HB-4115, As Passed House, April 29, 2015

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4115

 

(as amended April 29, 2015)

 

 

 

 

 

 

 

 

 

[A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 6, 8b, 11, 11a, 11j, 11k, 11m, 15, 18, 18a,

 

20, 20d, 20f, 21f, 22a, 22b, 22c, 22d, 22g, 23a, 24, 24a, 24c, 25f,

 

26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 43, 51a, 51c, 51d,

 

53a, 54, 56, 61a, 62, 74, 81, 94, 94a, 95a, 98, 99, 99b, 99h, 101,

 

104, 104b, 104c, 107, 147, 147a, 147c, 152a, 163, 201, 201a, 206, 207a,

 

207b, 207c, 209, 210, 210b, 213, 217, 222, 225, 226, 229, 229a,

 

230, 236, 236a, 236b, 236c, 241, 244, 246, 252, 256, 258, 263,

 

263a, 264, 265, 265a, 267, 268, 269, 270, 274, 276, 277, 278, 279,

 

280, 281, 282, 283, 284, and 286 (MCL 388.1606, 388.1608b,

 

388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1615,

 

388.1618, 388.1618a, 388.1620, 388.1620d, 388.1620f, 388.1621f,

 

388.1622a, 388.1622b, 388.1622c, 388.1622d, 388.1622g, 388.1623a,

 


House Bill No. 4115 as amended April 29, 2015

388.1624, 388.1624a, 388.1624c, 388.1625f, 388.1626a, 388.1626b,

 

388.1626c, 388.1631a, 388.1631d, 388.1631f, 388.1632d, 388.1632p,

 

388.1639, 388.1639a, 388.1643, 388.1651a, 388.1651c, 388.1651d,

 

388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 388.1674,

 

388.1681, 388.1694, 388.1694a, 388.1695a, 388.1698, 388.1699,

 

388.1699b, 388.1699h, 388.1701, 388.1704, 388.1704b, 388.1704c, 388.1707,

 

388.1747, 388.1747a, 388.1747c, 388.1752a, 388.1763, 388.1801,

 

388.1801a, 388.1806, 388.1807a, 388.1807b, 388.1807c, 388.1809,

 

388.1810, 388.1810b, 388.1813, 388.1817, 388.1822, 388.1825,

 

388.1826, 388.1829, 388.1829a, 388.1830, 388.1836, 388.1836a,

 

388.1836b, 388.1836c, 388.1841, 388.1844, 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, 388.1874,

 

388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881,

 

388.1882, 388.1883, 388.1884, and 388.1886), sections 6, 8b, 11a,

 

11j, 11k, 15, 20, 20d, 20f, 21f, 22c, 22d, 22g, 24, 24a, 24c, 25f,

 

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

 

61a, 62, 74, 81, 94, 94a, 98, 99, 99h, 101, 104, 104b, 107, 147, 147a,

 

152a, 163, 201a, 206, 209, 210b, 217, 225, 229, 229a, 230, 236a,

 

236b, 236c, 241, 246, 252, 256, 263, 263a, 264, 265, 265a, 267,

 

268, 269, 270, 274, 276, 277, 278, 279, 280, 281, 282, 283, and 284

 

as amended and sections 43, 95a, 99b, 104c, 207a, 207b, and 207c as

 

added by 2014 PA 196, sections 11, 11m, 18, 22a, 22b, 51a, 51c,

 

147c, 201, and 236 as amended by 2015 PA 5, section 18a as amended

 

by 2004 PA 351, section 23a as added by 2012 PA 465, sections 210,

 

244, and 258 as amended by 2013 PA 60, and sections 213, 222, 226,

 

and 286 as amended by 2012 PA 201, and by adding sections 55, 65,


House Bill No. 4115 as amended April 29, 2015

67, 99q, 99r, 99s, 210c, 215, 260, and 274c; 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 education


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 current school year. A district's,

 

public school academy's, or intermediate district's membership

 

shall be adjusted as provided under section 25e 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, a pupil's participation, as determined by the department

 

in accordance with the pupil accounting manual, in the cyber

 

school's educational program is considered regular daily


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

 

participation, as determined by the department in accordance with

 

the pupil accounting manual, 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.


(c) A special education pupil educated by the intermediate

 

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.

 

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

 

entered school.

 

(C) Is less than 22 years of age as of September 1 of the

 

current school year.

 

(D) Is considered to be homeless under 42 USC 11302.

 

(iii) If a 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 student 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) and section 101.

 

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), required under section 101, 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) required under section 101 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), required under section 101, 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) required under section 101 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). 101.

 

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 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. The change in the

 

counting of full-time equated memberships for pupils in

 

kindergarten that took effect for 2012-2013 is not a mandate.

 

(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) required under section 101 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 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) 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.

 

(w) 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.

 

(x) 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 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.

 

(y) 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 or R 340.1862 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.

 

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

 

Labor day Day who is enrolled in an intermediate district program

 

that begins before Labor day 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.Day.

 

(aa) 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.

 

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

 

achievement system that educates a pupil who attends a United

 

States Olympic education center Education Center may count the

 

pupil in membership regardless of whether or not the pupil is a

 

resident of this state.

 

(cc) 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.

 

(dd) 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, if the special

 

membership counting provisions under this subdivision and the

 

operation of the other membership counting provisions under this

 

subsection result in a pupil being counted as more than 1.0 FTE in

 

a fiscal year, the payment made for the pupil under sections 22a

 

and 22b shall not be based on more than 1.0 FTE for that pupil, and

 

any portion of an FTE for that pupil that exceeds 1.0 shall instead

 

be paid under section 25f. 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.

 

(ee) A pupil participating in an online course under section

 

21f shall be counted in membership in the pupil's primary district,

 

as defined under section 21f.

 

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

 

section 5 of the revised school code, MCL 380.5.

 

(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.

 

(c) A pupil enrolled in a public school academy or the

 

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.

 

(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.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) 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, for the purposes

 

of this article only, a district that had at least 40,000 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, a pupil described in subsection (6)(c) to (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. 8b. (1) The department shall assign a district code to

 

each public school academy that is authorized under the revised

 

school code and is eligible to receive funding under this article

 

within 30 days after a contract is submitted to the department by

 

the authorizing body of a public school academy.

 

(2) If the department does not assign a district code to a

 

public school academy within the 30-day period described in

 

subsection (1), the district code the department shall use to make

 

payments under this article to the newly authorized public school

 

academy shall be a number that is equivalent to the sum of the last

 

district code assigned to a public school academy located in the

 

same county as the newly authorized public school academy plus 1.

 

However, if there is not an existing public school academy located


in the same county as the newly authorized public school academy,

 

then the district code the department shall use to make payments

 

under this article to the newly authorized public school academy

 

shall be a 5-digit number that has the county code in which the

 

public school academy is located as its first 2 digits, 9 as its

 

third digit, 0 as its fourth digit, and 1 as its fifth digit. If

 

the number of public school academies in a county grows to exceed

 

100, the third digit in this 5-digit number shall then be 7 for the

 

public school academies in excess of 100.

 

(3) For each school of excellence that is a cyber school and

 

is authorized under part 6e of the revised school code, MCL 380.551

 

to 380.561, by a school district, intermediate school district,

 

community college other than a federal tribally controlled

 

community college, or other authorizing body that is not empowered

 

to authorize a school of excellence to operate statewide and is

 

eligible to receive funding under this article, the department

 

shall assign a district code that includes as the first 2 digits

 

the county code in which the authorizing body is located.

 

Sec. 11. (1) For the fiscal year ending September 30, 2015,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,827,097,400.00 from the state school aid fund, the sum of

 

$18,000,000.00 from the MPSERS retirement obligation reform reserve

 

fund created under section 147b, and the sum of $33,700,000.00 from

 

the general fund. For the fiscal year ending September 30, 2016,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of


House Bill No. 4115 as amended April 29, 2015

[$12,084,799,900.00] from the state school aid fund and the sum of

 

$45,900,000.00 from the general fund. In addition, all other

 

available federal funds are appropriated for the fiscal year ending

 

September 30, 2015.2016.

 

(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.

 

(c) Money appropriated 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 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 296(3).

 

(7) For 2014-2015, 2015-2016, 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.

 

Sec. 11j. From the appropriation in section 11, there is

 

allocated an amount not to exceed $126,000,000.00 for 2014-2015

 

$143,000,000.00 for 2015-2016 for payments to the school loan bond

 

redemption fund in the department of treasury on behalf of

 

districts and intermediate districts. Notwithstanding section 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 2014-2015, 2015-2016, 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 appropriation in section 11, there is

 

allocated for 2014-2015 2015-2016 an amount not to exceed

 

$3,000,000.00 $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. 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 article if the district would otherwise

 

experience a significant hardship in satisfying its financial

 

obligations.

 

(3) If, based on an audit by the department or the

 

department's designee or because of new or updated information

 

received by the department, the department determines that the

 

amount paid to a district or intermediate district under this

 

article for the current fiscal year or a prior fiscal year was

 

incorrect, the department shall make the appropriate deduction or

 

payment in the district's or intermediate district's allocation in

 

the next apportionment after the adjustment is finalized. The

 

deduction or payment shall be calculated according to the law in

 

effect in the fiscal year in which the incorrect 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) The department may conduct audits, or may direct audits by

 

designee of the department, for the current fiscal year and the

 

immediately preceding 3 fiscal years of all records related to a

 

program for which a district or intermediate district has received

 

funds under this article.


(5) 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.

 

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

 

programs and services, there is appropriated for 2014-2015 2015-

 

2016 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 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 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, homepage, or may

 

make the information available through a link on its intermediate

 

district's website home page, 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 employee

 

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 this

 

article.

 

(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

 

15, 2014 for reporting 2013-2014 data during 2014-2015, and not

 

later than November 1 each year for reporting the prior fiscal year

 

data: for all subsequent fiscal years:

 

(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, 2014 for 2014-2015 and by November 1 for


all subsequent fiscal years, 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). However, the department shall not withhold the payment due on

 

October 20 due to the operation of this subsection. 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) If a district or intermediate district does not comply

 

with subsection (2), the department may withhold up to 10% of the

 

state school aid otherwise payable 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.

 

(12) (11) Not later than November 1, 2014, 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,

 

2014:2015:

 

(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.

 

(13) (12) Not later than March 31, 2015, 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.

 

(14) (13) As used in subsections (11) and (12), (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.

 

Sec. 18a. Grant funds awarded and allotted to a district,

 

intermediate district, or other entity, unless otherwise specified

 

in this act, article, shall be expended by the grant recipient

 

before the end of the school fiscal year immediately following the

 

fiscal year in which the funds are received. If a grant recipient

 

does not expend the funds received under this act article before


the end of the fiscal year in which the funds are received, the

 

grant recipient shall submit a report to the department not later

 

than November 1 after the fiscal year in which the funds are

 

received indicating whether it expects to expend those funds during

 

the fiscal year in which the report is submitted. 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

 

after the fiscal year in which the funds are received.

 

Sec. 20. (1) For 2014-2015, 2015-2016, both of the following

 

apply:

 

(a) The basic foundation allowance is $8,099.00.$8,236.00.

 

(b) The minimum foundation allowance is $7,126.00.$7,525.00.

 

(2) The amount of each district's foundation allowance shall

 

be calculated as provided in this section, using a basic foundation

 

allowance in the amount specified in subsection (1).

 

(3) Except as otherwise provided in this section, the amount

 

of a district's foundation allowance shall be calculated as

 

follows, using in all calculations the total amount of the

 

district's foundation allowance as calculated before any proration:

 

(a) Except as otherwise provided in this subdivision, for a

 

district that had a foundation allowance for the immediately

 

preceding state fiscal year that was equal to the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year, but less than the basic foundation allowance for the

 

immediately preceding state fiscal year, the district shall receive

 

a foundation allowance in an amount equal to the sum of the

 

district's foundation allowance for the immediately preceding state


fiscal year plus the difference between twice the dollar amount of

 

the adjustment from the immediately preceding state fiscal year to

 

the current state fiscal year made in the basic foundation

 

allowance and [(the difference between the basic foundation

 

allowance for the current state fiscal year and basic foundation

 

allowance for the immediately preceding state fiscal year minus

 

$10.00) times (the difference between the district's foundation

 

allowance for the immediately preceding state fiscal year and the

 

minimum foundation allowance for the immediately preceding state

 

fiscal year) divided by the difference between the basic foundation

 

allowance for the current state fiscal year and the minimum

 

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. For the purposes of

 

this subdivision, for 2014-2015, 2015-2016, the minimum foundation

 

allowance for the immediately preceding state fiscal year shall be

 

considered to be $7,076.00. For 2014-2015, for a district that had

 

a foundation allowance for the immediately preceding state fiscal

 

year that was at least equal to the minimum foundation allowance

 

for the immediately preceding state fiscal year 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 2013-

 

2014 plus $50.00.$7,251.00.

 

(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 equal to the amount of the basic

 

foundation allowance for the immediately preceding state fiscal

 

year, the district shall receive a foundation allowance for 2014-

 

2015 2015-2016 in an amount equal to the basic foundation allowance

 

for 2014-2015.2015-2016.

 

(c) For a district that had a foundation allowance for the

 

immediately preceding state fiscal year that was greater than the

 

basic foundation allowance for the immediately preceding state

 

fiscal year, the district's foundation allowance is an amount equal

 

to the sum of the district's foundation allowance for the

 

immediately preceding state fiscal year plus the lesser of the

 

increase in the basic foundation allowance for the current state

 

fiscal year, as compared to the immediately preceding state fiscal

 

year, or the product of the district's foundation allowance for the

 

immediately preceding state fiscal year times the percentage

 

increase in the United States consumer price index in the calendar

 

year ending in the immediately preceding fiscal year as reported by

 

the May revenue estimating conference conducted under section 367b

 

of the management and budget act, 1984 PA 431, MCL 18.1367b.

 

(d) For a district that has a foundation allowance that is not

 

a whole dollar amount, the district's foundation allowance shall be

 

rounded up to the nearest whole dollar.

 

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

 

as that section was in effect for 2013-2014, 2014-2015, the

 

district's 2013-2014 2014-2015 foundation allowance shall be

 

considered to have been an amount equal to the sum of the


district's actual 2013-2014 2014-2015 foundation allowance as

 

otherwise calculated under this section plus the per-pupil amount

 

of the district's equity payment for 2013-2014 2014-2015 under

 

section 22c as that section was in effect for 2013-2014.2014-2015.

 

(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 local portion of the district's foundation allowance

 

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 local portion of the

 

district's foundation allowance 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. For a receiving district, if school operating taxes

 

continue to be levied on behalf of a dissolved district that has

 

been attached in whole or in part to the receiving district to

 

satisfy debt obligations of the dissolved district under section 12

 

of the revised school code, MCL 380.12, the taxable value per

 

membership pupil of property in the receiving district used for the

 

purposes of this subsection does not include the taxable value of


property within the geographic area of the dissolved district.

 

(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. For pupils in membership, other than special

 

education pupils, in a public school academy that is a cyber school

 

and is authorized by a school district, 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 that authorized the public

 

school academy 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, MCL 380.1280c, 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 the 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. This

 

subsection does not apply to a receiving district unless there is a

 

subsequent consolidation or annexation that affects the district.

 

(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.

 

(c) The index shall be calculated by multiplying the pupil

 

membership factor by the revenue adjustment factor. 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) 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.

 

(13) 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.

 

(14) 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.

 

(c) "Combined state and local revenue per membership pupil"

 

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

 

the district's membership excluding special education pupils.

 

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

 

for which a particular calculation is made.

 

(e) "Dissolved district" means a district that loses its

 

organization, has its territory attached to 1 or more other

 

districts, and is dissolved as provided under section 12 of the

 

revised school code, MCL 380.12.

 

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

 

fiscal year immediately preceding the current state fiscal year.

 

(g) "Local portion of the district's foundation allowance"


means an amount that is equal to the difference between (the sum of

 

the product of the taxable value per membership pupil of all

 

property in the district that is nonexempt property times the

 

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

 

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

 

of property in the district that is commercial personal property

 

times the certified mills minus 12 mills) and (the quotient of the

 

product of the captured assessed valuation under tax increment

 

financing acts times the district's certified mills divided by the

 

district's membership excluding special education pupils).

 

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

 

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

 

380.1211. For a receiving district, if school operating taxes are

 

to be levied on behalf of a dissolved district that has been

 

attached in whole or in part to the receiving district to satisfy

 

debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, local school operating revenue

 

does not include school operating taxes levied within the

 

geographic area of the dissolved district.

 

(i) "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.

 

(j) "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 amount of


the difference between the basic foundation allowance for the

 

current state fiscal year and the basic foundation for the

 

immediately preceding state fiscal year and [(the amount of the

 

difference between the basic foundation allowance for the current

 

state fiscal year and the basic foundation for the immediately

 

preceding state fiscal year minus $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

 

minimum foundation allowance for the immediately preceding state

 

fiscal year) divided by the difference between the basic foundation

 

allowance for the current state fiscal year and the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year]. For the purposes of this subdivision, for 2014-2015, the

 

minimum foundation allowance for the immediately preceding state

 

fiscal year shall be considered to be $7,076.00. For 2014-2015, the

 

maximum public school academy allocation is $7,218.00.means the

 

minimum foundation allowance under subsection (1).

 

(k) "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.

 

(l) "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, or property occupied by

 

a public school academy.

 

(m) "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.

 

(n) "Receiving district" means a district to which all or part

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

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

 

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

 

18 and purposes authorized under section 1211 of the revised school

 

code, MCL 380.1211.

 

(p) "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.

 

(q) "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.

 

(r) "Taxable value per membership pupil" means taxable value,

 

as certified by the county treasurer and reported to the

 

department, 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 2014-2015, 2015-2016, 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 $14,000,000.00 for 2015-2016

 

for supplemental payments to districts under this section.

 

(2) From the funds appropriated in section 11, amount

 

allocated under subsection (1), there is allocated an amount not to

 

exceed $6,000,000.00 for 2014-2015 2015-2016 for payments to

 

eligible districts under this section. subsection. A district is

 

eligible for funding under this section subsection if the district

 

received a payment under this section as it was in effect for 2013-

 

2014. A district was eligible for funding in 2013-2014 if the sum

 

of the following was 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 for 2013-2014.

 

(c) The quotient of the district's allocation under section


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.

 

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

 

this section subsection (2) is an amount per membership pupil equal

 

to the amount per membership pupil the district received in 2013-

 

2014.

 

(4) (3) If the allocation under subsection (1) (2) is

 

insufficient to fully fund payments as otherwise calculated under

 

this section, subsection (3), the department shall prorate payments

 

under this section subsection (2) on an equal per-pupil basis.

 

(5) From the amount allocated under subsection (1), there is

 

allocated an amount not to exceed $8,000,000.00 for 2015-2016 for

 

payments to eligible districts under this subsection. A district is

 

eligible for funding under this subsection if the sum of the

 

following is less than $25.00:

 

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

 

per-pupil payment as calculated under section 20 from 2014-2015 to

 

2015-2016.

 

(b) The district's per-pupil allocation under section 20g for

 

2015-2016, which is $0.00, minus the district's per-pupil

 

allocation under section 20g for 2014-2015.

 

(c) The district's per-pupil allocation under section 22f for

 

2015-2016, which is $0.00, minus the district's per-pupil

 

allocation under section 22f for 2014-2015.

 

(d) The district's per-pupil allocation under section 22j for


2015-2016, which is $0.00, minus the district's per-pupil

 

allocation under section 22j for 2014-2015.

 

(e) The quotient of the district's allocation under section

 

147a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under

 

section 147a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.

 

(6) The amount allocated to each eligible district under

 

subsection (5) is an amount per membership pupil equal to $25.00

 

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 2014-2015 to

 

2015-2016.

 

(b) The district's per-pupil allocation under section 20g for

 

2015-2016, which is $0.00, minus the district's per-pupil

 

allocation under section 20g for 2014-2015.

 

(c) The district's per-pupil allocation under section 22f for

 

2015-2016, which is $0.00, minus the district's per-pupil

 

allocation under section 22f for 2014-2015.

 

(d) The district's per-pupil allocation under section 22j for

 

2015-2016, which is $0.00, minus the district's per-pupil

 

allocation under section 22j for 2014-2015.

 

(e) The quotient of the district's allocation under section

 

147a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under

 

section 147a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.


(7) If the allocation under subsection (5) is insufficient to

 

fully fund payments as otherwise calculated under subsection (6),

 

the department shall prorate payments under subsection (5) on an

 

equal per-pupil basis.

 

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

 

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

 

in this section.

 

(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. Unless the pupil is newly enrolled in the pupil's

 

primary district, the request for online course enrollment must be

 

made in the academic term, semester, trimester, or summer preceding

 

the enrollment. A district may not establish additional

 

requirements that would prohibit a pupil from taking an online

 

course. If a pupil has demonstrated previous success with online

 

courses and the school leadership and the pupil's parent or legal

 

guardian determine that it is in the best interest of the pupil, a

 

pupil may be enrolled in more than 2 online courses in a specific

 

academic term, semester, or trimester. 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 primary district's catalog of online

 

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

 

online courses maintained by the Michigan virtual university

 

Virtual University pursuant to section 98.


(4) A providing district or community college 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 providing

 

district or community college to provide the online course, the

 

providing district or community college shall accept for enrollment

 

all of the nonresident applicants eligible for acceptance. If the

 

number of nonresident applicants exceeds the providing district's

 

or community college's capacity to provide the online course, the

 

providing district or community college shall use a random draw

 

system, subject to the need to abide by state and federal

 

antidiscrimination laws and court orders.

 

(5) A pupil's primary district may deny a the 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.

 

(c) The online course is inconsistent with the remaining

 

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.

 

(f) The cost of the online course exceeds the amount

 

identified in subsection (8), (10), unless the pupil's parent or

 

legal guardian agrees to pay the cost that exceeds this amount.

 

(g) The online course enrollment request does not occur within

 

the same timelines established by the pupil's primary district for

 

enrollment and schedule changes for regular courses.

 

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

 

the pupil's primary district, the pupil may appeal the denial by

 

submitting a letter to the superintendent of the intermediate

 

district in which the pupil's educating primary district is

 

located. The letter of appeal shall include the reason provided by

 

the pupil's primary 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 pupil's primary district

 

shall allow the pupil to enroll in the online course.

 

(7) To offer or provide an online course under this section, a

 

the providing district or intermediate district shall do all of the

 

following:

 

(a) Provide the Michigan virtual university Virtual University


with the course syllabus in a form and method prescribed by the

 

Michigan virtual university Virtual University for inclusion in a

 

statewide online course catalog. The district or intermediate

 

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 or intermediate district and a link to the statewide

 

catalog of online courses maintained by the Michigan virtual

 

university.Virtual University.

 

(b) Assign to each pupil a teacher of record and provide the

 

pupil's primary district with the personal identification code for

 

the teacher of record.

 

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

 

method, or aligned to a semester, trimester, or accelerated

 

academic term format.

 

(d) (c) Not later than October 1, 2014, 2015, provide the

 

Michigan virtual university with the number of enrollments in each

 

online course the district or intermediate district offered

 

provided to pupils pursuant to this section in the immediately

 

preceding school year, and the number of enrollments in which the

 

pupil earned 60% or more of the total course points for each online

 

course.

 

(8) To provide an online course under this section, a

 

community college shall do all of the following:

 

(a) Provide the Michigan Virtual University with the course

 

syllabus in a form and method prescribed by the Michigan Virtual

 

University for inclusion in a statewide online course catalog.

 

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


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

 

format.

 

(c) Ensure that each online course it provides under this

 

section generates postsecondary credit.

 

(d) Beginning with October 1, 2016, and by October 1 of each

 

year thereafter, provide the Michigan Virtual University with the

 

number of enrollments in each online course the community college

 

provided to pupils pursuant to this section in the immediately

 

preceding school year, and the number of enrollments in which the

 

pupil earned 60% or more of the total course points for each online

 

course.

 

(e) Be taught by an instructor employed by or contracted

 

through the community college.

 

(9) For any online course a pupil enrolls in under this

 

section, the pupil's primary district must assign to the pupil a

 

mentor to monitor the pupil's progress during the online course and

 

shall supply the providing district with the mentor's contact

 

information.

 

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

 

published in the pupil's educating primary district's catalog of

 

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

 

online courses maintained by the Michigan virtual university,

 

Virtual University, the pupil's primary 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 8.33% of the minimum

 

foundation allowance for the current fiscal year as calculated

 

under section 20.

 

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

 

and access to technology in his or her primary district's school

 

facilities as all other pupils enrolled in the pupil's primary

 

district.

 

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

 

as determined by the pupil's primary district, the pupil's primary

 

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.

 

(13) (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 article.

 

(14) (12) The portion of the full-time equated pupil

 

membership for which a pupil is enrolled in 1 or more online

 

courses under this section shall not be transferred under the pupil

 

transfer process under section 25e.

 

(15) (13) As used in this section:

 

(a) "Mentor" means a professional employee of the primary

 

district who monitors the pupil's progress, ensures the pupil has

 

access to needed technology, is available for assistance, and

 

ensures access to the teacher of record. A mentor may also serve as


the teacher of record if the mentor meets the requirements under

 

subdivision (g).

 

(b) (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 Internet-connected learning

 

environment, in which pupils are separated from their teachers by

 

time or location, or both, and, for a course provided by a district

 

or intermediate district, in which a teacher who holds a valid

 

Michigan teaching certificate that qualifies the teacher to teach

 

the course is responsible for providing 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.

 

(c) (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 or intermediate

 

district and the course titles and course codes from the national

 

center for education statistics 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 or intermediate 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.Virtual University.

 

(d) (c) "Online learning pupil" means a pupil enrolled in 1 or

 

more online courses.

 

(e) (d) "Primary district" means the district that enrolls the

 

pupil and reports the pupil as a full-time equated pupil for pupil

 

membership purposes.

 

(f) "Providing district" means the district, intermediate

 

district, or community college that the primary district pays to

 

provide the online course.

 

(g) "Teacher of record" means a teacher who holds a valid

 

Michigan teaching certificate; who, where applicable, is endorsed

 

in the subject area and grade of the online course; and is

 

responsible for providing instruction, determining 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. 22a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $5,380,000,000.00 for 2014-2015

 

$5,277,000,000.00 for 2015-2016 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. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, taxable

 

value per membership pupil of all property in the receiving

 

district that is nonexempt property and taxable value per

 

membership pupil of property in the receiving district that is

 

commercial personal property do not include property within the

 

geographic area of the dissolved district; ad valorem property tax

 

revenue of the receiving district captured under tax increment

 

financing acts does not include ad valorem property tax revenue

 

captured within the geographic boundaries of the dissolved district

 

under tax increment financing acts; and certified mills do not

 

include the certified mills of the dissolved district.

 

(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. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, ad valorem

 

property tax revenue captured under tax increment financing acts do

 

not include ad valorem property tax revenue captured within the

 

geographic boundaries of the dissolved district under tax increment

 

financing acts.

 

(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) Except as otherwise provided in this subsection, 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. This subsection

 

does not apply to a receiving district unless there is a subsequent

 

consolidation or annexation that affects the district.

 

(6) Payments under this section are subject to section 25f.

 

(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.

 

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

 

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. For a receiving district,

 

if school operating taxes are to be levied on behalf of a dissolved

 

district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved

 

district under section 12 of the revised school code, MCL 380.12,

 

taxable value per membership pupil does not include the taxable

 

value of property within the geographic area of the dissolved

 

district.

 

(e) "Dissolved district" means a district that loses its

 

organization, has its territory attached to 1 or more other

 

districts, and is dissolved as provided under section 12 of the

 

revised school code, MCL 380.12.

 

(f) "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, and property occupied

 

by a public school academy 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. For a receiving district, if school operating taxes

 

are to be levied on behalf of a dissolved district that has been

 

attached in whole or in part to the receiving district to satisfy

 

debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, school operating taxes do not

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

(g) "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.

 

(h) "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.

 

(i) "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, or property occupied by

 

a public school academy.

 

(j) "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.

 

(k) "Receiving district" means a district to which all or part

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

(l) "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 as defined in

 

section 20.

 

(m) "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.

 

(n) "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, and property occupied by a public school academy

 

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, and property occupied by a public school academy

 

for the calendar year ending in the current state fiscal year. For

 

a receiving district, if school operating taxes are to be levied on

 

behalf of a dissolved district that has been attached in whole or

 

in part to the receiving district to satisfy debt obligations of

 

the dissolved district under section 12 of the revised school code,

 

MCL 380.12, mills do not include mills within the geographic area

 

of the dissolved district.

 

(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. For a receiving district, if school operating taxes are to be

 

levied on behalf of a dissolved district that has been attached in

 

whole or in part to the receiving district to satisfy debt

 

obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, school operating taxes do not

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

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

 

allocated an amount not to exceed $3,434,000,000.00 for 2014-2015

 

$3,912,400,000.00 for 2015-2016 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) 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.

 

(c) 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.

 

(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) Payments under this section are subject to section 25f.

 

Sec. 22c. From the appropriation in section 11, there is

 

allocated for 2014-2015 2015-2016 an amount not to exceed

 

$103,000,000.00 $24,000,000.00 to make equity payments to districts

 

that have a foundation allowance or per-pupil payment as calculated

 

under section 20 for 2014-2015 2015-2016 of less than $7,251.00.

 

$7,550.00. The equity payment for a district shall be an amount per

 

membership pupil equal to the lesser of $125.00 $25.00 or the

 

difference between $7,251.00 $7,550.00 and the district's 2014-2015

 

2015-2016 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 $2,584,600.00 is allocated for 2014-2015 2015-2016

 

for supplemental payments to rural districts under this section.

 

(2) From the allocation under subsection (1), there is


allocated for 2014-2015 2015-2016 an amount not to exceed

 

$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.

 

(c) Each school building operated by the district meets at

 

least 1 of the following:

 

(i) Is located in the Upper Peninsula at least 30 miles from

 

any other public school building.

 

(ii) Is located on an island that is not accessible by bridge.

 

(3) The amount of the additional funding to each eligible

 

district under 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 for 2014-2015 2015-2016 an

 

amount not to exceed $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. 22g. (1) From the funds appropriated in section 11, there

 

is allocated for 2014-2015 2015-2016 only an amount not to exceed

 

$2,000,000.00 $5,000,000.00 for competitive assistance grants to

 

districts and intermediate districts.

 

(2) Funds received under this section may be used for

 

reimbursement of transition costs associated with the consolidation

 

or annexation of operations or services between 2 or more districts

 

, or intermediate districts. , or other local units of government,

 

the consolidation or sharing of technology and data operations or

 

services between 50 or more districts or 5 or more intermediate

 

districts, or the consolidation of districts or intermediate

 

districts. Grant funding shall be available for consolidations or

 

annexations that occur on or after June 1, 2014. The department


shall develop an application process and method of grant

 

distribution. The department shall give priority to applicants that

 

propose including at least 1 of the following statewide activities:

 

2015. Districts may spend funds allocated under this section over 3

 

fiscal years.

 

(a) A comprehensive, research-based academic early warning

 

indicator and dropout prevention solution.

 

(b) A data-driven system for identifying early reading

 

challenges and establishing individual reading development plans

 

for every student by the end of grade 3.

 

Sec. 23a. (1) A dropout recovery program operated by a

 

district qualifies for the special membership counting provisions

 

of section 6(4)(ff) 6(4)(dd) and the hours and day of pupil

 

instruction exemption under section 101(12) if the dropout recovery

 

program meets all of the following:

 

(a) Enrolls only eligible pupils.

 

(b) Provides an advocate. An advocate may serve in that role

 

for more than 1 pupil but no more than 50 pupils. An advocate may

 

be employed by the district or may be provided by an education

 

management organization that is partnering with the district.

 

Before an individual is assigned to be an advocate for a pupil in

 

the dropout recovery program, the district shall comply with

 

sections 1230 and 1230a of the revised school code, MCL 380.1230

 

and 380.1230a, with respect to that individual.

 

(c) Develops a written learning plan.

 

(d) Monitors the pupil's progress against the written learning

 

plan.


(e) Requires each pupil to make satisfactory monthly progress,

 

as defined by the district under subsection (2).

 

(f) Reports the pupil's progress results to the partner

 

district at least monthly.

 

(g) The program may be operated on or off a district school

 

campus, but may be operated using distance learning online only if

 

the program provides a computer and internet access for each

 

eligible pupil participating in the program.

 

(h) Is operated throughout the entire calendar year.

 

(i) If the district partners with an education management

 

organization for the program, the education management organization

 

has a dropout recovery program partnership relationship with at

 

least 1 other district.

 

(2) A district operating a dropout recovery program under this

 

section shall adopt a definition of satisfactory monthly progress

 

that is consistent with the definition of that term under

 

subsection (3).

 

(3) As used in this section:

 

(a) "Advocate" means an adult available to meet in person with

 

assigned pupils, as needed, to conduct social interventions, to

 

proctor final examinations, and to provide academic and social

 

support to pupils enrolled in the district's dropout recovery

 

program.

 

(b) "Education management organization" means a private

 

provider that operates 1 or more other dropout recovery programs

 

that meet the requirements of this section in partnership with 1 or

 

more districts.


(c) "Eligible pupil" means a pupil who has been expelled from

 

school under the mandatory expulsion provisions in section 1311 or

 

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

 

pupil who has been suspended or expelled from school under a local

 

policy, a pupil who is referred by a court, a pupil who is pregnant

 

or is a parent, a pupil who was previously a dropout, or a pupil

 

who is determined by the district to be at risk of dropping out.

 

(d) "Satisfactory monthly progress" means an amount of

 

progress that is measurable on a monthly basis and that, if

 

continued for a full 12 months, would result in the same amount of

 

academic credit being awarded to the pupil as would be awarded to a

 

general education pupil completing a full school year. Satisfactory

 

monthly progress may include a lesser required amount of progress

 

for the first 2 months a pupil participates in the program.

 

(e) "Written learning plan" means a written plan developed in

 

conjunction with the advocate that includes the plan start and end

 

dates, courses to be taken, credit to be earned for each course,

 

teacher of record for each course, and advocate name and contact

 

information.

 

Sec. 24. (1) From the appropriation in section 11, there is

 

allocated for 2014-2015 2015-2016 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 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 $2,195,500.00 for 2014-2015

 

$2,189,800.00 for 2015-2016 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 2014-2015

 

$1,497,400.00 for 2015-2016 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 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. 25f. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $2,000,000.00 for 2014-2015 $1,000,000.00 for 2015-2016 for

 

payments to strict discipline academies established under sections

 

1311b to 1311m of the revised school code, MCL 380.1311b to

 

380.1311m, as provided under this section and for the purposes

 

described in subsection (5).(2).


(2) In order to receive funding under this section, a strict

 

discipline academy shall first comply with section 25e and use the

 

pupil transfer process under that section for changes in enrollment

 

as prescribed under that section.

 

(3) Not later than June 30, 2015, a strict discipline academy

 

shall report to the center and to the department, in a manner

 

prescribed by the center and the department, the following

 

information for 2014-2015:

 

(a) The number of pupils enrolled and in attendance at the

 

strict discipline academy.

 

(b) The number of days each pupil enrolled was in attendance

 

at the strict discipline academy, not to exceed 180.

 

(4) The amount of the payment to a strict discipline academy

 

under this section shall be an amount equal to the difference

 

between the product of 1/180 of the per-pupil payment as calculated

 

under section 20 for the strict discipline academy multiplied by

 

the number of days of pupil attendance reported under subsection

 

(3)(b) minus the product of the per-pupil payment as calculated

 

under section 20 for the strict discipline academy multiplied by

 

the pupils in membership at the strict discipline academy as

 

calculated under section 6 and as adjusted by section 25e.

 

(2) (5) If the operation of the special membership counting

 

provisions under section 6(4)(dd) and the other membership counting

 

provisions under section 6(4) result in a pupil being counted as

 

more than 1.0 FTE in a fiscal year, then the payment made for the

 

pupil under sections 22a and 22b shall not be based on more than

 

1.0 FTE for that pupil, and that portion of the FTE that exceeds


1.0 shall be paid under this section in an amount equal to that

 

portion multiplied by the educating district's foundation allowance

 

or per-pupil payment calculated under section 20.

 

(3) (6) If the funds allocated under this section are

 

insufficient to fully fund the adjustments under subsections (4)

 

and (5), subsection (2), payments under this section shall be

 

prorated on an equal per-pupil basis.

 

(4) (7) Payments to districts under this section shall be made

 

according to the payment schedule under section 17b.

 

Sec. 26a. From the funds appropriated in section 11, there is

 

allocated an amount not to exceed $26,300,000.00 for 2014-2015

 

2015-2016 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 2014. 2015. 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 2014-2015 2015-2016 an amount not to exceed

 

$4,210,000.00 $4,276,800.00 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 $293,100.00 for 2014-2015

 

$610,000.00 for 2015-2016 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


House Bill No. 4115 as amended April 28, 2015

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 2014-2015 2015-

 

2016 an amount not to exceed $317,695,500.00 for payments to

 

eligible districts, eligible public school academies, and the

 

education achievement system for the purposes of ensuring that

 

pupils are proficient in reading by the end of grade 3 and that

 

high school graduates are career and college ready and for the

 

purposes under subsections (6) and (7).(5) and (6).

 

(2) [For If the total amount allocated under subsection (1) is less

than $347,695,500.00, then for] a district or public school academy, or the education

 

achievement system, to be eligible to receive funding under this

 

section, other than funding under subsection (6) or (7), (5) or

 

(6), 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, must be less than or equal to the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

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

 

achievement system, to be eligible to receive funding under this

 

section, other than funding under subsection (5) or (6), the

 

district or public school academy, or the education achievement

 

system, must implement a multi-tiered system of supports that is an

 

evidence-based model that uses data-driven problem solving to

 

integrate academic and behavioral instruction and that uses


House Bill No. 4115 as amended April 29, 2015

intervention delivered to all pupils in varying intensities based

 

on pupil needs. To qualify a district or public school academy, or

 

the education achievement system, for funding under this section, a

 

multi-tiered system of supports must provide at least all of the

 

following essential elements:

 

(a) Implements effective instruction for all learners.

 

(b) Intervenes early.

 

(c) Provides a multi-tiered model of instruction and

 

intervention that provides the following:

 

(i) A core curriculum and classroom interventions available to

 

all pupils that meet the needs of [most ] pupils.

 

(ii) Targeted group interventions[.

 

]

 

(iii) Intense individual interventions[.

 

]

 

(d) Monitors pupil progress to inform instruction.

 

(e) Uses data to make instructional decisions.

 

(f) Uses assessments including universal screening,

 

diagnostics, and progress monitoring.

 

(g) Engages families and the community.

 

(h) Implements evidence-based, scientifically validated,

 

instruction and intervention.

 

(i) Implements instruction and intervention practices with

 

fidelity.

 

(j) Uses a collaborative problem-solving model.

 

(4) (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, 42 USC 1751 to

 

1769, and as reported to the department in the form and manner

 

prescribed by 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. However, 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, mental health, or

 

counseling services, for at-risk pupils; for school health clinics;

 

and for the purposes of subsection (5), (6), (7), or (10). 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 (3), 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. 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.

 

(5) 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.

 

(5) (6) From the funds allocated under subsection (1), there

 

is allocated for 2014-2015 2015-2016 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.

 

(6) (7) From the funds allocated under subsection (1), there

 

is allocated for 2014-2015 2015-2016 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 a brief description of

 

each program conducted or services performed 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 or services, the total number

 

of at-risk pupils served by each of those programs or services, and

 

the data necessary for the department and the department of human


services to verify matching funds for the temporary assistance for

 

needy families program. 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), and (7), a district may

 

use up to 100% of the funds it receives under this section to

 

implement schoolwide reform in schools with 40% or more of their

 

pupils identified as at-risk pupils by providing supplemental

 

instructional or noninstructional services consistent with the

 

school improvement plan.

 

(7) (11) If necessary, and before any proration required under

 

section 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 (3).

 

(8) (12) If a district is formed by consolidation after June

 

1, 1995, and if 1 or more of the original districts was were 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. In addition, if a district is dissolved

 

pursuant to section 12 of the revised school code, MCL 380.12, the

 

intermediate district to which the dissolved school district was

 

constituent shall determine the estimated number of pupils that

 

meet the income eligibility criteria for free breakfast, lunch, or

 

milk, as described under subsection (3), enrolled in each of the

 

other districts within the intermediate district and provide that

 

estimate to the department for the purposes of distributing funds

 

under this section within 60 days after the school district is

 

declared dissolved.

 

(13) As used in this section, "at-risk pupil" means a pupil

 

for whom the district has documentation that the pupil meets any of

 

the following criteria:


(a) Is a victim of child abuse or neglect.

 

(b) Is a pregnant teenager or teenage parent.

 

(c) Has a family history of school failure, incarceration, or

 

substance abuse.

 

(d) For pupils for whom the results of the Michigan merit

 

examination have been received, is a pupil who does not meet the

 

other criteria under this subsection but who did not achieve

 

proficiency on the reading, writing, mathematics, science, or

 

social studies components of the most recent Michigan merit

 

examination for which results for the pupil have been received.

 

(e) For pupils in grades K-3, is a pupil who is at risk of not

 

meeting the district's core academic curricular objectives in

 

English language arts or mathematics.

 

(f) The pupil is enrolled in a priority or priority-successor

 

school, as defined in the elementary and secondary education act of

 

2001 flexibility waiver approved by the United States department of

 

education.

 

(g) The pupil did not achieve a score of at least proficient

 

on 2 or more state-administered assessments for English language

 

arts, mathematics, science, or social studies.

 

(h) For high school pupils in grades not assessed by the

 

state, the pupil did not receive a satisfactory score on 2 or more

 

end-of-course examinations that are aligned with state standards in

 

English language arts, mathematics, science, or social studies. For

 

middle school pupils in grades not assessed by the state, the pupil

 

did not receive a satisfactory score on 2 or more end-of-semester

 

or end-of-trimester examinations that are aligned with state


standards in science or social studies. For pupils in the

 

elementary grades in grades and subjects not assessed by the state,

 

the pupil did not receive a satisfactory score or did not have a

 

satisfactory outcome on 2 or more interim assessments in English

 

language arts, mathematics, science, or social studies.

 

(i) In the absence of state or local assessment data, the

 

pupil meets at least 2 of the following criteria, as documented in

 

a form and manner approved by the department:

 

(i) The pupil is eligible for free breakfast, lunch, or milk.

 

(ii) The pupil is absent more than 10% of enrolled days or 10

 

school days during the school year.

 

(iii) The pupil is homeless.

 

(iv) The pupil is a migrant.

 

(v) The pupil is an English language learner.

 

(vi) The pupil is an immigrant who has immigrated within the

 

immediately preceding 3 years.

 

(vii) The pupil did not complete high school in 4 years and is

 

still continuing in school as identified in the Michigan cohort

 

graduation and dropout report.

 

(14) Beginning in 2014-2015, if a district, public school

 

academy, or the education achievement system does not demonstrate

 

to the satisfaction of the department that at least 50% of at-risk

 

pupils are reading at grade level by the end of grade 3 as measured

 

by the state assessment and demonstrate to the satisfaction of the

 

department improvement over 3 consecutive years in the percentage

 

of at-risk pupils that are career- and college-ready as measured by

 

the pupil's score on each of the individual subject areas on the


college entrance examination portion of the Michigan merit

 

examination under section 1279g(2)(a) of the revised school code,

 

MCL 380.1279g, the district, public school academy, or education

 

achievement system shall ensure all of the following:

 

(a) The district, public school academy, or the education

 

achievement system shall determine the proportion of total at-risk

 

pupils that represents the number of pupils in grade 3 that are not

 

reading at grade level by the end of grade 3, and the district,

 

public school academy, or the education achievement system shall

 

expend that same proportion multiplied by 1/2 of its total at-risk

 

funds under this section on tutoring and other methods of improving

 

grade 3 reading levels.

 

(b) The district, public school academy, or the education

 

achievement system shall determine the proportion of total at-risk

 

pupils that represent the number of pupils in grade 11 that are not

 

career- and college-ready as measured by the student's score on

 

each of the individual subject areas on the college entrance

 

examination portion of the Michigan merit examination under section

 

1279g(2)(a) of the revised school code, MCL 380.1279g, and the

 

district, public school academy, or the education achievement

 

system shall expend that same proportion multiplied by 1/2 of its

 

total at-risk funds under this section on tutoring and other

 

activities to improve scores on the college entrance examination

 

portion of the Michigan merit examination.

 

(15) As used in subsection (14), "total at risk pupils" means

 

the sum of the number of pupils in grade 3 that are not reading at

 

grade level by the end of third grade and the number of pupils in


grade 11 that are not career- and college-ready as measured by the

 

student's score on each of the individual subject areas on the

 

college entrance examination portion of the Michigan merit

 

examination under section 1279g(2)(a) of the revised school code,

 

MCL 380.1279g.

 

(16) 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 2014-2015

 

2015-2016 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 2014-2015 2015-2016 all available federal funding,

 

estimated at $510,000,000.00 for the national school lunch program

 

and all available federal funding, estimated at $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 $5,625,000.00 for 2014-2015 2015-

 

2016 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 $214,275,000.00 for 2014-2015. In addition, from the

 

funds appropriated in section 11, there is allocated to the great

 

start readiness reserve fund created under subsection (19) an

 

amount not to exceed $25,000,000.00 for 2014-2015. $239,275,000.00

 

for 2015-2016. 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 improve the readiness and subsequent


achievement of educationally disadvantaged children who meet the

 

participant eligibility and prioritization guidelines as defined by

 

the department. 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.

 

(2) Funds allocated under 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. In order to be eligible to receive funds allocated under

 

this subsection from an intermediate district or consortium of

 

intermediate districts, a district, 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.

 

(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 2014-2015 2015-

 

2016 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 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.

 

(c) Nutritional services for all program participants

 

supported by federal, state, and local resources as applicable.

 

(d) Physical and dental health and developmental screening

 

services for all program participants.

 

(e) Referral services for families of program participants to

 

community social service agencies, including mental health

 

services, 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 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 and make recommendations

 

regarding the program components listed in this subsection. The


advisory committee also shall make recommendations to the great

 

start collaborative regarding other community services designed to

 

improve all children's school readiness.

 

(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) Except as otherwise provided in this subdivision, ensure

 

that at least 90% of the children participating in an eligible

 

great start readiness program for whom the intermediate district is

 

receiving funds under this section are children who live with

 

families with a household income that is equal to or less than 250%

 

of the federal poverty level. If the intermediate district

 

determines that all eligible children are being served and that

 

there are no children on the waiting list under section 39(1)(d)

 

who live with families with a household income that is equal to or

 

less than 250% of the federal poverty level, the intermediate

 

district may then enroll children who live with families with a

 

household income that is equal to or less than 300% of the federal

 

poverty level. The enrollment process shall consider income and

 

risk factors, such that children determined with higher need are

 

enrolled before children with lesser need. For purposes of this


subdivision, all age-eligible children served in foster care or who

 

are experiencing homelessness or who have individualized education

 

plans recommending placement in an inclusive preschool setting

 

shall be considered to live with families with household income

 

equal to or less than 250% of the federal poverty level regardless

 

of actual family income.

 

(c) Ensure that the applicant only uses qualified personnel

 

for this program, as follows:

 

(i) Teachers possessing proper training. A lead teacher must

 

have a valid teaching certificate with an early childhood (ZA or

 

ZS) endorsement or a bachelor's degree in child development or

 

early 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 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) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall designate an

 

early childhood coordinator, and may provide services directly or

 

may contract with 1 or more districts or public or private for-

 

profit or nonprofit providers that meet all requirements of

 

subsection (4).

 

(9) Funds received under this section may be retained for

 

administrative services as follows:

 

(a) For the portion of the total grant amount for which

 

services are provided directly by an intermediate district or

 

consortium of intermediate districts, the intermediate district or

 

consortium of intermediate districts may retain an amount equal to

 

not more than 7% of that portion of the grant amount.

 

(b) For the portion of the total grant amount for which

 

services are contracted, the intermediate district or consortium of

 

intermediate districts receiving the grant may retain an amount

 

equal to not more than 2% 5% of that portion of the grant amount

 

and the subrecipients engaged by the intermediate district to

 

provide program services may retain for administrative services an

 

amount equal to not more than 5% 2% of that portion of the grant

 

amount.


(10) An intermediate district or consortium of intermediate

 

districts may expend not more than 2% of the total grant amount for

 

outreach, recruiting, and public awareness of the program.

 

(11) 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. If

 

the grant recipient determines that all eligible children are being

 

served and that there are no children on the waiting list under

 

section 39(1)(d) who live with families with a household income

 

that is equal to or less than 250% of the federal poverty level,

 

the grant recipient may then enroll children who live with families

 

with a household income that is equal to or less than 300% of the

 

federal poverty level. The enrollment process shall consider income

 

and risk factors, such that children determined with higher need

 

are enrolled before children with lesser need. For purposes of this

 

subdivision, all age-eligible children served in foster care or who

 

are experiencing homelessness or who have individualized education

 

plans recommending placement in an inclusive preschool setting

 

shall be considered to live with families with household income

 

equal to or less than 250% of the federal poverty level regardless

 

of actual family income.


(12) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall allow parents

 

of eligible children who are residents of the intermediate district

 

or within the consortium to choose a program operated by or

 

contracted with another intermediate district or consortium of

 

intermediate districts and shall pay to the educating intermediate

 

district or consortium the per-child amount attributable to each

 

child enrolled pursuant to this sentence, as determined under

 

section 39.

 

(13) 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. The intermediate district or consortium

 

shall report to the department, in a manner prescribed by the

 

department, a detailed list of community-based providers by

 

provider type, including private for-profit, private nonprofit,

 

community college or university, head start grantee or delegate,

 

and district or intermediate district, and the number and

 

proportion of its total slot allocation allocated to each provider

 

as subrecipient. 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. To be able to use this exemption, the intermediate

 

district or consortium shall demonstrate to the department that the

 

intermediate district or consortium increased the percentage of its

 

total slot allocation for which it contracts with a community-based

 

provider and the intermediate district or consortium shall submit

 

evidence satisfactory to the department, and the department must be

 

able to verify this evidence, demonstrating that the intermediate

 

district or consortium took measures to contract for at least 30%

 

of its total slot allocation as required under this subsection,

 

including, but not limited to, at least all of the following

 

measures:

 

(a) The intermediate district or consortium notified each

 

licensed child care center located in the service area of the

 

intermediate district or consortium at least twice regarding the

 

center's eligibility to participate. One of these notifications may

 

be made electronically, but at least 1 of these notifications shall

 

be made via hard copy through the United States mail. At least 1 of

 

these notifications shall be made within 7 days after the

 

intermediate district or consortium receives notice from the

 

department of its slot allocations.

 

(b) The intermediate district or consortium provided to each

 

licensed child care center located in the service area of the

 

intermediate district or consortium information regarding great

 

start readiness program requirements and a description of the

 

application and selection process for community-based providers.

 

(c) The intermediate district or consortium provided to the


public and to participating families a list of community-based

 

great start readiness program subrecipients with a great start to

 

quality rating of at least 3 stars.

 

(14) If an intermediate district or consortium of intermediate

 

districts receiving a grant under this section fails to submit

 

satisfactory evidence to demonstrate its effort to contract for at

 

least 30% of its total slot allocation, as required under

 

subsection (1), the department shall reduce the slots allocated to

 

the intermediate district or consortium by a percentage equal to

 

the difference between the percentage of an intermediate district's

 

or consortium's total slot allocation awarded to community-based

 

providers and 30% of its total slot allocation.

 

(15) In order to assist intermediate districts and consortia

 

in complying with the requirement to contract with community-based

 

providers for at least 30% of their total slot allocation, the

 

department shall do all of the following:

 

(a) Ensure that a great start resource center or the

 

department provides each intermediate district or consortium

 

receiving a grant under this section with the contact information

 

for each licensed child care center located in the service area of

 

the intermediate district or consortium by March 1 of each year.

 

(b) Provide, or ensure that an organization with which the

 

department contracts provides, a community-based provider with a

 

validated great start to quality rating within 90 days of the

 

provider's having submitted a request and self-assessment.

 

(c) Ensure that all intermediate district, district, community

 

college or university, head start grantee or delegate, private for-


profit, and private nonprofit providers are subject to a single

 

great start to quality rating system. The rating system shall

 

ensure that regulators process all prospective providers at the

 

same pace on a first-come, first-served basis and shall not allow 1

 

type of provider to receive a great start to quality rating ahead

 

of any other type of provider.

 

(d) Not later than November 1 of each year, compile the

 

results of the information reported by each intermediate district

 

or consortium under subsection (10) (16) and report to the

 

legislature a list by intermediate district or consortium with the

 

number and percentage of each intermediate district's or

 

consortium's total slot allocation allocated to community-based

 

providers by provider type, including private for-profit, private

 

nonprofit, community college or university, head start grantee or

 

delegate, and district or intermediate district.

 

(16) 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 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 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.

 

(17) 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.

 

(c) "School-day program" means a program that operates for at

 

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.

 

(18) An intermediate district or consortium of intermediate

 

districts receiving funds under this section shall establish a

 

sliding scale of tuition rates based upon 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 shall

 

charge tuition according to that sliding scale of tuition rates on

 

a uniform basis for any child who does not meet the income

 

eligibility requirements under this section.

 

(19) 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 2014-2015 unless transferred by the legislature not

 

later than December 15, 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.

 

(19) (20) From the amount appropriated in subsection (1),

 

there is allocated an amount not to exceed $10,000,000.00 for

 

reimbursement of transportation costs for children attending great

 

start readiness programs funded under this section. To receive

 

reimbursement under this subsection, not later than November 1,

 

2014, 2015, a program funded under this section that provides

 

transportation shall submit to the intermediate district that is

 

the fiscal agent for the program a projected transportation budget.

 

The amount of the reimbursement for transportation under this

 

subsection shall be the lesser of the projected transportation

 

budget or $150.00 multiplied by the number of slots funded for the

 

program under this section. If the amount allocated under this

 

subsection is insufficient to fully reimburse the transportation

 

costs for all programs that provide transportation and submit the


required information, the reimbursement shall be prorated in an

 

equal amount per slot funded. Payments shall be made to the

 

intermediate district that is the fiscal agent for each program,

 

and the intermediate district shall then reimburse the program

 

provider for transportation costs as prescribed under this

 

subsection.

 

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 2014-2015 2015-2016

 

for the purpose of providing early childhood funding to

 

intermediate school districts in block grants , supporting to

 

support the activities under subsection (2) , and providing to

 

provide early childhood programs for children from birth through

 

age 8. The funding provided to each intermediate district under

 

this section shall be 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 September 15 of the

 

immediately preceding fiscal year indicating the activities planned

 

to be provided.

 

(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. The goal of

 

each great start collaborative 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


to achieve the following outcomes:

 

(a) Children born healthy.

 

(b) Children healthy, thriving, and developmentally on track

 

from birth to third grade.

 

(c) Children developmentally ready to succeed in school at the

 

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 workgroups to make recommendations about community

 

services designed to achieve the outcomes described in subsection

 

(2) and to ensure that its local great start system includes the

 

following supports for children from birth through age 8:

 

(a) Physical health.

 

(b) Social-emotional health.

 

(c) Family supports and basic needs.

 

(d) Parent education. and child advocacy.

 

(e) Early education and care.

 

(4) Not later than December 1 of each year, each intermediate

 

district shall provide a report to the department detailing the

 

activities actually provided during 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 not later

 

than February 15 of each year.

 

(5) An intermediate district or consortium of intermediate


districts that receives funding under this section may carry over

 

any unexpended funds received under this section into the next

 

fiscal year and may expend those unused funds through June 30 of

 

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 an application, in a form and manner

 

prescribed by the department, by a date specified by the department

 

in the immediately preceding state fiscal year. The application

 

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.

 

(c) The number of children the applicant will be able to serve

 

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) After notification of funding allocations, an applicant

 

receiving funds under section 32d shall also submit an

 

implementation plan 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 $3,625.00 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 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 in 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

 

$3,625.00.

 

(6) If funds allocated for eligible applicants 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 $3,625.00 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 2014-2015 2015-2016 to districts,

 

intermediate districts, and other eligible entities all available

 

federal funding, estimated at $807,969,900.00 $779,076,400.00 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 $8,000,000.00 $5,000,000.00 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 $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.

 

(c) An amount estimated at $12,200,000.00 for programs to

 

teach English to limited English proficient (LEP) children, funded

 

from DED-OESE, language acquisition state grant funds.

 

(d) An amount estimated at $10,286,500.00 for the Michigan


charter school subgrant program, funded from DED-OESE, charter

 

school funds.

 

(e) An amount estimated at $2,393,500.00 $3,000,000.00 for

 

rural and low income schools, funded from DED-OESE, rural and low

 

income school funds.

 

(f) An amount estimated at $591,500,000.00 $565,000,000.00 to

 

provide supplemental programs to enable educationally disadvantaged

 

children to meet challenging academic standards, funded from DED-

 

OESE, title I, disadvantaged children funds.

 

(g) 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) An amount estimated at $39,000,000.00 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) 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 2014-2015 2015-2016 to districts, intermediate

 

districts, and other eligible entities all available federal

 

funding, estimated at $31,300,000.00 $30,800,000.00 for the

 

following programs that are funded by federal grants:

 

(a) An amount estimated at $200,000.00 for acquired

 

immunodeficiency syndrome education grants, funded from HHS


center for disease control, Centers for Disease Control and

 

Prevention, AIDS funding.

 

(b) An amount estimated at $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 $4,000,000.00 to provide mental

 

health, substance abuse, or violence prevention services to

 

students, funded from HHS-SAMHSA.

 

(d) (c) An amount estimated at $28,500,000.00 $24,000,000.00

 

for providing career and technical education services to pupils,

 

funded from DED-OVAE, basic grants to states.

 

(3) All federal funds allocated under this section shall be

 

distributed in accordance with federal law and with flexibility

 

provisions outlined in Public Law 107-116, and in the education

 

flexibility partnership act of 1999, Public Law 106-25.

 

Notwithstanding section 17b, payments of federal funds to

 

districts, intermediate districts, and other eligible entities

 

under this section shall be paid on a schedule determined by the

 

department.

 

(4) 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.

 

(5) As used in this section:

 

(a) "DED" means the United States department of

 

education.Department of Education.


(b) "DED-OESE" means the DED office of elementary and

 

secondary education.Office of Elementary and Secondary Education.

 

(c) "DED-OVAE" means the DED office of vocational and adult

 

education.Office of Vocational and Adult Education.

 

(d) "HHS" means the United States department of health and

 

human services.Department of Health and Human Services.

 

(e) "HHS-ACF" means the HHS administration for children and

 

families.

 

(e) "HHS-SAMHSA" means the HHS Substance Abuse and Mental

 

Health Services Administration.

 

Sec. 43. From the general fund money appropriated in section

 

11, there is allocated to the department for 2014-2015 2015-2016 an

 

amount not to exceed $1,800,000.00 for updating teacher

 

certification tests. The department shall use these funds to update

 

the set of teacher certification tests, including content-specific

 

and subject-relevant tests, to reflect current education standards

 

by not later than September 30, 2016. This is the second year of 2

 

years of funding.

 

Sec. 51a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $914,946,100.00 for 2014-2015

 

$934,546,100.00 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 for 2014-2015, 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 $251,800,000.00 for

 

2014-2015, $257,200,000.00 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 2015-2016 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 for 2014-2015 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 for 2014-2015 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 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.

 

(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. This reimbursement

 

shall not be made after 2014-2015.


(c) (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.

 

(d) (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 $4,000,000.00 for

 

2014-2015, $3,200,000.00 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 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).

 

(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) A district 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. 51c. As required by the court in the consolidated cases

 

known as Durant v State of Michigan, Michigan supreme court docket

 

no. 104458-104492, from the allocation under section 51a(1), there

 

is allocated for 2014-2015 2015-2016 the amount necessary,

 

estimated at $606,000,000.00, $621,000,000.00, for payments to

 

reimburse districts for 28.6138% of total approved costs of special

 

education excluding costs reimbursed under section 53a, and

 

70.4165% of total approved costs of special education

 

transportation. Funds allocated under this section that are not

 

expended in the state fiscal year for which they were allocated, as

 

determined by the department, may be used to supplement the

 

allocations under sections 22a and 22b in order to fully fund those

 

calculated allocations for the same fiscal year.

 

Sec. 51d. (1) From the federal funds appropriated in section

 

11, there is allocated for 2014-2015, 2015-2016, all available

 

federal funding, estimated at $74,000,000.00, $71,000,000.00, for

 

special education programs and services that are funded by federal

 

grants. All federal funds allocated under this section shall be

 

distributed in accordance with federal law. Notwithstanding section

 

17b, payments of federal funds to districts, intermediate

 

districts, and other eligible entities under this section shall be

 

paid on a schedule determined by the department.


(2) From the federal funds allocated under subsection (1), the

 

following amounts are allocated for 2014-2015:2015-2016:

 

(a) An amount estimated at $15,000,000.00 $14,000,000.00 for

 

handicapped infants and toddlers, funded from DED-OSERS,

 

handicapped infants and toddlers funds.

 

(b) An amount estimated at $14,000,000.00 $12,000,000.00 for

 

preschool grants (Public Law 94-142), funded from DED-OSERS,

 

handicapped preschool incentive funds.

 

(c) An amount estimated at $45,000,000.00 for special

 

education programs funded by DED-OSERS, handicapped program,

 

individuals with disabilities act funds.

 

(3) As used in this section, "DED-OSERS" means the United

 

States department of education office of special education and

 

rehabilitative services.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.

 

(c) Pupils who are former residents of department of community

 

health institutions for the developmentally disabled who are placed

 

in community settings other than the pupil's home.

 

(d) Pupils enrolled in a department-approved on-grounds

 

educational program longer than 180 days, but not longer than 233

 

days, at a residential child care institution, if the child care

 

institution offered in 1991-92 an on-grounds educational program

 

longer than 180 days but not longer than 233 days.

 

(e) Pupils placed in a district by a parent for the purpose of

 

seeking a suitable home, if the parent does not reside in the same

 

intermediate district as the district in which the pupil is placed.

 

(3) Only those costs that are clearly and directly

 

attributable to educational programs for pupils described in

 

subsection (2), and that would not have been incurred if the pupils

 

were not being educated in a district or intermediate district, are

 

reimbursable under this section.

 

(4) The costs of transportation shall be funded under this

 

section and shall not be reimbursed under section 58.


(5) Not more than $10,500,000.00 of the allocation for 2014-

 

2015 2015-2016 in section 51a(1) shall be allocated 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 2014-2015 2015-2016 in section 51a(1) shall be

 

allocated under this section.

 

Sec. 55. (1) From the money appropriated in section 11, there

 

is allocated an amount not to exceed $150,000.00 for 2015-2016 to

 

Michigan State University, Department of Epidemiology, for a study

 

of the Conductive Learning Center located at Aquinas College. This

 

funding shall be used to develop and implement an evaluation of the

 

effectiveness of conductive education for children with cerebral

 

palsy. The evaluation shall be multidimensional and shall include a

 

control group of children with cerebral palsy not enrolled in

 

conductive education. It should include an assessment of the motor

 

system itself as well as the impact of conductive education on each

 

of the following:

 

(a) The acquisition of skills permitting complex motor

 

functions.

 

(b) The performance of tasks essential to daily living.

 

(c) The attitudes and feelings of both children and parents.

 

(d) The long-term need for special education for children with

 

cerebral palsy.

 

(2) It is the intent of the legislature that this funding is


for the first of 2 years of funding for this purpose.

 

Sec. 56. (1) For the purposes of this section:

 

(a) "Membership" means for a particular fiscal year the total

 

membership for the immediately preceding fiscal year of the

 

intermediate district and the districts constituent to the

 

intermediate district.

 

(b) "Millage levied" means the millage levied for special

 

education pursuant to part 30 of the revised school code, MCL

 

380.1711 to 380.1743, including a levy for debt service

 

obligations.

 

(c) "Taxable value" means the total taxable value of the

 

districts constituent to an intermediate district, except that if a

 

district has elected not to come under part 30 of the revised

 

school code, MCL 380.1711 to 380.1743, membership and taxable value

 

of the district shall not be included in the membership and taxable

 

value of the intermediate district.

 

(2) From the allocation under section 51a(1), there is

 

allocated an amount not to exceed $37,758,100.00 for 2014-2015

 

2015-2016 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 2013-2014 2014-

 

2015 shall be made in 2014-2015 2015-2016 at an amount per 2013-

 

2014 2014-2015 membership pupil computed by subtracting from

 

$172,200.00 $174,400.00 the 2013-2014 2014-2015 taxable value

 

behind each membership pupil and multiplying the resulting

 

difference by the 2013-2014 2014-2015 millage levied.

 

(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