HB-4325, As Passed House, May 26, 2011

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4325

 

 

 

 

 

 

 

 

 

 

 

 

A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending the title and sections 2, 6, 11, 11a, 11g, 11j, 11k,

 

11m, 15, 18, 20, 20d, 22a, 22b, 22d, 22e, 24, 24a, 24c, 26a, 26b,

 

31a, 31d, 31f, 32b, 32d, 32j, 39, 39a, 40, 51a, 51c, 51d, 53a, 54,

 

56, 61a, 62, 74, 81, 93, 94a, 98, 99, 104, 107, 109, 147, and 152a

 

(MCL 388.1602, 388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j,

 

388.1611k, 388.1611m, 388.1615, 388.1618, 388.1620, 388.1620d,

 

388.1622a, 388.1622b, 388.1622d, 388.1622e, 388.1624, 388.1624a,

 

388.1624c, 388.1626a, 388.1626b, 388.1631a, 388.1631d, 388.1631f,

 

388.1632b, 388.1632d, 388.1632j, 388.1639, 388.1639a, 388.1640,

 

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

 

388.1661a, 388.1662, 388.1674, 388.1681, 388.1693, 388.1694a,

 


388.1698, 388.1699, 388.1704, 388.1707, 388.1709, 388.1747, and

 

388.1752a), the title as amended by 2003 PA 158, sections 6, 11a,

 

11g, 11k, 15, 18, 20, 20d, 22b, 22d, 24, 24a, 26b, 31a, 31d, 31f,

 

32b, 32d, 32j, 39, 51c, 51d, 53a, 54, 61a, 62, 74, 98, 99, 107, and

 

147 as amended by 2010 PA 110, sections 11, 11m, 22a, 51a, and 56

 

as amended and section 152a as added by 2010 PA 217, sections 11j,

 

22e, 24c, 26a, 39a, 81, 94a, and 104 as amended and section 93 as

 

added by 2010 PA 204, section 40 as amended by 2000 PA 297, and

 

section 109 as amended by 1994 PA 283, by amending the heading of

 

article I, and by adding sections 12, 22f, 147a, 147b and articles

 

II, III, and IV; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

An act to make appropriations to aid in the support of the

 

public schools, and the intermediate school districts, community

 

colleges, and public universities of the state; to make

 

appropriations for certain other purposes relating to education; to

 

provide for the disbursement of the appropriations; to supplement

 

the school aid fund by the levy and collection of certain taxes; to

 

authorize the issuance of certain bonds and provide for the

 

security of those bonds; to prescribe the powers and duties of

 

certain state departments, the state board of education, and

 

certain other boards and officials; to create certain funds and

 

provide for their expenditure; to prescribe penalties; and to

 

repeal acts and parts of acts.

 

Article 1ARTICLE I

 

STATE AID TO PUBLIC SCHOOLS, EARLY CHILDHOOD, AND ADULT EDUCATION

 

Sec. 2. For the purposes of this act As used in this article


 

and article IV, the words and phrases defined in sections 3 to 6

 

have the meanings ascribed to them in those sections.

 

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

 

district or by an intermediate district for special education

 

pupils from several districts in programs for pupils with autism

 

spectrum disorder, pupils with severe cognitive impairment, pupils

 

with moderate cognitive impairment, pupils with severe multiple

 

impairments, pupils with hearing impairment, pupils with visual

 

impairment, and pupils with physical impairment or other health

 

impairment. Programs for pupils with emotional impairment housed in

 

buildings that do not serve regular education pupils also qualify.

 

Unless otherwise approved by the department, a center program

 

either shall serve all constituent districts within an intermediate

 

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

 

pupils residing in the operating district. In addition, special

 

education center program pupils placed part-time in noncenter

 

programs to comply with the least restrictive environment

 

provisions of section 612 of part B of the individuals with

 

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

 

program pupils for pupil accounting purposes for the time scheduled

 

in either a center program or a noncenter program.

 

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

 

annual completion and pupil dropout rate that is calculated by the

 

center pursuant to nationally recognized standards.

 

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

 

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

 


the district for the immediately preceding school year, adjusted

 

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

 

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

 

credential of equal status.

 

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

 

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

 

school, or intermediate district the sum of the product of .75 .90

 

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

 

actually enrolled and in regular daily attendance on the pupil

 

membership count day for the current school year, plus the product

 

of .25 .10 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. For the purposes of

 

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

 

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

 

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

 

school code, MCL 380.553a, a pupil's participation in the cyber

 

school's educational program is considered regular daily

 

attendance. The amount of the foundation allowance for a pupil in

 

membership is determined under section 20. In making the

 

calculation of membership, all of the following, as applicable,

 

apply to determining the membership of a district, 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 career and technical education

 

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

 

single district or in an area vocational-technical education

 

program established pursuant to section 690 of the revised school

 

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

 

residence.

 

(g) A pupil enrolled in a 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 as follows:

 

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

 

instruction in a special education program or service approved by

 

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

 

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

 

year shall be counted in membership.

 


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

 

the following may be counted in membership:

 

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

 

education high school diploma program, that is primarily focused on

 

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

 

population of more than 750,000.500,000.

 

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

 

entered school.

 

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

 

current school year.

 

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

 

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

 

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

 

counted in membership unless the individual is a student with a

 

disability as defined in R 340.1702 of the Michigan administrative

 

code. An individual participating in a job training program funded

 

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

 

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

 

department of energy, labor, and economic growth, workforce

 

development agency, 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 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. However, beginning in 2012-2013, 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 the same 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) A pupil enrolled in an alternative or disciplinary

 

education program described in section 25 shall be counted in

 

membership in the district or public school academy that is

 

educating the pupil.

 

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

 

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

 

with its authorizing body is revoked or the public school academy

 

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

 

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

 

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

 

the first pupil membership count day or supplemental count day,

 

whichever is first, occurring after operations resume, plus the

 

product of .25 .10 times the final audited count from the most

 

recent pupil membership count day or supplemental count day that

 

occurred before suspending operations, as determined by the

 

superintendent.

 

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

 

as otherwise calculated under this subsection, would be less than

 

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

 

mile, as determined by the department, and, beginning in 2007-2008,

 

if the district does not receive funding under section 22d(2), the

 

district's membership shall be considered to be the membership

 

figure calculated under this subdivision. If a district educates

 

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

 

a contiguous district that does not operate grades 9 to 12 and if 1

 

or both of the affected districts request the department to use the

 

determination allowed under this sentence, the department shall

 

include the square mileage of both districts in determining the

 

number of pupils per square mile for each of the districts for the

 

purposes of this subdivision. The membership figure calculated

 

under this subdivision is the greater of the following:

 

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

 


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

 

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

 

otherwise calculated under this subsection, and dividing the sum of

 

those 3 membership figures by 3.

 

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

 

otherwise calculated under this subsection.

 

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

 

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

 

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

 

adjust the membership count of the district 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

 

early childhood special education services under R 340.1755 of the

 

Michigan administrative code shall be determined by dividing the

 

number of hours of service scheduled and provided per year per

 

pupil by 180.

 

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

 


Labor day who is enrolled in an intermediate district program that

 

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

 

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

 

attended by the pupil before Labor day.

 

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

 

membership on the pupil membership count day in a middle college

 

program, 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.

 

(dd) A district that educates a pupil who attends a United

 

States Olympic education center may count the pupil in membership

 

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

 

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

 

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

 

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

 

district.

 

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

 

revised school code.

 

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

 

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

 

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

 

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

 


following:

 

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

 

accordance with section 166b.

 

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

 

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

 

(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 works at the

 

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

 

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

 

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

 

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

 

or legal ward.

 

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

 

expelling district and is reinstated by another school board under

 

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

 

380.1311a.

 

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

 

district of residence in a middle college program 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.

 

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

 

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

 

school code, MCL 380.1148.

 

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

 

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

 

adequate yearly progress under the no child left behind act of

 


2001, Public Law 107-110.

 

However, if a district educates pupils who reside in another

 

district and if the primary instructional site for those pupils is

 

established by the educating district after 2009-2010 and is

 

located within the boundaries of that other district, the educating

 

district must have the approval of that other district to count

 

those pupils in membership.

 

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

 

district means:

 

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

 

Wednesday after Labor day in October each school year or, for a

 

district or building in which school is not in session on that

 

Wednesday due to conditions not within the control of school

 

authorities, with the approval of the superintendent, the

 

immediately following day on which school is in session in the

 

district or building.

 

(b) For a district or intermediate district maintaining school

 

during the entire school year, the following days:

 

(i) Fourth Wednesday in July.

 

(ii) Fourth First Wednesday after Labor day.in October.

 

(iii) Second Wednesday in February.

 

(iv) Fourth Wednesday in April.

 

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

 

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

 

receiving instruction in all classes for which they are enrolled on

 

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

 

applicable. Except as otherwise provided in this subsection, a

 


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

 

enrolled on the pupil membership count day or supplemental count

 

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

 

consecutive school days immediately following the pupil membership

 

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

 

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

 

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

 

pupil membership count day or supplemental count day and who fails

 

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

 

30 calendar days after the pupil membership count day or

 

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

 

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

 

attendance in a district, 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" 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 (o). A pupil's district of residence shall not

 

require a high school tuition pupil, as provided under section 111,

 

to attend another school district after the pupil has been assigned

 

to a school district.

 

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

 

established in section 11 of article IX of the state constitution

 


of 1963.

 

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

 

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

 

PA 206, MCL 211.27a.

 

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

 

instructional print or electronic resource that is selected and

 

approved by the governing board of a district 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.article.

 

(21) "University school" means an instructional program

 

operated by a public university under section 23 that meets the

 

requirements of section 23.

 

Sec. 11. (1) Subject to subsection (5), (3), for the fiscal

 

year ending September 30, 2011, there is appropriated for the

 

public schools of this state and certain other state purposes

 

relating to education the sum of $10,937,260,500.00

 

$10,757,260,500.00 from the state school aid fund and the sum of

 

$18,642,400.00 from the general fund. For the fiscal year ending

 

September 30, 2011, there is also appropriated the remaining

 

balance of the federal funding awarded to this state under title

 

XIV of the American recovery and reinvestment act of 2009, Public

 


Law 111-5, estimated at $184,256,600.00, to be used solely for the

 

purpose of funding the primary funding formula calculated under

 

section 20, in accordance with federal law. Subject to subsection

 

(3), for the fiscal year ending September 30, 2012, there is

 

appropriated for the public schools of this state and certain other

 

state purposes relating to education the sum of $10,887,098,700.00

 

from the state school aid fund and the sum of $118,642,400.00 from

 

the general fund. In addition, all other available federal funds,

 

except those otherwise appropriated under section 11p, are

 

appropriated for the fiscal year ending September 30, 2011 and for

 

the fiscal year ending September 30, 2012.

 

(2) The appropriations under this section shall be allocated

 

as provided in this act. article. Money appropriated under this

 

section from the general fund shall be expended to fund the

 

purposes of this act article 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. For 2009-2010 only, if the department determines before

 

bookclosing for the 2009-2010 state fiscal year that the maximum

 

amount appropriated under this section from the state school aid

 

fund for 2009-2010 exceeds the amount necessary to fully fund

 

allocations under this act from the state school aid fund for 2009-

 


2010 and that state support for elementary and secondary education

 

for 2009-2010 will fall below the level of support needed to comply

 

with the maintenance of effort provisions under title XIV of the

 

American recovery and reinvestment act of 2009, Public Law 111-5,

 

then there is appropriated for 2009-2010 from the school aid

 

stabilization fund an amount equal to $30,000,000.00 or the amount

 

that the department determines is necessary for the state support

 

for elementary and secondary education to meet the level of support

 

needed to comply with the maintenance of effort provisions under

 

title XIV of the American recovery and reinvestment act of 2009,

 

Public Law 111-5, whichever is greater. The department shall use

 

any funds appropriated under this subsection as follows:

 

(a) First, to allocate $10,000,000.00 to provide funding to

 

each intermediate district in an amount equal to the product of

 

14.75% multiplied by the amount of funding allocated to that

 

intermediate district under section 81 for 2009-2010 under 2010 PA

 

110.

 

(b) Second, to allocate the amount necessary, estimated at

 

$10,000,000.00, to provide funding under this subdivision to

 

districts for which the amount of per-pupil funding calculated and

 

allocated under section 11p(2) is less than $154.00. The payment to

 

a district under this subdivision is an amount equal to the

 

difference between $154.00 and the per-pupil funding amount

 

calculated and allocated under section 11p(2) for the district,

 

multiplied by the district's 2010-2011 membership used for the

 

October 2010 payment.

 

(c) Third, to allocate any remaining funds to reduce the

 


amount of the per-pupil reduction under section 11d(1) for 2009-

 

2010.

 

(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,

 

56, and 152a 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, 53a, and 152a, 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, 56, and 152a, 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.

 

(3) (5) Any general fund allocations under this act article

 

that are not expended by the end of the state fiscal year are

 

transferred to the school aid stabilization fund created under

 

section 11a.

 

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

 

a separate account within the state school aid fund established by

 

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

 


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

 

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

 

state treasurer shall deposit into the school aid stabilization

 

fund all of the following:

 

(a) Unexpended and unencumbered state school aid fund revenue

 

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

 

the bookclosing for that fiscal year.

 

(b) Money statutorily dedicated to the school aid

 

stabilization fund.

 

(c) Money appropriated to the school aid stabilization fund.

 

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

 

not be expended without a specific appropriation from the school

 

aid stabilization fund. Money in the school aid stabilization fund

 

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

 

money may be expended.

 

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

 

school aid stabilization fund. The state treasurer shall credit to

 

the school aid stabilization fund interest and earnings from fund

 

investments.

 

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

 

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

 

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

 

general fund.

 

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

 

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

 

available for expenditure from the state school aid fund for that

 

fiscal year, there is appropriated from the school aid

 


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

 

the projected shortfall as determined by the department of

 

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

 

stabilization fund. If the money in the school aid stabilization

 

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

 

shortfall, the state budget director shall notify the legislature

 

as required under section 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 2010-2011, 2011-2012, in addition to the

 

appropriations in section 11, there is appropriated from the school

 

aid stabilization fund to the state school aid fund the amount

 

necessary to fully fund the allocations under this act.article.

 

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

 

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

 

for the fiscal year ending September 30, 2011 2012 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 article are not

 

intended to admit liability or waive any defense that is or would

 

be available to this state or its agencies, employees, or agents in

 

any litigation or future litigation with a district or intermediate

 

district regarding these claims or potential claims.

 

(3) The amount paid each fiscal year to each district or

 

intermediate district under this section shall be 1 of the

 

following:

 

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

 

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

 

listed in section 11h for the district or intermediate district

 

through the fiscal year ending September 30, 2013.

 

(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 $5,167,800.00 $93,575,300.00 for

 

2010-2011 2011-2012 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 2010-2011, 2011-2012, there is appropriated from

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

allocated for 2009-2010 an amount not to exceed $12,000,000.00 and

 

for 2010-2011 there is allocated an amount not to exceed

 

$45,000,000.00 $15,000,000.00 and there is allocated for 2011-2012

 

an amount not to exceed $20,000,000.00 for fiscal year cash-flow

 

borrowing costs solely related to the state school aid fund

 

established by section 11 of article IX of the state constitution

 

of 1963.

 

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

 

and allocate for the fiscal year ending September 30, 2013 the same

 

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

 

appropriated and allocated under this article for the fiscal year

 

ending September 30, 2012, as adjusted for changes in pupil

 

membership, taxable values, special education costs, and available

 

revenue. These adjustments will be determined after the January

 

2012 consensus revenue estimating conference.

 


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

 

receive its proper apportionment, the department, upon satisfactory

 

proof that the district or intermediate district was entitled

 

justly, shall apportion the deficiency in the next apportionment.

 

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

 

district has received more than its proper apportionment, the

 

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

 

next apportionment. Notwithstanding any other provision in this

 

act, article, state aid overpayments to a district, other than

 

overpayments in payments for special education or special education

 

transportation, may be recovered from any payment made under this

 

act article 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 article

 

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

 

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

 

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

 

programs and services, there is appropriated for 2010-2011 2011-

 

2012 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, article, each district or other entity shall apply the money

 

received by the district or entity under this act article 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 article the apportionment otherwise due upon a

 

violation by the recipient.

 

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

 

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

 

adopts a subsequent revision to that budget, the district shall

 

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

 

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

 

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

 

prescribed by the department:

 

(a) The annual operating budget and subsequent budget

 

revisions.

 

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

 

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

 

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

 

following 2 pie charts:

 

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

 

following subcategories:

 

(A) Salaries and wages.

 

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

 

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

 


benefits.

 

(C) Retirement benefit costs.

 

(D) All other personnel costs.

 

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

 

following subcategories:

 

(A) Instruction.

 

(B) Support services.

 

(C) Business and administration.

 

(D) Operations and maintenance.

 

(c) Links to all of the following:

 

(i) The current collective bargaining agreement for each

 

bargaining unit.

 

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

 

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

 

other type of benefits that would constitute health care services,

 

offered to any bargaining unit or employee in the district.

 

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

 

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

 

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

 

health benefits act, 2007 PA 106, MCL 124.75.

 

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

 

benefit included in the compensation package for the superintendent

 

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

 

exceeds $100,000.00.

 

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

 

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

 

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

 


in section 5 of 1978 PA 472, MCL 4.415.

 

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

 

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

 

same information in the same manner as required for a district

 

under subsection (2).

 

(4) For the purpose of determining the reasonableness of

 

expenditures and whether a violation of this act article has

 

occurred, all of the following apply:

 

(a) The department shall require that each district and

 

intermediate district have an audit of the district's or

 

intermediate district's financial and pupil accounting records

 

conducted at least annually at the expense of the district or

 

intermediate district, as applicable, by a certified public

 

accountant or by the intermediate district superintendent, as may

 

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

 

first class by a certified public accountant, the intermediate

 

superintendent, or the auditor general of the city.

 

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

 

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

 

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

 

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

 

district may have a pupil accounting field audit conducted

 

biennially but must continue to have desk audits for each pupil

 

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

 

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

 

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

 

fiscal year varies from the district's membership for the

 


immediately preceding fiscal year by less than 5%.

 

(c) An intermediate district's annual financial audit shall be

 

accompanied by the intermediate district's pupil accounting

 

procedures report.

 

(c) (d) A district's or intermediate district's annual

 

financial audit shall include an analysis of the financial and

 

pupil accounting data used as the basis for distribution of state

 

school aid.

 

(d) (e) The pupil and financial accounting records and

 

reports, audits, and management letters are subject to requirements

 

established in the auditing and accounting manuals approved and

 

published by the department.

 

(e) (f) Except as otherwise provided in this subsection, a All

 

of the following shall be done not later than November 15 each

 

year:

 

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

 

with the intermediate district not later than 120 days after the

 

end of each school fiscal year and the department.

 

(ii) The intermediate district shall file the annual financial

 

audit reports for the intermediate district with the department.

 

(iii) The intermediate district shall forward the annual

 

financial enter the pupil membership 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.in the Michigan student data system.

 

(f) (g) The annual financial audit reports and pupil

 


accounting procedures reports shall be available to the public in

 

compliance with the freedom of information act, 1976 PA 442, MCL

 

15.231 to 15.246.

 

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

 

department shall notify the state budget director and the

 

legislative appropriations subcommittees responsible for review of

 

the school aid budget of districts and intermediate districts that

 

have not filed an annual financial audit and pupil accounting

 

procedures report required under this section for the school year

 

ending in the immediately preceding fiscal year.

 

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

 

intermediate district shall submit to the center, in a manner

 

prescribed by the center, annual comprehensive financial data

 

consistent with accounting manuals and charts of accounts approved

 

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

 

report shall also contain the website address where the department

 

can access the report required under section 620 of the revised

 

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

 

prescribed Michigan public school accounting manual chart of

 

accounts includes standard conventions to distinguish expenditures

 

by allowable fund function and object. The functions shall include

 

at minimum categories for instruction, pupil support, instructional

 

staff support, general administration, school administration,

 

business administration, transportation, facilities operation and

 

maintenance, facilities acquisition, and debt service; and shall

 

include object classifications of salary, benefits, including

 

categories for active employee health expenditures, purchased

 


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

 

report the required level of detail consistent with the manual as

 

part of the comprehensive annual financial report. 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.

 

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

 

intermediate district shall file with the department the special

 

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

 

the manner prescribed by the department.

 

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

 

district shall file with the center the transportation expenditure

 

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

 

by the center.

 

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

 

auditing manuals at least annually and shall periodically update

 

those manuals to reflect changes in this act.article.

 

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

 

property using money received under this act, article, the public

 

school academy shall retain ownership of the property unless the

 

public school academy sells the property at fair market value.

 

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

 

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

 


withhold all state school aid due to the district or intermediate

 

district under this act, article, beginning with the next payment

 

due to the district or intermediate district, until the district or

 

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

 

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

 

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

 

the district or intermediate district forfeits the amount withheld.

 

Article 2

 

Sec. 20. (1) For 2009-2010 and for 2010-2011, 2011-2012, the

 

basic foundation allowance is $8,489.00.$8,019.00.

 

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

 

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

 

allowance in the amount specified in subsection (1).

 

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

 

of a district's foundation allowance shall be calculated as

 

follows, using in all calculations the total amount of the

 

district's foundation allowance as calculated before any proration:

 

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

 

immediately preceding state fiscal year that was at least equal to

 

the sum of $7,108.00 plus the total dollar amount of all

 

adjustments made from 2006-2007 to the immediately preceding state

 

fiscal year in the lowest foundation allowance among all districts,

 

but less than the basic foundation allowance for the immediately

 

preceding state fiscal year, the district shall receive a

 

foundation allowance in an amount equal to the sum of the

 

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 and for 2010-2011, 2011-2012, for a

 

district that had a foundation allowance for the immediately

 

preceding state fiscal year that was at least equal to the sum of

 

$7,108.00 plus the total dollar amount of all adjustments made from

 

2006-2007 to the immediately preceding state fiscal year in the

 

lowest foundation allowance among all districts, but less than the

 

basic foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive a foundation allowance in

 

an amount equal to the district's foundation allowance for the

 

immediately preceding state fiscal year. 2010-2011, minus $470.00.

 

However, the foundation allowance for a district that had less than

 

the basic foundation allowance for the immediately preceding state

 

fiscal year shall not exceed the basic foundation allowance for the

 


current state fiscal year.

 

(b) Except as otherwise provided in this subsection, for a

 

district that in the immediately preceding state fiscal year had a

 

foundation allowance in an amount at least equal to the amount of

 

the basic foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive a foundation allowance for

 

2011-2012 in an amount equal to the 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.2010-2011, minus $470.00.

 

(c) Except as otherwise provided in subdivision (d), 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. Except as otherwise provided

 

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

 

1995 state fiscal year had a foundation allowance greater than

 


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

 

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

 

year minus $470.00.

 

(d) If House Bill No. 6212 of the 95th Legislature is enacted

 

into law, then beginning in 2011-2012, for For a district that in

 

the 1994-95 state fiscal year had a foundation allowance greater

 

than $6,500.00 and that had a foundation allowance for the 2009-

 

2010 state fiscal year, as otherwise calculated under this section,

 

that was less than the basic foundation allowance, the district's

 

foundation allowance for 2011-2012 and each succeeding fiscal year

 

shall be considered to be an amount equal to the basic foundation

 

allowance.

 

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

 

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

 

rounded up to the nearest whole dollar.

 

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

 

as that section was in effect for 2001-2002, the district's 2001-

 

2002 foundation allowance shall be considered to have been an

 

amount equal to the sum of the district's actual 2001-2002

 

foundation allowance as otherwise calculated under this section

 

plus the per pupil amount of the district's equity payment for

 

2001-2002 under section 22c as that section was in effect for 2001-

 

2002.

 

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

 

as that section was in effect for 2006-2007, the district's 2006-

 

2007 foundation allowance shall be considered to have been an

 

amount equal to the sum of the district's actual 2006-2007

 


foundation allowance as otherwise calculated under this section

 

plus the per pupil amount of the district's equity payment for

 

2006-2007 under section 22c as that section was in effect for 2006-

 

2007.

 

(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. For the purposes of state law, federal funding awarded

 

to this state under title XIV of the American recovery and

 

reinvestment act of 2009, Public Law 111-5, that is appropriated

 

under section 11 and allocated under section 22b, is considered to

 

be part of the state portion of a district's foundation allowance

 

and is considered to be part of the total state school aid paid to

 

a public school academy.

 

(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), (15), the allocation calculated under this section

 

shall not include the adjustment described in subsection (19).(15).

 

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) Subject to subsection (7) 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 foundation

 

allowance of the district in which the public school academy or

 

university school is located or the state maximum public school

 

academy allocation, whichever is less. However, a public school

 

academy or university school that had an allocation under this

 

subsection before 2009-2010 that was equal to the sum of the local

 

school operating revenue per membership pupil other than special

 

education pupils for the district in which the public school

 

academy or university school is located and the state portion of

 

that district's foundation allowance shall not have that allocation

 

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

 

Notwithstanding section 101, for a public school academy that

 

begins operations after the pupil membership count day, the amount

 

per membership pupil calculated under this subsection shall be

 

adjusted by multiplying that amount per membership pupil by the

 


number of hours of pupil instruction provided by the public school

 

academy after it begins operations, as determined by the

 

department, divided by the minimum number of hours of pupil

 

instruction required under section 101(3). The result of this

 

calculation shall not exceed the amount per membership pupil

 

otherwise calculated under this subsection.

 

(7) 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, article, 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, supportive housing 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, supportive housing 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, supportive

 


housing 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, supportive housing 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.

 

(8) (10) 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).

 

(9) (11) Each fraction used in making calculations under this

 

section shall be rounded to the fourth decimal place and the dollar

 

amount of an increase in the basic foundation allowance shall be

 

rounded to the nearest whole dollar.

 

(10) (12) State payments related to payment of the foundation

 

allowance for a special education pupil are not calculated under

 

this section but are instead calculated under section 51a.

 

(11) (13) To assist the legislature in determining the basic

 

foundation allowance for the subsequent state fiscal year, each

 

revenue estimating conference conducted under section 367b of the

 

management and budget act, 1984 PA 431, MCL 18.1367b, shall

 

calculate a pupil membership factor, a revenue adjustment factor,

 

and an index as follows:

 

(a) The pupil membership factor shall be computed by dividing

 

the estimated membership in the school year ending in the current

 

state fiscal year, excluding intermediate district membership, by

 

the estimated membership for the school year ending in the

 

subsequent state fiscal year, excluding intermediate district

 

membership. If a consensus membership factor is not determined at

 

the revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 


later than 7 days after the conclusion of the revenue conference.

 

(b) The revenue adjustment factor shall be computed by

 

dividing the sum of the estimated total state school aid fund

 

revenue for the subsequent state fiscal year plus the estimated

 

total state school aid fund revenue for the current state fiscal

 

year, adjusted for any change in the rate or base of a tax the

 

proceeds of which are deposited in that fund and excluding money

 

transferred into that fund from the countercyclical budget and

 

economic stabilization fund under the management and budget act,

 

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

 

total school aid fund revenue for the current state fiscal year

 

plus the estimated total state school aid fund revenue for the

 

immediately preceding state fiscal year, adjusted for any change in

 

the rate or base of a tax the proceeds of which are deposited in

 

that fund. If a consensus revenue factor is not determined at the

 

revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

later than 7 days after the conclusion of the revenue conference.

 

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

 

membership factor by the revenue adjustment factor. However, for

 

2009-2010 and for 2010-2011, 2011-2012, the index shall be 1.00.

 

0.93575. If a consensus index is not determined at the revenue

 

estimating conference, the principals of the revenue estimating

 

conference shall report their estimates to the house and senate

 

subcommittees responsible for school aid appropriations not later

 

than 7 days after the conclusion of the revenue conference.

 


(12) (14) If the principals at the revenue estimating

 

conference reach a consensus on the index described in subsection

 

(13)(c), (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.

 

(13) (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. A district receiving an adjustment under this

 

subsection shall not receive as a result of this adjustment an

 

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

 

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

 

be made after 2011-2012.

 

(14) (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. A district receiving

 

an adjustment under this subsection shall not receive as a result

 

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

 

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

 

This adjustment shall not be made after 2011-2012.

 

(15) (19) 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). 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. A district receiving an adjustment

 

under this subsection shall not receive as a result of this

 

adjustment an amount that exceeds 68.5% of the amount the district

 

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

 

adjustment shall not be made after 2011-2012.

 

(20) An early intervening program that uses funds resulting

 

from the adjustment under subsection (19) 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.

 

(16) (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. A district receiving an adjustment under this

 

subsection shall not receive as a result of this adjustment an

 

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

 

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

 

be made after 2011-2012.

 

(17) (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. A district receiving an adjustment under this

 

subsection shall not receive as a result of this adjustment an

 

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

 

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

 

be made after 2011-2012.

 

(18) (23) 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.

 

(19) (24) 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.

 

(20) (26) 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 and 2010-2011, 2011-2012, maximum

 

public school academy allocation means $7,580.00.$7,110.00.

 

(i) "Membership" means the definition of that term under

 

section 6 as in effect for the particular fiscal year for which a

 

particular calculation is made.

 

(j) "Nonexempt property" means property that is not a

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, or commercial personal property.

 

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

 

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

 

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

 

mean those terms as defined in section 1211 of the revised school

 

code, MCL 380.1211.

 

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

 

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

 

18.

 

(m) "School operating taxes" means local ad valorem property

 

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

 

380.1211, and retained for school operating purposes.

 

(n) "Tax increment financing acts" means 1975 PA 197, MCL

 

125.1651 to 125.1681, the tax increment finance authority act, 1980

 

PA 450, MCL 125.1801 to 125.1830, the local development financing

 

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

 


redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

 

or the corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899.

 

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

 

as certified by the department of treasury, for the calendar year

 

ending in the current state fiscal year divided by the district's

 

membership excluding special education pupils for the school year

 

ending in the current state fiscal year.

 

Sec. 20d. In making the final determination required under

 

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

 

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

 

section 20 for 2010-2011, 2011-2012, 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. 22a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $5,796,241,000.00 for 2009-2010

 

and an amount not to exceed $5,764,000,000.00 $5,737,000,000.00 for

 

2010-2011 and an amount not to exceed $5,691,000,000.00 for 2011-

 

2012 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, supportive housing property, industrial personal

 

property, and commercial personal property could be reduced as

 

provided in section 1211 of the revised school code, MCL 380.1211,

 

and the number of mills of school operating taxes that could be

 

levied on all property as provided in section 1211(2) of the

 

revised school code, MCL 380.1211, as certified by the department

 

of treasury for the 1994 tax year.

 

(f) "Homestead", "qualified agricultural property", "qualified

 

forest property", "supportive housing property", "industrial

 

personal property", and "commercial personal property" mean those

 

terms as defined in section 1211 of the revised school code, MCL

 

380.1211.

 

(g) "Membership" means the definition of that term under

 


section 6 as in effect for the particular fiscal year for which a

 

particular calculation is made.

 

(h) "Nonexempt property" means property that is not a

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, or commercial personal property.

 

(i) "Qualifying public school academy" means a public school

 

academy that was in operation in the 1994-95 school year and is in

 

operation in the current state fiscal year.

 

(j) "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.

 

(k) "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.

 

(l) "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.

 

(m) "Taxable value per membership pupil" means each of the

 

following divided by the district's membership:

 

(i) For the number of mills by which the exemption from the

 

levy of school operating taxes on a homestead, qualified

 

agricultural property, qualified forest property, supportive

 


housing property, industrial personal property, and commercial

 

personal property may be reduced as provided in section 1211 of the

 

revised school code, MCL 380.1211, the taxable value of homestead,

 

qualified agricultural property, qualified forest property,

 

supportive housing property, industrial personal property, and

 

commercial personal property for the calendar year ending in the

 

current state fiscal year.

 

(ii) For the number of mills of school operating taxes that may

 

be levied on all property as provided in section 1211(2) of the

 

revised school code, MCL 380.1211, the taxable value of all

 

property for the calendar year ending in the current state fiscal

 

year.

 

Sec. 22b. (1) From the state funds appropriated in section 11,

 

there is allocated for 2009-2010 an amount not to exceed

 

$3,289,000,000.00 and there is allocated for 2010-2011 an amount

 

not to exceed $3,573,500,000.00 $3,558,424,700.00 and there is

 

allocated for 2011-2012 an amount not to exceed $3,032,300,000.00

 

for discretionary nonmandated payments to districts under this

 

section. Funds allocated under this section that are not expended

 

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

 

determined by the department, may be used to supplement the

 

allocations under sections 22a and 51c in order to fully fund those

 

calculated allocations for the same fiscal year.

 

(2) In addition to the funds allocated in subsection (1),

 

there is allocated an amount estimated at $450,000,000.00 for 2009-

 

2010 and there is allocated an amount estimated at $184,256,600.00

 

for 2010-2011 from the federal funds awarded to this state under

 


title XIV of the American recovery and reinvestment act of 2009,

 

Public Law 111-5. These funds shall be distributed in a form and

 

manner determined by the department based on an equal dollar amount

 

per the number of membership pupils used to calculate the final

 

state aid payment of the immediately preceding fiscal year and

 

shall be expended in a manner prescribed by federal law.

 

(3) Subject to subsection (4) and section 11, the allocation

 

to a district under this section shall be an amount equal to the

 

sum of the amounts calculated under sections 20, 20j, 51a(2),

 

51a(3), and 51a(12), minus the sum of the allocations to the

 

district under sections 22a and 51c.

 

(4) In order to receive an allocation under subsection (1),

 

each district shall do all of the following:

 

(a) Administer in each grade level that it operates in grades

 

1 to 5 a standardized assessment approved by the department of

 

grade-appropriate basic educational skills. A district may use the

 

Michigan literacy progress profile to satisfy this requirement for

 

grades 1 to 3. Also, if the revised school code is amended to

 

require annual assessments at additional grade levels, in order to

 

receive an allocation under this section each district shall comply

 

with that requirement.

 

(b) Comply with sections 1278a and 1278b of the revised school

 

code, MCL 380.1278a and 380.1278b.

 

(c) Furnish data and other information required by state and

 

federal law to the center and the department in the form and manner

 

specified by the center or the department, as applicable.

 

(d) Comply with section 1230g of the revised school code, MCL

 


380.1230g.

 

(5) Districts are encouraged to use funds allocated under this

 

section for the purchase and support of payroll, human resources,

 

and other business function software that is compatible with that

 

of the intermediate district in which the district is located and

 

with other districts located within that intermediate district.

 

(6) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this

 

state related to commercial or industrial property tax appeals,

 

including, but not limited to, appeals of classification, that

 

impact revenues dedicated to the state school aid fund.

 

(7) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this

 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be

 

made in full before any proration of remaining payments under this

 

section.

 

(8) It is the intent of the legislature that all

 

constitutional obligations of this state have been fully funded

 

under sections 22a, 31d, 51a, and 51c. 51c, and 152a. If a claim is

 

made by an entity receiving funds under this act article that

 

challenges the legislative determination of the adequacy of this

 

funding or alleges that there exists an unfunded constitutional

 

requirement, the state budget director may escrow or allocate from

 

the discretionary funds for nonmandated payments under this section

 


the amount as may be necessary to satisfy the claim before making

 

any payments to districts under subsection (3). If funds are

 

escrowed, the escrowed funds are a work project appropriation and

 

the funds are carried forward into the following fiscal year. The

 

purpose of the work project is to provide for any payments that may

 

be awarded to districts as a result of litigation. The work project

 

shall be completed upon resolution of the litigation.

 

(9) If the local claims review board or a court of competent

 

jurisdiction makes a final determination that this state is in

 

violation of section 29 of article IX of the state constitution of

 

1963 regarding state payments to districts, the state budget

 

director shall use work project funds under subsection (8) or

 

allocate from the discretionary funds for nonmandated payments

 

under this section the amount as may be necessary to satisfy the

 

amount owed to districts before making any payments to districts

 

under subsection (3).

 

(10) If a claim is made in court that challenges the

 

legislative determination of the adequacy of funding for this

 

state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 

an expedited review of the claim by the local claims review board.

 

If the claim exceeds $10,000,000.00, this state may remove the

 

action to the court of appeals, and the court of appeals shall have

 

and shall exercise jurisdiction over the claim.

 

(11) If payments resulting from a final determination by the

 

local claims review board or a court of competent jurisdiction that

 

there has been a violation of section 29 of article IX of the state

 


constitution of 1963 exceed the amount allocated for discretionary

 

nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional

 

obligations at its next legislative session.

 

(12) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX medicaid funds is

 

filed against this state, then, for the purpose of addressing

 

potential liability under such a lawsuit, the state budget director

 

may place funds allocated under this section in escrow or allocate

 

money from the funds otherwise allocated under this section, up to

 

a maximum of 50% of the amount allocated in subsection (1). If

 

funds are placed in escrow under this subsection, those funds are a

 

work project appropriation and the funds are carried forward into

 

the following fiscal year. The purpose of the work project is to

 

provide for any payments that may be awarded to districts as a

 

result of the litigation. The work project shall be completed upon

 

resolution of the litigation. In addition, this state reserves the

 

right to terminate future federal title XIX medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

funds is challenged in the lawsuit. As used in this subsection,

 

"title XIX" means title XIX of the social security act, 42 USC 1396

 

to 1396v.

 

Sec. 22d. (1) From the appropriation in section 11, an amount

 

not to exceed $2,025,000.00 is allocated for 2010-2011 2011-2012

 

for additional payments to small, geographically isolated

 

supplemental payments to rural districts under this section.

 

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

 


allocated for 2010-2011 2011-2012 an amount not to exceed

 

$750,000.00 for payments under this subsection to districts that

 

meet all of the following:

 

(a) Operates grades K to 12.

 

(b) Has fewer than 250 pupils in membership.

 

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

 

least 1 of the following:

 

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

 

any other public school building.

 

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

 

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

 

district under subsection (2) shall be determined under a spending

 

plan developed as provided in this subsection and approved by the

 

superintendent of public instruction. The spending plan shall be

 

developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The

 

intermediate superintendents shall review the financial situation

 

of each eligible district, determine the minimum essential

 

financial needs of each eligible district, and develop and agree on

 

a spending plan that distributes the available funding under

 

subsection (2) to the eligible districts based on those financial

 

needs. The intermediate superintendents shall submit the spending

 

plan to the superintendent of public instruction for approval. Upon

 

approval by the superintendent of public instruction, the amounts

 

specified for each eligible district under the spending plan are

 

allocated under subsection (2) and shall be paid to the eligible

 

districts in the same manner as payments under section 22b.

 


(4) Subject to subsection (6), from the allocation in

 

subsection (1), there is allocated for 2010-2011 2011-2012 an

 

amount not to exceed $1,275,000.00 for payments under this

 

subsection to districts that meet all of the following:

 

(a) The district has 5.0 or fewer pupils per square mile as

 

determined by the department.

 

(b) The district has a total square mileage greater than 200.0

 

or is 1 of 2 districts that have consolidated transportation

 

services and have a combined total square mileage greater than

 

200.0.

 

(5) The funds allocated under subsection (4) shall be

 

allocated on an equal per pupil basis.

 

(6) A district receiving funds allocated under subsection (2)

 

is not eligible for funding allocated under subsection (4).

 

Sec. 22e. (1) Beginning in 2008-2009, an For 2011-2012, an

 

amount will be is allocated each fiscal year from the appropriation

 

in section 11 for additional payments under this subsection to

 

districts that meet the eligibility requirements under subsection

 

(2). For 2010-2011, 2011-2012, there is allocated for this purpose

 

from the appropriation in section 11 an amount not to exceed

 

$1,300,000.00.$700,000.00. These additional payments shall not be

 

made after 2011-2012.

 

(2) To be eligible for a payment under subsection (1), a

 

district must be determined by the department and the department of

 

treasury to meet all of the following:

 

(a) The district levies 1 of the following operating millage

 

amounts:

 


(i) All of the operating millage it is authorized to levy under

 

section 1211 of the revised school code, MCL 380.1211.

 

(ii) The amount of operating millage it is authorized to levy

 

after a voluntary reduction of its operating millage rate adopted

 

by the board of the district.

 

(iii) The amount of operating millage it is authorized to levy

 

after a millage reduction required under the limitation of section

 

31 of article IX of the state constitution of 1963, if a ballot

 

question asking for approval to levy millage in excess of the

 

limitation has been rejected in the district.

 

(b) The district receives a reduced amount of local school

 

operating revenue under section 1211 of the revised school code,

 

MCL 380.1211, as a result of the exemptions of industrial personal

 

property and commercial personal property that were enacted in 2007

 

PA 37.

 

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

 

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

 

(d) The district has 500 or fewer pupils in membership.

 

(3) Subject to subsection (4), the amount of the additional

 

funding to each eligible district under subsection (1) is the sum

 

of the following and shall be paid to the eligible districts in the

 

same manner as payments under section 22b:

 

(a) The product of the taxable value of the district's

 

industrial personal property for the calendar year ending in the

 

fiscal year multiplied by the total number of mills the district

 

levies on nonexempt property under section 1211 of the revised

 

school code, MCL 380.1211, for that calendar year.

 


(b) The product of the taxable value of the district's

 

commercial personal property for the calendar year ending in the

 

fiscal year multiplied by the lesser of 12 mills or the total

 

number of mills the district levies on nonexempt property under

 

section 1211 of the revised school code, MCL 380.1211, for that

 

calendar year.

 

(4) The amount of the additional funding to an eligible

 

district under subsection (1) for a fiscal year shall not exceed

 

15% of the total amount allocated under subsection (1) for that

 

fiscal year.

 

(5) If the total amount of the payments calculated under

 

subsection (3) for a fiscal year exceeds the allocation under

 

subsection (1) for that fiscal year, the payment to each district

 

under subsection (1) shall be prorated on an equal percentage

 

basis.

 

(6) In addition to the amount allocated under subsection (1),

 

for 2010-2011 only there is also allocated from the appropriation

 

in section 11 the amount of $500,000.00 to a district that is

 

eligible for a payment under subsection (1) and that levied 1.8

 

mills in 1993 to finance an operating deficit.

 

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

 

allocated for 2011-2012 only an amount not to exceed

 

$154,000,000.00 to provide incentive payments to districts that

 

meet financial best practices under this section. The money

 

allocated in this section represents a portion of the year-end

 

state school aid fund balance for 2010-2011. The amount of the

 

incentive payment is an amount equal to $100.00 per pupil. A

 


district shall receive an incentive payment under this section if

 

the district satisfies at least 4 of the following requirements not

 

later than June 1, 2012:

 

(a) If a district provides medical, pharmacy, dental, vision,

 

disability, long-term care, or any other type of benefit that would

 

constitute a health care services benefit, to employees and their

 

dependents, the district does not pay on behalf of any employee a

 

total amount that is greater than the state maximum allowable

 

employer contribution for health care services benefits, as

 

described in subsection (3), depending on the coverage option.

 

(b) If a district provides medical, pharmacy, dental, vision,

 

disability, long-term care, or any other type of benefit that would

 

constitute a health care services benefit, to employees and their

 

dependents, the district is the policyholder for each of its

 

insurance policies that covers 1 or more of these benefits. A

 

district that does not directly employ its staff is considered to

 

have satisfied this requirement.

 

(c) If a district did not enter into an agreement with the

 

department to develop a service consolidation plan to reduce school

 

operating costs under former section 11d as it was in effect for

 

2010-2011, the district enters into an agreement with the

 

department to develop a service consolidation plan that is in

 

compliance with department guidelines described in subsection (2).

 

If a district entered into an agreement with the department to

 

develop a service consolidation plan under former section 11d, the

 

district continues to implement that plan and report to the

 

department not later than February 1 of each fiscal year the

 


district's progress in implementing that plan.

 

(d) The district has obtained competitive bids on the

 

provision of pupil transportation, food service, custodial, or 1 or

 

more other noninstructional services with a value of at least

 

$50,000.00.

 

(e) The district provides to parents and community members a

 

dashboard or report card demonstrating the district's efforts to

 

manage its finances responsibly. The dashboard or report card shall

 

include at least all of the following for the 3 most recent school

 

years for which the data are available:

 

(i) Graduation and dropout rates.

 

(ii) Average class size in grades kindergarten to 3.

 

(iii) College readiness as measured by Michigan merit

 

examination test scores.

 

(iv) Elementary and middle school MEAP scores.

 

(v) Teacher, principal, and superintendent salary information

 

including at least minimum, average, and maximum pay levels.

 

(vi) General fund balance.

 

(vii) The total number of days of instruction provided.

 

(2) The department shall maintain the guidelines for the

 

service consolidation plans that were developed for former section

 

11d as it was in effect for 2010-2011. The guidelines may identify,

 

but are not limited to, allowable cost-sharing arrangements for the

 

provision of noninstructional and instructional services and the

 

creation of joint operating agreements between and among districts,

 

intermediate districts, and other units of local government. The

 

department shall create benchmarks to measure success in

 


implementing service consolidation plans, including, but not

 

limited to, demonstrated cost reductions and efficiency. In

 

determining eligibility for incentive payments, the department

 

shall recognize service consolidation and cooperation and cost

 

reductions already in effect as well as continued progress.

 

(3) For the purposes of this section, the state maximum

 

allowable employer contribution on behalf of any employee is an

 

amount equal to 90% of the combined total costs for the employee

 

for the school fiscal year for medical, pharmacy, dental, vision,

 

disability, long-term care, or any other type of benefit that would

 

constitute a health care services benefit for each of the following

 

coverage options:

 

(a) Employee only coverage.

 

(b) Employee and spouse coverage.

 

(c) Employee and children coverage.

 

(d) Full family coverage.

 

(4) A district that accepts funds allocated under this section

 

acknowledges that the incentive payment under this section is for

 

2011-2012 only and that funds will not be appropriated for the

 

purposes of this section for subsequent fiscal years.

 

(5) If the department determines that a district has

 

intentionally submitted false information in order to qualify for

 

an incentive payment under this section, the district forfeits an

 

amount equal to the amount it received under this section from its

 

total state school aid for 2012-2013.

 

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

 

allocated for 2010-2011 2011-2012 an amount not to exceed

 


$8,000,000.00 for payments to the educating district or

 

intermediate district for educating pupils assigned by a court or

 

the department of human services to reside in or to attend a

 

juvenile detention facility or child caring institution licensed by

 

the department of human services and approved by the department to

 

provide an on-grounds education program. The amount of the payment

 

under this section to a district or intermediate district shall be

 

calculated as prescribed under subsection (2).

 

(2) The total amount allocated under this section shall be

 

allocated by paying to the educating district or intermediate

 

district an amount equal to the lesser of the district's or

 

intermediate district's added cost or the department's approved per

 

pupil allocation for the district or intermediate district. For the

 

purposes of this subsection:

 

(a) "Added cost" means 100% of the added cost each fiscal year

 

for educating all pupils assigned by a court or the department of

 

human services to reside in or to attend a juvenile detention

 

facility or child caring institution licensed by the department of

 

human services or the department of energy, labor, and economic

 

growth licensing and regulatory affairs and approved by the

 

department to provide an on-grounds education program. Added cost

 

shall be computed by deducting all other revenue received under

 

this act for pupils described in this section from total costs, as

 

approved by the department, in whole or in part, for educating

 

those pupils in the on-grounds education program or in a program

 

approved by the department that is located on property adjacent to

 

a juvenile detention facility or child caring institution. Costs

 


reimbursed by federal funds are not included.

 

(b) "Department's approved per pupil allocation" for a

 

district or intermediate district shall be determined by dividing

 

the total amount allocated under this section for a fiscal year by

 

the full-time equated membership total for all pupils approved by

 

the department to be funded under this section for that fiscal year

 

for the district or intermediate district.

 

(3) A district or intermediate district educating pupils

 

described in this section at a residential child caring institution

 

may operate, and receive funding under this section for, a

 

department-approved on-grounds educational program for those pupils

 

that is longer than 181 days, but not longer than 233 days, if the

 

child caring institution was licensed as a child caring institution

 

and offered in 1991-92 an on-grounds educational program that was

 

longer than 181 days but not longer than 233 days and that was

 

operated by a district or intermediate district.

 

(4) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

Sec. 24a. From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,751,300.00 for 2009-2010 and

 

there is allocated an amount not to exceed $1,440,000.00

 

$1,197,500.00 for 2010-2011 2011-2012 for payments to intermediate

 

districts for pupils who are placed in juvenile justice service

 

facilities operated by the department of human services. Each

 

intermediate district shall receive an amount equal to the state

 

share of those costs that are clearly and directly attributable to

 

the educational programs for pupils placed in facilities described

 


in this section that are located within the intermediate district's

 

boundaries. The intermediate districts receiving payments under

 

this section shall cooperate with the department of human services

 

to ensure that all funding allocated under this section is utilized

 

by the intermediate district and department of human services for

 

educational programs for pupils described in this section. Pupils

 

described in this section are not eligible to be funded under

 

section 24. However, a program responsibility or other fiscal

 

responsibility associated with these pupils shall not be

 

transferred from the department of human services to a district or

 

intermediate district unless the district or intermediate district

 

consents to the transfer.

 

Sec. 24c. From the appropriation in section 11, there is

 

allocated an amount not to exceed $742,300.00 for 2010-2011 2011-

 

2012 for payments to districts for pupils who are enrolled in a

 

nationally administered community-based education and youth

 

mentoring program, known as the youth challenge program, that is

 

located within the district and is administered by the department

 

of military and veterans affairs. Both of the following apply to a

 

district receiving payments under this section:

 

(a) The district shall contract with the department of

 

military and veterans affairs to ensure that all funding allocated

 

under this section is utilized by the district and the department

 

of military and veterans affairs for the youth challenge program.

 

(b) The district may retain for its administrative expenses an

 

amount not to exceed 3% of the amount of the payment the district

 

receives under this section.

 


Sec. 26a. From the state school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$26,300,000.00 for 2010-2011 2011-2012 to reimburse districts and

 

intermediate districts pursuant to section 12 of the Michigan

 

renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied

 

in 2010. 2011. The allocations shall be made not later than 60 days

 

after the department of treasury certifies to the department and to

 

the state budget director that the department of treasury has

 

received all necessary information to properly determine the

 

amounts due to each eligible recipient.

 

Sec. 26b. (1) From the appropriation in section 11, there is

 

allocated for 2010-2011 2011-2012 an amount not to exceed

 

$3,400,000.00 $2,890,000.00 for payments to districts, intermediate

 

districts, and community college districts for the portion of the

 

payment in lieu of taxes obligation that is attributable to

 

districts, intermediate districts, and community college districts

 

pursuant to section 2154 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.2154.

 

(2) If the amount appropriated under this section is not

 

sufficient to fully pay obligations under this section, payments

 

shall be prorated on an equal basis among all eligible districts,

 

intermediate districts, and community college districts.

 

Article 3

 

Sec. 31a. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated for 2010-2011 2011-

 

2012 an amount not to exceed $317,695,500.00 for payments to

 

eligible districts and eligible public school academies under this

 


section. Subject to subsection (14), the amount of the additional

 

allowance under this section, other than funding under subsection

 

(6) or (7), shall be based on the number of actual pupils in

 

membership in the district or public school academy who met the

 

income eligibility criteria for free breakfast, lunch, or milk in

 

the immediately preceding state fiscal year, as determined under

 

the Richard B. Russell national school lunch act, 42 USC 1751 to

 

1769i, and reported to the department by October 31 of the

 

immediately preceding fiscal year and adjusted not later than

 

December 31 of the immediately preceding fiscal year in the form

 

and manner prescribed by the center. However, for a public school

 

academy that began operations as a public school academy after the

 

pupil membership count day of the immediately preceding school

 

year, the basis for the additional allowance under this section

 

shall be the number of actual pupils in membership in the public

 

school academy who met the income eligibility criteria for free

 

breakfast, lunch, or milk in the current state fiscal year, as

 

determined under the Richard B. Russell national school lunch act.

 

(2) To be eligible to receive funding under this section,

 

other than funding under subsection (6) or (7), a district or

 

public school academy that has not been previously determined to be

 

eligible shall apply to the department, in a form and manner

 

prescribed by the department, and a district or public school

 

academy must meet all of the following:

 

(a) The sum of the district's or public school academy's

 

combined state and local revenue per membership pupil in the

 

current state fiscal year, as calculated under section 20, plus the

 


amount of the district's per pupil allocation under section 20j(2),

 

is less than or equal to the basic foundation allowance under

 

section 20 for the current state fiscal year.

 

(b) The district or public school academy agrees to use the

 

funding only for purposes allowed under this section and to comply

 

with the program and accountability requirements under this

 

section.

 

(3) Except as otherwise provided in this subsection, an

 

eligible district or eligible public school academy shall receive

 

under this section for each membership pupil in the district or

 

public school academy who met the income eligibility criteria for

 

free breakfast, lunch, or milk, as determined under the Richard B.

 

Russell national school lunch act and as reported to the department

 

by October 31 of the immediately preceding fiscal year and adjusted

 

not later than December 31 of the immediately preceding fiscal

 

year, an amount per pupil equal to 11.5% of the sum of the

 

district's foundation allowance or public school academy's per

 

pupil amount calculated under section 20, plus the amount of the

 

district's per pupil allocation under section 20j(2), not to exceed

 

the basic foundation allowance under section 20 for the current

 

state fiscal year, or of the public school academy's per membership

 

pupil amount calculated under section 20 for the current state

 

fiscal year. A public school academy that began operations as a

 

public school academy after the pupil membership count day of the

 

immediately preceding school year shall receive under this section

 

for each membership pupil in the public school academy who met the

 

income eligibility criteria for free breakfast, lunch, or milk, as

 


determined under the Richard B. Russell national school lunch act

 

and as reported to the department by October 31 of the current

 

fiscal year and adjusted not later than December 31 of the current

 

fiscal year, an amount per pupil equal to 11.5% of the public

 

school academy's per membership pupil amount calculated under

 

section 20 for the current state fiscal year.

 

(4) Except as otherwise provided in this section, a district

 

or public school academy receiving funding under this section shall

 

use that money only to provide instructional programs and direct

 

noninstructional services, including, but not limited to, medical

 

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

 

clinics; and for the purposes of subsection (5), (6), or (7). In

 

addition, a district that is a school district of the first class

 

or a district or public school academy in which at least 50% of the

 

pupils in membership met the income eligibility criteria for free

 

breakfast, lunch, or milk in the immediately preceding state fiscal

 

year, as determined and reported as described in subsection (1),

 

may use not more than 20% of the funds it receives under this

 

section for school security. A district or public school academy

 

shall not use any of that money for administrative costs or to

 

supplant another program or other funds, except for funds allocated

 

to the district or public school academy under this section in the

 

immediately preceding year and already being used by the district

 

or public school academy for at-risk pupils. The instruction or

 

direct noninstructional services provided under this section may be

 

conducted before or after regular school hours or by adding extra

 

school days to the school year and may include, but are not limited

 


to, tutorial services, early childhood programs to serve children

 

age 0 to 5, and reading programs as described in former section 32f

 

as in effect for 2001-2002. A tutorial method may be conducted with

 

paraprofessionals working under the supervision of a certificated

 

teacher. The ratio of pupils to paraprofessionals shall be between

 

10:1 and 15:1. Only 1 certificated teacher is required to supervise

 

instruction using a tutorial method. As used in this subsection,

 

"to supplant another program" means to take the place of a

 

previously existing instructional program or direct

 

noninstructional services funded from a funding source other than

 

funding under this section.

 

(5) Except as otherwise provided in subsection (12), a

 

district or public school academy that receives funds under this

 

section and that operates a school breakfast program under section

 

1272a of the revised school code, MCL 380.1272a, shall use from the

 

funds received under this section an amount, not to exceed $10.00

 

per pupil for whom the district or public school academy receives

 

funds under this section, necessary to pay for costs associated

 

with the operation of the school breakfast program.

 

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

 

allocated for 2010-2011 2011-2012 an amount not to exceed

 

$3,557,300.00 to support child and adolescent health centers. These

 

grants shall be awarded for 5 consecutive years beginning with

 

2003-2004 in a form and manner approved jointly by the department

 

and the department of community health. Each grant recipient shall

 

remain in compliance with the terms of the grant award or shall

 

forfeit the grant award for the duration of the 5-year period after

 


the noncompliance. To continue to receive funding for a child and

 

adolescent health center under this section a grant recipient shall

 

ensure that the child and adolescent health center has an advisory

 

committee and that at least one-third of the members of the

 

advisory committee are parents or legal guardians of school-aged

 

children. A child and adolescent health center program shall

 

recognize the role of a child's parents or legal guardian in the

 

physical and emotional well-being of the child. Funding under this

 

subsection shall be used to support child and adolescent health

 

center services provided to children up to age 21. If any funds

 

allocated under this subsection are not used for the purposes of

 

this subsection for the fiscal year in which they are allocated,

 

those unused funds shall be used that fiscal year to avoid or

 

minimize any proration that would otherwise be required under

 

subsection (14) for that fiscal year.

 

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

 

allocated for 2010-2011 2011-2012 an amount not to exceed

 

$5,150,000.00 for the state portion of the hearing and vision

 

screenings as described in section 9301 of the public health code,

 

1978 PA 368, MCL 333.9301. A local public health department shall

 

pay at least 50% of the total cost of the screenings. The frequency

 

of the screenings shall be as required under R 325.13091 to R

 

325.13096 and R 325.3271 to R 325.3276 of the Michigan

 

administrative code. Funds shall be awarded in a form and manner

 

approved jointly by the department and the department of community

 

health. Notwithstanding section 17b, payments to eligible entities

 

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

 


department.

 

(8) Each district or public school academy receiving funds

 

under this section shall submit to the department by July 15 of

 

each fiscal year a report, not to exceed 10 pages, on the usage by

 

the district or public school academy of funds under this section,

 

which report shall include at least a brief description of each

 

program conducted by the district or public school academy using

 

funds under this section, the amount of funds under this section

 

allocated to each of those programs, the number of at-risk pupils

 

eligible for free or reduced price school lunch who were served by

 

each of those programs, and the total number of at-risk pupils

 

served by each of those programs. If a district or public school

 

academy does not comply with this subsection, the department shall

 

withhold an amount equal to the August payment due under this

 

section until the district or public school academy complies with

 

this subsection. If the district or public school academy does not

 

comply with this subsection by the end of the state fiscal year,

 

the withheld funds shall be forfeited to the school aid fund.

 

(9) In order to receive funds under this section, a district

 

or public school academy shall allow access for the department or

 

the department's designee to audit all records related to the

 

program for which it receives those funds. The district or public

 

school academy shall reimburse the state for all disallowances

 

found in the audit.

 

(10) Subject to subsections (5), (6), (7), (12), and (13), any

 

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

 

section to reduce the ratio of pupils to teachers in grades K-6, or

 


any combination of those grades, in school buildings in which the

 

percentage of pupils described in subsection (1) exceeds the

 

district's aggregate percentage of those pupils. Subject to

 

subsections (5), (6), (7), (12), and (13), if a district obtains a

 

waiver from the department, the district may use up to 100% of the

 

funds it receives under this section to reduce the ratio of pupils

 

to teachers in grades K-6, or any combination of those grades, in

 

school buildings in which the percentage of pupils described in

 

subsection (1) is at least 60% of the district's aggregate

 

percentage of those pupils and at least 30% of the total number of

 

pupils enrolled in the school building. To obtain a waiver, a

 

district must apply to the department and demonstrate to the

 

satisfaction of the department that the class size reductions would

 

be in the best interests of the district's at-risk pupils.

 

(11) A district or public school academy may use funds

 

received under this section for adult high school completion,

 

general educational development (G.E.D.) test preparation, adult

 

English as a second language, or adult basic education programs

 

described in section 107.

 

(12) For an individual school or schools operated by a

 

district or public school academy receiving funds under this

 

section that have been determined by the department to meet the

 

adequate yearly progress standards of the no child left behind act

 

of 2001, Public Law 107-110, in both mathematics and English

 

language arts at all applicable grade levels for all applicable

 

subgroups, the district or public school academy may submit to the

 

department an application for flexibility in using the funds

 


received under this section 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 benefit at-risk pupils in the school,

 

but that may be different from the purposes otherwise allowable

 

under this section. The department shall approve the application if

 

the department determines that the purposes identified in the plan

 

are reasonably designed to benefit at-risk pupils in the school. 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.

 

(13) A district or public school academy that receives funds

 

under this section may use funds it receives under this section to

 

implement and operate an early intervening program for pupils in

 

grades K to 3 that meets either or both of the following:

 

(a) Monitors individual pupil learning and provides specific

 

support or learning strategies to pupils as early as possible in

 

order to reduce the need for special education placement. The

 

program shall include literacy and numeracy supports, sensory motor

 

skill development, behavior supports, instructional consultation

 

for teachers, and the development of a parent/school learning plan.

 

Specific support or learning strategies may include support in or

 

out of the general classroom in areas including reading, writing,

 


math, visual memory, motor skill development, behavior, or language

 

development. These would be provided based on an understanding of

 

the individual child's learning needs.

 

(b) Provides early intervening strategies using school-wide

 

systems of academic and behavioral supports and is scientifically

 

research-based. The strategies to be provided shall include at

 

least pupil performance indicators based upon response to

 

intervention, instructional consultation for teachers, and ongoing

 

progress monitoring. A school-wide system of academic and

 

behavioral support should be based on a support team available to

 

the classroom teachers. The members of this team could include the

 

principal, special education staff, reading teachers, and other

 

appropriate personnel who would be available to systematically

 

study the needs of the individual child and work with the teacher

 

to match instruction to the needs of the individual child.

 

(14) If necessary, and before any proration required under

 

section 11, the department shall prorate payments under this

 

section by reducing the amount of the per pupil payment under this

 

section by a dollar amount calculated by determining the amount by

 

which the amount necessary to fully fund the requirements of this

 

section exceeds the maximum amount allocated under this section and

 

then dividing that amount by the total statewide number of pupils

 

who met the income eligibility criteria for free breakfast, lunch,

 

or milk in the immediately preceding fiscal year, as described in

 

subsection (1).

 

(15) If a district is formed by consolidation after June 1,

 

1995, and if 1 or more of the original districts was not eligible

 


before the consolidation for an additional allowance under this

 

section, the amount of the additional allowance under this section

 

for the consolidated district shall be based on the number of

 

pupils described in subsection (1) enrolled in the consolidated

 

district who reside in the territory of an original district that

 

was eligible before the consolidation for an additional allowance

 

under this section.

 

(16) Except as otherwise provided in subsection (18), a

 

district or public school academy that does not meet the

 

eligibility requirement under subsection (2)(a) is eligible for

 

funding under this section if at least 1/4 of the pupils in

 

membership in the district or public school academy met the income

 

eligibility criteria for free breakfast, lunch, or milk in the

 

immediately preceding state fiscal year, as determined and reported

 

as described in subsection (1), and at least 4,500 of the pupils in

 

membership in the district or public school academy met the income

 

eligibility criteria for free breakfast, lunch, or milk in the

 

immediately preceding state fiscal year, as determined and reported

 

as described in subsection (1). A district or public school academy

 

that is eligible for funding under this section because the

 

district meets the requirements of this subsection shall receive

 

under this section for each membership pupil in the district or

 

public school academy who met the income eligibility criteria for

 

free breakfast, lunch, or milk in the immediately preceding fiscal

 

year, as determined and reported as described in subsection (1), an

 

amount per pupil equal to 11.5% of the sum of the district's

 

foundation allowance or public school academy's per pupil

 


allocation under section 20, plus the amount of the district's per

 

pupil allocation under section 20j(2), not to exceed the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

(17) A district that does not meet the eligibility requirement

 

under subsection (2)(a) is eligible for funding under this section

 

if at least 75% of the pupils in membership in the district met the

 

income eligibility criteria for free breakfast, lunch, or milk in

 

the immediately preceding state fiscal year, as determined and

 

reported as described in subsection (1), the district receives an

 

adjustment under section 20(19), and the district does not receive

 

any state portion of its foundation allowance as calculated under

 

section 20. A district that is eligible for funding under this

 

section because the district meets the requirements of this

 

subsection shall receive under this section for each membership

 

pupil in the district who met the income eligibility criteria for

 

free breakfast, lunch, or milk in the immediately preceding fiscal

 

year, as determined and reported as described in subsection (1), an

 

amount per pupil equal to 11.5% of the sum of the district's

 

foundation allowance under section 20, not to exceed the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

(18) For a district described in subsection (16), the total

 

allocation to the district otherwise due under this section, after

 

any reduction under subsection (14), shall be further reduced by

 

25%.

 

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

 


pupil for whom the district has documentation that the pupil meets

 

at least 2 of the following criteria: is a victim of child abuse or

 

neglect; is below grade level in English language and communication

 

skills or mathematics; is a pregnant teenager or teenage parent; is

 

eligible for a federal free or reduced-price lunch subsidy; has

 

atypical behavior or attendance patterns; or has a family history

 

of school failure, incarceration, or substance abuse. For pupils

 

for whom the results of at least the applicable Michigan education

 

assessment program (MEAP) test have been received, at-risk pupil

 

also includes a pupil who does not meet the other criteria under

 

this subsection but who did not achieve at least a score of level 2

 

on the most recent MEAP English language arts, mathematics, or

 

science test for which results for the pupil have been received.

 

For pupils for whom the results of the Michigan merit examination

 

have been received, at-risk pupil also includes a pupil who does

 

not meet the other criteria under this subsection but who did not

 

achieve proficiency on the reading component of the most recent

 

Michigan merit examination for which results for the pupil have

 

been received, did not achieve proficiency on the mathematics

 

component of the most recent Michigan merit examination for which

 

results for the pupil have been received, or did not achieve basic

 

competency on the science component of the most recent Michigan

 

merit examination for which results for the pupil have been

 

received. For pupils in grades K-3, at-risk pupil also includes a

 

pupil who is at risk of not meeting the district's core academic

 

curricular objectives in English language arts or mathematics.

 

(17) A district or public school academy that receives funds

 


under this section may use funds received under this section to

 

provide an anti-bullying or crisis intervention program.

 

Sec. 31d. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $22,495,100.00 for 2010-2011

 

2011-2012 for the purpose of making payments to districts and other

 

eligible entities under this section.

 

(2) The amounts allocated from state sources under this

 

section shall be used to pay the amount necessary to reimburse

 

districts for 6.0127% of the necessary costs of the state mandated

 

portion of the school lunch programs provided by those districts.

 

The amount due to each district under this section shall be

 

computed by the department using the methods of calculation adopted

 

by the Michigan supreme court in the consolidated cases known as

 

Durant v State of Michigan, Michigan supreme court docket no.

 

104458-104492.

 

(3) The payments made under this section include all state

 

payments made to districts so that each district receives at least

 

6.0127% of the necessary costs of operating the state mandated

 

portion of the school lunch program in a fiscal year.

 

(4) The payments made under this section to districts and

 

other eligible entities that are not required under section 1272a

 

of the revised school code, MCL 380.1272a, to provide a school

 

lunch program shall be in an amount not to exceed $10.00 per

 

eligible pupil plus 5 cents for each free lunch and 2 cents for

 

each reduced price lunch provided, as determined by the department.

 

(5) From the federal funds appropriated in section 11, there

 

is allocated for 2010-2011 2011-2012 all available federal funding,

 


estimated at $400,000,000.00, for the national school lunch program

 

and all available federal funding, estimated at $2,506,000.00, for

 

the emergency food assistance program.

 

(6) Notwithstanding section 17b, payments to eligible entities

 

other than districts under this section shall be paid on a schedule

 

determined by the department.

 

(7) In purchasing food for a school lunch program funded under

 

this section, preference shall be given to food that is grown or

 

produced by Michigan businesses if it is competitively priced and

 

of comparable quality.

 

Sec. 31f. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $9,625,000.00 for 2010-2011 2011-

 

2012 for the purpose of making payments to districts to reimburse

 

for the cost of providing breakfast.

 

(2) The funds allocated under this section for school

 

breakfast programs shall be made available to all eligible

 

applicant districts that meet all of the following criteria:

 

(a) The district participates in the federal school breakfast

 

program and meets all standards as prescribed by 7 CFR parts 220

 

and 245.

 

(b) Each breakfast eligible for payment meets the federal

 

standards described in subdivision (a).

 

(3) The payment for a district under this section is at a per

 

meal rate equal to the lesser of the district's actual cost or 100%

 

of the statewide average cost of a breakfast served, as determined

 

and approved by the department, less federal reimbursement,

 

participant payments, and other state reimbursement. The statewide

 


average cost shall be determined by the department using costs as

 

reported in a manner approved by the department for the preceding

 

school year.

 

(4) Notwithstanding section 17b, payments under this section

 

may be made pursuant to an agreement with the department.

 

(5) In purchasing food for a school breakfast program funded

 

under this section, preference shall be given to food that is grown

 

or produced by Michigan businesses if it is competitively priced

 

and of comparable quality.

 

Sec. 32b. (1) From the funds appropriated under section 11,

 

there is allocated an amount not to exceed $6,000,000.00

 

$5,900,000.00 for 2010-2011 2011-2012 for competitive grants to

 

intermediate districts for the creation and continuance of great

 

start communities or other community purposes as identified by the

 

early childhood investment corporation. These dollars may not be

 

expended until both of the following conditions have been met:

 

(a) The early childhood investment corporation has identified

 

matching dollars of at least an amount equal to the amount of the

 

matching dollars for 2006-2007.

 

(b) The executive committee of the corporation includes, in

 

addition to the members of the executive committee provided for by

 

the interlocal agreement creating the corporation under the urban

 

cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.510 to

 

124.512, 4 members appointed by the governor as provided in this

 

subdivision. Not later than 30 days after the convening of a

 

regular legislative session in an odd-numbered year, the speaker of

 

the house of representatives, the house minority leader, the senate

 


majority leader, and the senate minority leader shall each submit

 

to the governor a list of 3 or more individuals as nominees for

 

appointment as members of the executive committee of the

 

corporation. The corporation shall notify each of the legislative

 

leaders of this requirement to submit a list of nominees not later

 

than 30 days before the date that the list is due. Within 60 days

 

of the submission to the governor of nominees by each of the 4

 

legislative leaders, the governor shall appoint 1 member of the

 

executive committee from each list of nominees submitted by each of

 

the 4 legislative leaders. A member appointed under this

 

subdivision shall serve a term as a member of the executive

 

committee through the next regular legislative session unless he or

 

she resigns or is otherwise unable to serve. When a vacancy occurs

 

other than by expiration of a term, the corporation shall notify

 

the legislative leader who originally nominated the member of the

 

vacancy and that legislative leader shall submit to the governor a

 

list of 3 or more individuals as nominees for appointment to fill

 

the vacancy within 30 days after being notified by the corporation

 

of the vacancy. The governor shall make an appointment to fill that

 

vacancy in the same manner as the original appointment not later

 

than 60 days after the date the vacancy occurs.

 

(2) The early childhood investment corporation shall award

 

grants to eligible intermediate districts in an amount to be

 

determined by the corporation.

 

(3) In order to receive funding, each intermediate district

 

applicant shall agree to convene a local great start collaborative

 

to address the availability of the 6 components of a great start

 


system in its communities: physical health, social-emotional

 

health, family supports, basic needs, economic stability and

 

safety, and parenting education and early education and care, to

 

ensure that every child in the community is ready for kindergarten.

 

Specifically, each grant will fund the following:

 

(a) The completion of a community needs assessment and

 

strategic plan for the creation of a comprehensive system of early

 

childhood services and supports, accessible to all children from

 

birth to kindergarten and their families.

 

(b) Identification of local resources and services for

 

children with disabilities, developmental delays, or special needs

 

and their families.

 

(c) Coordination and expansion of infrastructure to support

 

high-quality early childhood and childcare programs.

 

(d) Evaluation of local programs.

 

(4) Not later than December 1 of each fiscal year, for the

 

grants awarded under this section for the immediately preceding

 

fiscal year, the department shall provide to the house and senate

 

appropriations subcommittees on state school aid, the state budget

 

director, and the house and senate fiscal agencies a report

 

detailing the amount of each grant awarded under this section, the

 

grant recipients, the activities funded by each grant under this

 

section, and an analysis of each grant recipient's success in

 

addressing the development of a comprehensive system of early

 

childhood services and supports.

 

(5) An intermediate district receiving funds under this

 

section may carry over any unexpended funds received under this

 


section into the next fiscal year and may expend those unused funds

 

in the next fiscal year. A recipient of a grant shall return any

 

unexpended grant funds to the department in the manner prescribed

 

by the department not later than September 30 of the next fiscal

 

year after the fiscal year in which the funds are received.

 

(6) Beginning with 2012-2013, it is the intent of the

 

legislature to transfer funding for great start collaboratives

 

under this section into an early childhood block grant program,

 

along with funding for great start readiness programs under section

 

32d and funding for great parents, great start programs under

 

section 32j. The early childhood block grant program will allocate

 

funds to intermediate districts and consortia of intermediate

 

districts to act as fiduciaries and provide administration of

 

regional early childhood programs in conjunction with their

 

regional great start collaborative to improve program quality,

 

evaluation, and efficiency for early childhood programs. The

 

department shall work with intermediate districts, districts, great

 

start collaboratives, and the early childhood investment

 

corporation to establish a revised funding formula, application

 

process, program criteria, and data reporting requirements for

 

2012-2013. Not later than January 1, 2012, the department shall

 

report to the legislature its recommendations for the revisions

 

required under this subsection.

 

(7) (6) Notwithstanding section 17b, payments under this

 

section may be made pursuant to an agreement with the department.

 

Sec. 32d. (1) For 2010-2011, 2011-2012, there is allocated to

 

eligible districts intermediate districts and consortia of

 


intermediate districts for great start readiness programs an amount

 

not to exceed $89,400,000.00 $104,275,000.00 from the state school

 

aid fund money appropriated in section 11. In addition, from the

 

general fund appropriation in section 11, there is allocated an

 

amount not to exceed $8,875,000.00 for competitive great start

 

readiness program grants. Funds allocated under this section shall

 

be used to provide part-day or full-day comprehensive free

 

compensatory programs designed to do 1 or both of the following:

 

(a) Improve the readiness and subsequent achievement of

 

educationally disadvantaged children as defined by the department

 

who will be at least 4, but less than 5 years of age, as of

 

December 1 of the school year in which the programs are offered,

 

and who show evidence of 2 or more risk factors meet the

 

participant eligibility and prioritization guidelines as defined by

 

the state board.

 

(b) Provide preschool and parenting education programs similar

 

to those under former section 32b as in effect for 2001-2002.

 

Beginning in 2007-2008, funds spent by a district for programs

 

described in this subdivision shall not exceed the lesser of the

 

amount spent by the district under this subdivision for 2006-2007

 

or the amount spent under this subdivision in any subsequent fiscal

 

year.

 

(2) To be eligible to receive payments under this section, a

 

district shall comply with this section and section 39. To receive

 

competitive grant payments under this section, an eligible grant

 

recipient shall comply with this section and section 32l.Funds

 

allocated under this section shall be allocated to intermediate

 


districts or consortia of intermediate districts. An intermediate

 

district or consortium of intermediate districts receiving funding

 

under this section shall act as the fiduciary for the great start

 

readiness programs. For 2011-2012, the fiduciary intermediate

 

districts and consortia of intermediate districts shall allocate

 

the funding under this section as follows:

 

(a) An amount not to exceed $95,400,000.00 allocated to

 

districts and consortia of districts as directed by the department

 

based on the formula in section 39. In order to be eligible to

 

receive funds allocated under this subdivision from an intermediate

 

district or consortium of intermediate districts, a district or

 

consortium of districts shall comply with this section and section

 

39.

 

(b) An amount not to exceed $8,875,000.00 allocated in grants

 

to competitive great start readiness programs as directed by the

 

department based on the grant award process in section 32l. In order

 

to be eligible to receive funds allocated under this section from

 

an intermediate district or consortium of intermediate districts, a

 

competitive great start readiness program shall comply with this

 

section and section 32l.

 

(3) In addition to the allocation under subsection (1), from

 

the general fund money appropriated under section 11, there is

 

allocated an amount not to exceed $300,000.00 for 2010-2011 2011-

 

2012 for a competitive grant to continue a longitudinal evaluation

 

of children who have participated in great start readiness

 

programs.

 

(4) To be eligible for funding under this section, a program

 


shall prepare children for success in school through comprehensive

 

part-day or full-day school-day programs that contain all of the

 

following program components, as determined by the department:

 

(a) Participation in a collaborative recruitment and

 

enrollment process. At a minimum, the process shall include all

 

other funded preschool programs that may serve children in the same

 

geographic area, to assure that each child is enrolled in the

 

program most appropriate to his or her needs and to maximize the

 

use of federal, state, and local funds.

 

(b) An age-appropriate educational curriculum that is in

 

compliance with the early childhood standards of quality for

 

prekindergarten children adopted by the state board.

 

(c) Nutritional services for all program participants.

 

(d) Health and developmental screening services for all

 

program participants.

 

(e) Referral services for families of program participants to

 

community social service agencies, as appropriate.

 

(f) Active and continuous involvement of the parents or

 

guardians of the program participants.

 

(g) A plan to conduct and report annual great start readiness

 

program evaluations and continuous improvement plans using criteria

 

approved by the department.

 

(h) Participation in a multidistrict, multiagency, school

 

readiness advisory committee that provides for the involvement of

 

classroom teachers, parents or guardians of program participants,

 

and community, volunteer, and social service agencies and

 

organizations, as appropriate. The advisory committee shall review

 


the program components listed in this subsection and make

 

recommendations for changes to the great start readiness program

 

for which it is an advisory committee.

 

(i) For great start readiness programs operated by a district

 

or consortium of districts, provide for the The ongoing

 

articulation of the early childhood, kindergarten , and first grade

 

programs offered by the district or districts.program provider.

 

(5) An application for funding under this section shall

 

provide for the following, in a form and manner determined by the

 

department:

 

(a) Ensure compliance with all program components described in

 

subsection (4).

 

(b) Ensure that more than 75% of the children participating in

 

an eligible great start readiness program are children who live

 

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

 

300% of the federal poverty level.

 

(c) Ensure that the applicant only employs qualified personnel

 

for this program, as follows:

 

(i) Teachers possessing proper training. For programs the

 

district manages itself, managed directly by an intermediate

 

district, a valid teaching certificate and an early childhood (ZA)

 

(ZA or ZS) endorsement are required. This provision does not apply

 

to a an intermediate district or competitive program that

 

subcontracts with an eligible child development program. In that

 

situation, a teacher must have a valid Michigan teaching

 

certificate with an early childhood (ZA) (ZA or ZS) endorsement, a

 

valid Michigan elementary teaching certificate with a child

 


development associate credential, or a bachelor's degree in child

 

development with specialization in preschool teaching. However,

 

both of the following apply to this subparagraph:

 

(A) If a if an intermediate district demonstrates to the

 

department that it is unable to fully comply with this subparagraph

 

after making reasonable efforts to comply, teachers who have

 

significant but incomplete training in early childhood education or

 

child development may be employed by the intermediate district if

 

the intermediate district provides to the department, and the

 

department approves, a plan for each teacher to come into

 

compliance with the standards in this subparagraph. A teacher's

 

compliance plan must be completed within 4 2 years of the date of

 

employment. Progress toward completion of the compliance plan shall

 

consist of at least 2 courses per calendar year.

 

(B) For a subcontracted program, the department shall consider

 

a teacher with 90 credit hours and at least 4 years' teaching

 

experience in a qualified preschool program to meet the

 

requirements under this subparagraph.

 

(ii) Paraprofessionals possessing proper training in early

 

childhood development, including an associate's degree in early

 

childhood education or child development or the equivalent, or a

 

child development associate (CDA) credential. , or the equivalent

 

as approved by the state board. However, if a an intermediate

 

district demonstrates to the department that it is unable to fully

 

comply with this subparagraph after making reasonable efforts to

 

comply, the intermediate district may employ paraprofessionals who

 

have completed at least 1 course that earns college credit in early

 


childhood education or child development if the intermediate

 

district provides to the department, and the department approves, a

 

plan for each paraprofessional to come into compliance with the

 

standards in this subparagraph. A paraprofessional's compliance

 

plan must be completed within 2 years of the date of employment.

 

Progress toward completion of the compliance plan shall consist of

 

at least 2 courses or 60 clock hours of training per calendar year.

 

(d) Include a program budget that contains only those costs

 

that are not reimbursed or reimbursable by federal funding, that

 

are clearly and directly attributable to the great start readiness

 

program, and that would not be incurred if the program were not

 

being offered. The program budget shall indicate the extent to

 

which these funds will supplement other federal, state, local, or

 

private funds. Funds received under this section shall not be used

 

to supplant any federal funds by the applicant to serve children

 

eligible for a federally funded existing preschool program that has

 

the capacity to serve those children.

 

(6) For a grant recipient that enrolls pupils in a full-day

 

school-day program funded under this section, each child enrolled

 

in the full-day school-day program shall be counted as 2 children

 

served by the program for purposes of determining the number of

 

children to be served and for determining the amount of the grant

 

award. A grant award shall not be increased solely on the basis of

 

providing a full-day school-day program. As used in this

 

subsection, "full-day program" means a program that operates for at

 

least the same length of day as a district's first grade program

 

for a minimum of 4 days per week, 30 weeks per year. A classroom

 


that offers a full-day program must enroll all children for the

 

full day to be considered a full-day program.

 

(7) A district or consortium of districts An intermediate

 

district or consortium of intermediate districts receiving a grant

 

under this section may contract with for-profit or nonprofit

 

preschool center providers that meet all requirements of subsection

 

(4) and retain for administrative services an amount equal to not

 

more than 5% of the grant amount. A An intermediate district, or

 

consortium of intermediate districts, or competitive grant program

 

may expend not more than 10% of the total grant amount for

 

administration of the program.

 

(8) Any public or private for-profit or nonprofit legal entity

 

or agency may apply for a competitive grant under this section.

 

However, a district or intermediate district may not apply for a

 

competitive grant under this section unless the district,

 

intermediate district, or consortium of districts or intermediate

 

districts is acting as a local grantee for the federal head start

 

program operating under the head start act, 42 USC 9831 to 9852.

 

(9) A recipient of funds under this section shall report to

 

the department on the midyear report in a form and manner

 

prescribed by the department the number of children participating

 

in the program who meet the income or other eligibility criteria

 

prescribed by the department and the total number of children

 

participating in the program. For children participating in the

 

program who meet the income or other eligibility criteria specified

 

under subsection (5)(b), a recipient shall also report whether or

 

not a parent is available to provide care based on employment

 


status. For the purposes of this subsection, "employment status"

 

shall be defined by the department of human services in a manner

 

consistent with maximizing the amount of spending that may be

 

claimed for temporary assistance for needy families maintenance of

 

effort purposes.

 

(10) As used in this section: , "part-day

 

(a) "Part-day program" means a program that operates at least

 

4 days per week, 30 weeks per year, for at least 3 hours of

 

teacher-child contact time per day but for fewer hours of teacher-

 

child contact time per day than a full-day school-day program. as

 

defined in subsection (6).

 

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

 

least the same length of day as a district's first grade program

 

for a minimum of 4 days per week, 30 weeks per year. A classroom

 

that offers a school-day program must enroll all children for the

 

school day to be considered a school-day program.

 

(11) A district or intermediate district grant recipient

 

receiving funds under this section is encouraged to establish a

 

sliding scale of tuition rates based upon a child's family income

 

for the purpose of expanding eligible programs under this section.

 

A district or intermediate district grant recipient may charge

 

tuition for programs provided under this section according to that

 

sliding scale of tuition rates on a uniform basis for any child who

 

does not meet the program eligibility requirements under this

 

section.

 

(12) Beginning with 2012-2013, it is the intent of the

 

legislature to transfer funding for great start readiness programs

 


under this section into an early childhood block grant program,

 

along with funding for great start collaboratives under section 32b

 

and funding for great parents, great start programs under section

 

32j. The early childhood block grant program will allocate funds to

 

intermediate districts and consortia of intermediate districts to

 

act as fiduciaries and provide administration of regional early

 

childhood programs in conjunction with their regional great start

 

collaborative to improve program quality, evaluation, and

 

efficiency for early childhood programs. The department shall work

 

with intermediate districts, districts, great start collaboratives,

 

and the early childhood investment corporation to establish a

 

revised funding formula, application process, program criteria, and

 

data reporting requirements for 2012-2013. Not later than January

 

1, 2012, the department shall report to the legislature its

 

recommendations for the revisions required under this subsection.

 

Sec. 32j. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $5,000,000.00 for 2010-2011 2011-

 

2012 for great parents, great start grants to intermediate

 

districts to provide programs for parents with young children. The

 

purpose of these programs is to encourage early mathematics and

 

reading literacy, improve school readiness, reduce the need for

 

special education services, and foster the maintenance of stable

 

families by encouraging positive parenting skills.

 

(2) To qualify for funding under this section, a program shall

 

provide services to all families with children age 5 or younger

 

residing within the intermediate district who choose to

 

participate, including at least all of the following services:

 


(a) Providing parents with information on child development

 

from birth to age 5.

 

(b) Providing parents with methods to enhance parent-child

 

interaction that promote social and emotional development and age-

 

appropriate language, mathematics, and early reading skills for

 

young children; including, but not limited to, encouraging parents

 

to read to their preschool children at least 1/2 hour per day.

 

(c) Providing parents with examples of learning opportunities

 

to promote intellectual, physical, and social growth of young

 

children, including the acquisition of age-appropriate language,

 

mathematics, and early reading skills.

 

(d) Promoting access to needed community services through a

 

community-school-home partnership.

 

(3) To receive a grant under this section, an intermediate

 

district shall submit a plan to the department not later than

 

October 15, 2010 2011 in the form and manner prescribed by the

 

department. The plan shall do all of the following in a manner

 

prescribed by the department:

 

(a) Provide a plan for the delivery of the program components

 

described in subsection (2) that targets resources based on family

 

need and provides for educators trained in child development to

 

help parents understand their role in their child's developmental

 

process, thereby promoting school readiness and mitigating the need

 

for special education services.

 

(b) Demonstrate an adequate collaboration of local entities

 

involved in providing programs and services for preschool children

 

and their parents and, where there is a great start collaborative,

 


demonstrate that the planned services are part of the community's

 

great start strategic plan.

 

(c) Provide a projected budget for the program to be funded.

 

The intermediate district shall provide at least a 20% local match

 

from local public or private resources for the funds received under

 

this section. Not more than 1/2 of this matching requirement, up to

 

a total of 10% of the total project budget, may be satisfied

 

through in-kind services provided by participating providers of

 

programs or services. In addition, not more than 10% of the grant

 

may be used for program administration.

 

(4) Each intermediate district receiving a grant under this

 

section shall agree to include a data collection system approved by

 

the department. The data collection system shall provide a report

 

by October 15 of each year on the number of children in families

 

with income below 200% of the federal poverty level that received

 

services under this program and the total number of children who

 

received services under this program.

 

(5) The department or superintendent, as applicable, shall do

 

all of the following:

 

(a) The superintendent shall approve or disapprove the plans

 

and notify the intermediate district of that decision not later

 

than November 15, 2010. 2011. The amount allocated to each

 

intermediate district shall be at least an amount equal to 100% of

 

the intermediate district's 2009-2010 2010-2011 payment under this

 

section.

 

(b) The department shall ensure that all programs funded under

 

this section utilize the most current validated research-based

 


methods and curriculum for providing the program components

 

described in subsection (2).

 

(c) The department shall submit a report to the state budget

 

director and the senate and house fiscal agencies summarizing the

 

data collection reports described in subsection (4) by December 1

 

of each year.

 

(6) An intermediate district receiving funds under this

 

section shall use the funds only for the program funded under this

 

section. An intermediate district receiving funds under this

 

section may carry over any unexpended funds received under this

 

section into the next fiscal year and may expend those unused funds

 

in the next fiscal year. A recipient of a grant shall return any

 

unexpended grant funds to the department in the manner prescribed

 

by the department not later than September 30 of the next fiscal

 

year after the fiscal year in which the funds are received.

 

(7) Beginning with 2012-2013, it is the intent of the

 

legislature to transfer funding for great parents, great start

 

programs under this section into an early childhood block grant

 

program, along with funding for great start collaboratives under

 

section 32b and funding for great start readiness programs under

 

section 32d. The early childhood block grant program will allocate

 

funds to intermediate districts and consortia of intermediate

 

districts to act as fiduciaries and provide administration of

 

regional early childhood programs in conjunction with their

 

regional great start collaborative to improve program quality,

 

evaluation, and efficiency for early childhood programs. The

 

department shall work with intermediate districts, districts, great

 


start collaboratives, and the early childhood investment

 

corporation to establish a revised funding formula, application

 

process, program criteria, and data reporting requirements for

 

2012-2013. Not later than January 1, 2012, the department shall

 

report to the legislature its recommendations for the revisions

 

required under this subsection.

 

Sec. 39. (1) A district receiving funds from an intermediate

 

district or consortium of intermediate districts under section 32d

 

shall submit a preapplication, in a form and manner prescribed by

 

the department, by a date specified by the department in the

 

immediately preceding state fiscal year. The preapplication shall

 

include a comprehensive needs assessment and community

 

collaboration plan, which is endorsed by the local great start

 

collaborative and is part of the community's great start strategic

 

plan that includes, but is not limited to, great start readiness

 

program and head start providers, and shall identify all of the

 

following:

 

(a) The estimated total number of children in the community

 

who meet the criteria of section 32d and how that calculation was

 

made.

 

(b) The estimated number of children in the community who meet

 

the criteria of section 32d and are being served by other early

 

childhood development programs operating in the community, and how

 

that calculation was made.

 

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

 

who meet the criteria of section 32d including a verification of

 

physical facility and staff resources capacity.

 


(d) The estimated number of children who meet the criteria of

 

section 32d who will remain unserved after the district and

 

community early childhood programs have met their funded

 

enrollments. The school district shall maintain a waiting list of

 

identified unserved eligible children who would be served when

 

openings are available.

 

(2) A district receiving funds from an intermediate district

 

or consortium of intermediate districts under section 32d shall

 

also submit a final application for approval, in a form and manner

 

prescribed by the department, by a date specified by the

 

department, that details how the district complies with the program

 

components established by the department pursuant to section 32d.

 

(3) The number of prekindergarten children construed to be in

 

need of special readiness assistance under section 32d shall be

 

calculated for each district in the following manner: 1/2 of the

 

percentage of the district's pupils in grades 1 to 5 who are

 

eligible for free lunch, as determined using the district's pupil

 

membership count as of the pupil membership count day in the school

 

year prior to the fiscal year for which the calculation is made,

 

under the Richard B. Russell national school lunch act, 42 USC 1751

 

to 1769i, shall be multiplied by the average kindergarten

 

enrollment of the district on the pupil membership count day of the

 

2 immediately preceding fiscal years.

 

(4) Beginning in 2008-2009, the The initial allocation for

 

each fiscal year to each eligible district under section 32d shall

 

be determined by multiplying the number of children determined by

 

the formula under subsection (3) or the number of children the

 


district indicates it will be able to serve under subsection

 

(1)(c), whichever is less, by $3,400.00 and shall be distributed

 

among districts in decreasing order of concentration of eligible

 

children as determined by the formula under subsection (3). If the

 

number of children a district indicates it will be able to serve

 

under subsection (1)(c) includes children able to be served in a

 

full-day school-day program, then the number able to be served in a

 

full-day school-day program shall be doubled for the purposes of

 

making this calculation of the lesser of the number of children

 

determined by the formula under subsection (3) and the number of

 

children the district indicates it will be able to serve under

 

subsection (1)(c) and determining the amount of the initial

 

allocation to the district under section 32d. A district may

 

contract with a head start agency to serve children enrolled in

 

head start with a full-day school-day program by blending head

 

start funds with a part-day great start readiness program

 

allocation. All head start and great start readiness program

 

policies and regulations apply to the blended program.

 

(5) If funds appropriated allocated for eligible districts in

 

section 32d remain after the initial allocation under subsection

 

(4), the allocation under this subsection shall be distributed to

 

each eligible district under section 32d in decreasing order of

 

concentration of eligible children as determined by the formula

 

under subsection (3). The allocation shall be determined by

 

multiplying the number of children each eligible district served in

 

the immediately preceding fiscal year , including the number of

 

children the district would have served if it had not satisfied all

 


or part of the reduction under section 11d from funding under this

 

section, or the number of children the district indicates it will

 

be able to serve under subsection (1)(c), whichever is less, minus

 

the number of children for which the district received funding in

 

subsection (4) by $3,400.00.

 

(6) If funds appropriated allocated for eligible districts in

 

section 32d remain after the allocations under subsections (4) and

 

(5), remaining funds shall be distributed to each eligible district

 

under section 32d in decreasing order of concentration of eligible

 

children as determined by the formula under subsection (3). If the

 

number of children the district indicates it will be able to serve

 

under subsection (1)(c) exceeds the number of children for which

 

funds have been received under subsections (4) and (5), the

 

allocation under this subsection shall be determined by multiplying

 

the number of children the district indicates it will be able to

 

serve under subsection (1)(c) less the number of children for which

 

funds have been received under subsections (4) and (5) by $3,400.00

 

until the funds allocated for eligible districts in section 32d are

 

distributed.

 

(7) If a district is participating in a program under section

 

32d for the first year, the maximum allocation under this section

 

is 32 multiplied by $3,400.00.

 

(8) A district that offers supplementary day child care funded

 

by funds other than those received under this section and therefore

 

offers full-day programs as part of its early childhood development

 

program shall receive priority in the allocation of funds under

 

section 32d over other eligible districts. As used in this

 


subsection, "full-day program" means a program that provides

 

supplementary child care that totals at least 10 hours of

 

programming per day.

 

(9) For any district with 315 or more eligible pupils, the

 

number of eligible pupils shall be 65% of the number calculated

 

using the formula under subsection (3). However, none of these

 

districts may have less than 315 pupils for purposes of calculating

 

the tentative allocation for eligible districts under section 32d.

 

(10) If, taking into account the total amount to be allocated

 

to the district as calculated under this section, a district

 

determines that it is able to include additional eligible children

 

in the great start readiness program without additional funds under

 

section 32d, the district may include additional eligible children

 

but shall not receive additional funding under section 32d for

 

those children.

 

(11) A consortium of 2 or more districts shall be eligible for

 

an allocation under section 32d if the districts designate a

 

district or intermediate district to serve as the fiscal agent for

 

the consortium's allocation. A consortium shall submit a single

 

application for the total number of children to be served. The

 

consortium may decide, with approval of all consortium members, to

 

serve numbers of children based on the allocation to each district

 

or based on the allocation to the entire consortium, allowing

 

children residing in any district in the consortium to be served by

 

the consortium at any location.

 

Sec. 39a. (1) From the federal funds appropriated in section

 

11, there is allocated for 2010-2011 2011-2012 to districts,

 


intermediate districts, and other eligible entities all available

 

federal funding, estimated at $761,973,600.00, for the federal

 

programs under the no child left behind act of 2001, Public Law

 

107-110. These funds are allocated as follows:

 

(a) An amount estimated at $10,808,600.00 to provide students

 

with drug- and violence-prevention programs and to implement

 

strategies to improve school safety, funded from DED-OESE, drug-

 

free schools and communities funds.

 

(b) An amount estimated at $7,461,800.00 for the purpose of

 

improving teaching and learning through a more effective use of

 

technology, funded from DED-OESE, educational technology state

 

grant funds.

 

(c) An amount estimated at $109,411,900.00 for the purpose of

 

preparing, training, and recruiting high-quality teachers and class

 

size reduction, funded from DED-OESE, improving teacher quality

 

funds.

 

(d) An amount estimated at $10,322,300.00 for programs to

 

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

 

from DED-OESE, language acquisition state grant funds.

 

(e) An amount estimated at $8,550,000.00 for the Michigan

 

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

 

school funds.

 

(f) An amount estimated at $1,760,000.00 for rural and low

 

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

 

funds.

 

(g) An amount estimated at $1,000.00 to help schools develop

 

and implement comprehensive school reform programs, funded from

 


DED-OESE, title I and title X, comprehensive school reform funds.

 

(h) An amount estimated at $517,479,800.00 to provide

 

supplemental programs to enable educationally disadvantaged

 

children to meet challenging academic standards, funded from DED-

 

OESE, title I, disadvantaged children funds.

 

(i) An amount estimated at $2,152,700.00 for the purpose of

 

providing unified family literacy programs, funded from DED-OESE,

 

title I, even start funds.

 

(j) An amount estimated at $8,807,200.00 for the purpose of

 

identifying and serving migrant children, funded from DED-OESE,

 

title I, migrant education funds.

 

(k) An amount estimated at $24,733,200.00 to promote high-

 

quality school reading instruction for grades K-3, funded from DED-

 

OESE, title I, reading first state grant funds.

 

(l) An amount estimated at $2,849,000.00 for the purpose of

 

implementing innovative strategies for improving student

 

achievement, funded from DED-OESE, title VI, innovative strategies

 

funds.

 

(m) An amount estimated at $40,050,000.00 for the purpose of

 

providing high-quality extended learning opportunities, after

 

school and during the summer, for children in low-performing

 

schools, funded from DED-OESE, twenty-first century community

 

learning center funds.

 

(n) An amount estimated at $17,586,100.00 to help support

 

local school improvement efforts, funded from DED-OESE, title I,

 

local school improvement grants.

 

(2) From the federal funds appropriated in section 11, there

 


is allocated for 2010-2011 2011-2012 to districts, intermediate

 

districts, and other eligible entities all available federal

 

funding, estimated at $32,359,700.00, for the following programs

 

that are funded by federal grants:

 

(a) An amount estimated at $600,000.00 for acquired

 

immunodeficiency syndrome education grants, funded from HHS

 

center for disease control, AIDS funding.

 

(b) An amount estimated at $1,814,100.00 to provide services

 

to homeless children and youth, funded from DED-OVAE, homeless

 

children and youth funds.

 

(c) An amount estimated at $1,445,600.00 for serve America

 

grants, funded from the corporation for national and community

 

service funds.

 

(d) An amount estimated at $28,500,000.00 for providing career

 

and technical education services to pupils, funded from DED-OVAE,

 

basic grants to states.

 

(3) To the extent allowed under federal law, the funds

 

allocated under subsection (1)(h), (i), (k), and (n) may be used

 

for 1 or more reading improvement programs that meet at least 1 of

 

the following:

 

(a) A research-based, validated, structured reading program

 

that aligns learning resources to state standards and includes

 

continuous assessment of pupils and individualized education plans

 

for pupils.

 

(b) A mentoring program that is a research-based, validated

 

program or a statewide 1-to-1 mentoring program and is designed to

 

enhance the independence and life quality of pupils who are

 


mentally impaired by providing opportunities for mentoring and

 

integrated employment.

 

(c) A cognitive development program that is a research-based,

 

validated educational service program focused on assessing and

 

building essential cognitive and perceptual learning abilities to

 

strengthen pupil concentration and learning.

 

(d) A structured mentoring-tutorial reading program for pupils

 

in preschool to grade 4 that is a research-based, validated program

 

that develops individualized educational plans based on each

 

pupil's age, assessed needs, reading level, interests, and learning

 

style.

 

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

 

distributed in accordance with federal law and with flexibility

 

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

 

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

 

Notwithstanding section 17b, payments of federal funds to

 

districts, intermediate districts, and other eligible entities

 

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

 

department.

 

(5) For the purposes of applying for federal grants

 

appropriated under this act, article, the department shall allow an

 

intermediate district to submit a consolidated consortium

 

application on behalf of 2 or more districts with the agreement of

 

those districts as appropriate according to federal rules and

 

guidelines.

 

(6) As used in this section:

 

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

 


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

 

secondary education.

 

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

 

education.

 

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

 

human services.

 

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

 

families.

 

Article 4

 

Sec. 40. The department biennially shall review alternative

 

methods to determine the number of children construed to be in need

 

of special readiness assistance. and shall report not later than

 

November 15 of each even-numbered year its findings and

 

recommendations to the senate and house appropriations

 

subcommittees responsible for district funding and the senate and

 

house committees responsible for education legislation and the

 

state budget director.

 

Article 5

 

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

 

allocated for 2009-2010 an amount not to exceed $1,016,342,000.00

 

and there is allocated for 2010-2011 an amount not to exceed

 

$1,057,883,000.00 $947,683,000.00 and there is allocated for 2011-

 

2012 an amount not to exceed $977,469,100.00 from state sources and

 

all available federal funding under sections 611 to 619 of part B

 

of the individuals with disabilities education act, 20 USC 1411 to

 

1419, estimated at $350,700,000.00 for 2009-2010 and estimated at

 

$385,700,000.00 for 2010-2011, and estimated at $363,400,000.00 for

 


2011-2012, plus any carryover federal funds from previous year

 

appropriations. The allocations under this subsection are for the

 

purpose of reimbursing districts and intermediate districts for

 

special education programs, services, and special education

 

personnel as prescribed in article 3 of the revised school code,

 

MCL 380.1701 to 380.1766; net tuition payments made by intermediate

 

districts to the Michigan schools for the deaf and blind; and

 

special education programs and services for pupils who are eligible

 

for special education programs and services according to statute or

 

rule. For meeting the costs of special education programs and

 

services not reimbursed under this article, a district or

 

intermediate district may use money in general funds or special

 

education funds, not otherwise restricted, or contributions from

 

districts to intermediate districts, tuition payments, gifts and

 

contributions from individuals, or federal funds that may be

 

available for this purpose, as determined by the intermediate

 

district plan prepared pursuant to article 3 of the revised school

 

code, MCL 380.1701 to 380.1766. All federal funds allocated under

 

this section in excess of those allocated under this section for

 

2002-2003 may be distributed in accordance with the flexible

 

funding provisions of the individuals with disabilities education

 

act, Public Law 108-446, including, but not limited to, 34 CFR

 

300.206 and 300.208. Notwithstanding section 17b, payments of

 

federal funds to districts, intermediate districts, and other

 

eligible entities under this section shall be paid on a schedule

 

determined by the department.

 

(2) From the funds allocated under subsection (1), there is

 


allocated each fiscal year the amount necessary, estimated at

 

$234,780,000.00 for 2009-2010 and estimated at $248,200,000.00

 

$236,300,000.00 for 2010-2011 and estimated at $245,500,000.00 for

 

2011-2012, for payments toward reimbursing districts and

 

intermediate districts for 28.6138% of total approved costs of

 

special education, excluding costs reimbursed under section 53a,

 

and 70.4165% of total approved costs of special education

 

transportation. Allocations under this subsection shall be made as

 

follows:

 

(a) The initial amount allocated to a district under this

 

subsection toward fulfilling the specified percentages shall be

 

calculated by multiplying the district's special education pupil

 

membership, excluding pupils described in subsection (12), times

 

the sum of the foundation allowance under section 20 of the pupil's

 

district of residence, plus the amount of the district's per pupil

 

allocation under section 20j(2), not to exceed the basic foundation

 

allowance under section 20 for the current fiscal year, or, for a

 

special education pupil in membership in a district that is a

 

public school academy or university school, times an amount equal

 

to the amount per membership pupil calculated under section 20(6).

 

For an intermediate district, the amount allocated under this

 

subdivision toward fulfilling the specified percentages shall be an

 

amount per special education membership pupil, excluding pupils

 

described in subsection (12), and shall be calculated in the same

 

manner as for a district, using the foundation allowance under

 

section 20 of the pupil's district of residence, not to exceed the

 

basic foundation allowance under section 20 for the current fiscal

 


year. , and that district's per pupil allocation under section

 

20j(2).

 

(b) After the allocations under subdivision (a), districts and

 

intermediate districts for which the payments calculated under

 

subdivision (a) do not fulfill the specified percentages shall be

 

paid the amount necessary to achieve the specified percentages for

 

the district or intermediate district.

 

(3) From the funds allocated under subsection (1), there is

 

allocated each fiscal year for 2009-2010 and for 2010-2011 the

 

amount necessary, estimated at $1,329,000.00 for 2009-2010 and

 

estimated at $1,400,000.00 for 2010-2011, to make payments to

 

districts and intermediate districts under this subsection. From

 

the funds allocated under subsection (1), there is allocated for

 

2011-2012 an amount not to exceed $1,000,000.00 to make payments to

 

districts and intermediate districts under this subsection. If the

 

amount allocated to a district or intermediate district for a

 

fiscal year under subsection (2)(b) is less than the sum of the

 

amounts allocated to the district or intermediate district for

 

1996-97 under sections 52 and 58, there is allocated to the

 

district or intermediate district for the fiscal year an amount

 

equal to that difference, adjusted by applying the same proration

 

factor that was used in the distribution of funds under section 52

 

in 1996-97 as adjusted to the district's or intermediate district's

 

necessary costs of special education used in calculations for the

 

fiscal year. This adjustment is to reflect reductions in special

 

education program operations or services between 1996-97 and

 

subsequent fiscal years. Adjustments for reductions in special

 


education program operations or services shall be made in a manner

 

determined by the department and shall include adjustments for

 

program or service shifts.

 

(4) If the department determines that the sum of the amounts

 

allocated for a fiscal year to a district or intermediate district

 

under subsection (2)(a) and (b) is not sufficient to fulfill the

 

specified percentages in subsection (2), then the shortfall shall

 

be paid to the district or intermediate district during the fiscal

 

year beginning on the October 1 following the determination and

 

payments under subsection (3) shall be adjusted as necessary. If

 

the department determines that the sum of the amounts allocated for

 

a fiscal year to a district or intermediate district under

 

subsection (2)(a) and (b) exceeds the sum of the amount necessary

 

to fulfill the specified percentages in subsection (2), then the

 

department shall deduct the amount of the excess from the

 

district's or intermediate district's payments under this act for

 

the fiscal year beginning on the October 1 following the

 

determination and payments under subsection (3) shall be adjusted

 

as necessary. However, if the amount allocated under subsection

 

(2)(a) in itself exceeds the amount necessary to fulfill the

 

specified percentages in subsection (2), there shall be no

 

deduction under this subsection.

 

(5) State funds shall be allocated on a total approved cost

 

basis. Federal funds shall be allocated under applicable federal

 

requirements, except that an amount not to exceed $3,500,000.00 may

 

be allocated by the department each fiscal year for 2009-2010 and

 

for 2010-2011 and for 2011-2012 to districts, intermediate

 


districts, or other eligible entities on a competitive grant basis

 

for programs, equipment, and services that the department

 

determines to be designed to benefit or improve special education

 

on a statewide scale.

 

(6) From the amount allocated in subsection (1), there is

 

allocated an amount not to exceed $1,750,000.00 for 2009-2010 and

 

an amount not to exceed $2,200,000.00 for 2010-2011 and for 2011-

 

2012 to reimburse 100% of the net increase in necessary costs

 

incurred by a district or intermediate district in implementing the

 

revisions in the administrative rules for special education that

 

became effective on July 1, 1987. As used in this subsection, "net

 

increase in necessary costs" means the necessary additional costs

 

incurred solely because of new or revised requirements in the

 

administrative rules minus cost savings permitted in implementing

 

the revised rules. Net increase in necessary costs shall be

 

determined in a manner specified by the department.

 

(7) For purposes of this article, sections 51a to 58, all of

 

the following apply:

 

(a) "Total approved costs of special education" shall be

 

determined in a manner specified by the department and may include

 

indirect costs, but shall not exceed 115% of approved direct costs

 

for section 52 and section 53a programs. The total approved costs

 

include salary and other compensation for all approved special

 

education personnel for the program, including payments for social

 

security and medicare and public school employee retirement system

 

contributions. The total approved costs do not include salaries or

 

other compensation paid to administrative personnel who are not

 


special education personnel as defined in section 6 of the revised

 

school code, MCL 380.6. Costs reimbursed by federal funds, other

 

than those federal funds included in the allocation made under this

 

article, are not included. Special education approved personnel not

 

utilized full time in the evaluation of students or in the delivery

 

of special education programs, ancillary, and other related

 

services shall be reimbursed under this section only for that

 

portion of time actually spent providing these programs and

 

services, with the exception of special education programs and

 

services provided to youth placed in child caring institutions or

 

juvenile detention programs approved by the department to provide

 

an on-grounds education program.

 

(b) Beginning with the 2004-2005 fiscal year, a district or

 

intermediate district that employed special education support

 

services staff to provide special education support services in

 

2003-2004 or in a subsequent fiscal year and that in a fiscal year

 

after 2003-2004 receives the same type of support services from

 

another district or intermediate district shall report the cost of

 

those support services for special education reimbursement purposes

 

under this act. article. This subdivision does not prohibit the

 

transfer of special education classroom teachers and special

 

education classroom aides if the pupils counted in membership

 

associated with those special education classroom teachers and

 

special education classroom aides are transferred and counted in

 

membership in the other district or intermediate district in

 

conjunction with the transfer of those teachers and aides.

 

(c) If the department determines before bookclosing for a

 


fiscal year that the amounts allocated for that fiscal year under

 

subsections (2), (3), (6), (8), and (12) and sections 53a, 54, and

 

56 will exceed expenditures for that fiscal year under subsections

 

(2), (3), (6), (8), and (12) and sections 53a, 54, and 56, then for

 

a district or intermediate district whose reimbursement for that

 

fiscal year would otherwise be affected by subdivision (b),

 

subdivision (b) does not apply to the calculation of the

 

reimbursement for that district or intermediate district and

 

reimbursement for that district or intermediate district shall be

 

calculated in the same manner as it was for 2003-2004. If the

 

amount of the excess allocations under subsections (2), (3), (6),

 

(8), and (12) and sections 53a, 54, and 56 is not sufficient to

 

fully fund the calculation of reimbursement to those districts and

 

intermediate districts under this subdivision, then the

 

calculations and resulting reimbursement under this subdivision

 

shall be prorated on an equal percentage basis.

 

(d) Reimbursement for ancillary and other related services, as

 

defined by R 340.1701c of the Michigan administrative code, shall

 

not be provided when those services are covered by and available

 

through private group health insurance carriers or federal

 

reimbursed program sources unless the department and district or

 

intermediate district agree otherwise and that agreement is

 

approved by the state budget director. Expenses, other than the

 

incidental expense of filing, shall not be borne by the parent. In

 

addition, the filing of claims shall not delay the education of a

 

pupil. A district or intermediate district shall be responsible for

 

payment of a deductible amount and for an advance payment required

 


until the time a claim is paid.

 

(e) Beginning with calculations for 2004-2005, if an

 

intermediate district purchases a special education pupil

 

transportation service from a constituent district that was

 

previously purchased from a private entity; if the purchase from

 

the constituent district is at a lower cost, adjusted for changes

 

in fuel costs; and if the cost shift from the intermediate district

 

to the constituent does not result in any net change in the revenue

 

the constituent district receives from payments under sections 22b

 

and 51c, then upon application by the intermediate district, the

 

department shall direct the intermediate district to continue to

 

report the cost associated with the specific identified special

 

education pupil transportation service and shall adjust the costs

 

reported by the constituent district to remove the cost associated

 

with that specific service.

 

(8) From the allocation in subsection (1), there is allocated

 

each fiscal year for 2009-2010 and for 2010-2011 only an amount not

 

to exceed $15,313,900.00 to intermediate districts. The payment

 

under this subsection to each intermediate district shall be equal

 

to the amount of the 1996-97 allocation to the intermediate

 

district under subsection (6) of this section as in effect for

 

1996-97.

 

(9) A pupil who is enrolled in a full-time special education

 

program conducted or administered by an intermediate district or a

 

pupil who is enrolled in the Michigan schools for the deaf and

 

blind shall not be included in the membership count of a district,

 

but shall be counted in membership in the intermediate district of

 


residence.

 

(10) Special education personnel transferred from 1 district

 

to another to implement the revised school code shall be entitled

 

to the rights, benefits, and tenure to which the person would

 

otherwise be entitled had that person been employed by the

 

receiving district originally.

 

(11) If a district or intermediate district uses money

 

received under this section for a purpose other than the purpose or

 

purposes for which the money is allocated, the department may

 

require the district or intermediate district to refund the amount

 

of money received. Money that is refunded shall be deposited in the

 

state treasury to the credit of the state school aid fund.

 

(12) From the funds allocated in subsection (1), there is

 

allocated each fiscal year the amount necessary, estimated at

 

$6,200,000.00 for 2009-2010 and estimated at $6,600,000.00

 

$5,000,000.00 for 2010-2011, and estimated at $6,800,000.00 for