February 9, 2016, Introduced by Senators KNOLLENBERG, PROOS, PAVLOV, HILDENBRAND and MARLEAU and referred to the Committee on Education.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 13, 18, 19, 51a, and 58 (MCL 388.1613,
388.1618, 388.1619, 388.1651a, and 388.1658), section 13 as amended
by 2004 PA 351, section 18 as amended by 2015 PA 114, section 19 as
amended by 2014 PA 196, section 51a as amended by 2015 PA 85, and
section 58 as amended by 1997 PA 93.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 13. (1) Except as otherwise provided in this act, the
apportionments and limitations of the apportionments made under
this act shall be made on the membership and number of teachers and
other professionals approved by the superintendent employed as of
the pupil membership count day of each year and on the taxable
value and the operating millage of each district for the calendar
year. In addition, a district maintaining school during the entire
year, as provided in section 1561 of the revised school code, MCL
380.1561, shall count memberships and educational personnel
pursuant to rules promulgated by the superintendent and shall
report to the center as required by state and federal law.
(2) For the purposes of determining the number or educational
personnel as necessary under this section, the superintendent and
the center shall use data supplied by the office of retirement
services in the department of technology, management, and budget.
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 under sections 22a
and 22b or received by an intermediate district under section 81
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) A district or intermediate district shall adopt an annual
budget in a manner that complies with the uniform budgeting and
accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days
after a district board adopts its annual operating budget for the
following school fiscal year, or after a district board adopts a
subsequent revision to that budget, the district shall make all of
the following available through a link on its website homepage, or
may make the information available through a link on its
intermediate district's website homepage, 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.
(C) Retirement benefit costs.
(D) All other personnel costs.
(ii) A chart of all district expenditures, broken into the
following subcategories:
(A) Instruction.
(B) Support services.
(C) Business and administration.
(D) Operations and maintenance.
(c) Links to all of the following:
(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 employees
health benefits act, 2007 PA 106, MCL 124.75.
(v) The district's written policy governing procurement of
supplies, materials, and equipment.
(vi) The district's written policy establishing specific
categories of reimbursable expenses, as described in section
1254(2) of the revised school code, MCL 380.1254.
(vii) Either the district's accounts payable check register
for the most recent school fiscal year or a statement of the total
amount of expenses incurred by board members or employees of the
district that were reimbursed by the district for the most recent
school fiscal year.
(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.
(g) Any deficit elimination plan or enhanced deficit
elimination plan the district was required to submit under the
revised school code.
(h) Identification of all credit cards maintained by the
district as district credit cards, the identity of all individuals
authorized to use each of those credit cards, the credit limit on
each credit card, and the dollar limit, if any, for each
individual's authorized use of the credit card.
(i) Costs incurred for each instance of out-of-state travel by
the school administrator of the district that is fully or partially
paid for by the district and the details of each of those instances
of out-of-state travel, including at least identification of each
individual on the trip, destination, and purpose.
(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 purposes of determining the reasonableness of
expenditures, whether a district or intermediate district has
received the proper amount of funds under this article, 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, and at such other times as determined
by the department, at the expense of the district or intermediate
district, as applicable. The audits must be performed 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. A district or intermediate district shall retain these
records for the current fiscal year and from at least the 3
immediately preceding fiscal years.
(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%.
(c) A district's or intermediate district's annual financial
audit shall include an analysis of the financial and pupil
accounting data used as the basis for distribution of state school
aid.
(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
1 each year for reporting the prior fiscal year data:
(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 1 each fiscal 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.
(5) (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.
(6) (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.
(7) (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.
(8) (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.
(9) (10)
If a district or intermediate
district does not
comply
with subsections (4), (5), and (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),
and (6). , and (7). If
the district or intermediate district
does
not comply with subsections (4), (5), and
(6) , and (7) by the
end of the fiscal year, the district or intermediate district
forfeits the amount withheld.
(10) (11)
If a district or intermediate
district does not
comply with subsection (2), the department may withhold up to 10%
of the total 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 subsection (2). If the district
or intermediate district does not comply with subsection (2) by the
end of the fiscal year, the district or intermediate district
forfeits the amount withheld.
(11) (12)
Not later than November 1, 2015, if
a district or
intermediate district offers online learning under section 21f, the
district or intermediate district shall submit to the department a
report that details the per-pupil costs of operating the online
learning by vendor type. The report shall include at least all of
the following information concerning the operation of online
learning for the school fiscal year ending June 30, 2015:
(a) The name of the district operating the online learning and
of each district that enrolled students in the online learning.
(b) The total number of students enrolled in the online
learning and the total number of membership pupils enrolled in the
online learning.
(c) For each pupil who is enrolled in a district other than
the district offering online learning, the name of that district.
(d) The district in which the pupil was enrolled before
enrolling in the district offering online learning.
(e) The number of participating students who had previously
dropped out of school.
(f) The number of participating students who had previously
been expelled from school.
(g) 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 by vendor type. The total shall include costs
broken down by cost for content development, content licensing,
training, online instruction and instructional support, personnel,
hardware and software, payment to each online learning provider,
and other costs associated with operating online learning.
(h) The name of each online education provider contracted by
the district and the state in which each online education provider
is headquartered.
(12) (13)
Not later than March 31, 2016, the
department 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 report summarizing the per-pupil costs by
vendor type of online courses available under section 21f.
(13) (14)
As used in subsections (11) and (12), and
(13),
"vendor type" means the following:
(a) Online courses provided by the Michigan Virtual
University.
(b) Online courses provided by a school of excellence that is
a cyber school, as defined in section 551 of the revised school
code, MCL 380.551.
(c) Online courses provided by third party vendors not
affiliated with a Michigan public school.
(d) Online courses created and offered by a district or
intermediate district.
(14) (15)
An allocation to a district or
another entity under
this article is contingent upon the district's or entity's
compliance with this section.
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).
Before reporting these graduation and dropout rates, the department
shall allow a school or district to appeal the calculations. The
department shall consider and act upon the appeal within 30 days
after it is submitted and shall not report these graduation and
dropout rates until after all appeals have been considered and
decided.
(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, To obtain information related to
educational personnel as necessary for reporting required by state
and federal law, the center shall use data supplied by the office
of retirement services in the department of technology, management,
and budget.
(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 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 2016-2017, 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. 51a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $901,946,100.00 for 2014-2015 and
an
amount not to exceed $918,546,100.00
for 2015-2016 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 $370,000,000.00 each fiscal year for
2014-2015
and for 2015-2016, 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. 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 $248,100,000.00 for
2014-2015
and estimated at $251,800,000.00
for 2015-2016, 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
for 2014-2015 an amount not to exceed $1,000,000.00 and
there is allocated for 2015-2016 an amount not to exceed
$1,300,000.00 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 2014-2015 and
for 2015-2016 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
2014-2015 and for 2015-2016 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 employees'
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. For the purposes of this subdivision, the
department or the center shall only require districts and
intermediate districts to report information that is not already
available from the center's financial information database. 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.
(c) If the department determines before bookclosing for a
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. Beginning in 2015-
2016, the amount of reimbursement under this subdivision for a
fiscal year shall not exceed $2,000,000.00 for any district or
intermediate district.
(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. For the purposes of this subdivision,
the department or the center shall only require districts and
intermediate districts to report information that is not already
available from the center's financial information database.
(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 $3,400,000.00 for
2014-2015
and estimated at $3,300,000.00 for
2015-2016, 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.
(c) Pupils with an emotional impairment counted in membership
by an intermediate district and provided educational services by
the department of health and human services.
(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).
(c) 100% of the payment required under section 54.
(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.
(15) It is the intent of the legislature that, beginning in
2016-2017, a district, public school academy, or intermediate
district that fails to comply with subsection (14) or with the
requirements of federal regulations regarding the treatment of
public school academies and public school academy pupils for the
purposes of special education, 34 CFR 300.209, forfeits from its
total state aid an amount equal to 10% of its total state aid.
Sec. 58. Allocations to districts and intermediate districts
under section 51a for providing special education transportation
services shall be based on data reported by the districts and
intermediate districts for the current school year. For the
purposes of this section, the department or the center shall only
require districts and intermediate districts to report information
that is not already available from the center's financial
information database.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.