HB-6726, As Passed Senate, December 18, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6726

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 20, 20j, and 32b (MCL 388.1620, 388.1620j, and

388.1632b), as amended by 2008 PA 268.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 20. (1) For 2007-2008, the basic foundation allowance is

$8,433.00. For 2008-2009, the basic foundation allowance is

$8,489.00.

(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) For 2007-2008, for a district that had a foundation

allowance for 2006-2007, including any adjustment under subdivision

(f), that was at least equal to $7,108.00 but less than $8,385.00,

the district shall receive a foundation allowance in an amount

equal to the sum of the district's foundation allowance for 2006-

2007 plus the difference between $96.00 and [($48.00 minus $20.00)

times (the difference between the district's foundation allowance

for 2006-2007, including any adjustment under subdivision (f), and

$7,108.00) divided by $1,325.00]. Beginning in 2008-2009, for a

district that had a foundation allowance for the immediately

preceding state fiscal year that was at least equal to the sum of

$7,108.00 plus the total dollar amount of all adjustments made from

2006-2007 to the immediately preceding state fiscal year in the

lowest foundation allowance among all districts, but less than 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 difference

between twice the dollar amount of the adjustment from the

immediately preceding state fiscal year to the current state fiscal

year made in the basic foundation allowance and [(the dollar amount

of the adjustment from the immediately preceding state fiscal year

to the current state fiscal year made in the basic foundation

allowance minus $20.00) times (the difference between the

district's foundation allowance for the immediately preceding state

fiscal year and the sum of $7,108.00 plus the total dollar amount

of all adjustments made from 2006-2007 to the immediately preceding

state fiscal year in the lowest foundation allowance among all

districts) divided by the difference between the basic foundation

allowance for the current state fiscal year and the sum of

$7,108.00 plus the total dollar amount of all adjustments made from

2006-2007 to the immediately preceding state fiscal year in the

lowest foundation allowance among all districts]. However, the

foundation allowance for a district that had less than the basic

foundation allowance for the immediately preceding state fiscal

year shall not exceed the basic foundation allowance for the

current state fiscal year.

(b) Except as otherwise provided in this subsection, beginning

in 2008-2009, 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.

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.

(d) 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.

(e) For a district that received a payment under section 22c

as that section was in effect 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 section 22c as that section was in effect for 2001-

2002.

(f) For a district that received a payment under section 22c

as that section was in effect for 2006-2007, the district's 2006-

2007 foundation allowance shall be considered to have been an

amount equal to the sum of the district's actual 2006-2007

foundation allowance as otherwise calculated under this section

plus the per pupil amount of the district's equity payment for

2006-2007 under section 22c as that section was in effect for 2006-

2007.

(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 the basic foundation

allowance for the current state fiscal year, whichever is less,

minus the difference between the sum of the product of the taxable

value per membership pupil of all property in the district that is

nonexempt property times the district's certified mills and, for a

district with certified mills exceeding 12, the product of the

taxable value per membership pupil of property in the district that

is commercial personal property times the certified mills minus 12

mills and the quotient of the ad valorem property tax revenue of

the district captured under tax increment financing acts divided by

the district's membership excluding special education pupils. For a

district described in subsection (3)(c), 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 sum of the

product of the taxable value per membership pupil of all property

in the district that is nonexempt property times the district's

certified mills and, for a district with certified mills exceeding

12, the product of the taxable value per membership pupil of

property in the district that is commercial personal property times

the certified mills minus 12 mills and the quotient of the ad

valorem property tax revenue of the district captured under tax

increment financing acts 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.

(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) For 2007-2008, 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 $7,475.00, whichever is less. Beginning in

2008-2009, 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 state

maximum public school academy allocation, whichever is less.

Notwithstanding section ~~101(2)~~ 101, 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

sum of the product of the taxable value per membership pupil of all

property in the district that is nonexempt property times the

district's certified mills and, for a district with certified mills

exceeding 12, the product of the taxable value per membership pupil

of property in the district that is commercial personal property

times the certified mills minus 12 mills and the quotient of the ad

valorem property tax revenue of the district captured under tax

increment financing acts 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, qualified agricultural property, qualified

forest property, industrial personal property, and commercial

personal property under section 1211 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 the

district's certified mills on property that is nonexempt 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, qualified agricultural property, qualified

forest property, industrial personal property, and commercial

personal property are exempt and not to levy school operating taxes

on a principal residence, qualified agricultural property,

qualified forest property, industrial personal property, and

commercial personal property as provided in section 1211 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, qualified agricultural

property, qualified forest property, industrial personal property,

and commercial personal property at the rate authorized for the

district under section 1211 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 the district's certified mills on property

that is nonexempt property, the amount calculated under this

subsection will be reduced by the same percentage as the millage

actually levied compares to the district's certified mills.

(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 the management and budget act,

1984 PA 431, MCL 18.1101 to 18.1594, 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.

membership factor by the revenue adjustment factor. However, for

2008-2009, 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

lowest foundation allowance among all districts for the subsequent

state fiscal year shall be at least the amount of that consensus

index multiplied by the lowest foundation allowance among all

districts for the immediately preceding state fiscal year.

(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 the basic foundation allowance for

the current state fiscal year, 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, and

may also use these funds for an early intervening program described

in subsection (20). 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) An early intervening program that uses funds resulting

from the adjustment under subsection (19) shall meet either or both

of the following:

(a) Shall monitor individual pupil learning for pupils in

grades K to 3 and provide specific support or learning strategies

to pupils in grades K to 3 as early as possible in order to reduce

the need for special education placement. The program shall include

literacy and numeracy supports, sensory motor skill development,

behavior supports, instructional consultation for teachers, and the

development of a parent/school learning plan. Specific support or

learning strategies may include support in or out of the general

classroom in areas including reading, writing, math, visual memory,

motor skill development, behavior, or language development. These

would be provided based on an understanding of the individual

child's learning needs.

(b) Shall provide early intervening strategies for pupils in

grades K to 3 using schoolwide systems of academic and behavioral

supports and shall be scientifically research-based. The strategies

to be provided shall include at least pupil performance indicators

based upon response to intervention, instructional consultation for

teachers, and ongoing progress monitoring. A schoolwide system of

academic and behavioral support should be based on a support team

available to the classroom teachers. The members of this team could

include the principal, special education staff, reading teachers,

and other appropriate personnel who would be available to

systematically study the needs of the individual child and work

with the teacher to match instruction to the needs of the

individual child.

(21) For a district that levied 1.9 mills in 1993 to finance

an operating deficit, the district's foundation allowance shall be

calculated as if those mills were included as operating mills in

the calculation of the district's 1994-1995 foundation allowance. A

district is not entitled to any retroactive payments for fiscal

years before 2006-2007 due to this subsection. A district receiving

an adjustment under this subsection shall not receive more than

$800,000.00 for a fiscal year as a result of this adjustment.

(22) For a district that levied 2.23 mills in 1993 to finance

an operating deficit, the district's foundation allowance shall be

calculated as if those mills were included as operating mills in

the calculation of the district's 1994-1995 foundation allowance. A

district is not entitled to any retroactive payments for fiscal

years before 2006-2007 due to this subsection. A district receiving

an adjustment under this subsection shall not receive more than

$500,000.00 for a fiscal year as a result of this adjustment.

(23) 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.

(24) 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.

(25) As used in this section:

(a) "Certified mills" means the lesser of 18 mills or the

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

1993-94.

(b) "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.

means the district's combined state and local revenue divided by

the district's membership excluding special education pupils.

(d) "Current state fiscal year" means the state fiscal year

for which a particular calculation is made.

(e) "Immediately preceding state fiscal year" means the state

fiscal year immediately preceding the current state fiscal year.

(f) "Local school operating revenue" means school operating

taxes levied under section 1211 of the revised school code, MCL

380.1211.

(g) "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.

(h) "Maximum public school academy allocation" means the

maximum per-pupil allocation as calculated by adding the highest

per-pupil allocation among all public school academies for the

immediately preceding state fiscal year plus the difference between

twice the dollar amount of the adjustment from the immediately

preceding state fiscal year to the current state fiscal year made

in the basic foundation allowance and [(the dollar amount of the

adjustment from the immediately preceding state fiscal year to the

current state fiscal year made in the basic foundation allowance

minus ~~$50.00~~ $20.00) times (the difference between the highest per-

pupil allocation among all public school academies for the

immediately preceding state fiscal year and the sum of $7,108.00

plus the total dollar amount of all adjustments made from 2006-2007

to the immediately preceding state fiscal year in the lowest per-

pupil allocation among all public school academies) divided by the

difference between the basic foundation allowance for the current

state fiscal year and the sum of $7,108.00 plus the total dollar

amount of all adjustments made from 2006-2007 to the immediately

preceding state fiscal year in the lowest per-pupil allocation

among all public school academies].

(i) "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.

(j) "Nonexempt property" means property that is not a

principal residence, qualified agricultural property, qualified

forest property, industrial personal property, or commercial

personal property.

(k) "Principal residence", "qualified agricultural property",

"qualified forest property", "industrial personal property", and

"commercial personal property" mean those terms as defined in

section 7dd of the general property tax act, 1893 PA 206, MCL

211.7dd, and section 1211 of the revised school code, MCL 380.1211.

(l) "School operating purposes" means the purposes included in

the operation costs of the district as prescribed in sections 7 and

18.

(m) "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.

(n) "Tax increment financing acts" means 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, the brownfield

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

or the corridor improvement authority act, 2005 PA 280, MCL

125.2871 to 125.2899.

(o) "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

2008-2009 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 basic foundation

allowance for the 1998-99 state fiscal year and $7,204.00 less

~~$223.00~~ $271.00 minus the dollar amount of the adjustment from the

1998-99 state fiscal year to 2007-2008 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

House Bill No. 6726 as amended December 18, 2008

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. 32b. (1) From the funds appropriated under section 11,

there is allocated an amount not to exceed $6,750,000.00 for 2008-

2009 for competitive grants to intermediate districts for the

creation and continuance of great start communities or other

community purposes as identified by the early childhood investment

corporation. These dollars may not be expended until both of the

following conditions have been met:

(a) The early childhood investment corporation has identified

matching dollars of at least an amount equal to the amount of the

matching dollars for 2006-2007.

(b) The executive committee ~~shall consist~~ of the corporation

includes, in addition to the members of the executive committee

provided for by the interlocal agreement creating the corporation

under the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL

124.510 to 124.512, 4 members appointed by the governor ~~. The~~ as

provided in this subdivision. Not <<LATER>> than 30 days after the

convening of a regular legislative session in an odd-numbered year,

the speaker of the house of representatives, the house minority

House Bill No. 6726 as amended December 18, 2008

leader, the senate majority leader, and the senate minority leader

shall each submit to the governor a list of 3 or more individuals

as nominees for appointment as members of the executive committee

of the corporation. <<THE CORPORATION SHALL NOTIFY EACH OF THE

LEGISLATIVE LEADERS OF THIS REQUIREMENT TO SUBMIT A LIST OF NOMINEES NOT LATER THAN 30 DAYS BEFORE THE DATE THAT THE LIST IS DUE.>> Within 60 days of the submission to the

governor of nominees by each of the 4 legislative leaders, the

governor shall appoint 1 member of the executive committee from

~~among~~ each list of nominees submitted by ~~the senate majority~~

~~leader, 1 member from among nominees submitted by the senate~~

~~minority leader, 1 member from among nominees submitted by the~~

~~speaker of the house of representatives, and 1 member from among~~

~~nominees submitted by the minority leader of the house of~~

~~representatives~~ each of the 4 legislative leaders.<< ~~The governor~~

~~shall appoint these members~~

~~not later than 60 days after the convening of the~~

<<~~legislative session in each odd-numbered year.~~>> A member appointed

under this subdivision shall serve on a term as a member of the

executive committee through ~~that~~ the next regular legislative

session unless he or she ~~voluntarily~~ resigns or is otherwise unable

to serve. When a vacancy occurs ~~as a result of a voluntary~~

~~resignation or inability to serve,~~ other than by expiration of a

term, <<THE CORPORATION SHALL NOTIFY THE LEGISLATIVE LEADER WHO

ORIGINALLY NOMINATED THE MEMBER OF THE VACANCY AND THAT LEGISLATIVE

LEADER SHALL SUBMIT TO THE GOVERNOR A LIST OF 3 OR MORE INDIVIDUALS AS

NOMINEES FOR APPOINTMENT TO FILL THE VACANCY WITHIN 30 DAYS AFTER BEING

NOTIFIED BY THE CORPORATION OF THE VACANCY. THE ~~the~~>> governor shall make

an appointment to fill that vacancy in the same manner as the

original appointment not later than 60 days after the date the

vacancy occurs. <<

House Bill No. 6726 as amended December 18, 2008

(2) The early childhood investment corporation shall award

grants to eligible intermediate districts in an amount to be

determined by the corporation.

(3) In order to receive funding, each intermediate district

applicant shall agree to convene local great start collaboratives

to address the availability of the 6 components of a great start

system in its communities: physical health, social-emotional

health, family supports, basic needs, economic stability and

safety, and parenting education and early education and care, to

ensure that every child in the community is ready for kindergarten.

Specifically, each grant will fund the following:

(a) The completion of a community needs assessment and

strategic plan for the creation of a comprehensive system of early

childhood services and supports, accessible to all children from

birth to kindergarten and their families.

(b) Identification of local resources and services for

children with disabilities, developmental delays, or special needs

and their families.

and childcare programs.

(d) Evaluation of local programs.

(4) Not later than December 1 of each fiscal year, for the

grants awarded under this section for the immediately preceding

fiscal year, the department shall provide to the house and senate

appropriations subcommittees on state school aid, the state budget

director, and the house and senate fiscal agencies a report

detailing the amount of each grant awarded under this section, the

grant recipients, the activities funded by each grant under this

section, and an analysis of each grant recipient's success in

addressing the development of a comprehensive system of early

childhood services and supports.

(5) An intermediate district receiving funds under this

section may carry over any unexpended funds received under this

section into the next fiscal year and may expend those unused funds

in the next fiscal year. A recipient of a grant shall return any

unexpended grant funds to the department in the manner prescribed

by the department not later than September 30 of the next fiscal

year after the fiscal year in which the funds are received.

(6) Notwithstanding section 17b, payments under this section

may be made pursuant to an agreement with the department.