April 5, 2007, Introduced by Rep. Melton and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
(MCL 380.1 to 380.1852) by adding part 7B.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 7B
CONSOLIDATION OF SERVICES
Sec. 761. (1) Each intermediate school district shall develop
and implement an intermediate school district service consolidation
plan as provided under this part, and each of its constituent
districts shall participate in the development and implementation
of this plan. As part of the development of an intermediate school
district service consolidation plan, an intermediate school
district shall engage an independent professional consulting firm
to evaluate and make recommendations for changes to the plan to
meet the criteria and standards developed under section 763.
(2) Beginning in the 2007-2008 school year, the board of a
school district shall cooperate in the development and
implementation of the intermediate school district service
consolidation plan and shall comply with that plan.
(3) An intermediate school district service consolidation plan
shall address consolidation of all of the following
noninstructional services on behalf of constituent districts:
(a) Pupil transportation for all classes of pupils and all
types of programs.
(b) Human resources administration.
(c) Procurement of supplies and other purchasing.
(d) Technology support services, including, but not limited
to, information technology.
(e) Professional development.
(f) Accounting and other financial services.
(g) Legal services.
(h) Food and child nutritional services.
(i) Event management.
(j) Production printing and graphics.
(k) Shipping and receiving services.
(l) Any other service described in section 627.
(m) Any other noninstructional services identified by the
superintendent of public instruction in the criteria and standards
developed under section 763.
(4) An intermediate school district service consolidation plan
may provide for consolidation of services on behalf of constituent
districts by having the services performed at the intermediate
school district level, by 1 or more constituent districts on behalf
of other constituent districts, by another local unit of
government, or by any combination of these as approved by the
superintendent of public instruction under section 765.
Sec. 763. (1) Not later than 60 days after the effective date
of this section, the superintendent of public instruction shall
establish and distribute to all intermediate school districts and
school districts criteria and standards for the intermediate school
district service consolidation plans required under section 761 and
for approval of those plans. The criteria and standards shall do
all of the following:
(a) Establish a system to determine the degree of compliance
with section 761 by a school district. The system shall comply with
subsection (3).
(b) Identify additional noninstructional services that should
be subject to consolidation of services under section 761.
(c) Be designed to maximize efficient use of public resources
by public schools and the amount of public funds spent on pupil
instruction.
(d) Address how the costs of consolidated services should be
allocated among the participants in an intermediate school district
service consolidation plan.
(e) Address the need for contractual agreements, cooperative
arrangements, or intergovernmental contracts or other agreements
that may be necessary to implement an intermediate school district
service consolidation plan.
(2) Not later than 30 days after the effective date of this
section, the superintendent of public instruction shall appoint a
services consolidation committee to assist in the development of
these criteria and standards and in the approval of plans under
section 765. All criteria and standards adopted by the
superintendent of public instruction must be approved by a majority
vote of the services consolidation committee. The superintendent of
public instruction shall ensure that there is geographic diversity
among the members of the services consolidation committee. The
services consolidation committee shall consist of all of the
following:
(a) Two public school teachers.
(b) Two school district superintendents.
(c) Two public school administrators who are not school
district superintendents.
(d) Two representatives of 1 or more statewide labor
organizations representing public school employees.
(e) Two representatives of intermediate school districts.
(f) Two individuals nominated by the Michigan congress of
parents, teachers and students.
(g) Two individuals who are members of local school boards.
(3) The criteria and standards adopted to determine the degree
of compliance with section 761 shall include all of the following:
(a) Establishment of a level of minimum compliance required
for a school district to be considered in compliance with section
761.
(b) Recognition of and adjustments for circumstances within an
intermediate school district or for a school district that may
require a phase-in of certain service consolidation efforts, such
as existing collective bargaining agreements or unique geographic
or demographic characteristics.
(4) The criteria and standards to determine the degree of
compliance with section 761 may also include any of the following:
(a) Ratings other than minimum compliance or noncompliance
that are designed to show a school district's progression toward
full compliance.
(b) Any other component that the superintendent of public
instruction determines will further the objectives of this part.
(5) A school district or intermediate school district shall
not enter into a new collective bargaining agreement that
interferes with its ability to fully comply with its intermediate
school district service consolidation plan.
Sec. 765. (1) An intermediate school district shall submit its
service consolidation plan to the superintendent of public
instruction for approval not later than 6 months after the
superintendent of public instruction has distributed the criteria
and standards under section 763.
(2) After an intermediate school district submits its service
consolidation plan for approval, the superintendent of public
instruction, in consultation with the services consolidation
committee appointed under section 763, shall review the plan.
Within 30 days after it is submitted, the superintendent of public
instruction shall approve or disapprove the plan and notify the
intermediate school district of the decision. If the plan is
approved, the intermediate school district and its constituent
districts shall implement the plan. If the superintendent of public
instruction disapproves the plan, all of the following apply:
(a) The notification to the intermediate school district shall
include notification of the specific reasons for the disapproval
and shall prescribe specific changes that are required for
approval.
(b) Within 14 days after receiving the notification, the
intermediate school district shall submit a revised plan
incorporating the changes to the superintendent of public
instruction for approval. If the superintendent of public
instruction determines that all of the changes have been
incorporated, the superintendent of public instruction shall
approve the plan.
(c) If the intermediate school district does not submit a
revised plan for approval within the 14 days under subdivision (b),
or if it submits a revised plan and the superintendent of public
instruction determines that the revised plan does not meet the
requirements of subdivision (b), the superintendent of public
instruction shall make the changes to the original intermediate
school district plan and return the plan to the intermediate school
district. This plan is then the plan for that intermediate school
district, and the intermediate school district and its constituent
districts shall implement this plan.
(3) Once an intermediate school district service consolidation
plan is implemented, the intermediate school district and its
constituent districts shall submit to the superintendent of public
instruction an annual service consolidation report. The
intermediate school district shall work with constituent districts
to compile and submit this report. Not later than March 1 each
year, the intermediate school district shall submit this report to
the superintendent of public instruction in the form and manner
prescribed by the superintendent of public instruction. Not later
than May 1 each year, the superintendent of public instruction
shall review and summarize the results contained in the annual
service consolidation reports and submit findings to the standing
committees and appropriations subcommittees of the senate and house
of representatives that have jurisdiction over education
legislation. The findings shall evaluate the progress being made in
maximizing efficient use of public resources and the amount of
public funds spent on pupil instruction and shall make
recommendations on any legislation needed to further meet this
goal.
(4) An annual service consolidation report shall contain at
least all of the following for each constituent district:
(a) A detailed description of the services that have been
consolidated, of the manner in which they were consolidated, and of
how and by whom they are being performed under the service
consolidation plan.
(b) A detailed description of all noninstructional services
that are still being performed by the constituent district and an
explanation of the reasons for this.
(c) A detailed summary for each type of consolidated service
of the cost savings realized by the constituent district as a
result of the consolidation.
(d) A prioritized funding plan prepared by the constituent
district that details the ways that the constituent district will
use the funds resulting from the cost savings described in
subdivision (c). The prioritized funding plan shall ensure that the
cost savings will place the first priority in the use of these
funds on increasing expenditures on classroom instruction,
including, but not limited to, classroom technology, instructional
staff, instructional supplies, instructional materials, textbooks,
and distance learning.
(e) An evaluation by the intermediate school district of the
level of compliance by the constituent district with the
intermediate school district service consolidation plan. This
evaluation shall include a report of any instances of failure to
comply or to cooperate. The superintendent of public instruction
may use this evaluation in determining whether a constituent
district is sufficiently in compliance with the plan to qualify for
an increase in its foundation allowance, as provided under section
20 of the state school aid act of 1979, MCL 388.1620.
Sec. 767. If an intermediate school district, another school
district, or another entity performs services on behalf of
constituent districts under this part, the intermediate school
district, school district, or other entity shall comply with all
applicable requirements established by law for each of those
services to the same extent as if the constituent district were
performing the service itself.