March 10, 2005, Introduced by Senator GARCIA and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11, 11b, 11f, 11g, 11j, 20, 20j, 22a, 22b,
22d, 24, 26a, 31a, 31d, 32c, 32d, 32j, 39a, 41, 41a, 51a, 51c, 51d,
53a, 54, 56, 57, 61a, 62, 74, 81, 94a, 98, 98b, 99, 107, and 147
(MCL 388.1611, 388.1611b, 388.1611f, 388.1611g, 388.1611j,
388.1620, 388.1620j, 388.1622a, 388.1622b, 388.1622d, 388.1624,
388.1626a, 388.1631a, 388.1631d, 388.1632c, 388.1632d, 388.1632j,
388.1639a, 388.1641, 388.1641a, 388.1651a, 388.1651c, 388.1651d,
388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662,
388.1674, 388.1681, 388.1694a, 388.1698, 388.1698b, 388.1699,
388.1707, and 388.1747), sections 11 and 51a as amended by 2004 PA
518, sections 11b, 11f, 11g, 11j, 20, 20j, 22a, 22b, 24, 26a, 31d,
32c, 32d, 32j, 39a, 41, 41a, 51c, 51d, 53a, 54, 56, 57, 61a, 62,
74, 81, 94a, 98, 99, 107, and 147 as amended and section 22d as
added by 2004 PA 351, and sections 31a and 98b as amended by 2004
PA 593, and by adding section 26b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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
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
from the general fund. For the fiscal year ending September 30,
2006, there is appropriated for the public schools of this state
and certain other state purposes relating to education the sum of
$11,153,331,200.00 from the state school aid fund established by
section 11 of article IX of the state constitution of 1963 and the
sum of $27,700,000.00 from the general 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, 26b, 31d, 51a(2), 51a(12), 51c, 53a, and
56 shall be made in full. In addition, for districts beginning
operations after 1994-95 that qualify for payments under section
22b, payments under section 22b shall be made so that the
qualifying districts receive the lesser of an amount equal to the
1994-95 foundation allowance of the district in which the district
beginning operations after 1994-95 is located or $5,500.00. The
amount of the payment to be made under section 22b for these
qualifying districts shall be as calculated under section 22a, with
the balance of the payment under section 22b being subject to the
proration otherwise provided under this subsection and subsection
(4). 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 fund.
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. 11b. From the general fund money appropriated in section
11,
there is allocated for 2004-2005 2005-2006 the sum of
$3,700,000.00 for deposit into the school aid stabilization fund
created in section 11a.
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
appropriations in section 11, there is allocated for this section
an
amount not to exceed $141,000.00 $35,000,000.00 for the
fiscal
year
ending September 30, 2005 2006. There is allocated for this
section an amount not to exceed $35,000,000.00 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 appropriation in section 11, there is
allocated
an amount not to exceed $41,100,000.00 $44,500,000.00
for 2004-2005
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. 20. (1) For 2003-2004 and for 2004-2005, the basic
foundation allowance is $6,700.00 per membership pupil. For 2005-
2006, the basic foundation allowance is $6,767.00.
(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.
(e) For 2005-2006, a district's foundation allowance is as
follows:
(i) If the district's foundation allowance for 2004-2005 was
$6,900.00 or less, the district's foundation allowance for 2005-
2006 is an amount equal to the sum of the district's foundation
allowance for 2004-2005 plus 1% of the district's foundation
allowance for 2004-2005.
(ii) If the district's foundation allowance for 2004-2005 was
greater than $6,900.00, the district's foundation allowance for
2005-2006 is an amount equal to the greater of the sum of the
district's foundation allowance for 2004-2005 plus 0.5% of the
district's foundation allowance for 2004-2005, or $6,969.00.
(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), the allocation calculated under this section shall
not include the adjustment described in subsection (19). 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.
(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.
(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.
(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.
(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.
(20) For a district that is a qualifying school district with
a school reform board in place under part 5a of the revised school
code, MCL 380.371 to 380.376, the district's foundation allowance
for 2002-2003 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. 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.
(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.
(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.
(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.
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 for 2004-2005
$6,472,000,000.00 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 for 2004-2005
$3,011,600,000.00 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 for 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. 24. (1) Subject to subsection (2), from the appropriation
in
section 11, there is allocated for
2004-2005 2005-2006 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 2005-2006. For the purposes
of
this section, "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.
(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.
(3) Special education pupils funded under section 53a shall
not be funded under this section.
Sec. 26a. From the general fund appropriation in section 11,
there
is allocated an amount not to exceed
$36,200,000.00
$11,300,000.00, and from the state school aid fund appropriation in
section 11, there is allocated an amount not to exceed
$33,700,000.00, 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 2005
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
the appropriations in 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
section 2154 of the natural resources and environmental protection
act, 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 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 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 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.
(5) A grant recipient receiving funds under this section shall
report to the department no later than October 15 of each year 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 in section 81, 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.
(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. 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 $1,500,000.00
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.
(b) (c)
"DED-OESE" means the DED office of
elementary and
secondary education.
(c) (d)
"DED-OVAE" means the DED office of
vocational and
adult education.
(d) (e)
"HHS" means the United States
department of health
and human services.
(e) (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 2005-2006 an amount not to
exceed
$905,683,000.00
$960,383,000.00 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 $345,850,000.00 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 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 2005-2006 the amount
necessary, estimated
at $168,900,000.00
$188,500,000.00 for 2003-2004 2005-2006, 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 2005-2006 the amount
necessary, estimated
at $2,400,000.00
$1,900,000.00, 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 between 1996-97 and subsequent fiscal years.
Adjustments for reductions in special education program operations
shall be made in a manner determined by the department and shall
include adjustments for program 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 2005-2006 to
districts or intermediate districts 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
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:
(a) "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. 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. A
district or intermediate district that employed staff to provide
special education services in 2003-2004 and that in a subsequent
year receives the same type of services from another district or
intermediate district shall report the cost of the service for
special education reimbursement purposes under this act. A district
or intermediate district that provides services in subsequent years
to another district or intermediate district shall not report the
salaries and benefits paid to staff who provide those services for
reimbursement under this act.
(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
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 2005-2006 the amount
necessary, estimated
at $6,100,000.00
$6,300,000.00, 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 2005-2006 the amount
necessary,
estimated
at $659,400,000.00 $694,800,000.00, 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 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 general fund money
appropriated in section 11, there is allocated an amount not to
exceed $50,000.00
for 2004-2005 to applicant intermediate
districts
that $5,000,000.00 to the
Michigan virtual university to
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 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 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, 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% of the amount appropriated under this subsection for 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.
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 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 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 2005-2006
in order to fulfill federal reporting requirements:
(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 2005-2006
fiscal year, there is allocated the following amounts each fiscal
year in order to fulfill federal reporting requirements:
(a) An amount not to exceed $80,000.00 for data collection
systems, funded from DED-NCES, task award funds.
(b) An amount not to exceed $100,000.00 for data collection
systems development funded from DED-NCES, performance based data
management initiative.
(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.
(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) "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
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
shall explore options for providing rigorous civics curricula
online.
(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.
(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, the student may use the services
provided by the Michigan virtual university 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 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
each fiscal year beginning in 2004-2005 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) 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.
Sec. 98b. (1) From the school aid stabilization fund created
in
section 11a, there is appropriated and allocated for 2004-2005
2005-2006 an amount not to exceed $3,700,000.00 for the freedom to
learn program described in this section. In addition, from the
federal
funds appropriated in section 11 there is allocated for
2004-2005
2005-2006 an amount not to exceed $10,343,200.00
$5,000,000.00 from the competitive grants of DED-OESE, title II,
educational
technology grants funds. , and an amount not to exceed
$7,000,000.00
from funds carried forward from 2003-2004 from
unexpended
DED-OESE, title II, educational technology grants funds.
(2) The allocations in subsection (1) shall be used to
develop, implement, and operate the freedom to learn program and
make program grants. The goal of the program is to achieve one-to-
one access to wireless technology for K-12 pupils through statewide
and local public-private partnerships. To implement the program,
the state education agency shall sign a memorandum of understanding
with the Michigan virtual university that provides for joint
administration of program grants under this subsection. However,
beginning January 1, 2005, Ferris state university shall perform
the functions of the Michigan virtual university under this section
and the funds allocated to the Michigan virtual university under
this section are instead allocated to Ferris state university. Not
later than January 31, 2005, the state education agency shall enter
into a memorandum of understanding with Ferris state university
that provides for this transfer of functions. The Michigan virtual
university or Ferris state university, as applicable, and the state
education agency shall make grants to districts as described in
this section. In awarding the grants, the Michigan virtual
university or Ferris state university, as applicable, and the state
education agency shall give priority to applications that
demonstrate that the district's program will meet all of the
following:
(a) Will be ready for immediate implementation and will have
begun professional development on technology integration in the
classroom.
(b) Will utilize state structure and resources for
professional development, as coordinated by the Michigan virtual
university or Ferris state university, as applicable.
(c) Will opt to participate in the statewide partnership
described in subsection (9).
(3) The amount of program grants to districts is estimated at
$250.00
per pupil in membership in grade 6 in
2004-2005 2005-
2006, or in another grade allowed in this section, or per grade 6
teacher if the funding is awarded in a ratio of at least 20 pupils
funded for each teacher funded. The state education agency and the
Michigan virtual university or Ferris state university, as
applicable, shall establish grant criteria that maximize the
distribution of federal funds to achieve the $250.00 per pupil or
teacher in districts that qualify for federal funds. To qualify for
a grant under this section, a district shall submit an application
to the state education agency and the Michigan virtual university
or Ferris state university, as applicable, and complete the
application process established by the state education agency and
the Michigan virtual university or Ferris state university, as
applicable. The application shall include at least all of the
following:
(a) If the district is applying for federal funds, how the
district will meet the requirements of the competitive grants under
DED-OESE, title II, part D.
(b) How the district will provide the opportunity for each
pupil in membership in grade 6 to receive a wireless computing
device. If the district has already achieved one-to-one wireless
access in grade 6 or if the district's school building grade
configuration makes implementation of the program for grade 6
impractical, the district may apply for a grant for the next
highest grade. If the district does not have a grade 6 or higher,
the district may apply for funding for the next lowest grade level.
If the district operates 1 or more schools that are not meeting
adequate yearly progress, as determined by the department, and that
contain grade 6, the district may apply for funding for a school
building-wide program for 1 or more of those schools. A public
school academy that does not offer a grade higher than grade 5 may
apply to receive a grant under this section for pupils in the
highest grade offered by the public school academy.
(c) The district shall submit a plan describing the uses of
the grant funds. The plan shall describe a plan for professional
development on technology integration, content and curriculum, and
local partnerships with the other districts and representatives
from businesses, industry, and higher education. The plan shall
include at least the following:
(i) The academic achievement goals, which may include, but are
not limited to, goals related to mathematics, science, and language
arts.
(ii) The engagement goals, which may include, but are not
limited to, goals related to retention rates, dropout rates,
detentions, and suspensions.
(iii) A commitment that at least 25% of the total local budget
for the program will be used on professional development on
technology integration in the classroom.
(d) A 3- to 5-year plan or funding model for increasing the
share that is borne locally of the expenditures for one-to-one
wireless access. The Michigan virtual university or Ferris state
university, as applicable, shall provide districts with sample
local plans and funding models for the purposes of this subdivision
and with information on available federal and private resources.
(e) How the district will amend its local technology plan as
required under state and federal law to reflect the program under
this section.
(4) A district that receives a grant under this section shall
provide at least a $25.00 per pupil match for grant money received
under this section from local public or private resources.
(5) The amount of a grant under this section to a single
district for a fiscal year shall not exceed 25% of the total amount
available for grants under this section for that fiscal year.
(6) A district that received money under section 98 in 2002-
2003 for a wireless technology grant is eligible to receive a grant
under this section.
(7) The federal funding under subsection (1) shall be used
first to provide the grants under this subsection. A district
described in this subsection shall apply to the Michigan virtual
university or Ferris state university, as applicable, and the state
education agency for a grant in the form and manner prescribed by
the department. An application under this section is not subject to
the requirements of subsection (3) if the application demonstrates
that the program will meet all of the following:
(a) Will continue as a demonstration program.
(b) Will provide regional assistance to schools that are not
meeting adequate yearly progress, as determined by the department,
and to new grant recipients, as directed by the state education
agency and the Michigan virtual university or Ferris state
university, as applicable.
(c) Will seek to expand its existing wireless technology
initiatives.
(8) The state funding under subsection (1) shall be used first
to provide grants to districts that received money under section 98
in 2002-2003 and were designated as program application sites.
(9) The department of management and budget shall establish a
statewide public-private partnership to implement the program. The
department of management and budget shall select a program partner
through a request for proposals process for a total learning
technology package that includes, but is not limited to, a wireless
laptop, software, professional development, service, and support,
and for management by a single point of contact individual
responsible for the overall implementation. The proposal selected
shall achieve significant efficiencies and economies of scale and
be interoperable with existing technologies. The private partner
selected in the request for proposals process to partner with the
state must possess all of the following:
(a) Experience in the development and successful
implementation of large-scale, school-based wireless technology
projects.
(b) Proven technical ability to deliver a total solutions
package of learning technology for elementary and secondary
students and teachers.
(c) Results-based education solutions to increase student
achievement and advance professional development for teachers.
(d) Ability to coordinate, utilize, and expand existing
technology infrastructures and professional development delivery
systems within school districts and regions.
(e) Ability to provide a wireless computing device that is
able to be connected to the wireless network and is able to access
a school's preexisting local network and the internet both
wirelessly in the school and through dial-up or other remote
connection from the home or elsewhere outside school.
(10) A district may elect to purchase or lease wireless
computing devices from a vendor other than the statewide
partnership described in subsection (9) if the Michigan virtual
university or Ferris state university, as applicable, determines
that the vendor meets the requirements of subdivisions (a) to (d)
of subsection (9) and the vendor is identified in the district's
grant application.
(11) The state education agency shall sign a memorandum of
understanding with the Michigan virtual university regarding DED-
OESE, title II, educational technology grants, as provided under
this subsection. Not later than January 31, 2005, the state
education agency shall enter into a memorandum of understanding
with Ferris state university to provide for the transfer of
functions under this subsection. The Michigan virtual university or
Ferris state university, as applicable, shall coordinate activities
described in this subsection with the freedom to learn grants
described under this section. The memorandum of understanding shall
require that the Michigan virtual university or Ferris state
university, as applicable, coordinate the following state
activities related to DED-OESE, title II, educational technology
grants in accordance with federal law:
(a) Assist in the development of innovative strategies for the
delivery of specialized or rigorous academic courses and curricula
through the use of technology, including distance learning
technologies.
(b) Establish and support public-private initiatives for the
acquisition of educational technology for students in high-need
districts.
(12) Funds allocated under this section that are not expended
in the state fiscal year for which they were allocated may be
carried forward to a subsequent state fiscal year.
(13) It is the intent of the legislature that all plans or
applications submitted by the state education agency to the United
States department of education relating to the distribution of
federal funds under this section are for the purposes described in
this section.
(14) The state education agency shall ensure that the program
goals and plans for the freedom to learn program are contained in
the state technology plan required by federal law.
(15) From the funds allocated under this section, an amount
not to exceed $2,750,000.00 is allocated to the Michigan virtual
university or Ferris state university, as applicable, to be used
for statewide activities, as follows:
(a) An amount estimated at $1,700,000.00 to develop a
professional development network in partnership with other
statewide entities for professional development on technology
integration in the classroom.
(b) An amount estimated at $250,000.00 for development of a
content resource package that will include on-line coursework
content.
(c) An amount estimated at $300,000.00 to Ferris state
university to develop or purchase an on-line assessment system to
supplement the Michigan education assessment program tests and the
Michigan merit examination and provide immediate feedback on pupil
achievement. The assessment system shall include high-quality tests
aligned to the state curriculum framework and tests that can be
customized by teachers and integrated with on-line instructional
resources. The state education agency shall work in partnership
with Ferris state university to implement the assessment program.
The state education agency shall give first priority in
implementing the assessment systems to districts not meeting
adequately yearly progress requirements as established by the
federal no child left behind act of 2001, Public Law 107-110, and
to schools participating in grant programs under this section.
(d) An amount not to exceed $500,000.00 for comprehensive
statewide evaluation of current and future projects under this
section and for statewide administration of the freedom to learn
program.
(16) Notwithstanding section 17b, payments under this section
may be made pursuant to an agreement with the department.
(17) It is the intent of the legislature that this state will
seek to raise private funds for the current and future funding of
the freedom to learn program under this section and all of the
program components.
(18) 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.
Sec.
99. (1) From the state school aid general fund money
appropriated in section 11, there is allocated to the Michigan
virtual
university an amount not to exceed $2,416,000.00
for 2004-
2005
and from the general fund appropriation in section 11, there
is
allocated an amount not to exceed $84,000.00 for 2004-2005
$5,000,000.00 for 2005-2006 to award grants and provide technical
assistance 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 Michigan virtual university 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
Michigan virtual university 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 Michigan virtual university 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. 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
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 under this section before any reallocations
made for 2003-2004 under subsection (4).
(b) A district or consortium that received funding in 2003-
2004 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. 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
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.
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.
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 $11,181,031,200.00 and state appropriations to be paid
to local units of government for fiscal year 2005-2006 are
estimated at $11,122,531,200.00.