FIRST CONFERENCE REPORT

The Committee of Conference on the matters of difference between the two Houses concerning

House Bill No. 4228, entitled

A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 6, 11, 11a, 11g, 11j, 11k, 11m, 12, 15, 18, 18b, 19, 20, 20d, 22a, 22b, 22d, 22f, 22i, 22j, 24, 24a, 24c, 26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 51a, 51b, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 95, 98, 99, 101, 102, 104, 107, 147, 147a, 147b, 147c, 152a, 201, 201a, 206, 209, 210, 224, 225, 229a, 230, 236, 236a, 236b, 241, 242, 244, 245, 246, 252, 256, 258, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 273, 274, 274a, 276, 277, 278, 279, 280, 281, 282, 289, and 290 (MCL 388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1612, 388.1615, 388.1618, 388.1618b, 388.1619, 388.1620, 388.1620d, 388.1622a, 388.1622b, 388.1622d, 388.1622f, 388.1622i, 388.1622j, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1626c, 388.1631a, 388.1631d, 388.1631f, 388.1632d, 388.1632p, 388.1639, 388.1639a, 388.1651a, 388.1651b, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1694a, 388.1695, 388.1698, 388.1699, 388.1701, 388.1702, 388.1704, 388.1707, 388.1747, 388.1747a, 388.1747b, 388.1747c, 388.1752a, 388.1801, 388.1801a, 388.1806, 388.1809, 388.1810, 388.1824, 388.1825, 388.1829a, 388.1830, 388.1836, 388.1836a, 388.1836b, 388.1841, 388.1842, 388.1844, 388.1845, 388.1846, 388.1852, 388.1856, 388.1858, 388.1863, 388.1863a, 388.1864, 388.1865, 388.1865a, 388.1867, 388.1868, 388.1869, 388.1870, 388.1873, 388.1874, 388.1874a, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881, 388.1882, 388.1889, and 388.1890), sections 6, 11, 26b, and 201 as amended by 2012 PA 465, sections 11a, 11g, 11j, 11k, 11m, 12, 18, 19, 20, 20d, 22a, 22b, 22d, 22f, 24, 24a, 24c, 26a, 31a, 31d, 31f, 32d, 39, 39a, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 98, 99, 102, 104, 107, 147, 147a, 147b, 152a, 201a, 206, 209, 210, 224, 225, 230, 236, 236a, 241, 242, 244, 245, 252, 256, 258, 263, 263a, 264, 265, 267, 268, 269, 270, 273, 274, 274a, 276, 277, 278, 279, 280, 281, 282, 289, and 290 as amended and sections 22i, 22j, 26c, 32p, 95, 147c, 229a, 236b, 246, and 265a as added by 2012 PA 201, section 15 as amended by 2012 PA 286, section 18b as amended by 2008 PA 268, section 51b as added by 1996 PA 300, and section 101 as amended by 2012 PA 516, and by adding sections 21f, 22c, 22k, 25e, 41, 99b, 236c, 259, and 272a; and to repeal acts and parts of acts.

Recommends:

First: That the Senate recede from the Substitute of the

Senate as passed by the Senate.

Second: That the House and Senate agree to the Substitute of the House as passed by the House, amended to read as follows:

(attached)

Third: That the House and Senate agree to the title of the bill to read as follows:

A bill to amend 1979 PA 94, entitled "An act to make appropriations to aid in the support of the public schools, the intermediate school districts, community colleges, and public universities of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and parts of acts," by amending sections 6, 11, 11a, 11g, 11j, 11k, 11m, 12, 15, 18, 18b, 19, 20, 20d, 22a, 22b, 22d, 22f, 22g, 22i, 22j, 24, 24a, 24c, 26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 51a, 51b, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 95, 98, 99, 101, 102, 104, 107, 147, 147a, 147b, 147c, 152a, 201, 201a, 206, 208, 209, 210, 224, 225, 229, 229a, 230, 236, 236a, 236b, 241, 244, 245, 246, 252, 258, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 273, 274, 274a, 275, 275a, 276, 277, 278, 279, 280, 281, 282, 289, and 290 (MCL 388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1612, 388.1615, 388.1618, 388.1618b, 388.1619, 388.1620, 388.1620d, 388.1622a, 388.1622b, 388.1622d, 388.1622f, 388.1622g, 388.1622i, 388.1622j, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1626c, 388.1631a, 388.1631d, 388.1631f, 388.1632d, 388.1632p, 388.1639, 388.1639a, 388.1651a, 388.1651b, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1694a, 388.1695, 388.1698, 388.1699, 388.1701, 388.1702, 388.1704, 388.1707, 388.1747, 388.1747a, 388.1747b, 388.1747c, 388.1752a, 388.1801, 388.1801a, 388.1806, 388.1808, 388.1809, 388.1810, 388.1824, 388.1825, 388.1829, 388.1829a, 388.1830, 388.1836, 388.1836a, 388.1836b, 388.1841, 388.1844, 388.1845, 388.1846, 388.1852, 388.1858, 388.1863, 388.1863a, 388.1864, 388.1865, 388.1865a, 388.1867, 388.1868, 388.1869, 388.1870, 388.1873, 388.1874, 388.1874a, 388.1875, 388.1875a, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881, 388.1882, 388.1889, and 388.1890), sections 6, 11, 26b, and 201 as amended by 2012 PA 465, sections 11a, 11g, 11j, 11k, 11m, 12, 18, 19, 20, 20d, 22a, 22b, 22d, 22f, 24, 24a, 24c, 26a, 31a, 31d, 31f, 32d, 39, 39a, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 98, 99, 102, 104, 107, 147, 147a, 147b, 152a, 201a, 206, 208, 209, 210, 224, 225, 229, 230, 236, 236a, 241, 244, 245, 252, 258, 263, 263a, 264, 265, 267, 268, 269, 270, 273, 274, 274a, 275, 275a, 276, 277, 278, 279, 280, 281, 282, 289, and 290 as amended and sections 22g, 22i, 22j, 26c, 32p, 95, 147c, 229a, 236b, 246, and 265a as added by 2012 PA 201, section 15 as amended by 2012 PA 286, section 18b as amended by 2008 PA 268, section 51b as added by 1996 PA 300, and section 101 as amended by 2013 PA 29, and by adding sections 20f, 21f, 22c, 22k, 25e, 41, 64a, 99h, 201b, 210b, 229b, 236c, 259, 262a, and 272a; and to repeal acts and parts of acts.

_______________________ ________________________

Bill Rogers Roger Kahn

_______________________ ________________________

Joe Haveman John Moolenaar

_______________________ ________________________

Brandon Dillon Hoon-Yung Hopgood

Conferees for the House Conferees for the Senate

SUBSTITUTE FOR

HOUSE BILL NO. 4228

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 6, 11, 11a, 11g, 11j, 11k, 11m, 12, 15, 18,

18b, 19, 20, 20d, 22a, 22b, 22d, 22f, 22g, 22i, 22j, 24, 24a, 24c,

26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 51a, 51b, 51c,

51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 95, 98, 99, 101, 102, 104,

107, 147, 147a, 147b, 147c, 152a, 201, 201a, 206, 208, 209, 210,

224, 225, 229, 229a, 230, 236, 236a, 236b, 241, 244, 245, 246, 252,

258, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 273, 274, 274a,

275, 275a, 276, 277, 278, 279, 280, 281, 282, 289, and 290 (MCL

388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k,

388.1611m, 388.1612, 388.1615, 388.1618, 388.1618b, 388.1619,

388.1620, 388.1620d, 388.1622a, 388.1622b, 388.1622d, 388.1622f,

388.1622g, 388.1622i, 388.1622j, 388.1624, 388.1624a, 388.1624c,

388.1626a, 388.1626b, 388.1626c, 388.1631a, 388.1631d, 388.1631f,

388.1632d, 388.1632p, 388.1639, 388.1639a, 388.1651a, 388.1651b,

388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a,

388.1662, 388.1674, 388.1681, 388.1694a, 388.1695, 388.1698,

388.1699, 388.1701, 388.1702, 388.1704, 388.1707, 388.1747,

388.1747a, 388.1747b, 388.1747c, 388.1752a, 388.1801, 388.1801a,

388.1806, 388.1808, 388.1809, 388.1810, 388.1824, 388.1825,

388.1829, 388.1829a, 388.1830, 388.1836, 388.1836a, 388.1836b,

388.1841, 388.1844, 388.1845, 388.1846, 388.1852, 388.1858,

388.1863, 388.1863a, 388.1864, 388.1865, 388.1865a, 388.1867,

388.1868, 388.1869, 388.1870, 388.1873, 388.1874, 388.1874a,

388.1875, 388.1875a, 388.1876, 388.1877, 388.1878, 388.1879,

388.1880, 388.1881, 388.1882, 388.1889, and 388.1890), sections 6,

11, 26b, and 201 as amended by 2012 PA 465, sections 11a, 11g, 11j,

11k, 11m, 12, 18, 19, 20, 20d, 22a, 22b, 22d, 22f, 24, 24a, 24c,

26a, 31a, 31d, 31f, 32d, 39, 39a, 51a, 51c, 51d, 53a, 54, 56, 61a,

62, 74, 81, 94a, 98, 99, 102, 104, 107, 147, 147a, 147b, 152a,

201a, 206, 208, 209, 210, 224, 225, 229, 230, 236, 236a, 241, 244,

245, 252, 258, 263, 263a, 264, 265, 267, 268, 269, 270, 273, 274,

274a, 275, 275a, 276, 277, 278, 279, 280, 281, 282, 289, and 290 as

amended and sections 22g, 22i, 22j, 26c, 32p, 95, 147c, 229a, 236b,

246, and 265a as added by 2012 PA 201, section 15 as amended by

2012 PA 286, section 18b as amended by 2008 PA 268, section 51b as

added by 1996 PA 300, and section 101 as amended by 2013 PA 29, and

by adding sections 20f, 21f, 22c, 22k, 25e, 41, 64a, 99h, 201b,

210b, 229b, 236c, 259, 262a, and 272a; and to repeal acts and parts

of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 6. (1) "Center program" means a program operated by a

district or by an intermediate district for special education

pupils from several districts in programs for pupils with autism

spectrum disorder, pupils with severe cognitive impairment, pupils

with moderate cognitive impairment, pupils with severe multiple

impairments, pupils with hearing impairment, pupils with visual

impairment, and pupils with physical impairment or other health

impairment. Programs for pupils with emotional impairment housed in

buildings that do not serve regular education pupils also qualify.

Unless otherwise approved by the department, a center program

either shall serve all constituent districts within an intermediate

district or shall serve several districts with less than 50% of the

pupils residing in the operating district. In addition, special

education center program pupils placed part-time in noncenter

programs to comply with the least restrictive environment

provisions of section 612 of part B of the individuals with

disabilities education act, 20 USC 1412, may be considered center

program pupils for pupil accounting purposes for the time scheduled

in either a center program or a noncenter program.

(2) "District and high school graduation rate" means the

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

(3) "District and high school graduation report" means a

report of the number of pupils, excluding adult participants, in

the district for the immediately preceding school year, adjusted

for those pupils who have transferred into or out of the district

or high school, who leave high school with a diploma or other

credential of equal status.

(4) "Membership", except as otherwise provided in this

article, means for a district, a public school academy, the

education achievement system, or an intermediate district the sum

of the product of .90 times the number of full-time equated pupils

in grades K to 12 actually enrolled and in regular daily attendance

on the pupil membership count day for the current school year, plus

the product of .10 times the final audited count from the

supplemental count day for the ~~immediately preceding~~ current school

year. A district's, public school academy's, or intermediate

district's membership shall be adjusted as provided under section

25 for pupils who enroll in the district, public school academy, or

intermediate district after the pupil membership count day. All

pupil counts used in this subsection are as determined by the

department and calculated by adding the number of pupils registered

for attendance plus pupils received by transfer and minus pupils

lost as defined by rules promulgated by the superintendent, and as

corrected by a subsequent department audit. For the purposes of

this section and section 6a, for a school of excellence that is a

cyber school, as defined in section 551 of the revised school code,

MCL 380.551, and is in compliance with section 553a of the revised

school code, MCL 380.553a, ~~or for the education achievement system,~~

a pupil's participation in the cyber school's educational program

~~or in an online educational program of the education achievement~~

~~system or of an achievement school~~ is considered regular daily

attendance; for the education achievement system, a pupil's

participation in an online educational program of the education

achievement system or of an achievement school is considered

regular daily attendance; and for a district a pupil's

participation in an online course as defined in section 21f is

considered regular daily attendance. The amount of the foundation

allowance for a pupil in membership is determined under section 20.

In making the calculation of membership, all of the following, as

applicable, apply to determining the membership of a district, a

public school academy, the education achievement system, or an

intermediate district:

(a) Except as otherwise provided in this subsection, and

pursuant to subsection (6), a pupil shall be counted in membership

in the pupil's educating district or districts. An individual pupil

shall not be counted for more than a total of 1.0 full-time equated

membership.

(b) If a pupil is educated in a district other than the

pupil's district of residence, if the pupil is not being educated

as part of a cooperative education program, if the pupil's district

of residence does not give the educating district its approval to

count the pupil in membership in the educating district, and if the

pupil is not covered by an exception specified in subsection (6) to

the requirement that the educating district must have the approval

of the pupil's district of residence to count the pupil in

membership, the pupil shall not be counted in membership in any

district.

district shall be counted in membership in the intermediate

district.

(d) A pupil placed by a court or state agency in an on-grounds

program of a juvenile detention facility, a child caring

institution, or a mental health institution, or a pupil funded

under section 53a, shall be counted in membership in the district

or intermediate district approved by the department to operate the

program.

(e) A pupil enrolled in the Michigan schools for the deaf and

blind shall be counted in membership in the pupil's intermediate

district of residence.

(f) A pupil enrolled in a career and technical education

program supported by a millage levied over an area larger than a

single district or in an area vocational-technical education

program established pursuant to section 690 of the revised school

code, MCL 380.690, shall be counted only in the pupil's district of

residence.

(g) A pupil enrolled in a public school academy shall be

counted in membership in the public school academy.

(h) A pupil enrolled in an achievement school shall be counted

in membership in the education achievement system.

(i) For a new district or public school academy beginning its

operation after December 31, 1994, or for the education achievement

system or an achievement school, membership for the first 2 full or

partial fiscal years of operation shall be determined as follows:

(i) If operations begin before the pupil membership count day

for the fiscal year, membership is the average number of full-time

equated pupils in grades K to 12 actually enrolled and in regular

daily attendance on the pupil membership count day for the current

school year and on the supplemental count day for the current

school year, as determined by the department and calculated by

adding the number of pupils registered for attendance on the pupil

membership count day plus pupils received by transfer and minus

pupils lost as defined by rules promulgated by the superintendent,

and as corrected by a subsequent department audit, plus the final

audited count from the supplemental count day for the current

school year, and dividing that sum by 2.

(ii) If operations begin after the pupil membership count day

for the fiscal year and not later than the supplemental count day

for the fiscal year, membership is the final audited count of the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the supplemental count

day for the current school year.

(j) If a district is the authorizing body for a public school

academy, then, in the first school year in which pupils are counted

in membership on the pupil membership count day in the public

school academy, the determination of the district's membership

shall exclude from the district's pupil count for the immediately

preceding supplemental count day any pupils who are counted in the

public school academy on that first pupil membership count day who

were also counted in the district on the immediately preceding

supplemental count day.

(k) In a district, a public school academy, the education

achievement system, or an intermediate district operating an

extended school year program approved by the superintendent, a

pupil enrolled, but not scheduled to be in regular daily attendance

on a pupil membership count day, shall be counted.

(l) To be counted in membership, a pupil shall meet the minimum

age requirement to be eligible to attend school under section 1147

of the revised school code, MCL 380.1147, or shall be enrolled

under subsection (3) of that section, and shall be less than 20

years of age on September 1 of the school year except as follows:

(i) A special education pupil who is enrolled and receiving

instruction in a special education program or service approved by

the department, who does not have a high school diploma, and who is

less than 26 years of age as of September 1 of the current school

year shall be counted in membership.

(ii) A pupil who is determined by the department to meet all of

the following may be counted in membership:

(A) Is enrolled in a public school academy or an alternative

education high school diploma program, that is primarily focused on

educating homeless pupils and that is located in a city with a

population of more than ~~500,000.~~175,000.

(B) Had dropped out of school for more than 1 year and has re-

entered school.

current school year.

(iii) If a child becomes a resident of a district and the child

does not meet the minimum age requirement to be eligible to attend

school for that school year under section 1147 of the revised

school code, MCL 380.1147, but will be 5 years of age not later

than December 1 of that school year, the district may count the

child in membership for that school year if the parent or legal

guardian has notified the district in writing that he or she

intends to enroll the child in kindergarten for that school year.

(m) An individual who has obtained a high school diploma shall

not be counted in membership. An individual who has obtained a

general educational development (G.E.D.) certificate shall not be

counted in membership unless the individual is a pupil with a

disability as defined in R 340.1702 of the Michigan administrative

code. An individual participating in a job training program funded

under former section 107a or a jobs program funded under former

section 107b, administered by the Michigan strategic fund, or

participating in any successor of either of those 2 programs, shall

not be counted in membership.

(n) If a pupil counted in membership in a public school

academy or the education achievement system is also educated by a

district or intermediate district as part of a cooperative

education program, the pupil shall be counted in membership only in

the public school academy or the education achievement system

unless a written agreement signed by all parties designates the

party or parties in which the pupil shall be counted in membership,

and the instructional time scheduled for the pupil in the district

or intermediate district shall be included in the full-time equated

membership determination under subdivision (q). However, for pupils

receiving instruction in both a public school academy or the

education achievement system and in a district or intermediate

district but not as a part of a cooperative education program, the

following apply:

(i) If the public school academy or the education achievement

system provides instruction for at least 1/2 of the class hours

specified in subdivision (q), the public school academy or the

education achievement system shall receive as its prorated share of

the full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the public

school academy or the education achievement system provides divided

by the number of hours specified in subdivision (q) for full-time

equivalency, and the remainder of the full-time membership for each

of those pupils shall be allocated to the district or intermediate

district providing the remainder of the hours of instruction.

(ii) If the public school academy or the education achievement

system provides instruction for less than 1/2 of the class hours

specified in subdivision (q), the district or intermediate district

providing the remainder of the hours of instruction shall receive

as its prorated share of the full-time equated membership for each

of those pupils an amount equal to 1 times the product of the hours

of instruction the district or intermediate district provides

divided by the number of hours specified in subdivision (q) for

full-time equivalency, and the remainder of the full-time

membership for each of those pupils shall be allocated to the

public school academy or the education achievement system.

(o) An individual less than 16 years of age as of September 1

of the current school year who is being educated in an alternative

education program shall not be counted in membership if there are

also adult education participants being educated in the same

program or classroom.

(p) The department shall give a uniform interpretation of

full-time and part-time memberships.

(q) The number of class hours used to calculate full-time

equated memberships shall be consistent with section 101(3). In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution, a pupil shall not be

considered to be less than a full-time equated pupil solely because

of the effect of his or her postsecondary enrollment, including

necessary travel time, on the number of class hours provided by the

district to the pupil.

(r) Beginning in 2012-2013, full-time equated memberships for

pupils in kindergarten shall be determined by dividing the number

of instructional hours scheduled and provided per year per

kindergarten pupil by the same number used for determining full-

time equated memberships for pupils in grades 1 to 12. However, to

the extent allowable under federal law, for a district or public

school academy that provides evidence satisfactory to the

department that it used federal title I money in the 2 immediately

preceding school fiscal years to fund full-time kindergarten, full-

time equated memberships for pupils in kindergarten shall be

determined by dividing the number of class hours scheduled and

provided per year per kindergarten pupil by a number equal to 1/2

the number used for determining full-time equated memberships for

pupils in grades 1 to 12. ~~Not later than December 1, 2012, the~~

~~department shall seek a clarification from the federal department~~

~~of education as to whether this is an allowable use of federal~~

~~title I money.~~ The change in the counting of full-time equated

memberships for pupils in kindergarten that ~~takes~~ took effect in

for 2012-2013 is not a mandate. ~~Not later than the fifth Wednesday~~

~~after the pupil membership count day, each district or public~~

~~school academy and the education achievement system shall report to~~

~~the department and the center the number of instructional hours~~

~~scheduled per kindergarten pupil for 2012-2013. If the number of~~

~~instructional hours scheduled per kindergarten pupil is not equal~~

~~for all kindergarten pupils in the district, the district or public~~

~~school academy and the education achievement system shall report~~

~~the number of kindergarten pupils who were scheduled to receive~~

~~each of the different numbers of instructional hours scheduled.~~

(s) For a district, a public school academy, or the education

achievement system that has pupils enrolled in a grade level that

was not offered by the district, the public school academy, or the

education achievement system in the immediately preceding school

year, the number of pupils enrolled in that grade level to be

counted in membership is the average of the number of those pupils

enrolled and in regular daily attendance on the pupil membership

count day and the supplemental count day of the current school

year, as determined by the department. Membership shall be

calculated by adding the number of pupils registered for attendance

in that grade level on the pupil membership count day plus pupils

received by transfer and minus pupils lost as defined by rules

promulgated by the superintendent, and as corrected by subsequent

department audit, plus the final audited count from the

supplemental count day for the current school year, and dividing

that sum by 2.

(t) A pupil enrolled in a cooperative education program may be

counted in membership in the pupil's district of residence with the

written approval of all parties to the cooperative agreement.

(u) If, as a result of a disciplinary action, a district

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

is in the pupil's home or otherwise apart from the general school

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

pupil's home or otherwise apart from the general school population,

the district may count the pupil in membership on a pro rata basis,

with the proration based on the number of hours of instruction the

district actually provides to the pupil divided by the number of

hours specified in subdivision (q) for full-time equivalency. For

the purposes of this subdivision, a district shall be considered to

be providing appropriate instruction if all of the following are

met:

(i) The district provides at least 2 nonconsecutive hours of

instruction per week to the pupil at the pupil's home or otherwise

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies ~~, except computers,~~ that are comparable to those

otherwise provided in the district's alternative education program.

(iii) Course content is comparable to that in the district's

alternative education program.

(iv) Credit earned is awarded to the pupil and placed on the

pupil's transcript.

(v) A pupil enrolled in an alternative or disciplinary

education program described in section 25 shall be counted in

membership in the district, the public school academy, or the

education achievement system that is educating the pupil.

(w) If a pupil was enrolled in a public school academy on the

pupil membership count day, if the public school academy's contract

with its authorizing body is revoked or the public school academy

otherwise ceases to operate, and if the pupil enrolls in a district

or the education achievement system within 45 days after the pupil

membership count day, the department shall adjust the district's or

the education achievement system's pupil count for the pupil

membership count day to include the pupil in the count.

(x) For a public school academy that has been in operation for

at least 2 years and that suspended operations for at least 1

semester and is resuming operations, membership is the sum of the

product of .90 times the number of full-time equated pupils in

grades K to 12 actually enrolled and in regular daily attendance on

the first pupil membership count day or supplemental count day,

whichever is first, occurring after operations resume, plus the

product of .10 times the final audited count from the most recent

pupil membership count day or supplemental count day that occurred

before suspending operations, as determined by the superintendent.

(y) If a district's membership for a particular fiscal year,

as otherwise calculated under this subsection, would be less than

1,550 pupils and the district has 4.5 or fewer pupils per square

mile, as determined by the department, and ~~, beginning in 2007-~~

~~2008,~~ if the district does not receive funding under section

22d(2), the district's membership shall be considered to be the

membership figure calculated under this subdivision. If a district

educates and counts in its membership pupils in grades 9 to 12 who

reside in a contiguous district that does not operate grades 9 to

12 and if 1 or both of the affected districts request the

department to use the determination allowed under this sentence,

the department shall include the square mileage of both districts

in determining the number of pupils per square mile for each of the

districts for the purposes of this subdivision. The membership

figure calculated under this subdivision is the greater of the

following:

(i) The average of the district's membership for the 3-fiscal-

year period ending with that fiscal year, calculated by adding the

district's actual membership for each of those 3 fiscal years, as

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

(ii) The district's actual membership for that fiscal year as

otherwise calculated under this subsection.

(z) If a public school academy that is not in its first or

second year of operation closes at the end of a school year and

does not reopen for the next school year, the department shall

adjust the membership count of the district or the education

achievement system in which a former pupil of the public school

academy enrolls and is in regular daily attendance for the next

school year to ensure that the district or the education

achievement system receives the same amount of membership aid for

the pupil as if the pupil were counted in the district or the

education achievement system on the supplemental count day of the

preceding school year.

(aa) Full-time equated memberships for special education

pupils who are not enrolled in kindergarten but are enrolled in a

classroom program under R 340.1754 of the Michigan administrative

code shall be determined by dividing the number of class hours

scheduled and provided per year by 450. Full-time equated

memberships for special education pupils who are not enrolled in

kindergarten but are receiving early childhood special education

services under R 340.1755 of the Michigan administrative code shall

be determined by dividing the number of hours of service scheduled

and provided per year per pupil by 180.

(bb) A pupil of a district that begins its school year after

Labor day who is enrolled in an intermediate district program that

begins before Labor day shall not be considered to be less than a

full-time pupil solely due to instructional time scheduled but not

attended by the pupil before Labor day.

(cc) For the first year in which a pupil is counted in

membership on the pupil membership count day in a middle college

program, the membership is the average of the full-time equated

membership on the pupil membership count day and on the

supplemental count day for the current school year, as determined

by the department. If a pupil was counted by the operating district

on the immediately preceding supplemental count day, the pupil

shall be excluded from the district's immediately preceding

supplemental count for purposes of determining the district's

membership.

(dd) A district, a public school academy, or the education

achievement system that educates a pupil who attends a United

States Olympic education center may count the pupil in membership

regardless of whether or not the pupil is a resident of this state.

(ee) A pupil enrolled in a district other than the pupil's

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148, shall be counted in the educating

district or the education achievement system.

(ff) For a pupil enrolled in a dropout recovery program that

meets the requirements of section 23a, the pupil shall be counted

as 1/12 of a full-time equated membership for each month that the

district operating the program reports that the pupil was enrolled

in the program and was in full attendance. However, a pupil counted

under this subdivision shall not be counted as more than 1.0 FTE in

a fiscal year. The district operating the program shall report to

the center the number of pupils who were enrolled in the program

and were in full attendance for a month not later than the tenth

day of the next month. A district shall not report a pupil as being

in full attendance for a month unless both of the following are

met:

(i) A personalized learning plan is in place on or before the

first school day of the month for the first month the pupil

participates in the program.

(ii) The pupil meets the district's definition under section

23a of satisfactory monthly progress for that month or, if the

pupil does not meet that definition of satisfactory monthly

progress for that month, the pupil did meet that definition of

satisfactory monthly progress in the immediately preceding month

and appropriate interventions are implemented within 10 school days

after it is determined that the pupil does not meet that definition

of satisfactory monthly progress.

(5) "Public school academy" means that term as defined in the

revised school code.

(6) "Pupil" means a person in membership in a public school. A

district must have the approval of the pupil's district of

residence to count the pupil in membership, except approval by the

pupil's district of residence is not required for any of the

following:

(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in

accordance with section 166b.

(b) A pupil receiving 1/2 or less of his or her instruction in

a district other than the pupil's district of residence.

education achievement system.

(d) A pupil enrolled in a district other than the pupil's

district of residence under an intermediate district schools of

choice pilot program as described in section 91a or former section

91 if the intermediate district and its constituent districts have

been exempted from section 105.

(e) A pupil enrolled in a district other than the pupil's

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

(f) A pupil who has made an official written complaint or

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

the pupil's district of residence that the pupil has been the

victim of a criminal sexual assault or other serious assault, if

the official complaint either indicates that the assault occurred

at school or that the assault was committed by 1 or more other

pupils enrolled in the school the pupil would otherwise attend in

the district of residence or by an employee of the district of

residence. A person who intentionally makes a false report of a

crime to law enforcement officials for the purposes of this

subdivision is subject to section 411a of the Michigan penal code,

1931 PA 328, MCL 750.411a, which provides criminal penalties for

that conduct. As used in this subdivision:

(i) "At school" means in a classroom, elsewhere on school

premises, on a school bus or other school-related vehicle, or at a

school-sponsored activity or event whether or not it is held on

school premises.

(ii) "Serious assault" means an act that constitutes a felony

violation of chapter XI of the Michigan penal code, 1931 PA 328,

MCL 750.81 to 750.90h, or that constitutes an assault and

infliction of serious or aggravated injury under section 81a of the

Michigan penal code, 1931 PA 328, MCL 750.81a.

(g) A pupil whose district of residence changed after the

pupil membership count day and before the supplemental count day

and who continues to be enrolled on the supplemental count day as a

nonresident in the district in which he or she was enrolled as a

resident on the pupil membership count day of the same school year.

(h) A pupil enrolled in an alternative education program

operated by a district other than his or her district of residence

who meets 1 or more of the following:

(i) The pupil has been suspended or expelled from his or her

district of residence for any reason, including, but not limited

to, a suspension or expulsion under section 1310, 1311, or 1311a of

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(ii) The pupil had previously dropped out of school.

(iii) The pupil is pregnant or is a parent.

(iv) The pupil has been referred to the program by a court.

(v) The pupil is enrolled in an alternative or disciplinary

education program described in section 25.

(i) A pupil enrolled in the Michigan virtual school, for the

pupil's enrollment in the Michigan virtual school.

(j) A pupil who is the child of a person who works at the

district or who is the child of a person who worked at the district

as of the time the pupil first enrolled in the district but who no

longer works at the district due to a workforce reduction. As used

in this subdivision, "child" includes an adopted child, stepchild,

or legal ward.

(k) An expelled pupil who has been denied reinstatement by the

expelling district and is reinstated by another school board under

section 1311 or 1311a of the revised school code, MCL 380.1311 and

380.1311a.

(l) A pupil enrolled in a district other than the pupil's

district of residence in a middle college program if the pupil's

district of residence and the enrolling district are both

constituent districts of the same intermediate district.

(m) A pupil enrolled in a district other than the pupil's

district of residence who attends a United States Olympic education

center.

(n) A pupil enrolled in a district other than the pupil's

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148.

(o) A pupil who enrolls in a district other than the pupil's

district of residence as a result of the pupil's school not making

adequate yearly progress under the no child left behind act of

2001, Public Law 107-110.

~~(p) A pupil enrolled in a district other than the pupil's~~

~~district of residence as a qualifying pupil under section 22h(2).~~

(p) An online learning pupil enrolled in a district other than

the pupil's district of residence as an eligible pupil under

section 21f.

However, if a district educates pupils who reside in another

district and if the primary instructional site for those pupils is

established by the educating district after 2009-2010 and is

located within the boundaries of that other district, the educating

district must have the approval of that other district to count

those pupils in membership.

(7) "Pupil membership count day" of a district or intermediate

district means:

(a) Except as provided in subdivision (b), the first Wednesday

in October each school year or, for a district or building in which

school is not in session on that Wednesday due to conditions not

within the control of school authorities, with the approval of the

superintendent, the immediately following day on which school is in

session in the district or building.

(b) For a district or intermediate district maintaining school

during the entire school year, the following days:

(i) Fourth Wednesday in July.

(ii) First Wednesday in October.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

(8) "Pupils in grades K to 12 actually enrolled and in regular

daily attendance" means pupils in grades K to 12 in attendance and

receiving instruction in all classes for which they are enrolled on

the pupil membership count day or the supplemental count day, as

applicable. Except as otherwise provided in this subsection, a

pupil who is absent from any of the classes in which the pupil is

enrolled on the pupil membership count day or supplemental count

day and who does not attend each of those classes during the 10

consecutive school days immediately following the pupil membership

count day or supplemental count day, except for a pupil who has

been excused by the district, shall not be counted as 1.0 full-time

equated membership. A pupil who is excused from attendance on the

pupil membership count day or supplemental count day and who fails

to attend each of the classes in which the pupil is enrolled within

30 calendar days after the pupil membership count day or

supplemental count day shall not be counted as 1.0 full-time

equated membership. In addition, a pupil who was enrolled and in

attendance in a district, an intermediate district, a public school

academy, or the education achievement system before the pupil

membership count day or supplemental count day of a particular year

but was expelled or suspended on the pupil membership count day or

supplemental count day shall only be counted as 1.0 full-time

equated membership if the pupil resumed attendance in the district,

intermediate district, public school academy, or education

achievement system within 45 days after the pupil membership count

day or supplemental count day of that particular year. Pupils not

counted as 1.0 full-time equated membership due to an absence from

a class shall be counted as a prorated membership for the classes

the pupil attended. For purposes of this subsection, "class" means

a period of time in 1 day when pupils and a certificated teacher or

legally qualified substitute teacher are together and instruction

is taking place.

(9) "Rule" means a rule promulgated pursuant to the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328.

(10) "The revised school code" means 1976 PA 451, MCL 380.1 to

380.1852.

(11) "School district of the first class", "first class school

district", and "district of the first class" mean a district that

had at least 60,000 pupils in membership for the immediately

preceding fiscal year.

(12) "School fiscal year" means a fiscal year that commences

July 1 and continues through June 30.

(13) "State board" means the state board of education.

(14) "Superintendent", unless the context clearly refers to a

district or intermediate district superintendent, means the

superintendent of public instruction described in section 3 of

article VIII of the state constitution of 1963.

(15) "Supplemental count day" means the day on which the

supplemental pupil count is conducted under section 6a.

(16) "Tuition pupil" means a pupil of school age attending

school in a district other than the pupil's district of residence

for whom tuition may be charged to the district of residence.

Tuition pupil does not include a pupil who is a special education

pupil, or a pupil described in subsection (6)(c) to ~~(o).~~ (p), or a

pupil whose parent or guardian voluntarily enrolls the pupil in a

district that is not the pupil's district of residence. A pupil's

district of residence shall not require a high school tuition

pupil, as provided under section 111, to attend another school

district after the pupil has been assigned to a school district.

(17) "State school aid fund" means the state school aid fund

established in section 11 of article IX of the state constitution

of 1963.

(18) "Taxable value" means the taxable value of property as

determined under section 27a of the general property tax act, 1893

PA 206, MCL 211.27a.

(19) "Textbook" means a book, electronic book, or other

instructional print or electronic resource that is selected and

approved by the governing board of a district or, for an

achievement school, by the chancellor of the achievement authority

and that contains a presentation of principles of a subject, or

that is a literary work relevant to the study of a subject required

for the use of classroom pupils, or another type of course material

that forms the basis of classroom instruction.

(20) "Total state aid" or "total state school aid" means the

total combined amount of all funds due to a district, intermediate

district, or other entity under all of the provisions of this

article.

Sec. 11. (1) ~~Subject to subsection (3), for~~ For the fiscal

year ending September 30, 2013, there is appropriated for the

public schools of this state and certain other state purposes

relating to education the sum of ~~$10,961,245,600.00~~

$10,928,614,200.00 from the state school aid fund and the sum of

$282,400,000.00 from the general fund. For the fiscal year ending

September 30, 2014, there is appropriated for the public schools of

this state and certain other state purposes relating to education

the sum of $11,211,382,300.00 from the state school aid fund, the

sum of $156,000,000.00 from the MPSERS retirement obligation reform

reserve fund created under section 147b, and the sum of

$230,000,000.00 from the general fund. In addition, all other

available federal funds, except those otherwise appropriated under

section 11p, are appropriated for the fiscal year ending September

30, 2013 and for the fiscal year ending September 30, 2014.

(2) The appropriations under this section shall be allocated

as provided in this article. Money appropriated under this section

from the general fund shall be expended to fund the purposes of

this article before the expenditure of money appropriated under

this section from the state school aid fund.

(3) Any general fund allocations under this article that are

not expended by the end of the state fiscal year are transferred to

the school aid stabilization fund created under section 11a.

Sec. 11a. (1) The school aid stabilization fund is created as

a separate account within the state school aid fund established by

section 11 of article IX of the state constitution of 1963.

(2) The state treasurer may receive money or other assets from

any source for deposit into the school aid stabilization fund. The

state treasurer shall deposit into the school aid stabilization

fund all of the following:

(a) Unexpended and unencumbered state school aid fund revenue

for a fiscal year that remains in the state school aid fund as of

the bookclosing for that fiscal year.

(b) Money statutorily dedicated to the school aid

stabilization fund.

(3) Money available in the school aid stabilization fund may

not be expended without a specific appropriation from the school

aid stabilization fund. Money in the school aid stabilization fund

shall be expended only for purposes for which state school aid fund

money may be expended.

(4) The state treasurer shall direct the investment of the

school aid stabilization fund. The state treasurer shall credit to

the school aid stabilization fund interest and earnings from fund

investments.

(5) Money in the school aid stabilization fund at the close of

a fiscal year shall remain in the school aid stabilization fund and

shall not lapse to the unreserved school aid fund balance or the

general fund.

(6) If the maximum amount appropriated under section 11 from

the state school aid fund for a fiscal year exceeds the amount

available for expenditure from the state school aid fund for that

fiscal year, there is appropriated from the school aid

stabilization fund to the state school aid fund an amount equal to

the projected shortfall as determined by the department of

treasury, but not to exceed available money in the school aid

stabilization fund. If the money in the school aid stabilization

fund is insufficient to fully fund an amount equal to the projected

shortfall, the state budget director shall notify the legislature

as required under section ~~11(3)~~ 296(2) and state payments in an

amount equal to the remainder of the projected shortfall shall be

prorated in the manner provided under section ~~11(4).~~296(3).

(7) For ~~2012-2013,~~ 2013-2014, in addition to the

appropriations in section 11, there is appropriated from the school

aid stabilization fund to the state school aid fund the amount

necessary to fully fund the allocations under this article.

~~(8) Effective February 24, 2012, in addition to any amounts~~

~~otherwise deposited into the school aid stabilization fund, there~~

~~is transferred from the state school aid fund to the school aid~~

~~stabilization fund an amount equal to $100,000,000.00.~~

Sec. 11g. (1) From the appropriation in section 11, there is

allocated for this section an amount not to exceed ~~$39,000,000.00~~

$39,500,000.00 for the fiscal year ending September 30, ~~2013,~~ 2014

and for ~~each succeeding fiscal year through~~ the fiscal year ending

September 30, 2015, after which these payments will cease. 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 and any other provision of this article 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 1 of the

following:

(a) If the district or intermediate district does not borrow

money and issue bonds under section 11i, 1/30 of the total amount

listed in section 11h for the district or intermediate district

through the fiscal year ending September 30, ~~2013.~~2015.

(b) If the district or intermediate district borrows money and

issues bonds under section 11i, an amount in each fiscal year

calculated by the department of treasury that is equal to the debt

service amount in that fiscal year on 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.

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 ~~$120,390,000.00 for 2012-2013~~

$131,660,000.00 for 2013-2014 for payments to the school loan bond

redemption fund in the department of treasury on behalf of

districts and intermediate districts. Notwithstanding section 11

296 or any other provision of this act, funds allocated under this

section are not subject to proration and shall be paid in full.

Sec. 11k. For ~~2012-2013,~~ 2013-2014, there is appropriated from

the general fund to the school loan revolving fund an amount equal

to the amount of school bond loans assigned to the Michigan finance

authority, not to exceed the total amount of school bond loans held

in reserve as long-term assets. As used in this section, "school

loan revolving fund" means that fund created in section 16c of the

shared credit rating act, 1985 PA 227, MCL 141.1066c.

Sec. 11m. From the appropriations in section 11, ~~there is~~

~~allocated for 2011-2012 an amount not to exceed $2,100,000.00 and~~

there is allocated for ~~2012-2013~~ 2013-2014 an amount not to exceed

~~$3,200,000.00~~ $4,000,000.00 for fiscal year cash-flow borrowing

costs solely related to the state school aid fund established by

section 11 of article IX of the state constitution of 1963.

Sec. 12. It is the intent of the legislature to appropriate

and allocate for the fiscal year ending September 30, ~~2014~~ 2015 the

same amounts of money from the same sources for the same purposes

as are appropriated and allocated under this article for the fiscal

year ending September 30, ~~2013,~~ 2014, as adjusted for changes in

pupil membership, taxable values, special education costs, interest

costs, and available revenue. These adjustments will be determined

after the January ~~2013~~ 2014 consensus revenue estimating

conference.

Sec. 15. (1) If a district or intermediate district fails to

receive its proper apportionment, the department, upon satisfactory

proof that the district or intermediate district was entitled

justly, shall apportion the deficiency in the next apportionment.

Subject to subsections (2) and (3), if a district or intermediate

district has received more than its proper apportionment, the

department, upon satisfactory proof, shall deduct the excess in the

next apportionment. Notwithstanding any other provision in this

article, state aid overpayments to a district, other than

overpayments in payments for special education or special education

transportation, may be recovered from any payment made under this

article other than a special education or special education

transportation payment, from the proceeds of a loan to the district

under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

141.942, or from the proceeds of millage levied or pledged under

section 1211 of the revised school code, MCL 380.1211. State aid

overpayments made in special education or special education

transportation payments may be recovered from subsequent special

education or special education transportation payments, from the

proceeds of a loan to the district under the emergency municipal

loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds

of millage levied or pledged under section 1211 of the revised

school code, MCL 380.1211.

(2) If the result of an audit conducted by or for the

department affects the current fiscal year membership, affected

payments shall be adjusted in the current fiscal year. A deduction

due to an adjustment made as a result of an audit conducted by or

for the department, or as a result of information obtained by the

department from the district, an intermediate district, the

department of treasury, or the office of auditor general, shall be

deducted from the district's apportionments when the adjustment is

finalized. At the request of the district and upon the district

presenting evidence satisfactory to the department of the hardship,

the department may grant up to an additional 4 years for the

adjustment and may advance payments to the district otherwise

authorized under this ~~act~~ article if the district would otherwise

experience a significant hardship in satisfying its financial

obligations.

(3) If, because of the receipt of new or updated data, the

department determines during a fiscal year that the amount paid to

a district or intermediate district under this article for a prior

fiscal year was incorrect under the law in effect for that year,

the department may make the appropriate deduction or payment in the

district's or intermediate district's allocation for the fiscal

year in which the determination is made. The deduction or payment

shall be calculated according to the law in effect in the fiscal

year in which the improper amount was paid. If the district does

not receive an allocation for the fiscal year or if the allocation

is not sufficient to pay the amount of any deduction, the amount of

any deduction otherwise applicable shall be satisfied from the

proceeds of a loan to the district under the emergency municipal

loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds

of millage levied or pledged under section 1211 of the revised

school code, MCL 380.1211, as determined by the department.

(4) Expenditures made by the department under this article

that are caused by the write-off of prior year accruals may be

funded by revenue from the write-off of prior year accruals.

(5) In addition to funds appropriated in section 11 for all

programs and services, there is appropriated for ~~2012-2013~~ 2013-

2014 for obligations in excess of applicable appropriations an

amount equal to the collection of overpayments, but not to exceed

amounts available from overpayments.

Sec. 18. (1) Except as provided in another section of this

article, each district or other entity shall apply the money

received by the district or entity under this article to salaries

and other compensation of teachers and other employees, tuition,

transportation, lighting, heating, ventilation, water service, the

purchase of textbooks, other supplies, and any other school

operating expenditures defined in section 7. However, not more than

20% of the total amount received by a district or intermediate

district under this article may be transferred by the board to

either the capital projects fund or to the debt retirement fund for

debt service. The money shall not be applied or taken for a purpose

other than as provided in this section. The department shall

determine the reasonableness of expenditures and may withhold from

a recipient of funds under this article the apportionment otherwise

due upon a violation by the recipient.

(2) Within 30 days after a board adopts its annual operating

budget for the following school fiscal year, or after a board

adopts a subsequent revision to that budget, the district shall

make all of the following available through a link on its website

home page, or may make the information available through a link on

its intermediate district's website home page, in a form and manner

prescribed by the department:

(a) The annual operating budget and subsequent budget

revisions.

(b) Using data that have already been collected and submitted

to the department, a summary of district expenditures for the most

recent fiscal year for which they are available, expressed in the

following 2 pie charts:

(i) A chart of personnel expenditures, broken into the

following subcategories:

(A) Salaries and wages.

(B) Employee benefit costs, including, but not limited to,

medical, dental, vision, life, disability, and long-term care

benefits.

(D) All other personnel costs.

(ii) A chart of all district expenditures, broken into the

following subcategories:

(A) Instruction.

(B) Support services.

(D) Operations and maintenance.

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not limited

to, medical, dental, vision, disability, long-term care, or any

other type of benefits that would constitute health care services,

offered to any bargaining unit or employee in the district.

(iii) The audit report of the audit conducted under subsection

(4) for the most recent fiscal year for which it is available.

(iv) The bids required under section 5 of the public employee

health benefits act, 2007 PA 106, MCL 124.75.

(d) The total salary and a description and cost of each fringe

benefit included in the compensation package for the superintendent

of the district and for each employee of the district whose salary

exceeds $100,000.00.

(e) The annual amount spent on dues paid to associations.

(f) The annual amount spent on lobbying or lobbying services.

As used in this subdivision, "lobbying" means that term as defined

in section 5 of 1978 PA 472, MCL 4.415.

(3) For the information required under subsection (2)(a),

(2)(b)(i), and (2)(c), an intermediate district shall provide the

same information in the same manner as required for a district

under subsection (2).

(4) For the purpose of determining the reasonableness of

expenditures and whether a violation of this article has occurred,

all of the following apply:

(a) The department shall require that each district and

intermediate district have an audit of the district's or

intermediate district's financial and pupil accounting records

conducted at least annually at the expense of the district or

intermediate district, as applicable, by a certified public

accountant or by the intermediate district superintendent, as may

be required by the department, or in the case of a district of the

first class by a certified public accountant, the intermediate

superintendent, or the auditor general of the city.

(b) If a district operates in a single building with fewer

than 700 full-time equated pupils, if the district has stable

membership, and if the error rate of the immediately preceding 2

pupil accounting field audits of the district is less than 2%, the

district may have a pupil accounting field audit conducted

biennially but must continue to have desk audits for each pupil

count. The auditor must document compliance with the audit cycle in

the pupil auditing manual. As used in this subdivision, "stable

membership" means that the district's membership for the current

fiscal year varies from the district's membership for the

immediately preceding fiscal year by less than 5%.

audit shall include an analysis of the financial and pupil

accounting data used as the basis for distribution of state school

aid.

(d) The pupil and financial accounting records and reports,

audits, and management letters are subject to requirements

established in the auditing and accounting manuals approved and

published by the department.

(e) All of the following shall be done not later than November

15 each year:

(i) A district shall file the annual financial audit reports

with the intermediate district and the department.

(ii) The intermediate district shall file the annual financial

audit reports for the intermediate district with the department.

(iii) The intermediate district shall enter the pupil membership

audit reports for its constituent districts and for the

intermediate district, for the pupil membership count day and

supplemental count day, in the Michigan student data system.

(f) The annual financial audit reports and pupil accounting

procedures reports shall be available to the public in compliance

with the freedom of information act, 1976 PA 442, MCL 15.231 to

15.246.

(g) Not later than January 31 of each year, the department

shall notify the state budget director and the legislative

appropriations subcommittees responsible for review of the school

aid budget of districts and intermediate districts that have not

filed an annual financial audit and pupil accounting procedures

report required under this section for the school year ending in

the immediately preceding fiscal year.

(5) By November 15 of each year, each district and

intermediate district shall submit to the center, in a manner

prescribed by the center, annual comprehensive financial data

consistent with accounting manuals and charts of accounts approved

and published by the department. For an intermediate district, the

report shall also contain the website address where the department

can access the report required under section 620 of the revised

school code, MCL 380.620. The department shall ensure that the

prescribed Michigan public school accounting manual chart of

accounts includes standard conventions to distinguish expenditures

by allowable fund function and object. The functions shall include

at minimum categories for instruction, pupil support, instructional

staff support, general administration, school administration,

business administration, transportation, facilities operation and

maintenance, facilities acquisition, and debt service; and shall

include object classifications of salary, benefits, including

categories for active employee health expenditures, purchased

services, supplies, capital outlay, and other. Districts shall

report the required level of detail consistent with the manual as

part of the comprehensive annual financial report.

(6) By September 30 of each year, each district and

intermediate district shall file with the department the special

education actual cost report, known as "SE-4096", on a form and in

the manner prescribed by the department.

(7) By October 7 of each year, each district and intermediate

district shall file with the center the transportation expenditure

report, known as "SE-4094", on a form and in the manner prescribed

by the center.

(8) The department shall review its pupil accounting and pupil

auditing manuals at least annually and shall periodically update

those manuals to reflect changes in this article.

(9) If a district that is a public school academy purchases

property using money received under this article, the public school

academy shall retain ownership of the property unless the public

school academy sells the property at fair market value.

(10) If a district or intermediate district does not comply

with subsections (4), (5), (6), and (7), the department shall

withhold all state school aid due to the district or intermediate

district under this article, beginning with the next payment due to

the district or intermediate district, until the district or

intermediate district complies with subsections (4), (5), (6), and

(7). If the district or intermediate district does not comply with

subsections (4), (5), (6), and (7) by the end of the fiscal year,

the district or intermediate district forfeits the amount withheld.

(11) Not later than ~~October 1, 2012,~~ September 1, 2014, if a

district or intermediate district offers online learning, the

district or intermediate district shall submit to the department a

report that details the per-pupil costs of operating the online

learning. The report shall include ~~, on a per-pupil basis,~~ at least

all of the following ~~costs:~~information concerning the operation of

online learning for the school fiscal year ending June 30, 2014:

(a) ~~Textbooks, instructional materials, and supplies,~~

~~including electronic instructional material.~~ The name of the

district operating the online learning and of each district that

enrolled students in the online learning.

(b) ~~Computer and other electronic equipment, including~~

~~internet and telephone access.~~ The total number of students enrolled

in the online learning and the total number of membership pupils

enrolled in the online learning.

For each pupil who is enrolled in a district other than the

district offering online learning, the name of that district.

(d) ~~Purchased courses and curricula.~~ The district in which the

pupil was enrolled before enrolling in the district offering online

learning.

(e) ~~Fees associated with oversight and regulation.~~ The number

of participating students who had previously dropped out of school.

(f) ~~Travel costs associated with school activities and~~

~~testing.~~ The number of participating students who had previously

been expelled from school.

(g) ~~Facilities costs.~~ The total cost to enroll a student in the

program. This cost shall be reported on a per-pupil, per-course,

per-semester or trimester basis. The total shall include costs

broken down by cost for training, personnel, hardware and software,

payment to each online learning provider, and other costs

associated with operating online learning.

(h) ~~Costs associated with special education.~~ The name of each

online education provider contracted by the district and the state

in which each online education provider is headquartered.

~~(12) Not later than December 31, 2012, the department shall~~

~~issue a report to the legislature including the following:~~

~~(a) A review of the data submitted under subsection (11).~~

~~(b) A comparison with costs of substantially similar programs~~

~~in other states and relevant national research on the costs of~~

~~online learning.~~

~~(c) Any conclusions concerning factors or characteristics of~~

~~online learning programs that make a difference in the costs of~~

~~operating the programs.~~

Sec. 18b. (1) Property of a public school academy that was

acquired substantially with funds appropriated under this ~~act~~

article shall be transferred to this state by the public school

academy corporation if any of the following occur:

(a) The public school academy has been ineligible to receive

funding under this ~~act~~ article for 18 consecutive months.

(b) The public school academy's contract has been revoked or

terminated for any reason.

not been reissued by the authorizing body.

(2) A public school academy corporation shall initiate the

process of transferring property to this state as required under

subsection (1) within 30 days after the occurrence of the event

that triggers the process under subsection (1).

(3) ~~(2)~~ Property required to be transferred to this state

under this section includes title to all real and personal

property, interests in real or personal property, and other assets

owned by the public school academy corporation that were

substantially acquired with funds appropriated under this

~~act.~~article.

(4) ~~(3)~~ The state treasurer, or his or her designee, is

authorized to dispose of property transferred to this state under

this section. Except as otherwise provided in this section, the

state treasurer shall deposit in the state school aid fund any

money included in that property and the net proceeds from the sale

of the property or interests in property, after payment by the

state treasurer of any public school academy debt secured by the

property or interest in property.

(5) ~~(4)~~ This section does not impose any liability on this

state, any agency of this state, or an authorizing body for any

debt incurred by a public school academy.

(6) ~~(5)~~ As used in this section and section 18c, "authorizing

body" means an authorizing body defined under section 501 or 1311b

of the revised school code, MCL 380.501 and 380.1311b.

Sec. 19. (1) A district or intermediate district shall comply

with all applicable reporting requirements specified in state and

federal law. Data provided to the center, in a form and manner

prescribed by the center, shall be aggregated and disaggregated as

required by state and federal law. In addition, a district or

intermediate district shall cooperate with all measures taken by

the center to establish and maintain a statewide P-20 longitudinal

data system.

(2) Each district shall furnish to the center not later than 5

weeks after the pupil membership count day and by June 30 of the

school fiscal year ending in the fiscal year, in a manner

prescribed by the center, the information necessary for the

preparation of the district and high school graduation report. This

information shall meet requirements established in the pupil

auditing manual approved and published by the department. The

center shall calculate an annual graduation and pupil dropout rate

for each high school, each district, and this state, in compliance

with nationally recognized standards for these calculations. The

center shall report all graduation and dropout rates to the senate

and house education committees and appropriations committees, the

state budget director, and the department not later than 30 days

after the publication of the list described in subsection (6).

(3) By the first business day in December and by June 30 of

each year, a district shall furnish to the center, in a manner

prescribed by the center, information related to educational

personnel as necessary for reporting required by state and federal

law.

(4) By June 30 of each year, a district shall furnish to the

center, in a manner prescribed by the center, information related

to safety practices and criminal incidents as necessary for

reporting required by state and federal law.

(5) If a district or intermediate district fails to meet the

requirements of this section, the department shall withhold 5% of

the total funds for which the district or intermediate district

qualifies under this article until the district or intermediate

district complies with all of those subsections. If the district or

intermediate district does not comply with all of those subsections

by the end of the fiscal year, the department shall place the

amount withheld in an escrow account until the district or

intermediate district complies with all of those subsections.

(6) Before publishing a list of ~~schools or districts~~

~~determined to have failed to make adequate yearly progress~~ school

or district accountability designations as required by the no child

left behind act of 2001, Public Law 107-110, the department shall

allow a school or district to appeal that determination. The

department shall consider and act upon the appeal within 30 days

after it is submitted and shall not publish the list until after

all appeals have been considered and decided.

(7) It is the intent of the legislature to implement not later

than 2014-2015 statewide standard reporting requirements for

education data approved by the department in conjunction with the

center. The department shall work with the center, intermediate

districts, districts, and other interested stakeholders to develop

recommendations on the implementation of this policy change. A

district or intermediate district shall implement the statewide

standard reporting requirements not later than 2014-2015 or when a

district or intermediate district updates its education data

reporting system, whichever is later.

Sec. 20. (1) For ~~2011-2012, and for 2012-2013,~~ 2013-2014, the

basic foundation allowance is ~~$8,019.00.~~$8,049.00.

(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 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 greater

of $6,966.00 or 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)~~ $10.00) 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]. For 2011-2012, 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 district's foundation allowance for 2010-2011,

minus $470.00. Except as otherwise provided in subdivision (h), for

~~2012-2013,~~ 2013-2014, 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 district's

foundation allowance for the immediately preceding state fiscal

year. 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, 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 for

2011-2012 in an amount equal to the district's foundation allowance

for 2010-2011, minus $470.00. For ~~2012-2013,~~ 2013-2014, 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 ~~for 2012-2013~~ in an

amount equal to the district's foundation allowance for the

immediately preceding state fiscal year.

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. Except as otherwise provided

in subdivision (d), for 2011-2012, for a district that in the 1994-

1995 state fiscal year had a foundation allowance greater than

$6,500.00, the district's foundation allowance is an amount equal

to the district's foundation allowance for the 2010-2011 fiscal

year minus $470.00. For ~~2012-2013,~~ 2013-2014, except as otherwise

provided in subdivision (d), for a district that in the 1994-1995

state fiscal year had a foundation allowance greater than

$6,500.00, the district's foundation allowance is an amount equal

to the district's foundation allowance for the immediately

preceding state fiscal year.

(d) For a district that in the 1994-95 state fiscal year had a

foundation allowance greater than $6,500.00 and that had a

foundation allowance for the 2009-2010 state fiscal year, as

otherwise calculated under this section, that was less than the

basic foundation allowance, the district's foundation allowance for

2011-2012 and each succeeding fiscal year shall be considered to be

an amount equal to the basic foundation allowance.

(e) 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.

(f) 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.

(g) 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.

(h) For 2012-2013, for a district that had a foundation

allowance for the 2011-2012 state fiscal year of less than

$6,966.00, the district's foundation allowance is an amount equal

to $6,966.00.

(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 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. 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.

(6) Except as otherwise provided in this subsection, for

pupils in membership, other than special education pupils, in a

public school academy, the allocation calculated under this section

is an amount per membership pupil other than special education

pupils in the public school academy equal to the foundation

allowance of the district in which the public school academy is

located or the state maximum public school academy allocation,

whichever is less. However, a public school academy that had an

allocation under this subsection before 2009-2010 that was 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 is located and the state portion of that

district's foundation allowance shall not have that allocation

reduced as a result of the 2010 amendment to this subsection.

Notwithstanding section 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) Except as otherwise provided in this subsection, for

pupils attending an achievement school and in membership in the

education achievement system, other than special education pupils,

the allocation calculated under this section is an amount per

membership pupil other than special education pupils equal to the

foundation allowance of the district in which the achievement

school is located, not to exceed the basic foundation allowance.

Notwithstanding section 101, for an achievement school that begins

operation 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 achievement school 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. For the purposes of this subsection, if a public school

is transferred from a district to the state school reform/redesign

district or the achievement authority under section 1280c of the

revised school code, that public school is considered to be an

achievement school within the education achievement system and not

a school that is part of a district, and a pupil attending that

public school is considered to be in membership in the education

achievement system and not in membership in the district that

operated the school before the transfer.

(8) 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 lesser of the sum of 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 plus $100.00 or the highest

foundation allowance among the original or affected districts.

(9) 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.

(10) 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.

(11) 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~~

~~2011-2012, the index shall be 0.93575 and for 2012-2013, 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.

~~(12) 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. A district receiving an adjustment under this~~

~~subsection shall not receive as a result of this adjustment an~~

~~amount that exceeds 50% of the amount the district received as a~~

~~result of this adjustment for 2010-2011. This adjustment shall not~~

~~be made after 2011-2012.~~

~~(13) 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. A district receiving~~

~~an adjustment under this subsection shall not receive as a result~~

~~of this adjustment an amount that exceeds 50% of the amount the~~

~~district received as a result of this adjustment for 2010-2011.~~

~~This adjustment shall not be made after 2011-2012.~~

(12) ~~(14)~~ 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. All of the following apply to districts

receiving a foundation allowance adjustment under this subsection:

(a) Except as otherwise provided in this ~~subsection,~~

subdivision, 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 adjustment 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.~~ subdivision. 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.

(b) A district receiving an adjustment under this subsection

shall not receive as a result of this adjustment an amount that

exceeds 68.5% of the amount the district received as a result of

this adjustment for 2010-2011.

formed or reconfigured by consolidation of 2 or more districts, 1

of which received an adjustment under this subsection for 2012-

2013, the resulting district's foundation allowance for 2013-2014

and each succeeding fiscal year shall be adjusted to be an amount

equal to the sum of the resulting district's foundation allowance

as calculated under subsection (8) excluding any adjustment

calculated under this subsection plus [(the original district's

adjustment under this subsection in 2012-2013 times the number of

pupils in the original district's membership for 2012-2013) divided

by the number of pupils in the resulting district's membership for

2013-2014].

(d) Beginning in 2013-2014, for a district that received an

adjustment for the immediately preceding fiscal year and that had a

foundation allowance as adjusted by this subsection for the

immediately preceding fiscal year equal to $6,966.00, the district

shall not receive an adjustment under this section for the current

fiscal year.

~~(15) 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. A~~

~~district receiving an adjustment under this subsection shall not~~

~~receive as a result of this adjustment an amount that exceeds 50%~~

~~of the amount the district received as a result of this adjustment~~

~~for 2010-2011. This adjustment shall not be made after 2011-2012.~~

~~(16) 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. A~~

~~district receiving an adjustment under this subsection shall not~~

~~receive as a result of this adjustment an amount that exceeds 50%~~

~~of the amount the district received as a result of this adjustment~~

~~for 2010-2011. This adjustment shall not be made after 2011-2012.~~

(13) ~~(17)~~ Payments to districts, public school academies, or

the education achievement system 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.

(14) ~~(18)~~ 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.

(15) ~~(19)~~ 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", except as

otherwise provided in this subdivision, 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 ~~$20.00)~~

$10.00) 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]. ~~For 2011-2012 and 2012-2013,~~

~~maximum public school academy allocation means $7,110.00.~~

(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, supportive housing property, industrial personal

property, or commercial personal property.

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

"qualified forest property", "supportive housing property",

"industrial personal property", and "commercial personal property"

mean those terms as defined in 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. 20d. In making the final determination required under

former section 20a of a district's combined state and local revenue

per membership pupil in 1993-94 and in making calculations under

section 20 for ~~2012-2013,~~ 2013-2014, the department and the

department of treasury shall comply with all of the following:

(a) For a district that had combined state and local revenue

per membership pupil in the 1994-95 state fiscal year of $6,500.00

or more and served as a fiscal agent for a state board designated

area vocational education center in the 1993-94 school year, total

state school aid received by or paid on behalf of the district

pursuant to this act in 1993-94 shall exclude payments made under

former section 146 and under section 147 on behalf of the

district's employees who provided direct services to the area

vocational education center. Not later than June 30, 1996, the

department shall make an adjustment under this subdivision to the

district's combined state and local revenue per membership pupil in

the 1994-95 state fiscal year and the department of treasury shall

make a final certification of the number of mills that may be

levied by the district under section 1211 of the revised school

code, MCL 380.1211, as a result of the adjustment under this

subdivision.

(b) If a district had an adjustment made to its 1993-94 total

state school aid that excluded payments made under former section

146 and under section 147 on behalf of the district's employees who

provided direct services for intermediate district center programs

operated by the district under article 5, if nonresident pupils

attending the center programs were included in the district's

membership for purposes of calculating the combined state and local

revenue per membership pupil for 1993-94, and if there is a signed

agreement by all constituent districts of the intermediate district

that an adjustment under this subdivision shall be made, the

foundation allowances for 1995-96 and 1996-97 of all districts that

had pupils attending the intermediate district center program

operated by the district that had the adjustment shall be

calculated as if their combined state and local revenue per

membership pupil for 1993-94 included resident pupils attending the

center program and excluded nonresident pupils attending the center

program.

Sec. 20f. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $6,000,000.00 for 2013-2014

for payments to eligible districts under this section. A district

is eligible for funding under this section if the sum of the

following is less than $5.00:

(a) The increase in the district's foundation allowance or per

pupil payment as calculated under section 20 from 2012-2013 to

2013-2014.

(b) The district's equity payment per membership pupil under

section 22c.

147a for 2012-2013 divided by the district's membership pupils for

2012-2013 minus the quotient of the district's allocation under

section 147a for 2013-2014 divided by the district's membership

pupils for 2013-2014.

(2) The amount allocated to each eligible district under this

section is an amount per membership pupil equal to $5.00 minus the

sum of the following:

(a) The increase in the district's foundation allowance or per

pupil payment as calculated under section 20 from 2012-2013 to

2013-2014.

(b) The district's equity payment per membership pupil under

section 22c.

147a for 2012-2013 divided by the district's membership pupils for

2012-2013 minus the quotient of the district's allocation under

section 147a for 2013-2014 divided by the district's membership

pupils for 2013-2014.

Sec. 21f. (1) A pupil enrolled in a district in any of grades

5 to 12 is eligible to enroll in an online course as provided for

in this section. However, this section does not apply to a pupil

enrolled in a school of excellence that is a cyber school, as

defined in section 551 of the revised school code, MCL 380.551.

(2) With the consent of the pupil's parent or legal guardian,

a district shall enroll an eligible pupil in up to 2 online courses

as requested by the pupil during an academic term, semester, or

trimester. It is the intent of the legislature to consider

increasing the limit on the number of online courses that a pupil

may enroll in beginning in 2014-2015 for pupils who have

demonstrated previous success with online courses. Consent of the

pupil's parent or legal guardian is not required if the pupil is at

least age 18 or is an emancipated minor.

(3) An eligible pupil may enroll in an online course published

in the pupil's educating district's catalog of online courses

described in subsection (7)(a) or the statewide catalog of online

courses maintained by the Michigan virtual university pursuant to

section 98.

(4) A district shall determine whether or not it has capacity

to accept applications for enrollment from nonresident applicants

in online courses and may use that limit as the reason for refusal

to enroll an applicant. If the number of nonresident applicants

eligible for acceptance in an online course does not exceed the

capacity of the district to provide the online course, the district

shall accept for enrollment all of the nonresident applicants

eligible for acceptance. If the number of nonresident applicants

exceeds the district's capacity to provide the online course, the

district shall use a random draw system, subject to the need to

abide by state and federal antidiscrimination laws and court

orders.

(5) A district may deny a pupil enrollment in an online course

if any of the following apply, as determined by the district:

(a) The pupil has previously gained the credits provided from

the completion of the online course.

(b) The online course is not capable of generating academic

credit.

graduation requirements or career interests of the pupil.

(d) The pupil does not possess the prerequisite knowledge and

skills to be successful in the online course or has demonstrated

failure in previous online coursework in the same subject.

(e) The online course is of insufficient quality or rigor. A

district that denies a pupil enrollment for this reason shall make

a reasonable effort to assist the pupil to find an alternative

course in the same or a similar subject that is of acceptable rigor

and quality.

(6) If a pupil is denied enrollment in an online course by a

district, the pupil may appeal the denial by submitting a letter to

the superintendent of the intermediate district in which the

pupil's educating district is located. The letter of appeal shall

include the reason provided by the district for not enrolling the

pupil and the reason why the pupil is claiming that the enrollment

should be approved. The intermediate district superintendent or

designee shall respond to the appeal within 5 days after it is

received. If the intermediate district superintendent or designee

determines that the denial of enrollment does not meet 1 or more of

the reasons specified in subsection (5), the district shall allow

the pupil to enroll in the online course.

(7) To offer or provide an online course, a district shall do

all of the following:

(a) Provide the Michigan virtual university with the course

syllabus in a form and method prescribed by the department for

inclusion in a statewide online course catalog. The district shall

also provide on its publicly accessible website a link to the

course syllabi for all of the online courses offered by the

district and a link to the statewide catalog of online courses

maintained by the Michigan virtual university.

(b) Offer the online course on an open entry and exit method,

or aligned to a semester, trimester, or accelerated academic term

format.

(8) For a pupil enrolled in 1 or more online courses published

in the pupil's educating district's catalog of online courses under

subsection (7) or in the statewide catalog of online courses

maintained by the Michigan virtual university, the district shall

use foundation allowance or per pupil funds calculated under

section 20 to pay for the expenses associated with the online

course or courses. The district shall pay 80% of the cost of the

online course upon enrollment and 20% upon completion as determined

by the district. A district is not required to pay toward the cost

of an online course an amount that exceeds 1/12 of the district's

foundation allowance or per pupil payment as calculated under

section 20 per semester or an amount that exceeds 1/18 of the

district's foundation allowance or per pupil payment as calculated

under section 20 per trimester.

(9) An online learning pupil shall have the same rights and

access to technology in his or her educating district's school

facilities as all other pupils enrolled in the educating district.

(10) If a pupil successfully completes an online course, as

determined by the district, the pupil's district shall grant

appropriate academic credit for completion of the course and shall

count that credit toward completion of graduation and subject area

requirements. A pupil's school record and transcript shall identify

the online course title as it appears in the online course

syllabus.

(11) The enrollment of a pupil in 1 or more online courses

shall not result in a pupil being counted as more than 1.0 full-

time equivalent pupils under this act.

(12) As used in this section:

(a) "Online course" means a course of study that is capable of

generating a credit or a grade, that is provided in an interactive

internet-connected learning environment, in which pupils are

separated from their teachers by time or location, or both, and in

which a teacher who holds a valid Michigan teaching certificate is

responsible for determining appropriate instructional methods for

each pupil, diagnosing learning needs, assessing pupil learning,

prescribing intervention strategies, reporting outcomes, and

evaluating the effects of instruction and support strategies.

(b) "Online course syllabus" means a document that includes

all of the following:

(i) The state academic standards addressed in an online course.

(ii) The online course content outline.

(iii) The online course required assessments.

(iv) The online course prerequisites.

(v) Expectations for actual instructor contact time with the

online learning pupil and other pupil-to-instructor communications.

(vi) Academic support available to the online learning pupil.

(vii) The online course learning outcomes and objectives.

(viii) The name of the institution or organization providing the

online content.

(ix) The name of the institution or organization providing the

online instructor.

(x) The course titles assigned by the district and the course

titles and course codes from the national center for education

statistics (NCES) school codes for the exchange of data (SCED).

(xi) The number of eligible nonresident pupils that will be

accepted by the district in the online course.

(xii) The results of the online course quality review using the

guidelines and model review process published by the Michigan

virtual university.

more online courses.

Sec. 22a. (1) From the appropriation in section 11, ~~there is~~

~~allocated an amount not to exceed $5,776,000,000.00 for 2011-2012~~

~~and~~ there is allocated an amount not to exceed ~~$5,712,000,000.00~~

~~for 2012-2013~~ $5,630,000,000.00 for 2012-2013 and there is

allocated an amount not to exceed $5,534,000,000.00 for 2013-2014

for payments to districts and qualifying public school academies to

guarantee each district 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 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. 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 tax increment financing acts divided by the

district's membership.

(3) Beginning in 2003-2004, for pupils in membership in a

qualifying public school academy, 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 an amount equal to the 1994-95 per pupil

payment to the qualifying public school academy under section 20.

(4) A district or qualifying public school academy may use

funds allocated under this section in conjunction with any federal

funds for which the district 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) Subject to conditions set forth in this subsection, from~~

~~the allocation in subsection (1), there is allocated for 2011-2012~~

~~only an amount not to exceed $6,000,000.00 for payments to~~

~~districts that meet the eligibility requirements under this~~

~~subsection, for the reduction in school operating revenues~~

~~resulting from a settlement or other disposition of appeals~~

~~described in subdivision (a). A payment may only be made under this~~

~~subsection if a settlement agreement is signed by all applicable~~

~~parties. Payments made under this subsection shall be in accordance~~

~~with the settlement agreement. All of the following apply to~~

~~payments under this subsection:~~

~~(a) To be eligible for a payment under this subsection, a~~

~~district shall be determined by the department and the department~~

~~of treasury to meet all of the following:~~

(i~~) The district does not receive any state portion of its~~

~~foundation allowance, as calculated under section 20(4).~~

(ii~~) Before January 1, 2011, the owner of a natural-gas-powered~~

~~power plant located in a renaissance zone within the district's~~

~~geographic boundaries for 2009 and 2010 appealed to the Michigan~~

~~tax tribunal an order of the state tax commission for tax years~~

~~2009 and 2010 pursuant to section 154 of the general property tax~~

~~act, 1893 PA 206, MCL 211.154, and appealed to the state tax~~

~~commission the 2011 classification and valuation of the power~~

~~plant.~~

(~~iii~~~~) The district received a reduced amount of local school~~

~~operating revenue for tax years 2009, 2010, and 2011 as a result of~~

~~the exemptions of industrial personal property and commercial~~

~~personal property under section 1211 of the revised school code,~~

~~MCL 380.1211.~~

(iv~~) A settlement agreement has been signed to resolve the~~

~~Michigan tax tribunal appeal described in subparagraph (~~ii~~) and a~~

~~memorandum of understanding that stipulates terms of the settlement~~

~~has been executed by the parties.~~

~~(b) A payment made under this subsection shall be in addition~~

~~to renaissance zone reimbursement amounts paid in the 2009-2010 and~~

~~2010-2011 state fiscal years under section 26a to districts~~

~~eligible for payment under this subsection. The 2009-2010 and 2010-~~

~~2011 state fiscal year payments under section 26a to a district~~

~~receiving a payment under this subsection shall not be reduced as a~~

~~result of the reduction to the district's 2009 and 2010 taxable~~

~~value of real property under the appeals described in subdivision~~

~~(a)(~~ii).

(6) ~~(7)~~ 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) "Certified mills" means the lesser of 18 mills or the

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

1993-94.

for which a particular calculation is made.

(d) "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.

(e) "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, qualified agricultural property, qualified forest

property, supportive housing property, industrial personal

property, and commercial personal property could be reduced as

provided in section 1211 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.

(f) "Homestead", "qualified agricultural property", "qualified

forest property", "supportive housing property", "industrial

personal property", and "commercial personal property" mean those

terms as defined in section 1211 of the revised school code, MCL

380.1211.

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

principal residence, qualified agricultural property, qualified

forest property, supportive housing property, industrial personal

property, or commercial personal property.

(i) "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.

(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) "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.

(l) "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, qualified

agricultural property, qualified forest property, supportive

housing property, industrial personal property, and commercial

personal property may be reduced as provided in section 1211 of the

revised school code, MCL 380.1211, the taxable value of homestead,

qualified agricultural property, qualified forest property,

supportive housing property, industrial personal property, and

commercial personal 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 ~~state funds appropriated~~ appropriation

in section 11, ~~there is allocated for 2011-2012 an amount not to~~

~~exceed $3,052,000,000.00 and~~ there is allocated ~~for 2012-2013~~ an

amount not to exceed ~~$3,152,300,000.00~~ $3,215,000,000.00 for 2012-

2013 and there is allocated an amount not to exceed

$3,373,700,000.00 for 2013-2014 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 296, the allocation

to a district under this section shall be an amount equal to the

sum of the amounts calculated under sections 20, 51a(2), 51a(3),

and 51a(11), minus the sum of the allocations to the district under

sections 22a and 51c.

(3) In order to receive an allocation under subsection (1),

each district shall do all of the following:

(a) ~~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.~~Comply with section 1280b of the revised

school code, MCL 380.1280b.

(b) Comply with sections 1278a and 1278b of the revised school

code, MCL 380.1278a and 380.1278b.

federal law to the center and the department in the form and manner

specified by the center or the department, as applicable.

(d) Comply with section 1230g of the revised school code, MCL

380.1230g.

(e) Comply with section 21f.

(4) Districts are encouraged to use funds allocated under this

section for the purchase and support of payroll, human resources,

and other business function software that is compatible with that

of the intermediate district in which the district is located and

with other districts located within that intermediate district.

(5) From the allocation in subsection (1), the department

shall pay up to $1,000,000.00 in litigation costs incurred by this

state related to commercial or industrial property tax appeals,

including, but not limited to, appeals of classification, that

impact revenues dedicated to the state school aid fund.

(6) 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.

(7) It is the intent of the legislature that all

constitutional obligations of this state have been fully funded

under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made by

an entity receiving funds under this article 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.

(8) 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 (7) 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).

(9) 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.

(10) 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.

(11) If a lawsuit challenging payments made to districts

related to costs reimbursed by federal title XIX medicaid funds is

filed against this state, then, for the purpose of addressing

potential liability under such a lawsuit, the state budget director

may place funds allocated under this section in escrow or allocate

money from the funds otherwise allocated under this section, up to

a maximum of 50% of the amount allocated in subsection (1). If

funds are placed in escrow under this subsection, those 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 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.

~~(12) Not later than January 1, 2013, the department shall~~

~~submit a report to the legislature identifying the amount of the~~

~~savings that the department has calculated as having been achieved~~

~~due to the revised number of instructional hours used to calculate~~

~~full-time equated memberships for kindergarten pupils under section~~

~~6(4)(r) as amended by 2011 PA 62.~~

Sec. 22c. From the appropriation in section 11, there is

allocated for 2013-2014 an amount not to exceed $36,000,000.00 to

make equity payments to districts that have a foundation allowance

or per pupil payment as calculated under section 20 for 2013-2014

of less than $7,076.00. The equity payment for a district shall be

an amount per membership pupil equal to the lesser of $50.00 or the

difference between $7,076.00 and the district's 2013-2014

foundation allowance or per pupil payment as calculated under

section 20.

Sec. 22d. (1) From the appropriation in section 11, an amount

not to exceed ~~$2,025,000.00~~ $2,584,600.00 is allocated ~~each fiscal~~

~~year for 2011-2012 and for 2012-2013~~ for 2013-2014 for supplemental

payments to rural districts under this section.

(2) From the allocation under subsection (1), there is

allocated ~~each fiscal year for 2011-2012 and for 2012-2013~~ for

2013-2014 an amount not to exceed ~~$750,000.00~~ $957,300.00 for

payments under this subsection to districts that meet all of the

following:

(a) Operates grades K to 12.

(b) Has fewer than 250 pupils in membership.

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 subsection (2) 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

subsection (2) 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 subsection (2) and shall be paid to the eligible

districts in the same manner as payments under section 22b.

(4) Subject to subsection (6), from the allocation in

subsection (1), there is allocated ~~each fiscal year for 2011-2012~~

~~and for 2012-2013~~ for 2013-2014 an amount not to exceed

~~$1,275,000.00~~ $1,627,300.00 for payments under this subsection to

districts that meet all of the following:

(a) The district has 5.0 or fewer pupils per square mile as

determined by the department.

(b) The district has a total square mileage greater than 200.0

or is 1 of 2 districts that have consolidated transportation

services and have a combined total square mileage greater than

200.0.

(5) The funds allocated under subsection (4) shall be

allocated on an equal per pupil basis.

(6) A district receiving funds allocated under subsection (2)

is not eligible for funding allocated under subsection (4).

Sec. 22f. (1) From the appropriation in section 11, there is

allocated for ~~2012-2013~~ 2013-2014 an amount not to exceed

$80,000,000.00 to provide incentive payments to districts that meet

best practices under this section. Payments received under this

section may be used for any purpose for which payments under

sections 22a and 22b may be used.

(2) The amount of the incentive payment under this section is

an amount equal to $52.00 per pupil. A district shall receive an

incentive payment under this section if the district satisfies at

least 7 of the following requirements not later than June 1,

~~2013:~~2014:

(a) If a district provides medical, pharmacy, dental, vision,

disability, long-term care, or any other type of benefit that would

constitute a health care services benefit, to employees and their

dependents, the district is the policyholder for each of its

insurance policies that covers 1 or more of these benefits. A

district that does not directly employ its staff or a district with

a voluntary employee beneficiary association that pays no more than

the maximum per employee contribution amount and that contributes

no more than the maximum employer contribution percentage of total

annual costs for the medical benefit plans as described in sections

3 and 4 of the publicly funded health insurance contribution act,

2011 PA 152, MCL 15.563 and 15.564, is considered to have satisfied

this requirement.

(b) The district has obtained competitive bids on the

provision of pupil transportation, food service, custodial, or 1 or

more other noninstructional services for ~~2012-2013.~~2013-2014. In

comparing competitive bids to the current costs of providing 1 or

more of these services, a district shall exclude the unfunded

accrued liability costs for retirement and other benefits from the

district's current costs.

nonresident applicants under section 105 or 105c. A public school

academy is considered to have met this requirement.

(d) The district monitors individual pupil academic growth in

each subject area at least twice during the school year using

competency-based online assessments and reports those results to

the pupil and his or her parent or guardian, or provides the

department with a plan and is able to show progress toward

developing the technology infrastructure necessary for the

implementation of pupil academic growth assessments by 2014-2015.

(e) The district supports opportunities for pupils to receive

postsecondary credit while attending secondary school, by doing at

least 1 of the following, and makes all eligible pupils and their

parents or guardians aware of these opportunities:

(i) Supports attendance of district pupils under the

postsecondary enrollment options act, MCL 388.511 to 388.524, or

under the career and technical preparation act, MCL 388.1901 to

388.1913, consistent with provisions under section 21b.

(ii) Offers college-level equivalent courses, as defined in

section 1471 of the revised school code, MCL 380.1471.

(iii) Participates in a middle college. For the purposes of this

subparagraph, "middle college" means a series of courses and other

requirements and conditions that allow a pupil to graduate with a

high school diploma and a certificate or degree from a community

college or state public university.

(iv) Provides other opportunities to pupils that allow those

pupils to graduate with a high school diploma and also complete

coursework that a postsecondary institution normally applies toward

satisfaction of degree requirements.

(v) If a district does not offer any high school grades, the

district informs all pupils and parents of the opportunities that

are available for postsecondary options during high school.

(f) The district offers online ~~instructional programs~~ courses

or blended learning opportunities to all eligible pupils. In order

to satisfy this requirement, ~~districts must~~ a district must make

all eligible pupils and their parents or guardians aware of these

opportunities and must publish an online course syllabus as

described in section 21f for each online course that the district

offers. For the purposes of this subdivision:

(i) "Blended learning" means a hybrid instructional delivery

model where pupils are provided ~~face-to-face~~ content, instruction,

and assessment in part at a supervised ~~school~~ educational facility

away from home where the pupil and a teacher with a valid Michigan

teaching certificate are in the same physical location and

~~partially~~ in part through ~~computer-based and~~ internet-connected

learning environments with some degree of pupil control over time,

location, and pace of instruction.

(ii) "Online ~~instructional program"~~ course" means a course of

study that ~~generates~~ is capable of generating a credit or a grade,

that is provided in an interactive ~~computer-based and~~ internet-

connected learning environment, in which pupils are separated from

their teachers by time or location, or both, and in which a

~~Michigan certificated~~ teacher with a valid Michigan teaching

certificate is responsible for ~~providing direct instruction,~~

determining appropriate instructional methods for each pupil,

diagnosing learning needs, assessing pupil learning, prescribing

intervention strategies, reporting outcomes, and evaluating the

effects of instruction and support strategies.

(g) The district provides to parents and community members a

dashboard or report card demonstrating the district's efforts to

manage its finances responsibly. The dashboard or report card shall

include revenue and expenditure projections for the district for

fiscal year 2013-2014 and fiscal year 2014-2015, a listing of all

debt service obligations, detailed by project, including

anticipated fiscal year 2013-2014 payment for each project, a

listing of total outstanding debt, and at least all of the

following for the 3 most recent school years for which the data are

available:

(i) Graduation and dropout rates.

(ii) Average class size in grades kindergarten to 3.

(iii) College readiness as measured by Michigan merit

examination test scores.

(iv) Elementary and middle school MEAP scores.

(v) Teacher, principal, and superintendent salary information

including at least minimum, average, and maximum pay levels.

(vi) General fund balance.

(vii) The total number of days of instruction provided.

(h) The district provides physical education ~~consistent with~~

~~the state board's policy on quality physical education adopted~~

~~September 25, 2003,~~ or provides health education. ~~consistent with~~

~~the state board's policy on comprehensive school health education~~

~~adopted June 8, 2004.~~

(3) If the department determines that a district has

intentionally submitted false information in order to qualify for

an incentive payment under this section, the district forfeits an

amount equal to the amount it received under this section from its

total state school aid for ~~2013-2014.~~2014-2015.

(4) If the department determines that funds allocated under

this section will remain unexpended after the initial allocation of

$52.00 per pupil to eligible districts under subsection (2), the

remaining unexpended amount is allocated on an equal per pupil

basis to districts that meet the requirements of subsection (2) and

that have a foundation allowance, as calculated under section 20,

in an amount that is less than the basic foundation allowance under

that section.

Sec. 22g. (1) From the funds appropriated in section 11, there

is allocated for ~~2012-2013~~ 2013-2014 only an amount not to exceed

~~$10,000,000.00~~ $5,000,000.00 for competitive assistance grants to

districts and intermediate districts. ~~Money allocated in this~~

~~section represents a portion of the year-end state school aid fund~~

~~balance for 2011-2012.~~

(2) Funds received under this section may be used for

reimbursement of transition costs associated with ~~the consolidation~~

~~of operations or services between 2 or more districts, intermediate~~

~~districts, or other local units of government or~~ the consolidation

of districts or intermediate districts. Grant funding shall be

available for consolidations that occur on or after June 1, ~~2012.~~

2013. The department shall develop an application process and

method of grant distribution. ~~However, a district or intermediate~~

~~district is not eligible to receive funding under this section if~~

~~the district or intermediate district receives a grant from the~~

~~competitive grant assistance program in the department of treasury~~

~~appropriations for 2012-2013 under section 951 of article VIII of~~

~~Enrolled House Bill No. 5365 of the 96th Legislature.~~

Sec. 22i. (1) From the ~~funds~~ state school aid fund money

appropriated in section 11, there is allocated for ~~2012-2013~~ 2013-

2014 an amount not to exceed ~~$50,000,000.00~~ $45,000,000.00 for the

technology infrastructure ~~grants to~~ grant program for districts or

to intermediate districts on behalf of their constituent districts.

Funds received under this ~~section~~ subsection shall be used for

~~access to a computer-adaptive test or for~~ the development or

improvement of a district's technology infrastructure, ~~including,~~

~~but not limited to, hardware and software,~~ the shared services

consolidation of technology and data, and hardware in preparation

for the planned implementation in 2014-2015 of online growth

assessments.

(2) The department shall develop a competitive application

process and method of grant distribution to eligible districts and

intermediate districts that demonstrate need for grants under

subsection (1). The department may consult with the department of

technology, management, and budget during the grant process and

grant distribution. Grants to districts shall not exceed

$2,000,000.00 per district. A grant to an intermediate district on

behalf of its constituent districts shall not exceed $2,000,000.00

per constituent district. To receive a grant under ~~this section,~~

subsection (1), an intermediate district shall demonstrate that a

grant awarded to the intermediate district on behalf of its

constituent districts would provide savings compared to providing

grants to individual districts.

(3) From the general fund money appropriated in section 11,

there is allocated an amount not to exceed $5,000,000.00 for 2013-

2014 to be awarded through a competitive bid process to a single

provider of whole-school technology as described in this

subsection. The department shall issue a single request for

proposal with application rules written and administered by the

department, and with a focus on economic and geographic diversity.

To be eligible to receive the grant under this section, a provider

shall meet all of the following:

(a) Agrees to submit evaluation criteria in a form and manner

determined by the department.

(b) Provides at least all of the following:

(i) One-to-one mobile devices.

(ii) Laptop or desktop computers for each classroom.

(iii) On- and off-campus filtering.

(iv) Wireless networks and peripherals.

(v) Wireless audio equipment.

(vi) Operating software.

(vii) Instructional software.

(viii) Repairs and replacements.

(ix) Professional development.

(x) Ongoing support.

Sec. 22j. (1) From the appropriation in section 11, there is

allocated for ~~2012-2013~~ 2013-2014 an amount not to exceed

~~$30,000,000.00~~ $46,400,000.00 to provide separate incentive

payments to districts that meet student academic performance

funding goals under subsections (2) to (5). Payments received under

this section may be used for any purpose for which payments under

sections 22a and 22b may be used.

(2) The maximum amount of the incentive payment for student

academic performance is an amount equal to $100.00 per pupil.

Payments calculated and awarded to qualifying districts under

subsections (3) to (5) shall be calculated and awarded separately,

and a district may receive a payment under any or all of

subsections (3) to (5).

(3) An amount not to exceed 30% of the maximum per pupil

amount allocated under subsection (2) shall be used to make

performance incentive payments to qualifying districts under this

subsection based on pupil performance on state assessments in

mathematics in grades 3 to 8. The amount of a payment under this

subsection is an amount equal to $30.00 per pupil for all pupils in

membership in a qualifying district. The department shall determine

the qualifying districts under this subsection as follows:

(a) Using a model determined by the department that

incorporates the most recent cut scores adopted for the Michigan

educational assessment program for each pupil in grades 3 to 8 in

the ~~2010-2011~~ 2011-2012 school year, the department shall calculate

a point score using a metric that assigns points to each of those

pupils as follows:

(i) For each pupil who began the school year not performing

proficiently in mathematics and who declines in proficiency, as

determined by the department, over the school year, 0 points.

(ii) For each pupil who began the school year performing

proficiently in mathematics and declines in proficiency, as

determined by the department, over the school year, 0 points.

(iii) For each pupil who began the school year not performing

proficiently in mathematics and who maintains his or her level of

proficiency, as determined by the department, over the school year,

1 point.

(iv) For each pupil who began the school year performing

proficiently in mathematics and who maintains his or her level of

proficiency, as determined by the department, over the school year,

2 points.

(v) For each pupil who began the school year not performing

proficiently in mathematics and who improves in proficiency, as

determined by the department, over the school year, 3 points.

(vi) For each pupil who began the school year performing

proficiently in mathematics and who improves in proficiency, as

determined by the department, over the school year, 2 points.

(b) The department shall then calculate a district average for

this metric for the ~~2010-2011~~ 2011-2012 school year by totaling the

number of points for all pupils in grades 3 to 8 under subdivision

(a) and dividing that total by the number of those pupils.

this subsection if the district average for the ~~2010-2011~~ 2011-2012

school year under subdivision (b) is at least equal to a factor of

1.5, and the district tested at least 95% of its pupils in

mathematics, and the district had at least 30 full academic year

pupils in grades 3 to 8 with a performance level change designation

in mathematics.

(4) An amount not to exceed 30% of the maximum per pupil

amount allocated under subsection (2) shall be used to make

performance incentive payments to qualifying districts under this

subsection based on pupil performance on state assessments in

reading in grades 3 to 8. The amount of a payment under this

subsection is an amount equal to $30.00 per pupil for all pupils in

membership in the district. The department shall determine the

qualifying districts under this subsection as follows:

(a) Using a model determined by the department that

incorporates the most recent cut scores adopted for the Michigan

educational assessment program for each pupil in grades 3 to 8 in

the ~~2010-2011~~ 2011-2012 school year, the department shall calculate

a point score using a metric that assigns points to each of those

pupils as follows:

(i) For each pupil who began the school year not performing

proficiently in reading and who declines in proficiency, as

determined by the department, over the school year, 0 points.

(ii) For each pupil who began the school year performing

proficiently in reading and declines in proficiency, as determined

by the department, over the school year, 0 points.

(iii) For each pupil who began the school year not performing

proficiently in reading and who maintains proficiency, as

determined by the department, over the school year, 1 point.

(iv) For each pupil who began the school year performing

proficiently in reading and who maintains proficiency, as

determined by the department, over the school year, 2 points.

(v) For each pupil who began the school year not performing

proficiently in reading and who improves in proficiency, as

determined by the department, over the school year, 3 points.

(vi) For each pupil who began the school year performing

proficiently in reading and who improves in proficiency, as

determined by the department, over the school year, 2 points.

(b) The department shall then calculate a district average for

this metric for the ~~2010-2011~~ 2011-2012 school year by totaling the

number of points for all pupils in grades 3 to 8 under subdivision

(a) and dividing that total by the number of those pupils.

this subsection if the district average for the ~~2010-2011~~ 2011-2012

school year under subdivision (b) is at least equal to a factor of

1.5, and the district tested at least 95% of its pupils in reading,

and the district had at least 30 full academic year pupils in

grades 3 to 8 reading with a performance level change designation

in reading.

(5) An amount not to exceed 40% of the maximum per pupil

amount allocated under subsection (2) shall be used to make

performance incentive payments to qualifying districts under this

subsection for high school improvement using a metric based on the

positive trend over a 4-year period in the percentage of high

school pupils in the district testing as proficient in all tested

subject areas on the state assessments of high school pupils. The

amount of a payment under this subsection is an amount equal to

$40.00 per pupil for all pupils in membership in the district. The

department shall determine the qualifying districts under this

subsection as follows:

(a) Calculate a linear regression of the percentage of high

school pupils in the district testing as proficient in all tested

subject areas on state assessments of high school pupils on school

year over the 4-year period ending with the ~~2010-2011~~ 2011-2012

school year as adjusted for changes in cut scores most recently

adopted for the Michigan merit examination.

(b) Calculate a statewide average for all districts operating

a high school of the linear regression of the percentage of high

school pupils testing as proficient in all tested subject areas on

state assessments of high school pupils on school year over the 4-

year period ending with the ~~2010-2011~~ 2011-2012 school year, as

adjusted for changes in cut scores most recently adopted for the

Michigan merit examination as the base year for all comparisons.

this subsection if the district's linear regression over the 4-year

period ending with the ~~2010-2011~~ 2011-2012 school year under

subdivision (a) is at least equal to the statewide average linear

regression over the 4-year period ending with the base year under

subdivision (b), and the district's linear regression over the 4-

year period ending with the ~~2010-2011~~ 2011-2012 school year under

subdivision (a) is positive, and the district tested 95% of high

school pupils in each tested subject on ~~the Michigan merit~~

~~examination,~~ state assessments, and the district had at least 20

full academic year pupils take all tested subjects on ~~the Michigan~~

~~merit examination~~ state assessments of high school pupils over each

of the most recent 4 years.

(6) If the allocation under subsection (1) is insufficient to

fully fund payments as otherwise calculated under this section, the

department shall prorate payments under this section on an equal

percentage basis.

Sec. 22k. (1) From the appropriation in section 11, there is

allocated for 2013-2014 an amount not to exceed $8,000,000.00 for

competitive student-centric grants to eligible districts.

(2) In order to be eligible to receive grants, a district

shall demonstrate to the satisfaction of the department that the

district does all of the following:

(a) Provides a rigorous curriculum aligned to state, national,

and international standards.

(b) Organizes instructional delivery in such a way that

individual pupils advance to the next level of learning based on

their individual mastery of each subject area.

(d) Ensures that teachers have access to all of the following:

(i) Timely and meaningful pupil academic achievement data.

(ii) Best instructional practices.

(iii) Time to collaborate with others.

(iv) Mentors.

(v) Professional development tied to pupil needs as

demonstrated by data.

(3) A district seeking a grant under this section shall submit

an application to the department by October 1, 2013 in a form and

manner prescribed by the department. The department shall award

grants on a per pupil basis to eligible recipients no later than

December 30, 2013.

Sec. 24. (1) From the appropriation in section 11, there is

allocated for ~~2012-2013~~ 2013-2014 an amount not to exceed

$8,000,000.00 for payments to the educating district or

intermediate district for educating pupils assigned by a court or

the department of human services to reside in or to attend a

juvenile detention facility or child caring institution licensed by

the department of human services and approved by the department to

provide an on-grounds education program. The amount of the payment

under this section to a district or intermediate district shall be

calculated as prescribed under subsection (2).

(2) The total amount allocated under this section shall be

allocated by paying to the educating district or intermediate

district an amount equal to the lesser of the district's or

intermediate district's added cost or the department's approved per

pupil allocation for the district or intermediate district. For the

purposes of this subsection:

(a) "Added cost" means 100% of the added cost each fiscal year

for educating all pupils assigned by a court or the department of

human services to reside in or to attend a juvenile detention

facility or child caring institution licensed by the department of

human services or the department of licensing and regulatory

affairs and approved by the department to provide an on-grounds

education program. Added cost shall be computed by deducting all

other revenue received under this ~~act~~ article 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.

(b) "Department's approved per pupil allocation" for a

district or intermediate district shall be determined by dividing

the total amount allocated under this section for a fiscal year by

the full-time equated membership total for all pupils approved by

the department to be funded under this section for that fiscal year

for the district or intermediate district.

(3) A district or intermediate district educating pupils

described in this section at a residential child caring institution

may operate, and receive funding under this section for, a

department-approved on-grounds educational program for those pupils

that is longer than 181 days, but not longer than 233 days, if the

child caring institution was licensed as a child caring institution

and offered in 1991-92 an on-grounds educational program that was

longer than 181 days but not longer than 233 days and that was

operated by a district or intermediate district.

(4) Special education pupils funded under section 53a shall

not be funded under this section.

Sec. 24a. From the appropriation in section 11, there is

allocated an amount not to exceed ~~$2,135,800.00 for 2012-2013~~

$2,167,500.00 for 2013-2014 for payments to intermediate districts

for pupils who are placed in juvenile justice service facilities

operated by the department of human services. Each intermediate

district shall receive an amount equal to the state share of those

costs that are clearly and directly attributable to the educational

programs for pupils placed in facilities described in this section

that are located within the intermediate district's boundaries. The

intermediate districts receiving payments under this section shall

cooperate with the department of human services to ensure that all

funding allocated under this section is utilized by the

intermediate district and department of human services for

educational programs for pupils described in this section. Pupils

described in this section are not eligible to be funded under

section 24. However, a program responsibility or other fiscal

responsibility associated with these pupils shall not be

transferred from the department of human services to a district or

intermediate district unless the district or intermediate district

consents to the transfer.

Sec. 24c. From the appropriation in section 11, there is

allocated an amount not to exceed $1,500,000.00 for ~~2012-2013~~ 2013-

2014 for payments to districts for pupils who are enrolled in a

nationally administered community-based education and youth

mentoring program, known as the youth challenge program, that is

located within the district and is administered by the department

of military and veterans affairs. Both of the following apply to a

district receiving payments under this section:

(a) The district shall contract with the department of

military and veterans affairs to ensure that all funding allocated

under this section is utilized by the district and the department

of military and veterans affairs for the youth challenge program.

(b) The district may retain for its administrative expenses an

amount not to exceed 3% of the amount of the payment the district

receives under this section.

Sec. 25e. (1) The center shall work with the department,

districts, and intermediate districts to develop a pupil transfer

application modeled on the graduation and dropout application and

to develop a pupil transfer process under this section. The center

shall complete development of this pupil transfer application not

later than November 1, 2013.

(2) If a pupil transfers from a district or intermediate

district to enroll in another district or intermediate district

after the pupil membership count day and, due to the pupil's

enrollment and attendance status as of the pupil membership count

day, the pupil was not counted in membership in the educating

district or intermediate district, the educating district or

intermediate district may report the enrollment and attendance

information within 30 days after the transfer to the center through

the pupil transfer application until the supplemental count day.

Upon receipt of the transfer information under this subsection

indicating that a pupil has enrolled and is in attendance in an

educating district or intermediate district as described in this

subsection, the pupil transfer application shall do the following:

(a) Notify the district in which the pupil was previously

enrolled. The district shall provide pupil exit dates and other

information as required by the center and the department.

(b) Notify both the pupil auditing staff of the intermediate

district in which the educating district is located and the pupil

auditing staff of the intermediate district in which the district

that previously enrolled the pupil is located. The pupil auditing

staff shall edit, if necessary, and approve the transfer.

department for use in adjusting the state aid payment system.

(3) The department shall do all of the following:

(a) Adjust the membership calculation for each district or

intermediate district in which the pupil was previously counted in

membership or that previously received an adjustment in its

membership calculation under this section due to the pupil's

enrollment and attendance, if any, so that the district's or

intermediate district's membership is prorated to allow the

district or intermediate district to receive for each school day in

which the pupil was enrolled and in attendance in the district an

amount equal to 1/180 of the foundation allowance or per pupil

payment as calculated under section 20 for the district or

intermediate district. The foundation allowance or per pupil

payment shall be adjusted by the pupil's full-time equated status

as affected by the membership definition under section 6(4).

(b) Adjust the membership calculation for the educating

district or intermediate district for each school day in which the

pupil is enrolled and is in attendance in the educating district or

intermediate district so that the district's or intermediate

district's membership is increased to allow the district or

intermediate district to receive, for each school day between the

day the pupil enrolled in the educating district and the

supplemental count day, an amount equal to 1/180 of the foundation

allowance or per pupil payment as calculated under section 20 for

the educating district or intermediate district. The foundation

allowance or per pupil payment shall be adjusted by the pupil's

full-time equated status as affected by the membership definition

under section 6(4).

(4) The changes in calculation of state school aid required

under subsection (3) shall take effect as of the date that the

pupil becomes enrolled and in attendance in the educating district

or intermediate district, and the department shall base all

subsequent payments under this article for the fiscal year to the

affected districts or intermediate districts on this recalculation

of state school aid.

(5) If a pupil enrolls in an educating district or

intermediate district as described in subsection (2), the district

or intermediate district in which the pupil is counted in

membership or another educating district or intermediate district

that received an adjustment in its membership calculation under

subsection (3), if any, and the educating district or intermediate

district shall provide to the center and the department all

information they require to comply with this section.

(6) As used in this section, "educating district or

intermediate district" means the district or intermediate district

in which a pupil enrolls after the pupil membership count day or

after an adjustment was made in another district's or intermediate

district's membership calculation under this section due to the

pupil's enrollment and attendance.

Sec. 26a. (1) From the state school aid fund appropriation in

section 11, there is allocated ~~an amount not to exceed~~

~~$25,137,500.00 for 2011-2012 and~~ an amount not to exceed

$26,300,000.00 for ~~2012-2013~~ 2013-2014 to reimburse districts and

intermediate districts pursuant to section 12 of the Michigan

renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied

in ~~2012.~~ 2013. 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.

(2) In addition to the allocation under subsection (1), from

the general fund money appropriated under section 11, there is

allocated an amount not to exceed ~~$1,500,000.00 for 2012-2013~~

$3,200,000.00 for 2013-2014 to reimburse public libraries pursuant

to section 12 of the Michigan renaissance zone act, 1996 PA 376,

MCL 125.2692, for taxes levied in 2012. 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) From the appropriation in section 11, there is

allocated for ~~2012-2013~~ 2013-2014 an amount not to exceed

~~$3,328,000.00~~ $4,009,500.00 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. 26c. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$276,800.00 for 2011-2012 and an~~

~~amount not to exceed $347,800.00~~ $209,400.00 for 2012-2013 and an

amount not to exceed $266,200.00 for 2013-2014 to the promise zone

fund created in subsection (3).

(2) Funds allocated to the promise zone fund under this

section shall be used solely for payments to eligible districts and

intermediate districts that have a promise zone development plan

approved by the department of treasury under section 7 of the

Michigan promise zone authority act, 2008 PA 549, MCL 390.1667.

(3) The promise zone fund is created as a separate account

within the state school aid fund to be used solely for the purposes

of the Michigan promise zone authority act, 2008 PA 549, MCL

390.1661 to 390.1679. All of the following apply to the promise

zone fund:

(a) The state treasurer shall direct the investment of the

promise zone fund. The state treasurer shall credit to the promise

zone fund interest and earnings from fund investments.

(b) Money in the promise zone fund at the close of a fiscal

year shall remain in the promise zone fund and shall not lapse to

the general fund.

(4) Subject to subsection (2), the state treasurer may make

payments from the promise zone fund to eligible districts and

intermediate districts pursuant to the Michigan promise zone

authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

for the purposes of a promise zone authority created under that

act.

Sec. 31a. (1) From the state school aid fund money

appropriated in section 11, there is allocated for ~~2012-2013~~ 2013-

2014 an amount not to exceed $317,695,500.00 for payments to

eligible districts, eligible public school academies, and the

education achievement system under this section. Subject to

subsection (14), the amount of the additional allowance under this

section, other than funding under subsection (6) or (7), shall be

based on the number of actual pupils in membership in the district

or public school academy or the education achievement system 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 1769i, and reported to the department not later than the fifth

Wednesday after the pupil membership count day of the immediately

preceding fiscal year and adjusted not later than December 31 of

the immediately preceding fiscal year in the form and manner

prescribed by the center. However, for a public school academy that

began operations as a public school academy, or for an achievement

school that began operations as an achievement school, 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 or the education achievement system 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 and reported to the department

not later than the fifth Wednesday after the pupil membership count

day.

(2) To be eligible to receive funding under this section,

other than funding under subsection (6) or (7), a district or

public school academy that has not been previously determined to be

eligible or the education achievement system shall apply to the

department, in a form and manner prescribed by the department, and

a district or public school academy or the education achievement

system must meet all of the following:

(a) The sum of the district's or public school academy's or

the education achievement system's combined state and local revenue

per membership pupil in the current state fiscal year, as

calculated under section 20, is less than or equal to the basic

foundation allowance under section 20 for the current state fiscal

year.

(b) The district or public school academy or the education

achievement system 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 or the

education achievement system shall receive under this section for

each membership pupil in the district or public school academy or

the education achievement system 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 not later than the fifth Wednesday after the pupil

membership count day 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 the public school academy's or

the education achievement system's per pupil amount calculated

under section 20, not to exceed the basic foundation allowance

under section 20 for the current state fiscal year, or of the

public school academy's or the education achievement system'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, or an achievement school that began

operations as an achievement school, 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 or in the education achievement system 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 not later than the fifth

Wednesday after the pupil membership count day 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 or the education achievement system'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, or the education achievement system,

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), (6), or (7). In addition, a

district that is a school district of the first class 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), or the

education achievement system if it meets this requirement, may use

not more than 20% of the funds it receives under this section for

school security. A district, the public school academy, or the

education achievement system 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

or the education achievement system under this section in the

immediately preceding year and already being used by the district

or public school academy or the education achievement system 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 (12), 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, or the education

achievement system if it operates a school breakfast program, 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 or the education achievement system receives funds under

this section, necessary to pay for costs associated with the

operation of the school breakfast program.

(6) From the funds allocated under subsection (1), there is

allocated for ~~2012-2013~~ 2013-2014 an amount not to exceed

$3,557,300.00 to support child and adolescent health centers. These

grants shall be awarded for 5 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 5-year period after

the noncompliance. To continue to receive funding for a child and

adolescent health center under this section a grant recipient shall

ensure that the child and adolescent 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 child and adolescent 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. Funding under this

subsection shall be used to support child and adolescent health

center services provided to children up to age 21. 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 (14) for that fiscal year.

(7) From the funds allocated under subsection (1), there is

allocated for ~~2012-2013~~ 2013-2014 an amount not to exceed

$5,150,000.00 for the state portion of the hearing and vision

screenings as described in section 9301 of the public health code,

1978 PA 368, MCL 333.9301. A local public health department shall

pay at least 50% of the total cost of the screenings. The frequency

of the screenings shall be as required under R 325.13091 to R

325.13096 and R 325.3271 to R 325.3276 of the Michigan

administrative code. Funds shall be awarded in a form and manner

approved jointly by the department and the department of community

health. Notwithstanding section 17b, payments to eligible entities

under this subsection shall be paid on a schedule determined by the

department.

(8) Each district or public school academy receiving funds

under this section and the education achievement system 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 or the education achievement system 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 or the education achievement system 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 or the education achievement system 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 or the education achievement system complies

with this subsection. If the district or public school academy or

the education achievement system 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.

(9) In order to receive funds under this section, a district

or public school academy or the education achievement system 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 or the education

achievement system shall reimburse the state for all disallowances

found in the audit.

(10) Subject to subsections (5), (6), (7), (12), and (13), ~~any~~

a 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-12,

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), (7), (12), and (13), ~~if a district obtains a~~

~~waiver from the department, the~~ a 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-12, 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.~~

(11) A district or public school academy or the education

achievement system 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.

(12) For an individual school or schools operated by a

district or public school academy receiving funds under this

section or the education achievement system that have been

determined by the department to meet the adequate yearly progress

standards of the 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 or the education achievement system may

use not more than 20% of the funds it receives under this section

for specific alternative purposes identified by the district or

public school academy or the education achievement system that are

designed to benefit at-risk pupils in the school, but that may be

different from the purposes otherwise allowable under this section.

If a district or public school academy or the education achievement

system uses funds for alternative purposes allowed under the

flexibility provisions under this subsection, the district or

public school academy or the education achievement system shall

maintain documentation of the amounts used for those alternative

purposes and shall make that information available to the

department upon request.

(13) A district or public school academy that receives funds

under this section or the education achievement system may use

funds it receives under this section to implement and operate an

early intervening program for pupils in grades K to 3 that meets

either or both of the following:

(a) Monitors individual pupil learning and provides specific

support or learning strategies to pupils 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) Provides early intervening strategies using school-wide

systems of academic and behavioral supports and is 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 school-wide 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.

(14) If necessary, and before any proration required under

section ~~11,~~ 296, 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).

(15) 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.

(16) 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~~ arts 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. At-risk pupil also includes all pupils in a priority school

as defined in the elementary and secondary education act of 2001

flexibility request approved by the United States department of

education. 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, science test, or social studies 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~~ writing, mathematics, science, or social

studies components 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.

(17) A district or public school academy that receives funds

under this section or the education achievement system may use

funds received under this section to provide an anti-bullying or

crisis intervention program.

Sec. 31d. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $22,495,100.00 for ~~2012-2013~~

2013-2014 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 ~~2012-2013~~ 2013-2014 all available federal funding,

estimated at ~~$400,000,000.00,~~ $460,000,000.00 for the national

school lunch program and all available federal funding, estimated

at ~~$2,506,000.00,~~ $3,200,000.00 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.

(7) In purchasing food for a school lunch program funded under

this section, preference shall be given to food that is grown or

produced by Michigan businesses if it is competitively priced and

of comparable quality.

Sec. 31f. (1) From the appropriations in section 11, there is

allocated an amount not to exceed ~~$9,625,000.00 for 2012-2013~~

$5,625,000.00 for 2013-2014 for the purpose of making payments to

districts to reimburse for the cost of providing breakfast.

(2) The funds allocated under this section for school

breakfast programs shall be made available to all eligible

applicant districts that meet all of the following criteria:

(a) The district participates in the federal school breakfast

program and meets all standards as prescribed by 7 CFR parts 220

and 245.

(b) Each breakfast eligible for payment meets the federal

standards described in subdivision (a).

(3) The payment for a district under this section is at a per

meal rate equal to the lesser of the district's actual cost or 100%

of the statewide average cost of a breakfast served, as determined

and approved by the department, less federal reimbursement,

participant payments, and other state reimbursement. The statewide

average cost shall be determined by the department using costs as

reported in a manner approved by the department for the preceding

school year.

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

may be made pursuant to an agreement with the department.

(5) In purchasing food for a school breakfast program funded

under this section, preference shall be given to food that is grown

or produced by Michigan businesses if it is competitively priced

and of comparable quality.

Sec. 32d. (1) From the funds appropriated in section 11, there

is allocated to eligible intermediate districts and consortia of

intermediate districts for great start readiness programs an amount

not to exceed ~~$109,275,000.00 for 2012-2013.~~ $149,275,000.00 for

2013-2014. In addition, from the funds appropriated in section 11,

there is allocated to the great start readiness reserve fund

created under subsection (14) an amount not to exceed

$25,000,000.00 for 2013-2014. Funds allocated under this section

for great start readiness programs shall be used to provide part-

day, school-day, or GSRP/head start blended comprehensive free

compensatory classroom programs designed to ~~do 1 or both of the~~

~~following:~~

~~(a) Improve~~ improve the readiness and subsequent achievement

of educationally disadvantaged children ~~as defined by the~~

~~department who will be at least 4, but less than 5 years of age, as~~

~~of December 1 of the school year in which the programs are offered,~~

~~and~~ who meet the participant eligibility and prioritization

guidelines as defined by the ~~state board.~~department. Beginning in

2013-2014, for a child to be eligible to participate in a program

under this section, the child shall be at least 4, but less than 5,

years of age as of the date specified for determining a child's

eligibility to attend school under section 1147 of the revised

school code, MCL 380.1147.

~~(b) Provide preschool and parenting education programs similar~~

~~to those under former section 32b as in effect for 2001-2002.~~

~~Beginning in 2007-2008, funds spent for programs described in this~~

~~subdivision shall not exceed the amount spent under this~~

~~subdivision for the immediately preceding fiscal year. Funds spent~~

~~for programs described in this subdivision shall be used for~~

~~services to families with income below 300% of the federal poverty~~

~~level.~~

(2) Funds allocated under ~~this section~~ subsection (1) shall be

allocated to intermediate districts or consortia of intermediate

districts based on the formula in section 39. An intermediate

district or consortium of intermediate districts receiving funding

under this section shall act as the fiduciary for the great start

readiness programs. ~~For 2012-2013, the fiduciary intermediate~~

~~districts and consortia of intermediate districts shall allocate~~

~~the funding under this section as follows:~~

~~(a) An amount not to exceed $100,400,000.00 allocated to~~

~~intermediate districts and consortia of intermediate districts as~~

~~directed by the department based on the formula in section 39.~~ In

order to be eligible to receive funds allocated under this

~~subdivision~~ subsection from an intermediate district or consortium

of intermediate districts, a district, or a consortium of

districts, or a public or private for-profit or nonprofit legal

entity or agency shall comply with this section and section 39.

~~(b) An amount not to exceed $8,875,000.00 allocated in grants~~

~~to competitive great start readiness programs as directed by the~~

~~department based on the grant award process in section 32~~l~~. In order~~

~~to be eligible to receive funds allocated under this section from~~

~~an intermediate district or consortium of intermediate districts, a~~

~~competitive great start readiness program shall comply with this~~

~~section and section 32~~l.

(3) In addition to the allocation under subsection (1), from

the general fund money appropriated under section 11, there is

allocated an amount not to exceed $300,000.00 for ~~2012-2013~~ 2013-

2014 for a competitive grant to continue a longitudinal evaluation

of children who have participated in great start readiness

programs.

(4) To be eligible for funding under this section, a program

shall prepare children for success in school through comprehensive

part-day, school-day, or GSRP/head start blended programs that

contain all of the following program components, as determined by

the department:

(a) Participation in a collaborative recruitment and

enrollment process ~~. At a minimum, the process shall include all~~

~~other funded preschool programs that may serve children in the same~~

~~geographic area,~~ to assure that each child is enrolled in the

program most appropriate to his or her needs and to maximize the

use of federal, state, and local funds.

(b) An age-appropriate educational curriculum that is in

compliance with the early childhood standards of quality for

prekindergarten children adopted by the state board.

supported by federal, state, and local resources as applicable.

(d) Health and developmental screening services for all

program participants.

(e) Referral services for families of program participants to

community social service agencies, as appropriate.

(f) Active and continuous involvement of the parents or

guardians of the program participants.

(g) A plan to conduct and report annual great start readiness

program evaluations and continuous improvement plans using criteria

approved by the department.

(h) Participation in a multidistrict, multiagency, school

readiness advisory committee convened as a workgroup of the great

start collaborative that provides for the involvement of classroom

teachers, parents or guardians of program participants, and

community, volunteer, and social service agencies and

organizations, as appropriate. The advisory committee annually

shall review the program components listed in this subsection and

make recommendations for changes to the great start readiness

program for which it is an advisory committee.

(i) The ongoing articulation of the kindergarten and first

grade programs offered by the program provider.

(j) Participation in this state's great start to quality

process with a rating of at least 3 stars.

(5) An application for funding under this section shall

provide for the following, in a form and manner determined by the

department:

(a) Ensure compliance with all program components described in

subsection (4).

(b) Ensure that ~~more than 75%~~ at least 90% of the children

participating in an eligible great start readiness program for whom

the provider is receiving funds under this section are children who

live with families with a household income that is equal to or less

than ~~300%~~ 250% of the federal poverty level.

for this program, as follows:

(i) Teachers possessing proper training. For programs managed

directly by a district or intermediate district, a valid teaching

certificate and an early childhood (ZA or ZS) endorsement are

required. This provision does not apply to ~~a district, intermediate~~

~~district, or competitive program that subcontracts with~~ an eligible

child development program. In that situation, a teacher must have a

valid Michigan teaching certificate with an early childhood (ZA or

ZS) endorsement, a valid Michigan elementary teaching certificate

with a child development associate credential, or a bachelor's

degree in child development with specialization in preschool

teaching. However, if an applicant demonstrates to the department

that it is unable to fully comply with this subparagraph after

making reasonable efforts to comply, teachers who have significant

but incomplete training in early childhood education or child

development may be used if the applicant provides to the

department, and the department approves, a plan for each teacher to

come into compliance with the standards in this subparagraph. A

teacher's compliance plan must be completed within 2 years of the

date of employment. Progress toward completion of the compliance

plan shall consist of at least 2 courses per calendar year.

(ii) Paraprofessionals possessing proper training in early

childhood development, including an associate's degree in early

childhood education or child development or the equivalent, or a

child development associate (CDA) credential. However, if an

applicant demonstrates to the department that it is unable to fully

comply with this subparagraph after making reasonable efforts to

comply, the applicant may use paraprofessionals who have completed

at least 1 course that earns college credit in early childhood

education or child development if the applicant provides to the

department, and the department approves, a plan for each

paraprofessional to come into compliance with the standards in this

subparagraph. A paraprofessional's compliance plan must be

completed within 2 years of the date of employment. Progress toward

completion of the compliance plan shall consist of at least 2

courses or 60 clock hours of training per calendar year.

(d) Include a program budget that contains only those costs

that are not reimbursed or reimbursable by federal funding, that

are clearly and directly attributable to the great start readiness

program, and that would not be incurred if the program were not

being offered. Eligible costs include transportation costs. The

program budget shall indicate the extent to which these funds will

supplement other federal, state, local, or private funds. Funds

received under this section shall not be used to supplant any

federal funds received by the applicant to serve children eligible

for a federally funded ~~existing~~ preschool program that has the

capacity to serve those children.

(6) For a grant recipient that enrolls pupils in a school-day

program funded under this section, each child enrolled in the

school-day program shall be counted as 2 children served by the

program for purposes of determining the number of children to be

served and for determining the amount of the grant award. A grant

award shall not be increased solely on the basis of providing a

school-day program.

(7) For a grant recipient that enrolls pupils in a GSRP/head

start blended program, the grant recipient shall ensure that all

head start and GSRP policies and regulations are applied to the

blended slots, with adherence to the highest standard from either

program, to the extent allowable under federal law.

(8) ~~(7)~~ An intermediate district or consortium of intermediate

districts receiving a grant under this section may provide services

directly or may contract with 1 or more districts or public or

private for-profit or nonprofit ~~preschool center~~ providers that

meet all requirements of subsection (4) and retain for

administrative services an amount equal to not more than 5% 7% of

the grant amount. An In addition, an intermediate district , or

consortium of intermediate districts ~~, or competitive grant program~~

may expend not more than ~~10%~~ 2% of the total grant amount for

~~administration~~ recruiting and public awareness of the program.

~~(8) Any public or private for-profit or nonprofit legal entity~~

~~or agency may apply for a competitive grant under this section.~~

~~However, a district or intermediate district may not apply for a~~

~~competitive grant under this section unless the district,~~

~~intermediate district, or consortium of districts or intermediate~~

~~districts is acting as a local grantee for the federal head start~~

~~program operating under the head start act, 42 USC 9831 to 9852.~~

(9) Each grant recipient shall enroll children identified

under subsection (5)(b) according to how far the child's household

income is below 250% of the federal poverty level by ranking each

applicant child's household income from lowest to highest and

dividing the applicant children into quintiles based on how far the

child's household income is below 250% of the federal poverty

level, and then enrolling children in the quintile with the lowest

household income before enrolling children in the quintile with the

next lowest household income until slots are completely filled.

(10) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall conduct a

local process to contract with interested and eligible public and

private for-profit and nonprofit community-based providers that

meet all requirements of subsection (4) for at least 30% of its

total slot allocation. If the intermediate district or consortium

is not able to contract for at least 30% of its total slot

allocation, the grant recipient shall notify the department and, if

the department verifies that the intermediate district or

consortium attempted to contract for at least 30% of its total slot

allocation and was not able to do so, then the intermediate

district or consortium may retain and use all of its allocated

slots as provided under this section.

(11) ~~(9)~~ A recipient of funds under this section shall report

to the department in a form and manner prescribed by the department

the number of children participating in the program who meet the

income ~~or other eligibility criteria prescribed by the department~~

eligibility criteria under subsection (5)(b) 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 subsection (5)(b), a recipient

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 department

of human services in a manner consistent with maximizing the amount

of spending that may be claimed for temporary assistance for needy

families maintenance of effort purposes.

(12) ~~(10)~~ As used in this section:

(a) "GSRP/head start blended program" means a part-day program

funded under this section and a head start program, which are

combined for a school-day program.

(b) "Part-day program" means a program that operates at least

4 days per week, 30 weeks per year, for at least 3 hours of

teacher-child contact time per day but for fewer hours of teacher-

child contact time per day than a school-day program.

least the same length of day as a district's first grade program

for a minimum of 4 days per week, 30 weeks per year. A classroom

that offers a school-day program must enroll all children for the

school day to be considered a school-day program.

(13) ~~(11) A grant recipient~~ An intermediate district or

consortium of intermediate districts receiving funds under this

section ~~is encouraged to~~ shall establish a sliding scale of tuition

rates based upon ~~a child's family income for the purpose of~~

~~expanding eligible programs under this section.~~ household income

for children participating in an eligible great start readiness

program who live with families with a household income that is more

than 250% of the federal poverty level to be used by all of its

providers, as approved by the department. A grant recipient ~~may~~

shall charge tuition ~~for programs provided under this section~~

according to that sliding scale of tuition rates on a uniform basis

for any child who does not meet the ~~program~~ income eligibility

requirements under this section.

~~(12) The department shall develop a plan for a multiyear~~

~~phased-in approach to transfer funding for great start readiness~~

~~programs under this section into an early childhood block grant~~

~~program, along with funding for great start collaboratives under~~

~~section 32b and funding for great parents, great start programs~~

~~under section 32j. The early childhood block grant program will~~

~~allocate funds to intermediate districts and consortia of~~

~~intermediate districts to act as fiduciaries and provide~~

~~administration of regional early childhood programs in conjunction~~

~~with their regional great start collaborative to improve program~~

~~quality, evaluation, and efficiency for early childhood programs.~~

~~The department shall work with intermediate districts, districts,~~

~~great start collaboratives, and the early childhood investment~~

~~corporation to establish a revised funding formula, application~~

~~process, program criteria, and data reporting requirements.~~

(14) The great start readiness reserve fund is created as a

separate account within the state school aid fund established by

section 11 of article IX of the state constitution of 1963. Money

available in the great start readiness reserve fund may not be

expended for 2013-2014 unless transferred by the legislature not

later than January 31, 2014 to the allocation under subsection (1)

for great start readiness programs. Money in the great start

readiness reserve fund shall be expended only for purposes for

which state school aid fund money may be expended. The state

treasurer shall direct the investment of the great start readiness

reserve fund. The state treasurer shall credit to the great start

readiness reserve fund interest and earnings from fund investments.

Money in the great start readiness reserve fund at the close of a

fiscal year shall remain in the great start readiness reserve fund

and shall not lapse to the unreserved school aid fund balance or

the general fund.

Sec. 32p. (1) From the school aid fund appropriation in

section 11, there is allocated an amount not to exceed

$10,900,000.00 to intermediate districts for ~~2012-2013~~ 2013-2014

for the purpose of providing early childhood funding to

intermediate school districts in block grants, supporting the

activities under subsection (2), and providing early childhood

programs for children from birth through age 8. ~~The~~ Beginning in

2013-2014, the funding provided to each intermediate district under

this section shall be ~~equal to the sum of all funding allocated~~

~~under former sections 32b and 32j, as those sections were in effect~~

~~for 2011-2012.~~ determined by the distribution formula established

by the department's office of great start to provide equitable

funding statewide. In order to receive funding under this section,

each intermediate district shall provide an application to the

office of great start not later than ~~August 15, 2012,~~ September 15

of the immediately preceding fiscal year indicating the activities

planned to be provided. ~~and children served under the block grant.~~

(2) Each intermediate district or consortium of intermediate

districts that receives funding under this section shall convene a

local great start collaborative and a parent coalition. ~~to address~~

~~the availability of the following 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.~~ The

goal of ~~a local~~ each great start collaborative is and parent

coalition shall be to ensure the coordination and expansion of

local early childhood infrastructure and programs that allow every

child in the community ~~is ready for kindergarten.~~ to achieve the

following outcomes:

(a) Children born healthy.

(b) Children healthy, thriving, and developmentally on track

from birth to third grade.

time of school entry.

(d) Children prepared to succeed in fourth grade and beyond by

reading proficiently by the end of third grade.

(3) Each local great start collaborative and parent coalition

shall convene a workgroup to serve as a school readiness advisory

committee as required under section 32d and shall ensure ~~the~~

~~coordination and expansion of infrastructure or programming to~~

~~support high-quality early childhood and childcare programs. An~~

~~intermediate district or consortium of intermediate districts may~~

~~reconstitute its local great start collaborative if that~~

~~collaborative is found to be ineffective.~~that its local great start

system includes the following supports for children from birth

through age 8:

(a) Physical health.

(b) Social-emotional health.

(d) Parent education and child advocacy.

(e) Early education and care.

(4) ~~(3)~~ Not later than December 1 ~~, 2013,~~ of each year, each

intermediate district shall provide a report to the department

detailing the activities actually provided during ~~2012-2013~~ the

immediately preceding school year and the families and children

actually served. The department shall compile and summarize these

reports and submit its summary to the house and senate

appropriations subcommittees on school aid and to the house and

senate fiscal agencies. The block grants allocated under this

section implement legislative intent language for this purpose

enacted in 2011 PA 62.

(5) ~~(4)~~ An intermediate district or consortium of intermediate

districts that receives funding under this section may carry over

any unexpended funds received under this section ~~for a fiscal year~~

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.

Sec. 39. (1) An eligible applicant receiving funds under

section 32d shall submit a preapplication, in a form and manner

prescribed by the department, by a date specified by the department

in the immediately preceding state fiscal year. The preapplication

shall include a comprehensive needs assessment using aggregated

data from the applicant's entire service area and a community

collaboration plan that is endorsed by the local great start

collaborative and is part of the community's great start strategic

plan that includes, but is not limited to, great start readiness

program and head start providers, and shall identify all of the

following:

(a) The estimated total number of children in the community

who meet the criteria of section 32d and how that calculation was

made.

(b) The estimated number of children in the community who meet

the criteria of section 32d and are being served by other early

childhood development programs operating in the community, and how

that calculation was made.

who meet the criteria of section 32d including a verification of

physical facility and staff resources capacity.

(d) The estimated number of children who meet the criteria of

section 32d who will remain unserved after the applicant and

community early childhood programs have met their funded

enrollments. The applicant shall maintain a waiting list of

identified unserved eligible children who would be served when

openings are available.

(2) An applicant receiving funds under section 32d shall also

submit a final application for approval, in a form and manner

prescribed by the department, by a date specified by the

department, that details how the applicant complies with the

program components established by the department pursuant to

section 32d.

(3) The number of prekindergarten children construed to be in

need of special readiness assistance under section 32d shall be

calculated for each applicant in the following manner: 1/2 of the

percentage of the applicant's pupils in grades 1 to 5 in all

districts served by the applicant who are eligible for free lunch,

as determined using the district's pupil membership count as of the

pupil membership count day in the school year prior to the fiscal

year for which the calculation is made, under the Richard B.

Russell national school lunch act, 42 USC 1751 to 1769i, shall be

multiplied by the average kindergarten enrollment of the districts

served by the applicant on the pupil membership count day of the 2

immediately preceding fiscal years.

(4) The initial allocation for each fiscal year to each

eligible applicant under section 32d shall be determined by

multiplying the number of children determined by the formula under

subsection (3) or the number of children the applicant indicates it

will be able to serve under subsection (1)(c), whichever is less,

by ~~$3,400.00~~ $3,625.00 and shall be distributed among applicants in

decreasing order of concentration of eligible children as

determined by the formula under subsection (3). If the number of

children an applicant indicates it will be able to serve under

subsection (1)(c) includes children able to be served in a school-

day program, then the number able to be served in a school-day

program shall be doubled for the purposes of making this

calculation of the lesser of the number of children determined by

the formula under subsection (3) and the number of children the

applicant indicates it will be able to serve under subsection

(1)(c) and determining the amount of the initial allocation to the

applicant under section 32d. A district may contract with a head

start agency to serve children enrolled in head start with a

school-day program by blending head start funds with a part-day

great start readiness program allocation. All head start and great

start readiness program policies and regulations apply to the

blended program.

(5) If funds allocated for eligible applicants in or to the

great start readiness reserve fund under section 32d remain after

the initial allocation under subsection (4), the allocation under

this subsection shall be distributed to each eligible applicant

under section 32d in decreasing order of concentration of eligible

children as determined by the formula under subsection (3). The

allocation shall be determined by multiplying the number of

children each district within the applicant's service area served

in the immediately preceding fiscal year or the number of children

the applicant indicates it will be able to serve under subsection

(1)(c), whichever is less, minus the number of children for which

the applicant received funding in subsection (4) by

~~$3,400.00.~~$3,625.00.

(6) If funds allocated for eligible applicants in or to the

great start readiness reserve fund under section 32d remain after

the allocations under subsections (4) and (5), remaining funds

shall be distributed to each eligible applicant under section 32d

in decreasing order of concentration of eligible children as

determined by the formula under subsection (3). If the number of

children the applicant indicates it will be able to serve under

subsection (1)(c) exceeds the number of children for which funds

have been received under subsections (4) and (5), the allocation

under this subsection shall be determined by multiplying the number

of children the applicant indicates it will be able to serve under

subsection (1)(c) less the number of children for which funds have

been received under subsections (4) and (5) by ~~$3,400.00~~ $3,625.00

until the funds allocated for eligible applicants in section 32d

are distributed.

(7) An applicant that offers supplementary child care funded

by funds other than those received under section 32d and therefore

offers full-day programs as part of its early childhood development

program shall receive priority in the allocation of funds under

section 32d over other eligible applicants. As used in this

subsection, "full-day program" means a program that provides

supplementary child care that totals at least 10 hours of

programming per day.

(8) If, taking into account the total amount to be allocated

to the applicant as calculated under this section, an applicant

determines that it is able to include additional eligible children

in the great start readiness program without additional funds under

section 32d, the applicant may include additional eligible children

but shall not receive additional funding under section 32d for

those children.

Sec. 39a. (1) From the federal funds appropriated in section

11, there is allocated for ~~2012-2013~~ 2013-2014 to districts,

intermediate districts, and other eligible entities all available

federal funding, estimated at ~~$812,328,500.00,~~ $811,828,500.00, 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 $10,808,600.00 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 $250,000.00 for the purpose of~~

~~improving teaching and learning through a more effective use of~~

~~technology, funded from DED-OESE, educational technology state~~

~~grant funds.~~

(b) ~~(c)~~ An amount estimated at $111,111,900.00 for the purpose

of preparing, training, and recruiting high-quality teachers and

class size reduction, funded from DED-OESE, improving teacher

quality funds.

teach English to limited English proficient (LEP) children, funded

from DED-OESE, language acquisition state grant funds.

(d) ~~(e)~~ An amount estimated at $10,286,500.00 for the Michigan

charter school subgrant program, funded from DED-OESE, charter

school funds.

(e) ~~(f)~~ An amount estimated at $2,393,500.00 for rural and low

income schools, funded from DED-OESE, rural and low income school

funds.

(f) ~~(g)~~ An amount estimated at $591,500,000.00 to provide

supplemental programs to enable educationally disadvantaged

children to meet challenging academic standards, funded from DED-

OESE, title I, disadvantaged children funds.

~~(h) An amount estimated at $250,000.00 for the purpose of~~

~~providing unified family literacy programs, funded from DED-OESE,~~

~~title I, even start funds.~~

(g) ~~(i)~~ An amount estimated at $8,878,000.00 for the purpose

of identifying and serving migrant children, funded from DED-OESE,

title I, migrant education funds.

(h) ~~(j)~~ An amount estimated at $40,050,000.00 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.

(i) ~~(k)~~ An amount estimated at $24,600,000.00 to help support

local school improvement efforts, funded from DED-OESE, title I,

local school improvement grants.

(2) From the federal funds appropriated in section 11, there

is allocated for ~~2012-2013~~ 2013-2014 to districts, intermediate

districts, and other eligible entities all available federal

funding, estimated at ~~$33,514,100.00~~ $31,700,000.00 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 ~~$1,814,100.00~~ $2,600,000.00 to

provide services to homeless children and youth, funded from DED-

OVAE, homeless children and youth funds.

~~(c) An amount estimated at $2,600,000.00 for serve America~~

~~grants, funded from the corporation for national and community~~

~~service funds.~~

career and technical education services to pupils, funded from DED-

OVAE, basic grants to states.

(3) To the extent allowed under federal law, the funds

allocated under subsection ~~(1)(g), (h), and (k)~~ (1)(f) and (i) may

be used for 1 or more reading improvement programs that meet at

least 1 of the following:

(a) A research-based, validated, structured reading program

that aligns learning resources to state standards and includes

continuous assessment of pupils and individualized education plans

for pupils.

(b) A mentoring program that is a research-based, validated

program or a statewide 1-to-1 mentoring program and is designed to

enhance the independence and life quality of pupils who are

mentally impaired by providing opportunities for mentoring and

integrated employment.

validated educational service program focused on assessing and

building essential cognitive and perceptual learning abilities to

strengthen pupil concentration and learning.

(d) A structured mentoring-tutorial reading program for pupils

in preschool to grade 4 that is a research-based, validated program

that develops individualized educational plans based on each

pupil's age, assessed needs, reading level, interests, and learning

style.

(4) 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.

(5) For the purposes of applying for federal grants

appropriated under this article, the department shall allow an

intermediate district to submit a consortium application on behalf

of 2 or more districts with the agreement of those districts as

appropriate according to federal rules and guidelines.

(6) 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.

education.

(d) "HHS" means the United States department of health and

human services.

(e) "HHS-ACF" means the HHS administration for children and

families.

Sec. 41. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $1,200,000.00 for 2013-2014 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. Subject to

subsection (2), 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.

(2) A district or intermediate district shall not receive

funds under this section if it allows pupils to participate in the

program of instruction who are not residing in the United States

legally.

Sec. 51a. (1) From the appropriation in section 11, there is

allocated ~~for 2011-2012 an amount not to exceed $956,769,100.00 and~~

~~there is allocated~~ an amount not to exceed ~~$996,269,100.00~~

$952,569,100.00 for 2012-2013 and there is allocated an amount not

to exceed $980,446,100.00 for 2013-2014 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 ~~$363,400,000.00 for 2011-2012 and estimated at~~

$365,000,000.00 for 2012-2013, and estimated at $370,000,000.00 for

2013-2014, 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 other entities, 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, Public Law 108-446, including, but not

limited to, 34 CFR 300.206 and 300.208. 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 the amount necessary, estimated at ~~$247,500,000.00 for~~

~~2011-2012 and estimated at $257,400,000.00~~ $251,000,000.00 for

2012-2013, and estimated at $257,800,000.00 for 2013-2014, 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 (11), times

the foundation allowance under section 20 of the pupil's district

of residence, not to exceed the basic foundation allowance under

section 20 for the current fiscal year, or, for a special education

pupil in membership in a district that is a public school academy,

times an amount equal to the amount per membership pupil calculated

under section 20(6) or, for a pupil described in this subsection

who is counted in membership in the education achievement system,

times an amount equal to the amount per membership pupil under

section 20(7). 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 (11), 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 the basic foundation allowance under

section 20 for the current fiscal year.

(b) After the allocations under subdivision (a), districts and

intermediate districts for which the payments calculated 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 each fiscal year ~~for 2011-2012 and~~ for 2012-2013 and for

2013-2014 an amount not to exceed $1,000,000.00 to make payments to

districts and intermediate districts under this subsection. If the

amount allocated to a district or intermediate district for a

fiscal year under subsection (2)(b) is less than the sum of the

amounts allocated to the district or intermediate district for

1996-97 under sections 52 and 58, there is allocated to the

district or intermediate district for the fiscal year an amount

equal to that difference, adjusted by applying the same proration

factor that was used in the distribution of funds under section 52

in 1996-97 as adjusted to the district's or intermediate district's

necessary costs of special education used in calculations for the

fiscal year. This adjustment is to reflect reductions in special

education program operations or services between 1996-97 and

subsequent fiscal years. Adjustments for reductions in special

education program operations or services shall be made in a manner

determined by the department and shall include adjustments for

program or service shifts.

(4) If the department determines that the sum of the amounts

allocated for a fiscal year to a district or intermediate district

under subsection (2)(a) and (b) is not sufficient to fulfill the

specified percentages in subsection (2), then the shortfall shall

be paid to the district or intermediate district during the fiscal

year beginning on the October 1 following the determination and

payments under subsection (3) shall be adjusted as necessary. If

the department determines that the sum of the amounts allocated for

a fiscal year to a district or intermediate district under

subsection (2)(a) and (b) exceeds the sum of the amount necessary

to fulfill the specified percentages in subsection (2), then the

department shall deduct the amount of the excess from the

district's or intermediate district's payments under this article

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 each fiscal year ~~for 2011-2012 and~~

for 2012-2013 and for 2013-2014 to districts, intermediate

districts, or other eligible entities on a competitive grant basis

for programs, equipment, and services that the department

determines to be designed to benefit or improve special education

on a statewide scale.

(6) From the amount allocated in subsection (1), there is

allocated an amount not to exceed $2,200,000.00 each fiscal year

~~for 2011-2012 and~~ for 2012-2013 and for 2013-2014 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 sections 51a to 58, 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.

(b) Beginning with the 2004-2005 fiscal year, a district or

intermediate district that employed special education support

services staff to provide special education support services in

2003-2004 or in a subsequent fiscal year and that in a fiscal year

after 2003-2004 receives the same type of support services from

another district or intermediate district shall report the cost of

those support services for special education reimbursement purposes

under this article. This subdivision does not prohibit the transfer

of special education classroom teachers and special education

classroom aides if the pupils counted in membership associated with

those special education classroom teachers and special education

classroom aides are transferred and counted in membership in the

other district or intermediate district in conjunction with the

transfer of those teachers and aides.

fiscal year that the amounts allocated for that fiscal year under

subsections (2), (3), (6), and (11) and sections 53a, 54, and 56

will exceed expenditures for that fiscal year under subsections

(2), (3), (6), and (11) and sections 53a, 54, and 56, then for a

district or intermediate district whose reimbursement for that

fiscal year would otherwise be affected by subdivision (b),

subdivision (b) does not apply to the calculation of the

reimbursement for that district or intermediate district and

reimbursement for that district or intermediate district shall be

calculated in the same manner as it was for 2003-2004. If the

amount of the excess allocations under subsections (2), (3), (6),

and (11) and sections 53a, 54, and 56 is not sufficient to fully

fund the calculation of reimbursement to those districts and

intermediate districts under this subdivision, then the

calculations and resulting reimbursement under this subdivision

shall be prorated on an equal percentage basis. This reimbursement

shall not be made after 2014-2015.

(d) 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.

(e) Beginning with calculations for 2004-2005, if an

intermediate district purchases a special education pupil

transportation service from a constituent district that was

previously purchased from a private entity; if the purchase from

the constituent district is at a lower cost, adjusted for changes

in fuel costs; and if the cost shift from the intermediate district

to the constituent does not result in any net change in the revenue

the constituent district receives from payments under sections 22b

and 51c, then upon application by the intermediate district, the

department shall direct the intermediate district to continue to

report the cost associated with the specific identified special

education pupil transportation service and shall adjust the costs

reported by the constituent district to remove the cost associated

with that specific service.

(8) 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.

(9) 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.

(10) 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.

(11) From the funds allocated in subsection (1), there is

allocated the amount necessary, estimated at ~~$5,300,000.00 for~~

~~2011-2012 and estimated at $5,600,000.00~~ $4,300,000.00 for 2012-

2013, and estimated at $4,300,000.00 for 2013-2014, 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 foundation

allowance under section 20 of the pupil's district of residence,

not to exceed the basic foundation allowance under section 20 for

the current fiscal year, or, for a pupil described in this

subsection who is counted in membership in a district that is a

public school academy, times an amount equal to the amount per

membership pupil under section 20(6) or, for a pupil described in

this subsection who is counted in membership in the education

achievement system, times an amount equal to the amount per

membership pupil under section 20(7). 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 the basic foundation allowance under section 20 for the

current fiscal year. 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.

by an intermediate district and provided educational services by

the department of community health.

(12) If it is determined that funds allocated under subsection

(2) or (11) or under section 51c will not be expended, funds up to

the amount necessary and available may be used to supplement the

allocations under subsection (2) or (11) or under section 51c in

order to fully fund those allocations. After payments under

subsections (2) and (11) 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).

(d) 100% of the payment required under subsection (3).

(e) 100% of the payments under section 56.

(13) The allocations under subsections (2), (3), and (11)

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.

(14) If a public school academy enrolls pursuant to this

section a pupil who resides outside of the intermediate district in

which the public school academy is located and who is eligible for

special education programs and services according to statute or

rule, or who is a child with disabilities, as defined under the

individuals with disabilities education act, Public Law 108-446,

the provision of special education programs and services and the

payment of the added costs of special education programs and

services for the pupil are the responsibility of the district and

intermediate district in which the pupil resides unless the

enrolling district or intermediate district has a written agreement

with the district or intermediate district in which the pupil

resides or the public school academy for the purpose of providing

the pupil with a free appropriate public education and the written

agreement includes at least an agreement on the responsibility for

the payment of the added costs of special education programs and

services for the pupil.

Sec. 51b. A district or intermediate district shall not

receive funds under ~~this article~~ section 51a unless the district or

intermediate district complies with rules promulgated under article

3 of the revised school code, being sections 380.1701 to 380.1766

of the Michigan Compiled Laws.

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 each fiscal year ~~for 2011-2012 and~~ for 2012-2013 and

for 2013-2014 the amount necessary, estimated at ~~$648,700,000.00~~

~~for 2011-2012 and estimated at $678,000,000.00~~ $642,000,000.00 for

2012-2013, and estimated at $662,200,000.00 for 2013-2014, 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 ~~each fiscal year 2011-2012 and for 2012-~~

~~2013~~ 2013-2014 all available federal funding, estimated at

$74,000,000.00, ~~each fiscal year,~~ 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 ~~each fiscal year for 2011-2012 and~~

~~for 2012-2013:~~for 2013-2014:

(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.

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. For intermediate districts,

reimbursement for pupils described in subsection (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 the basic foundation allowance under

section 20 for the current fiscal year.

(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.

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 $13,500,000.00 of the allocation for ~~2011-~~

~~2012 and for 2012-2013~~ 2013-2014 in section 51a(1) shall be

allocated ~~for each fiscal year~~ under this section.

Sec. 54. 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 ~~2012-2013~~ 2013-2014 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.

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 2012-2013~~

$37,758,100.00 for 2013-2014 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 ~~2010-2011~~ 2012-

2013 shall be made in ~~2011-2012~~ 2013-2014 at an amount per ~~2010-~~

~~2011~~ 2012-2013 membership pupil computed by subtracting from

~~$174,700.00~~ $169,900.00 the ~~2010-2011~~ 2012-2013 taxable value

behind each membership pupil and multiplying the resulting

difference by the ~~2010-2011~~-2012-2013 millage levied.

~~(4) For 2012-2013 only, reimbursement to each intermediate~~

~~district shall be equal to its reimbursement under this section for~~

~~2011-2012.~~

(4) The amount paid to a single intermediate district under

this section shall not exceed 62.9% of the total amount allocated

under subsection (2).

(5) The amount paid to a single intermediate district under

this section shall not be less than 75% of the amount allocated to

the intermediate district under this section for the immediately

preceding fiscal year.

Sec. 61a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $26,611,300.00 for ~~2012-2013~~

2013-2014 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 career

and technical 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 career and

technical education program area. The allocation of added cost

funds shall be based on the type of career and technical education

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 career and 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

career and technical education administration, shared time career

and technical education administration, and career education

planning district career and technical education 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) In addition to the funds allocated in subsection (1), from

the appropriation in section 11, there is allocated an amount not

to exceed $1,000,000.00 for 2013-2014 to districts or intermediate

districts for area career and technical education centers for the

purpose of integrating the Michigan merit curriculum content

standards under sections 1278a and 1278b of the revised school

code, MCL 380.1278a and 380.1278b, into state-approved career and

technical education instructional programs for the purpose of

awarding academic credit. The department shall determine the

allocation to each career and technical education center in a

manner that provides for maximum integration of Michigan merit

curriculum content standards statewide.

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.

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 2012-2013~~ $9,190,000.00

for 2013-2014 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 ~~2010-2011~~ 2012-

2013 shall be made in ~~2011-2012~~ 2013-2014 at an amount per ~~2010-~~

~~2011~~ 2012-2013 membership pupil computed by subtracting from

~~$190,400.00~~ $186,500.00 the ~~2010-2011~~ 2012-2013 taxable value

behind each membership pupil and multiplying the resulting

difference by the ~~2010-2011~~ 2012-2013 millage levied.

~~(4) For 2012-2013 only, reimbursements to each intermediate~~

~~district shall be equal to its reimbursement under this section for~~

~~2011-2012.~~

(4) The amount paid to a single intermediate district under

this section shall not exceed 38.4% of the total amount allocated

under subsection (2).

(5) The amount paid to a single intermediate district under

this section shall not be less than 75% of the amount allocated to

the intermediate district under this section for the immediately

preceding fiscal year.

Sec. 64a. From the appropriation in section 11, there is

allocated an amount not to exceed $1,000,000.00 for 2013-2014 to

districts or intermediate districts for the purpose of establishing

partnerships between high schools, early or middle colleges, and

public colleges and universities that develop statewide transfer or

articulation agreements to ensure postsecondary credit earned

during high school is included in transcripts and is transferable

to postsecondary institutions. The department shall distribute

funds under this section to districts or intermediate districts in

a manner and form determined by the department.

Sec. 74. (1) From the amount appropriated in section 11, there

is allocated an amount not to exceed ~~$3,259,900.00 for 2012-2013~~

$3,299,000.00 for 2013-2014 for the purposes of this section.

(2) From the allocation in subsection (1), there is allocated

for each fiscal year the amount necessary for payments to state

supported colleges or universities and intermediate districts

providing school bus driver safety instruction pursuant to section

51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. 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 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 article for nonspecial education

auxiliary services transportation.

(4) From the funds allocated in subsection (1), there is

allocated an amount not to exceed ~~$1,634,900.00 for 2012-2013~~

$1,674,000.00 for 2013-2014 for reimbursement to districts and

intermediate districts for costs associated with the inspection of

school buses and pupil transportation vehicles by the department of

state police as required under section 715a of the Michigan vehicle

code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil

transportation act, 1990 PA 187, MCL 257.1839. The department of

state police shall prepare a statement of costs attributable to

each district for which bus inspections are provided and submit it

to the department and to an intermediate district serving as

fiduciary in a time and manner determined jointly by the department

and the department of state police. Upon review and approval of the

statement of cost, the department shall forward to the designated

intermediate district serving as fiduciary the amount of the

reimbursement on behalf of each district and intermediate district

for costs detailed on the statement within 45 days after receipt of

the statement. The designated intermediate district shall make

payment in the amount specified on the statement to the department

of state police within 45 days after receipt of the statement. The

total reimbursement of costs under this subsection shall not exceed

the amount allocated under this subsection. Notwithstanding section

17b, payments to eligible entities under this subsection shall be

paid on a schedule prescribed by the department.

Sec. 81. (1) Except as otherwise provided in this section,

from the appropriation in section 11, there is allocated each

fiscal year for 2012-2013 and for 2013-2014 to the intermediate

districts the sum necessary, but not to exceed ~~$64,108,000.00,~~

$64,115,100.00 each fiscal year, to provide state aid to

intermediate districts under this section.

(2) From the allocation in subsection (1), there is allocated

an amount not to exceed $62,108,000.00 for allocations to each

intermediate district for 2012-2013 in an amount equal to 100% of

the amount allocated to the intermediate district under this

subsection for 2011-2012. From the allocation in subsection (1),

there is allocated an amount not to exceed $62,108,000.00 for

allocations to each intermediate district for 2013-2014 in an

amount equal to 100.0% of the amount allocated to the intermediate

district under this subsection for 2012-2013. Funding provided

under this section shall be used to comply with requirements of

this article and the revised school code that are applicable to

intermediate districts, and for which funding is not provided

elsewhere in this article, and to provide technical assistance to

districts as authorized by the intermediate school board.

(3) Intermediate districts receiving funds under subsection

(2) shall collaborate with the department to develop expanded

professional development opportunities for teachers to update and

expand their knowledge and skills needed to support the Michigan

merit curriculum.

(4) 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. From the allocation in subsection (1), there is

allocated $7,000.00 for purposes of this subsection for 2012-2013,

for 2013-2014, and for 2014-2015, after which the payment under

this subsection will cease.

~~(5) 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.~~

(5) ~~(6)~~ In order to receive funding under subsection (2), an

intermediate district shall do all of the following:

(a) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

pupil accounting and auditing procedures, rules, and regulations.

(b) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

rules, regulations, and district reporting procedures for the

individual-level student data that serves as the basis for the

calculation of the district and high school graduation and dropout

rates.

code, MCL 380.1278a and 380.1278b.

(d) Furnish data and other information required by state and

federal law to the center and the department in the form and manner

specified by the center or the department, as applicable.

(e) Comply with section 1230g of the revised school code, MCL

380.1230g.

(f) Comply with section 761 of the revised school code, MCL

380.761.

(6) ~~(7)~~ From the allocation in subsection (1), there is

allocated an amount not to exceed $2,000,000.00 for 2012-2013 for

an incentive payment to each intermediate district that meets best

practices as determined by the department under this subsection.

The amount of the incentive payment is an amount equal to 3.2% of

the amount allocated to the intermediate district under subsection

(2). An intermediate district is eligible for an incentive payment

under this subsection if the intermediate district satisfies at

least 4 of the following requirements not later than June 1, 2013:

(a) The intermediate district enters into an agreement with

the department to do all of the following:

(i) Develop a service consolidation plan in 2012-2013 to reduce

operating costs that is in compliance with guidelines that were

developed by the department for former section 11d as that section

was in effect for 2010-2011.

(ii) Implement the service consolidation plan in 2013-2014 and

report to the department not later than February 1, 2014 on the

intermediate district's progress in implementing the service

consolidation plan.

(b) The intermediate district has obtained competitive bids on

the provision of 1 or more noninstructional services for the

intermediate district or its constituent districts with a value of

at least $50,000.00.

accordance with department policy on behalf of all constituent

districts within the intermediate district that integrates

technology into the classroom and prepares teachers to use digital

technologies as part of the instructional program of each of its

constituent districts.

(d) The intermediate district provides to parents and

community members a dashboard or report card demonstrating the

intermediate district's efforts to manage its finances responsibly.

The dashboard or report card shall include at least all of the

following for the 3 most recent school years for which the data are

available:

(i) A list of services offered by the intermediate district

that are shared by other local or intermediate districts and a list

of the districts or intermediate districts that participate.

(ii) The total cost savings to local or other intermediate

districts that share services with the intermediate district.

(iii) The number and percentage of teachers in the intermediate

district service area that are trained to integrate technology into

the classroom.

(iv) The total funds received from levying special education

and vocational education millages, and the number of special

education and vocational education pupils served with those

dollars.

(v) The number and percentage of individualized education

programs developed for special education pupils that contain

academic goals.

(e) The intermediate district works in a consortium with 1 or

more other intermediate districts to develop information management

system requirements and bid specifications that can be used as

statewide models. At a minimum, these specifications shall ~~address~~

include pupil management systems for both general and special

education, learning management tools, and business services.

(7) From the allocation in subsection (1), there is allocated

an amount not to exceed $2,000,000.00 for 2013-2014 for an

incentive payment to each intermediate district that meets best

practices as determined by the department under this subsection.

The amount of the incentive payment is an amount equal to 3.2% of

the amount allocated to the intermediate district under subsection

(2). An intermediate district is eligible for an incentive payment

under this subsection if the intermediate district satisfies at

least 5 of the following requirements not later than June 1, 2014:

(a) The intermediate district enters into an agreement with

the department to comply with all of the following:

(i) If the intermediate district developed a service

consolidation plan in 2012-2013, implement the service

consolidation plan in 2013-2014 and report to the department not

later than February 1, 2014 on the intermediate district's progress

in implementing the service consolidation plan.

(ii) If the intermediate district did not develop a service

consolidation plan in 2012-2013, develop a service consolidation

plan in 2013-2014 to reduce operating costs that is in compliance

with guidelines that were developed by the department for former

section 11d as that section was in effect for 2010-2011.

(iii) If the intermediate district developed a service

consolidation plan in 2013-2014, implement the service

consolidation plan in 2014-2015 and report to the department not

later than February 1, 2015 on the intermediate district's progress

in implementing the service consolidation plan.

(iv) Make the intermediate district's service consolidation

plan publicly available on the intermediate district's website.

(b) The intermediate district has obtained competitive bids on

the provision of 1 or more noninstructional services for the

intermediate district or its constituent districts with a value of

at least $50,000.00. The unfunded accrued liability costs for

retirement and other benefits shall be excluded from the

intermediate district's current costs for the purpose of comparing

competitive bids to the current costs of providing services.

accordance with department policy on behalf of all constituent

districts within the intermediate district that integrates

technology into the classroom and prepares teachers to use digital

technologies as part of the instructional program of each of its

constituent districts. An intermediate district that developed a

technology plan in 2012-2013 shall begin implementing that

technology plan in 2013-2014.

(d) The intermediate district provides to parents and

community members a dashboard or report card demonstrating the

intermediate district's efforts to manage its finances responsibly.

The dashboard or report card shall include revenue and expenditure

projections for the intermediate district for 2013-2014 and 2014-

2015, a listing of all debt service obligations, detailed by

project, including anticipated 2013-2014 payment for each project,

a listing of total outstanding debt, and at least all of the

following for the 3 most recent school years for which the data are

available:

(i) A list of services offered by the intermediate district

that are shared by other local or intermediate districts and a list

of the districts or intermediate districts that participate.

(ii) The total cost savings to local or other intermediate

districts that share services with the intermediate district.

(iii) The number and percentage of teachers in the intermediate

district service area that are trained to integrate technology into

the classroom.

(iv) The total funds received from levying special education

and vocational education millages, and the number of special

education and vocational education pupils served with those

dollars.

(v) The number and percentage of individualized education

programs developed for special education pupils that contain

academic goals.

(e) The intermediate district works in a consortium with 1 or

more other intermediate districts and the center to develop local

information management system requirements and bid specifications

that result in a recommended model information system that supports

interoperability to ensure linkage and connectivity in a manner

that facilitates the efficient exchange of data among districts,

intermediate districts, and the center. At a minimum, these

specifications shall include pupil management systems for both

general and special education, learning management tools, and

business services.

(f) If an intermediate district provides medical, pharmacy,

dental, vision, disability, long-term care, or any other type of

benefit that would constitute a health care services benefit, to

employees and their dependents, the intermediate district is the

policyholder for each of its insurance policies that covers 1 or

more of these benefits. An intermediate district that does not

directly employ its staff or an intermediate district with a

voluntary employee beneficiary association that pays no more than

the maximum per employee contribution amount and that contributes

no more than the maximum employer contribution percentage of total

annual costs for the medical benefit plans as described in sections

3 and 4 of the publicly funded health insurance contribution act,

2011 PA 152, MCL 15.563 and 15.564, is considered to have satisfied

this requirement.

Sec. 94a. (1) There is created within the state budget office

in the department of technology, 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 districts, intermediate districts, and

postsecondary institutions.

(b) Create, maintain, and enhance this state's P-20

longitudinal data system and ensure that it meets the requirements

of subsection (4).

order to reduce the administrative burden on reporting entities,

including, but not limited to, electronic transcript services.

(d) Create, maintain, and enhance this state's web-based

educational portal to provide information to school leaders,

teachers, researchers, and the public in compliance with all

federal and state privacy laws. Data shall include, but are not

limited to, all of the following:

(i) Data sets that link teachers to student information,

allowing districts to assess individual teacher impact on student

performance and consider student growth factors in teacher and

principal evaluation systems.

(ii) Data access or, if practical, data sets, provided for

regional data warehouses that, in combination with local data, can

improve teaching and learning in the classroom.

(iii) Research-ready data sets for researchers to perform

research that advances this state's educational performance.

(e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

(f) Provide public 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) Other functions as assigned by the state budget director.

(2) Each state department, officer, or agency that collects

information from districts, intermediate districts, or

postsecondary institutions as required under state or federal law

shall make arrangements with the center to ensure that the state

department, officer, or agency is in compliance with subsection

(1). 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; the school bond

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to

388.1939; or section 1351a of the revised school code, MCL

380.1351a.

(3) The center may enter into any interlocal agreements

necessary to fulfill its functions.

(4) The center shall ensure that the P-20 longitudinal data

system required under subsection (1)(b) meets all of the following:

(a) Includes data at the individual student level from

preschool through postsecondary education and into the workforce.

(b) Supports interoperability by using standard data

structures, data formats, and data definitions to ensure linkage

and connectivity in a manner that facilitates the exchange of data

among agencies and institutions within the state and between

states.

records so that an individual student may be matched with those

teachers providing instruction to that student.

(d) Enables the matching of individual teachers with

information about their certification and the institutions that

prepared and recommended those teachers for state certification.

(e) Enables data to be easily generated for continuous

improvement and decision-making, including timely reporting to

parents, teachers, and school leaders on student achievement.

(f) Ensures the reasonable quality, validity, and reliability

of data contained in the system.

(g) Provides this state with the ability to meet federal and

state reporting requirements.

(h) For data elements related to preschool through grade 12

and postsecondary, meets all of the following:

(i) Contains a unique statewide student identifier that does

not permit a student to be individually identified by users of the

system, except as allowed by federal and state law.

(ii) Contains student-level enrollment, demographic, and

program participation information.

(iii) Contains student-level information about the points at

which students exit, transfer in, transfer out, drop out, or

complete education programs.

(iv) Has the capacity to communicate with higher education data

systems.

(i) For data elements related to preschool through grade 12

only, meets all of the following:

(i) Contains yearly test records of individual students for

assessments approved by DED-OESE for accountability purposes under

section 1111(b) of the elementary and secondary education act of

1965, 20 USC 6311, including information on individual students not

tested, by grade and subject.

(ii) Contains student-level transcript information, including

information on courses completed and grades earned.

(iii) Contains student-level college readiness test scores.

(j) For data elements related to postsecondary education only:

(i) Contains data that provide information regarding the extent

to which individual students transition successfully from secondary

school to postsecondary education, including, but not limited to,

all of the following:

(A) Enrollment in remedial coursework.

(B) Completion of 1 year's worth of college credit applicable

to a degree within 2 years of enrollment.

(ii) Contains data that provide other information determined

necessary to address alignment and adequate preparation for success

in postsecondary education.

(5) From the general fund appropriation in section 11, there

is allocated an amount not to exceed ~~$9,218,400.00 for 2012-2013~~

$9,535,100.00 for 2013-2014 to the department of technology,

management, and budget to support the operations of the center. In

addition, from the federal funds appropriated in section 11 there

is allocated for ~~2012-2013~~ 2013-2014 the amount necessary,

estimated at $193,500.00, ~~for 2012-2013,~~ to support the operations

of the center and to establish a P-20 longitudinal data system as

provided under this section in compliance with the assurance

provided to the United States department of education in order to

receive state fiscal stabilization funds. The center shall

cooperate with the department 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.

(6) From the funds allocated in subsection (5), there is

allocated for ~~2012-2013~~ 2013-2014 an amount not to exceed

$850,000.00 for competitive grants to support collaborative efforts

on the P-20 longitudinal data system. All of the following apply to

grants awarded under this subsection:

(a) The center shall award competitive grants to eligible

intermediate districts or a consortium of intermediate districts

based on criteria established by the center.

(b) Activities funded under the grant shall support the P-20

longitudinal data system portal and may include portal hosting,

hardware and software acquisition, maintenance, enhancements, user

support and related materials, and professional learning tools and

activities aimed at improving the utility of the P-20 longitudinal

data system.

for the immediately preceding fiscal year shall receive priority

for funding under this section. However, after 3 fiscal years of

continuous funding, an applicant is required to compete openly with

new applicants.

(7) From the funds allocated in subsection (5), there is

allocated for 2013-2014 an amount not to exceed $100,000.00 for the

center to develop the pupil transfer application as required under

section 25e.

(8) ~~(7)~~ 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 and are appropriated

for the purposes for which the funds were originally allocated.

(9) It is the intent of the legislature that, beginning in

2014-2015, a district shall report to the center by June 30, in a

manner prescribed by the center, the number of pupils in the

district who have had 10 or more unexcused absences each school

year. For pupils in grades 9 to 12, the report shall include both

the total number of unexcused absences in any single course and the

total number of unexcused absences in all courses. Each district

shall define unexcused absence. It is the intent of the legislature

that a district that reports false information under this

subsection shall forfeit an amount equal to 5% of its total state

aid allocation under this act.

(10) ~~(8)~~ The center may bill departments as necessary in order

to fulfill reporting requirements of state and federal law. The

center may also enter into agreements to supply custom data,

analysis, and reporting to other principal executive departments,

state agencies, local units of government, and other individuals

and organizations. The center may receive and expend funds in

addition to those authorized in subsection (5) to cover the costs

associated with salaries, benefits, supplies, materials, and

equipment necessary to provide such data, analysis, and reporting

services.

(11) ~~(9)~~ 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. 95. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $1,750,000.00 for 2012-2013

and there is allocated an amount not to exceed $500,000.00 for

2013-2014 for grants to districts to support professional

development for principals and assistant principals in a

department-approved training program for implementing educator

evaluations as required under section 1249 of the revised school

code, MCL 380.1249.

(2) The funds allocated under this section are a work project

appropriation, and any unexpended funds for 2012-2013 are carried

forward into 2013-2014. The purpose of the work project is to

continue to implement the projects described under subsection (1).

The estimated completion date of the work project is September 30,

2014.

(3) ~~(2)~~ For 2012-2013, all districts may apply for funding

under this section by a date determined by the department.

Beginning in 2013-2014, in a form and manner determined by the

department, priority will be given to districts that have new

building administrators who have not previously received training

in programs funded under this section.

(4) ~~(3)~~ The department shall approve training programs for the

purpose of this section. The department shall approve all training

programs recommended by the ~~governor's~~ council on educator

effectiveness and may approve other training programs that meet

department criteria. At a minimum, these other programs shall meet

all of the following criteria:

(a) Contain instructional content on methods of evaluating

teachers consistently across multiple grades and subjects.

(b) Include training on evaluation observation that is focused

on reliability and bias awareness and that instills skills needed

for consistent, evidence-based observations.

applying rubrics and consistent scoring.

(d) Align with recommendations of the ~~governor's~~ council on

educator effectiveness.

(e) Provide ongoing support to maintain inter-rater

reliability. As used in this subdivision, "inter-rater reliability"

means a consistency of measurement from different evaluators

independently applying the same evaluation criteria to the same

classroom observation.

(5) ~~(4)~~ The department shall award grants to eligible

districts in an amount determined by the department, but not to

exceed $350.00 per participant.

(6) ~~(5)~~ A district receiving funds under this section shall

use the funds only for department-approved training programs under

this section.

Sec. 98. (1) From the general fund money appropriated in

section 11, there is allocated an amount not to exceed

~~$4,387,500.00 for 2012-2013~~ $9,387,500.00 for 2013-2014 for the

purposes described in this section.

(2) The Michigan virtual university shall ~~establish the center~~

~~for online learning research and innovation. The center for online~~

~~learning research and innovation~~ operate the Michigan virtual

learning research institute. The Michigan virtual learning research

institute shall do all of the following:

(a) Support and accelerate innovation in education through the

following activities:

(i) Test, evaluate, and recommend as appropriate new

technology-based instructional tools and resources.

(ii) Research, design, and recommend ~~online and blended~~ digital

education delivery models for use by pupils and teachers that

include age-appropriate multimedia instructional content.

(iii) Research, design, and recommend competency-based online

assessments.

(iv) Research, develop, and recommend annually to the

department criteria by which cyber schools and online course

providers should be monitored and evaluated to ensure a quality

education for their pupils.

(v) Based on pupil completion and performance data reported to

the department or the center for educational performance and

information from cyber schools and other online course providers

operating in this state, analyze the effectiveness of online

learning delivery models in preparing pupils to be college- and

career-ready and publish a report that highlights enrollment

totals, completion rates, and the overall impact on pupils. The

report shall be submitted to the house and senate appropriations

subcommittees on state school aid, the state budget director, the

house and senate fiscal agencies, and the department not later than

December ~~31, 2013.~~1, 2014.

(vi) ~~Design professional development services for~~ Before August

31, 2014, provide an extensive professional development program to

at least 500 educational personnel, including teachers, school

administrators, and school board members, ~~to learn how to~~

~~effectively integrate new technologies and online learning into~~

~~curricula and instruction.~~that focuses on the effective integration

of digital learning into curricula and instruction. Not later than

December 1, 2014, the Michigan virtual learning research institute

shall submit a report to the house and senate appropriations

subcommittees on state school aid, the state budget director, the

house and senate fiscal agencies, and the department on the number

and percentage of teachers, school administrators, and school board

members who have received professional development services from

the Michigan virtual university. The report shall also identify

barriers and other opportunities to encourage the adoption of

digital learning in the public education system.

(vii) Identify and share best practices for planning,

implementing, and evaluating online and blended education delivery

models with intermediate districts, districts, and public school

academies to accelerate the adoption of innovative education

delivery models statewide.

(b) Provide leadership for this state's system of ~~online and~~

~~blended~~ digital learning education by doing the following

activities:

(i) Develop and report policy recommendations to the governor

and the legislature that accelerate the expansion of effective

online learning in this state's schools.

(ii) Provide a clearinghouse for research reports, academic

studies, evaluations, and other information related to online

learning.

(iii) Promote and distribute the most current instructional

design standards and guidelines for online teaching.

(iv) In collaboration with the department and interested

colleges and universities in this state, recommend to the

superintendent guidelines and standards for a new teacher

endorsement credential related to effective ~~online and blended~~

digital learning instruction.

(v) Pursue public/private partnerships that include districts

to study and implement competency-based technology-rich online

learning models.

(vi) Convene focus groups and conduct annual surveys of

teachers, administrators, pupils, parents, and others to identify

barriers and opportunities related to online learning.

(vii) Produce an annual consumer awareness report for schools

and parents about effective online education providers and

education delivery models, performance data, cost structures, and

research trends.

~~(3) Subject to the provisions of this subsection, from the~~

~~funds allocated in subsection (1), there is allocated an amount not~~

~~to exceed $500,000.00 for 2012-2013 to the Michigan virtual school~~

~~operated by the Michigan virtual university to conduct and report~~

~~on a year-long pilot study of a new performance-based funding model~~

~~for the Michigan virtual school. The purpose of the pilot study is~~

~~to determine the merits of a payment system for online~~

~~instructional programs based on pupil performance rather than~~

~~solely on enrollment and attendance factors. All of the following~~

~~apply to the pilot study and the funding under this subsection:~~

~~(a) The Michigan virtual school shall randomly select a~~

~~minimum of 1,000 of its qualifying online course enrollments for~~

~~inclusion in the pilot study. The Michigan virtual school shall~~

~~issue a refund or credit to districts for all online course~~

~~enrollments included in the pilot study.~~

~~(b) The Michigan virtual school shall report to the department~~

~~the number of online course enrollments in the pilot study that~~

~~meet the following conditions:~~

(i~~) The pupil successfully completed the online course as~~

~~measured by assessments aligned to the course content and earned a~~

~~grade or credit from the district or public school academy in which~~

~~the pupil is enrolled.~~

(ii~~) The online course is taught by a Michigan certificated~~

~~teacher certified in the subject area in which the course is being~~

~~offered.~~

(~~iii~~~~) Where applicable, the online course is aligned with~~

~~Michigan curriculum standards.~~

(iv~~) The online course curriculum contains periodic online~~

~~pupil assessments.~~

(v~~) Pupils have access to the appropriate technology hardware~~

~~and software necessary to take the online course.~~

(vi~~) Parents or guardians and pupils have secure online access~~

~~to review periodic pupil progress and performance data.~~

(~~vii~~~~) The online instructor is available to interact with~~

~~parents or guardians and pupils using electronic communications.~~

~~(c) The department shall pay to Michigan virtual school from~~

~~the funding under this subsection an amount not to exceed the~~

~~equivalent of 1/12 of the state's minimum per pupil foundation~~

~~allowance for each online course enrollment included in the pilot~~

~~study that meets the conditions of subdivision (b) in the next~~

~~school aid payment after the report is received by the department.~~

(viii) Research and establish an Internet-based platform that

educators can use to create student-centric learning tools and

resources and facilitate a user network that assists educators in

using the platform. As part of this initiative, the Michigan

virtual university shall work collaboratively with districts and

intermediate districts to establish a plan to make available online

resources that align to Michigan's K-12 curriculum standards for

use by students, educators, and parents.

(ix) Create and maintain a public statewide catalog of online

learning courses being offered by all public schools in this state.

The Michigan virtual learning research institute shall identify and

develop a list of nationally recognized best practices for online

learning and use this list to provide reviews of online course

vendors, courses, and instructional practices. The Michigan virtual

learning research institute shall also provide a mechanism for

intermediate districts to use the identified best practices to

review content offered by constituent districts. The Michigan

virtual learning research institute shall review the online course

offerings of the Michigan virtual university, and make the results

from these reviews available to the public as part of the statewide

catalog. The Michigan virtual learning research institute shall

ensure that the statewide catalog is made available to the public

on the Michigan virtual university website and linked to each

district's website as provided for in section 21f. Beginning in

2014-2015, the statewide catalog shall also contain all of the

following:

(A) The number of pupils enrolled in each online course in the

2012-2013 school year.

(B) The number of pupils who successfully completed each

online course in the 2012-2013 school year.

(3) ~~(4)~~ In order for the Michigan virtual university to

receive any funds allocated under this section, the Michigan

virtual school must maintain its accreditation status from

recognized national and international accrediting entities.

(4) ~~(5) The~~ If the course offerings are included in the

statewide catalog of online courses under subsection (2)(b)(ix), the

Michigan virtual school operated by the Michigan virtual university

may offer online course offerings, ~~in addition to those offered in~~

~~the pilot study described in subsection (3),~~ including, but 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.

(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 for teachers, school

administrators, other school employees, and school board members.

(5) ~~(6)~~ If a home-schooled or nonpublic school student is a

resident of a district that subscribes to services provided by the

Michigan virtual school, the student may use the services provided

by the Michigan virtual school to the district without charge to

the student beyond what is charged to a district pupil using the

same services.

(6) ~~(7)~~ Not later than December 1 of each fiscal year, the

Michigan virtual university shall provide a report to the house and

senate appropriations subcommittees on state school aid, the state

budget director, the house and senate fiscal agencies, and the

department that includes at least all of the following information

related to the Michigan virtual school for the preceding state

fiscal year:

(a) A list of the districts served by the Michigan virtual

school.

(b) A list of online course titles available to districts.

information on registrations and completions by course.

(d) The overall course completion rate percentage.

~~(e) An analysis of the results of the pilot study described in~~

~~subsection (3), including, but not limited to:~~

(i~~) A list of the districts that were selected to be part of~~

~~the pilot study.~~

(ii~~) The number of successful online course completions.~~

(~~iii~~~~) A list of the courses offered in the pilot study and the~~

~~completion rates for each course.~~

(iv~~) Identification of opportunities and barriers that must be~~

~~addressed in order to apply online learning performance funding~~

~~based on successful completions rather than enrollment and~~

~~attendance for online learning offerings statewide.~~

(7) ~~(8)~~ The governor may appoint an advisory group for the

~~center for online learning research and innovation~~ Michigan virtual

learning research institute established under subsection (2). The

members of the advisory group shall serve at the pleasure of the

governor and shall serve without compensation. The purpose of the

advisory group is to make recommendations to the governor, the

legislature, and the president and board of the Michigan virtual

university that will accelerate innovation in this state's

education system in a manner that will prepare elementary and

secondary students to be career and college ready and that will

promote the goal of increasing the percentage of citizens of this

state with high-quality degrees and credentials to at least 60% by

2025.

(8) Not later than November 1, 2013, the Michigan virtual

university shall submit to the house and senate appropriations

subcommittees on state school aid, the state budget director, and

the house and senate fiscal agencies a detailed budget for the

2013-2014 fiscal year that includes a breakdown on its projected

costs to deliver online educational services to districts and a

summary of the anticipated fees to be paid by districts for those

services. Beginning in 2013-2014, not later than February 1, the

Michigan virtual university shall submit to the house and senate

appropriations subcommittees on state school aid, the state budget

director, and the house and senate fiscal agencies a breakdown on

its actual costs to deliver online educational services to

districts and a summary of the actual fees paid by districts for

those services based on audited financial statements for the

immediately preceding fiscal year.

(9) As used in this section:

(a) "Blended learning" means a hybrid instructional delivery

model where pupils are provided ~~face-to-face~~ content, instruction,

and assessment, in part at a supervised ~~school~~ educational facility

away from home where the pupil and a teacher with a valid Michigan

teaching certificate are in the same physical location and in part

through ~~computer-based and~~ internet-connected learning environments

with some degree of pupil control over time, location, and pace of

instruction.

(b) "Cyber school" means a full-time ~~online~~ instructional

program of online courses for pupils that may or may not require

attendance at a physical school location.

based educational delivery system that uses various information

technologies to provide a structured learning environment,

including online and blended learning instructional methods.

(d) ~~(c)~~ "Online ~~instructional program"~~ course" means a course

of study that ~~generates~~ is capable of generating a credit or a

grade, that is provided in an interactive ~~computer-based and~~

internet-connected learning environment, in which pupils are

separated from their teachers by time or location, or both, and in

which a ~~Michigan certificated teacher~~ teacher who holds a valid

Michigan teaching certificate is responsible for ~~providing direct~~

~~instruction,~~ determining appropriate instructional methods for each

pupil, diagnosing learning needs, assessing pupil learning,

prescribing intervention strategies, reporting outcomes, and

evaluating the effects of instruction and support strategies.

Sec. 99. (1) From the funds appropriated in section 11, there

is allocated for 2013-2014 an amount not to exceed ~~$2,725,000.00~~

~~for 2012-2013~~ $2,850,000.00 from the state school aid fund and an

amount not to exceed $375,000.00 from the general fund to support

the activities and programs of mathematics and science centers and

for other purposes as described in this section. In addition, from

the federal funds appropriated in section 11, there is allocated

for ~~2012-2013~~ 2013-2014 an amount estimated at $5,249,300.00 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 comprehensive master plan for

mathematics and science centers developed by the department and

approved by the state board, an established mathematics and science

center shall provide 2 or more of the following 6 basic services,

as described in the master plan, to constituent districts and

communities: leadership, pupil services, curriculum support,

community involvement, professional development, and resource

clearinghouse services.

(3) The department shall not award a state grant under this

section to more than 1 mathematics and science center located in a

designated region as prescribed in the 2007 master plan unless each

of the grants serves a distinct target population or provides a

service that does not duplicate another program in the designated

region.

(4) As part of the technical assistance process, the

department shall provide minimum standard guidelines that may be

used by the mathematics and science center for providing fair

access for qualified pupils and professional staff as prescribed in

this section.

(5) Allocations under this section to support the activities

and programs of mathematics and science centers shall be continuing

support grants to all 33 established mathematics and science

centers. Each established mathematics and science center that was

funded in the immediately preceding fiscal year shall receive state

funding in an amount equal to 100% of the amount it was allocated

under this subsection for the immediately preceding fiscal year. If

a center declines state funding or a center closes, the remaining

money available under this section shall be distributed to the

remaining centers, as determined by the department.

(6) From the funds allocated in subsection (1), there is

allocated for ~~2012-2013~~ 2013-2014 an amount not to exceed

$750,000.00 in a form and manner determined by the department to

those centers able to provide curriculum and professional

development support to assist districts in implementing the

Michigan merit curriculum components for mathematics and science.

Funding under this subsection is in addition to funding allocated

under subsection (5).

(7) From the ~~funds~~ state school aid fund money allocated in

subsection (1), there is allocated for ~~2012-2013~~ 2013-2014 an

amount not to exceed $100,000.00 in a form and manner determined by

the department to a single mathematics and science center that is a

participant in the Michigan STEM partnership, to be used to

administer the grant process under this subsection. From the

general fund money allocated in subsection (1), there is allocated

for 2013-2014 an amount not to exceed $375,000.00 to the Michigan

STEM partnership to be used for a competitive grant process to

award competitive grants to organizations conducting student-

focused, project-based programs and competitions, either in the

classroom or extracurricular, in science, technology, engineering,

and mathematics subjects such as, but not limited to, robotics,

coding, and design-build-test projects, from pre-kindergarten

through college level. Funding under this subsection is in addition

to funding allocated under subsection (5) and shall be used for

connecting mathematics and science centers for science, technology,

engineering, and mathematics purposes. A program receiving funds

under section 99h may not receive funds under this subsection.

(8) In order to receive state or federal 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.

(9) Not later than September 30, 2013, the department shall

reevaluate and update the comprehensive master plan described in

subsection (1).

(10) The department shall give preference in awarding the

federal grants allocated in subsection (1) to eligible existing

mathematics and science centers.

(11) 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.

(12) Not later than July 1 of each year, a mathematics and

science center that receives funds under this section shall report

to the department in a form and manner prescribed by the department

on the following performance measures:

(a) Statistical change in pre- and post-assessment scores for

students who enrolled in mathematics and science activities

provided to districts by the mathematics and science center.

(b) Statistical change in pre- and post-assessment scores for

teachers who enrolled in professional development activities

provided by the mathematics and science center.

(13) 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. 99h. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $3,000.000.00 for 2013-2014 for

competitive grants to districts that provide pupils in grades 7 to

12 with expanded opportunities to improve mathematics, science, and

technology skills by participating in events hosted by a science

and technology development program known as FIRST (for inspiration

and recognition of science and technology) robotics.

(2) A district applying for a FIRST tech challenge or FIRST

robotics competition program grant shall submit an application in a

form and manner determined by the department. To be eligible for a

grant, a district shall demonstrate in its application that the

district has established a partnership for the purposes of the

FIRST program with at least 1 sponsor, business entity, higher

education institution, or technical school.

(3) The department shall distribute the grant funding under

this section for the following purposes:

(a) Except as otherwise provided in subparagraph (iii), not more

than $1,000,000.00 for grants to districts to pay for stipends of

$1,500.00 for 1 coach per team, distributed as follows:

(i) Not more than 500 stipends for coaches of high school

teams, including existing teams.

(ii) Not more than 100 stipends for coaches of middle school or

junior high teams, including existing teams.

(iii) If the requests for stipends exceed the numbers of

stipends allowed under subparagraphs (i) and (ii), and if there is

funding remaining unspent under subdivisions (b) and (c), the

department shall use that remaining unspent funding for grants to

districts to pay for additional stipends in a manner that expands

the geographical distribution of teams.

(b) Not more than $1,000,000.00 for grants to districts for

event registrations, materials, travel costs, and other expenses

associated with the preparation for and attendance at FIRST tech

challenge and FIRST robotics competitions. Each grant recipient

shall provide a local match from other private or local funds for

the funds received under this subdivision equal to at least 50% of

the costs of participating in an event. The department shall set

maximum grant amounts under this subdivision in a manner that

maximizes the number of teams that will be able to receive funding.

awards to teams that advance to the state and world championship

competitions. The department shall determine an equal amount per

team for those teams that advance to the state championship and a

second equal award amount to those teams that advance to the world

championship.

Sec. 101. (1) To be eligible to receive state aid under this

~~act,~~ article, not later than the fifth Wednesday after the pupil

membership count day and not later than the fifth Wednesday after

the supplemental count day, each district superintendent shall

submit to the center and the intermediate superintendent, in the

form and manner prescribed by the center, the number of pupils

enrolled and in regular daily attendance in the district as of the

pupil membership count day and as of the supplemental count day, as

applicable, for the current school year. In addition, a district

maintaining school during the entire year, as provided under

section 1561 of the revised school code, MCL 380.1561, shall submit

to the center and the intermediate superintendent, in the form and

manner prescribed by the center, the number of pupils enrolled and

in regular daily attendance in the district for the current school

year pursuant to rules promulgated by the superintendent. Not later

than the ~~seventh~~ sixth Wednesday after the pupil membership count

day and not later than the sixth Wednesday after the supplemental

count day, the district shall certify the data in a form and manner

prescribed by the center and file the certified data with the

intermediate superintendent. If a district fails to submit and

certify the attendance data, as required under this subsection, the

center shall notify the department and state aid due to be

distributed under this article shall be withheld from the

defaulting district immediately, beginning with the next payment

after the failure and continuing with each payment until the

district complies with this subsection. If a district does not

comply with this subsection by the end of the fiscal year, the

district forfeits the amount withheld. A person who willfully

falsifies a figure or statement in the certified and sworn copy of

enrollment shall be punished in the manner prescribed by section

161.

(2) To be eligible to receive state aid under this article,

not later than the twenty-fourth Wednesday after the pupil

membership count day and not later than the twenty-fourth Wednesday

after the supplemental count day, an intermediate district shall

submit to the center, in a form and manner prescribed by the

center, the audited enrollment and attendance data for the pupils

of its constituent districts and of the intermediate district. If

an intermediate district fails to submit the audited data as

required under this subsection, state aid due to be distributed

under this article shall be withheld from the defaulting

intermediate district immediately, beginning with the next payment

after the failure and continuing with each payment until the

intermediate district complies with this subsection. If an

intermediate district does not comply with this subsection by the

end of the fiscal year, the intermediate district forfeits the

amount withheld.

(3) Except as otherwise provided in subsections (11) and (12),

all of the following apply to the provision of pupil instruction:

(a) Except as otherwise provided in this section, each

district shall provide at least 1,098 hours and, beginning in 2010-

2011, the required minimum number of days of pupil instruction.

Beginning in 2012-2013, the required minimum number of days of

pupil instruction is 170. Beginning in 2013-2014, the required

minimum number of days of pupil instruction is 175. However,

~~beginning in 2010-2011,~~ a district shall not provide fewer days of

pupil instruction than the district provided for 2009-2010. A

district may apply for a waiver under subsection (9) from the

requirements of this subdivision. For 2012-2013 only, if a district

is unable to provide the required minimum number of days of pupil

instruction because of school closures occurring before April 20,

2013 due to conditions not within the control of school

authorities, such as severe storms, fires, epidemics, utility power

unavailability, water or sewer failure, or health conditions as

defined by the city, county, or state health authorities, but the

district does provide at least the required minimum number of hours

of pupil instruction, the district is not subject to the minimum

number of days of pupil instruction requirement of this subsection.

A district that uses the 2012-2013 exception from the minimum

number of days of pupil instruction requirement shall submit to the

department not later than July 1, 2013, in the form and manner

prescribed by the department, a report that details the amount of

instructional time that was lost due to school closures and the

amount of additional instructional time that was added to

compensate; when the additional instructional time was provided;

the activities that were carried out and subject areas addressed

during the additional instructional time; and other information

specified by the department to assess whether appropriate

instruction occurred during the additional instructional time. The

department shall aggregate and provide these reports to the senate

and house standing committees on education.

(b) Except as otherwise provided in this article, a district

failing to comply with the required minimum hours and days of pupil

instruction under this subsection shall forfeit from its total

state aid allocation an amount determined by applying a ratio of

the number of hours or days the district was in noncompliance in

relation to the required minimum number of hours and days under

this subsection. Not later than August 1, the board of each

district shall certify to the department the number of hours and

days of pupil instruction in the previous school year. If the

district did not provide at least the required minimum number of

hours and days of pupil instruction under this subsection, the

deduction of state aid shall be made in the following fiscal year

from the first payment of state school aid. A district is not

subject to forfeiture of funds under this subsection for a fiscal

year in which a forfeiture was already imposed under subsection

(6).

conferences shall not be counted as hours or days of pupil

instruction.

(d) If a collective bargaining agreement that provides a

complete school calendar is in effect for employees of a district

as of October 19, 2009, and if that school calendar is not in

compliance with this subsection, then this subsection does not

apply to that district until after the expiration of that

collective bargaining agreement.

(e) Except as otherwise provided in subdivision (f), a

district not having at least 75% of the district's membership in

attendance on any day of pupil instruction shall receive state aid

in that proportion of 1/180 that the actual percent of attendance

bears to the specified percentage.

(f) At the request of a district that operates a department-

approved alternative education program and that does not provide

instruction for pupils in all of grades K to 12, the superintendent

may grant a waiver from the requirements of subdivision (e). The

waiver shall indicate that an eligible district is subject to the

proration provisions of subdivision (e) only if the district does

not have at least 50% of the district's membership in attendance on

any day of pupil instruction. In order to be eligible for this

waiver, a district must maintain records to substantiate its

compliance with the following requirements:

(i) The district offers the minimum hours of pupil instruction

as required under this section.

(ii) For each enrolled pupil, the district uses appropriate

academic assessments to develop an individual education plan that

leads to a high school diploma.

(iii) The district tests each pupil to determine academic

progress at regular intervals and records the results of those

tests in that pupil's individual education plan.

(g) All of the following apply to a waiver granted under

subdivision (f):

(i) If the waiver is for a blended model of delivery, a waiver

that is granted for the 2011-2012 fiscal year or a subsequent

fiscal year remains in effect unless it is revoked by the

superintendent.

(ii) If the waiver is for a 100% online model of delivery and

the educational program for which the waiver is granted makes

educational services available to pupils for a minimum of at least

1,098 hours during a school year and ensures that each pupil

participates in the educational program for at least 1,098 hours

during a school year, a waiver that is granted for the 2011-2012

fiscal year or a subsequent fiscal year remains in effect unless it

is revoked by the superintendent.

(iii) A waiver that is not a waiver described in subparagraph

(i) or (ii) is valid for 1 fiscal year and must be renewed annually

to remain in effect.

(h) The superintendent shall promulgate rules for the

implementation of this subsection.

(4) Except as otherwise provided in this subsection, the first

6 days or the equivalent number of hours for which pupil

instruction is not provided because of conditions not within the

control of school authorities, such as severe storms, fires,

epidemics, utility power unavailability, water or sewer failure, or

health conditions as defined by the city, county, or state health

authorities, shall be counted as hours and days of pupil

instruction. With the approval of the superintendent of public

instruction, the department shall count as hours and days of pupil

instruction for a fiscal year not more than 6 additional days or

the equivalent number of additional hours for which pupil

instruction is not provided in a district after April 1 of the

applicable school year due to unusual and extenuating occurrences

resulting from conditions not within the control of school

authorities such as those conditions described in this subsection.

Subsequent such hours or days shall not be counted as hours or days

of pupil instruction.

(5) A district shall not forfeit part of its state aid

appropriation because it adopts or has in existence an alternative

scheduling program for pupils in kindergarten if the program

provides at least the number of hours required under subsection (3)

for a full-time equated membership for a pupil in kindergarten as

provided under section 6(4).

(6) In addition to any other penalty or forfeiture under this

section, if at any time the department determines that 1 or more of

the following ~~has~~ have occurred in a district, the district shall

forfeit in the current fiscal year beginning in the next payment to

be calculated by the department a proportion of the funds due to

the district under this article that is equal to the proportion

below the required minimum number of hours and days of pupil

instruction under subsection (3), as specified in the following:

(a) The district fails to operate its schools for at least the

required minimum number of hours and days of pupil instruction

under subsection (3) in a school year, including hours and days

counted under subsection (4).

(b) The board of the district takes formal action not to

operate its schools for at least the required minimum number of

hours and days of pupil instruction under subsection (3) in a

school year, including hours and days counted under subsection (4).

(7) In providing the minimum number of hours and days of pupil

instruction required under subsection (3), a district shall use the

following guidelines, and a district shall maintain records to

substantiate its compliance with the following guidelines:

(a) Except as otherwise provided in this subsection, a pupil

must be scheduled for at least the required minimum number of hours

of instruction, excluding study halls, or at least the sum of 90

hours plus the required minimum number of hours of instruction,

including up to 2 study halls.

(b) The time a pupil is assigned to any tutorial activity in a

block schedule may be considered instructional time, unless that

time is determined in an audit to be a study hall period.

in grades 9 to 12 for whom a reduced schedule is determined to be

in the individual pupil's best educational interest must be

scheduled for a number of hours equal to at least 80% of the

required minimum number of hours of pupil instruction to be

considered a full-time equivalent pupil. A pupil in grades 9 to 12

who is scheduled in a 4-block schedule may receive a reduced

schedule under this subsection if the pupil is scheduled for a

number of hours equal to at least 75% of the required minimum

number of hours of pupil instruction to be considered a full-time

equivalent pupil.

(d) If a pupil in grades 9 to 12 who is enrolled in a

cooperative education program or a special education pupil cannot

receive the required minimum number of hours of pupil instruction

solely because of travel time between instructional sites during

the school day, that travel time, up to a maximum of 3 hours per

school week, shall be considered to be pupil instruction time for

the purpose of determining whether the pupil is receiving the

required minimum number of hours of pupil instruction. However, if

a district demonstrates to the satisfaction of the department that

the travel time limitation under this subdivision would create

undue costs or hardship to the district, the department may

consider more travel time to be pupil instruction time for this

purpose.

(e) In grades 7 through 12, instructional time that is part of

a junior reserve officer training corps (JROTC) program shall be

considered to be pupil instruction time regardless of whether the

instructor is a certificated teacher if all of the following are

met:

(i) The instructor has met all of the requirements established

by the United States department of defense and the applicable

branch of the armed services for serving as an instructor in the

junior reserve officer training corps program.

(ii) The board of the district or intermediate district

employing or assigning the instructor complies with the

requirements of sections 1230 and 1230a of the revised school code,

MCL 380.1230 and 380.1230a, with respect to the instructor to the

same extent as if employing the instructor as a regular classroom

teacher.

(8) Except as otherwise provided in subsections (11) and (12),

the department shall apply the guidelines under subsection (7) in

calculating the full-time equivalency of pupils.

(9) Upon application by the district for a particular fiscal

year, the superintendent may waive for a district the minimum

number of hours and days of pupil instruction requirement of

subsection (3) for a department-approved alternative education

program or another innovative program approved by the department,

including a 4-day school week. If a district applies for and

receives a waiver under this subsection and complies with the terms

of the waiver, the district is not subject to forfeiture under this

section for the specific program covered by the waiver. If the

district does not comply with the terms of the waiver, the amount

of the forfeiture shall be calculated based upon a comparison of

the number of hours and days of pupil instruction actually provided

to the minimum number of hours and days of pupil instruction

required under subsection (3). Pupils enrolled in a department-

approved alternative education program under this subsection shall

be reported to the center in a form and manner determined by the

center. All of the following apply to a waiver granted under this

subsection:

(a) If the waiver is for a blended model of delivery, a waiver

that is granted for the 2011-2012 fiscal year or a subsequent

fiscal year remains in effect unless it is revoked by the

superintendent.

(b) If the waiver is for a 100% online model of delivery and

the educational program for which the waiver is granted makes

educational services available to pupils for a minimum of at least

1,098 hours during a school year and ensures that each pupil

participates in the educational program for at least 1,098 hours

during a school year, a waiver that is granted for the 2011-2012

fiscal year or a subsequent fiscal year remains in effect unless it

is revoked by the superintendent.

or (b) is valid for 1 fiscal year and must be renewed annually to

remain in effect.

(10) A Until 2014-2015, a district may count up to 38 hours of

qualifying professional development for teachers as hours of pupil

instruction. Professional development provided online is allowable

and encouraged, as long as the instruction has been approved by the

district. The department shall issue a list of approved online

professional development providers, which shall include the

Michigan virtual school. As used in this subsection, "qualifying

professional development" means professional development that is

focused on 1 or more of the following:

(a) Achieving or improving adequate yearly progress as defined

under the no child left behind act of 2001, Public Law 107-110.

(b) Achieving accreditation or improving a school's

accreditation status under section 1280 of the revised school code,

MCL 380.1280.

the no child left behind act of 2001, Public Law 107-110.

(d) Integrating technology into classroom instruction.

(e) Maintaining teacher certification.

(11) Subsections (3) and (8) do not apply to a school of

excellence that is a cyber school, as defined in section 551 of the

revised school code, MCL 380.551, and is in compliance with section

553a of the revised school code, MCL 380.553a.

(12) Subsections (3) and (8) do not apply to eligible pupils

enrolled in a dropout recovery program that meets the requirements

of section 23a. As used in this subsection, "eligible pupil" means

that term as defined in section 23a.

(13) Beginning in 2013, at least every 2 years the

superintendent shall review the waiver standards set forth in the

pupil accounting and auditing manuals to ensure that the waiver

standards and waiver process continue to be appropriate and

responsive to changing trends in online learning. The

superintendent shall solicit and consider input from stakeholders

as part of this review.

Sec. 102. (1) A district or intermediate district receiving

money under this ~~act~~ article shall not adopt or operate under a

deficit budget, and a district or intermediate district shall not

incur an operating deficit in a fund during a school fiscal year. A

district or intermediate district that has an existing deficit fund

balance, that incurs a deficit fund balance in the most recently

completed school fiscal year, or that adopts a current year budget

that projects a deficit fund balance shall not be allotted or paid

a further sum under this ~~act~~ article until the district or

intermediate district submits to the department for approval a

budget for the current school fiscal year and a plan to eliminate

the district's or intermediate district's deficit not later than

the end of the second school fiscal year after the deficit was

incurred or the budget projecting a deficit was adopted. Withheld

state aid payments shall be released after the department approves

the deficit ~~reduction~~ elimination plan and ensures that the budget

for the current school fiscal year is balanced. After the

department approves a district's or intermediate district's deficit

~~reduction~~ elimination plan, the district or intermediate district

shall post the deficit elimination plan on the district's or

intermediate district's website.

(2) Not later than March 1 of each year, the department shall

prepare a report of deficits incurred or projected by districts and

intermediate districts in the immediately preceding fiscal year and

the progress made in reducing those deficits and submit the report

to the standing committees of the legislature responsible for K-12

education legislation, the appropriations subcommittees of the

legislature responsible for K-12 education appropriations, the

house and senate fiscal agencies, the state treasurer, and the

state budget director. The department also shall submit quarterly

interim reports concerning the progress made by districts and

intermediate districts in reducing those deficits. On a quarterly

basis, the superintendent of public instruction shall publicly

present those reports to the appropriations subcommittees of the

legislature responsible for K-12 education appropriations.

(3) The amount of the permissible deficit for each school

fiscal year shall not exceed the amount of state aid reduced by an

executive order during that school fiscal year.

(4) A district or intermediate district that has an existing

deficit fund balance, that incurs a deficit fund balance in the

most recently completed school fiscal year, or that adopts a

current year budget that projects a deficit fund balance shall

submit to the department a monthly monitoring report on revenue and

expenditures in a form and manner prescribed by the department and

shall post these reports on its website.

(5) If a district or intermediate district is not able to

comply with the provisions of this section, the district or

intermediate district shall submit to the department a plan to

eliminate its deficit. Upon approval of the plan submitted, the

superintendent of public instruction may continue allotment and

payment of funds under this ~~act,~~ article, extend the period of time

in which a district or intermediate district has to eliminate its

deficit, and set special conditions that the district or

intermediate district must meet during the period of the extension.

After the department approves a district's or intermediate

district's deficit ~~reduction~~ elimination plan under this

subsection, the district or intermediate district shall post the

deficit elimination plan on the district's or intermediate

district's website.

(6) For the purposes of this section, "deficit fund balance"

means that term as defined in the Michigan public school accounting

manual published by the department.

Sec. 104. (1) In order to receive state aid under this

article, a district shall comply with sections 1249, 1278a, 1278b,

1279, 1279g, and 1280b of the revised school code, MCL 380.1249,

380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970

PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from

the state school aid fund money appropriated in section 11, there

is allocated for ~~2012-2013~~ 2013-2014 an amount not to exceed

$26,694,400.00 for payments on behalf of districts for costs

associated with complying with those provisions of law. In

addition, from the federal funds appropriated in section 11, there

is allocated for ~~2012-2013~~ 2013-2014 an amount estimated at

$8,250,000.00, funded from DED-OESE, title VI, state assessment

funds, and from DED-OSERS, section 504 of part B of the individuals

with disabilities education act, Public Law 94-142, plus any

carryover federal funds from previous year appropriations, for the

purposes of complying with the federal no child left behind act of

2001, Public Law 107-110.

(2) The results of each test administered as part of the

Michigan educational assessment program, including tests

administered to high school students, shall include an item

analysis that lists all items that are counted for individual pupil

scores and the percentage of pupils choosing each possible

response.

(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.

(4) Notwithstanding section 17b, payments on behalf of

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

(5) 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.

rehabilitative services.

Sec. 107. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $22,000,000.00 for ~~2012-2013~~

2013-2014 for adult education programs authorized under this

section. Funds allocated under this section are restricted for

adult education programs as authorized under this section only. A

recipient of funds under this section shall not use those funds for

any other purpose.

(2) To be eligible for funding under this section, a program

shall employ certificated teachers and qualified administrative

staff and shall offer continuing education opportunities for

teachers to allow them to maintain certification.

(3) 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 Michigan career and technical

institute.

(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.

(4) Except as otherwise provided in subsection (5), the money

allocated under this section shall be distributed as follows:

(a) For districts and consortia that received payments for

~~2011-2012~~ 2012-2013 under this section, the amount allocated to

each for ~~2012-2013~~ 2013-2014 shall be based on the number of

participants served by the district or consortium for 2012-2013,

using the amount allocated per full-time equated participant under

subsection (7), up to a maximum total allocation under this

subsection in an amount equal to the amount the district or

consortium received for ~~2011-2012~~ 2012-2013 under this section

before any reallocations made for ~~2011-2012~~ 2012-2013 under

subsection (5).

(b) A district or consortium that received funding in ~~2011-~~

~~2012~~ 2012-2013 under this section may operate independently of a

consortium or join or form a consortium for ~~2012-2013.~~ 2013-2014.

The allocation for ~~2012-2013~~ 2013-2014 to the district or the newly

formed consortium under this subsection shall be determined by the

department and shall be based on the proportion of the amounts that

are attributable to the district or consortium that received

funding in ~~2011-2012.~~ 2012-2013. A district or consortium described

in this subdivision shall notify the department of its intention

with regard to ~~2012-2013~~ 2013-2014 by October 1, ~~2012.~~2013.

(5) A district that operated an adult education program in

~~2011-2012~~ 2012-2013 and does not intend to operate a program in

~~2012-2013~~ 2013-2014 shall notify the department by October 1, ~~2012~~

2013 of its intention. The money intended to be allocated under

this section to a district that does not operate a program in ~~2012-~~

~~2013~~ 2013-2014 and the unspent money 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 (4) and any other unallocated money under this section

shall instead be proportionately reallocated to the other districts

described in subsection (4)(a) that are operating an adult

education program in ~~2012-2013~~ 2013-2014 under this section.

(6) 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.

(7) 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 a

department-approved assessment, in a form and manner prescribed by

the department, 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 upon completion of the

program in compliance with the state-approved assessment policy.

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 (11) until the participant meets 1 of the following:

(i) The participant is assessed as having attained basic

English proficiency as determined by a department-approved

assessment.

(ii) The participant fails to show progress on 2 successive

department-approved assessments after having completed at least 450

hours of instruction. The department shall provide information to a

funding recipient regarding appropriate assessment instruments for

this program.

(8) 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 before enrolling an individual to determine the

individual's potential for success on the G.E.D. test, and shall

administer a post-test upon completion of the program in compliance

with the state-approved assessment policy.

subsection (11) 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

department-approved assessments used to determine readiness to take

the G.E.D. test after having completed at least 450 hours of

instruction.

(9) 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) The program tests participants described in subdivision

(a) before enrollment and upon completion of the program in

compliance with the state-approved assessment policy.

subsection (11) 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.

(10) 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) The program tests participants described in subdivision

(a) before enrollment and upon completion of the program in

compliance with the department-approved assessment policy.

grant recipient shall receive funding according to subsection (11)

until 1 of the following occurs:

(i) The individual achieves the requisite skills as determined

by department-approved assessment instruments.

(ii) The individual fails to show progress on 2 successive

assessments after having completed at least 450 hours of

instruction.

(11) 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, as defined by the department in the adult education

guidebook; for obtaining a G.E.D. or passage of 1 or more

individual G.E.D. tests; for attainment of a high school diploma or

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.

(12) 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).

(13) 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 (7), (8), (9), or (10) 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.

(14) An individual who is an inmate in a state correctional

facility shall not be counted as a participant under this section.

(15) 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.

(16) 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.

(17) In order to receive funds under this section, a district

shall furnish to the department, in a form and manner determined by

the department, all information needed to administer this program

and meet federal reporting requirements; shall allow the department

or the department's designee to review all records related to the

program for which it receives funds; and shall reimburse the state

for all disallowances found in the review, as determined by the

department.

(18) All intermediate district participant audits of adult

education programs shall be performed pursuant to the adult

education participant auditing and accounting manuals published by

the department.

(19) It is the intent of the legislature to study allocating

funds under this section on a competitive basis beginning for 2014-

2015.

(20) ~~(19)~~ As used in this section, "department" means the

Michigan strategic fund.

Sec. 147. (1) The allocation each fiscal year for ~~2012-2013~~

2013-2014 and for 2014-2015 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 individual projected benefit entry age normal

cost ~~actuarial~~ method of valuation and risk assumptions adopted by

the public school employees retirement board and the department of

technology, management, and budget.

(2) The annual level percentage of payroll contribution rates

for the 2013-2014 fiscal year, as determined by the retirement

system, are estimated as follows:

(a) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who are enrolled in

the health premium subsidy, the annual level percentage of payroll

contribution rate is estimated at ~~18.62% for pension and at 8.75%~~

~~for retiree health care for the 2012-2013 fiscal year, unless a~~

~~different contribution rate is calculated and applied by the office~~

~~of retirement services pursuant to provisions enacted under Senate~~

~~Bill No. 1040 of the 96th Legislature.~~29.35%, with 24.79% paid

directly by the employer.

(b) For public school employees who first worked for a public

school reporting unit on or after July 1, 2010 and who are enrolled

in the health premium subsidy, the annual level percentage of

payroll contribution rate is estimated at 29.12%, with 24.56% paid

directly by the employer. ~~17.39% for pension and 8.75% for retiree~~

~~health care for the 2012-2013 fiscal year, unless a different~~

~~contribution rate is calculated and applied by the office of~~

~~retirement services pursuant to provisions enacted under Senate~~

~~Bill No. 1040 of the 96th Legislature. For public school employees~~

~~who first worked for a public school reporting unit before July 1,~~

~~2010, the annual level percentage of payroll contribution rate is~~

~~estimated at 22.46% for pension and 8.75% for retiree health care~~

~~for the 2013-2014 fiscal year, unless a different contribution rate~~

~~is calculated and applied by the office of retirement services~~

~~pursuant to provisions enacted under Senate Bill No. 1040 of the~~

~~96th Legislature. For public school employees who first worked for~~

~~a public school reporting unit on or after July 1, 2010, the annual~~

~~level percentage of payroll contribution rate is estimated at~~

~~21.19% for pension and 8.75% for retiree health care for the 2013-~~

~~2014 fiscal year, unless a different contribution rate is~~

~~calculated and applied by the office of retirement services~~

~~pursuant to provisions enacted under Senate Bill No. 1040 of the~~

~~96th Legislature. The portion of the contribution rate assigned to~~

~~districts and intermediate districts for each fiscal year is all of~~

~~the total percentage points. This~~

school reporting unit on or after July 1, 2010 and who participate

in the pension plus plan and in the personal healthcare fund, the

annual level percentage of payroll contribution rate is estimated

at 28.19%, with 23.63% paid directly by the employer.

(d) For public school employees who first worked for a public

school reporting unit on or after September 4, 2012, who elect

defined contribution, and who participate in the personal

healthcare fund, the annual level percentage of payroll

contribution rate is estimated at 25.52%, with 20.96% paid directly

by the employer.

(e) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who are enrolled in the health premium subsidy,

the annual level percentage of payroll contribution rate is

estimated at 26.45%, with 21.89% paid directly by the employer.

(f) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who participate in the personal healthcare fund,

the annual level percentage of payroll contribution rate is

estimated at 25.52%, with 20.96% paid directly by the employer.

(g) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who participate in

the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at 28.42%, with 23.86% paid

directly by the employer.

(3) The annual level percentage of payroll contribution rates

for the 2014-2015 fiscal year, as determined by the retirement

system, are estimated as follows:

(a) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who are enrolled in

the health premium subsidy, the annual level percentage of payroll

contribution rate is estimated at 33.10%, with 25.78% paid directly

by the employer.

(b) For public school employees who first worked for a public

school reporting unit on or after July 1, 2010 and who are enrolled

in the health premium subsidy, the annual level percentage of

payroll contribution rate is estimated at 32.02%, with 24.70% paid

directly by the employer.

school reporting unit on or after July 1, 2010 and who participate

in the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at 31.51%, with 24.19% paid

directly by the employer.

(d) For public school employees who first worked for a public

school reporting unit on or after September 4, 2012, who elect

defined contribution, and who participate in the personal

healthcare fund, the annual level percentage of payroll

contribution rate is estimated at 28.28%, with 20.96% paid directly

by the employer.

(e) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who are enrolled in the health premium subsidy,

the annual level percentage of payroll contribution rate is

estimated at 28.79%, with 21.47% paid directly by the employer.

(f) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who participate in the personal healthcare fund,

the annual level percentage of payroll contribution rate is

estimated at 28.28%, with 20.96% paid directly by the employer.

(g) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who participate in

the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at 32.59%, with 25.27% paid

directly by the employer.

(4) In addition to the employer payments described in

subsections (2) and (3), the employer shall pay the applicable

contributions to the Tier 2 plan, as determined by the public

school employees retirement act of 1979, 1980 PA 300 MCL 38.1301 to

38.1408.

(5) The contribution ~~rate reflects~~ rates in subsection (2)

reflect an amortization period of 26 25years for ~~2012-2013.~~ 2013-

2014. 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.

Sec. 147a. From the appropriation in section 11, there is

allocated for ~~2012-2013~~ 2013-2014 an amount not to exceed

~~$155,000,000.00~~ $100,000,000.00 for payments to participating

districts. A district that receives money under this section shall

use that money solely for the purpose of offsetting a portion of

the retirement contributions owed by the district for the fiscal

year ~~ending September 30, 2013.~~ in which it is received. The amount

allocated to each participating district under this section shall

be based on each participating district's percentage of the total

statewide payroll for all participating districts for the

immediately preceding school fiscal year. As used in this section,

"participating district" means a district that is a reporting unit

of the Michigan public school employees' retirement system under

the public school employees retirement act of 1979, 1980 PA 300,

MCL 38.1301 to 38.1408, and that reports employees to the Michigan

public school employees' retirement system for the applicable

fiscal year.

Sec. 147b. ~~(1) From the appropriation in section 11, there is~~

~~allocated an amount not to exceed $133,000,000.00 for 2011-2012 and~~

~~an amount not to exceed $41,000,000.00 for 2012-2013 for the~~

~~purposes of this section. The money allocated in this section~~

~~represents a portion of the year-end school aid fund balance. Money~~

~~allocated under this section shall be deposited in the MPSERS~~

~~retirement obligation reform reserve fund.~~

(1) ~~(2)~~ The MPSERS retirement obligation reform reserve fund

is created as a separate account within the state school aid fund.

(2) The state treasurer may receive money or other assets from

any source for deposit into the MPSERS retirement obligation reform

reserve fund. The state treasurer shall direct the investment of

the MPSERS retirement obligation reform reserve fund. The state

treasurer shall credit to the MPSERS retirement obligation reform

reserve fund interest and earnings from the MPSERS retirement

obligation reform reserve fund.

(3) Money available in the MPSERS retirement obligation reform

reserve fund shall not be expended without a specific

appropriation.

(4) Money in the MPSERS retirement obligation reform reserve

fund at the close of the fiscal year shall remain in the MPSERS

retirement obligation reform reserve fund and shall not lapse to

the state school aid fund or to the general fund. The department of

treasury shall be the administrator of the MPSERS retirement

obligation reform reserve fund for auditing purposes.

~~(3) It is the intent of the legislature that the speaker of~~

~~the house of representatives or the senate majority leader, or~~

~~both, shall convene a workgroup to examine retirement obligations~~

~~and potential reforms to the Michigan public school employees'~~

~~retirement system established under the public school employees~~

~~retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408. The~~

~~chair of the senate appropriations committee and chair of the house~~

~~appropriations committee, or his or her designee, each shall be a~~

~~member of the workgroup, and the workgroup shall report to the~~

~~speaker of the house of representatives or the senate majority~~

~~leader, as applicable, by February 1, 2012, on reforms identified,~~

~~timelines for implementing reforms, and estimated costs and savings~~

~~of the identified reforms.~~

(5) If the contributions described in section 43e of the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1343e, as that section was added by 2010 PA 75, are determined

by a final order of a court of competent jurisdiction for which all

rights of appeal have been exhausted to be constitutional and if

the order for preliminary injunction in Case No. 10-45-MM issued on

July 13, 2010 is lifted, the money placed in a separate interest

bearing account as a result of implementing the preliminary

injunction shall be deposited into the MPSERS retirement obligation

reform reserve fund created in this section to be used solely for

health care unfunded accrued liabilities.

Sec. 147c. (1) ~~Except as otherwise provided in subsection (2),~~

~~from~~ From the state school aid fund money appropriated in section

11, there is allocated for 2012-2013 an amount not to exceed

$160,000,000.00 for payments to districts and intermediate

districts that are participating entities of the retirement system.

From the appropriation in section 11, there is allocated for ~~2012-~~

~~2013~~ 2013-2014 an amount not to exceed ~~$130,000,000.00 to~~

$247,300,000.00 from the state school aid fund, and there is

appropriated for 2013-2014 an amount not to exceed $156,000,000.00

from the MPSERS retirement obligation reform reserve fund, for

payments to districts and intermediate districts that are

participating entities of the Michigan public school employees'

retirement system.

(2) In addition to the allocation under subsection (1), from

the general fund money appropriated under section 11, there is

allocated for payments to district libraries that are participating

entities of the retirement system an amount not to exceed

$500,000.00 for 2012-2013 and an amount not to exceed $1,300,000.00

for 2013-2014.

(3) Payments made under this section for 2012-2013 shall be

equal to the difference between the unfunded actuarial accrued

liability contribution rate as calculated pursuant to section 41 of

the public school employees retirement act of 1979, 1980 PA 300,

MCL 38.1341, and the maximum employer rate of 20.96% included in

section 41 of the public school employees retirement act of 1979,

1980 PA 300, MCL 38.1341. Payments made under this section for

2013-2014 shall be equal to the difference between the unfunded

actuarial accrued liability contribution rate as calculated

pursuant to section 41 of the public school ~~employees'~~ employees

retirement act of 1979, 1980 PA 300, MCL 38.1341, as calculated

without taking into account the maximum employer rate of 20.96%

included in section 41 of the public school employees retirement

act of 1979, 1980 PA 300, MCL 38.1341, and the maximum employer

rate of 20.96% included in section 41 of the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1341.

~~(2) If section 41 of the public school employees' retirement~~

~~act of 1979, 1980 PA 300, MCL 38.1341, is not amended by Senate~~

~~Bill No. 1040 of the 96th Legislature, then the allocation under~~

~~subsection (1) shall lapse to the state school aid fund unless the~~

~~legislature takes action to allocate the funding in another manner.~~

(4) The amount allocated to each participating entity under

this section shall be based on each participating entity's

proportion of the total covered payroll for the immediately

preceding fiscal year for the same type of participating entities.

A participating entity that receives funds under this section shall

use the funds solely for the purpose of retirement contributions as

specified in subsection (5).

(5) Each participating entity receiving funds under this

section shall forward an amount equal to the amount allocated under

subsection (4) to the retirement system in a form, manner, and time

frame determined by the retirement system.

(6) Funds allocated under this section should be considered

when comparing a district's growth in total state aid funding from

1 fiscal year to the next.

(7) As used in this section:

(a) "Participating entity" means a district, intermediate

district, or district library that is a reporting unit of the

Michigan public school employees' retirement system under the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1301 to 38.1437, and that reports employees to the Michigan

public school employees' retirement system for the applicable

fiscal year.

(b) "Retirement board" means the board that administers the

retirement system under the public school employees retirement act

of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

employees' retirement system under the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

Sec. 152a. (1) As required by the court in the consolidated

cases known as Adair v State of Michigan, Michigan supreme court

docket nos. 137424 and 137453, from the state school aid fund money

appropriated in section 11 there is allocated for ~~2012-2013~~ 2013-

2014 an amount not to exceed $38,000,500.00 to be used solely for

the purpose of paying necessary costs related to the state-mandated

collection, maintenance, and reporting of data to this state.

(2) From the allocation in subsection (1), the department

shall make payments to districts and intermediate districts in an

equal amount per pupil based on the total number of pupils in

membership in each district and intermediate district. The

department shall not make any adjustment to these payments after

the final installment payment under section 17b is made.

Sec. 201. (1) Subject to the conditions set forth in this

article, the amounts listed in subsections (2), ~~and~~ (4), (5), (6),

and (7) are appropriated for community colleges for the fiscal year

ending September 30, ~~2013,~~ 2014, from the funds indicated in this

section. The following is a summary of the appropriations in

subsections (2), ~~and~~ (4), (5), (6), and (7):

(a) The gross appropriation is ~~$294,130,500.00.~~

$335,977,600.00. After deducting total interdepartmental grants and

intradepartmental transfers in the amount of $0.00, the adjusted

gross appropriation is ~~$294,130,500.00.~~$335,977,600.00.

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, $0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $197,614,100.00.

(v) State general fund/general purpose money,

~~$96,516,400.00.~~$138,363,500.00.

(2) Subject to subsection (3), the amount appropriated for

community college operations is ~~$292,396,900.00,~~ $298,244,000.00,

allocated as follows:

(a) Alpena Community College, ~~$5,111,200.00.~~$5,221,100.00.

(b) Bay de Noc Community College, ~~$5,161,300.00.~~$5,263,800.00.

(d) Glen Oaks Community College, ~~$2,383,000.00.~~$2,434,300.00.

(e) Gogebic Community College, ~~$4,233,100.00.~~$4,317,500.00.

(f) Grand Rapids Community College,

~~$17,054,300.00.~~$17,403,500.00.

(g) Henry Ford Community College,

~~$20,596,700.00.~~$20,997,900.00.

(h) Jackson Community College, ~~$11,491,500.00.~~$11,723,600.00.

(i) Kalamazoo Valley Community College,

~~$11,828,300.00.~~$12,086,900.00

(j) Kellogg Community College, ~~$9,289,300.00.~~$9,494,000.00.

(k) Kirtland Community College, ~~$2,968,300.00.~~$3,046,800.00.

(l) Lake Michigan College, ~~$5,059,300.00.~~$5,162,900.00.

(m) Lansing Community College, ~~$29,335,000.00.~~$29,935,300.00.

(n) Macomb Community College, ~~$31,206,500.00.~~$31,837,200.00.

(o) Mid Michigan Community College,

~~$4,393,400.00.~~$4,504,700.00.

(p) Monroe County Community College,

~~$4,223,500.00.~~$4,329,900.00.

(q) Montcalm Community College, ~~$3,038,500.00.~~$3,112,000.00.

(r) C.S. Mott Community College,

~~$14,890,400.00.~~$15,202,200.00.

(s) Muskegon Community College, ~~$8,456,100.00.~~$8,628,000.00.

(t) North Central Michigan College,

~~$2,979,900.00.~~$3,055,400.00.

(u) Northwestern Michigan College,

~~$8,624,100.00.~~$8,799,300.00.

(v) Oakland Community College, ~~$19,977,500.00.~~$20,422,900.00.

(w) St. Clair County Community College,

~~$6,697,300.00.~~$6,839,900.00.

(x) Schoolcraft College, ~~$11,800,500.00.~~$12,076,700.00.

(y) Southwestern Michigan College,

~~$6,269,000.00.~~$6,385,400.00.

(z) Washtenaw Community College,

~~$12,242,000.00.~~$12,573,900.00.

(aa) Wayne County Community College,

~~$15,798,500.00.~~$16,146,700.00.

(bb) West Shore Community College,

~~$2,298,200.00.~~$2,342,900.00.

(cc) Local strategic value, ~~$1,277,500.00.~~$877,100.00.

(3) The amount appropriated in subsection (2) for community

college operations is appropriated from the following:

(a) State school aid fund, $195,880,500.00.

(b) State general fund/general purpose money,

~~$96,516,400.00.~~$102,363,500.00.

(4) From the appropriations described in subsection (1), there

is appropriated for fiscal year ~~2012-2013~~ 2013-2014 an amount not

to exceed $1,733,600.00 for payments to community colleges from the

state school aid fund. A community college that receives money

under this subsection shall use that money solely for the purpose

of offsetting a portion of the retirement contributions owed by the

college for the fiscal year ending September 30, ~~2013.~~ 2014. ~~The~~

~~amount allocated to each community college under this subsection is~~

~~as follows:~~The amount allocated to each participating community

college under this section shall be based on each participating

college's total payroll covered by the retirement system-covered

payroll for all participating colleges for the immediately

preceding state fiscal year.

~~(a) Alpena Community College, $30,400.00.~~

~~(b) Bay de Noc Community College, $30,800.00.~~

~~(c) Delta College, $81,400.00.~~

~~(d) Glen Oaks Community College, $14,200.00.~~

~~(e) Gogebic Community College, $25,300.00.~~

~~(f) Grand Rapids Community College, $101,700.00.~~

~~(g) Henry Ford Community College, $123,000.00.~~

~~(h) Jackson Community College, $68,500.00.~~

~~(i) Kalamazoo Valley Community College, $70,400.00.~~

~~(j) Kellogg Community College, $55,300.00.~~

~~(k) Kirtland Community College, $17,500.00.~~

(l~~) Lake Michigan College, $30,200.00.~~

~~(m) Lansing Community College, $175,000.00.~~

~~(n) Macomb Community College, $186,200.00.~~

~~(o) Mid Michigan Community College, $26,100.00~~

~~(p) Monroe County Community College, $25,000.00.~~

~~(q) Montcalm Community College, $18,000.00.~~

~~(r) C.S. Mott Community College, $88,700.00.~~

~~(s) Muskegon Community College, $50,400.00.~~

~~(t) North Central Michigan College, $17,600.00.~~

~~(u) Northwestern Michigan College, $51,500.00.~~

~~(v) Oakland Community College, $118,800.00.~~

~~(w) St. Clair County Community College, $39,900.00.~~

~~(x) Schoolcraft College, $70,100.00.~~

~~(y) Southwestern Michigan College, $37,500.00.~~

~~(z) Washtenaw Community College, $72,200.00.~~

~~(aa) Wayne County Community College, $94,200.00.~~

~~(bb) West Shore Community College, $13,700.00.~~

~~(5) Notwithstanding subsections (1) and (3) of this section as~~

~~in effect for the fiscal year ending September 30, 2012, the~~

~~amounts appropriated for community colleges under subsection (2) of~~

~~this section for the fiscal year ending September 30, 2012 are~~

~~appropriated from the following funds:~~

~~(a) State school aid fund, $259,629,400.00.~~

~~(b) State general fund/general purpose money, $24,251,100.00.~~

(5) From the appropriations described in subsection (1), there

is appropriated an amount not to exceed $31,400,000.00 from the

state general fund for payments to community colleges that are

participating entities of the retirement system. All of the

following apply to the appropriations described in this subsection:

(a) The amount of a payment under this subsection shall be the

difference between the unfunded actuarial accrued liability

contribution rate as calculated under section 41 of the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1341,

and the maximum employer rate of 20.96% under section 41 of the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1341.

(b) The amount allocated to each community college under this

subsection shall be based on each community college's percentage of

the total covered payroll for all community colleges that are

participating colleges in the immediately preceding fiscal year. A

community college that receives funds under this subsection shall

use the funds solely for the purpose of retirement contributions

under subdivision (c).

subsection shall forward an amount equal to the amount allocated

under subdivision (b) to the retirement system in a form and manner

determined by the retirement system.

(6) All of the following apply to community colleges described

in section 12(3) of the Michigan renaissance zone act, MCL

125.2692:

(a) From the appropriations described in subsection (1), the

following amount is appropriated for reimbursement to community

colleges under section 12(3) of the Michigan renaissance zone act,

MCL 125.2692:

(i) If the amount of tax revenue lost by community colleges as

a result of the exemption of property under the Michigan

renaissance zone act in fiscal year 2012-2013 is $3,500,000.00 or

more, $3,500,000.00 from the state general fund.

(ii) If the amount of tax revenue lost by community colleges as

a result of the exemption of property under the Michigan

renaissance zone act in fiscal year 2012-2013 is less than

$3,500,000.00, the actual amount of tax revenue lost by the

community colleges.

(b) The amount allocated to each community college under this

subsection shall be based on that community college's proportion of

total revenue lost by community colleges in fiscal year 2012-2013

as a result of the exemption of property under the Michigan

renaissance zone act.

made to each eligible community college within 60 days after the

department of treasury certifies to the state budget director that

it has received all necessary information to properly determine the

amounts of tax revenue lost by each eligible community college in

fiscal year 2012-2013 under section 12 of the Michigan renaissance

zone act, MCL 125.2692.

(7) From the appropriations described in subsection (1), there

is appropriated $1,100,000.00 from the state general fund, for

fiscal year 2013-2014 only, to the Michigan community college

association, for the purpose of expanding the Michigan community

college virtual learning collaborative. The Michigan community

college association shall provide information on request to the

house and senate subcommittees on community colleges, the house and

senate fiscal agencies, and the state budget director on the use of

these funds until the project is completed.

(8) As used in this section:

(a) "Michigan renaissance zone act" means the Michigan

renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696.

(b) "Participating college" means a community college that is

a reporting unit of the retirement system and that reports

employees to the retirement system for the state fiscal year.

retirement system under the public school employees retirement act

of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

(d) "Retirement system" means the Michigan public school

employees' retirement system under the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

Sec. 201a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, ~~2014~~

2015 for the items listed in section 201. The fiscal year ~~2013-2014~~

2014-2015 appropriations are anticipated to be the same as those

for fiscal year ~~2012-2013,~~ 2013-2014, except that the amounts will

be adjusted for changes in caseload and related costs, federal fund

match rates, economic factors, and available revenue. These

adjustments will be determined after the January ~~2013~~ 2014

consensus revenue estimating conference.

Sec. 201b. (1) In addition to the amounts appropriated under

section 201, $12,500,000.00 is appropriated for community colleges

from state general fund/general purpose money for the fiscal year

ending September 30, 2013, for payments to community colleges that

are participating community colleges of the retirement system.

Payments made under this section shall be equal to the difference

between the unfunded actuarial accrued liability contribution rate

as calculated under section 41 of the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1341, and the maximum

employer rate of 20.96% included in section 41 of the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1341.

(2) The amount allocated to each community college under this

section shall be based on each participating community college's

total payroll covered by the retirement system in proportion to the

total covered payroll for the immediately preceding fiscal year for

all participating community colleges. A community college that

receives funds under this section shall use the funds solely for

the purpose of retirement contributions as specified in subsection

(3).

(3) Each community college that receives funds under this

section shall forward an amount equal to the amount it receives

under subsection (2) to the retirement system in the form and

manner prescribed by the retirement system.

(4) As used in this section:

(a) "Participating community college" means a community

college that is a reporting unit of the retirement system and that

reports employees to the Michigan public school employees'

retirement system for the applicable fiscal year.

(b) "Retirement board" means the board that administers the

retirement system.

employees' retirement system under the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

Sec. 206. The funds appropriated in section 201 are

appropriated for community colleges with fiscal years ending June

30, ~~2013~~ 2014 and shall be paid out of the state treasury and

distributed by the state treasurer to the respective community

colleges in 11 monthly installments on the sixteenth of each month,

or the next succeeding business day, beginning with October 16,

~~2012.~~ 2013. Each community college shall accrue its July and August

~~2013~~ 2014 payments to its institutional fiscal year ending June 30,

~~2013.~~ 2014. However, if the state budget director determines that a

community college failed to submit all verified Michigan community

colleges activities classification structure data for school year

~~2011-2012~~ 2012-2013 to the workforce development agency by November

1, ~~2012,~~ 2013, or failed to submit its longitudinal data system

data set for school year ~~2011-2012~~ 2012-2013 to the center for

educational performance and information under section 219, the

state treasurer shall withhold the monthly installments from that

community college until those data are submitted. The state budget

director shall notify the chairs of the house and senate

appropriations subcommittees on community colleges at least 10 days

before withholding funds from any community college.

Sec. 208. A community college shall not use money appropriated

in section 201 to pay for the construction or maintenance of a

self-liquidating project. A community college shall comply with

section 238 of the management and budget act, 1984 PA 431, MCL

18.1238, and with the current use and finance requirements of the

joint capital outlay subcommittee (JCOS) for any construction,

renovation, or other capital outlay projects pursuant to JCOS

policy. The appropriation in section 201 for a community college

that fails to comply with JCOS requirements shall be reduced by 1%

for each violation.

Sec. 209. (1) Within 30 days after the board of a community

college adopts its annual operating budget for the following school

fiscal year, or after the board adopts a subsequent revision to

that budget, the community college shall make all of the following

available through a link on its website homepage:

(a) The annual operating budget and subsequent budget

revisions.

(b) A link to the most recent "Activities Classification

Structure Manual for Michigan Community Colleges".

fiscal year 2013-2014 and fiscal year 2014-2015.

(d) A listing of all debt service obligations, detailed by

project, anticipated fiscal year 2013-2014 payment of each project,

and total outstanding debt.

(e) The estimated cost to the community college resulting from

the patient protection and affordable care act, Public Law 111-148,

as amended by the health care and education reconciliation act of

2010, Public Law 111-152.

(f) ~~(c)~~ Links to all of the following for the community

college:

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not limited

to, medical, dental, vision, disability, long-term care, or any

other type of benefits that would constitute health care services,

offered to any bargaining unit or employee of the community

college.

(iii) Audits and financial reports for the most recent fiscal

year for which they are available.

(iv) A copy of the board of trustees resolution regarding

compliance with best practices for the local strategic value

component described in section 230(3).

(2) For statewide consistency and public visibility, community

colleges must use the icon badge provided by the department of

technology, management, and budget consistent with the icon badge

developed by the department of education for K-12 school districts.

It must appear on the front of each community college's homepage.

The size of the icon may be reduced to 150 x 150 pixels. ~~To be in~~

~~compliance with this section, all data elements defined in this~~

~~section must be available on the college's homepage by December 31,~~

~~2012. Each community college shall notify the state budget office~~

~~when all data elements defined in this section are made available~~

~~on its website.~~

(3) The state budget director shall determine whether a

community college has complied with this section. The state budget

director may withhold a community college's monthly installments

described in section 206 until the community college complies with

this section. The state budget director shall notify the chairs of

the house and senate appropriations subcommittee on community

colleges at least 10 days before withholding funds from any

community college.

(4) Each community college shall report the following

information to the senate and house appropriations subcommittees on

community colleges, the senate and house fiscal agencies, and the

state budget office by November 15, ~~2012,~~ 2013, and post that

information on the internet website required under subsection (1):

(a) Budgeted fiscal year ~~2012-2013~~ 2013-2014 general fund

revenue from tuition and fees.

(b) Budgeted fiscal year ~~2012-2013~~ 2013-2014 general fund

revenue from state appropriations.

revenue from property taxes.

(d) Budgeted fiscal year ~~2012-2013~~ 2013-2014 total general

fund revenue.

(e) Budgeted fiscal year ~~2012-2013~~ 2013-2014 total general

fund expenditures.

Sec. 210. (1) Recognizing the critical importance of education

in strengthening Michigan's workforce, the legislature encourages

each community college to explore ways of increasing collaboration

and cooperation with 4-year universities, particularly in the areas

related to training, instruction, and program articulation.

(2) Recognizing the central role of community colleges in

responding to local employment needs and challenges, community

colleges shall develop and continue efforts to collaborate with

local employers and students to identify local employment needs and

strategies to meet them.

(3) Community colleges are encouraged to collaborate with each

other on innovations to identify and meet local employment needs.

(4) Community colleges are encouraged to work with

universities to develop equivalency standards of core college

courses and identify equivalent courses offered by postsecondary

institutions.

Sec. 210b. (1) It is the intent of the legislature that the

Michigan association of collegiate registrars and admissions

officers implement any agreement or agreements among the community

colleges and universities concerning the transferability of college

courses resulting from the recommendations of the committee created

under former section 210a.

(2) It is the intent of the legislature that the Michigan

association of collegiate registrars and admissions officers, the

Michigan community college association, and the presidents council,

state universities of Michigan shall together submit an

implementation update report to the senate and house appropriations

subcommittees on community colleges and higher education, the

senate and house fiscal agencies, and the state budget director by

March 1, 2014.

Sec. 224. ~~Upon request, a~~ A community college shall use the P-

20 longitudinal data system to inform interested Michigan high

schools of the aggregate academic status of its students for the

previous academic year, in a manner prescribed by the Michigan

community college association and in cooperation with the Michigan

association of secondary school principals. Community colleges

shall cooperate with the center for educational performance and

information to design and implement a systematic approach for

accomplishing this work.

Sec. 225. Each community college shall report to the house and

senate fiscal agencies, the state budget director, and the

workforce development agency by August 31, ~~2012,~~ 2013, the tuition

and mandatory fees paid by a full-time in-district student and a

full-time out-of-district student as established by the college

governing board for the ~~2011-2012~~ 2013-2014 academic year. This

report should also include the annual cost of attendance based on a

full-time course load of 30 credits. Each community college shall

also report any revisions to the reported ~~2011-2012~~ 2012-2013 or

2013-2014 academic year tuition and mandatory fees adopted by the

college governing board to the house and senate fiscal agencies,

the state budget director, and the workforce development agency

within 15 days of being adopted.

Sec. 229. (1) It is the intent of the legislature that each

community college that receives an appropriation in section 201

include in its admission application process a specific question as

to whether an applicant for admission is a veteran, an active

member of the military, a member of the national guard or military

reserves, or the spouse or dependent of a veteran, active member of

the military, or member of the national guard or military reserves,

in order to more quickly identify potential educational assistance

available to that applicant.

(2) It is the intent of the legislature that each public

community college that receives an appropriation in section 201

shall work with the house and senate community college

subcommittees, the Michigan community college association, and

veterans groups to review the issue of in-district tuition for

veterans of this state when determining tuition rates and fees.

(3) As used in this section, "veteran" means an honorably

discharged veteran entitled to educational assistance under the

provisions of section 5003 of the post-911 veterans educational

assistance act of 2008, 38 USC 3301 to 3324.

Sec. 229a. Included in the fiscal year ~~2012-2013~~ 2013-2014

appropriations for the department of technology, management, and

budget are appropriations to provide funding for the state share of

costs for previously constructed capital projects for community

colleges. Those appropriations for state building authority rent

represent additional state general fund support for community

colleges, and the following is an estimate of the amount of that

support to each community college:

(a) Alpena Community College, ~~$428,100.00.~~$434,500.00.

(b) Bay de Noc Community College, ~~$618,000.00.~~$644,500.00.

(d) Glen Oaks Community College, ~~$123,000.00.~~$124,900.00.

(e) Gogebic Community College, ~~$60,000.00.~~$78,100.00.

(f) Grand Rapids Community College,

~~$1,675,000.00.~~$1,700,400.00.

(g) Henry Ford Community College, ~~$1,110,000.00.~~$1,126,800.00.

(h) Jackson Community College, ~~$1,563,000.00.~~$1,809,500.00.

(i) Kalamazoo Valley Community College,

~~$1,467,000.00.~~$1,489,300.00.

(j) Kellogg Community College, ~~$520,000.00.~~$527,900.00.

(k) Kirtland Community College, ~~$363,300.00.~~$368,800.00.

(l) Lake Michigan College, ~~$340,000.00.~~$345,200.00.

(m) Lansing Community College, ~~$384,000.00.~~$617,600.00.

(n) Macomb Community College, ~~$1,313,100.00.~~$1,332,900.00.

(o) Mid Michigan Community College, ~~$915,000.00.~~$928,900.00.

(p) Monroe County Community College,

~~$1,355,000.00.~~$1,375,600.00.

(q) Montcalm Community College, ~~$756,000.00.~~$1,015,700.00.

(r) C.S. Mott Community College, ~~$1,803,000.00.~~$1,830,400.00.

(s) Muskegon Community College, ~~$198,000.00.~~$201,000.00.

(t) North Central Michigan College, $476,300.00.

(u) ~~(t)~~ Northwestern Michigan College,

~~$1,305,000.00.~~$1,324,800.00.

(v) ~~(u)~~ Oakland Community College, ~~$465,000.00.~~$472,100.00.

(w) ~~(v)~~ St. Clair County Community College,

~~$356,100.00.~~$361,400.00.

(x) ~~(w)~~ Schoolcraft College, ~~$1,546,100.00.~~$1,569,500.00.

(y) ~~(x)~~ Southwestern Michigan College,

~~$530,600.00.~~$538,600.00.

(z) ~~(y)~~ Washtenaw Community College,

~~$1,993,000.00.~~$2,023,100.00.

(aa) ~~(z)~~ Wayne County Community College,

~~$1,890,000.00.~~$1,918,700.00.

(bb) ~~(aa)~~ West Shore Community College,

~~$577,000.00.~~$585,800.00.

Sec. 229b. (1) The department of technology, management, and

budget, after consultation with the unemployment insurance agency

in the department of licensing and regulatory affairs, the

workforce development agency, and community colleges, shall prepare

a report on the feasibility of providing accurate information on

student educational outcomes in the employment market, including

all of the following information:

(a) The number of students who successfully completed a

skilled trades program and obtained an apprenticeship or job in a

field related to that skilled trades program in fiscal year 2012-

2013.

(b) The number of students described in subdivision (a) who

are veterans of the United States armed forces.

(2) By September 1, 2014, the department shall submit the

report described in subsection (1) to the senate and house

appropriations subcommittees on community colleges and the senate

and house fiscal agencies.

(3) As used in this section, "skilled trades program" means an

academic program categorized in the United States department of

education classification of instructional program codes as 01, 46,

47, 48, or 49.

Sec. 230. (1) It is the intent of the legislature that the

recommendations and performance measures developed by the

performance indicators task force formed under section 242 of 2005

PA 154 be reviewed and more fully implemented for distribution of

state funding to community colleges in future years.

(2) Any additional funding provided to community college

operations under section 201(2) in fiscal year ~~2012-2013~~ 2013-2014

that exceeds the amounts appropriated for operations in fiscal year

~~2011-2012 is allocated solely for the purpose of offsetting a~~

~~portion of the retirement contributions owed by the college for the~~

~~fiscal year ending September 30, 2013. The additional funding~~ 2012-

2013 is distributed based on the following formula:

(a) Allocated proportionate to fiscal year ~~2011-2012~~ 2012-2013

base appropriations, 50%.

(b) Based on contact hour equated students, 10%.

(d) Based on a weighted degree formula as provided for in the

2006 recommendations of the performance indicators task force,

17.5%.

(e) Based on the local strategic value component, as developed

in cooperation with the Michigan community college association and

described in subsection (3), 15%.

(3) The appropriation in section 201(2)(cc) for local

strategic value shall be allocated to each community college that

certifies to the state budget director, through a board of trustees

resolution on or before November 1, ~~2012,~~ 2013, that the college

has met 4 out of 5 best practices listed in each category described

in subsection (4). The resolution shall provide specifics as to how

the community college meets each best practice measure within each

category. One-third of funding available under the strategic value

component shall be allocated to each category described in

subsection (4). Amounts distributed under local strategic value

shall be on a proportionate basis to each college's fiscal year

~~2011-2012~~ 2012-2013 operations funding. Payments to community

colleges that qualify for local strategic value funding shall be

distributed with the November installment payment described in

section 206.

(4) For purposes of subsection (3), the following categories

of best practices reflect functional activities of community

colleges that have strategic value to the local communities and

regional economies:

(a) For Category A, economic development and business or

industry partnerships, the following:

(i) The community college has active partnerships with local

employers including hospitals and health care providers.

(ii) The community college provides customized on-site training

for area companies, employees, or both.

(iii) The community college supports entrepreneurship through a

small business assistance center or other training or consulting

activities targeted toward small businesses.

(iv) The community college supports technological advancement

through industry partnerships, incubation activities, or operation

of a Michigan technical education center or other advanced

technology center.

(v) The community college has active partnerships with local

or regional workforce and economic development agencies.

(b) For Category B, educational partnerships, the following:

(i) The community college has active partnerships with regional

high schools, intermediate school districts, and career-tech

centers to provide instruction through dual enrollment, direct

credit, middle college, or academy programs.

(ii) The community college hosts, sponsors, or participates in

enrichment programs for area K-12 students, such as college days,

summer or after-school programming, or science Olympiad.

(iii) The community college provides, supports, or participates

in programming to promote successful transitions to college for

traditional age students, including grant programs such as talent

search, upward bound, or other activities to promote college

readiness in area high schools and community centers.

(iv) The community college provides, supports, or participates

in programming to promote successful transitions to college for new

or reentering adult students, such as adult basic education, GED

preparation, GED testing, or recruiting, advising, or orientation

activities specific to adults.

(v) The community college has active partnerships with

regional 4-year colleges and universities to promote successful

transfer, such as articulation, 2+2, or reverse transfer agreements

or operation of a university center.

(i) The community college provides continuing education

programming for leisure, wellness, personal enrichment, or

professional development.

(ii) The community college operates or sponsors opportunities

for community members to engage in activities that promote leisure,

wellness, cultural or personal enrichment such as community sports

teams, theater or musical ensembles, or artist guilds.

(iii) The community college operates public facilities to

promote cultural, educational, or personal enrichment for community

members, such as libraries, computer labs, performing arts centers,

museums, art galleries, or television or radio stations.

(iv) The community college operates public facilities to

promote leisure or wellness activities for community members,

including gymnasiums, athletic fields, tennis courts, fitness

centers, hiking or biking trails, or natural areas.

(v) The community college promotes, sponsors, or hosts

community service activities for students, staff, or community

members.

Sec. 236. (1) Subject to the conditions set forth in this

article, the amounts listed in subsections (2) to ~~(7)~~ (6) are

appropriated for higher education for the fiscal year ending

September 30, ~~2013,~~ 2014, from the funds indicated in this section.

The following is a summary of the appropriations in subsections (2)

to ~~(7):~~(6):

(a) The gross appropriation is ~~$1,399,220,400.00.~~

$1,430,573,500.00. After deducting total interdepartmental grants

and intradepartmental transfers in the amount of $0.00, the

adjusted gross appropriation is

~~$1,399,220,400.00.~~$1,430,573,500.00.

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, $97,026,400.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $200,565,700.00.

(v) State general fund/general purpose money,

~~$1,101,628,300.00.~~$1,132,981,400.00.

(2) Amounts appropriated for public universities are as

follows:

(a) The appropriation for Central Michigan University is

~~$69,575,300.00, $68,108,900.00~~ $73,486,600.00, $71,352,300.00 for

operations and ~~$1,466,400.00~~ $2,134,300.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $11,284,600.00.

(ii) State general fund/general purpose money,

~~$58,290,700.00.~~$62,202,000.00.

(b) The appropriation for Eastern Michigan University is

~~$66,297,500.00, $64,619,100.00~~ $67,255,600.00, $66,466,700.00 for

operations and ~~$1,678,400.00~~ $788,900.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $10,706,400.00.

(ii) State general fund/general purpose money,

~~$55,591,100.00.~~$56,549,200.00.

~~$42,981,400.00, $41,324,300.00~~ $45,602,600.00, $44,250,700.00 for

operations and ~~$1,657,100.00~~ $1,351,900.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $6,846,800.00.

(ii) State general fund/general purpose money,

~~$36,134,600.00.~~$38,755,800.00.

(d) The appropriation for Grand Valley State University is

~~$55,097,500.00, $52,677,400.00~~ $57,765,100.00, $55,436,000.00 for

operations and ~~$2,420,100.00~~ $2,329,100.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $8,727,800.00.

(ii) State general fund/general purpose money,

~~$46,369,700.00.~~$49,037,300.00.

(e) The appropriation for Lake Superior State University is

~~$11,030,700.00, $10,789,500.00~~ $12,226,500.00, $12,046,100.00 for

operations and ~~$241,200.00~~ $180,400.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $1,787,600.00.

(ii) State general fund/general purpose money,

~~$9,243,100.00.~~$10,438,900.00.

(f) The appropriation for Michigan State University is

~~$298,733,800.00, $241,120,800.00~~ $305,775,000.00, $245,037,000.00

for operations, ~~$3,408,400.00~~ $4,449,300.00 for performance

funding, ~~and $54,204,600.00~~ $30,243,900.00 for MSU AgBioResearch,

and $26,044,800.00 for MSU extension, ~~activities,~~ appropriated from

the following:

(i) State school aid fund, $39,949,900.00.

(ii) State general fund/general purpose money,

~~$258,783,900.00.~~$265,825,100.00.

(g) The appropriation for Michigan Technological University is

~~$42,409,900.00, $40,733,600.00~~ $43,451,900.00, $42,579,100.00 for

operations and ~~$1,676,300.00~~ $872,800.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $6,748,900.00.

(ii) State general fund/general purpose money,

~~$35,661,000.00.~~$36,703,000.00.

(h) The appropriation for Northern Michigan University is

~~$40,348,800.00, $38,367,400.00~~ $41,719,800.00, $40,856,600.00 for

operations and ~~$1,981,400.00~~ $863,200.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $6,356,900.00.

(ii) State general fund/general purpose money,

~~$33,991,900.00.~~$35,362,900.00.

(i) The appropriation for Oakland University is

~~$44,033,300.00, $43,145,000.00~~ $45,634,800.00, $44,964,100.00 for

operations and ~~$888,300.00~~ $670,700.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $7,148,400.00.

(ii) State general fund/general purpose money,

~~$36,884,900.00.~~$38,486,400.00.

(j) The appropriation for Saginaw Valley State University is

~~$25,487,500.00, $23,561,500.00~~ $25,982,800.00, $25,656,700.00 for

operations and ~~$1,926,000.00~~ $326,100.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $3,903,800.00.

(ii) State general fund/general purpose money,

~~$21,583,700.00.~~$22,079,000.00.

(k) The appropriation for University of Michigan - Ann Arbor

is ~~$273,056,700.00, $268,803,300.00~~ $279,108,700.00,

$274,156,700.00 for operations and ~~$4,253,400.00~~ $4,952,000.00 for

performance funding, appropriated from the following:

(i) State school aid fund, $44,536,300.00.

(ii) State general fund/general purpose money,

~~$228,520,400.00.~~$234,572,400.00.

(l) The appropriation for University of Michigan – Dearborn is

~~$21,898,800.00, $21,016,300.00~~ $22,503,700.00, $22,237,300.00 for

operations and ~~$882,500.00~~ $266,400.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $3,482,100.00.

(ii) State general fund/general purpose money,

~~$18,416,700.00.~~$19,021,600.00.

(m) The appropriation for University of Michigan – Flint is

~~$19,103,500.00, $17,762,400.00~~ $19,928,100.00, $19,526,600.00 for

operations and ~~$1,341,100.00~~ $401,500.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $2,942,900.00.

(ii) State general fund/general purpose money,

~~$16,160,600.00.~~$16,985,200.00.

(n) The appropriation for Wayne State University is

~~$183,229,100.00, $182,036,900.00~~ $183,933,000.00, $183,398,300.00

for operations and ~~$1,192,200.00~~ $534,700.00 for performance

funding, appropriated from the following:

(i) State school aid fund, $30,160,600.00.

(ii) State general fund/general purpose money,

~~$153,068,500.00.~~$153,772,400.00.

(o) The appropriation for Western Michigan University is

~~$95,318,300.00, $93,168,300.00~~ $97,235,200.00, $95,487,500.00 for

operations and ~~$2,150,000.00~~ $1,747,700.00 for performance funding,

appropriated from the following:

(i) State school aid fund, $15,436,500.00.

(ii) State general fund/general purpose money,

~~$79,881,800.00.~~$81,798,700.00.

~~(3) In addition to the amounts described in subsection (2),~~

~~$9,054,200.00 in tuition restraint funding is appropriated for~~

~~university operations from general fund/general purpose money. The~~

~~amount allocated to each public university is determined in the~~

~~manner provided in section 265.~~

(3) ~~(4)~~ The amount appropriated for Michigan public school

employees' retirement system reimbursement is

~~$446,200.00,~~$2,446,200.00, $446,200.00 appropriated from the state

school aid fund and $2,000,000.00 appropriated from general

fund/general purpose money.

(4) ~~(5)~~ The amount appropriated for state and regional

programs is ~~$200,000.00,~~ $2,200,000.00 appropriated from general

fund/general purpose money and allocated as follows:

(a) College access program, $2,000,000,00.

(b) ~~(a)~~ Higher education database modernization and

conversion, $105,000.00.

(5) ~~(6)~~ The amount appropriated for the Martin Luther King,

Jr. - Cesar Chavez - Rosa Parks program is $2,691,500.00,

appropriated from general fund/general purpose money and allocated

as follows:

(a) Select student support services, $1,956,100.00.

(b) Michigan college/university partnership program,

$586,800.00.

$148,600.00.

(6) ~~(7)~~ Subject to subsection ~~(8),~~ (7), the amount

appropriated for grants and financial aid is ~~$98,226,400.00,~~

$101,626,400.00, allocated as follows:

(a) State competitive scholarships, $18,361,700.00.

(b) Tuition grants, $31,664,700.00.

(d) Children of veterans and officer's survivor tuition grant

programs, ~~$1,200,000.00.~~$1,400,000.00.

(e) Project GEAR-UP, $3,200,000.00.

(7) ~~(8)~~ The money appropriated in subsection ~~(7)~~ (6) for

grants and financial aid is appropriated from the following:

(a) Federal revenues under the United States department of

education, office of elementary and secondary education, GEAR-UP

program, $3,200,000.00.

(b) Federal revenues under the social security act, temporary

assistance for needy families, $93,826,400.00.

program, $100,000.00.

(d) State general fund/general purpose money,

~~$1,100,000.00.~~$4,500,000.00.

Sec. 236a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, ~~2014~~

2015 for the items listed in section 236. The fiscal year ~~2013-2014~~

2014-2015 appropriations are anticipated to be the same as those

for fiscal year ~~2012-2013,~~ 2013-2014, except that the amounts will

be adjusted for changes in caseload and related costs, federal fund

match rates, economic factors, and available revenue. These

adjustments will be determined after the January ~~2013~~ 2014

consensus revenue estimating conference.

Sec. 236b. In addition to the funds appropriated in section

236, there is appropriated for grants and financial aid in fiscal

year ~~2012-2013~~ 2013-2014 an amount not to exceed $6,000,000.00 for

federal contingency funds. These funds are not available for

expenditure until they have been transferred under section 393(2)

of the management and budget act, 1984 PA 431, MCL 18.1393, for

another purpose under this article.

Sec. 236c. In addition to the funds appropriated for fiscal

year 2013-2014 in section 236, appropriations to the department of

technology, management, and budget in the act providing general

appropriations for fiscal year 2013-2014 for state building

authority rent, totaling an estimated $125,370,600.00, provide

funding for the state share of costs for previously constructed

capital projects for state universities. These appropriations for

state building authority rent represent additional state general

fund support provided to public universities, and the following is

an estimate of the amount of that support to each university:

(a) Central Michigan University, $9,155,600.00.

(b) Eastern Michigan University, $5,234,800.00.

(d) Grand Valley State University, $4,277,000.00.

(e) Lake Superior State University, $915,600.00.

(f) Michigan State University, $16,194,400.00.

(g) Michigan Technological University, $7,692,200.00.

(h) Northern Michigan University, $8,062,600.00.

(i) Oakland University, $10,791,500.00.

(j) Saginaw Valley State University, $9,833,700.00.

(k) University of Michigan - Ann Arbor, $9,212,000.00.

(l) University of Michigan - Dearborn, $6,332,400.00.

(m) University of Michigan - Flint, $2,871,400.00.

(n) Wayne State University, $13,079,500.00.

(o) Western Michigan University, $15,357,300.00.

Sec. 241. (1) Subject to section 265a, the funds appropriated

in section 236 to public universities shall be paid out of the

state treasury and distributed by the state treasurer to the

respective institutions in 11 equal monthly installments on the

sixteenth of each month, or the next succeeding business day,

beginning with October 16, ~~2012.~~ 2013. Except for Wayne State

University, each institution shall accrue its July and August ~~2013~~

2014 payments to its institutional fiscal year ending June 30,

~~2013.~~2014.

(2) All public universities shall submit higher education

institutional data inventory (HEIDI) data and associated financial

and program information requested by and in a manner prescribed by

the state budget director. For public universities with fiscal

years ending June 30, ~~2012,~~ 2013, these data shall be submitted to

the state budget director by October 15, ~~2012.~~ 2013. Public

universities with a fiscal year ending September 30, ~~2012~~ 2013

shall submit preliminary HEIDI data by November 15, ~~2012~~ 2013 and

final data by December 15, ~~2012.~~ 2013. If a public university fails

to submit HEIDI data and associated financial aid program

information in accordance with this reporting schedule, the state

treasurer ~~shall~~ may withhold the monthly installments under

subsection (1) to the public university until those data are

submitted.

Sec. 244. A public university receiving funds in section 236

shall cooperate with all measures taken by the state to develop,

operate, and maintain the statewide P-20 ~~education~~ longitudinal

data system described in section 94a. If the state budget director

finds that a university has not complied with this section, the

state budget director is authorized to withhold the monthly

installments provided to that university under section 236 until he

or she finds the university has complied with this section.

Sec. 245. (1) Within 30 days after the board of a public

university adopts its annual operating budget for the following

school fiscal year, or after the board adopts a subsequent revision

to that budget, the public university shall make all of the

following available through a link on its website homepage: ~~in a~~

~~form and manner prescribed by the department of technology,~~

~~management, and budget:~~

(a) The annual operating budget and subsequent budget

revisions.

(b) A summary of current expenditures for the most recent

fiscal year for which they are available, expressed as pie charts

in the following 2 categories:

(i) A chart of personnel expenditures, broken into the

following subcategories:

(A) Earnings and wages.

(B) Employee benefit costs, including, but not limited to,

medical, dental, vision, life, disability, and long-term care

benefits.

(D) All other personnel costs.

(ii) A chart of all current expenditures the public university

reported as part of its higher education institutional data

inventory data under section 241(2), broken into the same

subcategories in which it reported those data.

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not limited

to, medical, dental, vision, disability, long-term care, or any

other type of benefits that would constitute health care services,

offered to any bargaining unit or employee of the public

university.

(iii) Audits and financial reports for the most recent fiscal

year for which they are available.

(iv) Campus security policies and crime statistics pursuant to

the student right-to-know and campus security act, Public Law 101-

542, 104 Stat. 2381. Information shall include all material

prepared pursuant to the public information reporting requirements

under the crime awareness and campus security act of 1990, title II

of the student right-to-know and campus security act, Public Law

101-542, 104 Stat. 2381.

(d) A list of all positions funded partially or wholly through

institutional general fund revenue that includes the position title

~~, name,~~ and annual salary or wage amount for each position.

(e) General fund revenue and expenditure projections for

fiscal year 2013-2014 and fiscal year 2014-2015.

(f) A listing of all debt service obligations, detailed by

project, anticipated fiscal year 2013-2014 payment for each

project, and total outstanding debt.

(g) The institution's policy regarding the transferability of

core college courses between community colleges and the university.

(h) A listing of all community colleges that have entered into

reverse transfer agreements with the university.

(2) A public university shall provide a dashboard or report

card demonstrating the university's performance in several "best

practice" measures. The dashboard or report card shall include at

least all of the following for the 3 most recent school years for

which the data are available:

(a) Enrollment.

(b) Student retention rate.

(d) Number of Pell grant recipients and graduating Pell grant

recipients.

(e) Geographic origination of students, categorized as in-

state, out-of-state, and international.

(f) Faculty to student ratios and total university employee to

student ratios.

(g) Teaching load by faculty classification.

(h) Graduation outcome rates, including employment and

continuing education.

(3) For statewide consistency and public visibility, public

universities must use the icon badge provided by the department of

technology, management, and budget consistent with the icon badge

developed by the department of education for K-12 school districts.

It must appear on the front of each public university's homepage.

The size of the icon may be reduced to 150 x 150 pixels. The font

size and style for this reporting must be consistent with other

documents on each university's website. ~~To be in compliance with~~

~~this section, all data elements defined in this section must be~~

~~available on the university's homepage, in a form and manner~~

~~prescribed by the department of technology, management, and budget,~~

~~by December 31, 2012.~~

(4) The state budget director shall determine whether a public

university has complied with this section. The state budget

director may withhold a public university's monthly installments

described in section 241 until the public university complies with

this section.

Sec. 246. (1) The funds appropriated in section ~~236(4)~~ 236 for

Michigan public school employees' retirement system reimbursement

shall be allocated to each participating public university under

this section based on each participating public university's total

retiree health care premiums paid for Michigan public school

employees' retirement system retirants in proportion to the total

retiree health care premiums paid for Michigan public school

employees' retirement system retirants for all participating public

universities for the immediately preceding state fiscal year.

Payments shall be made in a form and manner determined by the

office of retirement services. A public university that receives

money under this section shall use that money solely for the

purpose of offsetting a portion of the retirement contributions

owed by the university. ~~for the fiscal year ending September 30,~~

~~2013.~~

(2) As used in this section, "participating public university"

means a public university that is a reporting unit of the Michigan

public school employees' retirement system under the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to

38.1408, and that pays retiree health care premiums to the Michigan

public school employees' retirement system for the state fiscal

year.

Sec. 252. (1) The amounts appropriated in section 236 for the

state tuition grant program shall be distributed pursuant to 1966

PA 313, MCL 390.991 to 390.997a.

(2) Tuition grant awards shall be made to all eligible

Michigan residents enrolled in undergraduate degree programs who

are qualified and who apply before July 1, 2012 ~~and who are~~

~~qualified.~~for the 2012-2013 school year or July 1, 2013 for the

2013-2014 school year, as applicable.

(3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and

subject to subsection (7), the department of treasury shall

determine an actual maximum tuition grant award per student, which

shall be no less than $1,512.00, that ensures that the aggregate

payments for the tuition grant program do not exceed the

appropriation contained in section 236 for the state tuition grant

program. If the department determines that insufficient funds are

available to establish a maximum award amount equal to at least

$1,512.00, the department shall immediately report to the house and

senate appropriations subcommittees on higher education, the house

and senate fiscal agencies, and the state budget director regarding

the estimated amount of additional funds necessary to establish a

$1,512.00 maximum award amount. If the department determines that

sufficient funds are available to establish a maximum award amount

equal to at least $1,512.00, the department shall immediately

report to the house and senate appropriations subcommittees on

higher education, the house and senate fiscal agencies, and the

state budget director regarding the maximum award amount

established and the projected amount of any projected year-end

appropriation balance based on that maximum award amount. By

December 15, ~~2012,~~ and again by February 18 ~~, 2013,~~ of each fiscal

year, the department shall analyze the status of award commitments,

shall make any necessary adjustments, and shall confirm that those

award commitments will not exceed the appropriation contained in

section 236 for the tuition grant program. The determination and

actions shall be reported to the state budget director and the

house and senate fiscal agencies no later than the final day of

February of each year. If award adjustments are necessary, the

students shall be notified of the adjustment by March 4 of each

year.

(4) Any unexpended and unencumbered funds remaining on

September 30, ~~2012~~ 2013 from the amounts appropriated in section

236 for the tuition grant program for fiscal year 2012-2013 shall

not lapse on September 30, ~~2012,~~ 2013, but shall continue to be

available for expenditure for tuition grants provided in the ~~2012-~~

~~2013~~ 2013-2014 fiscal year under a work project account. The use of

these unexpended fiscal year ~~2011-2012~~ 2012-2013 funds shall

terminate at the end of the ~~2012-2013~~ 2013-2014 fiscal year. Any

unexpended and unencumbered funds remaining on September 30, 2014

from the amounts appropriated in section 236 for the tuition grant

program for fiscal year 2013-2014 shall not lapse on September 30,

2014, but shall continue to be available for expenditure for

tuition grants provided in the 2014-2015 fiscal year under a work

project account. The use of these unexpended fiscal year 2013-2014

funds shall terminate at the end of the 2014-2015 fiscal year.

(5) The department of treasury shall continue a proportional

tuition grant maximum award level for recipients enrolled less than

full-time in a given semester or term.

(6) If the department of treasury increases the maximum award

per eligible student from that provided in the previous fiscal

year, it shall not have the effect of reducing the number of

eligible students receiving awards in relation to the total number

of eligible applicants. Any increase in the maximum grant shall be

proportional for all eligible students receiving awards for that

fiscal year. ~~2012-2013.~~

(7) ~~The~~ In any fiscal year, the department of treasury shall

not award more than $3,000,000.00 in tuition grants to eligible

students enrolled in the same independent nonprofit college or

university in this state. Any decrease in the maximum grant shall

be proportional for all eligible students enrolled in that college

or university, as determined by the department.

Sec. 258. By February 15 of each year, the department of

treasury shall ~~submit~~ post to its publicly available website a

report ~~to the state budget director, the house and senate~~

~~appropriations subcommittees on higher education, and the house and~~

~~senate fiscal agencies~~ for the preceding fiscal year on all student

financial aid programs for which funds are appropriated in section

236. For each student financial aid program, the report shall

include, but is not limited to, the total number of awards paid in

the preceding fiscal year, the total dollar amount of those awards,

and the number of students receiving awards and the total amount of

those awards at each eligible postsecondary institution. To the

extent information is available, the report shall also include

information on household income and other demographic

characteristics of students receiving awards under each program and

historical information on the number of awards and total award

amounts for each program.

Sec. 259. The funds appropriated in section 236 for the

college access program shall be used for efforts to support college

access. The department of treasury shall administer these funds.

Allowable uses include the following:

(a) Michigan college access network operations, programming,

and services to local college access networks.

(b) Local college access networks, which are community-based

college access/success partnerships committed to increasing the

college participation and completion rates within geographically

defined communities through a coordinated strategy.

help students and families plan and apply for college.

(d) Public awareness and outreach campaigns to encourage low-

income and first-generation students to take necessary steps toward

college and to assist students and families in completing a timely

and accurate free application for federal student aid.

(e) Subgrants to postsecondary institutions to recruit, hire,

and train college student mentors and college advisors to assist

high school students in navigating the postsecondary planning and

enrollment process.

Sec. 262a. (1) It is the intent of the legislature that each

public university shall develop policies for reviewing required

textbook and course materials with the goal of minimizing the cost

of textbooks and course materials used at the university while

maintaining quality of education and academic freedom. These

policies should require all of the following:

(a) That faculty members submit lists of required textbooks

and course materials for university review.

(b) That faculty members consider the least costly practices

in assigning textbooks and course materials, such as adopting the

least expensive edition of a textbook available when educational

content is comparable to a more costly edition.

conflict of interest that may occur if a faculty member requires

the purchase of any textbooks or course materials he or she has

written.

(d) That the university review required textbooks and course

materials to ensure that least costly practices are being utilized,

such as adopting the least expensive edition of a textbook

available when educational content is comparable to a more costly

edition.

(2) By February 1 of each year, each public university shall

submit a report to the house and senate appropriations

subcommittees on higher education and the house and senate fiscal

agencies on the policies developed under this section.

Sec. 263. (1) Included in the appropriation in section 236 for

MSU AgBioResearch is $2,982,900.00 and included in the

appropriation in section 236 for MSU extension ~~activities~~ is

~~$5,628,100.00~~ $2,645,200.00 for project GREEEN. Project GREEEN is

intended to address critical regulatory, food safety, economic, and

environmental problems faced by this state's plant-based

agriculture, forestry, and processing industries. "GREEEN" is an

acronym for generating research and extension to meet environmental

and economic needs.

(2) The department of agriculture and rural development and

Michigan State University, in consultation with agricultural

commodity groups and other interested parties, shall develop

project GREEEN and its program priorities.

Sec. 263a. ~~(1) By January 1, 2013, the Michigan State~~

~~University college of agriculture and natural resources, MSU~~

~~extension, and MSU AgBioResearch, in partnership with the~~

~~department of agriculture and rural development and other~~

~~stakeholders, shall establish a strategic growth initiative for the~~

~~Michigan food and agriculture industry. This initiative shall~~

~~address the following goals as established at the 2011 governor's~~

~~summit for production agriculture:~~

~~(a) Increasing the sector's total economic impact from today's~~

~~$71,000,000,000.00 to $100,000,000,000.00.~~

~~(b) Doubling Michigan's agricultural exports from~~

~~$1,750,000,000.00 to $3,500,000,000.00.~~

~~(c) Increasing jobs in the food and agriculture sector by 10%.~~

~~(d) Improving access by Michigan consumers to healthy foods by~~

~~20%.~~

~~(2) The initiative described in subsection (1) shall be~~

~~patterned after Project GREEEN, shall emphasize priorities as set~~

~~by the Michigan food and agricultural industry, and shall include a~~

~~commitment to continuous communication, input, and interaction~~

~~among stakeholders in government and industry and at Michigan State~~

~~University. Similar to Project GREEEN, the initiative shall also~~

~~include a commitment to communicating results and impacts to~~

~~stakeholders and the legislature based on a mutually established~~

~~set of metrics designed to assure MSU extension and AgBioResearch~~

~~programs are contributing to the goals described in subsection~~

~~(1)(a) to (d).~~

(1) ~~(3)~~ Not later than September 30 ~~, 2013,~~ of each year,

Michigan State University shall submit a report on MSU

AgBioResearch and MSU extension to the house and senate

appropriations subcommittees on agriculture and on higher

education, the house and senate standing committees on agriculture,

the house and senate fiscal agencies, and the state budget director

for the preceding school fiscal year. ~~detailing, but not limited~~

~~to:~~

(2) The report required under subsection (1) shall include all

of the following:

(a) Total funds expended by MSU AgBioResearch and by MSU

extension service identified by state, local, private, federal, and

university fund sources.

(b) The metric goals that were used to evaluate the impacts of

programs operated by MSU extension and MSU AgBioResearch. It is the

intent of the legislature that the following metric goals will be

used to evaluate the impacts of those programs:

(i) Increasing the number of agriculture and food-related firms

collaborating with and using services of research and extension

faculty and staff by 3% per year.

(ii) Increasing the number of individuals utilizing MSU

extension's educational services by 5% per year.

(iii) Increasing external funds generated in support of research

and extension, beyond state appropriations, by 10% over the amounts

generated in the past 3 state fiscal years.

(iv) Increasing the sector's total economic impact from today's

$71,000,000,000.00 to $100,000,000,000.00.

(v) Doubling Michigan's agricultural exports from

$1,750,000,000.00 to $3,500,000,000.00.

(vi) Increasing jobs in the food and agriculture sector by 10%.

(vii) Improving access by Michigan consumers to healthy foods

by 20%.

and MSU extension with specific reference to accomplishments,

impacts, and the metrics described in subdivision (b), including a

specific accounting of Project GREEEN expenditures and the impact

of those expenditures.

Sec. 264. Included in the appropriation in section 236 for

fiscal year 2013-2014 for Michigan State University is $80,000.00

for the Michigan future farmers of America association. This

$80,000.00 allocation shall not supplant any existing support that

Michigan State University provides to the Michigan future farmers

of America association.

Sec. 265. (1) Payments ~~from the amount appropriated in~~ under

section ~~236(3)~~ 265a for ~~public university tuition restraint~~

~~incentives~~ performance funding shall only be made to a public

university that certifies to the state budget director by August

31, ~~2012~~ 2013 that its board did not adopt an increase in tuition

and fee rates for resident undergraduate students after September

1, ~~2011~~ 2012 for the ~~2011-2012~~ 2012-2013 academic year and that its

board will not adopt an increase in tuition and fee rates for

resident undergraduate students for the ~~2012-2013~~ 2013-2014

academic year that is greater than ~~4.0%.~~ 3.75%. As used in this

subsection: ~~and subsection (2):~~

(a) Subject to subdivision (c), "fee" means any board-

authorized fee that will be paid by more than 1/2 of all resident

undergraduate students at least once during their enrollment at a

public university. A university increasing a fee that applies to a

specific subset of students or courses shall provide sufficient

information to prove that the increase applied to that subset will

not cause the increase in the average amount of board-authorized

total tuition and fees paid by resident undergraduate students in

the ~~2012-2013~~ 2013-2014 academic year to exceed the limit

established in this subsection.

(b) "Tuition and fee rate" means the average of full-time

rates for all undergraduate classes, based on an average of the

rates authorized by the university board and actually charged to

students, deducting any uniformly-rebated or refunded amounts, for

the 2 semesters with the highest levels of full-time equated

resident undergraduate enrollment during the academic year.

that compels resident undergraduate students to be covered by

health insurance as a condition to enroll at the university, "fee"

includes the annual amount a student is charged for coverage by the

university-affiliated group health insurance policy if he or she

does not provide proof that he or she is otherwise covered by

health insurance. This subdivision does not apply to limited

subsets of resident undergraduate students to be covered by health

insurance for specific reasons other than general enrollment at the

university.

~~(2) For purposes of section 236(3), each public university's~~

~~allocation for tuition restraint incentive shall be determined as~~

~~follows:~~

~~(a) Calculate an adjustment for each university by subtracting~~

~~each university's reported percent change in tuition and fee rates~~

~~for academic year 2012-2013 from 4.1%. If the result of the~~

~~calculation in this subdivision is less than 0.1%, the university~~

~~is not qualified to receive an allocation under this section. All~~

~~calculations under this subdivision shall be rounded to the first~~

~~decimal place.~~

~~(b) For each qualified university, divide the university's~~

~~adjustment as calculated under subdivision (a) by the sum of all~~

~~adjustments for qualifying universities under subdivision (a) and~~

~~then multiply the resulting calculation for each university by the~~

~~total amount available for tuition restraint incentive funding,~~

~~rounded to the nearest hundred dollars.~~

(2) ~~(3)~~ The state budget director shall implement uniform

reporting requirements to ensure that a public university receiving

~~an appropriation under section 236(3)~~ a payment under section 265a

for performance funding has satisfied the tuition restraint

requirements of this section. The state budget director shall have

the sole authority to determine if a public university has met the

requirements of this section. Information reported by a public

university to the state budget director under this subsection shall

also be reported to the house and senate appropriations

subcommittees on higher education and the house and senate fiscal

agencies.

~~(4) In conjunction with the uniform reporting requirements~~

~~established under subsection (3), each public university shall also~~

~~report the following information to the house and senate~~

~~appropriations subcommittees on higher education, the house and~~

~~senate fiscal agencies, and the state budget director by August 31,~~

~~2012:~~

~~(a) Actual or estimated fiscal year 2011-2012 and budgeted~~

~~fiscal year 2012-2013 total general fund tuition and fee revenue.~~

~~(b) Actual or estimated fiscal year 2011-2012 and budgeted~~

~~fiscal year 2012-2013 total general fund revenue.~~

~~(c) Actual or estimated fiscal year 2011-2012 and budgeted~~

~~fiscal year 2012-2013 general fund expenditures for student~~

~~financial aid.~~

~~(d) Actual or estimated fiscal year 2011-2012 and budgeted~~

~~fiscal year 2012-2013 total general fund expenditures.~~

~~(e) Actual or estimated fiscal year 2011-2012 and budgeted~~

~~fiscal year 2012-2013 total fiscal year equated student enrollment.~~

Sec. 265a. (1) Appropriations to public universities in

section 236 for performance funding shall be paid only to a public

university that complies with section 265 and certifies to the

state budget director, the house and senate appropriations

subcommittees on higher education, and the house and senate fiscal

agencies by August 31, 2013 that it complies with all of the

following requirements:

(a) The university ~~certifies to the state budget director, the~~

~~house and senate appropriations subcommittees on higher education,~~

~~and the house and senate fiscal agencies by August 31, 2012, that,~~

~~by January 3, 2013, it will be participating~~ participates in

reverse transfer agreements described in section 286 with at least

3 Michigan community colleges or ~~have~~ has made a good-faith effort

to enter into reverse transfer agreements.

(b) The university ~~certifies to the state budget director, the~~

~~house and senate appropriations subcommittees on higher education,~~

~~and the house and senate fiscal agencies by August 31, 2012, that,~~

~~by January 3, 2013, it~~ does not and will not consider whether dual

enrollment credits earned by an incoming student were utilized

towards his or her high school graduation requirements when making

a determination as to whether those credits may be used by the

student toward completion of a university degree or certificate

program.

~~house and senate appropriations subcommittees on higher education,~~

~~and the house and senate fiscal agencies by August 31, 2012 that~~

~~the university~~ participates in the Michigan transfer network

created as part of the Michigan association of collegiate

registrars and admissions officers transfer agreement.

(2) Any performance funding amounts under section 236 that are

not paid to a public university because it did not comply with 1 or

more requirements under subsection (1) are unappropriated and

reappropriated for ~~tuition restraint funding described in section~~

~~265.~~performance funding to those public universities that meet the

requirements under subsection (1), distributed in proportion to

their performance funding appropriation amounts under section 236.

(3) The state budget director shall report to the house and

senate appropriations subcommittees on higher education and the

house and senate fiscal agencies by September 17, ~~2012,~~ 2013,

regarding any performance funding amounts that are not paid to a

public university because it did not comply with 1 or more

requirements under subsection (1) and any reappropriation of funds

under subsection (2).

~~(4) A university that has not implemented the policies~~

~~required under subsection (1)(a) and (b) by August 31, 2012, but~~

~~certifies that it will implement those policies by January 3, 2013,~~

~~shall recertify to the state budget director, the house and senate~~

~~appropriations subcommittees on higher education, and the house and~~

~~senate fiscal agencies by January 3, 2013, that the policies have~~

~~been fully implemented. For a university that does not recertify~~

~~that the policies have been fully implemented, the performance~~

~~funding appropriated to that university in section 236 shall be~~

~~retroactively withheld and unappropriated and reappropriated under~~

~~subsection (2).~~

(4) Performance funding amounts described in section 236 are

distributed based on the following formula:

(a) Based on weighted undergraduate completions in critical

skills areas, 22.2%.

(b) Based on research and development expenditures, for

universities classified in Carnegie classifications as

doctoral/research universities, research universities (high

research activity), or research universities (very high research

activity) only, 11.1%.

and institutional support as a percentage of core expenditures,

scored against national Carnegie classification peers and weighted

by total undergraduate fiscal year equated students, 66.7%.

(5) For purposes of determining the score of a university

under subsection (4)(c), each university is assigned 1 of the

following scores:

(a) A university classified as in the top 20%, a score of 3.

(b) A university classified as above national median, a score

of 2.

the intent of the legislature that, beginning in the 2014-2015

state fiscal year, a university classified as improving is assigned

a score of 1.

(d) A university that is not included in subdivision (a), (b),

or (c), a score of 0.

(6) For purposes of this section, "Carnegie classification"

shall mean the basic classification of the university according to

the most recent version of the Carnegie classification of

institutions of higher education, published by the Carnegie

foundation for the advancement of teaching.

Sec. 267. All public universities shall submit the amount of

tuition and fees actually charged to a full-time resident

undergraduate student for academic year ~~2012-2013~~ 2013-2014 as part

of their higher education institutional data inventory (HEIDI) data

by August 31 of each year. A public university shall report any

revisions for any semester of the reported academic year ~~2012-2013~~

2013-2014 tuition and fee charges to HEIDI within 15 days of being

adopted.

Sec. 268. (1) For the fiscal year ending September 30, ~~2013,~~

2014, it is the intent of the legislature that funds be allocated

for unfunded North American Indian tuition waiver costs incurred by

public universities under 1976 PA 174, MCL 390.1251 to 390.1253,

from the general fund.

(2) By February 15 of each year, the department of civil

rights shall annually submit to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies for the preceding fiscal

year a report on North American Indian tuition waivers that

includes, but is not limited to, all of the following information

for each postsecondary institution:

(a) The total number of waiver applications.

(b) The total number of waivers granted and the monetary value

of each waiver.

(d) The number of students who successfully complete a degree

or certificate program and the 6-year graduation rate.

Sec. 269. For fiscal year ~~2012-2013,~~ 2013-2014, from the

amount appropriated in section 236 to Central Michigan University

for operations, $29,700.00 shall be paid to Saginaw Chippewa Tribal

College for the costs of waiving tuition for North American Indians

under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 270. For fiscal year ~~2012-2013,~~ 2013-2014 from the amount

appropriated in section 236 to Lake Superior State University for

operations, $100,000.00 shall be paid to Bay Mills Community

College for the costs of waiving tuition for North American Indians

under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 272a. By February 15, 2014, each public university

receiving funds under section 236 shall submit a report to the

house and senate appropriations subcommittees on higher education,

the house and senate fiscal agencies, and the state budget director

regarding the rejection of transfer credits by the university in

the prior year. The report shall include information on the number

of credits earned by incoming students at other postsecondary

institutions, with the equivalent of a letter grade of C or higher,

that were rejected by the university for transfer, reported by both

academic program area and prior institution, along with explanatory

information regarding the rationale for the rejection of the

credits. Data may be reported on either an academic or calendar

year basis.

Sec. 273. It is the intent of the legislature that each public

university shall submit a report to the house and senate

appropriations committees, the house and senate fiscal agencies,

and the state budget director by October 15, ~~2012,~~ 2013, on the

university's efforts to accommodate the sincerely held religious

beliefs of students enrolled in accredited counseling degree

programs at the university.

Sec. 274. It is the intent of the legislature that public and

private organizations that conduct human embryonic stem cell

derivation subject to section 27 of article I of the state

constitution of 1963 will provide information to the director of

the department of community health by December 1, ~~2012~~ 2013 that

includes all of the following:

(a) Documentation that the organization conducting human

embryonic stem cell derivation is conducting its activities in

compliance with the requirements of section 27 of article I of the

state constitution of 1963 and all relevant national institutes of

health guidelines pertaining to embryonic stem cell derivation.

(b) A list of all human embryonic stem cell lines submitted by

the organization to the national institutes of health for inclusion

in the human embryonic stem cell registry before and during fiscal

year ~~2011-2012,~~ 2012-2013, and the status of each submission as

approved, pending approval, or review completed but not yet

accepted.

submitted for inclusion in the human embryonic stem cell registry,

before and during fiscal year ~~2011-2012.~~2012-2013.

Sec. 274a. (1) It is the intent of the legislature that a

public university that receives funds in section 236 not provide

health insurance or other fringe benefits for any adult coresident

of an employee of the university who is not married to or a

dependent of that employee or for any dependent of such an adult

coresident.

(2) It is the intent of the legislature that each public

university receiving funds in section 236 submit a report by

December 1, ~~2012~~ 2013 to the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the state budget director containing the number of

individuals described in subsection (1) who received health

insurance or other fringe benefits provided by the university in

fiscal year ~~2011-2012~~ 2012-2013 and the cost to the university of

providing those benefits.

Sec. 275. (1) It is the intent of the legislature that each

public university ~~receiving~~ that receives an appropriation in

section 236 do all of the following:

(a) Meet the provisions of section 5003 of the post-911

veterans educational assistance act of 2008, 38 USC 3301 to 3324,

including voluntary participation in the yellow ribbon GI education

enhancement program established in that act in 38 USC 3317. By

October 1 of each year, each public university shall report to the

house and senate appropriations subcommittees on higher education,

the house and senate fiscal agencies, and the presidents council,

state universities of Michigan on whether or not it has chosen to

participate in the yellow ribbon GI education enhancement program.

If at any time during the fiscal year a university participating in

the yellow ribbon program chooses to leave the yellow ribbon

program, it shall notify the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the presidents council, state universities of

Michigan.

(b) Establish an on-campus veterans' liaison to provide

information and assistance to all student veterans.

veterans.

(d) Include in its admission application process a specific

question as to whether an applicant for admission is a veteran, an

active member of the military, a member of the national guard or

military reserves, or the spouse or dependent of a veteran, active

member of the military, or member of the national guard or military

reserves, in order to more quickly identify potential educational

assistance available to that applicant.

(e) Consider all veterans residents of this state for

determining their tuition rates and fees.

(f) Waive enrollment fees for all veterans.

(2) As used in this section, "veteran" means an honorably

discharged veteran entitled to educational assistance under the

provisions of section 5003 of the post-911 veterans educational

assistance act of 2008, 38 USC 3301 to 3324.

Sec. 275a. Funds appropriated in section 236 shall not be used

by a public university to pay for the construction or maintenance

of a self-liquidating project. A public university shall comply

with section 238 of the management and budget act, 1984 PA 431, MCL

18.1238, and with the current use and finance requirements of the

joint capital outlay subcommittee (JCOS) for any construction,

renovation, or other capital outlay projects pursuant to JCOS

policy. The appropriation in section 236 for a public university

that fails to comply with JCOS reporting requirements shall be

reduced by 1% for each violation.

Sec. 276. (1) Included in the appropriation for fiscal year

~~2012-2013~~ 2013-2014 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

future faculty program that is intended to increase the pool of

academically or economically disadvantaged candidates pursuing

faculty teaching careers in postsecondary education. Preference may

not be given to applicants on the basis of race, color, ethnicity,

gender, or national origin. Institutions should encourage

applications from applicants who would otherwise not adequately be

represented in the graduate student and faculty populations. Each

public university shall apply the percentage change applicable to

every public university in the calculation of appropriations in

section 236 to the amount of funds allocated to the future faculty

program.

(2) The program shall be administered by each public

university in a manner prescribed by the workforce development

agency. The workforce development agency shall use a good faith

effort standard to evaluate whether a fellowship is in default.

Sec. 277. (1) Included in the appropriation for fiscal year

~~2012-2013~~ 2013-2014 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

college day program that is intended to introduce academically or

economically disadvantaged schoolchildren to the potential of a

college education. Preference may not be given to participants on

the basis of race, color, ethnicity, gender, or national origin.

Public universities should encourage participation from those who

would otherwise not adequately be represented in the student

population.

(2) Individual program plans of each public university shall

include a budget of equal contributions from this program, the

participating public university, the participating school district,

and the participating independent degree-granting college. College

day funds shall not be expended to cover indirect costs. Not more

than 20% of the university match shall be attributable to indirect

costs. Each public university shall apply the percentage change

applicable to every public university in the calculation of

appropriations in section 236 to the amount of funds allocated to

the college day program.

(3) The program described in this section shall be

administered by each public university in a manner prescribed by

the workforce development agency.

Sec. 278. (1) Included in section 236 for fiscal year ~~2012-~~

~~2013~~ 2013-2014 is funding for the Martin Luther King, Jr. - Cesar

Chavez - Rosa Parks select student support services program for

developing academically or economically disadvantaged student

retention programs for 4-year public and independent educational

institutions in this state. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

student population.

(2) An award made under this program to any 1 institution

shall not be greater than $150,000.00, and the amount awarded shall

be matched on a 70% state, 30% college or university basis.

(3) The program described in this section shall be

administered by the workforce development agency.

Sec. 279. (1) Included in section 236 for fiscal year ~~2012-~~

~~2013~~ 2013-2014 is funding for the Martin Luther King, Jr. - Cesar

Chavez - Rosa Parks college/university partnership program between

4-year public and independent colleges and universities and public

community colleges, which is intended to increase the number of

academically or economically disadvantaged students who transfer

from community colleges into baccalaureate programs. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Institutions should

encourage participation from those who would otherwise not

adequately be represented in the transfer student population.

(2) The grants shall be made under the program described in

this section to Michigan public and independent colleges and

universities. An award to any 1 institution shall not be greater

than $150,000.00, and the amount awarded shall be matched on a 70%

state, 30% college or university basis.

(3) The program described in this section shall be

administered by the workforce development agency.

Sec. 280. (1) Included in the appropriation for fiscal year

~~2012-2013~~ 2013-2014 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

visiting professors program which is intended to increase the

number of instructors in the classroom to provide role models for

academically or economically disadvantaged students. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Public universities should

encourage participation from those who would otherwise not

adequately be represented in the student population.

(2) The program described in this section shall be

administered by the workforce development agency.

Sec. 281. (1) Included in the appropriation for fiscal year

~~2012-2013~~ 2013-2014 in section 236 is funding under the Martin

Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the

Morris Hood, Jr. educator development program which is intended to

increase the number of academically or economically disadvantaged

students who enroll in and complete K-12 teacher education programs

at the baccalaureate level. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

teacher education student population.

(2) The program described in this section shall be

administered by each state-approved teacher education institution

in a manner prescribed by the workforce development agency.

(3) Approved teacher education institutions may and are

encouraged to use student support services funding in coordination

with the Morris Hood, Jr. funding to achieve the goals of the

program described in this section.

Sec. 282. Each institution receiving funds under section 278,

279, or 281 shall notify the workforce development agency by April

15, ~~2013~~ 2014 as to whether it will expend by the end of its fiscal

year the funds received under section 278, 279, or 281.

Notwithstanding the award limitations in sections 278 and 279, the

amount of funding reported as not being expended will be

reallocated to the institutions that intend to expend all funding

received under section 278, 279, or 281.

Sec. 289. (1) The auditor general shall ~~review~~ periodically

audit higher education institutional data inventory (HEIDI)

~~enrollment~~ data submitted by all public universities under section

241 and may perform audits of selected public universities if

determined necessary. The ~~review and~~ audits shall be based upon the

definitions, requirements, and uniform reporting categories

established by the state budget director in consultation with the

HEIDI advisory committee. The auditor general shall submit a report

of findings to the house and senate appropriations committees and

the state budget director no later than July 1 of each year an

audit takes place.

(2) Student credit hours reports shall not include the

following:

(a) Student credit hours generated through instructional

activity by faculty or staff in classrooms located outside

Michigan, with the exception of instructional activity related to

study-abroad programs or field programs.

(b) Student credit hours generated through distance learning

instruction for students not eligible for the public university's

in-state main campus resident tuition rate. However, in instances

where a student is enrolled in distance education and non-distance

education credit hours in a given term and the student's non-

distance education enrollment is at a campus or site located within

Michigan, student credit hours per the student's eligibility for

in-state or out-of-state tuition rates may be reported.

examination.

(d) Student credit hours generated through inmate prison

programs regardless of teaching location.

~~(e) Student credit hours generated in new degree programs~~

~~after January 1, 1975, that have not been specifically authorized~~

~~for funding by the legislature, except spin-off programs converted~~

~~from existing core programs that do all of the following:~~

(i~~) Represent new options, fields, or concentrations within~~

~~existing programs.~~

(ii~~) Are consistent with the current institutional role and~~

~~mission.~~

(~~iii~~~~) Are accommodated within the continuing funding base of the~~

~~public university.~~

(iv~~) Do not require a new degree level beyond that which the~~

~~public university is currently authorized to grant within that~~

~~discipline or field.~~

(v~~) Do not require funding from the state other than that~~

~~provided by the student credit hours generated within the program,~~

~~either before program initiation or within the first 3 years of~~

~~program operation.~~

~~(3) The auditor general shall periodically audit higher~~

~~education institutional data inventory (HEIDI) data as submitted by~~

~~the public universities under section 241 for compliance with the~~

~~definitions established by the state budget director in~~

~~consultation with the HEIDI advisory committee for the HEIDI~~

~~database.~~

(e) Student credit hours generated in new degree programs

created on or after January 1, 1975 and before January 1, 2013,

that were not specifically authorized for funding by the

legislature, except spin-off programs converted from existing core

programs, and student credit hours generated in any new degree

programs created after January 1, 2013, that are specifically

excluded from reporting by the legislature under this section.

(3) ~~(4)~~ "Distance learning instruction" as used in subsection

(2) means instruction that occurs solely in other than a

traditional classroom setting where the student and instructor are

in the same physical location and for which a student receives

course credits and is charged tuition and fees. Examples of

distance learning instruction are instruction delivered solely

through the internet, cable television, teleconference, or mail.

Sec. 290. ~~(1) For the purposes of section 289(2)(e), the~~

~~legislature authorizes the public universities to establish the~~

~~following new degree programs:~~

~~(a) Bachelor's degree programs:~~

~~Central Michigan University, Computer Engineering, B.S.~~

~~Eastern Michigan University, Interdisciplinary Environmental~~

~~Science and Society Program, B.S.~~

~~Ferris State University, Graphic Media Management, B.S.~~

~~Ferris State University, Health Care Marketing, B.S.~~

~~Ferris State University, Insurance and Risk Management, B.S.~~

~~Grand Valley State University, Religious Studies, B.A./B.S.~~

~~Michigan Technological University, Engineering Management,~~

~~B.S.~~

~~Oakland University, Biomedical Sciences, B.S.~~

~~Oakland University, Liberal Arts Major in Creative Writing,~~

~~B.A.~~

~~University of Michigan - Ann Arbor, Environmental Engineering,~~

~~B.S.E.~~

~~University of Michigan - Dearborn, Digital Forensics, B.S.~~

~~University of Michigan - Dearborn, Reading - Elementary~~

~~Certification, B.A.~~

~~Wayne State University, Instructional Technology, B.A./B.S.~~

~~Western Michigan University, Japanese, B.A.~~

~~Western Michigan University, e-Business Marketing, B.B.A.~~

~~Western Michigan University, Health Informatics and~~

~~Information Management, B.S./B.B.A.~~

~~(b) Master's degree programs:~~

~~Ferris State University, Information Security and~~

~~Intelligence, M.S.~~

~~Michigan Technological University, Integrated Geospatial~~

~~Technology, M.S.~~

~~Michigan Technological University, Medical Informatics, M.S.~~

~~Oakland University, Psychology, M.S.~~

~~University of Michigan - Ann Arbor, Entrepreneurship, Master's~~

~~University of Michigan - Ann Arbor, Joint Master's Degree and~~

~~Graduate Certificate Program in Health Informatics, Master's~~

~~University of Michigan - Ann Arbor, Master's of Engineering in~~

~~Applied Climate, Master's~~

~~University of Michigan - Ann Arbor, Master's of Medical~~

~~Science, M.M.S.~~

~~University of Michigan - Dearborn, Business Analytics with a~~

~~Major in Business Analytics, M.S.~~

~~University of Michigan - Dearborn, Supply Chain Management~~

~~with Minor in Supply Chain Management, M.S.~~

~~University of Michigan - Flint, Accounting, M.S.~~

~~University of Michigan - Flint, Master of Arts with~~

~~Certification Program, M.A.~~

~~University of Michigan - Flint, Mathematics, M.A.~~

~~(c) Doctoral degree programs:~~

~~Michigan State University, Doctor of Nursing Practice, D.N.P.~~

~~Michigan State University, Educational Leadership, Ed.D.~~

~~Michigan Technological University, Biochemistry and Molecular~~

~~Biology, Ph.D.~~

~~Northern Michigan University, Doctor of Nursing Practice,~~

~~D.N.P.~~

~~Oakland University, Early Education and Intervention, Ed.S.~~

~~Oakland University, Psychology, Ph.D.~~

~~Saginaw Valley State University, Doctor of Nursing Practice,~~

~~D.N.P.~~

~~University of Michigan - Ann Arbor, Nutritional Sciences,~~

~~Ph.D.~~

~~(2) The listing of degree programs in subsection (1) does not~~

~~constitute legislative intent to provide additional dollars for~~

~~those programs.~~

~~(3) When submitting the listing of new degree programs for~~

~~purposes of section 289(2)(e), the presidents council of state~~

~~universities shall also provide a listing of degree programs that~~

~~institutions of higher education will no longer offer in subsequent~~

~~academic years.~~By March 1 of each year, the presidents council,

state universities of Michigan shall provide a listing of new

degree programs for which enrollment information will be reported

to HEIDI under sections 241 and 289, as well as a listing of degree

programs that institutions of higher education will no longer offer

in subsequent academic years, to the house and senate

appropriations subcommittees on higher education, the house and

senate fiscal agencies, and the state budget director.

Enacting section 1. (1) In accordance with section 30 of

article I of the state constitution of 1963, total state spending

on school aid under article I of the state school aid act of 1979,

1979 PA 94, MCL 388.1601 to 388.1772, as amended by 2012 PA 201,

2012 PA 465, and this amendatory act from state sources for fiscal

year 2012-2013 is estimated at $11,211,014,200.00 and the amount of

that state spending from state sources to be paid to local units of

government for fiscal year 2012-2013 is estimated at

$11,032,518,300.00. In accordance with section 30 of article I of

the state constitution of 1963, total state spending on school aid

under article I of the state school aid act of 1979, 1979 PA 94,

MCL 388.1601 to 388.1772, as amended by this amendatory act, from

state sources for fiscal year 2013-2014 is estimated at

$11,597,382,300.00 and state appropriations for school aid to be

paid to local units of government for fiscal year 2013-2014 are

estimated at $11,437,124,700.00.

(2) In accordance with section 30 of article I of the state

constitution of 1963, total state spending on community colleges

under article II as amended by 2012 PA 201 and this amendatory act

from state sources for fiscal year 2012-2013 is estimated at

$306,630,500.00 and the amount of that state spending from state

sources to be paid to local units of government for fiscal year

2012-2013 is estimated at $306,630,500.00. In accordance with

section 30 of article IX of the state constitution of 1963, total

state spending from state sources for community colleges for fiscal

year 2013-2014 under article II is estimated at $335,977,600.00 and

the amount of that state spending from state sources to be paid to

local units of government for fiscal year 2013-2014 is estimated at

$335,977,600.00.

(3) In accordance with section 30 of article IX of the state

constitution of 1963, total state spending from state sources for

higher education for fiscal year 2013-2014 under article III is

estimated at $1,333,547,100.00 and the amount of that state

spending from state sources to be paid to local units of government

for fiscal year 2013-2014 is estimated at $0.00.

Enacting section 2. Sections 11q, 11t, 11u, 22h, 25, 25d, 32g,

32l, 93, 101a, 201b, 210a, 216, 273a, and 293a of the state school

aid act of 1979, 1979 PA 94, MCL 388.1611q, 388.1611t, 388.1611u,

388.1622h, 388.1625, 388.1625d, 388.1632g, 388.1632l, 388.1693,

388.1701a, 388.1801b, 388.1810a, 388.1816, 388.1873a, and 388.1893a

are repealed effective October 1, 2013.

Enacting section 3. (1) Except as otherwise provided in

subsection (2), this amendatory act takes effect October 1, 2013.