EXECUTIVE BUDGET BILL
February 24, 2009, Introduced by Rep. Terry Brown and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 3, 6, 8b, 11, 11a, 11g, 11j, 11k, 11m, 11n,
15, 18, 20, 20d, 20j, 22a, 22b, 24, 24a, 24c, 26a, 26b, 29, 31a,
31d, 31f, 32b, 32d, 32l, 32n, 39, 39a, 51a, 51c, 51d, 53a, 54, 54a,
56, 61a, 62, 64, 74, 81, 94a, 98, 99, 101, 104, 107, 147, and 164c
(MCL 388.1603, 388.1606, 388.1608b, 388.1611, 388.1611a, 388.1611g,
388.1611j, 388.1611k, 388.1611m, 388.1611n, 388.1615, 388.1618,
388.1620, 388.1620d, 388.1620j, 388.1622a, 388.1622b, 388.1624,
388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1629, 388.1631a,
388.1631d, 388.1631f, 388.1632b, 388.1632d, 388.1632l, 388.1632n,
388.1639, 388.1639a, 388.1651a, 388.1651c, 388.1651d, 388.1653a,
388.1654, 388.1654a, 388.1656, 388.1661a, 388.1662, 388.1664,
388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1701,
388.1704, 388.1707, 388.1747, and 388.1764c), sections 3, 6, 11,
11a, 11g, 11j, 11k, 11m, 15, 18, 20, 20d, 20j, 22a, 22b, 24, 24a,
24c, 26a, 26b, 29, 31a, 31d, 31f, 32b, 32d, 32l, 39, 39a, 51a, 51c,
51d, 53a, 54, 54a, 56, 61a, 62, 64, 74, 81, 94a, 98, 99, 104, 107,
147, and 164c as amended and section 11n as added by 2008 PA 268,
section 8b as amended by 2007 PA 92, section 32n as added by 2007
PA 137, and section 101 as amended by 2006 PA 342; and to repeal
acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) "Average daily attendance", for the purposes of
complying with federal law, means 92% of the pupils counted in
membership on the pupil membership count day, as defined in section
6(7).
(2) "Board" means the governing body of a district or public
school academy.
(3) "Center" means the center for educational performance and
information created in section 94a.
(4) "Cooperative education program" means a written voluntary
agreement between and among districts to provide certain
educational programs for pupils in certain groups of districts. The
written agreement shall be approved by all affected districts at
least annually and shall specify the educational programs to be
provided and the estimated number of pupils from each district who
will participate in the educational programs.
(5) "Department", except in section 107, means the department
of education.
(6) "District" means a local school district established under
the
revised school code or, except in sections 6(4), 6(6), 11n, 13,
20,
22a, 23, 29, 31a, 99j, 99k, 51a(15), 105, and 105c, a public
school
academy. Except in sections 6(4), 6(6), 11n, 13, 20, 22a,
29,
99j, 99k, 51a(15), 105, and 105c, district also includes a
university school.
(7) "District of residence", except as otherwise provided in
this subsection, means the district in which a pupil's custodial
parent or parents or legal guardian resides. For a pupil described
in section 24b, the pupil's district of residence is the district
in which the pupil enrolls under that section. For a pupil
described in section 6(4)(d), the pupil's district of residence
shall be considered to be the district or intermediate district in
which the pupil is counted in membership under that section. For a
pupil under court jurisdiction who is placed outside the district
in which the pupil's custodial parent or parents or legal guardian
resides, the pupil's district of residence shall be considered to
be the educating district or educating intermediate district.
(8) "District superintendent" means the superintendent of a
district, the chief administrator of a public school academy, or
the chief administrator of a university school.
Sec. 6. (1) "Center program" means a program operated by a
district or intermediate district for special education pupils from
several districts in programs for pupils with autism spectrum
disorder, pupils with severe cognitive impairment, pupils with
moderate cognitive impairment, pupils with severe multiple
impairments, pupils with hearing impairment, pupils with visual
impairment, and pupils with physical impairment or other health
impairment. Programs for pupils with emotional impairment housed in
buildings that do not serve regular education pupils also qualify.
Unless otherwise approved by the department, a center program
either shall serve all constituent districts within an intermediate
district or shall serve several districts with less than 50% of the
pupils residing in the operating district. In addition, special
education center program pupils placed part-time in noncenter
programs to comply with the least restrictive environment
provisions of section 612 of part B of the individuals with
disabilities education act, 20 USC 1412, may be considered center
program pupils for pupil accounting purposes for the time scheduled
in either a center program or a noncenter program.
(2) "District and high school graduation rate" means the
annual completion and pupil dropout rate that is calculated by the
center pursuant to nationally recognized standards.
(3) "District and high school graduation report" means a
report of the number of pupils, excluding adult participants, in
the district for the immediately preceding school year, adjusted
for those pupils who have transferred into or out of the district
or high school, who leave high school with a diploma or other
credential of equal status.
(4) "Membership", except as otherwise provided in this act,
means for a district, public school academy, university school, or
intermediate district the sum of the product of .75 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 .25
times the final audited count from the supplemental count day for
the immediately preceding school year. 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. 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, public school
academy, university school, or 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 vocational 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 university school shall be counted
in membership in the university school.
(h) A pupil enrolled in a public school academy shall be
counted in membership in the public school academy.
(i) For a new district, university school, or public school
academy beginning its operation after December 31, 1994, 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, public school academy, university school,
or 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) Pupils to be counted in membership shall be not less than
5 years of age on December 1 and less than 20 years of age on
September 1 of the school year except a special education pupil who
is enrolled and receiving instruction in a special education
program or service approved by the department and not having a high
school diploma who is less than 26 years of age as of September 1
of the current school year shall be counted in membership.
(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. 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 the department of ENERGY, labor and economic
growth, 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 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 unless a written
agreement signed by all parties designates the party or parties in
which the pupil shall be counted in membership, and the
instructional time scheduled for the pupil in the district or
intermediate district shall be included in the full-time equated
membership determination under subdivision (q). However, for pupils
receiving instruction in both a public school academy 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 provides instruction for at
least 1/2 of the class hours specified in subdivision (q), the
public school academy 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 provides divided by the number of hours specified in
subdivision (q) for full-time equivalency, and the remainder of the
full-time membership for each of those pupils shall be allocated to
the district or intermediate district providing the remainder of
the hours of instruction.
(ii) If the public school academy provides instruction for
less than 1/2 of the class hours specified in subdivision (q), the
district or intermediate district providing the remainder of the
hours of instruction shall receive as its prorated share of the
full-time equated membership for each of those pupils an amount
equal to 1 times the product of the hours of instruction the
district or intermediate district provides divided by the number of
hours specified in subdivision (q) for full-time equivalency, and
the remainder of the full-time membership for each of those pupils
shall be allocated to the public school academy.
(o) An individual less than 16 years of age as of September 1
of the current school year who is being educated in an alternative
education program shall not be counted in membership if there are
also adult education participants being educated in the same
program or classroom.
(p) The department shall give a uniform interpretation of
full-time and part-time memberships.
(q) The number of class hours used to calculate full-time
equated memberships shall be consistent with section 101(3). In
determining full-time equated memberships for pupils who are
enrolled in a postsecondary institution, a pupil shall not be
considered to be less than a full-time equated pupil solely because
of the effect of his or her postsecondary enrollment, including
necessary travel time, on the number of class hours provided by the
district to the pupil.
(r) Except as otherwise provided in this subdivision, 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. Beginning in 2009-2010, full-time equated
memberships
for pupils enrolled in developmental kindergarten ,
prekindergarten, or a similar class intended to be the first of 2
school years before a pupil enters grade 1 shall be determined by
dividing the number of class hours scheduled and provided per year
per DEVELOPMENTAL kindergarten pupil by the number used for
determining full-time equated memberships for pupils in grades 1 to
12. For 2010-2011, full-time equated memberships for pupils
enrolled 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 60% of the number used for determining
full-time equated memberships for pupils in grades 1 to 12.
Beginning in 2011-2012, full-time equated memberships for pupils
enrolled 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 70% of the number used for determining
full-time equated memberships for pupils in grades 1 to 12.
(s) For a district, university school, or public school
academy that has pupils enrolled in a grade level that was not
offered by the district, university school, or public school
academy in the immediately preceding school year, the number of
pupils enrolled in that grade level to be counted in membership is
the average of the number of those pupils enrolled and in regular
daily attendance on the pupil membership count day and the
supplemental count day of the current school year, as determined by
the department. Membership shall be calculated by adding the number
of pupils registered for attendance in that grade level on the
pupil membership count day plus pupils received by transfer and
minus pupils lost as defined by rules promulgated by the
superintendent, and as corrected by subsequent department audit,
plus the final audited count from the supplemental count day for
the current school year, and dividing that sum by 2.
(t) A pupil enrolled in a cooperative education program may be
counted in membership in the pupil's district of residence with the
written approval of all parties to the cooperative agreement.
(u) If, as a result of a disciplinary action, a district
determines through the district's alternative or disciplinary
education program that the best instructional placement for a pupil
is in the pupil's home or otherwise apart from the general school
population, if that placement is authorized in writing by the
district superintendent and district alternative or disciplinary
education supervisor, and if the district provides appropriate
instruction as described in this subdivision to the pupil at the
pupil's home or otherwise apart from the general school population,
the district may count the pupil in membership on a pro rata basis,
with the proration based on the number of hours of instruction the
district actually provides to the pupil divided by the number of
hours specified in subdivision (q) for full-time equivalency. For
the purposes of this subdivision, a district shall be considered to
be providing appropriate instruction if all of the following are
met:
(i) The district provides at least 2 nonconsecutive hours of
instruction per week to the pupil at the pupil's home or otherwise
apart from the general school population under the supervision of a
certificated teacher.
(ii) The district provides instructional materials, resources,
and supplies, except computers, that are comparable to those
otherwise provided in the district's alternative education program.
(iii) Course content is comparable to that in the district's
alternative education program.
(iv) Credit earned is awarded to the pupil and placed on the
pupil's transcript.
(v)
For 2007-2008 only, a A pupil
enrolled in an alternative
or disciplinary education program described in section 25 shall be
counted in membership in the PUPIL’S EDUCATING district or public
school
academy that expelled the pupil.
(w) If a pupil was enrolled in a public school academy on the
pupil membership count day, if the public school academy's contract
with its authorizing body is revoked or the public school academy
otherwise ceases to operate, and if the pupil enrolls in a district
within 45 days after the pupil membership count day, the department
shall adjust the district's pupil count for the pupil membership
count day to include the pupil in the count.
(x) For a public school academy that has been in operation for
at least 2 years and that suspended operations for at least 1
semester and is resuming operations, membership is the sum of the
product of .75 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 .25 times the final audited count from the most recent
pupil membership count day or supplemental count day that occurred
before suspending operations, as determined by the superintendent.
(y) If a district's membership for a particular fiscal year,
as otherwise calculated under this subsection, would be less than
1,550 pupils and the district has 4.5 or fewer pupils per square
mile,
as determined by the department, and, beginning in 2007-2008,
if
the district does not receive funding under section 22d(2), the
district's membership shall be considered to be the membership
figure calculated under this subdivision. If a district educates
and counts in its membership pupils in grades 9 to 12 who reside in
a contiguous district that does not operate grades 9 to 12 and if 1
or both of the affected districts request the department to use the
determination allowed under this sentence, the department shall
include the square mileage of both districts in determining the
number of pupils per square mile for each of the districts for the
purposes of this subdivision. The membership figure calculated
under this subdivision is the greater of the following:
(i)
The average of the district's membership for the 3- 2-
fiscal-year period ending with that fiscal year, calculated by
adding
the district's actual membership for each of those 3 2
fiscal years, as otherwise calculated under this subsection, and
dividing
the sum of those 3 2 membership
figures by 3 2.
(ii) The district's actual membership for that fiscal year as
otherwise calculated under this subsection.
(z) If a public school academy that is not in its first or
second year of operation closes at the end of a school year and
does not reopen for the next school year, the department shall
adjust the membership count of the district in which a former pupil
of the public school academy enrolls and is in regular daily
attendance for the next school year to ensure that the district
receives the same amount of membership aid for the pupil as if the
pupil were counted in the district on the supplemental count day of
the preceding school year.
(aa) Full-time equated memberships for preprimary-aged 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 preprimary-aged special education pupils
who are not enrolled in kindergarten but are receiving nonclassroom
services under R 340.1755 of the Michigan administrative code shall
be determined by dividing the number of hours of service scheduled
and provided per year per pupil by 180.
(bb) A pupil of a district that begins its school year after
Labor day who is enrolled in an intermediate district program that
begins before Labor day shall not be considered to be less than a
full-time pupil solely due to instructional time scheduled but not
attended by the pupil before Labor day.
(cc) For the first year in which a pupil is counted in
membership on the pupil membership count day in a middle college
program described in section 64, the membership is the average of
the full-time equated membership on the pupil membership count day
and on the supplemental count day for the current school year, as
determined by the department. If a pupil was counted by the
operating district on the immediately preceding supplemental count
day, the pupil shall be excluded from the district's immediately
preceding supplemental count for purposes of determining the
district's membership.
(5) "Public school academy" means a public school academy,
urban high school academy, or strict discipline academy operating
under the revised school code.
(6) "Pupil" means a person in membership in a public school. A
district must have the approval of the pupil's district of
residence to count the pupil in membership, except approval by the
pupil's district of residence is not required for any of the
following:
(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in
accordance with section 166b.
(b) A pupil receiving 1/2 or less of his or her instruction in
a district other than the pupil's district of residence.
(c) A pupil enrolled in a public school academy or university
school.
(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 750.90g, or that constitutes an assault and
infliction of serious or aggravated injury under section 81a of the
Michigan penal code, 1931 PA 328, MCL 750.81a.
(g) A pupil whose district of residence changed after the
pupil membership count day and before the supplemental count day
and who continues to be enrolled on the supplemental count day as a
nonresident in the district in which he or she was enrolled as a
resident on the pupil membership count day of the same school year.
(h) A pupil enrolled in an alternative education program
operated by a district other than his or her district of residence
who meets 1 or more of the following:
(i) The pupil has been suspended or expelled from his or her
district of residence for any reason, including, but not limited
to, a suspension or expulsion under section 1310, 1311, or 1311a of
the revised school code, MCL 380.1310, 380.1311, and 380.1311a.
(ii) The pupil had previously dropped out of school.
(iii) The pupil is pregnant or is a parent.
(iv) The pupil has been referred to the program by a court.
(v) The pupil is enrolled in an alternative or disciplinary
education program described in section 25.
(i) A pupil enrolled in the Michigan virtual high school, for
the pupil's enrollment in the Michigan virtual high school.
(j) A pupil who is the child of a person who is employed by
the district. 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 program described in section 64 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.
However, if a district that is not a first class district
educates pupils who reside in a first class district and if the
primary instructional site for those pupils is located within the
boundaries of the first class district, the educating district must
have the approval of the first class district to count those pupils
in
membership. As used in this subsection, "first class district"
means
a district organized as a school district of the first class
under
the revised school code.
(7) "Pupil membership count day" of a district or intermediate
district means:
(a) Except as provided in subdivision (b), the fourth
Wednesday after Labor day 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) Fourth Wednesday after Labor day.
(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, intermediate district, or public school
academy 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, or public school
academy 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", except in subsection
(6), mean a district that had at least 60,000 pupils in
membership
for the immediately preceding fiscal year.
(12) "School fiscal year" means a fiscal year that commences
July 1 and continues through June 30.
(13) "State board" means the state board of education.
(14) "Superintendent", unless the context clearly refers to a
district or intermediate district superintendent, means the
superintendent of public instruction described in section 3 of
article VIII of the state constitution of 1963.
(15) "Supplemental count day" means the day on which the
supplemental pupil count is conducted under section 6a.
(16) "Tuition pupil" means a pupil of school age attending
school in a district other than the pupil's district of residence
for whom tuition may be charged. Tuition pupil does not include a
pupil who is a special education pupil or a pupil described in
subsection (6)(c) to (m). 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 that is selected and approved by
the governing board of a district 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 act.
(21) "University school" means an instructional program
operated by a public university under section 23 that meets the
requirements of section 23.
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 act
within 30 days after a COMPLETE 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 act 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 act 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 8 7 for the
public school academies in excess of 100.
Sec.
11. (1) For the fiscal year ending September 30, 2008,
there
is appropriated for the public schools of this state and
certain
other state purposes relating to education the sum of
$11,386,866,600.00
from the state school aid fund established by
section
11 of article IX of the state constitution of 1963 and the
sum
of $34,909,600.00 from the general fund. For the fiscal year
ending September 30, 2009, there is appropriated for the public
schools of this state and certain other state purposes relating to
education
the sum of $11,776,098,200.00 $11,615,798,200.00 from the
state school aid fund established by section 11 of article IX of
the
state constitution of 1963 and the sum of $40,800,000.00
$85,000,000.00 from the general fund. For the fiscal year ending
September 30, 2010, there is appropriated for the public schools of
this state and certain other state purposes relating to education
the sum of $11,360,990,600.00 from the state school aid fund
established by section 11 of article IX of the state constitution
of 1963 and the sum of $40,800,000.00 from the general fund. In
addition, available federal funds are appropriated for the fiscal
year
ending September 30, 2008 2009 and
for the fiscal year ending
September
30, 2009 2010.
(2) The appropriations under this section shall be allocated
as provided in this act. Money appropriated under this section from
the general fund shall be expended to fund the purposes of this act
before the expenditure of money appropriated under this section
from the state school aid fund. If the maximum amount appropriated
under this section from the state school aid fund for a fiscal year
exceeds the amount necessary to fully fund allocations under this
act from the state school aid fund, that excess amount shall not be
expended in that state fiscal year and shall not lapse to the
general fund, but instead shall be deposited into the school aid
stabilization fund created in section 11a.
(3) If the maximum amount appropriated under this section from
the state school aid fund and the school aid stabilization fund for
a fiscal year exceeds the amount available for expenditure from the
state school aid fund for that fiscal year, payments under sections
11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12),
51c, 53a,
and 56 shall be made in full. In addition, for districts beginning
operations after 1994-95 that qualify for payments under section
22b, payments under section 22b shall be made so that the
qualifying districts receive the lesser of an amount equal to the
1994-95 foundation allowance of the district in which the district
beginning operations after 1994-95 is located or $5,500.00. The
amount of the payment to be made under section 22b for these
qualifying districts shall be as calculated under section 22a, with
the balance of the payment under section 22b being subject to the
proration otherwise provided under this subsection and subsection
(4). If proration is necessary, state payments under each of the
other sections of this act from all state funding sources shall be
prorated in the manner prescribed in subsection (4) as necessary to
reflect the amount available for expenditure from the state school
aid fund for the affected fiscal year. However, if the department
of treasury determines that proration will be required under this
subsection, or if the department of treasury determines that
further proration is required under this subsection after an
initial proration has already been made for a fiscal year, the
department of treasury shall notify the state budget director, and
the state budget director shall notify the legislature at least 30
calendar days or 6 legislative session days, whichever is more,
before the department reduces any payments under this act because
of the proration. During the 30 calendar day or 6 legislative
session day period after that notification by the state budget
director, the department shall not reduce any payments under this
act because of proration under this subsection. The legislature may
prevent proration from occurring by, within the 30 calendar day or
6 legislative session day period after that notification by the
state budget director, enacting legislation appropriating
additional funds from the general fund, countercyclical budget and
economic stabilization fund, state school aid fund balance, or
another source to fund the amount of the projected shortfall.
(4) If proration is necessary under subsection (3), the
department shall calculate the proration in district and
intermediate district payments that is required under subsection
(3) as follows:
(a) The department shall calculate the percentage of total
state school aid allocated under this act for the affected fiscal
year for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(i) for districts by
reducing payments to districts. This reduction shall be made by
calculating an equal dollar amount per pupil as necessary to
recover this percentage of the proration amount and reducing each
district's total state school aid from state sources, other than
payments
under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,
51a(2), 51a(12), 51c, and 53a, by that amount.
(c) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(ii) for intermediate
districts by reducing payments to intermediate districts. This
reduction shall be made by reducing the payments to each
intermediate
district, other than payments under sections 11f, 11g,
26a, 26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage
basis.
(d) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(iii) for entities other
than districts and intermediate districts by reducing payments to
these entities. This reduction shall be made by reducing the
payments to each of these entities, other than payments under
sections 11j, 26a, and 26b, on an equal percentage basis.
(5) Except for the allocation under section 26a, any general
fund allocations under this act 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 11(3) and state payments in an amount
equal to the remainder of the projected shortfall shall be prorated
in the manner provided under section 11(4).
(7) For 2008-2009 AND 2009-2010, 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 act.
Sec. 11g. (1) From the appropriation in section 11, there is
allocated for this section an amount not to exceed $42,000,000.00
for
the fiscal year ending September 30, 2009 2010 and
for each
succeeding fiscal year through the fiscal year ending September 30,
2015, after which these payments will cease. These allocations are
for paying the amounts described in subsection (3) to districts and
intermediate districts, other than those receiving a lump-sum
payment under section 11f(2), that were not plaintiffs in the
consolidated cases known as Durant v State of Michigan, Michigan
supreme court docket no. 104458-104492 and that, on or before March
2, 1998, submitted to the state treasurer a waiver resolution
described in section 11f. The amounts paid under this section
represent offers of settlement and compromise of any claim or
claims that were or could have been asserted by these districts and
intermediate districts, as described in this section.
(2) This section does not create any obligation or liability
of this state to any district or intermediate district that does
not submit a waiver resolution described in section 11f. This
section and any other provision of this act are not intended to
admit liability or waive any defense that is or would be available
to this state or its agencies, employees, or agents in any
litigation or future litigation with a district or intermediate
district regarding these claims or potential claims.
(3) The amount paid each fiscal year to each district or
intermediate district under this section shall be 1 of the
following:
(a) If the district or intermediate district does not borrow
money and issue bonds under section 11i, 1/30 of the total amount
listed in section 11h for the district or intermediate district
through the fiscal year ending September 30, 2013.
(b) If the district or intermediate district borrows money and
issues bonds under section 11i, an amount in each fiscal year
calculated by the department of treasury that is equal to the debt
service amount in that fiscal year on the bonds issued by that
district or intermediate district under section 11i and that will
result in the total payments made to all districts and intermediate
districts in each fiscal year under this section being no more than
the amount appropriated under this section in each fiscal year.
(4) The entire amount of each payment under this section each
fiscal year shall be paid on May 15 of the applicable fiscal year
or on the next business day following that date. If a district or
intermediate district borrows money and issues bonds under section
11i, the district or intermediate district shall use funds received
under this section to pay debt service on bonds issued under
section 11i. If a district or intermediate district does not borrow
money and issue bonds under section 11i, the district or
intermediate district shall use funds received under this section
only for the following purposes, in the following order of
priority:
(a) First, to pay debt service on voter-approved bonds issued
by the district or intermediate district before the effective date
of this section.
(b) Second, to pay debt service on other limited tax
obligations.
(c) Third, for deposit into a sinking fund established by the
district or intermediate district under the revised school code.
(5) To the extent payments under this section are used by a
district or intermediate district to pay debt service on debt
payable from millage revenues, and to the extent permitted by law,
the district or intermediate district may make a corresponding
reduction in the number of mills levied for debt service.
(6) A district or intermediate district may pledge or assign
payments under this section as security for bonds issued under
section 11i, but shall not otherwise pledge or assign payments
under this section.
Sec. 11j. From the appropriation in section 11, there is
allocated
an amount not to exceed $3,900,000.00 for 2007-2008 and
an
amount not to exceed $39,000,000.00
$40,000,000.00 EACH YEAR for
2008-2009 AND 2009-2010 for payments to the school loan bond
redemption fund in the department of treasury on behalf of
districts and intermediate districts. Notwithstanding section 11 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 2008-2009, 2009-2010,
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
municipal bond authority, not to exceed the total amount of school
bond loans held in reserve as long-term assets. As used in this
section, "school loan revolving fund" means that fund created in
section 16c of the shared credit rating act, 1985 PA 227, MCL
141.1066c.
Sec. 11m. From the appropriations in section 11, there is
allocated
for 2008-2009 2009-2010 an
amount not to exceed
$45,000,000.00 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. 11n. (1) From the appropriation in section 11, there is
allocated
$15,000,000.00 for 2008-2009 2009-2010 for the purposes
of this section. Money allocated under this section shall be
deposited in the 21st century schools fund on November 15 of the
fiscal year for which it is allocated or on the next business day
following that date.
(2) The 21st century schools fund is created as a separate
account within the state school aid fund. The state treasurer may
receive money or other assets from any source for deposit into the
21st century schools fund. The state treasurer shall direct the
investment of the 21st century schools fund. The state treasurer
shall credit to the 21st century schools fund interest and earnings
from 21st century schools fund investments. Money in the 21st
century schools fund at the close of the fiscal year shall remain
in the 21st century schools fund and shall not lapse to the state
school aid fund or to the general fund. The department of treasury
shall be the administrator of the 21st century schools fund for
auditing purposes. Money from the 21st century schools fund shall
be expended, upon appropriation, only for purposes of this section.
(3)
For 2008-2009, 2009-2010, an
amount not to exceed
$15,000,000.00 is allocated from the 21st century schools fund for
21st century schools grants under this section of up to
$3,000,000.00 for each school project to eligible districts that
meet the requirements of this section. The funds may be used for
planning and start-up costs of newly constructed or newly
configured schools or learning communities and renovations of
existing facilities as well as other expenditures outlined in the
applicants' proposals relating to planning and start-up costs and
approved by the department. Notwithstanding section 17b, the total
grant
amount for 2008-2009 2009-2010
to each eligible district or
public school academy shall be distributed over a 4-year period on
a schedule to be determined by the department.
(4) To apply for a 21st century schools grant, an eligible
district shall submit an application to the department, in a form
and manner prescribed by the department, that meets the application
criteria under this section. An application shall demonstrate to
the satisfaction of the department that the school or learning
community of an eligible district to be funded meets all of the
following:
(a) Will be designed to achieve the following outcomes not
later than the school year in which the third high school
graduating class graduates from the school or learning community:
(i) An 80% graduation rate, as determined by the department.
(ii) At least 80% of the high school graduates from the school
or learning community are enrolled in postsecondary studies within
6 months after high school graduation. For purposes of this
subparagraph, "postsecondary studies" includes 4-year colleges and
universities, community colleges, technical schools,
apprenticeships, and military enlistment.
(b) Will provide an open enrollment such that if there are
more applications to enroll than there are spaces available, pupils
shall be selected to attend using a random selection process.
However, a school or learning community may give enrollment
priority to a sibling of a pupil enrolled in the school or learning
community, and a school or learning community shall allow any pupil
who was enrolled in the school or learning community in the
immediately preceding school year to enroll in the school or
learning community in the next appropriate grade until the pupil
graduates from the school or learning community.
(c) Will have a maximum of 110 pupils in each high school
grade level and an average of at least 75 pupils in each high
school grade level.
(d) Will incorporate a relationship-building goal between the
teaching staff, administration, pupils, and parents.
(e) Has a commitment of private matching funds at least equal
to the amount of the grant under this section.
(5) If the department determines that a grant recipient has
failed to achieve the outcomes described in subsection (4)(a), the
grant recipient shall return to the state 50% of the total grant
awarded. To accomplish the return of these funds, the department
shall deduct an amount equal to 50% of the total grant awarded from
the grant recipient's state school aid installment payments, on a
schedule determined by the department. Funds returned under this
subsection shall be deposited in the 21st century schools fund.
(6) In awarding grants under this section, the department
shall give preference to grant applications for starting a new
school or learning community that will implement strategies to
prepare middle school students likely to attend the school or
learning community or that will include grades 6 to 12 rather than
proposals for stand-alone schools including only grades 9 to 12 and
not implementing strategies to prepare middle school students.
(7) The department shall not award more than 1/3 of the grants
under this section to public school academies.
(8) The department shall establish and publicize the
application process and a schedule for the application process.
(9) As used in this section, "eligible district" means all of
the following:
(a) A district with a districtwide cohort graduation rate for
high school pupils below 70%, as determined by the center for
educational performance and information, for its most recent
graduating class for which data are available.
(b) A public school academy if a majority of the pupils
enrolled in the public school academy reside in a district that
meets the criteria under subdivision (a).
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
act, 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
act other than a special education or special education
transportation payment. State aid overpayments made in special
education or special education transportation payments may be
recovered from subsequent special education or special education
transportation payments.
(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 if the district would otherwise experience a significant
hardship.
(3) If, because of the receipt of new or updated data, the
department determines during a fiscal year that the amount paid to
a district or intermediate district under this act for a prior
fiscal year was incorrect under the law in effect for that year,
the department may make the appropriate deduction or payment in the
district's or intermediate district's allocation for the fiscal
year in which the determination is made. The deduction or payment
shall be calculated according to the law in effect in the fiscal
year in which the improper amount was paid.
(4) Expenditures made by the department under this act that
are caused by the write-off of prior year accruals may be funded by
revenue from the write-off of prior year accruals.
(5) In addition to funds appropriated in section 11 for all
programs
and services, there is appropriated for 2008-2009 2009-
2010 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
act, each district or other entity shall apply the money received
by the district or entity under this act to salaries and other
compensation of teachers and other employees, tuition,
transportation, lighting, heating, ventilation, water service, the
purchase of textbooks which are designated by the board to be used
in the schools under the board's charge, 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
article 2 or intermediate district under article 8 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
act the apportionment otherwise due upon a violation by the
recipient.
(2) Within 30 days after a board or intermediate board adopts
its annual operating budget for the following school fiscal year,
or after a board or intermediate board adopts a subsequent revision
to that budget, the district or intermediate district shall make
the budget and subsequent budget revisions available on its
website, or a district may make the information available on its
intermediate district's website, in a form and manner prescribed by
the department.
(3) For the purpose of determining the reasonableness of
expenditures and whether a violation of this act has occurred, the
department shall require that each district and intermediate
district have an audit of the district's or intermediate district's
financial and pupil accounting records conducted at least annually
at the expense of the district or intermediate district, as
applicable, by a certified public accountant or by the intermediate
district superintendent, as may be required by the department, or
in the case of a district of the first class by a certified public
accountant, the intermediate superintendent, or the auditor general
of the city. An intermediate district's annual financial audit
shall be accompanied by the intermediate district's pupil
accounting procedures report. 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. The pupil 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. Except as otherwise provided in this
subsection, a district shall file the annual financial audit
reports with the intermediate district not later than 120 days
after the end of each school fiscal year and the intermediate
district shall forward the annual financial audit reports for its
constituent districts and for the intermediate district, and the
pupil accounting procedures report for the pupil membership count
day and supplemental count day, to the department not later than
November 15 of each year. 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. Not later than December 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.
(4) By November 15 of each year, each district and
intermediate district shall submit to the center, in a manner
prescribed by the center, annual comprehensive financial data
consistent with accounting manuals and charts of accounts approved
and published by the department. For an intermediate district, the
report shall also contain the website address where the department
can access the report required under section 620 of the revised
school code, MCL 380.620. The department shall ensure that the
prescribed Michigan public school accounting manual chart of
accounts includes standard conventions to distinguish expenditures
by allowable fund function and object. The functions shall include
at minimum categories for instruction, pupil support, instructional
staff support, general administration, school administration,
business administration, transportation, facilities operation and
maintenance, facilities acquisition, and debt service; and shall
include object classifications of salary, benefits, including
categories for active employee health expenditures, purchased
services, supplies, capital outlay, and other. Districts shall
report the required level of detail consistent with the manual as
part of the comprehensive annual financial report. The department
shall make this information available online to districts and
intermediate districts, and shall include per-pupil amounts spent
on instruction and instructional support service functions, and
indicate how much of those costs were attributable to salaries.
Districts and intermediate districts shall include a link on their
websites to the website where the department posts this
information.
(5) By September 30 of each year, each district and
intermediate district shall file with the department the special
education actual cost report, known as "SE-4096", on a form and in
the manner prescribed by the department.
(6) By October 7 of each year, each district and intermediate
district shall file with the center the transportation expenditure
report, known as "SE-4094", on a form and in the manner prescribed
by the center.
(7) 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 act. As part of its annual
review
process for 2007, not later than December 31, 2007, the
department
shall revise the pupil auditing manual to establish
standardized
procedures and processes for auditing pupil exit
statuses
and other pupil data used in calculating annual graduation
and
pupil dropout rates.
(8) If a district that is a public school academy purchases
property using money received under this act, the public school
academy shall retain ownership of the property unless the public
school academy sells the property at fair market value.
(9) If a district or intermediate district does not comply
with subsection (3), (4), (5), or (6), the department shall
withhold all state school aid due to the district or intermediate
district under this act, beginning with the next payment due to the
district or intermediate district, until the district or
intermediate district complies with subsections (3), (4), (5), and
(6). If the district or intermediate district does not comply with
subsections (3), (4), (5), and (6) by the end of the fiscal year,
the district or intermediate district forfeits the amount withheld.
Sec.
20. (1) For 2007-2008, the basic foundation allowance is
$8,433.00. For 2008-2009 AND 2009-2010, the basic foundation
allowance is $8,489.00.
(2) The amount of each district's foundation allowance shall
be calculated as provided in this section, using a basic foundation
allowance in the amount specified in subsection (1).
(3) Except as otherwise provided in this section, the amount
of a district's foundation allowance shall be calculated as
follows, using in all calculations the total amount of the
district's foundation allowance as calculated before any proration:
(a) For 2007-2008, for a district that had a foundation
allowance for 2006-2007, including any adjustment under subdivision
(f), that was at least equal to $7,108.00 but less than $8,385.00,
the district shall receive a foundation allowance in an amount
equal to the sum of the district's foundation allowance for 2006-
2007 plus the difference between $96.00 and [($48.00 minus $20.00)
times (the difference between the district's foundation allowance
for 2006-2007, including any adjustment under subdivision (f), and
$7,108.00)
divided by $1,325.00]. Beginning in
FOR 2008-2009, for a
district that had a foundation allowance for the immediately
preceding state fiscal year that was at least equal to the sum of
$7,108.00 plus the total dollar amount of all adjustments made from
2006-2007 to the immediately preceding state fiscal year in the
lowest foundation allowance among all districts, but less than the
basic foundation allowance for the immediately preceding state
fiscal year, the district shall receive a foundation allowance in
an amount equal to the sum of the district's foundation allowance
for the immediately preceding state fiscal year plus the difference
between twice the dollar amount of the adjustment from the
immediately preceding state fiscal year to the current state fiscal
year made in the basic foundation allowance and [(the dollar amount
of the adjustment from the immediately preceding state fiscal year
to the current state fiscal year made in the basic foundation
allowance minus $20.00) times (the difference between the
district's foundation allowance for the immediately preceding state
fiscal year and the sum of $7,108.00 plus the total dollar amount
of all adjustments made from 2006-2007 to the immediately preceding
state fiscal year in the lowest foundation allowance among all
districts) divided by the difference between the basic foundation
allowance for the current state fiscal year and the sum of
$7,108.00 plus the total dollar amount of all adjustments made from
2006-2007 to the immediately preceding state fiscal year in the
lowest foundation allowance among all districts]. FOR 2009-2010,
for a district that had a foundation allowance for the immediately
preceding state fiscal year that was at least equal to the sum of
$7,108.00 plus the total dollar amount of all adjustments made from
2006-2007 to the immediately preceding state fiscal year in the
lowest foundation allowance among all districts, but less than the
basic foundation allowance for the immediately preceding state
fiscal year, the district shall receive a foundation allowance in
an amount equal TO the district's foundation allowance for the
immediately preceding state fiscal year. However, the foundation
allowance for a district that had less than the basic foundation
allowance for the immediately preceding state fiscal year shall not
exceed the basic foundation allowance for the current state fiscal
year.
(b) Except as otherwise provided in this subsection, beginning
in 2008-2009, for a district that in the immediately preceding
state fiscal year had a foundation allowance in an amount at least
equal to the amount of the basic foundation allowance for the
immediately preceding state fiscal year, the district shall receive
a foundation allowance in an amount equal to the sum of the
district's foundation allowance for the immediately preceding state
fiscal year plus the dollar amount of the adjustment from the
immediately preceding state fiscal year to the current state fiscal
year in the basic foundation allowance.
(c) For a district that in the 1994-95 state fiscal year had a
foundation allowance greater than $6,500.00, the district's
foundation allowance is an amount equal to the sum of the
district's foundation allowance for the immediately preceding state
fiscal year plus the lesser of the increase in the basic foundation
allowance for the current state fiscal year, as compared to the
immediately preceding state fiscal year, or the product of the
district's foundation allowance for the immediately preceding state
fiscal year times the percentage increase in the United States
consumer price index in the calendar year ending in the immediately
preceding fiscal year as reported by the May revenue estimating
conference conducted under section 367b of the management and
budget act, 1984 PA 431, MCL 18.1367b.
(d) For a district that has a foundation allowance that is not
a whole dollar amount, the district's foundation allowance shall be
rounded up to the nearest whole dollar.
(e) For a district that received a payment under section 22c
as that section was in effect for 2001-2002, the district's 2001-
2002 foundation allowance shall be considered to have been an
amount equal to the sum of the district's actual 2001-2002
foundation allowance as otherwise calculated under this section
plus the per pupil amount of the district's equity payment for
2001-2002 under section 22c as that section was in effect for 2001-
2002.
(f) For a district that received a payment under section 22c
as that section was in effect for 2006-2007, the district's 2006-
2007 foundation allowance shall be considered to have been an
amount equal to the sum of the district's actual 2006-2007
foundation allowance as otherwise calculated under this section
plus the per pupil amount of the district's equity payment for
2006-2007 under section 22c as that section was in effect for 2006-
2007.
(4) Except as otherwise provided in this subsection, the state
portion of a district's foundation allowance is an amount equal to
the district's foundation allowance or the basic foundation
allowance for the current state fiscal year, whichever is less,
minus the difference between the sum of the product of the taxable
value per membership pupil of all property in the district that is
nonexempt property times the district's certified mills and, for a
district with certified mills exceeding 12, the product of the
taxable value per membership pupil of property in the district that
is commercial personal property times the certified mills minus 12
mills and the quotient of the ad valorem property tax revenue of
the district captured under tax increment financing acts divided by
the district's membership excluding special education pupils. For a
district described in subsection (3)(c), the state portion of the
district's foundation allowance is an amount equal to $6,962.00
plus the difference between the district's foundation allowance for
the current state fiscal year and the district's foundation
allowance for 1998-99, minus the difference between the sum of the
product of the taxable value per membership pupil of all property
in the district that is nonexempt property times the district's
certified mills and, for a district with certified mills exceeding
12, the product of the taxable value per membership pupil of
property in the district that is commercial personal property times
the certified mills minus 12 mills and the quotient of the ad
valorem property tax revenue of the district captured under tax
increment financing acts divided by the district's membership
excluding special education pupils. For a district that has a
millage reduction required under section 31 of article IX of the
state constitution of 1963, the state portion of the district's
foundation allowance shall be calculated as if that reduction did
not occur.
(5) The allocation calculated under this section for a pupil
shall be based on the foundation allowance of the pupil's district
of residence. However, for a pupil enrolled in a district other
than the pupil's district of residence, if the foundation allowance
of the pupil's district of residence has been adjusted pursuant to
subsection
(19) (13), the allocation
calculated under this section
shall
not include the adjustment described in subsection (19) (13).
For a pupil enrolled pursuant to section 105 or 105c in a district
other than the pupil's district of residence, the allocation
calculated under this section shall be based on the lesser of the
foundation allowance of the pupil's district of residence or the
foundation allowance of the educating district. For a pupil in
membership in a K-5, K-6, or K-8 district who is enrolled in
another district in a grade not offered by the pupil's district of
residence, the allocation calculated under this section shall be
based on the foundation allowance of the educating district if the
educating district's foundation allowance is greater than the
foundation allowance of the pupil's district of residence. The
calculation under this subsection shall take into account a
district's per pupil allocation under section 20j(2).
(6) For 2007-2008, subject to subsection (7) and section
22b(3) and except as otherwise provided in this subsection, for
pupils in membership, other than special education pupils, in a
public school academy or a university school, the allocation
calculated under this section is an amount per membership pupil
other than special education pupils in the public school academy or
university school equal to the sum of the local school operating
revenue per membership pupil other than special education pupils
for the district in which the public school academy or university
school is located and the state portion of that district's
foundation allowance, or $7,475.00, whichever is less. Beginning in
2008-2009, subject to subsection (7) and section 22b(3) and except
as otherwise provided in this subsection, for pupils in membership,
other than special education pupils, in a public school academy or
a university school, the allocation calculated under this section
is an amount per membership pupil other than special education
pupils in the public school academy or university school equal to
the sum of the local school operating revenue per membership pupil
other than special education pupils for the district in which the
public school academy or university school is located and the state
portion of that district's foundation allowance, or the state
maximum public school academy allocation, whichever is less.
Notwithstanding section 101, for a public school academy that
begins operations after the pupil membership count day, the amount
per membership pupil calculated under this subsection shall be
adjusted by multiplying that amount per membership pupil by the
number of hours of pupil instruction provided by the public school
academy after it begins operations, as determined by the
department, divided by the minimum number of hours of pupil
instruction required under section 101(3). The result of this
calculation shall not exceed the amount per membership pupil
otherwise calculated under this subsection.
(7) If more than 25% of the pupils residing within a district
are in membership in 1 or more public school academies located in
the district, then the amount per membership pupil calculated under
this section for a public school academy located in the district
shall be reduced by an amount equal to the difference between the
sum of the product of the taxable value per membership pupil of all
property in the district that is nonexempt property times the
district's certified mills and, for a district with certified mills
exceeding 12, the product of the taxable value per membership pupil
of property in the district that is commercial personal property
times the certified mills minus 12 mills and the quotient of the ad
valorem property tax revenue of the district captured under tax
increment financing acts divided by the district's membership
excluding special education pupils, in the school fiscal year
ending in the current state fiscal year, calculated as if the
resident pupils in membership in 1 or more public school academies
located in the district were in membership in the district. In
order to receive state school aid under this act, a district
described in this subsection shall pay to the authorizing body that
is the fiscal agent for a public school academy located in the
district for forwarding to the public school academy an amount
equal to that local school operating revenue per membership pupil
for each resident pupil in membership other than special education
pupils in the public school academy, as determined by the
department.
(8) If a district
does not receive an amount calculated under
subsection
(9); if the number of mills the district may levy on a
principal
residence, qualified agricultural property, qualified
forest
property, industrial personal property, and commercial
personal
property under section 1211 of the revised school code,
MCL
380.1211, is 0.5 mills or less; and if the district elects not
to
levy those mills, the district instead shall receive a separate
supplemental
amount calculated under this subsection in an amount
equal
to the amount the district would have received had it levied
those
mills, as determined by the department of treasury. A
district
shall not receive a separate supplemental amount
calculated
under this subsection for a fiscal year unless in the
calendar
year ending in the fiscal year the district levies the
district's
certified mills on property that is nonexempt property.
(9) For a
district that had combined state and local revenue
per
membership pupil in the 1993-94 state fiscal year of more than
$6,500.00
and that had fewer than 350 pupils in membership, if the
district
elects not to reduce the number of mills from which a
principal
residence, qualified agricultural property, qualified
forest
property, industrial personal property, and commercial
personal
property are exempt and not to levy school operating taxes
on
a principal residence, qualified agricultural property,
qualified
forest property, industrial personal property, and
commercial
personal property as provided in section 1211 of the
revised
school code, MCL 380.1211, and not to levy school operating
taxes
on all property as provided in section 1211(2) of the revised
school
code, MCL 380.1211, there is calculated under this
subsection
for 1994-95 and each succeeding fiscal year a separate
supplemental
amount in an amount equal to the amount the district
would
have received per membership pupil had it levied school
operating
taxes on a principal residence, qualified agricultural
property,
qualified forest property, industrial personal property,
and
commercial personal property at the rate authorized for the
district
under section 1211 of the revised school code, MCL
380.1211,
and levied school operating taxes on all property at the
rate
authorized for the district under section 1211(2) of the
revised
school code, MCL 380.1211, as determined by the department
of
treasury. If in the calendar year ending in the fiscal year a
district
does not levy the district's certified mills on property
that
is nonexempt property, the amount calculated under this
subsection
will be reduced by the same percentage as the millage
actually
levied compares to the district's certified mills.
(10) (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
average of the foundation allowances of each of the original or
affected districts, calculated as provided in this section,
weighted as to the percentage of pupils in total membership in the
resulting district who reside in the geographic area of each of the
original or affected districts. The calculation under this
subsection shall take into account a district's per pupil
allocation under section 20j(2).
(11) (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.
(12) (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.
(13) (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, MCL18.1367b, 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. However, for
2008-2009,
the index shall be 1.00. If a
consensus index is not
determined at the revenue estimating conference, the principals of
the revenue estimating conference shall report their estimates to
the house and senate subcommittees responsible for school aid
appropriations not later than 7 days after the conclusion of the
revenue conference.
(14) (12) If the principals at the revenue estimating
conference reach a consensus on the index described in
subsection(13)(11)(c), the lowest foundation allowance among all
districts for the subsequent state fiscal year shall be at least
the amount of that consensus index multiplied by the lowest
foundation allowance among all districts for the immediately
preceding state fiscal year.
(15) If at the
January revenue estimating conference it is
estimated
that pupil membership, excluding intermediate district
membership,
for the subsequent state fiscal year will be greater
than
101% of the pupil membership, excluding intermediate district
membership,
for the current state fiscal year, then it is the
intent
of the legislature that the executive budget proposal for
the
school aid budget for the subsequent state fiscal year include
a
general fund/general purpose allocation sufficient to support the
membership
in excess of 101% of the current year pupil membership.
(16) For a
district that had combined state and local revenue
per
membership pupil in the 1993-94 state fiscal year of more than
$6,500.00,
that had fewer than 7 pupils in membership in the 1993-
94
state fiscal year, that has at least 1 child educated in the
district
in the current state fiscal year, and that levies the
number
of mills of school operating taxes authorized for the
district
under section 1211 of the revised school code, MCL
380.1211,
a minimum amount of combined state and local revenue
shall
be calculated for the district as provided under this
subsection.
The minimum amount of combined state and local revenue
for
1999-2000 shall be $67,000.00 plus the district's additional
expenses
to educate pupils in grades 9 to 12 educated in other
districts
as determined and allowed by the department. The minimum
amount
of combined state and local revenue under this subsection,
before
adding the additional expenses, shall increase each fiscal
year
by the same percentage increase as the percentage increase in
the
basic foundation allowance from the immediately preceding
fiscal
year to the current fiscal year. The state portion of the
minimum
amount of combined state and local revenue under this
subsection
shall be calculated by subtracting from the minimum
amount
of combined state and local revenue under this subsection
the
sum of the district's local school operating revenue and an
amount
equal to the product of the sum of the state portion of the
district's
foundation allowance plus the amount calculated under
section
20j times the district's membership. As used in this
subsection,
"additional expenses" means the district's expenses for
tuition
or fees, not to exceed the basic foundation allowance for
the
current state fiscal year, plus a room and board stipend not to
exceed
$10.00 per school day for each pupil in grades 9 to 12
educated
in another district, as approved by the department.
(17) For a
district in which 7.75 mills levied in 1992 for
school
operating purposes in the 1992-93 school year were not
renewed
in 1993 for school operating purposes in the 1993-94 school
year,
the district's combined state and local revenue per
membership
pupil shall be recalculated as if that millage reduction
did
not occur and the district's foundation allowance shall be
calculated
as if its 1994-95 foundation allowance had been
calculated
using that recalculated 1993-94 combined state and local
revenue
per membership pupil as a base. A district is not entitled
to
any retroactive payments for fiscal years before 2000-2001 due
to
this subsection.
(18) For a
district in which an industrial facilities
exemption
certificate that abated taxes on property with a state
equalized
valuation greater than the total state equalized
valuation
of the district at the time the certificate was issued or
$700,000,000.00,
whichever is greater, was issued under 1974 PA
198,
MCL 207.551 to 207.572, before the calculation of the
district's
1994-95 foundation allowance, the district's foundation
allowance
for 2002-2003 is an amount equal to the sum of the
district's
foundation allowance for 2002-2003, as otherwise
calculated
under this section, plus $250.00.
(19) (13) For a district that received a grant under former
section 32e for 2001-2002, the district's foundation allowance for
2002-2003 and each succeeding fiscal year shall be adjusted to be
an amount equal to the sum of the district's foundation allowance,
as otherwise calculated under this section, plus the quotient of
100% of the amount of the grant award to the district for 2001-2002
under former section 32e divided by the number of pupils in the
district's membership for 2001-2002 who were residents of and
enrolled in the district. Except as otherwise provided in this
subsection, a district qualifying for a foundation allowance
adjustment under this subsection shall use the funds resulting from
this adjustment for at least 1 of grades K to 3 for purposes
allowable under former section 32e as in effect for 2001-2002, and
may also use these funds for an early intervening program described
in
subsection (20) (14). For an
individual school or schools
operated by a district qualifying for a foundation allowance under
this subsection that have been determined by the department to meet
the adequate yearly progress standards of the federal no child left
behind act of 2001, Public Law 107-110, in both mathematics and
English language arts at all applicable grade levels for all
applicable subgroups, the district may submit to the department an
application for flexibility in using the funds resulting from this
adjustment that are attributable to the pupils in the school or
schools. The application shall identify the affected school or
schools and the affected funds and shall contain a plan for using
the funds for specific purposes identified by the district that are
designed to reduce class size, but that may be different from the
purposes otherwise allowable under this subsection. The department
shall approve the application if the department determines that the
purposes identified in the plan are reasonably designed to reduce
class size. If the department does not act to approve or disapprove
an application within 30 days after it is submitted to the
department, the application is considered to be approved. If an
application for flexibility in using the funds is approved, the
district may use the funds identified in the application for any
purpose identified in the plan.
(20) (14) An early intervening program that uses funds
resulting
from the adjustment under subsection (19) (13) shall meet
either or both of the following:
(a) Shall monitor individual pupil learning for pupils in
grades K to 3 and provide specific support or learning strategies
to pupils in grades K to 3 as early as possible in order to reduce
the need for special education placement. The program shall include
literacy and numeracy supports, sensory motor skill development,
behavior supports, instructional consultation for teachers, and the
development of a parent/school learning plan. Specific support or
learning strategies may include support in or out of the general
classroom in areas including reading, writing, math, visual memory,
motor skill development, behavior, or language development. These
would be provided based on an understanding of the individual
child's learning needs.
(b) Shall provide early intervening strategies for pupils in
grades K to 3 using schoolwide systems of academic and behavioral
supports and shall be scientifically research-based. The strategies
to be provided shall include at least pupil performance indicators
based upon response to intervention, instructional consultation for
teachers, and ongoing progress monitoring. A schoolwide system of
academic and behavioral support should be based on a support team
available to the classroom teachers. The members of this team could
include the principal, special education staff, reading teachers,
and other appropriate personnel who would be available to
systematically study the needs of the individual child and work
with the teacher to match instruction to the needs of the
individual child.
(21) For a
district that levied 1.9 mills in 1993 to finance
an
operating deficit, the district's foundation allowance shall be
calculated
as if those mills were included as operating mills in
the
calculation of the district's 1994-1995 foundation allowance. A
district
is not entitled to any retroactive payments for fiscal
years
before 2006-2007 due to this subsection. A district receiving
an
adjustment under this subsection shall not receive more than
$800,000.00
for a fiscal year as a result of this adjustment.
(22)
For a district that levied 2.23 mills in 1993 to finance an
operating
deficit, the district's foundation allowance shall be
calculated
as if those mills were included as operating mills in
the
calculation of the district's 1994-1995 foundation allowance. A
district
is not entitled to any retroactive payments for fiscal
years
before 2006-2007 due to this subsection. A district receiving
an
adjustment under this subsection shall not receive more than
$500,000.00
for a fiscal year as a result of this adjustment.
(23) (15) Payments to districts, university schools, or
public
school academies shall not be made under this section. Rather, the
calculations under this section shall be used to determine the
amount of state payments under section 22b.
(24) (16) If an amendment to section 2 of article VIII of the
state constitution of 1963 allowing state aid to some or all
nonpublic schools is approved by the voters of this state, each
foundation allowance or per pupil payment calculation under this
section may be reduced.
(25) (17) 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) "Immediately preceding state fiscal year" means the state
fiscal year immediately preceding the current state fiscal year.
(f) "Local school operating revenue" means school operating
taxes levied under section 1211 of the revised school code, MCL
380.1211.
(g) "Local school operating revenue per membership pupil"
means a district's local school operating revenue divided by the
district's membership excluding special education pupils.
(h) "Maximum public school academy allocation" EXCEPT AS
OTHERWISE PROVIDED IN THIS SUBDIVISION, means the maximum per-pupil
allocation as calculated by adding the highest per-pupil allocation
among all public school academies for the immediately preceding
state fiscal year plus the difference between twice the dollar
amount of the adjustment from the immediately preceding state
fiscal year to the current state fiscal year made in the basic
foundation allowance and [(the dollar amount of the adjustment from
the immediately preceding state fiscal year to the current state
fiscal year made in the basic foundation allowance minus $20.00)
times (the difference between the highest per-pupil allocation
among all public school academies for the immediately preceding
state fiscal year and the sum of $7,108.00 plus the total dollar
amount of all adjustments made from 2006-2007 to the immediately
preceding state fiscal year in the lowest per-pupil allocation
among all public school academies) divided by the difference
between the basic foundation allowance for the current state fiscal
year and the sum of $7,108.00 plus the total dollar amount of all
adjustments made from 2006-2007 to the immediately preceding state
fiscal year in the lowest per-pupil allocation among all public
school academies]. FOR 2009-2010, "MAXIMUM PUBLIC SCHOOL ACADEMY
ALLOCATION" MEANS $7,580.00.
(i) "Membership" means the definition of that term under
section 6 as in effect for the particular fiscal year for which a
particular calculation is made.
(j) "Nonexempt property" means property that is not a
principal residence, qualified agricultural property, qualified
forest property, industrial personal property, or commercial
personal property.
(k) "Principal residence", "qualified agricultural property",
"qualified forest property", "industrial personal property", and
"commercial personal property" mean those terms as defined in
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd, and section 1211 of the revised school code, MCL 380.1211.
(l) "School operating purposes" means the purposes included in
the operation costs of the district as prescribed in sections 7 and
18.
(m) "School operating taxes" means local ad valorem property
taxes levied under section 1211 of the revised school code, MCL
380.1211, and retained for school operating purposes.
(n) "Tax increment financing acts" means 1975 PA 197, MCL
125.1651 to 125.1681, the tax increment finance authority act, 1980
PA 450, MCL 125.1801 to 125.1830, the local development financing
act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,
or the corridor improvement authority act, 2005 PA 280, MCL
125.2871 to 125.2899.
(o) "Taxable value per membership pupil" means taxable value,
as certified by the department of treasury, for the calendar year
ending in the current state fiscal year divided by the district's
membership excluding special education pupils for the school year
ending in the current state fiscal year.
Sec. 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 2008-2009 2009-2010, 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. 20j. (1) Foundation allowance supplemental payments for
2008-2009 2009-2010
to districts that in the 1994-95 state fiscal
year had a foundation allowance greater than $6,500.00 shall be
calculated under this section.
(2) FOR 2008-2009, The per pupil allocation to each district
under this section shall be the difference between the basic
foundation allowance for the 1998-99 state fiscal year and
$7,204.00 less $271.00 minus the dollar amount of the adjustment
from the 1998-99 state fiscal year to 2007-2008 in the district's
foundation allowance. BEGINNING IN 2009-2010, THE PER PUPIL
ALLOCATION TO EACH DISTRICT UNDER THIS SECTION SHALL BE THE
DISTRICT’S PER-PUPIL ALLOCATION UNDER THIS SECTION FOR THE 2008-
2009 STATE FISCAL YEAR MINUS (THE DIFFERENCE BETWEEN THE BASIC
FOUNDATION ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL
YEAR AND THE SUM OF THE DISTRICT’S FOUNDATION ALLOWANCE AS
CALCULATED UNDER SECTION 20 AND THE AMOUNT OF THE PER-PUPIL
ALLOCATION UNDER THIS SECTION FOR THE IMMEDIATELY PRECEDING STATE
FISCAL YEAR DIVIDED BY THE BASIC FOUNDATION ALLOWANCE FOR THE
IMMEDIATELY PRECEDING STATE FISCAL YEAR TIMES THE DISTRICT’S PER-
PUPIL ALLOCATION UNDER THIS SECTION FOR THE 2008-2009 STATE FISCAL
YEAR TIMES 1.8).
(3) If a district's local revenue per pupil does not exceed
the sum of its foundation allowance under section 20 plus the per
pupil allocation under subsection (2), the total payment to the
district calculated under this section shall be the product of the
per pupil allocation under subsection (2) multiplied by the
district's membership excluding special education pupils. If a
district's local revenue per pupil exceeds the foundation allowance
under section 20 but does not exceed the sum of the foundation
allowance under section 20 plus the per pupil allocation under
subsection (2), the total payment to the district calculated under
this section shall be the product of the difference between the sum
of the foundation allowance under section 20 plus the per pupil
allocation under subsection (2) minus the local revenue per pupil
multiplied by the district's membership excluding special education
pupils. If a district's local revenue per pupil exceeds the sum of
the foundation allowance under section 20 plus the per pupil
allocation under subsection (2), there is no payment calculated
under this section for the district.
(4) Payments to districts shall not be made under this
section. Rather, the calculations under this section shall be made
and used to determine the amount of state payments under section
22b.
Sec. 22a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $5,951,000,000.00
$5,998,400,000.00 for 2007-2008 and an amount not to exceed
$6,092,000,000.00
for 2008-2009 AND AN AMOUNT
NOT TO EXCEED
$5,849,300,000.00 FOR 2009-2010 for payments to districts,
qualifying university schools, and qualifying public school
academies to guarantee each district, qualifying university school,
and qualifying public school academy an amount equal to its 1994-95
total state and local per pupil revenue for school operating
purposes under section 11 of article IX of the state constitution
of 1963. Pursuant to section 11 of article IX of the state
constitution of 1963, this guarantee does not apply to a district
in a year in which the district levies a millage rate for school
district operating purposes less than it levied in 1994. However,
subsection (2) applies to calculating the payments under this
section. Funds allocated under this section that are not expended
in the state fiscal year for which they were allocated, as
determined by the department, may be used to supplement the
allocations under sections 22b and 51c in order to fully fund those
calculated allocations for the same fiscal year.
(2) To ensure that a district receives an amount equal to the
district's 1994-95 total state and local per pupil revenue for
school operating purposes, there is allocated to each district a
state portion of the district's 1994-95 foundation allowance in an
amount calculated as follows:
(a) Except as otherwise provided in this subsection, the state
portion of a district's 1994-95 foundation allowance is an amount
equal to the district's 1994-95 foundation allowance or $6,500.00,
whichever is less, minus the difference between the sum of the
product of the taxable value per membership pupil of all property
in the district that is nonexempt property times the district's
certified mills and, for a district with certified mills exceeding
12, the product of the taxable value per membership pupil of
property in the district that is commercial personal property times
the certified mills minus 12 mills and the quotient of the ad
valorem property tax revenue of the district captured under tax
increment financing acts divided by the district's membership. For
a district that has a millage reduction required under section 31
of article IX of the state constitution of 1963, the state portion
of the district's foundation allowance shall be calculated as if
that reduction did not occur.
(b) For a district that had a 1994-95 foundation allowance
greater than $6,500.00, the state payment under this subsection
shall be the sum of the amount calculated under subdivision (a)
plus the amount calculated under this subdivision. The amount
calculated under this subdivision shall be equal to the difference
between the district's 1994-95 foundation allowance minus $6,500.00
and the current year hold harmless school operating taxes per
pupil. If the result of the calculation under subdivision (a) is
negative, the negative amount shall be an offset against any state
payment calculated under this subdivision. If the result of a
calculation under this subdivision is negative, there shall not be
a state payment or a deduction under this subdivision. The taxable
values per membership pupil used in the calculations under this
subdivision are as adjusted by ad valorem property tax revenue
captured under tax increment financing acts divided by the
district's membership.
(3) Beginning in 2003-2004, for pupils in membership in a
qualifying public school academy or qualifying university school,
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, or to the board
of the public university operating the qualifying university
school, an amount equal to the 1994-95 per pupil payment to the
qualifying public school academy or qualifying university school
under section 20.
(4) A district, qualifying university school, or qualifying
public school academy may use funds allocated under this section in
conjunction with any federal funds for which the district,
qualifying university school, or qualifying public school academy
otherwise would be eligible.
(5) For a district that is formed or reconfigured after June
1, 2000 by consolidation of 2 or more districts or by annexation,
the resulting district's 1994-95 foundation allowance under this
section beginning after the effective date of the consolidation or
annexation shall be the average of the 1994-95 foundation
allowances of each of the original or affected districts,
calculated as provided in this section, weighted as to the
percentage of pupils in total membership in the resulting district
in the state fiscal year in which the consolidation takes place who
reside in the geographic area of each of the original districts. If
an affected district's 1994-95 foundation allowance is less than
the 1994-95 basic foundation allowance, the amount of that
district's 1994-95 foundation allowance shall be considered for the
purpose of calculations under this subsection to be equal to the
amount of the 1994-95 basic foundation allowance.
(6) 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.
(e) "Hold harmless millage" means, for a district with a 1994-
95 foundation allowance greater than $6,500.00, the number of mills
by which the exemption from the levy of school operating taxes on a
homestead, qualified agricultural property, qualified forest
property, industrial personal property, and commercial personal
property could be reduced as provided in section 1211 of the
revised school code, MCL 380.1211, and the number of mills of
school operating taxes that could be levied on all property as
provided in section 1211(2) of the revised school code, MCL
380.1211, as certified by the department of treasury for the 1994
tax year.
(f) "Homestead" means that term as defined in section 1211 of
the revised school code, MCL 380.1211.
(g) "Membership" means the definition of that term under
section 6 as in effect for the particular fiscal year for which a
particular calculation is made.
(h) "Nonexempt property" means property that is not a
principal residence, qualified agricultural property, qualified
forest property, industrial personal property, or commercial
personal property.
(i) "Qualified agricultural property" means that term as
defined in section 1211 of the revised school code, MCL 380.1211.
(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) "Qualifying university school" means a university school
that was in operation in the 1994-95 school year and is in
operation in the current fiscal year.
(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.
(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