March 2, 2005, Introduced by Senators SWITALSKI and EMERSON 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 4, 6, 11, 11a, 11f, 11g, 11j, 18, 19, 20, 20d,
20j, 22a, 22b, 22d, 24, 26a, 31a, 31d, 32c, 32d, 32j, 37, 39, 39a,
41, 41a, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 74, 81, 94a, 98,
99, 107, 107b, 147, 158b, and 164c (MCL 388.1604, 388.1606,
388.1611, 388.1611a, 388.1611f, 388.1611g, 388.1611j, 388.1618,
388.1619, 388.1620, 388.1620d, 388.1620j, 388.1622a, 388.1622b,
388.1622d, 388.1624, 388.1626a, 388.1631a, 388.1631d, 388.1632c,
388.1632d, 388.1632j, 388.1637, 388.1639, 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, 388.1699, 388.1707, 388.1707b, 388.1747,
388.1758b, and 388.1764c), sections 4, 6, 11f, 11g, 11j, 19, 20,
20j, 22a, 22b, 24, 26a, 31d, 32c, 32d, 32j, 37, 39a, 41, 41a, 51c,
51d, 53a, 54, 56, 57, 61a, 62, 74, 81, 94a, 98, 99, 107, 147, and
158b as amended and sections 22d and 107b as added by 2004 PA 351,
sections 11 and 51a as amended by 2004 PA 518, section 11a as added
by 2003 PA 158, section 18 as amended by 2004 PA 414, section 20d
as amended by 1997 PA 93, section 31a as amended by 2004 PA 593,
section 39 as amended by 2002 PA 191, section 164c as added by 1995
PA 130, and by adding sections 22e, 26b, and 103; and to repeal
acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. (1) "Elementary pupil" means a pupil in membership in
grades K to 8 in a district not maintaining classes above the
eighth grade or in grades K to 6 in a district maintaining classes
above the eighth grade.
(2) "Extended school year" means an educational program
conducted by a district in which pupils must be enrolled but not
necessarily in attendance on the pupil membership count day in an
extended year program. The
mandatory days of student instruction
and prescribed clock hours shall be
completed by each pupil not
more than 365 calendar days after the pupil's first day of classes
for the school year prescribed. The department shall prescribe
pupil, personnel, and other reporting requirements for the
educational program.
(3) "Fiscal year"
means the state fiscal year which that
commences October 1 and continues through September 30.
(4) "General educational development testing preparation
program" means a program that has high school level courses in
English language arts, social studies, science, and mathematics and
that prepares a person to successfully complete the general
educational development (GED) test.
(5) "High school pupil" means a pupil in membership in grades 7
to 12, except in a district not maintaining grades above the eighth
grade.
Sec. 6. (1) "Center program" means a program operated by a
district or intermediate district for special education pupils from
several districts in programs for the autistically impaired,
trainable mentally impaired, severely mentally impaired, severely
multiply impaired, hearing impaired, physically and otherwise
health impaired, and visually impaired. Programs for emotionally
impaired pupils housed in buildings that do not serve regular
education pupils also qualify. Unless otherwise approved by the
department, a center program either shall serve all constituent
districts within an intermediate district or shall serve several
districts with less than 50% of the pupils residing in the
operating district. In addition, special education center program
pupils placed part-time in noncenter programs to comply with the
least restrictive environment provisions of section 612 of part B
of the individuals with disabilities education act, 20 USC 1412,
may be considered center program pupils for pupil accounting
purposes for the time scheduled in either a center program or a
noncenter program.
(2) "District and high school graduation rate" means the annual
completion and pupil dropout rate that is calculated by the center
pursuant to nationally recognized standards.
(3) "District and high school graduation report" means a report
of the number of pupils,
excluding migrant and adult
participants,
in the district for the immediately preceding school year, adjusted
for those pupils who have transferred into or out of the district
or
high school, or
transferred to alternative programs, who leave
high school with a diploma or other credential of equal status.
(4) "Membership", except as otherwise provided in this act,
means for a district, public school academy, university school, or
intermediate district the sum of the product of .75 times the
number of full-time equated pupils in grades K to 12 actually
enrolled and in regular daily attendance on the pupil membership
count day for the current school year, plus the product of .25
times the final audited count from the supplemental count day for
the immediately preceding school year. All pupil counts used in
this subsection are as determined by the department and calculated
by adding the number of pupils registered for attendance plus
pupils received by transfer and minus pupils lost as defined by
rules promulgated by the superintendent, and as corrected by a
subsequent department audit. The amount of the foundation
allowance for a pupil in membership is determined under section 20.
In making the calculation of membership, all of the following, as
applicable, apply to determining the membership of a district,
public school academy, university school, or intermediate district:
(a) Except as otherwise provided in this subsection, and
pursuant to subsection (6), a pupil shall be counted in membership
in the pupil's educating district or districts. An individual
pupil shall not be counted for more than a total of 1.0 full-time
equated membership.
(b) If a pupil is educated in a district other than the pupil's
district of residence, if the pupil is not being educated as part
of a cooperative education program, if the pupil's district of
residence does not give the educating district its approval to
count the pupil in membership in the educating district, and if the
pupil is not covered by an exception specified in subsection (6) to
the requirement that the educating district must have the approval
of the pupil's district of residence to count the pupil in
membership, the pupil shall not be counted in membership in any
district.
(c) A special education pupil educated by the intermediate
district shall be counted in membership in the intermediate
district.
(d) A pupil placed by a court or state agency in an on-grounds
program of a juvenile detention facility, a child caring
institution, or a mental health institution, or a pupil funded
under section 53a, shall be counted in membership in the district
or intermediate district approved by the department to operate the
program.
(e) A pupil enrolled in the Michigan schools for the deaf and
blind shall be counted in membership in the pupil's intermediate
district of residence.
(f) A pupil enrolled in a vocational education program
supported by a millage levied over an area larger than a single
district or in an area vocational-technical education program
established pursuant to section 690 of the revised school code, MCL
380.690, shall be counted only in the pupil's district of
residence.
(g) A pupil enrolled in a university school shall be counted in
membership in the university school.
(h) A pupil enrolled in a public school academy shall be
counted in membership in the public school academy.
(i) For a new district, university school, or public school
academy beginning its operation after December 31, 1994, membership
for the first 2 full or partial fiscal years of operation shall be
determined as follows:
(i) If operations begin before the pupil membership count day
for the fiscal year, membership is the average number of full-time
equated pupils in grades K to 12 actually enrolled and in regular
daily attendance on the pupil membership count day for the current
school year and on the supplemental count day for the current
school year, as determined by the department and calculated by
adding the number of pupils registered for attendance on the pupil
membership count day plus pupils received by transfer and minus
pupils lost as defined by rules promulgated by the superintendent,
and as corrected by a subsequent department audit, plus the final
audited count from the supplemental count day for the current
school year, and dividing that sum by 2.
(ii) If operations begin after the pupil membership count day
for the fiscal year and not later than the supplemental count day
for the fiscal year, membership is the final audited count of the
number of full-time equated pupils in grades K to 12 actually
enrolled and in regular daily attendance on the supplemental count
day for the current school year.
(j) If a district is the authorizing body for a public school
academy, then, in the first school year in which pupils are counted
in membership on the pupil membership count day in the public
school academy, the determination of the district's membership
shall exclude from the district's pupil count for the immediately
preceding supplemental count day any pupils who are counted in the
public school academy on that first pupil membership count day who
were also counted in the district on the immediately preceding
supplemental count day.
(k) In a district, public school academy, university school, or
intermediate district operating an extended school year program
approved by the superintendent, a pupil enrolled, but not scheduled
to be in regular daily attendance on a pupil membership count day,
shall be counted.
(l) Pupils to be counted in membership shall be not less than 5
years of age on December 1 and less than 20 years of age on
September 1 of the school year except a special education pupil who
is enrolled and receiving instruction in a special education
program or service approved by the department and not having a high
school diploma who is less than 26 years of age as of September 1
of the current school year shall be counted in membership.
(m) An individual who has obtained a high school diploma shall
not be counted in membership. An individual who has obtained a
general educational development (G.E.D.) certificate shall not be
counted in membership. An individual participating in a job
training program funded under former section 107a or a jobs program
funded under former section 107b, administered by the Michigan
strategic fund or the department of labor and economic growth, or
participating in any successor of either of those 2 programs, shall
not be counted in membership.
(n) If a pupil counted in membership in a public school academy
is also educated by a district or intermediate district as part of
a cooperative education program, the pupil shall be counted in
membership only in the public school academy unless a written
agreement signed by all parties designates the party or parties in
which the pupil shall be counted in membership, and the
instructional time scheduled for the pupil in the district or
intermediate district shall be included in the full-time equated
membership determination under subdivision (q). However, for
pupils receiving instruction in both a public school academy and in
a district or intermediate district but not as a part of a
cooperative education program, the following apply:
(i) If the public school academy provides instruction for at
least 1/2 of the class hours specified in subdivision (q), the
public school academy shall receive as its prorated share of the
full-time equated membership for each of those pupils an amount
equal to 1 times the product of the hours of instruction the public
school academy provides divided by the number of hours specified in
subdivision (q) for full-time equivalency, and the remainder of the
full-time membership for each of those pupils shall be allocated to
the district or intermediate district providing the remainder of
the hours of instruction.
(ii) If the public school academy provides instruction for less
than 1/2 of the class hours specified in subdivision (q), the
district or intermediate district providing the remainder of the
hours of instruction shall receive as its prorated share of the
full-time equated membership for each of those pupils an amount
equal to 1 times the product of the hours of instruction the
district or intermediate district provides divided by the number of
hours specified in subdivision (q) for full-time equivalency, and
the remainder of the full-time membership for each of those pupils
shall be allocated to the public school academy.
(o) An individual less than 16 years of age as of September 1
of the current school year who is being educated in an alternative
education program shall not be counted in membership if there are
also adult education participants being educated in the same
program or classroom.
(p) The department shall give a uniform interpretation of full-
time and part-time memberships.
(q) The number of class hours used to calculate full-time
equated memberships shall be consistent with section 101(3). In
determining full-time equated memberships for pupils who are
enrolled in a postsecondary institution, a pupil shall not be
considered to be less than a full-time equated pupil solely because
of the effect of his or her postsecondary enrollment, including
necessary travel time, on the number of class hours provided by the
district to the pupil.
(r) Full-time equated memberships for pupils in kindergarten
shall be determined by dividing the number of class hours scheduled
and provided per year per kindergarten pupil by a number equal to
1/2 the number used for determining full-time equated memberships
for pupils in grades 1 to 12.
(s) For a district, university school, or public school academy
that has pupils enrolled in a grade level that was not offered by
the district, university school, or public school academy in the
immediately preceding school year, the number of pupils enrolled in
that grade level to be counted in membership is the average of the
number of those pupils enrolled and in regular daily attendance on
the pupil membership count day and the supplemental count day of
the current school year, as determined by the department.
Membership shall be calculated by adding the number of pupils
registered for attendance in that grade level on the pupil
membership count day plus pupils received by transfer and minus
pupils lost as defined by rules promulgated by the superintendent,
and as corrected by subsequent department audit, plus the final
audited count from the supplemental count day for the current
school year, and dividing that sum by 2.
(t) A pupil enrolled in a cooperative education program may be
counted in membership in the pupil's district of residence with the
written approval of all parties to the cooperative agreement.
(u) If, as a result of a disciplinary action, a district
determines through the district's alternative or disciplinary
education program that the best instructional placement for a pupil
is in the pupil's home, if that placement is authorized in writing
by the district superintendent and district alternative or
disciplinary education supervisor, and if the district provides
appropriate instruction as described in this subdivision to the
pupil at the pupil's home, the district may count the pupil in
membership on a pro rata basis, with the proration based on the
number of hours of instruction the district actually provides to
the pupil divided by the number of hours specified in subdivision
(q) for full-time equivalency. For the purposes of this
subdivision, a district shall be considered to be providing
appropriate instruction if all of the following are met:
(i) The district provides at least 2 nonconsecutive hours of
instruction per week to the pupil at the pupil's home under the
supervision of a certificated teacher.
(ii) The district provides instructional materials, resources,
and supplies, except computers, that are comparable to those
otherwise provided in the district's alternative education program.
(iii) Course content is comparable to that in the district's
alternative education program.
(iv) Credit earned is awarded to the pupil and placed on the
pupil's transcript.
(v) A pupil enrolled in an alternative or disciplinary
education program described in section 25 shall be counted in
membership in the district or public school academy that expelled
the pupil.
(w) If a pupil was enrolled in a public school academy on the
pupil membership count day, if the public school academy's contract
with its authorizing body is revoked or the public school academy
otherwise ceases to operate, and if the pupil enrolls in a district
within 45 days after the pupil membership count day, the department
shall adjust the district's pupil count for the pupil membership
count day to include the pupil in the count.
(x) For a public school academy that has been in operation for
at least 2 years and that suspended operations for at least 1
semester and is resuming operations, membership is the sum of the
product of .75 times the number of full-time equated pupils in
grades K to 12 actually enrolled and in regular daily attendance on
the first pupil membership count day or supplemental count day,
whichever is first, occurring after operations resume, plus the
product of .25 times the final audited count from the most recent
pupil membership count day or supplemental count day that occurred
before suspending operations, as determined by the superintendent.
(y) If a district's membership for a particular fiscal year, as
otherwise calculated under this subsection, would be less than
1,550 pupils and the district has 4.5 or fewer pupils per square
mile, as determined by the department, and if the district does not
receive funding under section 22d, the district's membership shall
be considered to be the membership figure calculated under this
subdivision. If a district educates and counts in its membership
pupils in grades 9 to 12 who reside in a contiguous district that
does not operate grades 9 to 12 and if 1 or both of the affected
districts request the department to use the determination allowed
under this sentence, the department shall include the square
mileage of both districts in determining the number of pupils per
square mile for each of the districts for the purposes of this
subdivision. The membership figure calculated under this
subdivision is the greater of the following:
(i) The average of the district's membership for the 3-fiscal-
year period ending with that fiscal year, calculated by adding the
district's actual membership for each of those 3 fiscal years, as
otherwise calculated under this subsection, and dividing the sum of
those 3 membership figures by 3.
(ii) The district's actual membership for that fiscal year as
otherwise calculated under this subsection.
(z) If a public school academy that is not in its first or
second year of operation closes at the end of a school year and
does not reopen for the next school year, the department shall
adjust the membership count of the district in which a former pupil
of the public school academy enrolls and is in regular daily
attendance for the next school year to ensure that the district
receives the same amount of membership aid for the pupil as if the
pupil were counted in the district on the supplemental count day of
the preceding school year.
(aa) Full-time equated memberships for preprimary-aged special
education pupils who are not enrolled in kindergarten but are
enrolled in a classroom program under administrative rule R340.1754
shall be determined by dividing the number of class hours scheduled
and provided per year by 450. Full-time equated memberships for
preprimary-aged special education pupils who are not enrolled in
kindergarten but are receiving non-classroom services under
administrative rule R340.1755 shall be determined by dividing the
number of hours of service scheduled and provided per year per
pupil by 180.
(5) "Public school academy" means a public school academy,
urban high school academy, or strict discipline academy operating
under the revised school code.
(6) "Pupil" means a person in membership in a public school. A
district must have the approval of the pupil's district of
residence to count the pupil in membership, except approval by the
pupil's district of residence is not required for any of the
following:
(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in
accordance with section 166b.
(b) A pupil receiving 1/2 or less of his or her instruction in
a district other than the pupil's district of residence.
(c) A pupil enrolled in a public school academy or university
school.
(d) A pupil enrolled in a district other than the pupil's
district of residence under an intermediate district schools of
choice pilot program as described in section 91a or former section
91 if the intermediate district and its constituent districts have
been exempted from section 105.
(e) A pupil enrolled in a district other than the pupil's
district of residence if the pupil is enrolled in accordance with
section 105 or 105c.
(f) A pupil who has made an official written complaint or whose
parent or legal guardian has made an official written complaint to
law enforcement officials and to school officials of the pupil's
district of residence that the pupil has been the victim of a
criminal sexual assault or other serious assault, if the official
complaint either indicates that the assault occurred at school or
that the assault was committed by 1 or more other pupils enrolled
in the school the pupil would otherwise attend in the district of
residence or by an employee of the district of residence. A person
who intentionally makes a false report of a crime to law
enforcement officials for the purposes of this subdivision is
subject to section 411a of the Michigan penal code, 1931 PA 328,
MCL 750.411a, which provides criminal penalties for that conduct.
As used in this subdivision:
(i) "At school" means in a classroom, elsewhere on school
premises, on a school bus or other school-related vehicle, or at a
school-sponsored activity or event whether or not it is held on
school premises.
(ii) "Serious assault" means an act that constitutes a felony
violation of chapter XI of the Michigan penal code, 1931 PA 328,
MCL 750.81 to 750.90g, or that constitutes an assault and
infliction of serious or aggravated injury under section 81a of the
Michigan penal code, 1931 PA 328, MCL 750.81a.
(g) A pupil whose district of residence changed after the pupil
membership count day and before the supplemental count day and who
continues to be enrolled on the supplemental count day as a
nonresident in the district in which he or she was enrolled as a
resident on the pupil membership count day of the same school year.
(h) A pupil enrolled in an alternative education program
operated by a district other than his or her district of residence
who meets 1 or more of the following:
(i) The pupil has been suspended or expelled from his or her
district of residence for any reason, including, but not limited
to, a suspension or expulsion under section 1310, 1311, or 1311a of
the revised school code, MCL 380.1310, 380.1311, and 380.1311a.
(ii) The pupil had previously dropped out of school.
(iii) The pupil is pregnant or is a parent.
(iv) The pupil has been referred to the program by a court.
(i) A pupil enrolled in the Michigan virtual high school, for
the pupil's enrollment in the Michigan virtual high school.
(j) A pupil who is the child of a person who is employed by the
district. As used in this subdivision, "child" includes an adopted
child or legal ward.
However, if a district that is not a first class district educates
pupils who reside in a first class district and if the primary
instructional site for those pupils is located within the
boundaries of the first class district, the educating district must
have the approval of the first class district to count those pupils
in membership. As used in this subsection, "first class district"
means a district organized as a school district of the first class
under the revised school code.
(7) "Pupil membership count day" of a district or intermediate
district means:
(a) Except as provided in subdivision (b), the fourth Wednesday
in September each school year.
(b) For a district or intermediate district maintaining school
during the entire school year, the following days:
(i) Fourth Wednesday in July.
(ii) Fourth Wednesday in September.
(iii) Second Wednesday in February.
(iv) Fourth Wednesday in April.
(8) "Pupils in grades K to 12 actually enrolled and in regular
daily attendance" means pupils in grades K to 12 in attendance and
receiving instruction in all classes for which they are enrolled on
the pupil membership count day or the supplemental count day, as
applicable. A Except as otherwise provided in this
subsection, a
pupil who is absent from any of the classes in which the pupil is
enrolled on the pupil membership count day or supplemental count
day and who does not attend each of those classes during the 10
consecutive school days immediately following the pupil membership
count day or supplemental count day, except for a pupil who has
been excused by the district, shall not be counted as 1.0 full-time
equated membership. In
addition, a A pupil
who is excused from
attendance on the pupil membership count day or supplemental count
day and who fails to attend each of the classes in which the pupil
is enrolled within 30 calendar days after the pupil membership
count day or supplemental count day shall not be counted as 1.0
full-time equated membership. In addition, a pupil who was
enrolled and in attendance in a district, intermediate district, or
public school academy prior to the pupil membership count day or
supplemental count day of a particular year but was expelled on the
pupil membership count day or supplemental count day, may only be
counted as 1.0 full-time equated membership if the pupil resumed
attendance in the district, intermediate district or public school
academy within 45 days following the pupil membership count day or
supplemental count day. Pupils not counted as 1.0 full-time equated
membership due to an absence from a class shall be counted as a
prorated membership for the classes the pupil attended. For
purposes of this subsection, "class" means a period of time in 1
day when pupils and a certificated teacher or legally qualified
substitute teacher are together and instruction is taking place.
(9) "Rule" means a rule promulgated pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(10) "The revised school code" means 1976 PA 451, MCL 380.1 to
380.1852.
(11) "School fiscal year" means a fiscal year that commences
July 1 and continues through June 30.
(12) "State board" means the state board of education.
(13) "Superintendent", unless the context clearly refers to a
district or intermediate district superintendent, means the
superintendent of public instruction described in section 3 of
article VIII of the state constitution of 1963.
(14) "Supplemental count day" means the day on which the
supplemental pupil count is conducted under section 6a.
(15) "Tuition pupil" means a pupil of school age attending
school in a district other than the pupil's district of residence
for whom tuition may be charged. Tuition pupil does not include a
pupil who is a special education pupil or a pupil described in
subsection (6)(d) to (j). A pupil's district of residence shall
not require a high school tuition pupil, as provided under section
111, to attend another school district after the pupil has been
assigned to a school district.
(16) "State school aid fund" means the state school aid fund
established in section 11 of article IX of the state constitution
of 1963.
(17) "Taxable value" means the taxable value of property as
determined under section 27a of the general property tax act, 1893
PA 206, MCL 211.27a.
(18) "Textbook" means a book that is selected and approved by
the governing board of a district and that contains a presentation
of principles of a subject, or that is a literary work relevant to
the study of a subject required for the use of classroom pupils, or
another type of course material that forms the basis of classroom
instruction.
(19) "Total state aid" or "total state school aid" means the
total combined amount of all funds due to a district, intermediate
district, or other entity under all of the provisions of this act.
(20) "University school" means an instructional program
operated by a public university under section 23 that meets the
requirements of section 23.
Sec. 11. (1) In addition
to all other appropriations under this
act for that fiscal year,
for the fiscal year ending September 30,
2004, there is appropriated
to the state school aid fund from the
unreserved balance in the
general fund an amount equal to any
deficit balance that would
otherwise exist in the state school aid
fund at bookclosing for the fiscal
year ending September
30, 2004.
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 $10,909,200,000.00
$10,927,222,200.00 from the state school aid fund established by
section 11 of article IX of the state constitution of 1963 and the
sum of $264,700,000.00
$165,200,000.00 from the
general fund and
the sum of $41,100,000.00 from the proceeds of capitalization of
the school bond loan fund revolving 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 $11,370,494,600.00 from the state school aid
fund established by section 11 of article IX of the state
constitution of 1963 and the sum of $20,200,000.00 from the general
fund and the sum of $44,500,000.00 from the proceeds of
capitalization of the school bond loan fund revolving fund. In
addition, available federal funds are appropriated for each of
those fiscal years.
(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, 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). Subject to subsection (5), 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) Subject to subsection (5), 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 and , 26a and 26b, on an equal percentage basis.
(5) Beginning in 2004-2005, if a district has an emergency
financial manager in place under the local government fiscal
responsibility act, 1990 PA 72, MCL 141.1201 to 141.1291, payments
to that district are not subject to proration under this section.
(6) 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 state school aid
stabilization
fund created in section 11a. If it
is determined at
the May 2005 revenue
estimating conference conducted under section
367b of the management and
budget act, 1984 PA 431, MCL 18.1367b,
that there is additional
school aid fund revenue beyond that
determined at the May 2004
revenue estimating conference, then it
is the intent of the
legislature to enact legislation to fund, to
the extent that revenues are
available, the same programs in the
same amount that were funded
under section 81 in 2003 PA 236 and
the same pupil membership
formula as in effect under 2003 PA 236.
Sec. 11a. (1) The school aid stabilization fund is created as a
separate account within the state school aid fund established by
section 11 of article IX of the state constitution of 1963.
(2) The state treasurer may receive money or other assets from
any source for deposit into the school aid stabilization fund. The
state treasurer shall deposit into the school aid stabilization
fund all of the following:
(a) Unexpended and unencumbered state school aid fund revenue
for a fiscal year that remains in the state school aid fund as of
the bookclosing for that fiscal year.
(b) Money statutorily dedicated to the school aid stabilization
fund.
(c) Money appropriated to the school aid stabilization fund.
(3) Money available in the school aid stabilization fund may
not be expended without a specific appropriation from the school
aid stabilization fund. Money in the school aid stabilization fund
shall be expended only for purposes for which state school aid fund
money may be expended.
(4) The state treasurer shall direct the investment of the
school aid stabilization fund. The state treasurer shall credit to
the school aid stabilization fund interest and earnings from fund
investments.
(5) Money in the school aid stabilization fund at the close of
a fiscal year shall remain in the school aid stabilization fund and
shall not lapse to the unreserved school aid fund balance or the
general fund.
(6) If the maximum amount appropriated under section 11 from
the state school aid fund for a fiscal year exceeds the amount
available for expenditure from the state school aid fund for that
fiscal year, there is appropriated from the school aid
stabilization fund to the state school aid fund an amount equal to
the projected shortfall as determined by the department of
treasury, but not to exceed available money in the school aid
stabilization fund. If the money in the school aid stabilization
fund is insufficient to fully fund an amount equal to the projected
shortfall, the state budget director shall notify the legislature
as required under section 11(3) and state payments in an amount
equal to the remainder of the projected shortfall shall be prorated
in the manner provided under section 11(4).
(7) For 2004-2005, the amount of $74,070,000.00 shall be
transferred from the school aid stabilization fund to the state
school aid fund. For 2005-2006, the amount of $23,700,000.00 shall
be transferred from the school aid stabilization fund to the state
school aid fund.
Sec. 11f. (1) From the appropriations under section 11, there
is allocated for the purposes of this section an amount not to
exceed $32,000,000.00 for
the fiscal year ending September
30, 2005
2006 and for each succeeding fiscal year through the fiscal year
ending September 30, 2008. Payments under this section will cease
after September 30, 2008. These allocations are for paying the
amounts described in subsection (4) to districts and intermediate
districts, other than those receiving a lump sum payment under
subsection (2), that were not plaintiffs in the consolidated cases
known as Durant v State of Michigan, Michigan supreme court docket
no. 104458-104492 and that, on or before March 2, 1998, submitted
to the state treasurer a board resolution waiving any right or
interest the district or intermediate district has or may have in
any claim or litigation based on or arising out of any claim or
potential claim through September 30, 1997 that is or was similar
to the claims asserted by the plaintiffs in the consolidated cases
known as Durant v State of Michigan. The waiver resolution shall
be in form and substance as required under subsection (7). The
state treasurer is authorized to accept such a waiver resolution on
behalf of this state. The amounts described in this subsection
represent offers of settlement and compromise of any claim or
claims that were or could have been asserted by these districts and
intermediate districts, as described in this subsection.
(2) In addition to any other money appropriated under this act,
there was appropriated from the state school aid fund an amount not
to exceed $1,700,000.00 for the fiscal year ending September 30,
1999. This appropriation was for paying the amounts described in
this subsection to districts and intermediate districts that were
not plaintiffs in the consolidated cases known as Durant v State of
Michigan; that, on or before March 2, 1998, submitted to the state
treasurer a board resolution waiving any right or interest the
district or intermediate district had or may have had in any claim
or litigation based on or arising out of any claim or potential
claim through September 30, 1997 that is or was similar to the
claims asserted by the plaintiffs in the consolidated cases known
as Durant v State of Michigan; and for which the total amount
listed in section 11h and paid under this section was less than
$75,000.00. For a district or intermediate district qualifying for
a payment under this subsection, the entire amount listed for the
district or intermediate district in section 11h was paid in a lump
sum on November 15, 1998 or on the next business day following that
date. The amounts paid under this subsection represent offers of
settlement and compromise of any claim or claims that were or could
have been asserted by these districts and intermediate districts,
as described in this subsection.
(3) This section does not create any obligation or liability of
this state to any district or intermediate district that does not
submit a waiver resolution described in this section. This
section, any other provision of this act, and section 353e of the
management and budget act, 1984 PA 431, MCL 18.1353e, are not
intended to admit liability or waive any defense that is or would
be available to this state or its agencies, employees, or agents in
any litigation or future litigation with a district or intermediate
district.
(4) The amount paid each fiscal year to each district or
intermediate district under subsection (1) shall be 1/20 of the
total amount listed in section 11h for each listed district or
intermediate district that qualifies for a payment under subsection
(1). The amounts listed in section 11h and paid in part under this
subsection and in a lump sum under subsection (2) are offers of
settlement and compromise to each of these districts or
intermediate districts to resolve, in their entirety, any claim or
claims that these districts or intermediate districts may have
asserted for violations of section 29 of article IX of the state
constitution of 1963 through September 30, 1997, which claims are
or were similar to the claims asserted by the plaintiffs in the
consolidated cases known as Durant v State of Michigan. This
section, any other provision of this act, and section 353e of the
management and budget act, 1984 PA 431, MCL 18.1353e, shall not be
construed to constitute an admission of liability to the districts
or intermediate districts listed in section 11h or a waiver of any
defense that is or would have been available to the state or its
agencies, employees, or agents in any litigation or future
litigation with a district or intermediate district.
(5) The entire amount of each payment under subsection (1) each
fiscal year shall be paid on November 15 of the applicable fiscal
year or on the next business day following that date.
(6) Funds paid to a district or intermediate district under
this section shall be used only for textbooks, electronic
instructional material, software, technology, infrastructure or
infrastructure improvements, school buses, school security,
training for technology, or to pay debt service on voter-approved
bonds issued by the district or intermediate district before the
effective date of this section. For intermediate districts only,
funds paid under this section may also be used for other
nonrecurring instructional expenditures including, but not limited
to, nonrecurring instructional expenditures for vocational
education, or for debt service for acquisition of technology for
academic support services. Funds received by an intermediate
district under this section may be used for projects conducted for
the benefit of its constituent districts at the discretion of the
intermediate board. To the extent payments under this section are
used by a district or intermediate district to pay debt service on
debt payable from millage revenues, and to the extent permitted by
law, the district or intermediate district may make a corresponding
reduction in the number of mills levied for that debt service.
(7) The resolution to be adopted and submitted by a district or
intermediate district under this section and section 11g shall read
as follows:
"Whereas, the board of ____________________ (name of district or
intermediate district) desires to settle and compromise, in their
entirety, any claim or claims that the district (or intermediate
district) has or had for violations of section 29 of article IX of
the state constitution of 1963, which claim or claims are or were
similar to the claims asserted by the plaintiffs in the
consolidated cases known as Durant v State of Michigan, Michigan
supreme court docket no. 104458-104492.
Whereas, the district (or intermediate district) agrees to
settle and compromise these claims for the consideration described
in sections 11f and 11g of the state school aid act of 1979, 1979
PA 94, MCL 388.1611f and 388.1611g, and in the amount specified for
the district (or intermediate district) in section 11h of the state
school aid act of 1979, 1979 PA 94, MCL 388.1611h.
Whereas, the board of _______________ (name of district or
intermediate district) is authorized to adopt this resolution.
Now, therefore, be it resolved as follows:
1. The board of ____________________ (name of district or
intermediate district) waives any right or interest it may have in
any claim or potential claim through September 30, 1997 relating to
the amount of funding the district or intermediate district is, or
may have been, entitled to receive under the state school aid act
of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, or any other source
of state funding, by reason of the application of section 29 of
article IX of the state constitution of 1963, which claims or
potential claims are or were similar to the claims asserted by the
plaintiffs in the consolidated cases known as Durant v State of
Michigan, Michigan supreme court docket no. 104458-104492.
2. The board of ____________________ (name of district or
intermediate district) directs its secretary to submit a certified
copy of this resolution to the state treasurer no later than 5 p.m.
eastern standard time on March 2, 1998, and agrees that it will not
take any action to amend or rescind this resolution.
3. The board of ____________________ (name of district or
intermediate district) expressly agrees and understands that, if it
takes any action to amend or rescind this resolution, the state,
its agencies, employees, and agents shall have available to them
any privilege, immunity, and/or defense that would otherwise have
been available had the claims or potential claims been actually
litigated in any forum.
4. This resolution is contingent on continued payments by the
state each fiscal year as determined under sections 11f and 11g of
the state school aid act of 1979, 1979 PA 94, MCL 388.1611f and
388.1611g. However, this resolution shall be an irrevocable waiver
of any claim to amounts actually received by the school district or
intermediate school district under sections 11f and 11g of the
state school aid act of 1979.".
Sec. 11g. (1) From the general
fund appropriation in section
11, there is allocated an
amount not to exceed $141,000.00
$34,960,000.00
for the
fiscal year ending September
30, 2005.
There is allocated an amount
not to exceed $35,000,000.00 September
30, 2006 and for each succeeding fiscal year through the fiscal
year ending September 30, 2013. Payments under this section will
cease after September 30, 2013. These allocations are for paying
the amounts described in subsection (3) to districts and
intermediate districts, other than those receiving a lump sum
payment under section 11f(2), that were not plaintiffs in the
consolidated cases known as Durant v State of Michigan, Michigan
supreme court docket no. 104458-104492 and that, on or before March
2, 1998, submitted to the state treasurer a waiver resolution
described in section 11f. The amounts paid under this section
represent offers of settlement and compromise of any claim or
claims that were or could have been asserted by these districts and
intermediate districts, as described in this section.
(2) This section does not create any obligation or liability of
this state to any district or intermediate district that does not
submit a waiver resolution described in section 11f. This section,
any other provision of this act, and section 353e of the management
and budget act, 1984 PA 431, MCL 18.1353e, are not intended to
admit liability or waive any defense that is or would be available
to this state or its agencies, employees, or agents in any
litigation or future litigation with a district or intermediate
district regarding these claims or potential claims.
(3) The amount paid each fiscal year to each district or
intermediate district under this section shall be the sum of the
following:
(a) 1/30 of the total amount listed in section 11h for the
district or intermediate district.
(b) If the district or intermediate district borrows money and
issues bonds under section 11i, an additional amount in each fiscal
year calculated by the department of treasury that, when added to
the amount described in subdivision (a), will cause the net present
value as of November 15, 1998 of the total of the 15 annual
payments made to the district or intermediate district under this
section, discounted at a rate as determined by the state treasurer,
to equal the amount of the bonds issued by that district or
intermediate district under section 11i and that will result in the
total payments made to all districts and intermediate districts in
each fiscal year under this section being no more than the amount
appropriated under this section in each fiscal year.
(4) The entire amount of each payment under this section each
fiscal year shall be paid on May 15 of the applicable fiscal year
or on the next business day following that date. If a district or
intermediate district borrows money and issues bonds under section
11i, the district or intermediate district shall use funds received
under this section to pay debt service on bonds issued under
section 11i. If a district or intermediate district does not
borrow money and issue bonds under section 11i, the district or
intermediate district shall use funds received under this section
only for the following purposes, in the following order of
priority:
(a) First, to pay debt service on voter-approved bonds issued
by the district or intermediate district before the effective date
of this section.
(b) Second, to pay debt service on other limited tax
obligations.
(c) Third, for deposit into a sinking fund established by the
district or intermediate district under the revised school code.
(5) To the extent payments under this section are used by a
district or intermediate district to pay debt service on debt
payable from millage revenues, and to the extent permitted by law,
the district or intermediate district may make a corresponding
reduction in the number of mills levied for debt service.
(6) A district or intermediate district may pledge or assign
payments under this section as security for bonds issued under
section 11i, but shall not otherwise pledge or assign payments
under this section.
Sec. 11j. From the proceeds of capitalization of the school
bond loan fund revolving fund appropriation in section 11, there is
allocated an amount not to exceed $41,100,000.00 for 2004-2005, and
there is allocated an amount not to exceed $44,500,000.00 for 2005-
2006 for payments to the school loan bond redemption fund in the
department of treasury on behalf of districts and intermediate
districts. Notwithstanding
section 11 or any other provision of
this act, funds allocated
under this section are not subject to
proration and shall be paid
in full.
Sec. 18. (1) Except as provided in another section of this act,
each district or other entity shall apply the money received by the
district or entity under this act to salaries and other
compensation of teachers and other employees, tuition,
transportation, lighting, heating, ventilation, water service, the
purchase of textbooks which are designated by the board to be used
in the schools under the board's charge, other supplies, and any
other school operating expenditures defined in section 7. However,
not more than 20% of the total amount received by a district under
article 2 or intermediate district under article 8 may be
transferred by the board to either the capital projects fund or to
the debt retirement fund for debt service. The money shall not be
applied or taken for a purpose other than as provided in this
section. The department shall determine the reasonableness of
expenditures and may withhold from a recipient of funds under this
act the apportionment otherwise due for the fiscal year following
the discovery by the department of a violation by the recipient.
(2) For the purpose of determining the reasonableness of
expenditures and whether a violation of this act has occurred, the
department shall require that each district and intermediate
district have an audit of the district's or intermediate district's
financial and pupil accounting records conducted at least annually
at the expense of the district or intermediate district, as
applicable, by a certified public accountant or by the intermediate
district superintendent, as may be required by the department, or
in the case of a district of the first class by a certified public
accountant, the intermediate superintendent, or the auditor general
of the city. An intermediate district's annual financial audit
shall be accompanied by the intermediate district's pupil
accounting procedures report. A district's or intermediate
district's annual financial audit shall include an analysis of the
financial and pupil accounting data used as the basis for
distribution of state school aid. The pupil accounting records and
reports, audits, and management letters are subject to requirements
established in the auditing and accounting manuals approved and
published by the department. Except as otherwise provided in this
subsection, a district shall file the annual financial audit
reports with the intermediate district not later than 120 days
after the end of each school fiscal year and the intermediate
district shall forward the annual financial audit reports for its
constituent districts and for the intermediate district, and the
pupil accounting procedures report for the pupil membership count
day and supplemental count day, to the department not later than
November 15 of each year. The annual financial audit reports and
pupil accounting procedures reports shall be available to the
public in compliance with the freedom of information act, 1976 PA
442, MCL 15.231 to 15.246. Not later than December 1 of each year,
the department shall notify the state budget director and the
legislative appropriations subcommittees responsible for review of
the school aid budget of districts and intermediate districts that
have not filed an annual financial audit and pupil accounting
procedures report required under this section for the school year
ending in the immediately preceding fiscal year.
(3) By November 15 of each year, each district and intermediate
district shall submit to the center, in a manner prescribed by the
center, annual comprehensive financial data consistent with
accounting manuals and charts of accounts approved and published by
the department. For Effective with the report due on November 15,
2006, for an intermediate district, the report shall also contain
the website address where the department can access the report
required under section 620 of the revised school code, MCL 380.620.
(4) By September 30 of each year, each district and
intermediate district shall file with the department the special
education actual cost report, known as "SE-4096", on a form and in
the manner prescribed by the department.
(5) By October 7 of each year, each district and intermediate
district shall file with the department the transportation
expenditure report, known as "SE-4094", on a form and in the manner
prescribed by the department.
(6) Not later than July 1, 1999, the department shall approve
and publish pupil accounting and pupil auditing manuals. The
department shall review those manuals at least annually and shall
periodically update those manuals to reflect changes in this act.
The pupil accounting manuals in effect for the 1996-97 school year,
including subsequent revisions issued by the superintendent, shall
be the interim manuals in effect until new manuals are approved and
published. However, the clarification of class-by-class accounting
provided in the department's April 15, 1998 memorandum on pupil
accounting procedures shall be excluded from the interim manuals.
(7) If a district that is a public school academy purchases
property using money received under this act, the public school
academy shall retain ownership of the property unless the public
school academy sells the property at fair market value.
(8) If a district or intermediate district does not comply with
subsection (2), (3), (4), or (5), the department shall withhold all
state school aid due to the district or intermediate district under
this act, beginning with the next payment due to the district or
intermediate district, until the district or intermediate district
complies with subsections (2), (3), (4), and (5). If the district
or intermediate district does not comply with subsections (2), (3),
(4), and (5) by the end of the fiscal year, the district or
intermediate district forfeits the amount withheld.
Sec. 19. (1) A district shall comply with any requirements of
sections 1204a, 1277, 1278, and 1280 of the revised school code,
MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly referred
to as "public act 25 of 1990" that are not also required by the no
child left behind act of 2001, Public Law 107-110, as determined by
the department.
(2) Each district and intermediate district shall provide to
the department, in a form and manner prescribed by the department,
information necessary for the development of an annual progress
report on the required implementation of sections 1204a, 1277,
1278, and 1280 of the revised school code, MCL 380.1204a, 380.1277,
380.1278, and 380.1280, commonly referred to as "public act 25 of
1990".
(3) A district or intermediate district shall comply with all
applicable reporting requirements specified in state and federal
law. Data provided to the center, in a form and manner prescribed
by the center, shall be aggregated and disaggregated as required by
state and federal law.
(4) Each district shall furnish to the center not later than 7
weeks after the pupil membership count day, in a manner prescribed
by the center, the information necessary for the preparation of the
district and high school graduation report. The center shall
calculate an annual graduation and pupil dropout rate for each high
school, each district, and this state, in compliance with
nationally recognized standards for these calculations. The center
shall report all graduation and dropout rates to the senate and
house education committees and appropriations committees, the state
budget director, and the
department not later than June 1 of each
year. 30 days after the publication of the list described in
subsection (8).
(5) A By the first business day in December and by
June 30 of
each year, a district shall furnish to the center, in a manner
prescribed by the center, information related to educational
personnel as necessary for reporting required by state and federal
law.
(6) A By June 30 of each year, a district
shall furnish to the
center, in a manner prescribed by the center, information related
to safety practices and criminal incidents as necessary for
reporting required by state and federal law.
(7) If a district or intermediate district fails to meet the
requirements of subsection (2), (3), (4), (5), or (6), the
department shall withhold 5% of the total funds for which the
district or intermediate district qualifies under this act until
the district or intermediate district complies with all of those
subsections. If the district or intermediate district does not
comply with all of those subsections by the end of the fiscal year,
the department shall place the amount withheld in an escrow account
until the district or intermediate district complies with all of
those subsections.
(8) Before publishing a list of schools or districts determined
to have failed to make adequate yearly progress as required by the
federal no child left behind act of 2001, Public Law 107-110, the
department shall allow a school or district to appeal that
determination. The department shall consider and act upon the
appeal within 30 days after it is submitted and shall not publish
the list until after all appeals have been considered and decided.
Sec. 20. (1) For 2003-2004
and for 2004-2005 2005-2006,
the
basic foundation allowance
is $6,700.00 $6,875.00 per
membership
pupil.
(2) The amount of each district's foundation allowance shall be
calculated as provided in this section, using a basic foundation
allowance in the amount specified in subsection (1).
(3) Except as otherwise provided in this section, the amount of
a district's foundation allowance shall be calculated as follows,
using in all calculations the total amount of the district's
foundation allowance as calculated before any proration:
(a) Except as otherwise provided in this subsection, for a
district that in the immediately preceding state fiscal year had a
foundation allowance in an amount at least equal to the amount of
the basic foundation allowance for the immediately preceding state
fiscal year, the district shall receive a foundation allowance in
an amount equal to the sum of the district's foundation allowance
for the immediately preceding state fiscal year plus the dollar
amount of the adjustment from the immediately preceding state
fiscal year to the current state fiscal year in the basic
foundation allowance. However, for 2002-2003, the foundation
allowance for a district under this subdivision is an amount equal
to the sum of the district's foundation allowance for the
immediately preceding state fiscal year plus $200.00.
(b) For a district that in the 1994-95 state fiscal year had a
foundation allowance greater than $6,500.00, the district's
foundation allowance is an amount equal to the sum of the
district's foundation allowance for the immediately preceding state
fiscal year plus the lesser of the increase in the basic foundation
allowance for the current state fiscal year, as compared to the
immediately preceding state fiscal year, or the product of the
district's foundation allowance for the immediately preceding state
fiscal year times the percentage increase in the United States
consumer price index in the calendar year ending in the immediately
preceding fiscal year as reported by the May revenue estimating
conference conducted under section 367b of the management and
budget act, 1984 PA 431, MCL 18.1367b. For 2002-2003, for a
district that in the 1994-95 state fiscal year had a foundation
allowance greater than $6,500.00, the district's foundation
allowance is an amount equal to the sum of the district's
foundation allowance for the immediately preceding state fiscal
year plus the lesser of $200.00 or the product of the district's
foundation allowance for the immediately preceding state fiscal
year times the percentage increase in the United States consumer
price index in the calendar year ending in the immediately
preceding fiscal year as reported by the May revenue estimating
conference conducted under section 367b of the management and
budget act, 1984 PA 431, MCL 18.1367b.
(c) For a district that has a foundation allowance that is not
a whole dollar amount, the district's foundation allowance shall be
rounded up to the nearest whole dollar.
(d) For a district that received a payment under former section
22c for 2001-2002, the district's 2001-2002 foundation allowance
shall be considered to have been an amount equal to the sum of the
district's actual 2001-2002 foundation allowance as otherwise
calculated under this section plus the per pupil amount of the
district's equity payment for 2001-2002 under former section 22c.
(4) Except as otherwise provided in this subsection, the state
portion of a district's foundation allowance is an amount equal to
the district's foundation allowance or $6,500.00, whichever is
less, minus the difference between the product of the taxable value
per membership pupil of all property in the district that is not a
principal residence or qualified agricultural property times the
lesser of 18 mills or the number of mills of school operating taxes
levied by the district in 1993-94 and the quotient of the ad
valorem property tax revenue of the district captured under 1975 PA
197, MCL 125.1651 to 125.1681, the tax increment finance authority
act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development
financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651
to 125.2672, divided by the district's membership excluding special
education pupils. For a district described in subsection (3)(b),
the state portion of the district's foundation allowance is an
amount equal to $6,962.00 plus the difference between the
district's foundation allowance for the current state fiscal year
and the district's foundation allowance for 1998-99, minus the
difference between the product of the taxable value per membership
pupil of all property in the district that is not a principal
residence or qualified agricultural property times the lesser of 18
mills or the number of mills of school operating taxes levied by
the district in 1993-94 and the quotient of the ad valorem property
tax revenue of the district captured under 1975 PA 197, MCL
125.1651 to 125.1681, the tax increment finance authority act, 1980
PA 450, MCL 125.1801 to 125.1830, the local development financing
act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,
divided by the district's membership excluding special education
pupils. For a district that has a millage reduction required under
section 31 of article IX of the state constitution of 1963, the
state portion of the district's foundation allowance shall be
calculated as if that reduction did not occur. The $6,500.00
amount prescribed in this subsection shall be adjusted each year by
an amount equal to the dollar amount of the difference between the
basic foundation allowance for the current state fiscal year and
$5,000.00, minus $200.00.
(5) The allocation calculated under this section for a pupil
shall be based on the foundation allowance of the pupil's district
of residence. However, for a pupil enrolled in a district other
than the pupil's district of residence, if the foundation allowance
of the pupil's district of residence has been adjusted pursuant to
subsection (19), (17), the allocation calculated
under this section
shall not include the
adjustment described in subsection (19).
(17). For a pupil enrolled pursuant to section 105 or 105c in a
district other than the pupil's district of residence, the
allocation calculated under this section shall be based on the
lesser of the foundation allowance of the pupil's district of
residence or the foundation allowance of the educating district.
For a pupil in membership in a K-5, K-6, or K-8 district who is
enrolled in another district in a grade not offered by the pupil's
district of residence, the allocation calculated under this section
shall be based on the foundation allowance of the educating
district if the educating district's foundation allowance is
greater than the foundation allowance of the pupil's district of
residence. The calculation under this subsection shall take into
account a district's per pupil allocation under section 20j(2).
(6) Subject to subsection (7) and section 22b(3) and except as
otherwise provided in this subsection, for pupils in membership,
other than special education pupils, in a public school academy or
a university school, the allocation calculated under this section
is an amount per membership pupil other than special education
pupils in the public school academy or university school equal to
the sum of the local school operating revenue per membership pupil
other than special education pupils for the district in which the
public school academy or university school is located and the state
portion of that district's foundation allowance, or the sum of the
basic foundation allowance under subsection (1) plus $300.00,
whichever is less. Notwithstanding section 101(2), for a public
school academy that begins operations after the pupil membership
count day, the amount per membership pupil calculated under this
subsection shall be adjusted by multiplying that amount per
membership pupil by the number of hours of pupil instruction
provided by the public school academy after it begins operations,
as determined by the department, divided by the minimum number of
hours of pupil instruction required under section 101(3). The
result of this calculation shall not exceed the amount per
membership pupil otherwise calculated under this subsection.
(7) If more than 25% of the pupils residing within a district
are in membership in 1 or more public school academies located in
the district, then the amount per membership pupil calculated under
this section for a public school academy located in the district
shall be reduced by an amount equal to the difference between the
product of the taxable value per membership pupil of all property
in the district that is not a principal residence or qualified
agricultural property times the lesser of 18 mills or the number of
mills of school operating taxes levied by the district in 1993-94
and the quotient of the ad valorem property tax revenue of the
district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the
tax increment finance authority act, 1980 PA 450, MCL 125.1801 to
125.1830, the local development financing act, 1986 PA 281, MCL
125.2151 to 125.2174, or the brownfield redevelopment financing
act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the
district's membership excluding special education pupils, in the
school fiscal year ending in the current state fiscal year,
calculated as if the resident pupils in membership in 1 or more
public school academies located in the district were in membership
in the district. In order to receive state school aid under this
act, a district described in this subsection shall pay to the
authorizing body that is the fiscal agent for a public school
academy located in the district for forwarding to the public school
academy an amount equal to that local school operating revenue per
membership pupil for each resident pupil in membership other than
special education pupils in the public school academy, as
determined by the department.
(8) If a district does not receive an amount calculated under
subsection (9); if the number of mills the district may levy on a
principal residence and qualified agricultural property under
section 1211(1) of the revised school code, MCL 380.1211, is 0.5
mills or less; and if the district elects not to levy those mills,
the district instead shall receive a separate supplemental amount
calculated under this subsection in an amount equal to the amount
the district would have received had it levied those mills, as
determined by the department of treasury. A district shall not
receive a separate supplemental amount calculated under this
subsection for a fiscal year unless in the calendar year ending in
the fiscal year the district levies 18 mills or the number of mills
of school operating taxes levied by the district in 1993, whichever
is less, on property that is not a principal residence or qualified
agricultural property.
(9) For a district that had combined state and local revenue
per membership pupil in the 1993-94 state fiscal year of more than
$6,500.00 and that had fewer than 350 pupils in membership, if the
district elects not to reduce the number of mills from which a
principal residence and qualified agricultural property are exempt
and not to levy school operating taxes on a principal residence and
qualified agricultural property as provided in section 1211(1) of
the revised school code, MCL 380.1211, and not to levy school
operating taxes on all property as provided in section 1211(2) of
the revised school code, MCL 380.1211, there is calculated under
this subsection for 1994-95 and each succeeding fiscal year a
separate supplemental amount in an amount equal to the amount the
district would have received
per membership pupil had it levied
school operating taxes on a principal residence and qualified
agricultural property at the rate authorized for the district under
section 1211(1) of the revised school code, MCL 380.1211, and
levied school operating taxes on all property at the rate
authorized for the district under section 1211(2) of the revised
school code, MCL 380.1211, as determined by the department of
treasury. If in the calendar year ending in the fiscal year a
district does not levy 18 mills or the number of mills of school
operating taxes levied by the district in 1993, whichever is less,
on property that is not a principal residence or qualified
agricultural property, the amount calculated under this subsection
will be reduced by the same percentage as the millage actually
levied compares to the 18 mills or the number of mills levied in
1993, whichever is less.
(10) Subject to subsection (4), for a district that is formed
or reconfigured after June 1, 2002 by consolidation of 2 or more
districts or by annexation, the resulting district's foundation
allowance under this section beginning after the effective date of
the consolidation or annexation shall be the average of the
foundation allowances of each of the original or affected
districts, calculated as provided in this section, weighted as to
the percentage of pupils in total membership in the resulting
district who reside in the geographic area of each of the original
or affected districts. The calculation under this subsection shall
take into account a district's per pupil allocation under section
20j(2).
(11) Each fraction used in making calculations under this
section shall be rounded to the fourth decimal place and the dollar
amount of an increase in the basic foundation allowance shall be
rounded to the nearest whole dollar.
(12) State payments related to payment of the foundation
allowance for a special education pupil are not calculated under
this section but are instead calculated under section 51a.
(13) To assist the legislature in determining the basic
foundation allowance for the subsequent state fiscal year, each
revenue estimating conference conducted under section 367b of the
management and budget act, 1984 PA 431, MCL 18.1367b, shall
calculate a pupil membership factor, a revenue adjustment factor,
and an index as follows:
(a) The pupil membership factor shall be computed by dividing
the estimated membership in the school year ending in the current
state fiscal year, excluding intermediate district membership, by
the estimated membership for the school year ending in the
subsequent state fiscal year, excluding intermediate district
membership. If a consensus membership factor is not determined at
the revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(b) The revenue adjustment factor shall be computed by dividing
the sum of the estimated total state school aid fund revenue for
the subsequent state fiscal year plus the estimated total state
school aid fund revenue for the current state fiscal year, adjusted
for any change in the rate or base of a tax the proceeds of which
are deposited in that fund and excluding money transferred into
that fund from the countercyclical budget and economic
stabilization fund under section 353e of the management and budget
act, 1984 PA 431, MCL 18.1353e, by the sum of the estimated total
school aid fund revenue for the current state fiscal year plus the
estimated total state school aid fund revenue for the immediately
preceding state fiscal year, adjusted for any change in the rate or
base of a tax the proceeds of which are deposited in that fund. If
a consensus revenue factor is not determined at the revenue
estimating conference, the principals of the revenue estimating
conference shall report their estimates to the house and senate
subcommittees responsible for school aid appropriations not later
than 7 days after the conclusion of the revenue conference.
(c) The index shall be calculated by multiplying the pupil
membership factor by the revenue
adjustment factor. However, for
2004-2005, the index shall
be 1.00.
If a consensus index is not
determined at the revenue estimating conference, the principals of
the revenue estimating conference shall report their estimates to
the house and senate subcommittees responsible for school aid
appropriations not later than 7 days after the conclusion of the
revenue conference.
(14) If the principals
at the revenue estimating conference
reach a consensus on the
index described in subsection (13)(c), the
basic foundation allowance
for the subsequent state fiscal year
shall be at least the amount
of that consensus index multiplied by
the basic foundation
allowance specified in subsection (1).
(15) If at the January
revenue estimating conference it is
estimated that pupil
membership, excluding intermediate district
membership, for the
subsequent state fiscal year will be greater
than 101% of the pupil
membership, excluding intermediate district
membership, for the current
state fiscal year, then it is the
intent of the legislature
that the executive budget proposal for
the school aid budget for
the subsequent state fiscal year include
a general fund/general
purpose allocation sufficient to support the
membership in excess of 101%
of the current year pupil membership.
(14)
(16) For a district that had
combined state and local
revenue per membership pupil in the 1993-94 state fiscal year of
more than $6,500.00, that had fewer than 7 pupils in membership in
the 1993-94 state fiscal year, that has at least 1 child educated
in the district in the current state fiscal year, and that levies
the number of mills of school operating taxes authorized for the
district under section 1211 of the revised school code, MCL
380.1211, a minimum amount of combined state and local revenue
shall be calculated for the district as provided under this
subsection. The minimum amount of combined state and local revenue
for 1999-2000 shall be $67,000.00 plus the district's additional
expenses to educate pupils in grades 9 to 12 educated in other
districts as determined and allowed by the department. The minimum
amount of combined state and local revenue under this subsection,
before adding the additional expenses, shall increase each fiscal
year by the same percentage increase as the percentage increase in
the basic foundation allowance from the immediately preceding
fiscal year to the current fiscal year. The state portion of the
minimum amount of combined state and local revenue under this
subsection shall be calculated by subtracting from the minimum
amount of combined state and local revenue under this subsection
the sum of the district's local school operating revenue and an
amount equal to the product of the sum of the state portion of the
district's foundation allowance plus the amount calculated under
section 20j times the district's membership. As used in this
subsection, "additional expenses" means the district's expenses for
tuition or fees, not to exceed $6,500.00 as adjusted each year by
an amount equal to the dollar amount of the difference between the
basic foundation allowance for the current state fiscal year and
$5,000.00, minus $200.00, plus a room and board stipend not to
exceed $10.00 per school day for each pupil in grades 9 to 12
educated in another district, as approved by the department.
(15) (17) For a district in
which 7.75 mills levied in 1992 for
school operating purposes in the 1992-93 school year were not
renewed in 1993 for school operating purposes in the 1993-94 school
year, the district's combined state and local revenue per
membership pupil shall be recalculated as if that millage reduction
did not occur and the district's foundation allowance shall be
calculated as if its 1994-95 foundation allowance had been
calculated using that recalculated 1993-94 combined state and local
revenue per membership pupil as a base. A district is not entitled
to any retroactive payments for fiscal years before 2000-2001 due
to this subsection.
(16) (18) For a district in
which an industrial facilities
exemption certificate that abated taxes on property with a state
equalized valuation greater than the total state equalized
valuation of the district at the time the certificate was issued or
$700,000,000.00, whichever is greater, was issued under 1974 PA
198, MCL 207.551 to 207.572, before the calculation of the
district's 1994-95 foundation allowance, the district's foundation
allowance for 2002-2003 is an amount equal to the sum of the
district's foundation allowance for 2002-2003, as otherwise
calculated under this section, plus $250.00.
(17) (19) For a district
that received a grant under former
section 32e for 2001-2002, the district's foundation allowance for
2002-2003 and each succeeding fiscal year shall be adjusted to be
an amount equal to the sum of the district's foundation allowance,
as otherwise calculated under this section, plus the quotient of
100% of the amount of the grant award to the district for 2001-2002
under former section 32e divided by the number of pupils in the
district's membership for 2001-2002 who were residents of and
enrolled in the district. Except as otherwise provided in this
subsection, a district qualifying for a foundation allowance
adjustment under this subsection shall use the funds resulting from
this adjustment for at least 1 of grades K to 3 for purposes
allowable under former section 32e as in effect for 2001-2002. For
an individual school or schools operated by a district qualifying
for a foundation allowance under this subsection that have been
determined by the department to meet the adequate yearly progress
standards of the federal no child left behind act of 2001, Public
Law 107-110, in both mathematics and English language arts at all
applicable grade levels for all applicable subgroups, the district
may submit to the department an application for flexibility in
using the funds resulting from this adjustment that are
attributable to the pupils in the school or schools. The
application shall identify the affected school or schools and the
affected funds and shall contain a plan for using the funds for
specific purposes identified by the district that are designed to
reduce class size, but that may be different from the purposes
otherwise allowable under this subsection. The department shall
approve the application if the department determines that the
purposes identified in the plan are reasonably designed to reduce
class size. If the department does not act to approve or
disapprove an application within 30 days after it is submitted to
the department, the application is considered to be approved. If
an application for flexibility in using the funds is approved, the
district may use the funds identified in the application for any
purpose identified in the plan.
(18) (20) For a district
that is a qualifying school district
with a had a school reform board in place under part 5a of the
revised school code, MCL 380.371 to 380.376 in 2004-2005, and has
fewer pupils in membership than it had in the previous year, the
district's foundation
allowance for 2002-2003 2005-2006
shall be
adjusted to be an amount equal to the sum of the district's
foundation allowance, as otherwise calculated under this section,
plus the quotient of $15,000,000.00 divided by the district's
membership for 2002-2003
2005-2006. If a
district ceases to meet
the requirements of this
subsection, the department shall adjust
the district's foundation
allowance in effect at that time based on
a 2002-2003 foundation
allowance for the district that does not
include the 2002-2003
adjustment under this subsection.
(19) (21) Payments to
districts, university schools, or public
school academies shall not be made under this section. Rather, the
calculations under this section shall be used to determine the
amount of state payments under section 22b.
(20) (22) If an amendment
to section 2 of article VIII of the
state constitution of 1963 allowing state aid to some or all
nonpublic schools is approved by the voters of this state, each
foundation allowance or per pupil payment calculation under this
section may be reduced.
(21) (23) As used in this
section:
(a) "Combined state and local revenue" means the aggregate of
the district's state school aid received by or paid on behalf of
the district under this section and the district's local school
operating revenue.
(b) "Combined state and local revenue per membership pupil"
means the district's combined state and local revenue divided by
the district's membership excluding special education pupils.
(c) "Current state fiscal year" means the state fiscal year for
which a particular calculation is made.
(d) "Immediately preceding state fiscal year" means the state
fiscal year immediately preceding the current state fiscal year.
(e) "Local school operating revenue" means school operating
taxes levied under section 1211 of the revised school code, MCL
380.1211.
(f) "Local school operating revenue per membership pupil" means
a district's local school operating revenue divided by the
district's membership excluding special education pupils.
(g) "Membership" means the definition of that term under
section 6 as in effect for the particular fiscal year for which a
particular calculation is made.
(h) "Principal residence" and "qualified agricultural property"
mean those terms as defined in section 7dd of the general property
tax act, 1893 PA 206, MCL 211.7dd.
(i) "School operating purposes" means the purposes included in
the operation costs of the district as prescribed in sections 7 and
18.
(j) "School operating taxes" means local ad valorem property
taxes levied under section 1211 of the revised school code, MCL
380.1211, and retained for school operating purposes.
(k) "Taxable value per membership pupil" means taxable value,
as certified by the department of treasury, for the calendar year
ending in the current state fiscal year divided by the district's
membership excluding special education pupils for the school year
ending in the current state fiscal year.
Sec. 20d. In making the final determination required under
former section 20a of a district's combined state and local revenue
per membership pupil in 1993-94 and in making calculations under
section 20 for 2005-2006, the department and the department of
treasury shall comply with all of the following:
(a) For a district that had combined state and local revenue
per membership pupil in the 1994-95 state fiscal year of $6,500.00
or more and served as a fiscal agent for a state board designated
area vocational education center in the 1993-94 school year, total
state school aid received by or paid on behalf of the district
pursuant to this act in 1993-94 shall exclude payments made under
former section 146 and under section 147 on behalf of the
district's employees who provided direct services to the area
vocational education center. Not later than June 30, 1996, the
department shall make an adjustment under this subdivision to the
district's combined state and local revenue per membership pupil in
the 1994-95 state fiscal year and the department of treasury shall
make a final certification of the number of mills that may be
levied by the district under section 1211 of the revised school
code, MCL 380.1211, as a result of the adjustment under this
subdivision.
(b) If a district had an adjustment made to its 1993-94 total
state school aid that excluded payments made under former section
146 and under section 147 on behalf of the district's employees who
provided direct services for intermediate district center programs
operated by the district under article 5, if nonresident pupils
attending the center programs were included in the district's
membership for purposes of calculating the combined state and local
revenue per membership pupil for 1993-94, and if there is a signed
agreement by all constituent districts of the intermediate district
that an adjustment under this subdivision shall be made, the
foundation allowances for 1995-96 and 1996-97 of all districts that
had pupils attending the intermediate district center program
operated by the district that had the adjustment shall be
calculated as if their combined state and local revenue per
membership pupil for 1993-94 included resident pupils attending the
center program and excluded nonresident pupils attending the center
program.
Sec. 20j. (1) Foundation allowance supplemental payments for
2004-2005 2005-2006 to districts that in the 1994-95 state fiscal
year had a foundation allowance greater than $6,500.00 shall be
calculated under this section.
(2) The per pupil allocation to each district under this
section shall be the difference between the dollar amount of the
adjustment from the 1998-99 state fiscal year to the current state
fiscal year in the basic foundation allowance minus the dollar
amount of the adjustment from the 1998-99 state fiscal year to the
current state fiscal year in the district's foundation allowance.
(3) If a district's local revenue per pupil does not exceed the
sum of its foundation allowance under section 20 plus the per pupil
allocation under subsection (2), the total payment to the district
calculated under this section shall be the product of the per pupil
allocation under subsection (2) multiplied by the district's
membership excluding special education pupils. If a district's
local revenue per pupil exceeds the foundation allowance under
section 20 but does not exceed the sum of the foundation allowance
under section 20 plus the per pupil allocation under subsection
(2), the total payment to the district calculated under this
section shall be the product of the difference between the sum of
the foundation allowance under section 20 plus the per pupil
allocation under subsection (2) minus the local revenue per pupil
multiplied by the district's membership excluding special education
pupils. If a district's local revenue per pupil exceeds the sum of
the foundation allowance under section 20 plus the per pupil
allocation under subsection (2), there is no payment calculated
under this section for the district.
(4) Payments to districts shall not be made under this section.
Rather, the calculations under this section shall be made and used
to determine the amount of state payments under section 22b.
Sec. 22a. (1) From the appropriation in section 11, there is
allocated an amount not to
exceed $6,765,300,000.00 for 2003-2004
and an amount not to exceed
$6,678,977,800.00
$6,633,600,000.00 for
2004-2005 and an amount not to exceed $6,471,000,000.00 for 2005-
2006 for payments to districts, qualifying university schools, and
qualifying public school academies to guarantee each district,
qualifying university school, and qualifying public school academy
an amount equal to its 1994-95 total state and local per pupil
revenue for school operating purposes under section 11 of article
IX of the state constitution of 1963. Pursuant to section 11 of
article IX of the state constitution of 1963, this guarantee does
not apply to a district in a year in which the district levies a
millage rate for school district operating purposes less than it
levied in 1994. However, subsection (2) applies to calculating the
payments under this section. Funds allocated under this section
that are not expended in the state fiscal year for which they were
allocated, as determined by the department, may be used to
supplement the allocations under sections 22b and 51c in order to
fully fund those calculated allocations for the same fiscal year.
(2) To ensure that a district receives an amount equal to the
district's 1994-95 total state and local per pupil revenue for
school operating purposes, there is allocated to each district a
state portion of the district's 1994-95 foundation allowance in an
amount calculated as follows:
(a) Except as otherwise provided in this subsection, the state
portion of a district's 1994-95 foundation allowance is an amount
equal to the district's 1994-95 foundation allowance or $6,500.00,
whichever is less, minus the difference between the product of the
taxable value per membership pupil of all property in the district
that is not a homestead or qualified agricultural property times
the lesser of 18 mills or the number of mills of school operating
taxes levied by the district in 1993-94 and the quotient of the ad
valorem property tax revenue of the district captured under 1975 PA
197, MCL 125.1651 to 125.1681, the tax increment finance authority
act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development
financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651
to 125.2672, divided by the district's membership. For a district
that has a millage reduction required under section 31 of article
IX of the state constitution of 1963, the state portion of the
district's foundation allowance shall be calculated as if that
reduction did not occur.
(b) For a district that had a 1994-95 foundation allowance
greater than $6,500.00, the state payment under this subsection
shall be the sum of the amount calculated under subdivision (a)
plus the amount calculated under this subdivision. The amount
calculated under this subdivision shall be equal to the difference
between the district's 1994-95 foundation allowance minus $6,500.00
and the current year hold harmless school operating taxes per
pupil. If the result of the calculation under subdivision (a) is
negative, the negative amount shall be an offset against any state
payment calculated under this subdivision. If the result of a
calculation under this subdivision is negative, there shall not be
a state payment or a deduction under this subdivision. The taxable
values per membership pupil used in the calculations under this
subdivision are as adjusted by ad valorem property tax revenue
captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax
increment finance authority act, 1980 PA 450, MCL 125.1801 to
125.1830, the local development financing act, 1986 PA 281, MCL
125.2151 to 125.2174, or the brownfield redevelopment financing
act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the
district's membership.
(3) Beginning in 2003-2004, for pupils in membership in a
qualifying public school academy or qualifying university school,
there is allocated under this section to the authorizing body that
is the fiscal agent for the qualifying public school academy for
forwarding to the qualifying public school academy, or to the board
of the public university operating the qualifying university
school, an amount equal to the 1994-95 per pupil payment to the
qualifying public school academy or qualifying university school
under section 20.
(4) A district, qualifying university school, or qualifying
public school academy may use funds allocated under this section in
conjunction with any federal funds for which the district,
qualifying university school, or qualifying public school academy
otherwise would be eligible.
(5) For a district that is formed or reconfigured after June 1,
2000 by consolidation of 2 or more districts or by annexation, the
resulting district's 1994-95 foundation allowance under this
section beginning after the effective date of the consolidation or
annexation shall be the average of the 1994-95 foundation
allowances of each of the original or affected districts,
calculated as provided in this section, weighted as to the
percentage of pupils in total membership in the resulting district
in the state fiscal year in which the consolidation takes place who
reside in the geographic area of each of the original districts.
If an affected district's 1994-95 foundation allowance is less than
the 1994-95 basic foundation allowance, the amount of that
district's 1994-95 foundation allowance shall be considered for the
purpose of calculations under this subsection to be equal to the
amount of the 1994-95 basic foundation allowance.
(6) As used in this section:
(a) "1994-95 foundation allowance" means a district's 1994-95
foundation allowance calculated and certified by the department of
treasury or the superintendent under former section 20a as enacted
in 1993 PA 336 and as amended by 1994 PA 283.
(b) "Current state fiscal year" means the state fiscal year for
which a particular calculation is made.
(c) "Current year hold harmless school operating taxes per
pupil" means the per pupil revenue generated by multiplying a
district's 1994-95 hold harmless millage by the district's current
year taxable value per membership pupil.
(d) "Hold harmless millage" means, for a district with a 1994-
95 foundation allowance greater than $6,500.00, the number of mills
by which the exemption from the levy of school operating taxes on a
homestead and qualified agricultural property could be reduced as
provided in section 1211(1) of the revised school code, MCL
380.1211, and the number of mills of school operating taxes that
could be levied on all property as provided in section 1211(2) of
the revised school code, MCL 380.1211, as certified by the
department of treasury for the 1994 tax year.
(e) "Homestead" means that term as defined in section 1211 of
the revised school code, MCL 380.1211.
(f) "Membership" means the definition of that term under
section 6 as in effect for the particular fiscal year for which a
particular calculation is made.
(g) "Qualified agricultural property" means that term as
defined in section 1211 of the revised school code, MCL 380.1211.
(h) "Qualifying public school academy" means a public school
academy that was in operation in the 1994-95 school year and is in
operation in the current state fiscal year.
(i) "Qualifying university school" means a university school
that was in operation in the 1994-95 school year and is in
operation in the current fiscal year.
(j) "School operating taxes" means local ad valorem property
taxes levied under section 1211 of the revised school code, MCL
380.1211, and retained for school operating purposes.
(k) "Taxable value per membership pupil" means each of the
following divided by the district's membership:
(i) For the number of mills by which the exemption from the levy
of school operating taxes on a homestead and qualified agricultural
property may be reduced as provided in section 1211(1) of the
revised school code, MCL 380.1211, the taxable value of homestead
and qualified agricultural property for the calendar year ending in
the current state fiscal year.
(ii) For the number of mills of school operating taxes that may
be levied on all property as provided in section 1211(2) of the
revised school code, MCL 380.1211, the taxable value of all
property for the calendar year ending in the current state fiscal
year.
Sec. 22b. (1) From the appropriation in section 11, there is
allocated an amount not to
exceed $2,910,300,000.00
$2,921,200,000.00 for 2004-2005 and an amount not to exceed
$3,212,000,000.00 for 2005-2006 for discretionary nonmandated
payments to districts under this section. Funds allocated under
this section that are not expended in the state fiscal year for
which they were allocated, as determined by the department, may be
used to supplement the allocations under sections 22a and 51c in
order to fully fund those calculated allocations for the same
fiscal year.
(2) Subject to subsection (3) and section 11, the allocation to
a district under this section shall be an amount equal to the sum
of the amounts calculated under sections 20, 20j, 51a(2), 51a(3),
and 51a(12), minus the sum of the allocations to the district under
sections 22a and 51c.
(3) In order to receive an allocation under this section, each
district shall administer in each grade level that it operates in
grades 1 to 5 a standardized assessment approved by the department
of grade-appropriate basic educational skills. A district may use
the Michigan literacy progress profile to satisfy this requirement
for grades 1 to 3. Also, if the revised school code is amended to
require annual assessments at additional grade levels, in order to
receive an allocation under this section each district shall comply
with that requirement.
(4) From the allocation in subsection (1), the department shall
pay up to $1,000,000.00 in litigation costs incurred by this state
associated with lawsuits filed by 1 or more districts or
intermediate districts against this state. If the allocation under
this section is insufficient to fully fund all payments required
under this section, the payments under this subsection shall be
made in full before any proration of remaining payments under this
section.
(5) It is the intent of the legislature that all constitutional
obligations of this state have been fully funded under sections
22a, 31d, 51a, and 51c. If a claim is made by an entity receiving
funds under this act that challenges the legislative determination
of the adequacy of this funding or alleges that there exists an
unfunded constitutional requirement, the state budget director may
escrow or allocate from the discretionary funds for nonmandated
payments under this section the amount as may be necessary to
satisfy the claim before making any payments to districts under
subsection (2). If funds are escrowed, the escrowed funds are a
work project appropriation and the funds are carried forward into
the following fiscal year. The purpose of the work project is to
provide for any payments that may be awarded to districts as a
result of litigation. The work project shall be completed upon
resolution of the litigation.
(6) If the local claims review board or a court of competent
jurisdiction makes a final determination that this state is in
violation of section 29 of article IX of the state constitution of
1963 regarding state payments to districts, the state budget
director shall use work project funds under subsection (5) or
allocate from the discretionary funds for nonmandated payments
under this section the amount as may be necessary to satisfy the
amount owed to districts before making any payments to districts
under subsection (2).
(7) If a claim is made in court that challenges the legislative
determination of the adequacy of funding for this state's
constitutional obligations or alleges that there exists an unfunded
constitutional requirement, any interested party may seek an
expedited review of the claim by the local claims review board. If
the claim exceeds $10,000,000.00, this state may remove the action
to the court of appeals, and the court of appeals shall have and
shall exercise jurisdiction over the claim.
(8) If payments resulting from a final determination by the
local claims review board or a court of competent jurisdiction that
there has been a violation of section 29 of article IX of the state
constitution of 1963 exceed the amount allocated for discretionary
nonmandated payments under this section, the legislature shall
provide for adequate funding for this state's constitutional
obligations at its next legislative session.
(9) If a lawsuit challenging payments made to districts related
to costs reimbursed by federal title XIX medicaid funds is filed
against this state during
2001-2002, 2002-2003, or 2003-2004, 50%
of the amount allocated in subsection (1) not previously paid out
for 2002-2003, 2003-2004, and each succeeding fiscal year is a work
project appropriation and the funds are carried forward into the
following fiscal year. The purpose of the work project is to
provide for any payments that may be awarded to districts as a
result of the litigation. The work project shall be completed upon
resolution of the litigation. In addition, this state reserves the
right to terminate future federal title XIX medicaid reimbursement
payments to districts if the amount or allocation of reimbursed
funds is challenged in the lawsuit. As used in this subsection,
"title XIX" means title XIX of the social security act, 42 USC 1396
to 1396v.
Sec. 22d. (1) From the amount allocated under section 22b, an
amount not to exceed $750,000.00 is allocated in 2005-2006 for
additional payments to small, geographically isolated districts
under this section.
(2) To be eligible for a payment under this section, a district
shall meet all of the following:
(a) Operates grades K to 12.
(b) Has fewer than 250 pupils in membership.
(c) Each school building operated by the district meets at
least 1 of the following:
(i) Is located in the Upper Peninsula at least 30 miles from any
other public school building.
(ii) Is located on an island that is not accessible by bridge.
(3) The amount of the additional funding to each eligible
district under this section shall be determined under a spending
plan developed as provided in this subsection and approved by the
superintendent of public instruction. The spending plan shall be
developed cooperatively by the intermediate superintendents of each
intermediate district in which an eligible district is located.
The intermediate superintendents shall review the financial
situation of each eligible district, determine the minimum
essential financial needs of each eligible district, and develop
and agree on a spending plan that distributes the available funding
under this section to the eligible districts based on those
financial needs. The intermediate superintendents shall submit the
spending plan to the superintendent of public instruction for
approval. Upon approval by the superintendent of public
instruction, the amounts specified for each eligible district under
the spending plan are allocated under this section and shall be
paid to the eligible districts in the same manner as payments under
section 22b.
Sec. 22e. (1) From the appropriation in section 11, there is
allocated an amount not to exceed $26,300,000.00 for 2005-2006 for
payments to districts and public school academies to support the
higher costs related to educating pupils in grades 9 to 12 and
preparing them for postsecondary educational options. For
qualifying pupils, districts and public school academies shall
receive a per pupil allocation of $50.00. Districts may only
receive the allocation under this section for pupils who meet the
following requirements:
(a) The pupil must be enrolled and in regular attendance in the
district or public school academy in grades 9 to 12.
(b) The pupil must meet the requirements to be counted in
membership in the district or public school academy as prescribed
in section 6.
(2) If necessary, and before any proration required under
section 11, the department shall prorate payments under this
section by reducing the amount of the per pupil payment under this
section by a dollar amount calculated by determining the amount by
which the amount necessary to fully fund the requirements of this
section exceeds the maximum amount allocated under this section and
then dividing that amount by the total statewide number of
qualifying pupils who are in grades 9 to 12.
Sec. 24. (1) Subject
to subsection (2), from From the
appropriation in section 11,
there is allocated for 2004-2005 2005-
2006 an amount not to exceed $8,000,000.00 for payments to the
educating district or
intermediate district an amount equal to 100%
of the added cost each
fiscal year
for educating all pupils
assigned by a court or the family independence agency to reside in
or to attend a juvenile detention facility or child caring
institution licensed by the family independence agency and approved
by the department to provide
an on-grounds education program. The
total amount to be paid
under this section for added cost shall not
exceed $8,000,000.00 for
2004-2005. The amount of the payment
under this section to a district or intermediate districts shall be
calculated as prescribed under subsection (2).
(2) For 2005-2006, 70% of the total amount allocated under this
section shall be allocated by paying to the educating district or
intermediate district an amount equal to the lesser of the
district’s or intermediate district’s added cost or the department’s
approved per pupil allocation for the district or intermediate
district, and 30% of the total amount allocated under this section
shall be allocated by paying to the educating district or
intermediate district an amount equal to the district’s or
intermediate district’s added cost. For 2006-2007, 80% of the total
amount allocated under this section shall be allocated by paying to
the educating district or intermediate district an amount equal to
the lesser of the district’s or intermediate district’s added cost
or the department’s approved per pupil allocation for the district
or intermediate district, and 20% of the total amount allocated
under this section shall be allocated by paying to the educating
district or intermediate district an amount equal to the district’s
or intermediate district’s added cost. For 2007-2008, 90% of the
total amount allocated under this section shall be allocated by
paying to the educating district or intermediate district an amount
equal to the lesser of the district’s or intermediate district’s
added cost or the department’s approved per pupil allocation for the
district or intermediate district, and 10% of the total amount
allocated under this section shall be allocated by paying to the
educating district or intermediate district an amount equal to the
district’s or intermediate district’s added cost. For 2008-2009,
100% of the total amount allocated under this section shall be
allocated by paying to the educating district or intermediate
district an amount equal to the lesser of the district’s or
intermediate district’s added cost or the department’s approved per
pupil allocation for the district or intermediate district. For the
purposes of this section,
"added cost" subsection:
(a) "Added cost" means 100% of the added cost each fiscal year
for educating all pupils assigned by a court or the family
independence agency to reside in or to attend a juvenile detention
facility or child caring institution licensed by the family
independence agency or the department of labor and economic growth
and approved by the department to provide an on-grounds education
program. Added cost shall be computed by deducting all other
revenue received under this act for pupils described in this
section from total costs, as approved by the department, in whole
or in part, for educating those pupils in the on-grounds education
program or in a program approved by the department that is located
on property adjacent to a juvenile detention facility or child
caring institution. Costs reimbursed by federal funds are not
included. For a
particular fiscal year, for an on-grounds
education program or a
program located on property adjacent to a
juvenile detention facility
or child caring institution that was
not in existence at the time
the allocations under this section
were approved, the
department shall give approval for only that
portion of the educating
district's or intermediate district's
total costs that will not
prevent the allocated amounts under this
section from first being
applied to 100% of the added cost of the
programs that were in
existence at the time the preliminary
allocations under this
section were approved for that fiscal year.
(b) "Department’s approved per pupil allocation" for a district
or intermediate district shall be determined by dividing the total
amount allocated under this section for a fiscal year by the full-
time equated membership total for all pupils approved by the
department to be funded under this section for that fiscal year for
the district or intermediate district.
(3)
(2) A district or intermediate
district educating pupils
described in this section at a residential child caring institution
may operate, and receive funding under this section for, a
department-approved on-grounds educational program for those pupils
that is longer than 181 days, but not longer than 233 days, if the
child caring institution was licensed as a child caring institution
and offered in 1991-92 an on-grounds educational program that was
longer than 181 days but not longer than 233 days and that was
operated by a district or intermediate district.
(4)
(3) Special education pupils
funded under section 53a shall
not be funded under this section.
Sec. 26a. From the state school aid fund money appropriated in
section 11, there is allocated an amount not to exceed
$33,700,000.00 for 2005-2006 and from the general fund
appropriation in section 11, there is allocated an amount not to
exceed
$36,200,000.00 $11,300,000.00 for
2004-2005 2005-2006 to
reimburse districts, intermediate districts, and the state school
aid fund pursuant to section 12 of the Michigan renaissance zone
act, 1996 PA 376, MCL 125.2692, for taxes levied in 2004 or for
payments to districts as reimbursement for interest paid as a
result of property tax refunds. The allocations shall be made not
later than 60 days after the department of treasury certifies to
the department and to the state budget director that the department
of treasury has received all necessary information to properly
determine the amounts due to each eligible recipient.
Sec. 26b. (1) Beginning in 2005-2006, there is allocated from
section 11, an amount not to exceed $2,400,000.00 for payments to
districts, intermediate districts and community college districts
for the portion of the payment in lieu of taxes obligation that is
attributable to districts, intermediate districts and community
college districts pursuant to 1994 PA 451, MCL 324.2154.
(2) If the amount appropriated under this section is not
sufficient to fully pay obligations under this section, payments
shall be prorated on an equal basis among all eligible districts,
intermediate districts and community college districts.
Sec. 31a. (1) From the money appropriated in section 11, there
is allocated for 2004-2005
2005-2006 an amount not to
exceed
$314,200,000.00 $347,200,000.00 for payments to eligible districts
and eligible public school academies under this section. Subject
to subsection (12), the amount of the additional allowance under
this section shall be based on the number of actual pupils in
membership in the district or public school academy who met the
income eligibility criteria for free breakfast, lunch, or milk in
the immediately preceding state fiscal year, as determined under
the Richard B. Russell national school lunch act, 42 USC 1751 to
1769h, and reported to the department by October 31 of the
immediately preceding fiscal year and adjusted not later than
December 31 of the immediately preceding fiscal year. However, for
a public school academy that began operations as a public school
academy after the pupil membership count day of the immediately
preceding school year, the basis for the additional allowance under
this section shall be the number of actual pupils in membership in
the public school academy who met the income eligibility criteria
for free breakfast, lunch, or milk in the current state fiscal
year, as determined under the Richard B. Russell national school
lunch act.
(2) To be eligible to receive funding under this section, other
than funding under subsection (6), a district or public school
academy that has not been previously determined to be eligible
shall apply to the department, in a form and manner prescribed by
the department, and a district or public school academy must meet
all of the following:
(a) The sum of the district's or public school academy's
combined state and local revenue per membership pupil in the
current state fiscal year, as calculated under section 20, plus the
amount of the district's per pupil allocation under section 20j(2),
is less than or equal to $6,500.00 adjusted by the dollar amount of
the difference between the basic foundation allowance under section
20 for the current state fiscal year and $5,000.00, minus $200.00.
(b) The district or public school academy agrees to use the
funding only for purposes allowed under this section and to comply
with the program and accountability requirements under this
section.
(3) Except as otherwise provided in this subsection, an
eligible district or eligible public school academy shall receive
under this section for each membership pupil in the district or
public school academy who met the income eligibility criteria for
free breakfast, lunch, or milk, as determined under the Richard B.
Russell national school lunch act and as reported to the department
by October 31 of the immediately preceding fiscal year and adjusted
not later than December 31 of the immediately preceding fiscal
year, an amount per pupil equal to 11.5% of the sum of the
district's foundation allowance or public school academy's per
pupil amount calculated under section 20, plus the amount of the
district's per pupil allocation under section 20j(2), not to exceed
$6,500.00 adjusted by the dollar amount of the difference between
the basic foundation allowance under section 20 for the current
state fiscal year and $5,000.00, minus $200.00, or of the public
school academy's per membership pupil amount calculated under
section 20 for the current state fiscal year. A public school
academy that began operations as a public school academy after the
pupil membership count day of the immediately preceding school year
shall receive under this section for each membership pupil in the
public school academy who met the income eligibility criteria for
free breakfast, lunch, or milk, as determined under the Richard B.
Russell national school lunch act and as reported to the department
by October 31 of the current fiscal year and adjusted not later
than December 31 of the current fiscal year, an amount per pupil
equal to 11.5% of the public school academy's per membership pupil
amount calculated under section 20 for the current state fiscal
year.
(4) Except as otherwise provided in this section, a district or
public school academy receiving funding under this section shall
use that money only to provide instructional programs and direct
noninstructional services, including, but not limited to, medical
or counseling services, for at-risk pupils; for school health
clinics; and for the purposes of subsection (5) or (6). In
addition, a district that is organized as a school district of the
first class under the revised school code or a district or public
school academy in which at least 50% of the pupils in membership
met the income eligibility criteria for free breakfast, lunch, or
milk in the immediately preceding state fiscal year, as determined
and reported as described in subsection (1), may use not more than
10% of the funds it receives under this section for school
security. A district or public school academy shall not use any of
that money for administrative costs or to supplant another program
or other funds, except for funds allocated to the district or
public school academy under this section in the immediately
preceding year and already being used by the district or public
school academy for at-risk pupils. The instruction or direct
noninstructional services provided under this section may be
conducted before or after regular school hours or by adding extra
school days to the school year and may include, but are not limited
to, tutorial services, early childhood programs to serve children
age 0 to 5, and reading programs as described in former section 32f
as in effect for 2001-2002. A tutorial method may be conducted
with paraprofessionals working under the supervision of a
certificated teacher. The ratio of pupils to paraprofessionals
shall be between 10:1 and 15:1. Only 1 certificated teacher is
required to supervise instruction using a tutorial method. As used
in this subsection, "to supplant another program" means to take the
place of a previously existing instructional program or direct
noninstructional services funded from a funding source other than
funding under this section.
(5) Except as otherwise provided in subsection (11), a district
or public school academy that receives funds under this section and
that operates a school breakfast program under section 1272a of the
revised school code, MCL 380.1272a, shall use from the funds
received under this section an amount, not to exceed $10.00 per
pupil for whom the district or public school academy receives funds
under this section, necessary to operate the school breakfast
program.
(6) From the funds allocated under subsection (1), there is
allocated for 2004-2005
2005-2006 an amount not to
exceed
$3,743,000.00 to support teen health centers. These grants shall
be awarded for 3 consecutive years beginning with 2003-2004 in a
form and manner approved jointly by the department and the
department of community health. Each grant recipient shall remain
in compliance with the terms of the grant award or shall forfeit
the grant award for the duration of the 3-year period after the
noncompliance. Beginning in 2004-2005, to continue to receive
funding for a teen health center under this section a grant
recipient shall ensure that the teen health center has an advisory
committee and that at least one-third of the members of the
advisory committee are parents or legal guardians of school-aged
children. A teen health center program shall recognize the role of
a child's parents or legal guardian in the physical and emotional
well-being of the child. If any funds allocated under this
subsection are not used for the purposes of this subsection for the
fiscal year in which they are allocated, those unused funds shall
be used that fiscal year to avoid or minimize any proration that
would otherwise be required under subsection (12) for that fiscal
year.
(7) Each district or public school academy receiving funds
under this section shall submit to the department by July 15 of
each fiscal year a report, not to exceed 10 pages, on the usage by
the district or public school academy of funds under this section,
which report shall include at least a brief description of each
program conducted by the district or public school academy using
funds under this section, the amount of funds under this section
allocated to each of those programs, the number of at-risk pupils
eligible for free or reduced price school lunch who were served by
each of those programs, and the total number of at-risk pupils
served by each of those programs. If a district or public school
academy does not comply with this subsection, the department shall
withhold an amount equal to the August payment due under this
section until the district or public school academy complies with
this subsection. If the district or public school academy does not
comply with this subsection by the end of the state fiscal year,
the withheld funds shall be forfeited to the school aid fund.
(8) In order to receive funds under this section, a district or
public school academy shall allow access for the department or the
department's designee to audit all records related to the program
for which it receives those funds. The district or public school
academy shall reimburse the state for all disallowances found in
the audit.
(9) Subject to subsections (5), (6), and (11), any district may
use up to 100% of the funds it receives under this section to
reduce the ratio of pupils to teachers in grades K-6, or any
combination of those grades, in school buildings in which the
percentage of pupils described in subsection (1) exceeds the
district's aggregate percentage of those pupils. Subject to
subsections (5), (6), and (11), if a district obtains a waiver from
the department, the district may use up to 100% of the funds it
receives under this section to reduce the ratio of pupils to
teachers in grades K-6, or any combination of those grades, in
school buildings in which the percentage of pupils described in
subsection (1) is at least 60% of the district's aggregate
percentage of those pupils and at least 30% of the total number of
pupils enrolled in the school building. To obtain a waiver, a
district must apply to the department and demonstrate to the
satisfaction of the department that the class size reductions would
be in the best interests of the district's at-risk pupils.
(10) A district or public school academy may use funds received
under this section for adult high school completion, general
educational development (G.E.D.) test preparation, adult English as
a second language, or adult basic education programs described in
section 107.
(11) For an individual school or schools operated by a district
or public school academy receiving funds under this section that
have been determined by the department to meet the adequate yearly
progress standards of the federal no child left behind act of 2001,
Public Law 107-110, in both mathematics and English language arts
at all applicable grade levels for all applicable subgroups, the
district or public school academy may submit to the department an
application for flexibility in using the funds received under this
section that are attributable to the pupils in the school or
schools. The application shall identify the affected school or
schools and the affected funds and shall contain a plan for using
the funds for specific purposes identified by the district that are
designed to benefit at-risk pupils in the school, but that may be
different from the purposes otherwise allowable under this section.
The department shall approve the application if the department
determines that the purposes identified in the plan are reasonably
designed to benefit at-risk pupils in the school. If the
department does not act to approve or disapprove an application
within 30 days after it is submitted to the department, the
application is considered to be approved. If an application for
flexibility in using the funds is approved, the district may use
the funds identified in the application for any purpose identified
in the plan.
(12) If necessary, and before any proration required under
section 11, the department shall prorate payments under this
section by reducing the amount of the per pupil payment under this
section by a dollar amount calculated by determining the amount by
which the amount necessary to fully fund the requirements of this
section exceeds the maximum amount allocated under this section and
then dividing that amount by the total statewide number of pupils
who met the income eligibility criteria for free breakfast, lunch,
or milk in the immediately preceding fiscal year, as described in
subsection (1).
(13) If a district is formed by consolidation after June 1,
1995, and if 1 or more of the original districts was not eligible
before the consolidation for an additional allowance under this
section, the amount of the additional allowance under this section
for the consolidated district shall be based on the number of
pupils described in subsection (1) enrolled in the consolidated
district who reside in the territory of an original district that
was eligible before the consolidation for an additional allowance
under this section.
(14) A district or public school academy that does not meet the
eligibility requirement under subsection (2)(a) is eligible for
funding under this section if at least 1/4 of the pupils in
membership in the district or public school academy met the income
eligibility criteria for free breakfast, lunch, or milk in the
immediately preceding state fiscal year, as determined and reported
as described in subsection (1), and at least 4,500 of the pupils in
membership in the district or public school academy met the income
eligibility criteria for free breakfast, lunch, or milk in the
immediately preceding state fiscal year, as determined and reported
as described in subsection (1). A district or public school
academy that is eligible for funding under this section because the
district meets the requirements of this subsection shall receive
under this section for each membership pupil in the district or
public school academy who met the income eligibility criteria for
free breakfast, lunch, or milk in the immediately preceding fiscal
year, as determined and reported as described in subsection (1), an
amount per pupil equal to 11.5% of the sum of the district's
foundation allowance or public school academy's per pupil
allocation under section 20, plus the amount of the district's per
pupil allocation under section 20j(2), not to exceed $6,500.00
adjusted by the dollar amount of the difference between the basic
foundation allowance under section 20 for the current state fiscal
year and $5,000.00, minus $200.00.
(15) As used in this section, "at-risk pupil" means a pupil for
whom the district has documentation that the pupil meets at least 2
of the following criteria: is a victim of child abuse or neglect;
is below grade level in English language and communication skills
or mathematics; is a pregnant teenager or teenage parent; is
eligible for a federal free or reduced-price lunch subsidy; has
atypical behavior or attendance patterns; or has a family history
of school failure, incarceration, or substance abuse. For pupils
for whom the results of at least the applicable Michigan education
assessment program (MEAP) test have been received, at-risk pupil
also includes a pupil who does not meet the other criteria under
this subsection but who did not achieve at least a score of level 2
on the most recent MEAP English language arts, mathematics, or
science test for which results for the pupil have been received.
For pupils for whom the results of the Michigan merit examination
have been received, at-risk pupil also includes a pupil who does
not meet the other criteria under this subsection but who did not
achieve proficiency on the reading component of the most recent
Michigan merit examination for which results for the pupil have
been received, did not achieve proficiency on the mathematics
component of the most recent Michigan merit examination for which
results for the pupil have been received, or did not achieve basic
competency on the science component of the most recent Michigan
merit examination for which results for the pupil have been
received. For pupils in grades K-3, at-risk pupil also includes a
pupil who is at risk of not meeting the district's core academic
curricular objectives in English language arts or mathematics.
Sec. 31d. (1) From the appropriations in section 11, there is
allocated an amount not to
exceed $21,095,100.00 $22,495,100.00
for
2004-2005 2005-2006 for the purpose of making payments to districts
and other eligible entities under this section.
(2) The amounts allocated from state sources under this section
shall be used to pay the amount necessary to reimburse districts
for 6.0127% of the necessary costs of the state mandated portion of
the school lunch programs provided by those districts. The amount
due to each district under this section shall be computed by the
department using the methods of calculation adopted by the Michigan
supreme court in the consolidated cases known as Durant v State of
Michigan, Michigan supreme court docket no. 104458-104492.
(3) The payments made under this section include all state
payments made to districts so that each district receives at least
6.0127% of the necessary costs of operating the state mandated
portion of the school lunch program in a fiscal year.
(4) The payments made under this section to districts and other
eligible entities that are not required under section 1272a of the
revised school code, MCL 380.1272a, to provide a school lunch
program shall be in an amount not to exceed $10.00 per eligible
pupil plus 5 cents for each free lunch and 2 cents for each reduced
price lunch provided, as determined by the department.
(5) From the federal funds appropriated in section 11, there is
allocated for 2004-2005
2005-2006 all available
federal funding,
estimated at $286,494,000.00,
$303,684,000.00 for the
national
school lunch program and all available federal funding, estimated
at $2,506,000.00, for the emergency food assistance program.
(6) Notwithstanding section 17b, payments to eligible entities
other than districts under this section shall be paid on a schedule
determined by the department.
Sec. 32c. (1) From the general fund appropriation in section
11, there is allocated an amount not to exceed $250,000.00 for
2004-2005
2005-2006 to the
department for grants for community-
based
collaborative prevention services designed to promote
marriage
and foster positive parenting
skills; improve parent/child
interaction, especially for children 0-3 years of age; promote
access to needed community services; increase local capacity to
serve families at risk; improve school readiness; and support
healthy family environments that discourage alcohol, tobacco, and
other drug use. The allocation under this section is to fund
secondary
prevention programs as defined by
the children's trust
fund
for the prevention of child abuse and neglect.
(2) The funds allocated under subsection (1) shall be
distributed through a joint request for proposals process
established by the
department in conjunction with the children's
trust fund and the state's interagency systems
reform workgroup.
Projects funded with grants awarded under this section shall meet
all of the following:
(a) Be secondary prevention initiatives and voluntary to
consumers. This appropriation is not intended to serve the needs
of children for whom and families in which neglect or abuse has
been substantiated.
(b) Demonstrate that the planned services are part of a
community's integrated comprehensive family support strategy
endorsed by the local multi-purpose collaborative body.
(c) Provide a 25% local match, of which not more than 10% may
be in-kind services, unless this requirement is waived by the
interagency systems reform workgroup.
(3) Notwithstanding section 17b, payments under this section
may be made pursuant to an agreement with the department.
(4) Not later than January 30 of the next fiscal year, the
department shall prepare and submit to the governor and the
legislature an annual report of outcomes achieved by the providers
of the community-based collaborative prevention services funded
under this section for a fiscal year.
Sec. 32d. (1) From the state school aid fund money appropriated
under section 11, there is allocated an amount not to exceed
$72,600,000.00 for 2004-2005
2005-2006 for school
readiness or
preschool and parenting program grants to enable eligible
districts, as determined under section 37, to develop or expand, in
conjunction with whatever federal funds may be available,
including, but not limited to, federal funds under title I of the
elementary and secondary education act of 1965, 20 USC 6301 to
6578, chapter 1 of title I of the Hawkins-Stafford elementary and
secondary school improvement amendments of 1988, Public Law 100-
297, and the head start act, 42 USC 9831 to 9852a, comprehensive
compensatory programs
designed to do 1 or both of the following:
(a) Improve improve the readiness and
subsequent achievement of
educationally disadvantaged children as defined by the department
who will be at least 4, but less than 5 years of age, as of
December 1 of the school year in which the programs are offered,
and who show evidence of 2 or more risk factors as defined in the
state board report entitled "children at risk" that was adopted by
the state board on April 5, 1988.
(b) Provide preschool
and parenting education programs similar
to those under former
section 32b as in effect for 2001-2002.
(2) A comprehensive compensatory program funded under this
section may include an age-appropriate educational curriculum,
nutritional services, health screening for participating children,
a plan for parent and legal guardian involvement, and provision of
referral services for families eligible for community social
services.
(3) In addition to the allocation under subsection (1), from
the general fund money allocated under section 11, there is
allocated an amount not to
exceed $200,000.00 for 2004-2005 2005-
2006 for a competitive grant to continue a longitudinal evaluation
of children who have participated in the Michigan school readiness
program.
(4) A district receiving a grant under this section may
contract for the provision of the comprehensive compensatory
program and retain for administrative services an amount equal to
not more than 5% of the grant amount. A district may expend no
more than 10% of the total grant funds for administration of the
program.
(5) A grant recipient receiving funds under this section shall
report to the department no
later than October 15 of each year on
the midyear report the number of children participating in the
program who meet the income or other eligibility criteria specified
under section 37(3)(g) and the total number of children
participating in the program. For children participating in the
program who meet the income or other eligibility criteria specified
under section 37(3)(g), grant recipients shall also report whether
or not a parent is available to provide care based on employment
status. For the purposes of this subsection, "employment status"
shall be defined by the family independence agency in a manner
consistent with maximizing the amount of spending that may be
claimed for temporary assistance for needy families maintenance of
effort purposes.
Sec. 32j. (1) From the allocation
appropriation in section 81,
11, there is allocated an amount not to exceed $3,326,000.00 for
2004-2005 2005-2006 for great parents, great start grants to
intermediate districts to provide programs for parents with
preschool children. The purpose of these programs is to encourage
early literacy, improve school readiness, reduce the need for
special education services, and foster the maintenance of stable
families by encouraging positive parenting skills.
(2) To qualify for funding under this section, a program shall
provide services to all families with children age 5 or younger
residing within the intermediate district who choose to
participate, including at least all of the following services:
(a) Providing parents with information on child development
from birth to age 5.
(b) Providing parents with methods to enhance parent-child
interaction; including, but not limited to, encouraging parents to
read to their preschool children at least 1/2 hour per day.
(c) Providing parents with examples of learning opportunities
to promote intellectual, physical, and social growth of
preschoolers.
(d) Promoting access to needed community services through a
community-school-home partnership.
(e) Promoting
marriage.
(3) To receive a grant under this section, an intermediate
district shall submit a plan to the department not later than
October 1, 2004 2005 in the form and manner
prescribed by the
department. The plan shall do all of the following in a manner
prescribed by the department:
(a) Provide a plan for the delivery of the program components
described in subsection (2) that provides for educators trained in
child development to help parents understand their role in their
child's developmental process, thereby promoting school readiness
and mitigating the need for special education services.
(b) Demonstrate an adequate collaboration of local entities
involved in providing programs and services for preschool children
and their parents. Documentation of approval by the early childhood
investment corporation may be deemed adequate collaboration for the
purposes of this subsection.
(c) Provide a projected budget for the program to be funded.
The intermediate district shall provide at least a 20% local match
from local public or private resources for the funds received under
this section. Not more than 1/2 of this matching requirement, up
to a total of 10% of the total project budget, may be satisfied
through in-kind services provided by participating providers of
programs or services. In addition, not more than 10% of the grant
may be used for program administration.
(4) Each intermediate district receiving a grant under this
section shall agree to include a data collection system approved by
the department. The data collection system shall provide a report
by October 15 of each year on the number of children in families
with income below 200% of the federal poverty level that received
services under this program and the total number of children who
received services under this program.
(5) The department or superintendent, as applicable, shall do
all of the following:
(a) The superintendent shall approve or disapprove the plans
and notify the intermediate district of that decision not later
than November 15, 2004. 2005. The amount allocated by each
intermediate district shall be at least an amount equal to 3.5% of
the intermediate district's 2002-2003 payment under section 81.
(b) The department shall ensure that all programs funded under
this section utilize the most current validated research-based
methods and curriculum for providing the program components
described in subsection (2).
(c) The department shall submit a report to the state budget
director and the senate and house fiscal agencies summarizing the
data collection reports described in subsection (4) by December 1
of each year.
(6) An intermediate district receiving funds under this section
shall use the funds only for the program funded under this section.
An intermediate district receiving funds under this section may
carry over any unexpended funds received under this section to
subsequent fiscal years and may expend those unused funds in
subsequent fiscal years.
Sec. 37. (1) A district is eligible for an allocation under
section 32d if the district meets all of the requirements in
subsections (2), (3), and (4).
(2) The district shall submit a preapplication, in a manner and
on forms prescribed by the department, by a date specified by the
department in the immediately preceding state fiscal year. The
preapplication shall include a comprehensive needs assessment and
community collaboration plan, and shall identify all of the
following:
(a) The estimated total number of children in the community who
meet the criteria of section 32d and how that calculation was made.
(b) The estimated number of children in the community who meet
the criteria of section 32d and are being served by other early
childhood development programs operating in the community, and how
that calculation was made.
(c) The number of children the district will be able to serve
who meet the criteria of section 32d including a verification of
physical facility and staff resources capacity.
(d) The estimated number of children who meet the criteria of
section 32d who will remain unserved after the district and
community early childhood programs have met their funded
enrollments. The school district shall maintain a waiting list of
identified unserved eligible children who would be served when
openings are available.
(3) The district shall submit a final application for approval,
in a manner and on forms prescribed by the department, by a date
specified by the department. The final application shall indicate
all of the following that apply:
(a) The district complies with the state board approved
standards of quality and
curriculum guidelines for early childhood
programs for 4-year-olds. early childhood standards of quality for
prekindergarten.
(b) The district provides for the active and continuous
participation of parents or guardians of the children in the
program, and describes the district's participation plan as part of
the application.
(c) The district only employs for this program the following:
(i) Teachers possessing
proper training. Subject to
subparagraph (ii), this includes, but is not
limited to,
For
programs the district manages itself, a valid teaching certificate
and an early childhood (ZA) endorsement are required. This
provision does not apply to a district that subcontracts with an
eligible child development program. In that situation a teacher
must have a valid Michigan
teaching certificate and may have a
child development associate
credential (CDA) instead of an early
childhood (ZA) endorsement with an early childhood (ZA) endorsement
or valid Michigan teaching certificate with a child development
associate credential, or a bachelor’s degree in child development
with specialization in preschool teaching.
(ii) If a district determines
that it is unable to fully comply
with subparagraph (i) after making reasonable
efforts to comply,
teachers who have proper training
in early childhood development
equivalent to 4 years of
formal training in early
childhood/preschool
education or child development. This may
include 1 or more of the
following:
(A) A valid Michigan teaching certificate with
an early
childhood (ZA) endorsement
or a child development associate
credential (CDA).
(B) A bachelor's
degree in child care or child development.
(C) A child
development associate credential (CDA) combined
with an associate of arts
(AA) degree in early childhood/preschool
education or child
development.
(ii) (iii) Paraprofessionals
possessing proper training in early
childhood development or
who have completed at least 1 course in an
appropriate training
program, including, but not limited to, a
child development associate
credential (CDA) or associate degree in
child development or other
similar program, as approved by the
department. , including an associate’s degree in early
childhood
education or child development or equivalent, or a child
development associate (CDA) credential, or equivalent as approved
by the state board of education. Paraprofessionals may be employed
for two years while obtaining proper credentials if they have
completed
at least 1 course in an appropriate training program.
(d) The district has submitted for approval a program budget
that includes only those costs not reimbursed or reimbursable by
federal funding, that are clearly and directly attributable to the
early childhood readiness program, and that would not be incurred
if the program were not being offered. If children other than those
determined to be educationally disadvantaged participate in the
program, state reimbursement under section 32d shall be limited to
the portion of approved costs attributable to educationally
disadvantaged children.
(e) The district has
established a or joined a
multi-
district, multi-agency school readiness advisory committee
consisting of, at a minimum, classroom teachers for
prekindergarten, kindergarten, and first grade; parents or
guardians of program participants; representatives from appropriate
community agencies and organizations; the district curriculum
director or equivalent administrator; and, if feasible, a school
psychologist, school social worker, or school counselor. In
addition, there shall be on the committee at least 1 parent or
guardian of a program participant for every 18 children enrolled in
the program, with a minimum of 2 parent or guardian
representatives. The committee shall do all of the following:
(i) Ensure the ongoing articulation of the early childhood,
kindergarten, and first grade programs offered by the district or
districts.
(ii) Review the mechanisms and criteria used to determine
participation in the early childhood program.
(iii) Review the health screening program for all participants.
(iv) Review the nutritional services provided to program
participants.
(v) Review the mechanisms in place for the referral of families
to community social service agencies, as appropriate.
(vi) Review the collaboration with and the involvement of
appropriate community, volunteer, and social service agencies and
organizations in addressing all aspects of educational
disadvantage.
(vii) Review, evaluate, and make recommendations to a local
school readiness program or programs for changes to the school
readiness program.
(f) The district has submitted for departmental approval a plan
to conduct and report annual school readiness program evaluations
and continuous improvement plans using criteria approved by the
department. At a minimum, the evaluations shall include a self-
assessment of program quality, and assessment of the gains in
educational readiness and
progress through first grade of children
participating in the school
readiness program.
of the children
participating in the program.
(g) More than 50% of the children participating in the program
meet the income eligibility criteria for free or reduced price
lunch, as determined under the Richard B. Russell national school
lunch act, 42 USC 1751 to 1769h, or meet the income and all other
eligibility criteria for the family independence agency unified
child day care program.
(4) A consortium of 2 or more districts shall be eligible for
an allocation under section 32d if the districts designate a single
fiscal agent for the allocation. A district or intermediate
district may administer a consortium described in this subsection.
A consortium shall submit a single preapplication and application
for the children to be served, regardless of the number of
districts participating in the consortium.
(5) With the final application, an applicant district shall
submit to the department a resolution adopted by its board
certifying the number of 4-year-old children who show evidence of
risk factors as described in section 32d who meet the income
eligibility criteria for free or reduced price lunch or the income
and all other eligibility criteria for the family independence
agency unified child day care program, and who will participate in
a school readiness program funded under section 32d.
Sec. 39. (1) The tentative allocation for each fiscal year to
each eligible district under section 32d shall be determined by
multiplying the number of children determined in section 38 or the
number of children the district indicates it will be able to serve
under section 37(2)(c), whichever is less, by $3,300.00 and shall
be distributed among districts in decreasing order of concentration
of eligible children as determined by section 38 until the money
allocated in section 32d is distributed.
(2) A district that
has not less than 50 eligible children
shall receive priority over
other eligible districts other than
those districts funded under
subsection (3).
(2)
(3) A district that received
funds under this section in at
least 1 of the 2 immediately preceding fiscal years shall receive
priority in funding over other eligible districts. However,
funding beyond 3 state fiscal years is contingent upon the
availability of funds and documented evidence satisfactory to the
department of compliance with all operational, fiscal,
administrative, and other program requirements.
(3)
(4) A district that offers
supplementary day care funded by
funds other than those received under this section and therefore
offers full-day programs as part of its early childhood development
program shall receive priority in the allocation of funds under
this section over other eligible districts other than those
districts funded under
subsection (3)(2).
(4)
(5) For any district with 315
or more eligible pupils, the
number of eligible pupils shall be 65% of the number calculated
under section 38. However, none of these districts may have less
than 315 pupils for purposes of calculating the tentative
allocation under section 32d.
(5)
(6) If, taking into account the
total amount to be
allocated to the district as calculated under this section, a
district determines that it is able to include additional eligible
children in the school readiness program without additional funds
under this section, the district may include additional eligible
children but shall not receive additional funding under this
section for those children.
Sec. 39a. (1) From the federal funds appropriated in section
11, there is allocated for 2004-2005
2005-2006 to districts,
intermediate districts, and other eligible entities all available
federal funding, estimated
at $637,809,700.00, $637,552,800.00,
for the federal programs under the no child left behind act of
2001, Public Law 107-110. These funds are allocated as follows:
(a) An amount estimated
at $12,095,000.00 $12,050,500.00
to
provide students with drug- and violence-prevention programs and to
implement strategies to improve school safety, funded from DED-
OESE, drug-free schools and communities funds.
(b) An amount estimated
at $9,520,500.00 $9,401,400.00
for the
purpose of improving teaching and learning through a more effective
use of technology, funded from DED-OESE, educational technology
state grant funds.
(c) An amount estimated
at $105,565,700.00 $106,249,200.00
for
the purpose of preparing, training, and recruiting high-quality
teachers and class size reduction, funded from DED-OESE, improving
teacher quality funds.
(d) An amount estimated
at $5,713,700.00 $7,627,400.00
for
programs to teach English to limited English proficient (LEP)
children, funded from DED-OESE, language acquisition state grant
funds.
(e) An amount estimated at $8,550,000.00 for the Michigan
charter school subgrant program, funded from DED-OESE, charter
school funds.
(f) An amount
estimated at $332,700.00 for Michigan model
partnership for character
education programs, funded from DED-OESE,
title X, fund for
improvement of education funds.
(f)
(g)
An amount estimated at $469,900.00 $468,700.00
for
rural and low income schools, funded from DED-OESE, rural and low
income school funds.
(g)
(h)
An amount estimated at $9,563,000.00 $6,231,800.00 to
help schools develop and implement comprehensive school reform
programs, funded from DED-OESE, title I and title X, comprehensive
school reform funds.
(h)
(i)
An amount estimated at $411,090,000.00 $414,483,600.00
to provide supplemental programs to enable educationally
disadvantaged children to meet challenging academic standards,
funded from DED-OESE, title I, disadvantaged children funds.
(i)
(j)
An amount estimated at $6,622,900.00 $6,045,200.00 for
the purpose of providing unified family literacy programs, funded
from DED-OESE, title I, even start funds.
(j)
(k)
An amount estimated at $8,175,200.00 $8,186,200.00 for
the purpose of identifying and serving migrant children, funded
from DED-OESE, title I, migrant education funds.
(k)
(l)
An amount estimated at $21,936,600.00 $22,264,800.00 to
promote high-quality school reading instruction for grades K-3,
funded from DED-OESE, title I, reading first state grant funds.
(l) (m) An amount
estimated at $8,582,300.00 $5,698,000.00
for
the purpose of implementing innovative strategies for improving
student achievement, funded from DED-OESE, title VI, innovative
strategies funds.
(m)
(n)
An amount estimated at $29,592,200.00 $29,296,000.00
for the purpose of providing high-quality extended learning
opportunities, after school and during the summer, for children in
low-performing schools, funded from DED-OESE, twenty-first century
community learning center funds. Of these funds, $25,000.00 may be
used to support the Michigan after-school partnership. All of the
following apply to the Michigan after-school partnership:
(i) The department shall collaborate with the Michigan family
independence agency to extend the duration of the Michigan after-
school initiative, to be renamed the Michigan after-school
partnership and oversee its efforts to implement the policy
recommendations and strategic next steps identified in the Michigan
after-school initiative's report of December 15, 2003.
(ii) Funds shall be used to leverage other private and public
funding to engage the public and private sectors in building and
sustaining high-quality out-of-school-time programs and resources.
The co-chairs, representing the department and the Michigan family
independence agency, shall name a fiduciary agent and may authorize
the fiduciary to expend funds and hire people to accomplish the
work of the Michigan after-school partnership.
(iii) Participation in the Michigan after-school partnership
shall be expanded beyond the membership of the initial Michigan
after-school initiative to increase the representation of parents,
youth, foundations, employers, and others with experience in
education, child care, after-school and youth development services,
and crime and violence prevention, and to include representation
from the Michigan department of community health. Each year, on or
before December 31, the Michigan after-school partnership shall
report its progress in reaching the recommendations set forth in
the Michigan after-school initiative's report to the legislature
and the governor.
(n) An amount estimated at $1,000,000.00 for community service
state grants, funded from DED-OESE, community service state grant
funds.
(2) From the federal funds appropriated in section 11, there is
allocated for 2004-2005
2005-2006 to districts,
intermediate
districts, and other eligible entities all available federal
funding, estimated at $5,427,500.00,
$4,646,400.00, for the
following programs that are funded by federal grants:
(a) An amount estimated at $600,000.00 for acquired
immunodeficiency syndrome education grants, funded from HHS-center
for disease control, AIDS funding.
(b) An amount
estimated at $953,500.00 for emergency services
to immigrants, funded from
DED-OBEMLA, emergency immigrant
education assistance funds.
(b)
(c)
An amount estimated at $1,428,400.00 $1,500,100.00 to
provide services to homeless children and youth, funded from DED-
OVAE, homeless children and youth funds.
(c)
(d)
An amount estimated at $1,000,000.00 for refugee
children school impact grants, funded from HHS-ACF, refugee
children school impact funds.
(d)
(e)
An amount estimated at $1,445,600.00 for serve America
grants, funded from the corporation for national and community
service funds.
(e) An amount estimated at $100,700.00 to encourage interstate
and intrastate coordination of migrant education, funded from DED-
OESE, title I, migrant education program funds.
(3) All federal funds allocated under this section shall be
distributed in accordance with federal law and with flexibility
provisions outlined in Public Law 107-116, and in the education
flexibility partnership act of 1999, Public Law 106-25.
Notwithstanding section 17b, payments of federal funds to
districts, intermediate districts, and other eligible entities
under this section shall be paid on a schedule determined by the
department.
(4) As used in this section:
(a) "DED" means the United States department of education.
(b) "DED-OBEMLA" means the DED office of bilingual education
and minority languages affairs.
(c) "DED-OESE" means the DED office of elementary and secondary
education.
(d) "DED-OVAE" means the DED office of vocational and adult
education.
(e) "HHS" means the United States department of health and
human services.
(f) "HHS-ACF" means the HHS administration for children and
families.
Sec. 41. From the appropriation in section 11, there is
allocated
an amount not to exceed $2,800,000.00 for 2004-2005 2005-
2006 to applicant districts and intermediate districts offering
programs of instruction for pupils of limited English-speaking
ability under section 1153 of the revised school code, MCL
380.1153. Reimbursement shall be on a per pupil basis and shall be
based on the number of pupils of limited English-speaking ability
in membership on the pupil membership count day. Funds allocated
under this section shall be used solely for instruction in
speaking, reading, writing, or comprehension of English. A pupil
shall not be counted under this section or instructed in a program
under this section for more than 3 years.
Sec. 41a. From the federal funds appropriated in section 11,
there is allocated an amount
estimated at $1,232,100.00 for 2004-
2005 2005-2006 from the United States department of education
-
office of elementary and secondary education, language acquisition
state grant funds, to districts and intermediate districts offering
programs of instruction for pupils of limited English-speaking
ability.
Sec. 51a. (1) From the appropriation in section 11, there is
allocated
for 2004-2005 an amount not to exceed $905,683,000.00
$899,783,000.00, and there is allocated for 2005-2006, an amount
not to exceed $960,883,000.00 from state sources and all available
federal funding under sections 611 to 619 of part B of the
individuals with disabilities education act, 20 USC 1411 to 1419,
estimated at $329,850,000.00 for 2004-2005 and $345,850,000.00 for
2005-2006 plus any carryover federal funds from previous year
appropriations. The allocations under this subsection are for the
purpose of reimbursing districts and intermediate districts for
special education programs, services, and special education
personnel as prescribed in article 3 of the revised school code,
MCL 380.1701 to 380.1766; net tuition payments made by intermediate
districts to the Michigan schools for the deaf and blind; and
special education programs and services for pupils who are eligible
for special education programs and services according to statute or
rule. For meeting the costs of special education programs and
services not reimbursed under this article, a district or
intermediate district may use money in general funds or special
education funds, not otherwise restricted, or contributions from
districts to intermediate districts, tuition payments, gifts and
contributions from individuals, or federal funds that may be
available for this purpose, as determined by the intermediate
district plan prepared pursuant to article 3 of the revised school
code, MCL 380.1701 to 380.1766. All federal funds allocated under
this section in excess of those allocated under this section for
2002-2003
may be distributed in accordance with the flexible
funding permissive
use of funds provisions of the
individuals with
disabilities education act, title VI of Public Law 91-230,
including, but not limited to, 34 CFR 300.234 and 300.235.
Notwithstanding section 17b, payments of federal funds to
districts, intermediate districts, and other eligible entities
under this section shall be paid on a schedule determined by the
department.
(2) From the funds allocated under subsection (1), there is
allocated for 2004-2005 the amount necessary, estimated at
$168,900,000.00 for
2003-2004 $175,800,000.00, and for 2005-2006
the amount necessary, estimated at $188,600,000.00, for payments
toward reimbursing districts and intermediate districts for
28.6138% of total approved costs of special education, excluding
costs reimbursed under section 53a, and 70.4165% of total approved
costs of special education transportation. Allocations under this
subsection shall be made as follows:
(a) The initial amount allocated to a district under this
subsection toward fulfilling the specified percentages shall be
calculated by multiplying the district's special education pupil
membership, excluding pupils described in subsection (12), times
the sum of the foundation allowance under section 20 of the pupil's
district of residence plus the amount of the district's per pupil
allocation under section 20j(2), not to exceed $6,500.00 adjusted
by the dollar amount of the difference between the basic foundation
allowance under section 20 for the current fiscal year and
$5,000.00 minus $200.00, or, for a special education pupil in
membership in a district that is a public school academy or
university school, times an amount equal to the amount per
membership pupil calculated under section 20(6). For an
intermediate district, the amount allocated under this subdivision
toward fulfilling the specified percentages shall be an amount per
special education membership pupil, excluding pupils described in
subsection (12), and shall be calculated in the same manner as for
a district, using the foundation allowance under section 20 of the
pupil's district of residence, not to exceed $6,500.00 adjusted by
the dollar amount of the difference between the basic foundation
allowance under section 20 for the current fiscal year and
$5,000.00 minus $200.00, and that district's per pupil allocation
under section 20j(2).
(b) After the allocations under subdivision (a), districts and
intermediate districts for which the payments under subdivision (a)
do not fulfill the specified percentages shall be paid the amount
necessary to achieve the specified percentages for the district or
intermediate district.
(3) From the funds allocated under subsection (1), there is
allocated for 2004-2005 the amount necessary, estimated at
$2,400,000.00 and for 2005-2006 the amount necessary, estimated at
$1,800,000.00, to make payments to districts and intermediate
districts under this subsection. If the amount allocated to a
district or intermediate district for a fiscal year under
subsection (2)(b) is less than the sum of the amounts allocated to
the district or intermediate district for 1996-97 under sections 52
and 58, there is allocated to the district or intermediate district
for the fiscal year an amount equal to that difference, adjusted by
applying the same proration factor that was used in the
distribution of funds under section 52 in 1996-97 as adjusted to
the district's or intermediate district's necessary costs of
special education used in calculations for the fiscal year. This
adjustment is to reflect reductions in special education program
operations or services between 1996-97 and subsequent fiscal years.
Adjustments for reductions in special education program operations
or services shall be made in a manner determined by the department
and shall include adjustments for program or service shifts.
(4) If the department determines that the sum of the amounts
allocated for a fiscal year to a district or intermediate district
under subsection (2)(a) and (b) is not sufficient to fulfill the
specified percentages in subsection (2), then the shortfall shall
be paid to the district or intermediate district during the fiscal
year beginning on the October 1 following the determination and
payments under subsection (3) shall be adjusted as necessary. If
the department determines that the sum of the amounts allocated for
a fiscal year to a district or intermediate district under
subsection (2)(a) and (b) exceeds the sum of the amount necessary
to fulfill the specified percentages in subsection (2), then the
department shall deduct the amount of the excess from the
district's or intermediate district's payments under this act for
the fiscal year beginning on the October 1 following the
determination and payments under subsection (3) shall be adjusted
as necessary. However, if the amount allocated under subsection
(2)(a) in itself exceeds the amount necessary to fulfill the
specified percentages in subsection (2), there shall be no
deduction under this subsection.
(5) State funds shall be allocated on a total approved cost
basis. Federal funds shall be allocated under applicable federal
requirements, except that an amount not to exceed $3,500,000.00 may
be allocated by the department for 2004-2005 and 2005-2006 to
districts or intermediate districts or other eligible entities on a
competitive grant basis for programs, equipment, and services that
the department determines to be designed to benefit or improve
special education on a statewide scale.
(6) From the amount allocated in subsection (1), there is
allocated an amount not to exceed $2,200,000.00 for 2004-2005 and
2005-2006 to reimburse 100% of the net increase in necessary costs
incurred by a district or intermediate district in implementing the
revisions in the administrative rules for special education that
became effective on July 1, 1987. As used in this subsection, "net
increase in necessary costs" means the necessary additional costs
incurred solely because of new or revised requirements in the
administrative rules minus cost savings permitted in implementing
the revised rules. Net increase in necessary costs shall be
determined in a manner specified by the department.
(7) For purposes of this article, all of the following apply:
"Total approved costs of special education" shall be determined in
a manner specified by the department and may include indirect
costs, but shall not exceed 115% of approved direct costs for
section 52 and section 53a programs. The total approved costs
include salary and other compensation for all approved special
education personnel for the program, including payments for social
security and medicare and public school employee retirement system
contributions. The total approved costs do not include salaries or
other compensation paid to administrative personnel who are not
special education personnel as defined in section 6 of the revised
school code, MCL 380.6. Costs reimbursed by federal funds, other
than those federal funds included in the allocation made under this
article, are not included. Special education approved personnel
not utilized full time in the evaluation of students or in the
delivery of special education programs, ancillary, and other
related services shall be reimbursed under this section only for
that portion of time actually spent providing these programs and
services, with the exception of special education programs and
services provided to youth placed in child caring institutions or
juvenile detention programs approved by the department to provide
an on-grounds education program. Districts or intermediate
districts that employed staff to provide special education services
in 2003-2004, which in a subsequent year receive the same type of
services from another district, public school academy or
intermediate district, shall report the cost of the service for
special education reimbursement purposes under this act. Districts
and intermediate districts that provide services in subsequent
years, to another district, public school academy or intermediate
district shall not report the salaries and benefits paid to staff
who provide such services for reimbursement
under this act. Total
approved costs of special education
do not include the costs of a
joint shared-employment arrangement between an intermediate
district and 1 or more of its constituent districts that took
effect in the 2004-2005 or a subsequent school year. The costs
associated with the joint shared-employment arrangement shall
instead be allocated entirely to the constituent district or
districts. In addition, if an intermediate district entered into
such a joint shared-employment
arrangement that took effect in the
2004-2005 or a subsequent school year and subsequently becomes the
sole employer of an employee who had been subject to the joint
shared-employment arrangement, total approved costs of special
education do not include the costs of employing that employee
unless the department determines that employing the employee has
resulted in a significant cost savings or an increase in efficiency
that is sufficient to justify the arrangement.
(b) Reimbursement for ancillary and other related services, as
defined by R 340.1701c of the Michigan administrative code, shall
not be provided when those services are covered by and available
through private group health insurance carriers or federal
reimbursed program sources unless the department and district or
intermediate district agree otherwise and that agreement is
approved by the state budget director. Expenses, other than the
incidental expense of filing, shall not be borne by the parent. In
addition, the filing of claims shall not delay the education of a
pupil. A district or intermediate district shall be responsible
for payment of a deductible amount and for an advance payment
required until the time a claim is paid.
(8) From the allocation in subsection (1), there is allocated
for 2004-2005 and 2005-2006, an amount not to exceed $15,313,900.00
to intermediate districts. The payment under this subsection to
each intermediate district shall be equal to the amount of the
1996-97 allocation to the intermediate district under subsection
(6) of this section as in effect for 1996-97.
(9) A pupil who is enrolled in a full-time special education
program conducted or administered by an intermediate district or a
pupil who is enrolled in the Michigan schools for the deaf and
blind shall not be included in the membership count of a district,
but shall be counted in membership in the intermediate district of
residence.
(10) Special education personnel transferred from 1 district to
another to implement the revised school code shall be entitled to
the rights, benefits, and tenure to which the person would
otherwise be entitled had that person been employed by the
receiving district originally.
(11) If a district or intermediate district uses money received
under this section for a purpose other than the purpose or purposes
for which the money is allocated, the department may require the
district or intermediate district to refund the amount of money
received. Money that is refunded shall be deposited in the state
treasury to the credit of the state school aid fund.
(12) From the funds allocated in subsection (1), there is
allocated for 2004-2005 the amount necessary, estimated at
$6,100,000.00 and there is allocated for 2005-2006 the amount
necessary, estimated at $6,400,000.00, to pay the foundation
allowances for pupils described in this subsection. The allocation
to a district under this subsection shall be calculated by
multiplying the number of pupils described in this subsection who
are counted in membership in the district times the sum of the
foundation allowance under section 20 of the pupil's district of
residence plus the amount of the district's per pupil allocation
under section 20j(2), not to exceed $6,500.00 adjusted by the
dollar amount of the difference between the basic foundation
allowance under section 20 for the current fiscal year and
$5,000.00 minus $200.00, or, for a pupil described in this
subsection who is counted in membership in a district that is a
public school academy or university school, times an amount equal
to the amount per membership pupil under section 20(6). The
allocation to an intermediate district under this subsection shall
be calculated in the same manner as for a district, using the
foundation allowance under section 20 of the pupil's district of
residence, not to exceed $6,500.00 adjusted by the dollar amount of
the difference between the basic foundation allowance under section
20 for the current fiscal year and $5,000.00 minus $200.00, and
that district's per pupil allocation under section 20j(2). This
subsection applies to all of the following pupils:
(a) Pupils described in section 53a.
(b) Pupils counted in membership in an intermediate district
who are not special education pupils and are served by the
intermediate district in a juvenile detention or child caring
facility.
(c) Emotionally impaired pupils counted in membership by an
intermediate district and provided educational services by the
department of community health.
(13) After payments under subsections (2) and (12) and section
51c, the remaining expenditures from the allocation in subsection
(1) shall be made in the following order:
(a) 100% of the reimbursement required under section 53a.
(b) 100% of the reimbursement required under subsection (6).
(c) 100% of the payment required under section 54.
(d) 100% of the payment required under subsection (3).
(e) 100% of the payment required under subsection (8).
(f) 100% of the payments under section 56.
(14) The allocations under subsection (2), subsection (3), and
subsection (12) shall be allocations to intermediate districts only
and shall not be allocations to districts, but instead shall be
calculations used only to determine the state payments under
section 22b.
Sec. 51c. As required by the court in the consolidated cases
known as Durant v State of Michigan, Michigan supreme court docket
no. 104458-104492, from the allocation under section 51a(1), there
is allocated for 2004-2005 the amount necessary, estimated at
$659,400,000.00
$646,600,000.00,
and for 2005-2006 the amount
necessary, estimated at $695,200,000.00, for payments to reimburse
districts for 28.6138% of total approved costs of special education
excluding costs reimbursed under section 53a, and 70.4165% of total
approved costs of special education transportation. Funds
allocated under this section that are not expended in the state
fiscal year for which they were allocated, as determined by the
department, may be used to supplement the allocations under
sections 22a and 22b in order to fully fund those calculated
allocations for the same fiscal year.
Sec. 51d. (1) From the federal funds appropriated in section
11, there is allocated for 2004-2005
2005-2006 all available
federal funding, estimated at $65,000,000.00, for special education
programs that are funded by federal grants. All federal funds
allocated under this section shall be distributed in accordance
with federal law. Notwithstanding section 17b, payments of federal
funds to districts, intermediate districts, and other eligible
entities under this section shall be paid on a schedule determined
by the department.
(2) From the federal funds allocated under subsection (1), the
following amounts are
allocated for 2004-2005 2005-2006:
(a) An amount estimated at $15,000,000.00 for handicapped
infants and toddlers, funded from DED-OSERS, handicapped infants
and toddlers funds.
(b) An amount estimated at $14,000,000.00 for preschool grants
(Public Law 94-142), funded from DED-OSERS, handicapped preschool
incentive funds.
(c) An amount estimated at $36,000,000.00 for special education
programs funded by DED-OSERS, handicapped program, individuals with
disabilities act funds.
(3) As used in this section, "DED-OSERS" means the United
States department of education office of special education and
rehabilitative services.
Sec. 53a. (1) For districts, reimbursement for pupils described
in subsection (2) shall be 100% of the total approved costs of
operating special education programs and services approved by the
department and included in the intermediate district plan adopted
pursuant to article 3 of the revised school code, MCL 380.1701 to
380.1766, minus the district's foundation allowance calculated
under section 20, and minus the amount calculated for the district
under section 20j. For intermediate districts, reimbursement for
pupils described in section (2) shall be calculated in the same
manner as for a district, using the foundation allowance under
section 20 of the pupil's district of residence, not to exceed
$6,500.00 adjusted by the dollar amount of the difference between
the basic foundation allowance under section 20 for the current
fiscal year and $5,000.00, minus $200.00, and under section 20j.
(2) Reimbursement under subsection (1) is for the following
special education pupils:
(a) Pupils assigned to a district or intermediate district
through the community placement program of the courts or a state
agency, if the pupil was a resident of another intermediate
district at the time the pupil came under the jurisdiction of the
court or a state agency.
(b) Pupils who are residents of institutions operated by the
department of community health.
(c) Pupils who are former residents of department of community
health institutions for the developmentally disabled who are placed
in community settings other than the pupil's home.
(d) Pupils enrolled in a department-approved on-grounds
educational program longer than 180 days, but not longer than 233
days, at a residential child care institution, if the child care
institution offered in 1991-92 an on-grounds educational program
longer than 180 days but not longer than 233 days.
(e) Pupils placed in a district by a parent for the purpose of
seeking a suitable home, if the parent does not reside in the same
intermediate district as the district in which the pupil is placed.
(3) Only those costs that are clearly and directly attributable
to educational programs for pupils described in subsection (2), and
that would not have been incurred if the pupils were not being
educated in a district or intermediate district, are reimbursable
under this section.
(4) The costs of transportation shall be funded under this
section and shall not be reimbursed under section 58.
(5) Not more than
$12,800,000.00 of the allocation for 2004-
2005 2005-2006 in section 51a(1) shall be allocated under this
section.
Sec. 54. In addition to the aid received under section 52, each
intermediate district shall receive an amount per pupil for each
pupil in attendance at the Michigan schools for the deaf and blind.
The amount shall be proportionate to the total instructional cost
at each school. Not more than $1,688,000.00 of the allocation for
2004-2005 2005-2006 in section 51a(1) shall be allocated under this
section.
Sec. 56. (1) For the purposes of this section:
(a) "Membership" means for a particular fiscal year the total
membership for the immediately preceding fiscal year of the
intermediate district and the districts constituent to the
intermediate district.
(b) "Millage levied" means the millage levied for special
education pursuant to part 30 of the revised school code, MCL
380.1711 to 380.1743, including a levy for debt service
obligations.
(c) "Taxable value" means the total taxable value of the
districts constituent to an intermediate district, except that if a
district has elected not to come under part 30 of the revised
school code, MCL 380.1711 to 380.1743, membership and taxable value
of the district shall not be included in the membership and taxable
value of the intermediate district.
(2) From the allocation under section 51a(1), there is
allocated an amount not to
exceed $36,881,100.00 for 2004-2005
2005-2006 to reimburse intermediate districts levying millages for
special education pursuant to part 30 of the revised school code,
MCL 380.1711 to 380.1743. The purpose, use, and expenditure of the
reimbursement shall be limited as if the funds were generated by
these millages and governed by the intermediate district plan
adopted pursuant to article 3 of the revised school code, MCL
380.1701 to 380.1766. As a condition of receiving funds under this
section, an intermediate district distributing any portion of
special education millage funds to its constituent districts shall
submit for departmental approval and implement a distribution plan.
(3) Reimbursement for
those millages levied in 2003-2004 2004-
2005
shall be
made in 2004-2005 2005-2006 at
an amount per 2003-
2004 2004-2005 membership pupil computed by subtracting from
$133,400.00 $142,100.00 the 2003-2004 2004-2005 taxable value
behind each membership pupil and multiplying the resulting
difference by the 2003-2004
2004-2005 millage levied.
Sec. 57. (1) From the appropriation in section 11, there is
allocated an amount not to
exceed $50,000.00 for 2004-2005 2005-
2006 to applicant intermediate districts that provide support
services for the education of advanced and accelerated pupils. An
intermediate district is entitled to 75% of the actual salary, but
not to exceed $25,000.00 reimbursement for an individual salary, of
a support services teacher approved by the department, and not to
exceed $4,000.00 reimbursement for expenditures to support program
costs, excluding in-county travel and salary, as approved by the
department.
(2) From the appropriation in section 11, there is allocated an
amount not to exceed $0.00
for 2004-2005 2005-2006 to
support part
of the cost of summer institutes for advanced and accelerated
students. This amount shall be contracted to applicant
intermediate districts in cooperation with a local institution of
higher education and shall be coordinated by the department.
(3) From the appropriation in section 11, there is allocated an
amount not to exceed
$200,000.00 for 2004-2005 2005-2006
for the
development and operation of comprehensive programs for advanced
and accelerated pupils. An eligible district or consortium of
districts shall receive an amount not to exceed $100.00 per K-12
pupil for up to 5% of the district's or consortium's K-12
membership for the immediately preceding fiscal year with a minimum
total grant of $6,000.00. Funding shall be provided in the
following order: the per pupil allotment, and then the minimum
total grant of $6,000.00 to individual districts. An intermediate
district may act as the fiscal agent for a consortium of districts.
In order to be eligible for funding under this subsection, the
district or consortium of districts shall submit each year a
current 3-year plan for operating a comprehensive program for
advanced and accelerated pupils and the district or consortium
shall demonstrate to the department that the district or consortium
will contribute matching funds of at least $50.00 per K-12 pupil.
The plan or revised plan shall be developed in accordance with
criteria established by the department and shall be submitted to
the department for approval. Within the criteria, the department
shall encourage the development of consortia among districts of
less than 5,000 memberships.
Sec. 61a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $30,000,000.00 for 2004-2005
2005-2006 to reimburse on an added cost basis districts, except for
a district that served as the fiscal agent for a vocational
education consortium in the 1993-94 school year, and secondary area
vocational-technical education centers for secondary-level
vocational-technical education programs, including parenthood
education programs, according to rules approved by the
superintendent. Applications for participation in the programs
shall be submitted in the form prescribed by the department. The
department shall determine the added cost for each vocational-
technical program area. The allocation of added cost funds shall
be based on the type of vocational-technical programs provided, the
number of pupils enrolled, and the length of the training period
provided, and shall not exceed 75% of the added cost of any
program. With the approval of the department, the board of a
district maintaining a secondary vocational-technical education
program may offer the program for the period from the close of the
school year until September 1. The program shall use existing
facilities and shall be operated as prescribed by rules promulgated
by the superintendent.
(2) Except for a district that served as the fiscal agent for a
vocational education consortium in the 1993-94 school year,
districts and intermediate districts shall be reimbursed for local
vocational administration, shared time vocational administration,
and career education planning district vocational-technical
administration. The definition of what constitutes administration
and reimbursement shall be pursuant to guidelines adopted by the
superintendent. Not more than $800,000.00 of the allocation in
subsection (1) shall be distributed under this subsection.
(3) From the allocation in subsection (1), there is allocated
an amount not to exceed
$388,700.00 for 2004-2005 2005-2006
to
intermediate districts with constituent districts that had combined
state and local revenue per membership pupil in the 1994-95 state
fiscal year of $6,500.00 or more, served as a fiscal agent for a
state board designated area vocational education center in the
1993-94 school year, and had an adjustment made to their 1994-95
combined state and local revenue per membership pupil pursuant to
section 20d. The payment under this subsection to the intermediate
district shall equal the amount of the allocation to the
intermediate district for 1996-97 under this subsection.
Sec. 62. (1) For the purposes of this section:
(a) "Membership" means for a particular fiscal year the total
membership for the immediately preceding fiscal year of the
intermediate district and the districts constituent to the
intermediate district or the total membership for the immediately
preceding fiscal year of the area vocational-technical program.
(b) "Millage levied" means the millage levied for area
vocational-technical education pursuant to sections 681 to 690 of
the revised school code, MCL 380.681 to 380.690, including a levy
for debt service obligations incurred as the result of borrowing
for capital outlay projects and in meeting capital projects fund
requirements of area vocational-technical education.
(c) "Taxable value" means the total taxable value of the
districts constituent to an intermediate district or area
vocational-technical education program, except that if a district
has elected not to come under sections 681 to 690 of the revised
school code, MCL 380.681 to 380.690, the membership and taxable
value of that district shall not be included in the membership and
taxable value of the intermediate district. However, the
membership and taxable value of a district that has elected not to
come under sections 681 to 690 of the revised school code, MCL
380.681 to 380.690, shall be included in the membership and taxable
value of the intermediate district if the district meets both of
the following:
(i) The district operates the area vocational-technical
education program pursuant to a contract with the intermediate
district.
(ii) The district contributes an annual amount to the operation
of the program that is commensurate with the revenue that would
have been raised for operation of the program if millage were
levied in the district for the program under sections 681 to 690 of
the revised school code, MCL 380.681 to 380.690.
(2) From the appropriation in section 11, there is allocated an
amount not to exceed
$9,000,000.00 for 2004-2005 2005-2006
to
reimburse intermediate districts and area vocational-technical
education programs established under section 690(3) of the revised
school code, MCL 380.690, levying millages for area vocational-
technical education pursuant to sections 681 to 690 of the revised
school code, MCL 380.681 to 380.690. The purpose, use, and
expenditure of the reimbursement shall be limited as if the funds
were generated by those millages.
(3) Reimbursement for
the millages levied in 2003-2004 2004-
2005
shall be
made in 2004-2005 2005-2006
at an amount per 2003-
2004 2004-2005 membership pupil computed by subtracting from
$142,200.00 $151,200.00 the 2003-2004 2004-2005 taxable value
behind each membership pupil and multiplying the resulting
difference by the 2003-2004
2004-2005 millage levied.
Sec. 74. (1) From the amount appropriated in section 11, there
is allocated an amount not
to exceed $1,625,000.00 for 2004-2005
2005-2006 for the purposes of subsections (2) and (3).
(2) From the allocation in subsection (1), there is allocated
each fiscal year the amount necessary for payments to state
supported colleges or universities and intermediate districts
providing school bus driver safety instruction or driver skills
road tests pursuant to sections 51 and 52 of the pupil
transportation act, 1990 PA 187, MCL 257.1851 and 257.1852. The
payments shall be in an amount determined by the department not to
exceed 75% of the actual cost of instruction and driver
compensation for each public or nonpublic school bus driver
attending a course of instruction. For the purpose of computing
compensation, the hourly rate allowed each school bus driver shall
not exceed the hourly rate received for driving a school bus.
Reimbursement compensating the driver during the course of
instruction or driver skills road tests shall be made by the
department to the college or university or intermediate district
providing the course of instruction.
(3) From the allocation in subsection (1), there is allocated
each fiscal year the amount necessary to pay the reasonable costs
of nonspecial education auxiliary services transportation provided
pursuant to section 1323 of the revised school code, MCL 380.1323.
Districts funded under this subsection shall not receive funding
under any other section of this act for nonspecial education
auxiliary services transportation.
Sec. 81. (1) Except as otherwise provided in this section, from
the appropriation in section
11, there is allocated for 2004-2005
2005-2006 to the intermediate districts the sum necessary, but not
to exceed $81,028,100.00,
$79,755,500.00 to provide
state aid to
intermediate districts under this section. Except as otherwise
provided in this section, there shall be allocated to each
intermediate district for 2004-2005
2005-2006 an amount equal
to
85.2% 102.6% of the amount appropriated under this subsection in
2004-2005 for only that portion of the appropriation associated
with general operations, not including the program allocation
described
in section 32j. that
was 2002-2003
in 2002 PA 521, before
any reduction made for
2002-2003 under section 11(3). Funding
provided under this section shall be used to comply with
requirements of this act and the revised school code that are
applicable to intermediate districts, and for which funding is not
provided elsewhere in this act, and to provide technical assistance
to districts as authorized by the intermediate school board. In
order to receive funding
under this section for 2004-2005, 2005-
2006,
an
intermediate district shall allocate for 2004-2005 2005-
2006 at least an amount equal to 3.5% of its total funding received
under this section for 2002-2003 toward providing the great
parents, great start program under section 32j.
(2) From the allocation in subsection (1), there is allocated
to an intermediate district, formed by the consolidation or
annexation of 2 or more intermediate districts or the attachment of
a total intermediate district to another intermediate school
district or the annexation of all of the constituent K-12 districts
of a previously existing intermediate school district which has
disorganized, an additional allotment of $3,500.00 each fiscal year
for each intermediate district included in the new intermediate
district for 3 years following consolidation, annexation, or
attachment.
(3) During a fiscal year, the department shall not increase an
intermediate district's allocation under subsection (1) because of
an adjustment made by the department during the fiscal year in the
intermediate district's taxable value for a prior year. Instead,
the department shall report the adjustment and the estimated amount
of the increase to the house and senate fiscal agencies and the
state budget director not later than June 1 of the fiscal year, and
the legislature shall appropriate money for the adjustment in the
next succeeding fiscal year.
(4) In order to receive funding under this section, an
intermediate district shall demonstrate to the satisfaction of the
department that the intermediate district employs at least 1 person
who is trained in pupil counting procedures, rules, and
regulations.
(5) In addition, from the general fund appropriation in section
11, there is allocated in 2005-2006 an amount not to exceed
$200,000.00 for a strategic planning grant to a consortium or
association of intermediate districts, to conduct a study and make
recommendations on best practices to more efficiently perform
district administrative functions.
(a) The grant awarded under this subsection shall be used to
develop regional plans to be implemented by districts beginning in
2006-2007. Plans devised under this subsection shall identify best
practices for the regional delivery of district school management
functions for at least the following activities:
(i) Purchasing
(ii) Payroll and personnel
(iii) Pupil transportation purchases and planning
(iv) Budgeting and accounting functions
(b) A report of recommended regional plans shall be submitted
to the department no later than December 1, 2005.
(c) Beginning in 2006-2007, each district must be in consortium
with at least one intermediate district for one or more of the
activities prescribed in subsection (a). If a district fails to
meet the requirements of this subsection, the department shall
withhold 5% of the total funds for which the district qualifies
under this act until the district complies with this section. If
the district does not comply with this section by the end of the
fiscal year, the department shall place the amount withheld in an
escrow account until the district complies with this section.
Sec. 94a. (1) There is created within the office of the state
budget director in the department of management and budget the
center for educational performance and information. The center
shall do all of the following:
(a) Coordinate the collection of all data required by state and
federal law from all entities receiving funds under this act.
(b) Collect data in the most efficient manner possible in order
to reduce the administrative burden on reporting entities.
(c) Establish procedures to ensure the validity and reliability
of the data and the collection process.
(d) Develop state and model local data collection policies,
including, but not limited to, policies that ensure the privacy of
individual student data. State privacy policies shall ensure that
student social security numbers are not released to the public for
any purpose.
(e) Provide data in a useful manner to allow state and local
policymakers to make informed policy decisions.
(f) Provide reports to the citizens of this state to allow them
to assess allocation of resources and the return on their
investment in the education system of this state.
(g) Assist all entities receiving funds under this act in
complying with audits performed according to generally accepted
accounting procedures.
(h) Other functions as assigned by the state budget director.
(2) Not later than
August 15, 2004, each Each state
department,
officer, or agency that collects information from districts or
intermediate districts as required under state or federal law shall
make arrangements with the center, and with the districts or
intermediate districts, to have the center collect the information
and to provide it to the department, officer, or agency as
necessary. To the extent that it does not cause financial
hardship, the center shall arrange to collect the information in a
manner that allows electronic submission of the information to the
center. Each affected state department, officer, or agency shall
provide the center with any details necessary for the center to
collect information as provided under this subsection. This
subsection does not apply to information collected by the
department of treasury under the uniform budgeting and accounting
act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal
finance act, 2001 PA 34, MCL 141.2101 to 141.2821; 1961 PA 108, MCL
388.951 to 388.963; or section 1351a of the revised school code,
MCL 380.1351a.
(3) The state budget director shall appoint a CEPI advisory
committee, consisting of the following members:
(a) One representative from the house fiscal agency.
(b) One representative from the senate fiscal agency.
(c) One representative from the office of the state budget
director.
(d) One representative from the state education agency.
(e) One representative each from the department of labor and
economic growth and the department of treasury.
(f) Three representatives from intermediate school districts.
(g) One representative from each of the following educational
organizations:
(i) Michigan association of school boards.
(ii) Michigan association of school administrators.
(iii) Michigan school business officials.
(h) One representative representing private sector firms
responsible for auditing school records.
(i) Other representatives as the state budget director
determines are necessary.
(4) The CEPI advisory committee appointed under subsection (3)
shall provide advice to the director of the center regarding the
management of the center's data collection activities, including,
but not limited to:
(a) Determining what data is necessary to collect and maintain
in order to perform the center's functions in the most efficient
manner possible.
(b) Defining the roles of all stakeholders in the data
collection system.
(c) Recommending timelines for the implementation and ongoing
collection of data.
(d) Establishing and maintaining data definitions, data
transmission protocols, and system specifications and procedures
for the efficient and accurate transmission and collection of data.
(e) Establishing and maintaining a process for ensuring the
accuracy of the data.
(f) Establishing and maintaining state and model local policies
related to data collection, including, but not limited to, privacy
policies related to individual student data.
(g) Ensuring the data is made available to state and local
policymakers and citizens of this state in the most useful format
possible.
(h) Other matters as determined by the state budget director or
the director of the center.
(5) The center may enter into any interlocal agreements
necessary to fulfill its functions.
(6) From the general fund appropriation in section 11, there is
allocated an amount not to
exceed $1,500,000.00 $4,200,000.00
for
2004-2005 2005-2006 to the department of management and budget to
support the operations of the center. The center shall cooperate
with the state education agency to ensure that this state is in
compliance with federal law and is maximizing opportunities for
increased federal funding to improve education in this state. In
addition, from the federal funds appropriated in section 11 for
2004-2005, 2005-2006 there is allocated the following amounts for
2004-2005 amount necessary, estimated at $3,043,200.00 in order to
fulfill federal reporting
requirements: . The center and
the
department shall work cooperatively to develop a cost allocation
plan that pays for center expenses from the appropriate federal
fund revenues.
(a) An amount not to
exceed $835,000.00 $839,000.00
funded from
DED-OESE, title I, disadvantaged children funds.
(b) An amount not to
exceed $63,000.00 $55,700.00 funded
from
DED-OESE, title I, reading first state grant funds.
(c) An amount not to
exceed $46,800.00 $47,000.00 funded
from
DED-OESE, title I, migrant education funds.
(d) An amount not to exceed $285,000.00 funded from DED-OESE,
improving teacher quality funds.
(e) An amount not to exceed $73,000.00 funded from DED-OESE,
drug-free schools and communities funds.
(f) An amount not to exceed $150,000.00 funded under sections
611 to 619 of part B of the individuals with disabilities education
act, title VI of Public Law 91-230, 20 USC 1411 to 1419.
(g) An amount not to exceed $13,500.00 for data collection
systems, funded from DED-NCES, common core data funds.
(h) An amount not to exceed $400,000.00 for the collection and
dissemination of state assessment data, funded from DED-OESE, title
VI, state assessments funds.
(7) In addition, from
the federal funds appropriated in section
11 for the 2003-2004 and
2004-2005 fiscal years, there is allocated
the following amounts each
fiscal year in order to fulfill federal
reporting requirements:
(i) (a) An amount not
to exceed $80,000.00 for data collection
systems, funded from DED-NCES, task award funds.
(j) (b) An amount not
to exceed $100,000.00 for data collection
systems development funded from DED-NCES, performance based data
management initiative.
(7) From the federal funds allocated in subsection (6), an
amount not to exceed $1,000,000.00 from the competitive grants of
DED-OESE, title II, educational technology funds, shall be used to
support the development and implementation of a comprehensive data
management and student tracking system, pursuant to the national
education technology plan issued in January 2005.
(a) Not later than November 30, 2005, the department shall
award a single grant to an eligible partnership that includes an
intermediate district with at least one high-need local school
district and the center.
(b) The data management system under this subsection shall
include longitudinal educational data that creates a functioning
lifelong tracking system for pupils.
(8) Funds allocated under this section that are not expended in
the fiscal year in which they were allocated may be carried forward
to a subsequent fiscal year.
(9) The center may bill departments as necessary in order to
fulfill reporting requirements of state and federal law. The
center may also enter into agreements to supply custom data,
analysis, and reporting to other principal executive departments,
state agencies, local units of government, and other individuals
and organizations. The center may receive and expend funds in
addition to those authorized in subsection (6) to cover the costs
associated with salaries, benefits, supplies, materials and
equipment necessary to provide such data, analysis and reporting
services.
(10) As used in this section:
(a) "DED-NCES" means the United States department of education
national center for education statistics.
(b) "DED-OESE" means the United States department of education
office of elementary and secondary education.
(c) "High-need local school district" means a local educational
agency as defined in the "Enhancing Education Through Technology
Act of 2001", Public Law 107-110.
(d)
(c) "State education
agency" means the department.
Sec. 98. (1) From the general fund money appropriated in
section 11, there is
allocated an amount not to exceed $750,000.00
$1,750,000.00
for 2004-2005
2005-2006 to provide a
grant to the
Michigan virtual university for the development, implementation,
and operation of the Michigan virtual high school and to fund other
purposes described in this section. In addition, from the federal
funds appropriated in
section 11, there is allocated for 2004-2005
2005-2006 an amount estimated at $2,250,000.00 from DED-OESE, title
II, improving teacher
quality funds. If the Michigan virtual
university ceases to operate
the Michigan virtual high school or
fails to perform another of
its functions described in this
section, the department may
operate the Michigan virtual high
school or perform another
function of the Michigan virtual
university described in this
section using the funds allocated
under this section.
(2) The Michigan virtual high school shall have the following
goals:
(a) Significantly expand curricular offerings for high schools
across this state through agreements with districts or licenses
from other recognized
providers. The Michigan virtual university
high
school shall
explore options for providing rigorous civics
curricula online. develop options for providing the Michigan
scholar curriculum identified in the Lieutenant Governor’s
commission on higher education and economic growth report issued in
December 2004.
(b) Create statewide instructional models using interactive
multimedia tools delivered by electronic means, including, but not
limited to, the internet, digital broadcast, or satellite network,
for distributed learning at the high school level.
(c) Provide pupils with opportunities to develop skills and
competencies through on-line learning.
(d) Offer teachers opportunities to learn new skills and
strategies for developing and delivering instructional services.
(e) Accelerate this state's ability to respond to current and
emerging educational demands.
(f) Grant high school diplomas through a dual enrollment method
with districts.
(g) Act as a broker for college level equivalent courses, as
defined in section 1471 of the revised school code, MCL 380.1471,
and dual enrollment courses from postsecondary education
institutions.
(3) The Michigan virtual high school course offerings shall
include, but are not limited to, all of the following:
(a) Information technology courses.
(b) College level equivalent courses, as defined in section
1471 of the revised school code, MCL 380.1471.
(c) Courses and dual enrollment opportunities.
(d) Programs and services for at-risk pupils.
(e) General education development test preparation courses for
adjudicated youth.
(f) Special interest courses.
(g) Professional development programs and services for
teachers.
(h) Michigan scholar curriculum courses.
(4) The state education agency shall sign a memorandum of
understanding with the Michigan virtual university regarding the
DED-OESE, title II, improving teacher quality funds as provided
under this subsection. The memorandum of understanding under this
subsection shall require that the Michigan virtual university
coordinate the following activities related to DED-OESE, title II,
improving teacher quality funds in accordance with federal law:
(a) Develop, and assist districts in the development and use
of, proven, innovative strategies to deliver intensive professional
development programs that are both cost-effective and easily
accessible, such as strategies that involve delivery through the
use of technology, peer networks, and distance learning.
(b) Encourage and support the training of teachers and
administrators to effectively integrate technology into curricula
and instruction.
(c) Coordinate the activities of eligible partnerships that
include higher education institutions for the purposes of providing
professional development activities for teachers,
paraprofessionals, and principals as defined in federal law.
(5) If a home-schooled or nonpublic school student is a
resident of a district that subscribes to services provided by the
Michigan virtual university,
high school, the student
may use the
services provided by the Michigan virtual university high school to
the district without charge to the student beyond what is charged
to a district pupil using the same services.
(6) From the allocations in subsection (1), the amount
necessary, not to exceed $1,250,000.00, shall be used to provide
online professional development for classroom teachers. This
allocation is intended to be
for the second last of
3 years. These
funds may be used for designing and building courses, marketing and
outreach, workshops and evaluation, content acquisition, technical
assistance, project management, and customer support. The Michigan
virtual university shall offer at least 5 hours of online
professional development for classroom teachers under this section
in 2004-2005 2005-2006 without charge to the
teachers or to
districts or intermediate districts.
(7) A district or intermediate district may require a full-time
teacher to participate in at least 5 hours of online professional
development provided by the Michigan virtual university under
subsection (6). Five hours of this professional development shall
be considered to be part of the 51 hours allowed to be counted as
hours of pupil instruction under section 101(10).
(8) In addition, from the federal funds appropriated in section
11, there is allocated for 2005-2006 an amount estimated at
$4,000,000.00 from the DED-OESE, title II, educational technology
grant funds to support e-learning and virtual school initiatives
consistent with the goals contained in the United States national
educational technology plan issued in January 2005. The Michigan
virtual university, which operates the Michigan virtual high
school, shall perform the following tasks:
(a) Examine the curricular and specific course content needs of
Michigan’s middle and high school students that are necessary to
pursue postsecondary education and to participate in the global
economy.
(b) Design, develop and acquire online courses and related
supplemental resources aligned to state standards to create a
comprehensive and rigorous statewide catalog of online courses and
instructional services.
(c) Conduct statewide demonstration pilots to promote new and
innovative online courses and instructional services.
(d) Evaluate existing online teaching and learning practices
and develop continuous improvement strategies to enhance student
achievement.
(e) Provide professional development to promote the integration
OF online instructional resources in classroom settings, and train,
support and assist K-12 Michigan educators in teaching online
courses.
(f) Develop, support and maintain the technology infrastructure
and related software required to deliver online courses and
instructional services to students statewide.
(g) Provide scholarship support to high-need schools to
accelerate student participation in online courses and
instructional services.
(h) Support a statewide 24-hour helpdesk service to assist
students, online teachers, and other school personnel with
technical and end-user needs.
(9) By November 30, 2005, the department shall award a single
grant of $4,000,000.00 to a consortium or partnership established
by the Michigan virtual university. An eligible consortium or
partnership established by the Michigan virtual university shall
include at least one (1) Michigan college or university, at least
one (1) intermediate school district, and at least one (1) high-
need local school district. An eligible consortium or partnership
must demonstrate the following:
(a) Prior success in delivering online courses and
instructional services to K-12 students throughout Michigan.
(b) Expertise in designing, developing and evaluating online K-
12 course content.
(c) Experience in maintaining a statewide help desk service for
students, online teachers, and other school personnel.
(d) Knowledge and experience in providing technical assistance
and support to K-12 schools in the area of online education.
(e) Experience in training and supporting K-12 Michigan
educators to teach online courses.
(f) Demonstrated technical expertise and capacity in managing
complex technology systems.
(g) Experience promoting 21st Century learning skills through
the innovative use of online technologies.
(10)
(8) As used in this section:
(a) "DED-OESE" means the United States department of education
office of elementary and secondary education.
(b) "State education agency" means the department.
(c) "High-need local school district" means a local educational
agency as defined in the "Enhancing Education Through Technology
Act of 2001", Public Law 107-110.
Sec. 99. (1) From the state school aid fund money appropriated
in section 11, there is allocated an amount not to exceed
$2,416,000.00
for 2004-2005 2005-2006 and from the general fund
appropriation in section 11, there is allocated an amount not to
exceed
$84,000.00 for 2004-2005 2005-2006
for implementing the
comprehensive master plan for mathematics and science centers
developed by the department and approved by the state board on
August 8, 2002. In addition, from the federal funds appropriated in
section
11, there is allocated an amount estimated at $3,581,300.00
$4,310,000.00 from DED-OESE, title II, mathematics and science
partnership grants.
(2) Within a service area designated locally, approved by the
department, and consistent with the master plan described in
subsection (1), an established mathematics and science center shall
address 2 or more of the following 6 basic services, as described
in the master plan, to constituent districts and communities:
leadership, pupil services, curriculum support, community
involvement, professional development, and resource clearinghouse
services.
(3) The department shall not award a state grant under this
section to more than 1 mathematics and science center located in a
designated region as prescribed in the 2002 master plan unless each
of the grants serves a distinct target population or provides a
service that does not duplicate another program in the designated
region.
(4) As part of the technical assistance process, the department
shall provide minimum standard guidelines that may be used by the
mathematics and science center for providing fair access for
qualified pupils and professional staff as prescribed in this
section.
(5) Allocations under this section to support the activities
and programs of mathematics and science centers shall be continuing
support grants to all 33 established mathematics and science
centers. Each established mathematics and science center that was
funded in 2003-2004 shall receive state funding in an amount equal
to the amount it received under this section for 2003-2004. If a
center declines state funding or a center closes, the remaining
money available under this section shall be distributed on a pro
rata basis to the remaining centers, as determined by the
department.
(6) In order to receive state funds under this section, a grant
recipient shall allow access for the department or the department's
designee to audit all records related to the program for which it
receives such funds. The grant recipient shall reimburse the state
for all disallowances found in the audit.
(7) Not later than September 30, 2007, the department shall
reevaluate and update the comprehensive master plan described in
subsection (1).
(8) The department shall give preference in awarding the
federal grants allocated in subsection (1) to eligible existing
mathematics and science centers.
(9) In order to receive state funds under this section, a grant
recipient shall provide at least a 10% local match from local
public or private resources for the funds received under this
section.
(10) As used in this section:
(a) "DED" means the United States department of education.
(b) "DED-OESE" means the DED office of elementary and secondary
education.
Sec. 103. (1) Beginning in 2006-2007, and each succeeding
fiscal year through 2009-2010, eligible districts and public school
academies shall receive an additional amount per pupil for each
pupil that successfully graduates from grade 12 with a high school
diploma and is less than 20 years of age.
(2) For 2007-2008, districts and public school academies shall
be allocated an additional amount per pupil for pupils in grade 9
to 12 if the following conditions are met:
(a) Each district or public school academy makes available to
all pupils attending public school in grades 9 to 12, the Michigan
scholar curriculum. The Michigan scholar curriculum shall, at a
minimum, include:
(i) 4 credits in English.
(ii) 3 credits in math, which may include, but are not limited
to, algebra I, algebra II and geometry.
(iii) 3 credits in basic laboratory science, which may include,
but are not limited to, biological science, physical science, and
chemistry.
(iv) 3.5 credits in social studies, which may include, but are
not limited to, world history, American history, economics and
government.
(v) 2 credits in the same foreign language.
(c) Districts and public school academies shall submit to the
department not later than September 1, 2007 a board-adopted
resolution indicating that the district or public school academy
has established the Michigan scholar curriculum. The board-adopted
resolution shall indicate how the payment under this subsection
shall be used to support the curriculum offerings in the Michigan
scholar curriculum.
(3) Beginning in 2010-2011, districts and public school
academies will be eligible for an additional amount per pupil for
each pupil that successfully meets the minimum requirements of the
Michigan scholar curriculum described in subsection (2) and
graduates on or before their twentieth birthday.
Sec. 107. (1) From the appropriation in section 11, there is
allocated an amount not to
exceed $20,000,000.00 for 2004-2005
2005-2006 for adult education programs authorized under this
section.
(2) To be eligible to be a participant funded under this
section, a person shall be enrolled in an adult basic education
program, an adult English as a second language program, a general
educational development (G.E.D.) test preparation program, a job or
employment related program, or a high school completion program,
that meets the requirements of this section, and shall meet either
of the following, as applicable:
(a) If the individual has obtained a high school diploma or a
general educational development (G.E.D.) certificate, the
individual meets 1 of the following:
(i) Is less than 20 years of age on September 1 of the school
year and is enrolled in the state technical institute and
rehabilitation center.
(ii) Is less than 20 years of age on September 1 of the school
year, is not attending an institution of higher education, and is
enrolled in a job or employment-related program through a referral
by an employer.
(iii) Is enrolled in an English as a second language program.
(iv) Is enrolled in a high school completion program.
(b) If the individual has not obtained a high school diploma or
G.E.D. certificate, the individual meets 1 of the following:
(i) Is at least 20 years of age on September 1 of the school
year.
(ii) Is at least 16 years of age on September 1 of the school
year, has been permanently expelled from school under section
1311(2) or 1311a of the revised school code, MCL 380.1311 and
380.1311a, and has no appropriate alternative education program
available through his or her district of residence.
(3) Except as otherwise provided in subsection (4), the amount
allocated under subsection (1) shall be distributed as follows:
(a) For districts and consortia that received payments for
2003-2004 2004-2005 under this section, the amount allocated to
each for 2004-2005 2005-2006 shall be based on the
number of
participants served by the
district or consortium for 2004-2005,
2005-2006 using the amount allocated per full-time equated
participant under subsection (5), up to a maximum total allocation
under this section in an amount equal to the amount the district or
consortium received for 2003-2004
2004-2005 under this
section
before any reallocations
made for 2003-2004 2004-2005
under
subsection (4).
(b) A district or
consortium that received funding in 2003-2004
2004-2005 under this section may operate independently of a
consortium or join or form a
consortium for 2004-2005. 2005-2006.
The allocation for 2004-2005
2005-2006 to the district
or the newly
formed consortium under this subsection shall be determined by the
department of labor and economic growth and shall be based on the
proportion of the amounts that are attributable to the district or
consortium that received
funding in 2003-2004 2004-2005.
A
district or consortium described in this subdivision shall notify
the department of labor and economic growth of its intention with
regard to 2004-2005 2005-2006 by October 1, 2004. 2005.
(4) A district that operated an adult education program in
2003-2004 2004-2005 and does not intend to operate a program in
2004-2005 2005-2006 shall notify the department of labor and
economic growth by October 1, 2004 2005 of its intention. The
funds intended to be allocated under this section to a district
that does not operate a
program in 2004-2005 2005-2006
and the
unspent funds originally allocated under this section to a district
or consortium that subsequently operates a program at less than the
level of funding allocated under subsection (3) shall instead be
proportionately reallocated to the other districts described in
subsection (3)(a) that are operating an adult education program in
2004-2005 2005-2006 under this section.
(5) The amount allocated under this section per full-time
equated participant is $2,850.00 for a 450-hour program. The
amount shall be proportionately reduced for a program offering less
than 450 hours of instruction.
(6) An adult basic education program or an adult English as a
second language program operated on a year-round or school year
basis may be funded under this section, subject to all of the
following:
(a) The program enrolls adults who are determined by an
appropriate assessment to be below ninth grade level in reading or
mathematics, or both, or to lack basic English proficiency.
(b) The program tests individuals for eligibility under
subdivision (a) before enrollment and tests participants to
determine progress after every 90 hours of attendance, using
assessment instruments approved by the department of labor and
economic growth.
(c) A participant in an adult basic education program is
eligible for reimbursement until 1 of the following occurs:
(i) The participant's reading and mathematics proficiency are
assessed at or above the ninth grade level.
(ii) The participant fails to show progress on 2 successive
assessments after having completed at least 450 hours of
instruction.
(d) A funding recipient enrolling a participant in an English
as a second language program is eligible for funding according to
subsection (10) until the participant meets 1 of the following:
(i) The participant is assessed as having attained basic English
proficiency.
(ii) The participant fails to show progress on 2 successive
assessments after having completed at least 450 hours of
instruction. The department of labor and economic growth shall
provide information to a funding recipient regarding appropriate
assessment instruments for this program.
(7) A general educational development (G.E.D.) test preparation
program operated on a year-round or school year basis may be funded
under this section, subject to all of the following:
(a) The program enrolls adults who do not have a high school
diploma.
(b) The program shall administer a G.E.D. pre-test approved by
the department of labor and economic growth before enrolling an
individual to determine the individual's potential for success on
the G.E.D. test, and shall administer other tests after every 90
hours of attendance to determine a participant's readiness to take
the G.E.D. test.
(c) A funding recipient shall receive funding according to
subsection (10) for a participant, and a participant may be
enrolled in the program until 1 of the following occurs:
(i) The participant passes the G.E.D. test.
(ii) The participant fails to show progress on 2 successive tests
used to determine readiness to take the G.E.D. test after having
completed at least 450 hours of instruction.
(8) A high school completion program operated on a year-round
or school year basis may be funded under this section, subject to
all of the following:
(a) The program enrolls adults who do not have a high school
diploma.
(b) A funding recipient shall receive funding according to
subsection (10) for a participant in a course offered under this
subsection until 1 of the following occurs:
(i) The participant passes the course and earns a high school
diploma.
(ii) The participant fails to earn credit in 2 successive
semesters or terms in which the participant is enrolled after
having completed at least 900 hours of instruction.
(9) A job or employment-related adult education program
operated on a year-round or school year basis may be funded under
this section, subject to all of the following:
(a) The program enrolls adults referred by their employer who
are less than 20 years of age, have a high school diploma, are
determined to be in need of remedial mathematics or communication
arts skills and are not attending an institution of higher
education.
(b) An individual may be enrolled in this program and the grant
recipient shall receive funding according to subsection (10) until
1 of the following occurs:
(i) The individual achieves the requisite skills as determined
by appropriate assessment instruments administered at least after
every 90 hours of attendance.
(ii) The individual fails to show progress on 2 successive
assessments after having completed at least 450 hours of
instruction. The department of labor and economic growth shall
provide information to a funding recipient regarding appropriate
assessment instruments for this program.
(10) A funding recipient shall receive payments under this
section in accordance with the following:
(a) Ninety percent for enrollment of eligible participants.
(b) Ten percent for completion of the adult basic education
objectives by achieving an increase of at least 1 grade level of
proficiency in reading or mathematics; for achieving basic English
proficiency; for passage of the G.E.D. test; for passage of a
course required for a participant to attain a high school diploma;
or for completion of the course and demonstrated proficiency in the
academic skills to be learned in the course, as applicable.
(11) As used in this section, "participant" means the sum of
the number of full-time equated individuals enrolled in and
attending a department-approved adult education program under this
section, using quarterly participant count days on the schedule
described in section 6(7)(b).
(12) A person who is not eligible to be a participant funded
under this section may receive adult education services upon the
payment of tuition. In addition, a person who is not eligible to
be served in a program under this section due to the program
limitations specified in subsection (6), (7), (8), or (9) may
continue to receive adult education services in that program upon
the payment of tuition. The tuition level shall be determined by
the local or intermediate district conducting the program.
(13) An individual who is an inmate in a state correctional
facility shall not be counted as a participant under this section.
(14) A district shall not commingle money received under this
section or from another source for adult education purposes with
any other funds of the district. A district receiving adult
education funds shall establish a separate ledger account for those
funds. This subsection does not prohibit a district from using
general funds of the district to support an adult education or
community education program.
(15) A district or intermediate district receiving funds under
this section may establish a sliding scale of tuition rates based
upon a participant's family income. A district or intermediate
district may charge a participant tuition to receive adult
education services under this section from that sliding scale of
tuition rates on a uniform basis. The amount of tuition charged
per participant shall not exceed the actual operating cost per
participant minus any funds received under this section per
participant. A district or intermediate district may not charge a
participant tuition under this section if the participant's income
is at or below 200% of the federal poverty guidelines published by
the United States department of health and human services.
Sec. 107b. (1) The department may begin the development of a
pilot project for an adult learning system in 2 Michigan works!
regions
as described under this section. If the department begins
development
of the pilot project, the pilot project shall be
developed
and administered as provided under this section. By May
1, 2005, the Michigan works! agencies selected by the department
will develop, distribute, review, and make funding recommendations
with respect to requests for proposals for services to be provided
during the 2005-2006 school year.
(2) Not later than
February 28, 2005, the department, based on
the recommendations of the
advisory committee established under
subsection (5), shall review
funding requirements under subsection
(7) and make funding
recommendations for the pilot project for
2005-2006. The recommended
funding shall not exceed the amount of
the funds that were
allocated for 2004-2005 under section 107 to
the adult education
providers located within the Michigan works!
regions chosen for the pilot
project. In the pilot project
regions, these funds shall
instead be distributed to the agencies
selected by the advisory
committee to participate as providers in
the pilot adult learning
system. These agencies shall be selected
on a competitive basis. Funds that would be allocated under
section 107 to adult education providers located within the 2
Michigan works! regions shall instead be distributed to the 2
Michigan works! agencies selected by the department to participate
in the pilot adult learning system. Not more than 5% of a grant
awarded to the 2 Michigan works! agencies under this section may be
used for program administration, including contracting for the
provision of career and educational information, counseling
services, and assessment services.
(3) To be eligible to be enrolled as a participant in a pilot
project adult learning system, an individual shall be at least 16
years of age as of September 1 of the immediately preceding state
fiscal year and shall meet the following, as applicable:
(a) If the individual has obtained a high school diploma or a
general educational development (G.E.D.) certificate, the
individual is determined to have English language proficiency,
reading, writing, or math skills below employment trainability
skills standards as determined by tests approved by the department
and is not enrolled in a postsecondary institution. An individual
who has obtained a high school diploma is not eligible for
enrollment in a G.E.D. test preparation program.
(b) If the individual has not obtained a high school diploma or
a G.E.D. certificate, the individual has not attended a secondary
institution for at least 6 months before enrollment in a pilot
project adult learning system and is not enrolled in a
postsecondary institution.
(4) Subject to
subsection (7), the advisory committee
established under subsection
(5) shall determine the amount of the
funding under this section
that may be used for program
administration, including
contracting for the provision of career
and educational information,
counseling services, and assessment
services. The department shall create an advisory committee
consisting of the department, adult educators, Michigan works!,
workforce development board members, and community-based
organizations
to assist in the development of the pilot projects.
(5) The department
shall establish an adult learning system
advisory committee for the
purposes of this section. All of the
following apply to this
advisory committee: ...............
(a) The advisory
committee shall consist of the following 7
members:
(i) A representative of the
department, appointed by the
director of the department.
(ii) The department's director
of adult education.
(iii) A representative of the Michigan works! agency, appointed
by the director of the
department.
(iv) The executive director of
the Michigan association of
community and adult
education.
(v) A person who is currently
serving as an adult education
educator, appointed by the
director of the department.
(vi) A person who is currently
serving as an administrator of a
school district adult
education program, appointed by the director
of the department.
(vii) A representative of a
community-based organization,
appointed by the director of
the department.
(b) The advisory
committee shall develop and review proposals
for delivery of adult
learning services under the pilot project,
shall select agencies to
participate as providers in the pilot
project, and shall do all of
the following:
(i) Develop a strategic plan
to identify adult learning
providers and document the
need for an adult learning system in a
specific region.
(ii) Provide guidance to a
pilot project adult learning system
on referring, enrolling,
promoting, and recruiting for the pilot
project.
(iii) Ensure coordination of a
pilot project adult learning
system with other available
resources in the region, such as
schools, postsecondary
institutions, job training programs, and
social service agencies.
(c) A member of the
advisory committee shall serve without
compensation. However, a
member may be reimbursed for the member's
actual and necessary
expenses incurred in the performance of the
member's duties as a member
of the advisory committee.
(d) A majority of the
members of the advisory committee
constitute a quorum for the
transaction of business at a meeting of
the advisory committee. A
majority of the members present and
serving are required for
official action of the advisory committee.
(e) The business that
the advisory committee may perform shall
be conducted at a public
meeting of the advisory committee held in
compliance with the open
meetings act, 1976 PA 267, MCL 15.261 to
15.275.
(f) A writing
prepared, owned, used, in the possession of, or
retained by the advisory
committee in the performance of an
official function is subject
to the freedom of information act,
1976 PA 443, MCL 15.231 to
15.246.
(6) To be eligible
for funding under this section, a pilot
project adult learning
system shall do all of the following:
(a) Provide services
in compliance with the guidelines
established by the advisory
committee under subsection (5).
(b) Report outcomes
and other measurements of program
performance into the Michigan adult education reporting
system
administered by the
department.
(5) A Michigan works! agency authorized to participate in a
pilot adult learner system shall comply with the following
requirements in a manner approved by the department:
(a) The Michigan works! agency shall document the need for
adult learning programs in its region.
(b) The Michigan works! agency shall develop a strategic plan
that does all of the following:
(i) Identifies multiple potential adult learning providers,
including community-based organizations. Eligible providers shall
have programs that are open entry/open exit, allowing for the
immediate start of training and exit of system upon completion of
learning goals.
(ii) Provides an efficient referral process for participants to
enroll with appropriate adult learning providers.
(iii) Coordinates the pilot adult learner system with other
available resources in the community, such as schools,
postsecondary institutions, job training programs, and social
service agencies.
(iv) Contains regional promotional and recruitment strategies to
inform potential participants, referral agencies, special targeted
groups, and the general public of available resources.
(v) Provides adequate job and postsecondary education
counseling services.
(vi) The local workforce development board shall report
participant outcomes and other measurements of program performance
into the Michigan adult education reporting system (MAERS)
administered by the department.
(vi) The Michigan works! agency shall allow access for the
department or its designee to audit all records related to the
pilot adult learning system for which it receives funds. The
agency shall reimburse this state for all disallowances found in
the audit.
(6) Criteria for grant awards will be developed in a manner to
promote, to the fullest extent possible based on the service needs
of the community as identified by the Michigan works! agency under
the strategic plan required by subsection (5)(b), the maximum
feasible geographic access by students and to services. Criteria
shall also encourage the development of partnerships with
organizations that offer a variety of community services.
(7) The department shall ensure that at least 80% of the
funding under this section is used for adult basic education, high
school completion, G.E.D. test preparation, or English as a second
language proficiency, and
shall ensure that these services high
school completion and G.E.D. test preparation are provided by a
certified teacher. The remainder of the services may include
training in employment
trainability skills. The department shall
reimburse eligible adult
learning providers participating in a
pilot project adult learning
system under this section as follows:
(8) The Michigan works! agency in the pilot adult learning
system shall award competitive grants to eligible adult learning
providers for the purpose of providing adult learning programs in
their region. Applications shall be in the form and manner
prescribed by the department. The Michigan works! agency shall
reimburse eligible adult learning providers under this section as
follows:
(a) The contract amount shall be allocated to eligible adult
learning providers based upon the following performance standards
as measured in a manner approved by the department:
(i) The percentage of participants taking both a pretest and a
posttest in English language proficiency, reading, writing, and
math.
(ii) The percentage of participants showing improvement toward
goals identified in their individual adult learner plan.
(iii) The percentage of participants achieving their terminal
goals as identified in their individual adult learner plan.
(b) A provider is eligible for reimbursement for a participant
in an adult learning program until the participant's reading,
writing, or math proficiency, as applicable, is assessed at
employment trainability skills standards or the participant fails
to show progress on 2 successive assessments as determined by the
department.
(c) A provider is eligible for reimbursement for a participant
in an English as a second language program until the participant is
assessed as having attained basic English proficiency or the
participant fails to show progress on 2 successive assessments as
determined by the department.
(d) A provider is eligible for reimbursement for a participant
in a G.E.D. test preparation program until the participant passes
the G.E.D. test or the participant fails to show progress on 2
successive assessments as determined by the department.
(e) A provider is eligible for reimbursement for a participant
in a high school completion program until the participant earns a
high school diploma or the participant fails to show progress as
determined by the department.
(9) (8) An individual A person who is not eligible to be a
participant funded under this section may receive adult learning
services in a pilot project
adult learning system upon the payment
of tuition or fees for service. The tuition or fee level shall be
determined by the adult learning provider and approved by the
department's director of
adult education
Michigan
works! agency.
(10)
(9)
A provider shall not be reimbursed under this section
for an individual who is an inmate in a state correctional
facility.
(11)
(10)
A provider shall allow access for the department
Michigan works! agency or its designee to audit all records related
to the pilot project
adult learning system for which it receives
funds. The adult learning provider shall reimburse this state for
all disallowances found in the audit.
(12)
(11)
As used in this section:
(a) "Adult learning system" means a system approved by the
department that improves reading, writing, and math skills to
employment trainability skills standards; an English as a second
language program; a G.E.D. preparation program; a high school
completion program; or a workforce readiness program that enhances
employment opportunities.
(b) "Department" means the department of labor and economic
growth.
(c) "Eligible adult learning provider" means a district, public
school academy, intermediate district, community college,
university, community-based organization, or other organization
approved by the department that provides adult learning systems
under a contract with the Michigan works! agency that is part of
the pilot project
adult learning system.
(d) "Employment trainability skills standard" means a
proficiency level approved by the department in English language,
reading, writing, or mathematics, or any and all of these, as
determined by results from assessments approved for use by the
department.
(e) "Michigan works! agency" means the agency designated by the
chief elected official and approved by the governor to administer
the portion of the Michigan works! system for that local workforce
investment area.
(f) "Participant" means an individual enrolled in an adult
learning program and receiving services from an eligible adult
learning provider.
(g) "Pilot project" means a temporary project established to
deliver a new adult learning system.
Sec. 147. (1) The
allocation for 2004-2005 2005-2006
for the
public school employees' retirement system pursuant to the public
school employees retirement act of 1979, 1980 PA 300, MCL 38.1301
to 38.1408, shall be made using the entry age normal cost actuarial
method and risk assumptions adopted by the public school employees
retirement board and the department of management and budget. The
annual level percentage of payroll contribution rate is estimated
14.87% 16.34% for the 2004-2005 2005-2006 state fiscal year. The
portion of the contribution rate assigned to districts and
intermediate districts for each fiscal year is all of the total
percentage points. This contribution rate reflects an amortization
period of 32 31 years for 2004-2005 2005-2006. The public school
employees' retirement system board shall notify each district and
intermediate district by February 28 of each fiscal year of the
estimated contribution rate for the next fiscal year.
(2) It is the intent of the legislature that the amortization
period described in section 41(2) of the public school employees
retirement act of 1979, 1980 PA 300, MCL 38.1341, be reduced to 30
years by the end of the 2005-2006 state fiscal year by reducing the
amortization period by not more than 1 year each fiscal year.
Sec. 158b. Each district that receives federal impact aid
annually shall report to the center, in the form and manner
prescribed by the department center, the amount of that aid the
district received.
Sec. 164c. A district or intermediate district shall not use
funds appropriated under this act to purchase foreign goods or
services, or both, if competitively priced and of comparable
quality American goods or services, or both, are available of
comparable
quality are available. Preference should be given to
goods or services, or both, manufactured or provided by Michigan
businesses if they are competitively priced and of comparable
quality.
Enacting section 1. In accordance with section 30 of article I
of the state constitution of 1963, total state spending in this
amendatory act from state sources for fiscal year 2005-2006 is
estimated at $11,435,194,600.00 and state appropriations to be paid
to local units of government for fiscal year 2005-2006 are
estimated at $11,372,594,600.00.
Enacting section 2. Sections 11b, 32f, 98b, and 166 of the state
school aid act of 1979, 1979 PA 94, MCL 388.1611b, MCL 388.1632f,
MCL 388.1698b and MCL 388.1766, are repealed effective October 1,
2005.
Enacting section 3. (1) Except as otherwise specified
in subsection (2), this act shall take effect October 1, 2005.
(2) Sections 11, 11a, 11j, 22a, 22b, 51a, 51c, and 107b, as
amended by this amendatory act, take effect upon enactment of this
amendatory act.