject area          

                                                                                

24  assessment under this section, the pupil's scaled score on the              

                                                                                

25  assessment.                                                                 

                                                                                

26      (b) If the pupil's scaled score on a subject area assessment falls          

                                                                                

27  within the range required under subsection (2) for a category               


                                                                                

1   established under subsection (2), an indication that the pupil has          

                                                                                

2   achieved state endorsement for that subject area.                           

                                                                                

3       (c) The number of school days the pupil was in attendance at                

                                                                                

4   school each school year during high school and the total number of          

                                                                                

5   school days in session for each of those school years.                      

                                                                                

6       (2) The department of treasury shall develop scaled scores for              

                                                                                

7   reporting subject area assessment results for each of the subject areas     

                                                                                

8   under this section.  The department of treasury  shall establish 3          

                                                                                

9   categories for each subject area indicating basic competency, above         

                                                                                

10  average, and outstanding, and shall establish the scaled score range        

                                                                                

11  required for each category.  The department of treasury shall design and    

                                                                                

12  distribute to districts, intermediate districts, and nonpublic schools a    

                                                                                

13  simple and concise document that describes these categories in each         

                                                                                

14  subject area and indicates the scaled score ranges for each category in     

                                                                                

15  each subject area.  A district may award a high school diploma to a         

                                                                                

16  pupil who successfully completes local district requirements established    

                                                                                

17  in accordance with state law for high school graduation, regardless of      

                                                                                

18  whether the pupil is eligible for any state endorsement.                    

                                                                                

19      (3) The assessments administered for the purposes of this section           

                                                                                

20  shall be administered to pupils during the last 30 school days of grade     

                                                                                

21  11.  The department of treasury shall ensure that the assessments are       

                                                                                

22  scored and the scores are returned to pupils, their parents or legal        

                                                                                

23  guardians, and districts not later than the beginning of the pupil's        

                                                                                

24  first semester of grade 12.  The department of treasury shall arrange       

                                                                                

25  for those portions of a pupil's assessment that cannot be scored            

                                                                                

26  mechanically to be scored in Michigan by persons who are Michigan           

                                                                                

27  teachers, retired Michigan teachers, or Michigan school administrators      


                                                                                

1   and who have been trained in scoring the assessments.  The returned         

                                                                                

2   scores shall indicate the pupil's scaled score for each subject area        

                                                                                

3   assessment, the range of scaled scores for each subject area, and the       

                                                                                

4   range of scaled scores required for each category established under         

                                                                                

5   subsection (2).  In reporting the scores to pupils, parents, and            

                                                                                

6   schools, the department of treasury shall provide specific, meaningful,     

                                                                                

7   and timely feedback on the pupil's performance on the assessment.           

                                                                                

8       (4) For each pupil who does not achieve state endorsement in 1 or           

                                                                                

9   more subject areas, the board of the district in which the pupil is         

                                                                                

10  enrolled shall provide that there be at least 1 meeting attended by at      

                                                                                

11  least the pupil and a member of the district's staff or a local or          

                                                                                

12  intermediate district consultant who is proficient in the measurement       

                                                                                

13  and evaluation of pupils.  The district may provide the meeting as a        

                                                                                

14  group meeting for pupils in similar circumstances.  If the pupil is a       

                                                                                

15  minor, the district shall invite and encourage the pupil's parent, legal    

                                                                                

16  guardian, or person in loco parentis to attend the meeting and shall        

                                                                                

17  mail a notice of the meeting to the pupil's parent, legal guardian, or      

                                                                                

18  person in loco parentis.  The purpose of this meeting and any subsequent    

                                                                                

19  meeting under this subsection shall be to determine an educational          

                                                                                

20  program for the pupil designed to have the pupil achieve state              

                                                                                

21  endorsement in each subject area in which he or she did not achieve         

                                                                                

22  state endorsement.  In addition, a district may provide for subsequent      

                                                                                

23  meetings with the pupil conducted by a high school counselor or teacher     

                                                                                

24  designated by the pupil's high school principal, and shall invite and       

                                                                                

25  encourage the pupil's parent, legal guardian, or person in loco parentis    

                                                                                

26  to attend the subsequent meetings.  The district shall provide special      

                                                                                

27  programs for the pupil or develop a program using the educational           


                                                                                

1   programs regularly provided by the district unless the board of the         

                                                                                

2   district decides otherwise and publishes and explains its decision in a     

                                                                                

3   public justification report.                                                

                                                                                

4       (5) A pupil who wants to repeat an assessment administered under            

                                                                                

5   this section may repeat the assessment, without charge to the pupil, in     

                                                                                

6   the next school year or after graduation.  An individual may repeat an      

                                                                                

7   assessment at any time the district administers an applicable assessment    

                                                                                

8   instrument or during a retesting period under subsection (7).               

                                                                                

9       (6) The department of treasury shall ensure that the length of the          

                                                                                

10  assessments used for the purposes of this section and the combined total    

                                                                                

11  time necessary to administer all of the assessments are the shortest        

                                                                                

12  possible that will still maintain the degree of reliability and validity    

                                                                                

13  of the assessment results determined necessary by the department of         

                                                                                

14  treasury.  The department of treasury shall ensure that the maximum         

                                                                                

15  total combined length of time that schools are required to set aside for    

                                                                                

16  administration of all of the assessments used for the purposes of this      

                                                                                

17  section does not exceed 8 hours.  However, this subsection does not         

                                                                                

18  limit the amount of time that individuals may have to complete the          

                                                                                

19  assessments.                                                                

                                                                                

20      (7) The department of treasury shall establish, schedule, and               

                                                                                

21  arrange periodic retesting periods throughout the year for individuals      

                                                                                

22  who desire to repeat an assessment under this section. The department of    

                                                                                

23  treasury shall coordinate the arrangements for administering the repeat     

                                                                                

24  assessments and shall ensure that the retesting is made available at        

                                                                                

25  least within each intermediate district and, to the extent possible,        

                                                                                

26  within each district.                                                       

                                                                                

27      (8) A district shall provide accommodations to a pupil with                 


                                                                                

1   disabilities for the assessments required under this section, as            

                                                                                

2   provided under section 504 of title V of the rehabilitation act of 1973,    

                                                                                

3   Public Law 93-112, 29 U.S.C. 794; subtitle A of title II of the             

                                                                                

4   Americans with disabilities act of 1990, Public Law 101-336, 42 U.S.C.      

                                                                                

5   12131 to 12134; and the implementing regulations for those statutes.        

                                                                                

6       (9) For the purposes of this section, the department of treasury            

                                                                                

7   shall develop or select and approve assessment instruments to measure       

                                                                                

8   pupil performance in communications skills, English language arts,          

                                                                                

9   mathematics, social studies, and science.  Unless the department of         

                                                                                

10  treasury selects and approves the ACT/ACT work keys tests, the              

                                                                                

11  assessment instruments shall be based on the model core academic content    

                                                                                

12  standards objectives under section 1278 of the revised school code, MCL     

                                                                                

13  380.1278.                                                                   

                                                                                

14      (10) Upon written request by the pupil's parent or legal guardian           

                                                                                

15  stating that the request is being made for the purpose of providing the     

                                                                                

16  pupil with an opportunity to qualify to take 1 or more postsecondary        

                                                                                

17  courses as an eligible student under the postsecondary enrollment           

                                                                                

18  options act, 1996 PA 160, MCL 388.511 to 388.524, the board of a            

                                                                                

19  district shall allow a pupil who is in at least grade 10 to take an         

                                                                                

20  assessment administered under this section without charge at any time       

                                                                                

21  the district regularly administers the assessment or during a retesting     

                                                                                

22  period established under subsection (7).  A district is not required to     

                                                                                

23  include in an annual education report, or in any other report submitted     

                                                                                

24  to the department of treasury for accreditation purposes, results of        

                                                                                

25  assessments taken under this subsection by a pupil in grade 11 or lower     

                                                                                

26  until the results of that pupil's graduating class are otherwise            

                                                                                

27  reported.                                                                   


                                                                                

1       (11) All assessment instruments developed or selected and approved          

                                                                                

2   by the state under any statute or rule for a purpose related to K to 12     

                                                                                

3   education shall be objective-oriented and consistent with the model core    

                                                                                

4   academic content standards objectives under section 1278 of the revised     

                                                                                

5   school code, MCL 380.1278.                                                  

                                                                                

6       (12) A person who has graduated from high school after 1996 and             

                                                                                

7   who has not previously taken an assessment under this section may take      

                                                                                

8   an assessment used for the purposes of this section, without charge to      

                                                                                

9   the person, at the district from which he or she graduated from high        

                                                                                

10  school at any time that district administers the assessment or during a     

                                                                                

11  retesting period scheduled under subsection (7) and have his or her         

                                                                                

12  scaled score on the assessment included on his or her high school           

                                                                                

13  transcript.  If the person's scaled score on a subject area assessment      

                                                                                

14  falls within the range required under subsection (2) for a category         

                                                                                

15  established under subsection (2), the district shall also indicate on       

                                                                                

16  the person's high school transcript that the person has achieved state      

                                                                                

17  endorsement for that subject area.                                          

                                                                                

18      (13) A child who is a student in a nonpublic school or home school          

                                                                                

19  may take an assessment under this section.  To take an assessment, a        

                                                                                

20  child who is a student in a home school shall contact the district in       

                                                                                

21  which the child resides, and that district shall administer the             

                                                                                

22  assessment, or the child may take the assessment at a nonpublic school      

                                                                                

23  if allowed by the nonpublic school.  Upon request from a nonpublic          

                                                                                

24  school, the department of treasury shall supply assessments and the         

                                                                                

25  nonpublic school may administer the assessment.                             

                                                                                

26      (14) The purpose of the assessment under this section is to assess          

                                                                                

27  pupil performance in mathematics, science, social studies, and              


                                                                                

1   communication arts for the purpose of improving academic achievement and    

                                                                                

2   establishing a statewide standard of competency. The assessment under       

                                                                                

3   this section provides a common measure of data that will contribute to      

                                                                                

4   the improvement of Michigan schools' curriculum and instruction by          

                                                                                

5   encouraging alignment with Michigan's curriculum framework standards.       

                                                                                

6   These standards are based upon the expectations of what pupils should       

                                                                                

7   know and be able to do by the end of grade 11.                              

                                                                                

8       (15) If the Michigan assessment governing board is established by           

                                                                                

9   law, the Michigan assessment governing board shall administer this          

                                                                                

10  section and shall have all of the powers and duties as otherwise            

                                                                                

11  provided under this section for the department of treasury.                 

                                                                                

12      (15) (16) As used in this section :                                         

                                                                                

13      (a) "Communications skills" means reading and writing.                      

                                                                                

14      (b) "Social studies" means geography, history, economics, and               

                                                                                

15  American government.                                                        

                                                                                

16      Sec. 107. (1) From the appropriation in section 11, there is                

                                                                                

17  allocated an amount not to exceed $20,000,000.00 for 2003-2004 2004-2005    

                                                                                

18  for adult education programs authorized under this section.                 

                                                                                

19      (2) To be eligible to be a participant funded under this section,           

                                                                                

20  A person shall be enrolled in an adult basic education program, an adult    

                                                                                

21  English as a second language program, a general education development       

                                                                                

22  (G.E.D.) test preparation program, a job or employment related program,     

                                                                                

23  or a high school completion program, that meets the requirements of this    

                                                                                

24  section, 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 development (G.E.D.) certificate, the individual meets    

                                                                                

27  1 of the following:                                                         


                                                                                

1       (i) Is less than 20 years of age on September 1 of the school year          

                                                                                

2   and is enrolled in the state technical institute and rehabilitation         

                                                                                

3   center.                                                                     

                                                                                

4       (ii) Is less than 20 years of age on September 1 of the school              

                                                                                

5   year, is not attending an institution of higher education, and is           

                                                                                

6   enrolled in a job or employment-related program through a referral by an    

                                                                                

7   employer.                                                                   

                                                                                

8       (iii) Is enrolled in an English as a second language program.               

                                                                                

9       (iv) Is enrolled in a high school completion program.                       

                                                                                

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

                                                                                

11  G.E.D. certificate, the individual meets 1 of the following:                

                                                                                

12      (i) Is at least 20 years of age on September 1 of the school year.          

                                                                                

13      (ii) Is at least 16 years of age on September 1 of the school               

                                                                                

14  year, has been permanently expelled from school under section 1311(2) or    

                                                                                

15  1311a of the revised school code, MCL 380.1311 and 380.1311a, and has no    

                                                                                

16  appropriate alternative education program available through his or her      

                                                                                

17  district of residence.                                                      

                                                                                

18      (3) Except as otherwise provided in subsection (4), the amount              

                                                                                

19  allocated under subsection (1) shall be distributed as follows:             

                                                                                

20      (a) For districts and consortia that received payments for 2001-            

                                                                                

21  2002 2003-2004 under this section, the amount allocated to each for         

                                                                                

22  2003-2004 2004-2005 shall be based on the number of participants served     

                                                                                

23  by the district or consortium for 2003-2004, 2004-2005 using the amount     

                                                                                

24  allocated per full-time equated participant under subsection (5), up to     

                                                                                

25  A maximum total allocation under this section in an amount equal to         

                                                                                

26  26.67% of the amount the district or consortium received for 2001-2002      

                                                                                

27  2003-2004 under this section before any reallocations made for 2001-2002    


                                                                                

1   2003-2004 under subsection (4).                                             

                                                                                

2       (b) A district or consortium that received funding in 2002-2003             

                                                                                

3   2003-2004 under this section may operate independently of a consortium      

                                                                                

4   or join or form a consortium for 2003-2004 2004-2005.  The allocation       

                                                                                

5   for 2003-2004 2004-2005 to the district or the newly formed consortium      

                                                                                

6   under this subsection shall be determined by the department of career       

                                                                                

7   development labor and economic growth and shall be based on the             

                                                                                

8   proportion of the amounts that are attributable to the district or          

                                                                                

9   consortium that received funding in 2002-2003 2003-2004.  A district or     

                                                                                

10  consortium described in this subdivision shall notify the department of     

                                                                                

11  career development labor and economic growth of its intention with          

                                                                                

12  regard to 2003-2004 2004-2005 by October 1, 2003 2004.                      

                                                                                

13      (4) A district that operated an adult education program in 2002-            

                                                                                

14  2003 2003-2004 and does not intend to operate a program in 2003-2004        

                                                                                

15  2004-2005 shall notify the department of career development labor and       

                                                                                

16  economic growth by October 1, 2003 2004 of its intention.  The funds        

                                                                                

17  intended to be allocated under this section to a district that does not     

                                                                                

18  operate a program in 2003-2004 2004-2005 and the unspent funds              

                                                                                

19  originally allocated under this section to a district or consortium that    

                                                                                

20  subsequently operates a program at less than the level of funding           

                                                                                

21  allocated under subsection (3) shall instead be proportionately             

                                                                                

22  reallocated to the other districts described in subsection (3)(a) that      

                                                                                

23  are operating an adult education program in 2003-2004 2004-2005 under       

                                                                                

24  this section.                                                               

                                                                                

25      (5) The amount allocated under this section per full-time equated           

                                                                                

26  participant is $2,850.00 for a 450-hour program. The amount shall be        

                                                                                

27  proportionately reduced for a program offering less than 450 hours of       


                                                                                

1   instruction.                                                                

                                                                                

2       (6) An adult basic education program or an adult English as a               

                                                                                

3   second language program operated on a year-round or school year basis       

                                                                                

4   may be funded under this section, subject to all of the following:          

                                                                                

5       (a) The program enrolls adults who are determined by an                     

                                                                                

6   appropriate assessment to be below ninth grade level in reading or          

                                                                                

7   mathematics, or both, or to lack basic English proficiency.                 

                                                                                

8       (b) The program tests individuals for eligibility under                     

                                                                                

9   subdivision (a) before enrollment and tests participants to determine       

                                                                                

10  progress after every 90 hours of attendance, using assessment               

                                                                                

11  instruments approved by the department of career development labor and      

                                                                                

12  economic growth.                                                            

                                                                                

13      (c) A participant in an adult basic education program is eligible           

                                                                                

14  for reimbursement until 1 of the following occurs:                          

                                                                                

15      (i) The participant's reading and mathematics proficiency are               

                                                                                

16  assessed at or above the ninth grade level.                                 

                                                                                

17      (ii) The participant fails to show progress on 2 successive                 

                                                                                

18  assessments after having completed at least 450 hours of instruction.       

                                                                                

19      (d) A funding recipient enrolling a participant in an English as a          

                                                                                

20  second language program is eligible for funding according to subsection     

                                                                                

21  (10) until the participant meets 1 of the following:                        

                                                                                

22      (i) The participant is assessed as having attained basic English            

                                                                                

23  proficiency.                                                                

                                                                                

24      (ii) The participant fails to show progress on 2 successive                 

                                                                                

25  assessments after having completed at least 450 hours of instruction.       

                                                                                

26  The department of career development labor and economic growth shall        

                                                                                

27  provide information to a funding recipient regarding appropriate            


                                                                                

1   assessment instruments for this program.                                    

                                                                                

2       (7) A general education development (G.E.D.) test preparation               

                                                                                

3   program operated on a year-round or school year basis may be funded         

                                                                                

4   under this section, subject to all of the following:                        

                                                                                

5       (a) The program enrolls adults who do not have a high school                

                                                                                

6   diploma.                                                                    

                                                                                

7       (b) The program shall administer a G.E.D. pre-test approved by the          

                                                                                

8   department of career development labor and economic growth before           

                                                                                

9   enrolling an individual to determine the individual's potential for         

                                                                                

10  success on the G.E.D. test, and shall administer other tests after every    

                                                                                

11  90 hours of attendance to determine a participant's readiness to take       

                                                                                

12  the G.E.D. test.                                                            

                                                                                

13      (c) A funding recipient shall receive funding according to                  

                                                                                

14  subsection (10) for a participant, and a participant may be enrolled in     

                                                                                

15  the program until 1 of the following occurs:                                

                                                                                

16      (i) The participant passes the G.E.D. test.                                 

                                                                                

17      (ii) The participant fails to show progress on 2 successive tests           

                                                                                

18  used to determine readiness to take the G.E.D. test after having            

                                                                                

19  completed at least 450 hours of instruction.                                

                                                                                

20      (8) A high school completion program operated on a year-round or            

                                                                                

21  school year basis may be funded under this section, subject to all of       

                                                                                

22  the following:                                                              

                                                                                

23      (a) The program enrolls adults who do not have a high school                

                                                                                

24  diploma.                                                                    

                                                                                

25      (b) A funding recipient shall receive funding according to                  

                                                                                

26  subsection (10) for a participant in a course offered under this            

                                                                                

27  subsection until 1 of the following occurs:                                 


                                                                                

1       (i) The participant passes the course and earns a high school               

                                                                                

2   diploma.                                                                    

                                                                                

3       (ii) The participant fails to earn credit in 2 successive                   

                                                                                

4   semesters or terms in which the participant is enrolled after having        

                                                                                

5   completed at least 900 hours of instruction.                                

                                                                                

6       (9) A job or employment-related adult education program operated            

                                                                                

7   on a year-round or school year basis may be funded under this section,      

                                                                                

8   subject to all of the following:                                            

                                                                                

9       (a) The program enrolls adults referred by their employer who are           

                                                                                

10  less than 20 years of age, have a high school diploma, are determined to    

                                                                                

11  be in need of remedial mathematics or communication arts skills and are     

                                                                                

12  not attending an institution of higher education.                           

                                                                                

13      (b) An individual may be enrolled in this program and the grant             

                                                                                

14  recipient shall receive funding according to subsection (10) until 1 of     

                                                                                

15  the following occurs:                                                       

                                                                                

16      (i) The individual achieves the requisite skills as determined by           

                                                                                

17  appropriate assessment instruments administered at least after every 90     

                                                                                

18  hours of attendance.                                                        

                                                                                

19      (ii) The individual fails to show progress on 2 successive                  

                                                                                

20  assessments after having completed at least 450 hours of instruction.       

                                                                                

21  The department of career development labor and economic growth shall        

                                                                                

22  provide information to a funding recipient regarding appropriate            

                                                                                

23  assessment instruments for this program.                                    

                                                                                

24      (10) In order to receive funds under this section, a district or            

                                                                                

25  intermediate district shall:                                                

                                                                                

26      (a) Be part of an adult education strategic plan.                           

                                                                                

27      (b) Develop individual adult education plans containing the                 


                                                                                

1   educational goals and objectives for each participant.                      

                                                                                

2       (c) Use research-based instructional practices and technology that          

                                                                                

3   have proven to be effective for adult learners.                             

                                                                                

4       (d) Coordinate with other available resources in the community,             

                                                                                

5   such as schools, postsecondary institutions, job training programs,         

                                                                                

6   one-stop centers, and social service agencies.                              

                                                                                

7       (e) Offer job and postsecondary education counseling services.              

                                                                                

8       (f) Report participant outcomes and other measures of program               

                                                                                

9   performance in a form and manner approved by the department of labor        

                                                                                

10  and economic growth.                                                        

                                                                                

11      (11) (10) A funding recipient shall receive payments under this             

                                                                                

12  section in accordance with the following:                                   

                                                                                

13      (a) Ninety Eighty percent for enrollment of eligible participants,          

                                                                                

14  including development of individual adult learner plans.                    

                                                                                

15      (b) Ten Twenty percent for completion of the adult basic education          

                                                                                

16  objectives by achieving an increase of at least 1 grade level of            

                                                                                

17  proficiency in reading or mathematics; for achieving basic English          

                                                                                

18  proficiency; for passage of the G.E.D. test; for passage of a course        

                                                                                

19  required for a participant to attain a high school diploma; or for          

                                                                                

20  completion of the course and demonstrated proficiency in the academic       

                                                                                

21  skills to be learned in the course, as applicable.                          

                                                                                

22      (12) (11) As used in this section: , "participant"                          

                                                                                

23      (a)  "Participant" means the sum of the number of full-time                 

                                                                                

24  equated individuals enrolled in and attending a department-approved         

                                                                                

25  adult education program under this section, using quarterly participant     

                                                                                

26  count days on the schedule described in section 6(7)(b).                    

                                                                                

27      (b)  "Strategic plan" means a document approved by the department           


                                                                                

1   of labor and economic growth that incorporates adult education goals        

                                                                                

2   and objectives for the local workforce development board region and is      

                                                                                

3   developed by the education advisory group of the local workforce            

                                                                                

4   development board.                                                          

                                                                                

5       (c)  "Workforce development board" means a local workforce                  

                                                                                

6   development board established pursuant to the workforce investment act      

                                                                                

7   of 1998, Public Law 105-220, 112 Stat. 936, and the school-to-work          

                                                                                

8   opportunities act of 1994, Public Law 103-239, 108 Stat. 568, or the        

                                                                                

9   equivalent.                                                                 

                                                                                

10      (13) (12) A person who is not eligible to be a participant funded           

                                                                                

11  under this section may receive adult education services upon the payment    

                                                                                

12  of tuition.  In addition, a person who is not eligible to be served in a    

                                                                                

13  program under this section due to the program limitations specified in      

                                                                                

14  subsection (6), (7), (8), or (9) may continue to receive adult education    

                                                                                

15  services in that program upon the payment of tuition. The tuition level     

                                                                                

16  shall be determined by the local or intermediate district conducting the    

                                                                                

17  program.                                                                    

                                                                                

18      (14) (13) An individual who is an inmate in a state correctional            

                                                                                

19  facility shall not be counted as a participant under this section.          

                                                                                

20      (15) (14) A district shall not commingle money received under this          

                                                                                

21  section or from another source for adult education purposes with any        

                                                                                

22  other funds of the district. A district receiving adult education funds     

                                                                                

23  shall establish a separate ledger account for those funds.  This            

                                                                                

24  subsection does not prohibit a district from using general funds of the     

                                                                                

25  district to support an adult education or community education program.      

                                                                                

26      (16) (15) A district or intermediate district receiving funds               

                                                                                

27  under this section may establish a sliding scale of tuition rates based     


                                                                                

1   upon a participant's family income.  A district or intermediate district    

                                                                                

2   may charge a participant tuition to receive adult education services        

                                                                                

3   under this section from that sliding scale of tuition rates on a uniform    

                                                                                

4   basis.  The amount of tuition charged per participant shall not exceed      

                                                                                

5   the actual operating cost per participant minus any funds received under    

                                                                                

6   this section per participant.  A district or intermediate district may      

                                                                                

7   not charge a participant tuition under this section if the participant's    

                                                                                

8   income is at or below 200% of the federal poverty guidelines published      

                                                                                

9   by the United States department of health and human services.               

                                                                                

10      Sec. 107b. (1) The department is authorized to implement a pilot            

                                                                                

11  adult learning system in 2 Michigan works! regions as described under       

                                                                                

12  this section.                                                               

                                                                                

13      (2) Funds that would be allocated to adult education providers              

                                                                                

14  located within the two Michigan works! regions from section 107(1)          

                                                                                

15  pursuant to section 107 shall instead be distributed to two Michigan        

                                                                                

16  works! agencies selected by the department to participate in the pilot      

                                                                                

17  adult learning systems.                                                     

                                                                                

18      (3) To be eligible to be enrolled as a participant in a pilot               

                                                                                

19  adult learning system, a person shall be at least 16 years of age as of     

                                                                                

20  September 1 of the immediately preceding state fiscal year and shall        

                                                                                

21  meet the following, as applicable:                                          

                                                                                

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

                                                                                

23  general education development (G.E.D.) certificate, the individual is       

                                                                                

24  determined to have English language proficiency, reading, writing, or       

                                                                                

25  math skills below employment trainability skills standards as determined    

                                                                                

26  by tests approved by the department and is not enrolled in a                

                                                                                

27  postsecondary institution. An individual who has obtained a high school     


                                                                                

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

                                                                                

2   program.                                                                    

                                                                                

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

                                                                                

4   G.E.D. certificate, the individual has not attended a secondary             

                                                                                

5   institution for at least 6 months before enrollment in an adult learning    

                                                                                

6   pilot project and is not enrolled in a postsecondary institution.           

                                                                                

7       (4) Not more than 5% of a grant awarded to a Michigan works!                

                                                                                

8   agency may be used for program administration, including contracting for    

                                                                                

9   the provision of career and educational information, counseling             

                                                                                

10  services, and assessment services.                                          

                                                                                

11      (5) A Michigan works! agency authorized to participate in a pilot           

                                                                                

12  adult learner system shall comply with the following requirements in a      

                                                                                

13  manner approved by the department:                                          

                                                                                

14      (a) The Michigan works! agency shall document the need for adult            

                                                                                

15  learning programs in its region.                                            

                                                                                

16      (b) The Michigan works! agency shall develop a strategic plan that          

                                                                                

17  does the following:                                                         

                                                                                

18      (i) Identifies multiple potential adult learning providers,                 

                                                                                

19  including community-based organizations.  Eligible providers shall have     

                                                                                

20  programs that are open entry/open exit, allowing for the immediate start    

                                                                                

21  of training and exit of system upon completion of learning goals.           

                                                                                

22      (ii) Provides an efficient referral process for participants to             

                                                                                

23  enroll with appropriate adult learning providers.                           

                                                                                

24      (iii) Coordinates the pilot adult learner system with other                 

                                                                                

25  available resources in the community, such as schools, postsecondary        

                                                                                

26  institutions, job training programs, and social service agencies.           

                                                                                

27      (iv) Contains regional promotional and recruitment strategies to            


                                                                                

1   inform potential participants, referral agencies, special targeted          

                                                                                

2   groups and the general public of available services.                        

                                                                                

3       (v) Provides adequate job and postsecondary education counseling            

                                                                                

4   services.                                                                   

                                                                                

5       (c) The local workforce development board shall report participant          

                                                                                

6   outcomes and other measurements of program performance into the Michigan    

                                                                                

7   adult education reporting system (MAERS) administered by the department.    

                                                                                

8       (d) A Michigan works! agency shall allow access for the department          

                                                                                

9   or its designee to audit all records related to a pilot adult learning      

                                                                                

10  system for which it receives funds.  The agency shall reimburse this        

                                                                                

11  state for all disallowances found in the audit.                             

                                                                                

12      (6) The Michigan works! agencies in the two pilot adult learner             

                                                                                

13  systems shall award competitive grants to eligible adult learning           

                                                                                

14  providers for the purpose of providing adult learning programs in their     

                                                                                

15  regions.  Applications shall be in a form and manner prescribed by the      

                                                                                

16  department.  Michigan works! agencies shall reimburse eligible adult        

                                                                                

17  learning providers under this section as follows:                           

                                                                                

18      (a) The contract amount shall be allocated to eligible adult                

                                                                                

19  learning providers based upon the following performance standards as        

                                                                                

20  measured in a manner approved by the department:                            

                                                                                

21      (i) The percentage of participants taking both a pretest and a              

                                                                                

22  posttest in English language proficiency, reading, writing, and math.       

                                                                                

23      (ii) The percentage of participants showing improvement toward              

                                                                                

24  goals identified in their individual adult learner plan.                    

                                                                                

25      (iii) The percentage of participants achieving their terminal               

                                                                                

26  goals as identified in their individual adult learner plan.                 

                                                                                

27      (b) A provider is eligible for reimbursement for a participant in           


                                                                                

1   an adult learning program until the participant's reading, writing, or      

                                                                                

2   math proficiency, as applicable, is assessed at employment trainability     

                                                                                

3   skills standards or the participant fails to show progress on 2             

                                                                                

4   successive assessments as determined by the department.                     

                                                                                

5       (c) A provider is eligible for reimbursement for a participant in           

                                                                                

6   an English as a second language program until the participant is            

                                                                                

7   assessed as having attained basic English proficiency or the participant    

                                                                                

8   fails to show progress on 2 successive assessments as determined by the     

                                                                                

9   department.                                                                 

                                                                                

10      (d) A provider is eligible for reimbursement for a participant in           

                                                                                

11  A G.E.D. test preparation program until the participant passes the          

                                                                                

12  G.E.D. test or the participant fails to show progress on 2 successive       

                                                                                

13  assessments as determined by the department.                                

                                                                                

14      (e) A provider is eligible for reimbursement for a participant in           

                                                                                

15  A high school completion program until the participant earns a high         

                                                                                

16  school diploma or the participant fails to show progress as determined      

                                                                                

17  by the department.                                                          

                                                                                

18      (7) A person who is not eligible to be a participant funded under           

                                                                                

19  this section may receive adult learning services upon the payment of        

                                                                                

20  tuition or fees for service. The tuition or fee level shall be              

                                                                                

21  determined by the adult learning provider and approved by the Michigan      

                                                                                

22  works! agency.                                                              

                                                                                

23      (8) A provider shall not be reimbursed under this section for an            

                                                                                

24  individual who is an inmate in a state correctional facility.               

                                                                                

25      (9) A provider shall allow access for the Michigan works! agency            

                                                                                

26  or its designee to audit all records related to pilot adult learning        

                                                                                

27  systems for which it receives funds. The adult learning provider shall      


                                                                                

1   reimburse this state for all disallowances found in the audit.              

                                                                                

2       (10) As used in this section:                                               

                                                                                

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

                                                                                

4   3 of article VIII of the state constitution of 1963, means a high school    

                                                                                

5   pupil receiving educational services in a nontraditional setting from a     

                                                                                

6   district or intermediate district in order to receive a high school         

                                                                                

7   diploma.                                                                    

                                                                                

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

                                                                                

9   department that improves reading, writing, and math skills to employment    

                                                                                

10  trainability skills standards; an English as a second language program;     

                                                                                

11  A G.E.D. preparation program; a high school completion program; or a        

                                                                                

12  workforce readiness program that enhances employment opportunities.         

                                                                                

13      (c)  "Department" for the purposes of this section means the                

                                                                                

14  department of labor and economic growth.                                    

                                                                                

15      (d) "Eligible adult learning provider" means a district, public             

                                                                                

16  school academy, intermediate district, community college, university,       

                                                                                

17  community-based organization, or other organization approved by the         

                                                                                

18  department that provides adult learning systems under a contract with a     

                                                                                

19  Michigan works! agency that is  part of a pilot adult learner system.       

                                                                                

20      (e) "Employment trainability skills standard" means a proficiency           

                                                                                

21  level approved by the department in English language, reading, writing,     

                                                                                

22  or mathematics, or any and all of these, as determined by results from      

                                                                                

23  assessments approved for use by the department.                             

                                                                                

24      (f) "Michigan works! agency" means the agency designated by the             

                                                                                

25  chief elected official and approved by the Governor to administer the       

                                                                                

26  portion of the Michigan works! system for that local workforce              

                                                                                

27  investment area.                                                            


                                                                                

1       (g) "Participant" means an individual enrolled in an adult                  

                                                                                

2   learning program and receiving services from an eligible adult learning     

                                                                                

3   provider.                                                                   

                                                                                

4       (h)  "Pilot project" means a temporary project established to               

                                                                                

5   deliver a new adult learner system.                                         

                                                                                

6       Sec. 147. (1) The allocation for 2003-2004 2004-2005 for the                

                                                                                

7   public school employees' retirement system pursuant to the public school    

                                                                                

8   employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408,      

                                                                                

9   shall be made using the entry age normal cost actuarial method and risk     

                                                                                

10  assumptions adopted by the public school employees retirement board and     

                                                                                

11  the department of management and budget.  The annual level percentage of    

                                                                                

12  payroll contribution rate is estimated at 14.37% 14.87% for the 2003-       

                                                                                

13  2004 2004-2005 state fiscal year.  However, if all eligible districts       

                                                                                

14  participating in the school bond loan authority assist the state            

                                                                                

15  treasurer in the refinancing of school bond loan authority debt, the        

                                                                                

16  annual level percentage of payroll contribution rate for all districts      

                                                                                

17  is estimated to be 12.99% for the 2003-2004 fiscal year. If an eligible     

                                                                                

18  district does not assist in the refinancing, that district's payroll        

                                                                                

19  contribution rate is estimated to be 14.37% for the 2003-2004 fiscal        

                                                                                

20  year.  The portion of the contribution rate assigned to districts and       

                                                                                

21  intermediate districts for each fiscal year is all of the total             

                                                                                

22  percentage points.  This contribution rate reflects an amortization         

                                                                                

23  period of 33 32 years for 2003-2004 2004-2005. The public school            

                                                                                

24  employees' retirement system board shall notify each district and           

                                                                                

25  intermediate district by February 28 of each fiscal year of the             

                                                                                

26  estimated contribution rate for the next fiscal year.                       

                                                                                

27      (2) It is the intent of the legislature that the amortization               


                                                                                

1   period described in section 41(2) of the public school employees            

                                                                                

2   retirement act of 1979, 1980 PA 300, MCL 38.1341, be reduced to 30 years    

                                                                                

3   by the end of the 2005-2006 state fiscal year by reducing the               

                                                                                

4   amortization period by not more than 1 year each fiscal year.               

                                                                                

5       Sec. 152.  Except for reports due on other dates specified in this          

                                                                                

6   act, each district and intermediate district shall furnish to the center    

                                                                                

7   or the department, as applicable, before the first Monday in November of    

                                                                                

8   each year those reports the department considers necessary for the          

                                                                                

9   determination of the allocation of funds under this act.  In order to       

                                                                                

10  receive funds under this act, each district and intermediate district       

                                                                                

11  shall also furnish to the center or the department, as applicable, the      

                                                                                

12  information the department considers necessary for the administration of    

                                                                                

13  this act, including information necessary to determine compliance with      

                                                                                

14  article 16, and for the provision of reports of educational progress to     

                                                                                

15  the senate and house committees responsible for education, the senate       

                                                                                

16  and house appropriations subcommittees responsible for appropriations to    

                                                                                

17  school districts, the senate and house fiscal agencies, and the state       

                                                                                

18  budget director, as appropriate.                                            

                                                                                

19      Sec. 158b. Each district that receives federal impact aid under             

                                                                                

20  section 3(c)(1) of title 1 of chapter 1124, 64 Stat. 1100, 20 U.S.C.        

                                                                                

21  238, annually shall report to the department center, in the form and        

                                                                                

22  manner prescribed by the department, the amount of that aid the district    

                                                                                

23  received.                                                                   

                                                                                

24      Sec. 163. (1) Except as provided in the revised school code or in           

                                                                                

25  section 108 107b, the board of a district or intermediate district shall    

                                                                                

26  not permit any of the following:                                            

                                                                                

27      (a) A noncertificated teacher to teach in an elementary or                  


                                                                                

1   secondary school or in an adult basic education or high school              

                                                                                

2   completion program.                                                         

                                                                                

3       (b) A noncertificated counselor to provide counseling services to           

                                                                                

4   pupils in an elementary or secondary school or in an adult basic            

                                                                                

5   education or high school completion program.                                

                                                                                

6       (2) Except as provided in the revised school code or in section             

                                                                                

7   108 107b, a district or intermediate district employing teachers or         

                                                                                

8   counselors not legally certificated shall have deducted the sum equal to    

                                                                                

9   the amount paid the teachers or counselors for the period of                

                                                                                

10  noncertificated or illegal employment.  Each intermediate superintendent    

                                                                                

11  shall notify the department of the name of the noncertificated teacher      

                                                                                

12  or counselor, and the district employing that individual and the amount     

                                                                                

13  of salary the noncertificated teacher or counselor was paid within a        

                                                                                

14  constituent district.                                                       

                                                                                

15      (3) If a school official is notified by the department that he or           

                                                                                

16  she is employing a nonapproved noncertificated teacher or counselor in      

                                                                                

17  violation of this section and knowingly continues to employ that teacher    

                                                                                

18  or counselor, the school official is guilty of a misdemeanor, punishable    

                                                                                

19  by a fine of $1,500.00 for each incidence.                                  

                                                                                

20      Enacting section 1.  In accordance with section 30 of article IX            

                                                                                

21  of the state constitution of 1963, total state spending in this             

                                                                                

22  amendatory act from state sources for fiscal year 2004-2005 is              

                                                                                

23  estimated at $11,165,500,000.00 and state appropriations to be paid to      

                                                                                

24  local units of government for fiscal year 2004-2005 are estimated at        

                                                                                

25  $11,107,634,200.                                                            

                                                                                

26      Enacting section 2. Sections 8a, 11c, 31e, 32b, 68, 107a, 108               

                                                                                

27  and 166 of the state school aid act of 1979, 1979 PA 94, MCL 388.1608a,     


                                                                                

1   388.1611c, 388.1631e, 388.1632b, 388.1668, 388.1707a, 388.1708 and          

                                                                                

2   388.1766, are repealed effective October 1, 2004.                           

                                                                                

3       Enacting section 3.  (1) Except as otherwise specified in                   

                                                                                

4   subsection (2), this act shall take effect October 1, 2004.                 

                                                                                

5       (2) Sections 22a and 94a, as amended by the amendatory act, take            

                                                                                

6   effect upon enactment of this amendatory act.