March 1, 2006, Introduced by Rep. Moolenaar and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending section 11 (MCL 388.1611), as amended by 2005 PA 155.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
11. (1) For the fiscal year ending September 30, 2005,
there
is appropriated for the public schools of this state and
certain
other state purposes relating to education the sum of
$10,907,222,200.00
from the state school aid fund established by
section
11 of article IX of the state constitution of 1963, the sum
of
$41,100,000.00 from the proceeds of capitalization of the school
bond
loan fund revolving fund, and the sum of $165,200,000.00 from
the
general fund. For the fiscal year
ending September 30, 2006,
there is appropriated for the public schools of this state and
certain other state purposes relating to education the sum of
$11,257,600,000.00 from the state school aid fund established by
section 11 of article IX of the state constitution of 1963, the sum
of $44,500,000.00 from the proceeds of capitalization of the school
bond loan fund revolving fund, and the sum of $62,714,000.00 from
the general fund. For the fiscal year ending September 30, 2007,
there is appropriated for the public schools of this state and
certain other state purposes relating to education the sum of
$_________________ from the state school aid fund established by
section 11 of article IX of the state constitution of 1963 and the
sum of $______________ from the general fund. In addition,
available federal funds are appropriated for each fiscal year.
(2) The appropriations under this section shall be allocated
as provided in this act. Money appropriated under this section from
the general fund shall be expended to fund the purposes of this act
before the expenditure of money appropriated under this section
from the state school aid fund. If the maximum amount appropriated
under this section from the state school aid fund for a fiscal year
exceeds the amount necessary to fully fund allocations under this
act from the state school aid fund, that excess amount shall not be
expended in that state fiscal year and shall not lapse to the
general fund, but instead shall be deposited into the school aid
stabilization fund created in section 11a.
(3) If the maximum amount appropriated under this section from
the state school aid fund and the school aid stabilization fund for
a fiscal year exceeds the amount available for expenditure from the
state school aid fund for that fiscal year, payments under sections
11f, 11g, 11j, 22a, 26a, 26b, 31d, 51a(2), 51a(12), 51c, 53a, and
56 shall be made in full. In addition, for districts beginning
operations after 1994-95 that qualify for payments under section
22b, payments under section 22b shall be made so that the
qualifying districts receive the lesser of an amount equal to the
1994-95 foundation allowance of the district in which the district
beginning operations after 1994-95 is located or $5,500.00. The
amount of the payment to be made under section 22b for these
qualifying districts shall be as calculated under section 22a, with
the balance of the payment under section 22b being subject to the
proration otherwise provided under this subsection and subsection
(4). If proration is necessary after 2002-2003, state payments
under each of the other sections of this act from all state funding
sources shall be prorated in the manner prescribed in subsection
(4) as necessary to reflect the amount available for expenditure
from the state school aid fund for the affected fiscal year.
However, if the department of treasury determines that proration
will be required under this subsection, or if the department of
treasury determines that further proration is required under this
subsection after an initial proration has already been made for a
fiscal year, the department of treasury shall notify the state
budget director, and the state budget director shall notify the
legislature at least 30 calendar days or 6 legislative session
days, whichever is more, before the department reduces any payments
under this act because of the proration. During the 30 calendar day
or 6 legislative session day period after that notification by the
state budget director, the department shall not reduce any payments
under this act because of proration under this subsection. The
legislature may prevent proration from occurring by, within the 30
calendar day or 6 legislative session day period after that
notification by the state budget director, enacting legislation
appropriating additional funds from the general fund,
countercyclical budget and economic stabilization fund, state
school aid fund balance, or another source to fund the amount of
the projected shortfall.
(4) If proration is necessary, the department shall calculate
the proration in district and intermediate district payments that
is required under subsection (3) as follows:
(a) The department shall calculate the percentage of total
state school aid allocated under this act for the affected fiscal
year for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(i) for districts by
reducing payments to districts. This reduction shall be made by
calculating an equal dollar amount per pupil as necessary to
recover this percentage of the proration amount and reducing each
district's total state school aid from state sources, other than
payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 51a(2),
51a(12), 51c, and 53a, by that amount.
(c) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(ii) for intermediate
districts by reducing payments to intermediate districts. This
reduction shall be made by reducing the payments to each
intermediate district, other than payments under sections 11f, 11g,
26a, 26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage
basis.
(d) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(iii) for entities other
than districts and intermediate districts by reducing payments to
these entities. This reduction shall be made by reducing the
payments to each of these entities, other than payments under
sections 11j, 26a, and 26b, on an equal percentage basis.
(5) Except for the allocation under section 26a, any general
fund allocations under this act that are not expended by the end of
the state fiscal year are transferred to the school aid
stabilization fund created under section 11a.