SB-0961, As Passed Senate, April 25, 2012

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 961

 

 

 

 

 

 

 

 

 

 

 

A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 3, 4, 6, 11, 11a, 11g, 11j, 11k, 11m, 12, 15,

 

18, 18c, 19, 20, 20d, 22a, 22b, 22d, 24, 24a, 24c, 25, 26a, 26b,

 

31a, 31d, 31f, 32d, 39, 39a, 51a, 51c, 51d, 53a, 54, 56, 61a, 62,

 

74, 81, 93, 94a, 98, 99, 101, 102, 104, 107, 147, 147a, 147b, and

 

152a (MCL 388.1603, 388.1604, 388.1606, 388.1611, 388.1611a,

 

388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1612, 388.1615,

 

388.1618, 388.1618c, 388.1619, 388.1620, 388.1620d, 388.1622a,

 

388.1622b, 388.1622d, 388.1624, 388.1624a, 388.1624c, 388.1625,

 

388.1626a, 388.1626b, 388.1631a, 388.1631d, 388.1631f, 388.1632d,

 

388.1639, 388.1639a, 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, 388.1701, 388.1702,

 

388.1704, 388.1707, 388.1747, 388.1747a, 388.1747b, and 388.1752a),

 


sections 3, 19, and 101 as amended by 2010 PA 110, section 4 as

 

amended by 2008 PA 268, sections 6, 11, 11a, 11m, 22a, 22b, 24a,

 

24c, 26b, 51a, 51c, 74, and 104 as amended by 2012 PA 29, sections

 

11g, 11k, 15, 18, 20, 20d, 22d, 24, 31a, 32d, 39, 39a, 51d, 54, 56,

 

61a, 81, 93, 94a, 98, 99, 107, 147, and 152a as amended sections

 

12, 147a, and 147b as added by 2011 PA 62, sections 11j, 26a, 31d,

 

31f, 53a, and 62 as amended by 2011 PA 299, section 18c as added by

 

2000 PA 297, section 25 as amended by 2011 PA 322, and section 102

 

as amended by 2010 PA 204, and by adding sections 11s, 11t, 11u,

 

22g, 22i, 32p, 95, and 104c; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

Sec. 3. (1) "Achievement authority" means that term as defined

 

in part 7c of the revised school code, MCL 380.771 to 380.778.

 

(2) "Achievement school" means a public school within the

 

education achievement system operated, managed, authorized,

 

established, or overseen by the achievement authority.

 

(3) (1) "Average daily attendance", for the purposes of

 

complying with federal law, means 92% of the pupils counted in

 

membership on the pupil membership count day, as defined in section

 

6(7).

 

(4) (2) "Board" means the governing body of a district or

 

public school academy.

 

(5) (3) "Center" means the center for educational performance

 

and information created in section 94a.

 

(6) (4) "Cooperative education program" means a written

 

voluntary agreement between and among districts to provide certain

 

educational programs for pupils in certain groups of districts. The

 


written agreement shall be approved by all affected districts at

 

least annually and shall specify the educational programs to be

 

provided and the estimated number of pupils from each district who

 

will participate in the educational programs.

 

(7) (5) "Department", except in section 107, means the

 

department of education.

 

(8) (6) "District" means a local school district established

 

under the revised school code or, except in sections 6(4), 6(6),

 

11r, 13, 20, 22a, 23, 29, 31a, 51a(15), 51a(14), 105, 105c, and

 

166b, a public school academy. Except in sections 6(4), 6(6), 13,

 

20, 22a, 29, 51a(15), 105, 105c, and 166b, district also includes a

 

university school.Except in sections 6(4), 6(6), 6(8), 6(19), 13,

 

20, 22a, 31a, 105, 105c, and 166b, district also includes the

 

education achievement system.

 

(9) (7) "District of residence", except as otherwise provided

 

in this subsection, means the district in which a pupil's custodial

 

parent or parents or legal guardian resides. For a pupil described

 

in section 24b, the pupil's district of residence is the district

 

in which the pupil enrolls under that section. For a pupil

 

described in section 6(4)(d), the pupil's district of residence

 

shall be considered to be the district or intermediate district in

 

which the pupil is counted in membership under that section. For a

 

pupil under court jurisdiction who is placed outside the district

 

in which the pupil's custodial parent or parents or legal guardian

 

resides, the pupil's district of residence shall be considered to

 

be the educating district or educating intermediate district.

 

(10) (8) "District superintendent" means the superintendent of

 


a district, the chief administrator of a public school academy, or

 

the chief administrator of a university school.chancellor of the

 

achievement authority.

 

Sec. 4. (1) "Education achievement system" means that term as

 

defined in part 7c of the revised school code, MCL 380.771 to

 

380.778.

 

(2) (1) "Elementary pupil" means a pupil in membership in

 

grades K to 8 in a district not maintaining classes above the

 

eighth grade or in grades K to 6 in a district maintaining classes

 

above the eighth grade. For the purposes of calculating universal

 

service fund (e-rate) discounts, "elementary pupil" includes

 

children enrolled in a preschool program operated by a district in

 

its facilities.

 

(3) (2) "Extended school year" means an educational program

 

conducted by a district in which pupils must be enrolled but not

 

necessarily in attendance on the pupil membership count day in an

 

extended year program. The mandatory clock hours shall be completed

 

by each pupil not more than 365 calendar days after the pupil's

 

first day of classes for the school year prescribed. The department

 

shall prescribe pupil, personnel, and other reporting requirements

 

for the educational program.

 

(4) (3) "Fiscal year" means the state fiscal year that

 

commences October 1 and continues through September 30.

 

(5) (4) "General educational development testing preparation

 

program" means a program that has high school level courses in

 

English language arts, social studies, science, and mathematics and

 

that prepares a person to successfully complete the general

 


educational development (GED) test.

 

(6) (5) "High school pupil" means a pupil in membership in

 

grades 7 to 12, except in a district not maintaining grades above

 

the eighth grade.

 

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

 

district or by an intermediate district for special education

 

pupils from several districts in programs for pupils with autism

 

spectrum disorder, pupils with severe cognitive impairment, pupils

 

with moderate cognitive impairment, pupils with severe multiple

 

impairments, pupils with hearing impairment, pupils with visual

 

impairment, and pupils with physical impairment or other health

 

impairment. Programs for pupils with emotional impairment housed in

 

buildings that do not serve regular education pupils also qualify.

 

Unless otherwise approved by the department, a center program

 

either shall serve all constituent districts within an intermediate

 

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

 

pupils residing in the operating district. In addition, special

 

education center program pupils placed part-time in noncenter

 

programs to comply with the least restrictive environment

 

provisions of section 612 of part B of the individuals with

 

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

 

program pupils for pupil accounting purposes for the time scheduled

 

in either a center program or a noncenter program.

 

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

 

annual completion and pupil dropout rate that is calculated by the

 

center pursuant to nationally recognized standards.

 

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

 


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

 

the district for the immediately preceding school year, adjusted

 

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

 

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

 

credential of equal status.

 

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

 

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

 

school, the education achievement system, or an intermediate

 

district the sum of the product of .90 times the number of full-

 

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

 

regular daily attendance on the pupil membership count day for the

 

current school year, plus the product of .10 times the final

 

audited count from the supplemental count day for the immediately

 

preceding 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, or for

 

the education achievement system, a pupil's participation in the

 

cyber school's educational program or in an online educational

 

program of the education achievement system or of an achievement

 

school is considered regular daily attendance. The amount of the

 

foundation allowance for a pupil in membership is determined under

 


section 20. In making the calculation of membership, all of the

 

following, as applicable, apply to determining the membership of a

 

district, a public school academy, university school, the education

 

achievement system, or an intermediate district:

 

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

 

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

 

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

 

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

 

membership.

 

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

 

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

 

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

 

of residence does not give the educating district its approval to

 

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

 

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

 

the requirement that the educating district must have the approval

 

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

 

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

 

district.

 

(c) A special education pupil educated by the intermediate

 

district shall be counted in membership in the intermediate

 

district.

 

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

 

program of a juvenile detention facility, a child caring

 

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

 

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

 

or intermediate district approved by the department to operate the

 


program.

 

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

 

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

 

district of residence.

 

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

 

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

 

single district or in an area vocational-technical education

 

program established pursuant to section 690 of the revised school

 

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

 

residence.

 

(g) A pupil enrolled in a university school shall be counted

 

in membership in the university school.

 

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

 

counted in membership in the public school academy.

 

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

 

in membership in the education achievement system.

 

(i) For a new district , university school, or public school

 

academy beginning its operation after December 31, 1994, or for the

 

education achievement system or an achievement school, membership

 

for the first 2 full or partial fiscal years of operation shall be

 

determined as follows:

 

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

 

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

 

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

 

daily attendance on the pupil membership count day for the current

 

school year and on the supplemental count day for the current

 

school year, as determined by the department and calculated by

 


adding the number of pupils registered for attendance on the pupil

 

membership count day plus pupils received by transfer and minus

 

pupils lost as defined by rules promulgated by the superintendent,

 

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

 

audited count from the supplemental count day for the current

 

school year, and dividing that sum by 2.

 

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

 

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

 

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

 

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

 

enrolled and in regular daily attendance on the supplemental count

 

day for the current school year.

 

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

 

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

 

in membership on the pupil membership count day in the public

 

school academy, the determination of the district's membership

 

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

 

preceding supplemental count day any pupils who are counted in the

 

public school academy on that first pupil membership count day who

 

were also counted in the district on the immediately preceding

 

supplemental count day.

 

(k) In a district, a public school academy, university school,

 

the education achievement system, or an intermediate district

 

operating an extended school year program approved by the

 

superintendent, a pupil enrolled, but not scheduled to be in

 

regular daily attendance on a pupil membership count day, shall be

 

counted.

 


(l) 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 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 pupil with

 

a disability as defined in R 340.1702 of the Michigan

 

administrative code. An individual participating in a job training

 

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

 

under former section 107b, administered by the Michigan strategic

 

fund, or the 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 or the education achievement system is also educated by a

 

district or intermediate district as part of a cooperative

 

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

 

the public school academy or the education achievement system

 

unless a written agreement signed by all parties designates the

 

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

 

and the instructional time scheduled for the pupil in the district

 

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

 

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

 

receiving instruction in both a public school academy or the

 

education achievement system and in a district or intermediate

 

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

 

following apply:

 

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

 

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

 

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

 

education achievement system shall receive as its prorated share of

 

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

 

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

 

school academy or the education achievement system provides divided

 

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

 

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

 

of those pupils shall be allocated to the district or intermediate

 

district providing the remainder of the hours of instruction.

 


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

 

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

 

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

 

providing the remainder of the hours of instruction shall receive

 

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

 

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

 

of instruction the district or intermediate district provides

 

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

 

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

 

membership for each of those pupils shall be allocated to the

 

public school academy or the education achievement system.

 

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

 

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

 

education program shall not be counted in membership if there are

 

also adult education participants being educated in the same

 

program or classroom.

 

(p) The department shall give a uniform interpretation of

 

full-time and part-time memberships.

 

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

 

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

 

determining full-time equated memberships for pupils who are

 

enrolled in a postsecondary institution, a pupil shall not be

 

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

 

of the effect of his or her postsecondary enrollment, including

 

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

 

district to the pupil.

 

(r) Full-time equated memberships for pupils in kindergarten

 


Senate Bill No. 961 as amended April 25, 2012

 

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 Beginning in 2012-

 

2013, full-time equated memberships for pupils in kindergarten

 

shall be determined by dividing the number of class instructional

 

hours scheduled and provided per year per kindergarten pupil by the

 

same number used for determining full-time equated memberships for

 

pupils in grades 1 to 12. The change in the counting of full-time

 

equated memberships for pupils in kindergarten that takes effect in

 

2012-2013 is not <<A MANDATE AND IS NOT>> intended to jeopardize federal

title I <<FUNDS THAT ARE>> used for

kindergarten funding. It is the intent of the legislature that

 

federal title I funding will continue to be available to districts

 

to fund full-day kindergarten.

 

(s) For a district, university school, or a public school

 

academy, or the education achievement system that has pupils

 

enrolled in a grade level that was not offered by the district,

 

university school, or the public school academy, or the education

 

achievement system in the immediately preceding school year, the

 

number of pupils enrolled in that grade level to be counted in

 

membership is the average of the number of those pupils enrolled

 

and in regular daily attendance on the pupil membership count day

 

and the supplemental count day of the current school year, as

 

determined by the department. Membership shall be calculated by

 

adding the number of pupils registered for attendance in that grade

 

level on the pupil membership count day plus pupils received by

 

transfer and minus pupils lost as defined by rules promulgated by

 


the superintendent, and as corrected by subsequent department

 

audit, plus the final audited count from the supplemental count day

 

for the current school year, and dividing that sum by 2.

 

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

 

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

 

written approval of all parties to the cooperative agreement.

 

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

 

determines through the district's alternative or disciplinary

 

education program that the best instructional placement for a pupil

 

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

 

population, if that placement is authorized in writing by the

 

district superintendent and district alternative or disciplinary

 

education supervisor, and if the district provides appropriate

 

instruction as described in this subdivision to the pupil at the

 

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

 

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

 

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

 

district actually provides to the pupil divided by the number of

 

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

 

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

 

be providing appropriate instruction if all of the following are

 

met:

 

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

 

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

 

apart from the general school population under the supervision of a

 

certificated teacher.

 

(ii) The district provides instructional materials, resources,

 


and supplies, except computers, that are comparable to those

 

otherwise provided in the district's alternative education program.

 

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

 

alternative education program.

 

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

 

pupil's transcript.

 

(v) A pupil enrolled in an alternative or disciplinary

 

education program described in section 25 shall be counted in

 

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

 

education achievement system that is educating the pupil.

 

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

 

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

 

with its authorizing body is revoked or the public school academy

 

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

 

or the education achievement system within 45 days after the pupil

 

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

 

the education achievement system's pupil count for the pupil

 

membership count day to include the pupil in the count.

 

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

 

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

 

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

 

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

 

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

 

the first pupil membership count day or supplemental count day,

 

whichever is first, occurring after operations resume, plus the

 

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

 

pupil membership count day or supplemental count day that occurred

 


before suspending operations, as determined by the superintendent.

 

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

 

as otherwise calculated under this subsection, would be less than

 

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

 

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

 

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

 

district's membership shall be considered to be the membership

 

figure calculated under this subdivision. If a district educates

 

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

 

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

 

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

 

determination allowed under this sentence, the department shall

 

include the square mileage of both districts in determining the

 

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

 

purposes of this subdivision. The membership figure calculated

 

under this subdivision is the greater of the following:

 

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

 

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

 

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

 

otherwise calculated under this subsection, and dividing the sum of

 

those 3 membership figures by 3.

 

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

 

otherwise calculated under this subsection.

 

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

 

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

 

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

 

adjust the membership count of the district or the education

 


achievement system in which a former pupil of the public school

 

academy enrolls and is in regular daily attendance for the next

 

school year to ensure that the district or the education

 

achievement system receives the same amount of membership aid for

 

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

 

education achievement system on the supplemental count day of the

 

preceding school year.

 

(aa) Full-time equated memberships for 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 early

 

childhood special education services under R 340.1755 of the

 

Michigan administrative code shall be determined by dividing the

 

number of hours of service scheduled and provided per year per

 

pupil by 180.

 

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

 

Labor day who is enrolled in an intermediate district program that

 

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

 

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

 

attended by the pupil before Labor day.

 

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

 

membership on the pupil membership count day in a middle college

 

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

 

membership on the pupil membership count day and on the

 


supplemental count day for the current school year, as determined

 

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

 

on the immediately preceding supplemental count day, the pupil

 

shall be excluded from the district's immediately preceding

 

supplemental count for purposes of determining the district's

 

membership.

 

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

 

achievement system that educates a pupil who attends a United

 

States Olympic education center may count the pupil in membership

 

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

 

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

 

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

 

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

 

district or the education achievement system.

 

(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.the education achievement system.

 


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

 

district of residence under an intermediate district schools of

 

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

 

91 if the intermediate district and its constituent districts have

 

been exempted from section 105.

 

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

 

district of residence if the pupil is enrolled in accordance with

 

section 105 or 105c.

 

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

 

whose parent or legal guardian has made an official written

 

complaint to law enforcement officials and to school officials of

 

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

 

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

 

the official complaint either indicates that the assault occurred

 

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

 

pupils enrolled in the school the pupil would otherwise attend in

 

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

 

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

 

crime to law enforcement officials for the purposes of this

 

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

 

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

 

that conduct. As used in this subdivision:

 

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

 

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

 

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

 

school premises.

 

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

 


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

 

MCL 750.81 to 750.90g, 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 if the pupil's

 

district of residence and the enrolling district are both

 

constituent districts of the same intermediate district.

 

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

 

district of residence who attends a United States Olympic education

 

center.

 

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

 

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

 

school code, MCL 380.1148.

 

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

 

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

 

adequate yearly progress under the no child left behind act of

 

2001, Public Law 107-110.

 

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

 

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

 

(q) A pupil enrolled in a vocational job training program or

 

alternative high school diploma program operated by a state-

 

licensed proprietary school or nonprofit corporation in conjunction

 

with a district, if the pupil's district of residence does not

 

offer a vocational job training program or alternative high school

 


diploma program. As used in this subdivision, "state-licensed

 

proprietary school" means licensed under the proprietary schools

 

act, 1943 PA 148, MCL 395.101 to 395.103.

 

(r) A pupil enrolled in an alternative education program

 

operated by a district in a city or county jail, if the pupil's

 

district of residence does not offer a vocational job training

 

program or alternative high school diploma program.

 

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 unless the district is educating pupils

 

in an alternative or vocational education program and the pupil's

 

district of residence does not offer an alternative or vocational

 

education program.

 

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

 

district means:

 

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

 

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

 

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

 

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

 

superintendent, the immediately following day on which school is in

 

session in the district or building.

 

(b) For a district or intermediate district maintaining school

 

during the entire school year, the following days:

 

(i) Fourth Wednesday in July.

 


(ii) First Wednesday in October.

 

(iii) Second Wednesday in February.

 

(iv) Fourth Wednesday in April.

 

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

 

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

 

receiving instruction in all classes for which they are enrolled on

 

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

 

applicable. Except as otherwise provided in this subsection, a

 

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

 

enrolled on the pupil membership count day or supplemental count

 

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

 

consecutive school days immediately following the pupil membership

 

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

 

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

 

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

 

pupil membership count day or supplemental count day and who fails

 

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

 

30 calendar days after the pupil membership count day or

 

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

 

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

 

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

 

school academy, or the education achievement system before the

 

pupil membership count day or supplemental count day of a

 

particular year but was expelled or suspended on the pupil

 

membership count day or supplemental count day shall only be

 

counted as 1.0 full-time equated membership if the pupil resumed

 

attendance in the district, intermediate district, or public school

 


academy, or education achievement system within 45 days after the

 

pupil membership count day or supplemental count day of that

 

particular year. Pupils not counted as 1.0 full-time equated

 

membership due to an absence from a class shall be counted as a

 

prorated membership for the classes the pupil attended. For

 

purposes of this subsection, "class" means a period of time in 1

 

day when pupils and a certificated teacher or legally qualified

 

substitute teacher are together and instruction is taking place.

 

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

 

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

 

24.328.

 

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

 

380.1852.

 

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

 

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

 

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

 

preceding fiscal year.

 

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

 

July 1 and continues through June 30.

 

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

 

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

 

district or intermediate district superintendent, means the

 

superintendent of public instruction described in section 3 of

 

article VIII of the state constitution of 1963.

 

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

 

supplemental pupil count is conducted under section 6a.

 

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

 


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

 

for whom tuition may be charged. 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 or, for an

 

achievement school, by the chancellor of the achievement authority

 

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

 

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

 

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

 

that forms the basis of classroom instruction.

 

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

 

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

 

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

 

article.

 

(21) "University school" means an instructional program

 

operated by a public university under section 23 that meets the

 


Senate Bill No. 961 as amended April 25, 2012

 

requirements of section 23.

 

Sec. 11. (1) 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 $10,967,333,600.00 $10,944,333,600.00 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, 2012. Subject

 

to subsection (3), for the fiscal year ending September 30, 2013,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

<<$10,715,091,400.00>> from the state school aid fund and the sum of

 

$296,516,400.00 from the general fund. In addition, all available

 

federal funds are appropriated for the fiscal year ending September

 

30, 2013.

 

(2) The appropriations under this section shall be allocated

 

as provided in this article. Money appropriated under this section

 

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

 

this article before the expenditure of money appropriated under

 

this section from the state school aid fund.

 

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

 

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

 

the school aid stabilization fund created under section 11a.

 

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

 

a separate account within the state school aid fund established by

 

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

 


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

 

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

 

state treasurer shall deposit into the school aid stabilization

 

fund all of the following:

 

(a) Unexpended and unencumbered state school aid fund revenue

 

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

 

the bookclosing for that fiscal year.

 

(b) Money statutorily dedicated to the school aid

 

stabilization fund.

 

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

 

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

 

not be expended without a specific appropriation from the school

 

aid stabilization fund. Money in the school aid stabilization fund

 

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

 

money may be expended.

 

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

 

school aid stabilization fund. The state treasurer shall credit to

 

the school aid stabilization fund interest and earnings from fund

 

investments.

 

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

 

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

 

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

 

general fund.

 

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

 

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

 

available for expenditure from the state school aid fund for that

 

fiscal year, there is appropriated from the school aid

 


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

 

the projected shortfall as determined by the department of

 

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

 

stabilization fund. If the money in the school aid stabilization

 

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

 

shortfall, the state budget director shall notify the legislature

 

as required under section 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 2011-2012, 2012-2013, in addition to the

 

appropriations in section 11, there is appropriated from the school

 

aid stabilization fund to the state school aid fund the amount

 

necessary to fully fund the allocations under this article.

 

(8) Effective on the effective date of this subsection,

 

February 24, 2012, in addition to any amounts otherwise deposited

 

into the school aid stabilization fund, there is transferred from

 

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

 

amount equal to $100,000,000.00.

 

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

 

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

 

for the fiscal year ending September 30, 2012 2013, and for each

 

succeeding fiscal year through the fiscal year ending September 30,

 

2015, after which these payments will cease. These allocations are

 

for paying the amounts described in subsection (3) to districts and

 

intermediate districts, other than those receiving a lump-sum

 

payment under section 11f(2), that were not plaintiffs in the

 

consolidated cases known as Durant v State of Michigan, Michigan

 


supreme court docket no. 104458-104492 and that, on or before March

 

2, 1998, submitted to the state treasurer a waiver resolution

 

described in section 11f. The amounts paid under this section

 

represent offers of settlement and compromise of any claim or

 

claims that were or could have been asserted by these districts and

 

intermediate districts, as described in this section.

 

(2) This section does not create any obligation or liability

 

of this state to any district or intermediate district that does

 

not submit a waiver resolution described in section 11f. This

 

section and any other provision of this article are not intended to

 

admit liability or waive any defense that is or would be available

 

to this state or its agencies, employees, or agents in any

 

litigation or future litigation with a district or intermediate

 

district regarding these claims or potential claims.

 

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

 

intermediate district under this section shall be 1 of the

 

following:

 

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

 

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

 

listed in section 11h for the district or intermediate district

 

through the fiscal year ending September 30, 2013.

 

(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 $2,837,800.00 for 2010-2011 and

 

an amount not to exceed $93,575,300.00 for 2011-2012

 

$120,390,000.00 for 2012-2013 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 2011-2012, 2012-2013, there is appropriated from

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

allocated for 2011-2012 2012-2013 an amount not to exceed

 

$8,500,000.00 $10,000,000.00 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. 11s. From the school aid funds appropriated in section

 

11, there is allocated for 2012-2013 an amount not to exceed

 

$6,000,000.00 to the education reserve fund. The education reserve

 

fund is created as a separate account within the state school aid

 

fund. Funds shall not be appropriated from the education reserve

 


fund until the enactment of a statue amending this section that

 

provides for an appropriation from the education reserve fund and

 

specifies the purpose or purposes of appropriations from the

 

education reserve fund.

 

Sec. 11t. It is the intent of the legislature to enact

 

legislation as necessary to change the name of the state school aid

 

fund to the "comprehensive education fund".

 

Sec. 11u. It is the intent of the legislature to examine the

 

existing structure of funding under this article and to determine

 

to what extent, if any, categorical funding under this article may

 

instead be used for funding foundation allowances and other basic

 

per pupil payments.

 

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

 

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

 

article, state aid overpayments to a district, other than

 

overpayments in payments for special education or special education

 

transportation, may be recovered from any payment made under this

 

article other than a special education or special education

 

transportation payment. 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 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 2011-2012 2012-

 

2013 for obligations in excess of applicable appropriations an

 

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

 

amounts available from overpayments.

 

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

 

article, each district or other entity shall apply the money

 

received by the district or entity under this article to salaries

 

and other compensation of teachers and other employees, tuition,

 

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

 

purchase of textbooks, 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 or

 

intermediate district under this article may be transferred by the

 

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

 

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

 

a purpose other than as provided in this section. The department

 

shall determine the reasonableness of expenditures and may withhold

 

from a recipient of funds under this article the apportionment

 


otherwise due upon a violation by the recipient.

 

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

 

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

 

adopts a subsequent revision to that budget, the district shall

 

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

 

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

 

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

 

prescribed by the department:

 

(a) The annual operating budget and subsequent budget

 

revisions.

 

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

 

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

 

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

 

following 2 pie charts:

 

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

 

following subcategories:

 

(A) Salaries and wages.

 

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

 

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

 

benefits.

 

(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 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) A district's or intermediate district's annual financial

 

audit shall include an analysis of the financial and pupil

 

accounting data used as the basis for distribution of state school

 

aid.

 

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

 

audits, and management letters are subject to requirements

 

established in the auditing and accounting manuals approved and

 


published by the department.

 

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

 

15 each year:

 

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

 

with the intermediate district and the department.

 

(ii) The intermediate district shall file the annual financial

 

audit reports for the intermediate district with the department.

 

(iii) The intermediate district shall enter the pupil membership

 

audit reports for its constituent districts and for the

 

intermediate district, for the pupil membership count day and

 

supplemental count day, in the Michigan student data system.

 

(f) The annual financial audit reports and pupil accounting

 

procedures reports shall be available to the public in compliance

 

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

 

15.246.

 

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

 

shall notify the state budget director and the legislative

 

appropriations subcommittees responsible for review of the school

 

aid budget of districts and intermediate districts that have not

 

filed an annual financial audit and pupil accounting procedures

 

report required under this section for the school year ending in

 

the immediately preceding fiscal year.

 

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

 

intermediate district shall submit to the center, in a manner

 

prescribed by the center, annual comprehensive financial data

 

consistent with accounting manuals and charts of accounts approved

 

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

 


report shall also contain the website address where the department

 

can access the report required under section 620 of the revised

 

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

 

prescribed Michigan public school accounting manual chart of

 

accounts includes standard conventions to distinguish expenditures

 

by allowable fund function and object. The functions shall include

 

at minimum categories for instruction, pupil support, instructional

 

staff support, general administration, school administration,

 

business administration, transportation, facilities operation and

 

maintenance, facilities acquisition, and debt service; and shall

 

include object classifications of salary, benefits, including

 

categories for active employee health expenditures, purchased

 

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

 

report the required level of detail consistent with the manual as

 

part of the comprehensive annual financial report.

 

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

 

intermediate district shall file with the department the special

 

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

 

the manner prescribed by the department.

 

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

 

district shall file with the center the transportation expenditure

 

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

 

by the center.

 

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

 

auditing manuals at least annually and shall periodically update

 

those manuals to reflect changes in this article.

 

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

 


property using money received under this article, the public school

 

academy shall retain ownership of the property unless the public

 

school academy sells the property at fair market value.

 

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

 

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

 

withhold all state school aid due to the district or intermediate

 

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

 

the district or intermediate district, until the district or

 

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

 

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

 

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

 

the district or intermediate district forfeits the amount withheld.

 

Sec. 18c. Any contract, mortgage, loan, or other instrument of

 

indebtedness entered into by a public school academy, the

 

achievement authority, or an achievement school receiving funds

 

under this act and a third party does not constitute an obligation,

 

either general, special, or moral, of this state or of an

 

authorizing body. The full faith and credit or the taxing power of

 

this state or any agency of this state, or the full faith and

 

credit of an authorizing body, shall not be pledged for the payment

 

of any contract, mortgage, loan, or other instrument of

 

indebtedness entered into by a public school academy, the

 

achievement authority, or an achievement school.

 

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

 

with all applicable reporting requirements specified in state and

 

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

 

prescribed by the center, shall be aggregated and disaggregated as

 


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

 

intermediate district shall cooperate with all measures taken by

 

the center to comply with the provisions of the American recovery

 

and reinvestment act of 2009, Public Law 111-5, requiring the

 

establishment of establish and maintain a statewide P-20

 

longitudinal data system.

 

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

 

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

 

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

 

prescribed by the center, the information necessary for the

 

preparation of the district and high school graduation report. This

 

information shall meet requirements established in the pupil

 

auditing manual approved and published by the department. The

 

center shall calculate an annual graduation and pupil dropout rate

 

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

 

with nationally recognized standards for these calculations. The

 

center shall report all graduation and dropout rates to the senate

 

and house education committees and appropriations committees, the

 

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

 

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

 

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

 

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

 

prescribed by the center, information related to educational

 

personnel as necessary for reporting required by state and federal

 

law.

 

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

 

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

 


to safety practices and criminal incidents as necessary for

 

reporting required by state and federal law.

 

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

 

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

 

the total funds for which the district or intermediate district

 

qualifies under this act article until the district or intermediate

 

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

 

intermediate district does not comply with all of those subsections

 

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

 

amount withheld in an escrow account until the district or

 

intermediate district complies with all of those subsections.

 

(6) Before publishing a list of schools or districts

 

determined to have failed to make adequate yearly progress as

 

required by the no child left behind act of 2001, Public Law 107-

 

110, the department shall allow a school or district to appeal that

 

determination. The department shall consider and act upon the

 

appeal within 30 days after it is submitted and shall not publish

 

the list until after all appeals have been considered and decided.

 

Sec. 20. (1) For 2011-2012, 2012-2013, the basic foundation

 

allowance is $8,019.00.$8,135.00.

 

(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 2011-2012, for a district that had a foundation

 

allowance for the immediately preceding state fiscal year that was

 

at least equal to the sum of $7,108.00 plus the total dollar amount

 


of all adjustments made from 2006-2007 to the immediately preceding

 

state fiscal year in the lowest foundation allowance among all

 

districts, but less than the basic foundation allowance for the

 

immediately preceding state fiscal year, the district shall receive

 

a foundation allowance in an amount equal to the district's

 

foundation allowance for 2010-2011, minus $470.00. However, the

 

foundation allowance for a district that had less than the basic

 

foundation allowance for the immediately preceding state fiscal

 

year shall not exceed the basic foundation allowance for the

 

current state fiscal year.

 

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

 

district that in the immediately preceding state fiscal year had a

 

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

 

the basic foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive a foundation allowance for

 

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

 

for 2010-2011, minus $470.00.

 

(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) 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.

 

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

 

not include the adjustment described in subsection (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.

 

(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 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. However, this adjustment does not apply to an

 


achievement school.

 

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

 

pupils attending an achievement school and in membership in the

 

education achievement system, other than special education pupils,

 

the allocation calculated under this section is an amount per

 

membership pupil other than special education pupils equal to the

 

foundation allowance of the district in which the achievement

 

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

 

Notwithstanding section 101, for an achievement school that begins

 

operation after the pupil membership count day, the amount per

 

membership pupil calculated under this subsection shall be adjusted

 

by multiplying that amount per membership pupil by the number of

 

hours of pupil instruction provided by the achievement school after

 

it begins operations, as determined by the department, divided by

 

the minimum number of hours of pupil instruction required under

 

section 101(3). The result of this calculation shall not exceed the

 

amount per membership pupil otherwise calculated under this

 

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

 

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

 

district or the achievement authority under section 1280c of the

 

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

 

achievement school within the education achievement system and not

 

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

 

public school is considered to be in membership in the education

 

achievement system and not in membership in the district that

 

operated the school before the transfer.

 

(9) (8) Subject to subsection (4), for a district that is

 


formed or reconfigured after June 1, 2002 by consolidation of 2 or

 

more districts or by annexation, the resulting district's

 

foundation allowance under this section beginning after the

 

effective date of the consolidation or annexation shall be the

 

average of the foundation allowances of each of the original or

 

affected districts, calculated as provided in this section,

 

weighted as to the percentage of pupils in total membership in the

 

resulting district who reside in the geographic area of each of the

 

original or affected districts.

 

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

 

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

 

amount of an increase in the basic foundation allowance shall be

 

rounded to the nearest whole dollar.

 

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

 

allowance for a special education pupil are not calculated under

 

this section but are instead calculated under section 51a.

 

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

 

foundation allowance for the subsequent state fiscal year, each

 

revenue estimating conference conducted under section 367b of the

 

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

 

calculate a pupil membership factor, a revenue adjustment factor,

 

and an index as follows:

 

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

 

the estimated membership in the school year ending in the current

 

state fiscal year, excluding intermediate district membership, by

 

the estimated membership for the school year ending in the

 

subsequent state fiscal year, excluding intermediate district

 


membership. If a consensus membership factor is not determined at

 

the revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

(b) The revenue adjustment factor shall be computed by

 

dividing the sum of the estimated total state school aid fund

 

revenue for the subsequent state fiscal year plus the estimated

 

total state school aid fund revenue for the current state fiscal

 

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

 

proceeds of which are deposited in that fund and excluding money

 

transferred into that fund from the countercyclical budget and

 

economic stabilization fund under the management and budget act,

 

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

 

total school aid fund revenue for the current state fiscal year

 

plus the estimated total state school aid fund revenue for the

 

immediately preceding state fiscal year, adjusted for any change in

 

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

 

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

 

revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

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

 

membership factor by the revenue adjustment factor. However, for

 

2011-2012, the index shall be 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) If the principals at the revenue estimating conference

 

reach a consensus on the index described in subsection (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.

 

(13) 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. 2011-2012. This adjustment

 

shall not be made after 2011-2012.2012-2013.

 

(14) 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) 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

 


Senate Bill No. 961 as amended April 25, 2012

 

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 2011-2012.2012-2013.

 

(16) 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) 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) Payments to districts, university schools, or public

 

school academies, or the education achievement system shall not be

 

made under this section. Rather, the calculations under this

 

section shall be used to determine the amount of state payments

 

under section 22b.

 


(19) 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) 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 2011-2012, 2012-2013, maximum public school

 

academy allocation means $7,110.00.$7,323.00.

 

(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 2011-2012 and 2012-2013, 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 $5,769,000,000.00 for 2011-2012

 

and there is allocated an amount not to exceed $5,707,000,000.00

 

for 2012-2013 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) Subject to conditions set forth in this subsection, from

 

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

 

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

 

districts that meet the eligibility requirements under this

 

subsection, for the reduction in school operating revenues

 

resulting from a settlement or other disposition of appeals

 

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

 

subsection if a settlement agreement is signed by all applicable

 

parties. Payments made under this subsection shall be in accordance

 

with the settlement agreement. All of the following apply to

 

payments under this subsection:

 

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

 

district shall be determined by the department and the department

 

of treasury to meet all of the following:

 

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

 

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

 


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

 

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

 

geographic boundaries for 2009 and 2010 appealed to the Michigan

 

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

 

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

 

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

 

commission the 2011 classification and valuation of the power

 

plant.

 

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

 

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

 

the exemptions of industrial personal property and commercial

 

personal property under section 1211 of the revised school code,

 

MCL 380.1211.

 

(iv) A settlement agreement has been signed to resolve the

 

Michigan tax tribunal appeal described in subparagraph (ii) and a

 

memorandum of understanding that stipulates terms of the settlement

 

has been executed by the parties.

 

(b) A payment made under this subsection shall be in addition

 

to renaissance zone reimbursement amounts paid in the 2009-2010 and

 

2010-2011 state fiscal years under section 26a to districts

 

eligible for payment under this subsection. The 2009-2010 and 2010-

 

2011 state fiscal year payments under section 26a to a district

 

receiving a payment under this subsection shall not be reduced as a

 

result of the reduction to the district's 2009 and 2010 taxable

 

value of real property under the appeals described in subdivision

 

(a)(ii).

 

(7) As used in this section:

 


(a) "1994-95 foundation allowance" means a district's 1994-95

 

foundation allowance calculated and certified by the department of

 

treasury or the superintendent under former section 20a as enacted

 

in 1993 PA 336 and as amended by 1994 PA 283.

 

(b) "Certified mills" means the lesser of 18 mills or the

 

number of mills of school operating taxes levied by the district in

 

1993-94.

 

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

 

for which a particular calculation is made.

 

(d) "Current year hold harmless school operating taxes per

 

pupil" means the per pupil revenue generated by multiplying a

 

district's 1994-95 hold harmless millage by the district's current

 

year taxable value per membership pupil.

 

(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.

 

(j) (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.

 

(k) (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.

 

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

 

following divided by the district's membership:

 


Senate Bill No. 961 as amended April 25, 2012

 

(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 2011-2012 an amount not to exceed

 

$3,052,000,000.00 and there is allocated for 2012-2013 an amount

 

not to exceed <<$3,344,800,000.00>> 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) Subject to subsection (3) and section 296, the allocation

 

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

 


sum of the amounts calculated under sections 20, 51a(2), 51a(3),

 

and 51a(11), minus the sum of the allocations to the district under

 

sections 22a and 51c.

 

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

 

each district shall do all of the following:

 

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

 

1 to 5 a standardized assessment approved by the department of

 

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

 

Michigan literacy progress profile to satisfy this requirement for

 

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

 

require annual assessments at additional grade levels, in order to

 

receive an allocation under this section each district shall comply

 

with that requirement.

 

(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.

 

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

 

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

 

and other business function software that is compatible with that

 

of the intermediate district in which the district is located and

 

with other districts located within that intermediate district.

 

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

 

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

 


state related to commercial or industrial property tax appeals,

 

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

 

impact revenues dedicated to the state school aid fund.

 

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

 

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

 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be

 

made in full before any proration of remaining payments under this

 

section.

 

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

 

constitutional obligations of this state have been fully funded

 

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

 

an entity receiving funds under this article that challenges the

 

legislative determination of the adequacy of this funding or

 

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 

discretionary funds for nonmandated payments under this section the

 

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

 

payments to districts under subsection (2). If funds are escrowed,

 

the escrowed funds are a work project appropriation and the funds

 

are carried forward into the following fiscal year. The purpose of

 

the work project is to provide for any payments that may be awarded

 

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

 

completed upon resolution of the litigation.

 

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

 


jurisdiction makes a final determination that this state is in

 

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

 

1963 regarding state payments to districts, the state budget

 

director shall use work project funds under subsection (7) or

 

allocate from the discretionary funds for nonmandated payments

 

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

 

amount owed to districts before making any payments to districts

 

under subsection (2).

 

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

 

legislative determination of the adequacy of funding for this

 

state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 

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

 

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

 

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

 

and shall exercise jurisdiction over the claim.

 

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

 

local claims review board or a court of competent jurisdiction that

 

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

 

constitution of 1963 exceed the amount allocated for discretionary

 

nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional

 

obligations at its next legislative session.

 

(11) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX medicaid funds is

 

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

 

potential liability under such a lawsuit, the state budget director

 


may place funds allocated under this section in escrow or allocate

 

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

 

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

 

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

 

work project appropriation and the funds are carried forward into

 

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

 

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

 

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

 

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

 

right to terminate future federal title XIX medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

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

 

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

 

to 1396v.

 

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

 

not to exceed $2,025,000.00 is allocated each fiscal year for 2011-

 

2012 and for 2012-2013 for supplemental payments to rural districts

 

under this section.

 

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

 

allocated each fiscal year for 2011-2012 and for 2012-2013 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 each fiscal year for 2011-2012

 

and for 2012-2013 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. 22g. (1) From the funds appropriated in section 11, there

 

is allocated for 2012-2013 only an amount not to exceed

 

$10,000,000.00 for competitive assistance grants to districts and

 

intermediate districts. Money allocated in this section represents

 

a portion of the year-end state school aid fund balance for 2011-

 

2012.

 

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

 

reimbursement of transition costs associated with the consolidation

 

of operations or services between 2 or more districts, the

 

consolidation of operations or services between 1 or more districts

 

and 1 or more municipalities, or the consolidation of districts or

 

intermediate districts. Grant funding shall be available for

 

consolidations that occur on or after June 1, 2012. The department

 

shall develop an application process and method of grant

 

distribution.

 

Sec. 22i. (1) From the funds appropriated under section 11,

 

there is appropriated for 2012-2013 an amount not to exceed

 

$40,000,000.00 for the purpose of pupil performance grants under

 

this section. In order to be eligible to receive a grant under this

 

section, a district shall comply with all of the following:

 


(a) A district offering any of grades 2 to 11 shall test each

 

pupil in each grade in both reading and math during a fall test

 

window established annually by the department, and shall administer

 

a supplemental test in reading and math during a spring test window

 

established annually by the department.

 

(b) The tests administered under subdivision (a) shall be

 

administered using a computer adaptive testing process that

 

provides immediate feedback to the pupil and teacher regarding the

 

pupil's academic level and progress.

 

(2) In order to be eligible for pupil performance grant

 

funding in math, a district must demonstrate, on a districtwide

 

basis, that pupils tested in grades 2 to 11 under subsection (1)(a)

 

and (b) demonstrate gains that exceed normative growth within the

 

standard error of measure between the 2 test dates under subsection

 

(1)(a). If a district asserts that it demonstrates this growth, the

 

district shall submit to the department, not later than the third

 

Friday in May, auditable data to that effect and shall indicate the

 

number of pupils tested.

 

(3) In order to be eligible for pupil performance grant

 

funding in reading, a district must demonstrate, on a districtwide

 

basis, that pupils tested in grades 2 to 11 under subsection (1)(a)

 

and (b) demonstrate gains that exceed normative growth within the

 

standard error of measure between the 2 test dates under subsection

 

(1)(a). If a district asserts that it demonstrates this growth, the

 

district shall submit to the department, not later than the third

 

Friday of May, auditable data to that effect and shall indicate the

 

number of pupils tested.

 


(4) The department shall compile, review, and verify the

 

district test results submitted by districts under subsection (2)

 

and subsection (3). The department shall distribute funding

 

allocated under subsection (1) to all eligible districts on an

 

equal per-pupil basis, using the number of pupils tested in the

 

eligible districts as the basis for distributing equal per-pupil

 

payments.

 

(5) As used in this section, "gains that exceed normative

 

growth within the standard error of measure" means, for all pupils

 

tested in grades 2 to 11 under subsection (1)(a) and (b), that the

 

district's percentage of pupils exceeding normative growth is at

 

least 51%.

 

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

 

allocated each fiscal year for 2011-2012 and for 2012-2013 an

 

amount not to exceed $8,000,000.00 for payments to the educating

 

district or intermediate district for educating pupils assigned by

 

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

 

attend a juvenile detention facility or child caring institution

 

licensed by the department of human services and approved by the

 

department to provide an on-grounds education program. The amount

 

of the payment under this section to a district or intermediate

 

district shall be calculated as prescribed under subsection (2).

 

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

 

allocated by paying to the educating district or intermediate

 

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

 

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

 

pupil allocation for the district or intermediate district. For the

 


purposes of this subsection:

 

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

 

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

 

human services to reside in or to attend a juvenile detention

 

facility or child caring institution licensed by the department of

 

human services or the department of licensing and regulatory

 

affairs and approved by the department to provide an on-grounds

 

education program. Added cost shall be computed by deducting all

 

other revenue received under this act for pupils described in this

 

section from total costs, as approved by the department, in whole

 

or in part, for educating those pupils in the on-grounds education

 

program or in a program approved by the department that is located

 

on property adjacent to a juvenile detention facility or child

 

caring institution. Costs reimbursed by federal funds are not

 

included.

 

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

 

district or intermediate district shall be determined by dividing

 

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

 

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

 

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

 

for the district or intermediate district.

 

(3) A district or intermediate district educating pupils

 

described in this section at a residential child caring institution

 

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

 

department-approved on-grounds educational program for those pupils

 

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

 

child caring institution was licensed as a child caring institution

 


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

 

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

 

operated by a district or intermediate district.

 

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

 

not be funded under this section.

 

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

 

allocated an amount not to exceed $2,114,800.00 for 2011-2012 and

 

there is allocated an amount not to exceed $2,135,800.00 for 2012-

 

2013 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 $765,600.00 for 2011-2012 and an

 

amount not to exceed $1,500,000.00 for 2012-2013 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. 25. (1) If a pupil is enrolled in an alternative

 

education program operated by an intermediate district or district

 

for the purpose of educating pupils who have been expelled from

 

school or referred from the court, and if the pupil is counted in

 

membership in another intermediate district or district, the

 

intermediate district or district operating the alternative

 

education program shall report the enrollment information to the

 

department and to the district in which the pupil is counted in

 

membership, and the intermediate district or district in which the

 

pupil is counted in membership shall pay to the intermediate

 

district or district operating the alternative education program an

 

amount equal to the amount of the foundation allowance or per pupil

 


payment as calculated under section 20 for the intermediate

 

district or district in which the pupil is counted in membership,

 

prorated according to the number of days of the school year ending

 

in the fiscal year the pupil is educated in the alternative

 

education program compared to the number of days of the school year

 

ending in the fiscal year the pupil was actually enrolled in the

 

intermediate district or district in which the pupil is counted in

 

membership. The foundation allowance or per pupil payment shall be

 

adjusted by the pupil's full-time equated status as affected by the

 

membership definition under section 6(4). If an intermediate

 

district or district does not make the payment required under this

 

section within 30 days after receipt of the report, the department

 

shall calculate the amount owed, shall deduct that amount from the

 

remaining state school aid payments to the intermediate district or

 

district for that fiscal year under this act, and shall pay that

 

amount to the intermediate district or district operating the

 

alternative education program. The intermediate district or

 

district in which the pupil is counted in membership and the

 

intermediate district or district operating the alternative

 

education program shall provide to the department all information

 

the department requires to enforce this section.

 

(2) If a pupil is enrolled in a strict discipline academy for

 

pupils who have been expelled or suspended from school or otherwise

 

placed in a strict discipline academy as described in section 1311g

 

of the revised school code, MCL 380.1311g, and if the pupil is

 

counted in membership in another district or intermediate district,

 

the strict discipline academy shall report the enrollment

 


information to the department and to the district or intermediate

 

district in which the pupil is counted in membership. Upon receipt

 

of enrollment information under this subsection indicating that a

 

pupil has enrolled in a strict discipline academy as described in

 

this subsection, the department shall do both of the following:

 

(a) Adjust the membership calculation for the district or

 

intermediate district in which the pupil was counted in membership

 

so that the district's or intermediate district's membership is

 

prorated to allow the district or intermediate district to receive

 

for each school day in which the pupil was enrolled in the district

 

an amount equal to 1/180 of the foundation allowance or per pupil

 

payment as calculated under section 20 for the district or

 

intermediate district. The foundation allowance or per pupil

 

payment shall be adjusted by the pupil's full-time equated status

 

as affected by the membership definition under section 6(4).

 

(b) Include in the calculation of state school aid for the

 

strict discipline academy for each school day in which the pupil is

 

enrolled in the strict discipline academy, not to exceed a number

 

of school days equal to the difference between 180 and the number

 

of school days in which the pupil was reported under this section

 

as previously enrolled in 1 or more other districts or intermediate

 

districts, an amount equal to 1/180 of the per pupil payment as

 

calculated under section 20 for the strict discipline academy. The

 

per pupil payment shall be adjusted by the pupil's full-time

 

equated status as affected by the membership definition under

 

section 6(4).

 

(3) The changes in calculation of state school aid required

 


under subsection (2) shall take effect as of the date that the

 

pupil enrolls in the strict discipline academy, and the department

 

shall base all subsequent payments under this act for the fiscal

 

year to the affected districts or intermediate districts and for

 

the strict discipline academy, as applicable, on this recalculation

 

of state school aid.

 

(4) If a pupil enrolls in a strict discipline academy as

 

described in subsection (2), if adjustments are made in

 

calculations pursuant to subsection (2) due to that enrollment, and

 

if the pupil subsequently ceases to be enrolled in the strict

 

discipline academy, the strict discipline academy shall notify the

 

department of the last date of the pupil's enrollment in the strict

 

discipline academy and the number of days the pupil was enrolled in

 

the strict discipline academy.

 

(5) If a pupil enrolls in a strict discipline academy as

 

described in subsection (2), the district or intermediate district

 

in which the pupil is counted in membership and the strict

 

discipline academy shall provide to the department all information

 

the department requires to comply with this section.

 

(6) The changes in the requirements under this section that

 

are contained in subsections (2) to (5) apply beginning with

 

payments made for the 2011-2012 fiscal year.

 

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

 

section 11, there is allocated an amount not to exceed

 

$22,932,000.00 for 2010-2011 and an amount not to exceed

 

$26,300,000.00 each fiscal year for 2011-2012 and for 2012-2013 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 2011 or 2012, as applicable. 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 each fiscal year for 2011-2012 and for 2012-2013 an

 

amount not to exceed $1,838,000.00 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.

 

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

 

appropriated in section 11, there is allocated each fiscal year for

 

2011-2012 and for 2012-2013 an amount not to exceed $317,695,500.00

 

for payments to eligible districts, and eligible public school

 

academies, and the education achievement system under this section.

 

Subject to subsection (14), the amount of the additional allowance

 

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

 

shall be based on the number of actual pupils in membership in the

 


district or public school academy or the education achievement

 

system who met the income eligibility criteria for free breakfast,

 

lunch, or milk in the immediately preceding state fiscal year, as

 

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

 

42 USC 1751 to 1769i, and reported to the department by October 31

 

not later than the fifth Wednesday after the pupil membership count

 

day of the immediately preceding fiscal year and adjusted not later

 

than December 31 of the immediately preceding fiscal year in the

 

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

 

school academy that began operations as a public school academy, or

 

for an achievement school that began operations as an achievement

 

school, after the pupil membership count day of the immediately

 

preceding school year, the basis for the additional allowance under

 

this section shall be the number of actual pupils in membership in

 

the public school academy or the education achievement system who

 

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

 

milk in the current state fiscal year, as determined under the

 

Richard B. Russell national school lunch act and reported to the

 

department not later than the fifth Wednesday after the pupil

 

membership count day.

 

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

 

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

 

public school academy that has not been previously determined to be

 

eligible or the education achievement system shall apply to the

 

department, in a form and manner prescribed by the department, and

 

a district or public school academy or the education achievement

 

system must meet all of the following:

 


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

 

the education achievement system's combined state and local revenue

 

per membership pupil in the current state fiscal year, as

 

calculated under section 20, is less than or equal to the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

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

 

achievement system agrees to use the funding only for purposes

 

allowed under this section and to comply with the program and

 

accountability requirements under this section.

 

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

 

eligible district or eligible public school academy or the

 

education achievement system shall receive under this section for

 

each membership pupil in the district or public school academy or

 

the education achievement system who met the income eligibility

 

criteria for free breakfast, lunch, or milk, as determined under

 

the Richard B. Russell national school lunch act and as reported to

 

the department by October 31 not later than the fifth Wednesday

 

after the pupil membership count day of the immediately preceding

 

fiscal year and adjusted not later than December 31 of the

 

immediately preceding fiscal year, an amount per pupil equal to

 

11.5% of the sum of the district's foundation allowance or the

 

public school academy's or the education achievement system's per

 

pupil amount calculated under section 20, not to exceed the basic

 

foundation allowance under section 20 for the current state fiscal

 

year, or of the public school academy's or the education

 

achievement system's per membership pupil amount calculated under

 


section 20 for the current state fiscal year. A public school

 

academy that began operations as a public school academy, or an

 

achievement school that began operations as an achievement school,

 

after the pupil membership count day of the immediately preceding

 

school year shall receive under this section for each membership

 

pupil in the public school academy or in the education achievement

 

system who met the income eligibility criteria for free breakfast,

 

lunch, or milk, as determined under the Richard B. Russell national

 

school lunch act and as reported to the department by October 31

 

not later than the fifth Wednesday after the pupil membership count

 

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

 

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

 

of the public school academy's or the education achievement

 

system's per membership pupil amount calculated under section 20

 

for the current state fiscal year.

 

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

 

or public school academy, or the education achievement system,

 

receiving funding under this section shall use that money only to

 

provide instructional programs and direct noninstructional

 

services, including, but not limited to, medical or counseling

 

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

 

the purposes of subsection (5), (6), or (7). In addition, a

 

district that is a school district of the first class or a district

 

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

 

membership met the income eligibility criteria for free breakfast,

 

lunch, or milk in the immediately preceding state fiscal year, as

 

determined and reported as described in subsection (1), or the

 


education achievement system if it meets this requirement, may use

 

not more than 20% of the funds it receives under this section for

 

school security. A district, or the public school academy, or the

 

education achievement system shall not use any of that money for

 

administrative costs or to supplant another program or other funds,

 

except for funds allocated to the district or public school academy

 

or the education achievement system under this section in the

 

immediately preceding year and already being used by the district

 

or public school academy or the education achievement system for

 

at-risk pupils. The instruction or direct noninstructional services

 

provided under this section may be conducted before or after

 

regular school hours or by adding extra school days to the school

 

year and may include, but are not limited to, tutorial services,

 

early childhood programs to serve children age 0 to 5, and reading

 

programs as described in former section 32f as in effect for 2001-

 

2002. A tutorial method may be conducted with paraprofessionals

 

working under the supervision of a certificated teacher. The ratio

 

of pupils to paraprofessionals shall be between 10:1 and 15:1. Only

 

1 certificated teacher is required to supervise instruction using a

 

tutorial method. As used in this subsection, "to supplant another

 

program" means to take the place of a previously existing

 

instructional program or direct noninstructional services funded

 

from a funding source other than funding under this section.

 

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

 

district or public school academy that receives funds under this

 

section and that operates a school breakfast program under section

 

1272a of the revised school code, MCL 380.1272a, or the education

 


achievement system if it operates a school breakfast program, shall

 

use from the funds received under this section an amount, not to

 

exceed $10.00 per pupil for whom the district or public school

 

academy or the education achievement system receives funds under

 

this section, necessary to pay for costs associated with the

 

operation of the school breakfast program.

 

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

 

allocated each fiscal year for 2011-2012 and for 2012-2013 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 each fiscal year for 2011-2012 and for 2012-2013 an

 

amount not to exceed $5,150,000.00 for the state portion of the

 

hearing and vision screenings as described in section 9301 of the

 

public health code, 1978 PA 368, MCL 333.9301. A local public

 

health department shall pay at least 50% of the total cost of the

 

screenings. The frequency of the screenings shall be as required

 

under R 325.13091 to R 325.13096 and R 325.3271 to R 325.3276 of

 

the Michigan administrative code. Funds shall be awarded in a form

 

and manner approved jointly by the department and the department of

 

community health. Notwithstanding section 17b, payments to eligible

 

entities under this subsection shall be paid on a schedule

 

determined by the department.

 

(8) Each district or public school academy receiving funds

 

under this section and the education achievement system shall

 

submit to the department by July 15 of each fiscal year a report,

 

not to exceed 10 pages, on the usage by the district or public

 

school academy or the education achievement system of funds under

 

this section, which report shall include at least a brief

 

description of each program conducted by the district or public

 

school academy or the education achievement system using funds

 

under this section, the amount of funds under this section

 

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

 

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

 


Senate Bill No. 961 as amended April 25, 2012

 

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

 

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

 

academy or the education achievement system does not comply with

 

this subsection, the department shall withhold an amount equal to

 

the August payment due under this section until the district or

 

public school academy or the education achievement system complies

 

with this subsection. If the district or public school academy or

 

the education achievement system does not comply with this

 

subsection by the end of the state fiscal year, the withheld funds

 

shall be forfeited to the school aid fund.

 

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

 

or public school academy or the education achievement system shall

 

allow access for the department or the department's designee to

 

audit all records related to the program for which it receives

 

those funds. The district or public school academy or the education

 

achievement system shall reimburse the state for all disallowances

 

found in the audit.

 

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

 

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-6K-12>>,

or

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

 

percentage of pupils described in subsection (1) exceeds the

 

district's aggregate percentage of those pupils. Subject to

 

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

 

waiver from the department, the 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-6K-12>>, or any combination of those grades,

in

 


school buildings in which the percentage of pupils described in

 

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

 

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

 

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

 

district must apply to the department and demonstrate to the

 

satisfaction of the department that the class size reductions would

 

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

 

(11) A district or public school academy or the education

 

achievement system may use funds received under this section for

 

adult high school completion, general educational development

 

(G.E.D.) test preparation, adult English as a second language, or

 

adult basic education programs described in section 107.

 

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

 

district or public school academy receiving funds under this

 

section or the education achievement system that have been

 

determined by the department to meet the adequate yearly progress

 

standards of the no child left behind act of 2001, Public Law 107-

 

110, in both mathematics and English language arts at all

 

applicable grade levels for all applicable subgroups, the district

 

or public school academy or the education achievement system may

 

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 use not more than 20% of the funds it

 

receives under this section for specific alternative purposes

 

identified by the district or public school academy or the

 


education achievement system that are designed to benefit at-risk

 

pupils in the school, but that may be different from the purposes

 

otherwise allowable under this section. 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.If a district or

 

public school academy or the education achievement system uses

 

funds for alternative purposes allowed under the flexibility

 

provisions under this subsection, the district or public school

 

academy or the education achievement system shall maintain

 

documentation of the amounts used for those alternative purposes

 

and shall make that information available to the department upon

 

request.

 

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

 

under this section or the education achievement system may use

 

funds it receives under this section to implement and operate an

 

early intervening program for pupils in grades K to 3 that meets

 

either or both of the following:

 

(a) Monitors individual pupil learning and provides specific

 

support or learning strategies to pupils as early as possible in

 

order to reduce the need for special education placement. The

 

program shall include literacy and numeracy supports, sensory motor

 


skill development, behavior supports, instructional consultation

 

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

 

Specific support or learning strategies may include support in or

 

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

 

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

 

development. These would be provided based on an understanding of

 

the individual child's learning needs.

 

(b) Provides early intervening strategies using school-wide

 

systems of academic and behavioral supports and is scientifically

 

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

 

least pupil performance indicators based upon response to

 

intervention, instructional consultation for teachers, and ongoing

 

progress monitoring. A school-wide system of academic and

 

behavioral support should be based on a support team available to

 

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

 

principal, special education staff, reading teachers, and other

 

appropriate personnel who would be available to systematically

 

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

 

to match instruction to the needs of the individual child.

 

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

 

section 11, the department shall prorate payments under this

 

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

 

section by a dollar amount calculated by determining the amount by

 

which the amount necessary to fully fund the requirements of this

 

section exceeds the maximum amount allocated under this section and

 

then dividing that amount by the total statewide number of pupils

 

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

 


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

 

subsection (1).

 

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

 

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

 

before the consolidation for an additional allowance under this

 

section, the amount of the additional allowance under this section

 

for the consolidated district shall be based on the number of

 

pupils described in subsection (1) enrolled in the consolidated

 

district who reside in the territory of an original district that

 

was eligible before the consolidation for an additional allowance

 

under this section.

 

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

 

for whom the district has documentation that the pupil meets at

 

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

 

neglect; is below grade level in English language and communication

 

skills 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, or social studies for which results for the pupil

 

have been received. For pupils for whom the results of the Michigan

 

merit examination have been received, at-risk pupil also includes a

 


pupil who does not meet the other criteria under this subsection

 

but who did not achieve proficiency on the reading component of the

 

most recent Michigan merit examination for which results for the

 

pupil have been received, did not achieve proficiency on the

 

mathematics component of the most recent Michigan merit examination

 

for which results for the pupil have been received, or did not

 

achieve basic competency on the science component of the most

 

recent Michigan merit examination for which results for the pupil

 

have been received. For pupils in grades K-3, at-risk pupil also

 

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

 

academic curricular objectives in English language arts or

 

mathematics.

 

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

 

under this section or the education achievement system may use

 

funds received under this section to provide an anti-bullying or

 

crisis intervention program.

 

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

 

allocated an amount not to exceed $21,627,100.00 for 2010-2011 and

 

an amount not to exceed $22,495,100.00 each fiscal year for 2011-

 

2012 and for 2012-2013 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 each fiscal year for 2011-2012 and for 2012-2013 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 $3,800,000.00 for 2010-2011 and

 

an amount not to exceed $9,625,000.00 each fiscal year for 2011-

 

2012 and for 2012-2013 for the purpose of making payments to

 

districts to reimburse for the cost of providing breakfast.

 

(2) The funds allocated under this section for school

 

breakfast programs shall be made available to all eligible

 

applicant districts that meet all of the following criteria:

 

(a) The district participates in the federal school breakfast

 

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

 

and 245.

 

(b) Each breakfast eligible for payment meets the federal

 

standards described in subdivision (a).

 

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

 

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

 

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

 

and approved by the department, less federal reimbursement,

 

participant payments, and other state reimbursement. The statewide

 

average cost shall be determined by the department using costs as

 

reported in a manner approved by the department for the preceding

 

school year.

 

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

 

may be made pursuant to an agreement with the department.

 

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

 

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

 

or produced by Michigan businesses if it is competitively priced

 

and of comparable quality.

 

Sec. 32d. (1) For 2011-2012, From the funds appropriated in

 


section 11, there is allocated to eligible intermediate districts

 

and consortia of intermediate districts for great start readiness

 

programs an amount not to exceed $104,275,000.00 from the state

 

school aid fund money appropriated in section 11. $105,400,000.00

 

for 2012-2013. Funds allocated under this section shall be used to

 

provide part-day, or full-day school-day, or GSRP/head start

 

blended comprehensive free compensatory classroom programs designed

 

to do 1 or both of the following:

 

(a) Improve improve the readiness and subsequent achievement

 

of educationally disadvantaged children as defined by the

 

department who will be at least 4, but less than 5 years of age, as

 

of December 1 of the school year in which the programs are offered,

 

and who meet the participant eligibility and prioritization

 

guidelines as defined by the state board.

 

(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) 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, 2012-2013, the

 

fiduciary intermediate districts and consortia of intermediate

 


districts shall allocate the funding under this section as follows:

 

(a) An amount not to exceed $95,400,000.00 allocated to

 

intermediate districts and consortia of intermediate districts as

 

directed by the department based on the formula in section 39. In

 

order to be eligible to receive funds allocated under this

 

subdivision 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 2011-2012 2012-

 

2013 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 school-day, or GSRP/head start blended programs that

 

contain all of the following program components, as determined by

 

the department:

 

(a) Participation in a collaborative recruitment and

 


enrollment process. At a minimum, the process shall include all

 

other funded preschool programs that may serve children in the same

 

geographic area, to assure that each child is enrolled in the

 

program most appropriate to his or her needs and to maximize the

 

use of federal, state, and local funds.

 

(b) An age-appropriate educational curriculum that is in

 

compliance with the early childhood standards of quality for

 

prekindergarten children adopted by the state board.

 

(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 annually

 

shall review the program components listed in this subsection and

 

make recommendations for changes to the great start readiness

 

program for which it is an advisory committee.

 

(i) The ongoing articulation of the kindergarten and first

 


grade programs offered by the program provider.

 

(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 uses qualified

 

personnel for this program, as follows:

 

(i) Teachers possessing proper training. For programs managed

 

directly by an a district or intermediate district, a valid

 

teaching certificate and an early childhood (ZA or ZS) endorsement

 

are required. This provision does not apply to an a district,

 

intermediate district, or competitive program that subcontracts

 

with an eligible child development program. In that situation, a

 

teacher must have a valid Michigan teaching certificate with an

 

early childhood (ZA or ZS) endorsement, a valid Michigan elementary

 

teaching certificate with a child development associate credential,

 

or a bachelor's degree in child development with specialization in

 

preschool teaching. However, if an intermediate district applicant

 

demonstrates to the department that it is unable to fully comply

 

with this subparagraph after making reasonable efforts to comply,

 

teachers who have significant but incomplete training in early

 

childhood education or child development may be employed by the

 


intermediate district used if the intermediate district applicant

 

provides to the department, and the department approves, a plan for

 

each teacher to come into compliance with the standards in this

 

subparagraph. A teacher's compliance plan must be completed within

 

2 years of the date of employment. Progress toward completion of

 

the compliance plan shall consist of at least 2 courses per

 

calendar year.

 

(ii) Paraprofessionals possessing proper training in early

 

childhood development, including an associate's degree in early

 

childhood education or child development or the equivalent, or a

 

child development associate (CDA) credential. However, if an

 

intermediate district applicant demonstrates to the department that

 

it is unable to fully comply with this subparagraph after making

 

reasonable efforts to comply, the intermediate district applicant

 

may employ use paraprofessionals who have completed at least 1

 

course that earns college credit in early childhood education or

 

child development if the intermediate district applicant provides

 

to the department, and the department approves, a plan for each

 

paraprofessional to come into compliance with the standards in this

 

subparagraph. A paraprofessional's compliance plan must be

 

completed within 2 years of the date of employment. Progress toward

 

completion of the compliance plan shall consist of at least 2

 

courses or 60 clock hours of training per calendar year.

 

(d) Include a program budget that contains only those costs

 

that are not reimbursed or reimbursable by federal funding, that

 

are clearly and directly attributable to the great start readiness

 

program, and that would not be incurred if the program were not

 


being offered. 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 school-day

 

program funded under this section, each child enrolled in the

 

school-day program shall be counted as 2 children served by the

 

program for purposes of determining the number of children to be

 

served and for determining the amount of the grant award. A grant

 

award shall not be increased solely on the basis of providing a

 

school-day program.

 

(7) 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.

 

An intermediate district, 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 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:

 

(a) "GSRP/head start blended program" means a part-day program

 

funded under this section and a head start program, which are

 

combined for a school-day program.

 

(b) (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 school-day program.

 

(c) (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 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 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 The department shall develop a plan for a multiyear

 

phased-in approach to transfer funding for great start readiness

 

programs under this section into an early childhood block grant

 

program, along with funding for great start collaboratives under

 

section 32b and funding for great parents, great start programs

 

under section 32j. The early childhood block grant program will

 

allocate funds to intermediate districts and consortia of

 

intermediate districts to act as fiduciaries and provide

 

administration of regional early childhood programs in conjunction

 

with their regional great start collaborative to improve program

 

quality, evaluation, and efficiency for early childhood programs.

 

The department shall work with intermediate districts, districts,

 

great start collaboratives, and the early childhood investment

 

corporation to establish a revised funding formula, application

 

process, program criteria, and data reporting requirements. 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. 32p. (1) From the school aid fund appropriation in

 


section 11, there is allocated an amount not to exceed

 

$19,775,000.00 for 2012-2013 for the purpose of providing early

 

childhood funding to intermediate school districts in block grants.

 

The funding provided to each intermediate district under this

 

section shall be equal to the sum of all funding allocated under

 

former sections 32b, 32j, and 32l, as those sections were in effect

 

for 2011-2012 plus section 32d(2)(b) as that subdivision was in

 

effect for 2011-2012. In order to receive funding under this

 

section, each intermediate district shall provide an application to

 

the office of great start not later than August 15, 2012,

 

indicating the activities planned to be provided and children

 

served under the block grant.

 

(2) Each intermediate district or consortium of intermediate

 

districts that receives funding under this section shall convene a

 

local great start collaborative to address the availability of the

 

following 6 components of a great start system in its communities:

 

physical health, social-emotional health, family supports, basic

 

needs, economic stability and safety, and parenting education and

 

early education and care. The goal of a local great start

 

collaborative is to ensure that every child in the community is

 

ready for kindergarten. Each local great start collaborative shall

 

ensure the coordination and expansion of infrastructure or

 

programming to support high-quality early childhood and childcare

 

programs.

 

(3) Not later than December 1, 2013, each intermediate

 

district shall provide a report to the department, the house and

 

senate appropriations subcommittees on school aid, and the house

 


and senate fiscal agencies detailing the activities actually

 

provided during 2012-2013 and the children actually served. The

 

block grants allocated under this section implement legislative

 

intent language for this purpose enacted in 2011 PA 62.

 

(4) An intermediate district or consortium of intermediate

 

districts that receives funding under this section may carry over

 

any unexpended funds received under this section for a fiscal year

 

into the next fiscal year and may expend those unused funds in the

 

next fiscal year. A recipient of a grant shall return any

 

unexpended grant funds to the department in the manner prescribed

 

by the department not later than September 30 of the next fiscal

 

year after the fiscal year in which the funds are received.

 

Sec. 39. (1) A district An eligible applicant 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

 

using aggregated data from the applicant's entire service area and

 

a community collaboration plan , which that is endorsed by the

 

local great start collaborative and is part of the community's

 

great start strategic plan that includes, but is not limited to,

 

great start readiness program and head start providers, and shall

 

identify all of the following:

 

(a) The estimated total number of children in the community

 

who meet the criteria of section 32d and how that calculation was

 

made.

 


(b) The estimated number of children in the community who meet

 

the criteria of section 32d and are being served by other early

 

childhood development programs operating in the community, and how

 

that calculation was made.

 

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

 

to serve who meet the criteria of section 32d including a

 

verification of physical facility and staff resources capacity.

 

(d) The estimated number of children who meet the criteria of

 

section 32d who will remain unserved after the district applicant

 

and community early childhood programs have met their funded

 

enrollments. The school district applicant shall maintain a waiting

 

list of identified unserved eligible children who would be served

 

when openings are available.

 

(2) A district An applicant 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 applicant complies

 

with the program components established by the department pursuant

 

to section 32d.

 

(3) The number of prekindergarten children construed to be in

 

need of special readiness assistance under section 32d shall be

 

calculated for each district applicant in the following manner: 1/2

 

of the percentage of the district's applicant's pupils in grades 1

 

to 5 in all districts served by the applicant who are eligible for

 

free lunch, as determined using the district's pupil membership

 

count as of the pupil membership count day in the school year prior

 


to the fiscal year for which the calculation is made, under the

 

Richard B. Russell national school lunch act, 42 USC 1751 to 1769i,

 

shall be multiplied by the average kindergarten enrollment of the

 

district districts served by the applicant on the pupil membership

 

count day of the 2 immediately preceding fiscal years.

 

(4) The initial allocation for each fiscal year to each

 

eligible district applicant under section 32d shall be determined

 

by multiplying the number of children determined by the formula

 

under subsection (3) or the number of children the district

 

applicant indicates it will be able to serve under subsection

 

(1)(c), whichever is less, by $3,400.00 and shall be distributed

 

among districts applicant in decreasing order of concentration of

 

eligible children as determined by the formula under subsection

 

(3). If the number of children a district an applicant indicates it

 

will be able to serve under subsection (1)(c) includes children

 

able to be served in a school-day program, then the number able to

 

be served in a school-day program shall be doubled for the purposes

 

of making this calculation of the lesser of the number of children

 

determined by the formula under subsection (3) and the number of

 

children the district applicant indicates it will be able to serve

 

under subsection (1)(c) and determining the amount of the initial

 

allocation to the district applicant under section 32d. A district

 

may contract with a head start agency to serve children enrolled in

 

head start with a school-day program by blending head start funds

 

with a part-day great start readiness program allocation. All head

 

start and great start readiness program policies and regulations

 

apply to the blended program.

 


(5) If funds allocated for eligible districts applicants in

 

section 32d remain after the initial allocation under subsection

 

(4), the allocation under this subsection shall be distributed to

 

each eligible district applicant under section 32d in decreasing

 

order of concentration of eligible children as determined by the

 

formula under subsection (3). The allocation shall be determined by

 

multiplying the number of children each eligible district within

 

the applicant's service area served in the immediately preceding

 

fiscal year or the number of children the district applicant

 

indicates it will be able to serve under subsection (1)(c),

 

whichever is less, minus the number of children for which the

 

district applicant received funding in subsection (4) by $3,400.00.

 

(6) If funds allocated for eligible districts applicants in

 

section 32d remain after the allocations under subsections (4) and

 

(5), remaining funds shall be distributed to each eligible district

 

applicant under section 32d in decreasing order of concentration of

 

eligible children as determined by the formula under subsection

 

(3). If the number of children the district applicant indicates it

 

will be able to serve under subsection (1)(c) exceeds the number of

 

children for which funds have been received under subsections (4)

 

and (5), the allocation under this subsection shall be determined

 

by multiplying the number of children the district applicant

 

indicates it will be able to serve under subsection (1)(c) less the

 

number of children for which funds have been received under

 

subsections (4) and (5) by $3,400.00 until the funds allocated for

 

eligible districts applicants 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.

 

(7) (8) A district An applicant that offers supplementary

 

child care funded by funds other than those received under this

 

section 32d and therefore offers full-day programs as part of its

 

early childhood development program shall receive priority in the

 

allocation of funds under section 32d over other eligible

 

districts. applicants. As used in this subsection, "full-day

 

program" means a program that provides supplementary child care

 

that totals at least 10 hours of programming per day.

 

(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.

 

(8) (10) If, taking into account the total amount to be

 

allocated to the district applicant as calculated under this

 

section, a district an applicant determines that it is able to

 

include additional eligible children in the great start readiness

 

program without additional funds under section 32d, the district

 

applicant 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 2011-2012 2012-2013 to districts,

 

intermediate districts, and other eligible entities all available

 

federal funding, estimated at $761,973,600.00, $812,328,500.00, for

 

the federal programs under the no child left behind act of 2001,

 

Public Law 107-110. These funds are allocated as follows:

 

(a) An amount estimated at $10,808,600.00 to provide students

 

with drug- and violence-prevention programs and to implement

 

strategies to improve school safety, funded from DED-OESE, drug-

 

free schools and communities funds.

 

(b) An amount estimated at $7,461,800.00 $250,000.00 for the

 

purpose of improving teaching and learning through a more effective

 

use of technology, funded from DED-OESE, educational technology

 

state grant funds.

 

(c) An amount estimated at $109,411,900.00 $111,111,900.00 for

 

the purpose of preparing, training, and recruiting high-quality

 

teachers and class size reduction, funded from DED-OESE, improving

 

teacher quality funds.

 

(d) An amount estimated at $10,322,300.00 $12,200,000.00 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 $10,286,500.00 for

 

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

 

charter school funds.

 

(f) An amount estimated at $1,760,000.00 $2,393,500.00 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.

 

(g) (h) An amount estimated at $517,479,800.00 $591,500,000.00

 

to provide supplemental programs to enable educationally

 

disadvantaged children to meet challenging academic standards,

 

funded from DED-OESE, title I, disadvantaged children funds.

 

(h) (i) An amount estimated at $2,152,700.00 $250,000.00 for

 

the purpose of providing unified family literacy programs, funded

 

from DED-OESE, title I, even start funds.

 

(i) (j) An amount estimated at $8,807,200.00 $8,878,000.00 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.

 

(j) (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.

 

(k) (n) An amount estimated at $17,586,100.00 $24,600,000.00

 

to help support local school improvement efforts, funded from DED-

 

OESE, title I, local school improvement grants.

 

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

 

is allocated for 2011-2012 2012-2013 to districts, intermediate

 

districts, and other eligible entities all available federal

 

funding, estimated at $32,359,700.00, $33,514,100.00 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 $2,600,000.00 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) (1)(g), (h),

 

and (k) 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 article, the department shall allow an

 

intermediate district to submit a consortium application on behalf

 

of 2 or more districts with the agreement of those districts as

 

appropriate according to federal rules and guidelines.

 

(6) As used in this section:

 

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

 

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

 

secondary education.

 

(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.

 

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

 

allocated for 2011-2012 an amount not to exceed $954,769,100.00 and

 

there is allocated an amount not to exceed $990,269,100.00 for

 

2012-2013 from state sources and all available federal funding

 

under sections 611 to 619 of part B of the individuals with

 

disabilities education act, 20 USC 1411 to 1419, estimated at

 

$363,400,000.00 for 2011-2012 and estimated at $365,000,000.00 for

 

2012-2013, plus any carryover federal funds from previous year

 

appropriations. The allocations under this subsection are for the

 

purpose of reimbursing districts and intermediate districts for

 

special education programs, services, and special education

 

personnel as prescribed in article 3 of the revised school code,

 


MCL 380.1701 to 380.1766; net tuition payments made by intermediate

 

districts to the Michigan schools for the deaf and blind; and

 

special education programs and services for pupils who are eligible

 

for special education programs and services according to statute or

 

rule. For meeting the costs of special education programs and

 

services not reimbursed under this article, a district or

 

intermediate district may use money in general funds or special

 

education funds, not otherwise restricted, or contributions from

 

districts to intermediate districts, tuition payments, gifts and

 

contributions from individuals or other entities, or federal funds

 

that may be available for this purpose, as determined by the

 

intermediate district plan prepared pursuant to article 3 of the

 

revised school code, MCL 380.1701 to 380.1766. All federal funds

 

allocated under this section in excess of those allocated under

 

this section for 2002-2003 may be distributed in accordance with

 

the flexible funding provisions of the individuals with

 

disabilities education act, Public Law 108-446, including, but not

 

limited to, 34 CFR 300.206 and 300.208. Notwithstanding section

 

17b, payments of federal funds to districts, intermediate

 

districts, and other eligible entities under this section shall be

 

paid on a schedule determined by the department.

 

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

 

allocated the amount necessary, estimated at $247,000,000.00 for

 

2011-2012 and estimated at $257,300,000.00 for 2012-2013, for

 

payments toward reimbursing districts and intermediate districts

 

for 28.6138% of total approved costs of special education,

 

excluding costs reimbursed under section 53a, and 70.4165% of total

 


approved costs of special education transportation. Allocations

 

under this subsection shall be made as follows:

 

(a) The initial amount allocated to a district under this

 

subsection toward fulfilling the specified percentages shall be

 

calculated by multiplying the district's special education pupil

 

membership, excluding pupils described in subsection (11), times

 

the foundation allowance under section 20 of the pupil's district

 

of residence, not to exceed the basic foundation allowance under

 

section 20 for the current fiscal year, or, for a special education

 

pupil in membership in a district that is a public school academy,

 

or university school, times an amount equal to the amount per

 

membership pupil calculated under section 20(6) or, for a pupil

 

described in this subsection who is counted in membership in the

 

education achievement system, times an amount equal to the amount

 

per membership pupil under section 20(7). For an intermediate

 

district, the amount allocated under this subdivision toward

 

fulfilling the specified percentages shall be an amount per special

 

education membership pupil, excluding pupils described in

 

subsection (11), and shall be calculated in the same manner as for

 

a district, using the foundation allowance under section 20 of the

 

pupil's district of residence, not to exceed the basic foundation

 

allowance under section 20 for the current fiscal year.

 

(b) After the allocations under subdivision (a), districts and

 

intermediate districts for which the payments calculated under

 

subdivision (a) do not fulfill the specified percentages shall be

 

paid the amount necessary to achieve the specified percentages for

 

the district or intermediate district.

 


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

 

allocated each fiscal year for 2011-2012 and for 2012-2013 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

 

article for the fiscal year beginning on the October 1 following

 

the determination and payments under subsection (3) shall be

 

adjusted as necessary. However, if the amount allocated under

 

subsection (2)(a) in itself exceeds the amount necessary to fulfill

 

the specified percentages in subsection (2), there shall be no

 

deduction under this subsection.

 

(5) State funds shall be allocated on a total approved cost

 

basis. Federal funds shall be allocated under applicable federal

 

requirements, except that an amount not to exceed $3,500,000.00 may

 

be allocated by the department each fiscal year for 2011-2012 and

 

for 2012-2013 to districts, intermediate districts, or other

 

eligible entities on a competitive grant basis for programs,

 

equipment, and services that the department determines to be

 

designed to benefit or improve special education on a statewide

 

scale.

 

(6) From the amount allocated in subsection (1), there is

 

allocated an amount not to exceed $2,200,000.00 each fiscal year

 

for 2011-2012 and for 2012-2013 to reimburse 100% of the net

 

increase in necessary costs incurred by a district or intermediate

 

district in implementing the revisions in the administrative rules

 

for special education that became effective on July 1, 1987. As

 

used in this subsection, "net increase in necessary costs" means

 


the necessary additional costs incurred solely because of new or

 

revised requirements in the administrative rules minus cost savings

 

permitted in implementing the revised rules. Net increase in

 

necessary costs shall be determined in a manner specified by the

 

department.

 

(7) For purposes of sections 51a to 58, all of the following

 

apply:

 

(a) "Total approved costs of special education" shall be

 

determined in a manner specified by the department and may include

 

indirect costs, but shall not exceed 115% of approved direct costs

 

for section 52 and section 53a programs. The total approved costs

 

include salary and other compensation for all approved special

 

education personnel for the program, including payments for social

 

security and medicare and public school employee retirement system

 

contributions. The total approved costs do not include salaries or

 

other compensation paid to administrative personnel who are not

 

special education personnel as defined in section 6 of the revised

 

school code, MCL 380.6. Costs reimbursed by federal funds, other

 

than those federal funds included in the allocation made under this

 

article, are not included. Special education approved personnel not

 

utilized full time in the evaluation of students or in the delivery

 

of special education programs, ancillary, and other related

 

services shall be reimbursed under this section only for that

 

portion of time actually spent providing these programs and

 

services, with the exception of special education programs and

 

services provided to youth placed in child caring institutions or

 

juvenile detention programs approved by the department to provide

 


Senate Bill No. 961 as amended April 25, 2012

 

an on-grounds education program.

 

(b) Beginning with the 2004-2005 fiscal year, a district or

 

intermediate district that employed special education support

 

services staff to provide special education support services in

 

2003-2004 or in a subsequent fiscal year and that in a fiscal year

 

after 2003-2004 receives the same type of support services from

 

another district or intermediate district shall report the cost of

 

those support services for special education reimbursement purposes

 

under this article. This subdivision does not prohibit the transfer

 

of special education classroom teachers and special education

 

classroom aides if the pupils counted in membership associated with

 

those special education classroom teachers and special education

 

classroom aides are transferred and counted in membership in the

 

other district or intermediate district in conjunction with the

 

transfer of those teachers and aides.

 

<<(c) If the department determines before bookclosing for a

 

fiscal year that the amounts allocated for that fiscal year under

 

subsections (2), (3), (6), and (11) and sections 53a, 54, and 56

 

will exceed expenditures for that fiscal year under subsections

 

(2), (3), (6), and (11) and sections 53a, 54, and 56, then for a

 

district or intermediate district whose reimbursement for that

 

fiscal year would otherwise be affected by subdivision (b),

 

subdivision (b) does not apply to the calculation of the

 

reimbursement for that district or intermediate district and

 

reimbursement for that district or intermediate district shall be

 

calculated in the same manner as it was for 2003-2004. If the

 

amount of the excess allocations under subsections (2), (3), (6),

 


Senate Bill No. 961 as amended April 25, 2012

 

and (11) and sections 53a, 54, and 56 is not sufficient to fully

 

fund the calculation of reimbursement to those districts and

 

intermediate districts under this subdivision, then the

 

calculations and resulting reimbursement under this subdivision

 

shall be prorated on an equal percentage basis.

 

(d)>> Reimbursement for ancillary and other related

 

services, as defined by R 340.1701c of the Michigan administrative

 

code, shall not be provided when those services are covered by and

 

available through private group health insurance carriers or

 

federal reimbursed program sources unless the department and

 

district or intermediate district agree otherwise and that

 

agreement is approved by the state budget director. Expenses, other

 

than the incidental expense of filing, shall not be borne by the

 

parent. In addition, the filing of claims shall not delay the

 

education of a pupil. A district or intermediate district shall be

 

responsible for payment of a deductible amount and for an advance

 

payment required until the time a claim is paid.

 

<<(e)>> Beginning with calculations for 2004-2005, if an

 

intermediate district purchases a special education pupil

 

transportation service from a constituent district that was

 

previously purchased from a private entity; if the purchase from

 

the constituent district is at a lower cost, adjusted for changes

 

in fuel costs; and if the cost shift from the intermediate district

 

to the constituent does not result in any net change in the revenue

 

the constituent district receives from payments under sections 22b

 

and 51c, then upon application by the intermediate district, the

 

department shall direct the intermediate district to continue to

 


report the cost associated with the specific identified special

 

education pupil transportation service and shall adjust the costs

 

reported by the constituent district to remove the cost associated

 

with that specific service.

 

(8) A pupil who is enrolled in a full-time special education

 

program conducted or administered by an intermediate district or a

 

pupil who is enrolled in the Michigan schools for the deaf and

 

blind shall not be included in the membership count of a district,

 

but shall be counted in membership in the intermediate district of

 

residence.

 

(9) Special education personnel transferred from 1 district to

 

another to implement the revised school code shall be entitled to

 

the rights, benefits, and tenure to which the person would

 

otherwise be entitled had that person been employed by the

 

receiving district originally.

 

(10) If a district or intermediate district uses money

 

received under this section for a purpose other than the purpose or

 

purposes for which the money is allocated, the department may

 

require the district or intermediate district to refund the amount

 

of money received. Money that is refunded shall be deposited in the

 

state treasury to the credit of the state school aid fund.

 

(11) From the funds allocated in subsection (1), there is

 

allocated the amount necessary, estimated at $5,000,000.00 for

 

2011-2012 and estimated at $4,800,000.00 for 2012-2013, to pay the

 

foundation allowances for pupils described in this subsection. The

 

allocation to a district under this subsection shall be calculated

 

by multiplying the number of pupils described in this subsection

 


who are counted in membership in the district times the foundation

 

allowance under section 20 of the pupil's district of residence,

 

not to exceed the basic foundation allowance under section 20 for

 

the current fiscal year, or, for a pupil described in this

 

subsection who is counted in membership in a district that is a

 

public school academy, or university school, times an amount equal

 

to the amount per membership pupil under section 20(6) or, for a

 

pupil described in this subsection who is counted in membership in

 

the education achievement system, times an amount equal to the

 

amount per membership pupil under section 20(7). The allocation to

 

an intermediate district under this subsection shall be calculated

 

in the same manner as for a district, using the foundation

 

allowance under section 20 of the pupil's district of residence,

 

not to exceed the basic foundation allowance under section 20 for

 

the current fiscal year. This subsection applies to all of the

 

following pupils:

 

(a) Pupils described in section 53a.

 

(b) Pupils counted in membership in an intermediate district

 

who are not special education pupils and are served by the

 

intermediate district in a juvenile detention or child caring

 

facility.

 

(c) Pupils with an emotional impairment counted in membership

 

by an intermediate district and provided educational services by

 

the department of community health.

 

(12) If it is determined that funds allocated under subsection

 

(2) or (11) or under section 51c will not be expended, funds up to

 

the amount necessary and available may be used to supplement the

 


allocations under subsection (2) or (11) or under section 51c in

 

order to fully fund those allocations. After payments under

 

subsections (2) and (11) and section 51c, the remaining

 

expenditures from the allocation in subsection (1) shall be made in

 

the following order:

 

(a) 100% of the reimbursement required under section 53a.

 

(b) 100% of the reimbursement required under subsection (6).

 

(c) 100% of the payment required under section 54.

 

(d) 100% of the payment required under subsection (3).

 

(e) 100% of the payments under section 56.

 

(13) The allocations under subsections (2), (3), and (11)

 

shall be allocations to intermediate districts only and shall not

 

be allocations to districts, but instead shall be calculations used

 

only to determine the state payments under section 22b.

 

(14) If a public school academy enrolls pursuant to this

 

section a pupil who resides outside of the intermediate district in

 

which the public school academy is located and who is eligible for

 

special education programs and services according to statute or

 

rule, or who is a child with disabilities, as defined under the

 

individuals with disabilities education act, Public Law 108-446,

 

the provision of special education programs and services and the

 

payment of the added costs of special education programs and

 

services for the pupil are the responsibility of the district and

 

intermediate district in which the pupil resides unless the

 

enrolling district or intermediate district has a written agreement

 

with the district or intermediate district in which the pupil

 

resides or the public school academy for the purpose of providing

 


the pupil with a free appropriate public education and the written

 

agreement includes at least an agreement on the responsibility for

 

the payment of the added costs of special education programs and

 

services for the pupil.

 

Sec. 51c. As required by the court in the consolidated cases

 

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

 

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

 

is allocated each fiscal year for 2011-2012 and for 2012-2013 the

 

amount necessary, estimated at $647,500,000.00 for 2011-2012 and

 

estimated at $672,900,000.00 for 2012-2013, for payments to

 

reimburse districts for 28.6138% of total approved costs of special

 

education excluding costs reimbursed under section 53a, and

 

70.4165% of total approved costs of special education

 

transportation. Funds allocated under this section that are not

 

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

 

determined by the department, may be used to supplement the

 

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

 

calculated allocations for the same fiscal year.

 

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

 

11, there is allocated for each fiscal year 2011-2012 and for 2012-

 

2013 all available federal funding, estimated at $74,000,000.00

 

each fiscal year, for special education programs that are funded by

 

federal grants. All federal funds allocated under this section

 

shall be distributed in accordance with federal law.

 

Notwithstanding section 17b, payments of federal funds to

 

districts, intermediate districts, and other eligible entities

 

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

 


department.

 

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

 

following amounts are allocated each fiscal year for 2011-2012 and

 

for 2012-2013:

 

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

 

infants and toddlers, funded from DED-OSERS, handicapped infants

 

and toddlers funds.

 

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

 

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

 

incentive funds.

 

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

 

education programs funded by DED-OSERS, handicapped program,

 

individuals with disabilities act funds.

 

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

 

States department of education office of special education and

 

rehabilitative services.

 

Sec. 53a. (1) For districts, reimbursement for pupils

 

described in subsection (2) shall be 100% of the total approved

 

costs of operating special education programs and services approved

 

by the department and included in the intermediate district plan

 

adopted pursuant to article 3 of the revised school code, MCL

 

380.1701 to 380.1766, minus the district's foundation allowance

 

calculated under section 20. For intermediate districts,

 

reimbursement for pupils described in subsection (2) shall be

 

calculated in the same manner as for a district, using the

 

foundation allowance under section 20 of the pupil's district of

 

residence, not to exceed the basic foundation allowance under

 


section 20 for the current fiscal year.

 

(2) Reimbursement under subsection (1) is for the following

 

special education pupils:

 

(a) Pupils assigned to a district or intermediate district

 

through the community placement program of the courts or a state

 

agency, if the pupil was a resident of another intermediate

 

district at the time the pupil came under the jurisdiction of the

 

court or a state agency.

 

(b) Pupils who are residents of institutions operated by the

 

department of community health.

 

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

 

health institutions for the developmentally disabled who are placed

 

in community settings other than the pupil's home.

 

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

 

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

 

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

 

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

 

longer than 180 days but not longer than 233 days.

 

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

 

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

 

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

 

(3) Only those costs that are clearly and directly

 

attributable to educational programs for pupils described in

 

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

 

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

 

reimbursable under this section.

 

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

 


section and shall not be reimbursed under section 58.

 

(5) Not more than $12,300,000.00 of the allocation for 2010-

 

2011 and not more than $13,500,000.00 of the allocation for 2011-

 

2012 and for 2012-2013 in section 51a(1) shall be allocated for

 

each fiscal year under this section.

 

Sec. 54. Each intermediate district shall receive an amount

 

per pupil for each pupil in attendance at the Michigan schools for

 

the deaf and blind. The amount shall be proportionate to the total

 

instructional cost at each school. Not more than $1,688,000.00 of

 

the allocation for 2011-2012 and for 2012-2013 in section 51a(1)

 

shall be allocated for each fiscal year under this section.

 

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

 

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

 

membership for the immediately preceding fiscal year of the

 

intermediate district and the districts constituent to the

 

intermediate district.

 

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

 

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

 

380.1711 to 380.1743, including a levy for debt service

 

obligations.

 

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

 

districts constituent to an intermediate district, except that if a

 

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

 

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

 

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

 

value of the intermediate district.

 

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

 


allocated an amount not to exceed $36,881,100.00 each fiscal year

 

for 2011-2012 and for 2012-2013 to reimburse intermediate districts

 

levying millages for special education pursuant to part 30 of the

 

revised school code, MCL 380.1711 to 380.1743. The purpose, use,

 

and expenditure of the reimbursement shall be limited as if the

 

funds were generated by these millages and governed by the

 

intermediate district plan adopted pursuant to article 3 of the

 

revised school code, MCL 380.1701 to 380.1766. As a condition of

 

receiving funds under this section, an intermediate district

 

distributing any portion of special education millage funds to its

 

constituent districts shall submit for departmental approval and

 

implement a distribution plan.

 

(3) Reimbursement for those millages levied in 2010-2011 shall

 

be made in 2011-2012 at an amount per 2010-2011 membership pupil

 

computed by subtracting from $174,700.00 the 2010-2011 taxable

 

value behind each membership pupil and multiplying the resulting

 

difference by the 2010-2011 millage levied. Reimbursement for those

 

millages levied in 2011-2012 shall be made in 2012-2013 at an

 

amount per 2011-2012 membership pupil computed by subtracting from

 

$169,200.00 the 2011-2012 taxable value behind each membership

 

pupil and multiplying the resulting difference by the 2011-2012

 

millage levied.

 

Sec. 61a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $26,611,300.00 each fiscal year

 

for 2011-2012 and for 2012-2013 to reimburse on an added cost basis

 

districts, except for a district that served as the fiscal agent

 

for a vocational education consortium in the 1993-94 school year,

 


and secondary area vocational-technical education centers for

 

secondary-level career and technical education programs according

 

to rules approved by the superintendent. Applications for

 

participation in the programs shall be submitted in the form

 

prescribed by the department. The department shall determine the

 

added cost for each career and technical education program area.

 

The allocation of added cost funds shall be based on the type of

 

career and technical education programs provided, the number of

 

pupils enrolled, and the length of the training period provided,

 

and shall not exceed 75% of the added cost of any program. With the

 

approval of the department, the board of a district maintaining a

 

secondary career and technical education program may offer the

 

program for the period from the close of the school year until

 

September 1. The program shall use existing facilities and shall be

 

operated as prescribed by rules promulgated by the superintendent.

 

(2) Except for a district that served as the fiscal agent for

 

a vocational education consortium in the 1993-94 school year,

 

districts and intermediate districts shall be reimbursed for local

 

career and technical education administration, shared time career

 

and technical education administration, and career education

 

planning district career and technical education administration.

 

The definition of what constitutes administration and reimbursement

 

shall be pursuant to guidelines adopted by the superintendent. Not

 

more than $800,000.00 of the allocation in subsection (1) shall be

 

distributed under this subsection.

 

Sec. 62. (1) For the purposes of this section:

 

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

 


membership for the immediately preceding fiscal year of the

 

intermediate district and the districts constituent to the

 

intermediate district or the total membership for the immediately

 

preceding fiscal year of the area vocational-technical program.

 

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

 

vocational-technical education pursuant to sections 681 to 690 of

 

the revised school code, MCL 380.681 to 380.690, including a levy

 

for debt service obligations incurred as the result of borrowing

 

for capital outlay projects and in meeting capital projects fund

 

requirements of area vocational-technical education.

 

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

 

districts constituent to an intermediate district or area

 

vocational-technical education program, except that if a district

 

has elected not to come under sections 681 to 690 of the revised

 

school code, MCL 380.681 to 380.690, the membership and taxable

 

value of that district shall not be included in the membership and

 

taxable value of the intermediate district. However, the membership

 

and taxable value of a district that has elected not to come under

 

sections 681 to 690 of the revised school code, MCL 380.681 to

 

380.690, shall be included in the membership and taxable value of

 

the intermediate district if the district meets both of the

 

following:

 

(i) The district operates the area vocational-technical

 

education program pursuant to a contract with the intermediate

 

district.

 

(ii) The district contributes an annual amount to the operation

 

of the program that is commensurate with the revenue that would

 


have been raised for operation of the program if millage were

 

levied in the district for the program under sections 681 to 690 of

 

the revised school code, MCL 380.681 to 380.690.

 

(2) From the appropriation in section 11, there is allocated

 

an amount not to exceed $8,693,000.00 for 2010-2011 and an amount

 

not to exceed $9,000,000.00 each fiscal year for 2011-2012 to

 

reimburse intermediate districts and area vocational-technical

 

education programs established under section 690(3) of the revised

 

school code, MCL 380.690, levying millages for area vocational-

 

technical education pursuant to sections 681 to 690 of the revised

 

school code, MCL 380.681 to 380.690. The purpose, use, and

 

expenditure of the reimbursement shall be limited as if the funds

 

were generated by those millages.

 

(3) Reimbursement for the millages levied in 2010-2011 shall

 

be made in 2011-2012 at an amount per 2010-2011 membership pupil

 

computed by subtracting from $190,400.00 the 2010-2011 taxable

 

value behind each membership pupil and multiplying the resulting

 

difference by the 2010-2011 millage levied. Reimbursement for those

 

millages levied in 2011-2012 shall be made in 2012-2013 at an

 

amount per 2011-2012 membership pupil computed by subtracting from

 

$186,600.00 the 2011-2012 taxable value behind each membership

 

pupil and multiplying the resulting difference by the 2011-2012

 

millage levied.

 

Sec. 74. (1) From the amount appropriated in section 11, there

 

is allocated an amount not to exceed $3,233,900.00 for 2011-2012

 

and an amount not to exceed $3,259,900.00 for 2012-2013 for the

 

purposes of this section.

 


(2) From the allocation in subsection (1), there is allocated

 

for each fiscal year the amount necessary for payments to state

 

supported colleges or universities and intermediate districts

 

providing school bus driver safety instruction pursuant to section

 

51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The

 

payments shall be in an amount determined by the department not to

 

exceed 75% of the actual cost of instruction and driver

 

compensation for each public or nonpublic school bus driver

 

attending a course of instruction. For the purpose of computing

 

compensation, the hourly rate allowed each school bus driver shall

 

not exceed the hourly rate received for driving a school bus.

 

Reimbursement compensating the driver during the course of

 

instruction shall be made by the department to the college or

 

university or intermediate district providing the course of

 

instruction.

 

(3) From the allocation in subsection (1), there is allocated

 

each fiscal year the amount necessary to pay the reasonable costs

 

of nonspecial education auxiliary services transportation provided

 

pursuant to section 1323 of the revised school code, MCL 380.1323.

 

Districts funded under this subsection shall not receive funding

 

under any other section of this article for nonspecial education

 

auxiliary services transportation.

 

(4) From the funds allocated in subsection (1), there is

 

allocated an amount not to exceed $1,608,900.00 for 2011-2012 and

 

an amount not to exceed $1,634,900.00 for 2012-2013 for

 

reimbursement to districts and intermediate districts for costs

 

associated with the inspection of school buses and pupil

 


transportation vehicles by the department of state police as

 

required under section 715a of the Michigan vehicle code, 1949 PA

 

300, MCL 257.715a, and section 39 of the pupil transportation act,

 

1990 PA 187, MCL 257.1839. The department of state police shall

 

prepare a statement of costs attributable to each district for

 

which bus inspections are provided and submit it to the department

 

and to each affected an intermediate district serving as fiduciary

 

in a time and manner determined jointly by the department and the

 

department of state police. The Upon review and approval of the

 

statement of cost, the department shall reimburse forward to the

 

designated intermediate district serving as fiduciary the amount of

 

the reimbursement on behalf of each district and intermediate

 

district for costs detailed on the statement within 30 45 days

 

after receipt of the statement. Districts for which services are

 

provided The designated intermediate district shall make payment in

 

the amount specified on the statement to the department of state

 

police within 45 days after receipt of the statement. The total

 

reimbursement of costs under this subsection shall not exceed the

 

amount allocated under this subsection. Notwithstanding section

 

17b, payments to eligible entities under this subsection shall be

 

paid on a schedule prescribed by the department.

 

Sec. 81. (1) Except as otherwise provided in this section,

 

from the appropriation in section 11, there is allocated each

 

fiscal year for 2011-2012 and for 2012-2013 to the intermediate

 

districts the sum necessary, but not to exceed $62,108,000.00 each

 

fiscal year, to provide state aid to intermediate districts under

 

this section.

 


(2) Except as otherwise provided in this section, there shall

 

be allocated to each intermediate district for 2011-2012 2012-2013

 

an amount equal to 95% 100% of the amount allocated to the

 

intermediate district under this subsection for 2010-2011. 2011-

 

2012. Funding provided under this section shall be used to comply

 

with requirements of this article and the revised school code that

 

are applicable to intermediate districts, and for which funding is

 

not provided elsewhere in this article, and to provide technical

 

assistance to districts as authorized by the intermediate school

 

board.

 

(3) (2) Intermediate districts receiving funds under this

 

section subsection (2) shall collaborate with the department to

 

develop expanded professional development opportunities for

 

teachers to update and expand their knowledge and skills needed to

 

support the Michigan merit curriculum.

 

(4) (3) From the allocation in subsection (1), there is

 

allocated to an intermediate district, formed by the consolidation

 

or annexation of 2 or more intermediate districts or the attachment

 

of a total intermediate district to another intermediate school

 

district or the annexation of all of the constituent K-12 districts

 

of a previously existing intermediate school district which has

 

disorganized, an additional allotment of $3,500.00 each fiscal year

 

for each intermediate district included in the new intermediate

 

district for 3 years following consolidation, annexation, or

 

attachment.

 

(5) (4) During a fiscal year, the department shall not

 

increase an intermediate district's allocation under subsection (1)

 


because of an adjustment made by the department during the fiscal

 

year in the intermediate district's taxable value for a prior year.

 

Instead, the department shall report the adjustment and the

 

estimated amount of the increase to the house and senate fiscal

 

agencies and the state budget director not later than June 1 of the

 

fiscal year, and the legislature shall appropriate money for the

 

adjustment in the next succeeding fiscal year.

 

(6) (5) In order to receive funding under this section,

 

subsection (2), an intermediate district shall do all of the

 

following:

 

(a) Demonstrate to the satisfaction of the department that the

 

intermediate district employs at least 1 person who is trained in

 

pupil counting accounting and auditing procedures, rules, and

 

regulations.

 

(b) Demonstrate to the satisfaction of the department that the

 

intermediate district employs at least 1 person who is trained in

 

rules, regulations, and district reporting procedures for the

 

individual-level student data that serves as the basis for the

 

calculation of the district and high school graduation and dropout

 

rates.