FIRST CONFERENCE REPORT

 

     The Committee of Conference on the matters of difference between the two Houses concerning

 

     Senate Bill No. 182, entitled

 

     A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 6, 11, 11a, 11g, 11j, 11k, 11m, 12, 15, 18, 18b, 19, 20, 20d, 22a, 22b, 22d, 22j, 24, 24a, 24c, 26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39a, 51a, 51b, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 95, 98, 99, 101, 102, 104, 107, 147, 147a, 147b, 147c, and 152a (MCL 388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1612, 388.1615, 388.1618, 388.1618b, 388.1619, 388.1620, 388.1620d, 388.1622a, 388.1622b, 388.1622d, 388.1622j, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1626c, 388.1631a, 388.1631d, 388.1631f, 388.1632d, 388.1632p, 388.1639a, 388.1651a, 388.1651b, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1694a, 388.1695, 388.1698, 388.1699, 388.1701, 388.1702, 388.1704, 388.1707, 388.1747, 388.1747a, 388.1747b, 388.1747c, and 388.1752a), sections 6, 11, and 26b as amended by 2012 PA 465, sections 11a, 11g, 11j, 11k, 11m, 12, 18, 19, 20, 20d, 22a, 22b, 22d, 24, 24a, 24c, 26a, 31a, 31d, 31f, 32d, 39a, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 98, 99, 102, 104, 107, 147, 147a, 147b, and 152a as amended and sections 22j, 26c, 32p, 95, and 147c as added by 2012 PA 201, section 15 as amended by 2012 PA 286, section 18b as amended by 2008 PA 268, section 51b as added by 1996 PA 300, and section 101 as amended by 2012 PA 516, and by adding sections 11s, 21f, 22k, 22m, 25e, and 32q; and to repeal acts and parts of acts.

 

     Recommends:

 

     First:  That the House recede from the Substitute of the House as passed by the House.

 

 

     Second:  That the Senate and House agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:

 

(attached)

 

     Third:  That the Senate and House agree to the title of the bill to read as follows:

 

     A bill to amend 1979 PA 94, entitled "An act to make

appropriations to aid in the support of the public schools, the intermediate school districts, community colleges, and public universities of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and parts of acts," by amending sections 6, 11, 11a, 11g, 11j, 11k, 11m, 12, 15, 18, 18b, 19, 20, 20d, 22a, 22b, 22d, 22f, 22g, 22i, 22j, 24, 24a, 24c, 26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 51a, 51b, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 95, 98, 99, 101, 102, 104, 107, 147, 147a, 147b, 147c, and 152a (MCL 388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1612, 388.1615, 388.1618, 388.1618b, 388.1619, 388.1620, 388.1620d, 388.1622a, 388.1622b, 388.1622d, 388.1622f, 388.1622g, 388.1622i, 388.1622j, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1626c, 388.1631a, 388.1631d, 388.1631f, 388.1632d, 388.1632p, 388.1639, 388.1639a, 388.1651a, 388.1651b, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1694a, 388.1695, 388.1698, 388.1699, 388.1701, 388.1702, 388.1704, 388.1707, 388.1747, 388.1747a, 388.1747b, 388.1747c, and 388.1752a), sections 6, 11, and 26b as amended by 2012 PA 465, sections 11a, 11g, 11j, 11k, 11m, 12, 18, 19, 20, 20d, 22a, 22b, 22d, 22f, 24, 24a, 24c, 26a, 31a, 31d, 31f, 32d, 39, 39a, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 98, 99, 102, 104, 107, 147, 147a, 147b, and 152a as amended and sections 22g, 22i, 22j, 26c, 32p, 95, and 147c as added by 2012 PA 201, section 15 as amended by 2012 PA 286, section 18b as amended by 2008 PA 268, section 51b as added by 1996 PA 300, and section 101 as amended by 2013 PA 29, and by adding sections 20f, 21f, 22c, 22k, 25e, 41, 64a, and 99h; and to repeal acts and parts of acts.

 

 

 

_______________________                 ________________________

Howard Walker                           Bill Rogers

 

_______________________                 ________________________

Roger Kahn                              Phil Potvin

 

_______________________                 ________________________

Hoon-Yung Hopgood                       Brandon Dillon

 

Conferees for the Senate                Conferees for the House

 

SUBSTITUTE FOR

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 182

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 6, 11, 11a, 11g, 11j, 11k, 11m, 12, 15, 18,

 

18b, 19, 20, 20d, 22a, 22b, 22d, 22f, 22g, 22i, 22j, 24, 24a, 24c,

 

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

 

51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 95, 98, 99, 101, 102, 104,

 

107, 147, 147a, 147b, 147c, and 152a (MCL 388.1606, 388.1611,

 

388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1612,

 

388.1615, 388.1618, 388.1618b, 388.1619, 388.1620, 388.1620d,

 

388.1622a, 388.1622b, 388.1622d, 388.1622f, 388.1622g, 388.1622i,

 

388.1622j, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b,

 

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

 

388.1639, 388.1639a, 388.1651a, 388.1651b, 388.1651c, 388.1651d,

 

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

 


388.1681, 388.1694a, 388.1695, 388.1698, 388.1699, 388.1701,

 

388.1702, 388.1704, 388.1707, 388.1747, 388.1747a, 388.1747b,

 

388.1747c, and 388.1752a), sections 6, 11, and 26b as amended by

 

2012 PA 465, sections 11a, 11g, 11j, 11k, 11m, 12, 18, 19, 20, 20d,

 

22a, 22b, 22d, 22f, 24, 24a, 24c, 26a, 31a, 31d, 31f, 32d, 39, 39a,

 

51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 98, 99, 102, 104,

 

107, 147, 147a, 147b, and 152a as amended and sections 22g, 22i,

 

22j, 26c, 32p, 95, and 147c as added by 2012 PA 201, section 15 as

 

amended by 2012 PA 286, section 18b as amended by 2008 PA 268,

 

section 51b as added by 1996 PA 300, and section 101 as amended by

 

2013 PA 29, and by adding sections 20f, 21f, 22c, 22k, 25e, 41,

 

64a, and 99h; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

district or by an intermediate district for special education

 

pupils from several districts in programs for pupils with autism

 

spectrum disorder, pupils with severe cognitive impairment, pupils

 

with moderate cognitive impairment, pupils with severe multiple

 

impairments, pupils with hearing impairment, pupils with visual

 

impairment, and pupils with physical impairment or other health

 

impairment. Programs for pupils with emotional impairment housed in

 

buildings that do not serve regular education pupils also qualify.

 

Unless otherwise approved by the department, a center program

 

either shall serve all constituent districts within an intermediate

 

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

 

pupils residing in the operating district. In addition, special

 

education center program pupils placed part-time in noncenter

 


programs to comply with the least restrictive environment

 

provisions of section 612 of part B of the individuals with

 

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

 

program pupils for pupil accounting purposes for the time scheduled

 

in either a center program or a noncenter program.

 

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

 

annual completion and pupil dropout rate that is calculated by the

 

center pursuant to nationally recognized standards.

 

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

 

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

 

the district for the immediately preceding school year, adjusted

 

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

 

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

 

credential of equal status.

 

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

 

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

 

education achievement system, or an intermediate district the sum

 

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

 

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

 

on the pupil membership count day for the current school year, plus

 

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

 

supplemental count day for the immediately preceding current school

 

year. A district's, public school academy's, or intermediate

 

district's membership shall be adjusted as provided under section

 

25 for pupils who enroll in the district, public school academy, or

 

intermediate district after the pupil membership count day. All

 

pupil counts used in this subsection are as determined by the

 


department and calculated by adding the number of pupils registered

 

for attendance plus pupils received by transfer and minus pupils

 

lost as defined by rules promulgated by the superintendent, and as

 

corrected by a subsequent department audit. For the purposes of

 

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

 

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

 

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

 

school code, MCL 380.553a, 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; for the education achievement system, a pupil's

 

participation in an online educational program of the education

 

achievement system or of an achievement school is considered

 

regular daily attendance; and for a district a pupil's

 

participation in an online course as defined in section 21f is

 

considered regular daily attendance. The amount of the foundation

 

allowance for a pupil in membership is determined under section 20.

 

In making the calculation of membership, all of the following, as

 

applicable, apply to determining the membership of a district, a

 

public school academy, the education achievement system, or an

 

intermediate district:

 

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

 

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

 

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

 

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

 

membership.

 


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

 

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

 

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

 

of residence does not give the educating district its approval to

 

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

 

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

 

the requirement that the educating district must have the approval

 

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

 

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

 

district.

 

     (c) A special education pupil educated by the intermediate

 

district shall be counted in membership in the intermediate

 

district.

 

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

 

program of a juvenile detention facility, a child caring

 

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

 

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

 

or intermediate district approved by the department to operate the

 

program.

 

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

 

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

 

district of residence.

 

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

 

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

 

single district or in an area vocational-technical education

 

program established pursuant to section 690 of the revised school

 

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

 


residence.

 

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

 

counted in membership in the public school academy.

 

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

 

in membership in the education achievement system.

 

     (i) For a new district or public school academy beginning its

 

operation after December 31, 1994, or for the education achievement

 

system or an achievement school, membership for the first 2 full or

 

partial fiscal years of operation shall be determined as follows:

 

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

 

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

 

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

 

daily attendance on the pupil membership count day for the current

 

school year and on the supplemental count day for the current

 

school year, as determined by the department and calculated by

 

adding the number of pupils registered for attendance on the pupil

 

membership count day plus pupils received by transfer and minus

 

pupils lost as defined by rules promulgated by the superintendent,

 

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

 

audited count from the supplemental count day for the current

 

school year, and dividing that sum by 2.

 

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

 

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

 

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

 

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

 

enrolled and in regular daily attendance on the supplemental count

 

day for the current school year.

 


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

 

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

 

in membership on the pupil membership count day in the public

 

school academy, the determination of the district's membership

 

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

 

preceding supplemental count day any pupils who are counted in the

 

public school academy on that first pupil membership count day who

 

were also counted in the district on the immediately preceding

 

supplemental count day.

 

     (k) In a district, a public school academy, the education

 

achievement system, or an intermediate district operating an

 

extended school year program approved by the superintendent, a

 

pupil enrolled, but not scheduled to be in regular daily attendance

 

on a pupil membership count day, shall be counted.

 

     (l) To be counted in membership, a pupil shall meet the minimum

 

age requirement to be eligible to attend school under section 1147

 

of the revised school code, MCL 380.1147, or shall be enrolled

 

under subsection (3) of that section, and shall be less than 20

 

years of age on September 1 of the school year except as follows:

 

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

 

instruction in a special education program or service approved by

 

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

 

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

 

year shall be counted in membership.

 

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

 

the following may be counted in membership:

 

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

 


education high school diploma program, that is primarily focused on

 

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

 

population of more than 500,000.175,000.

 

     (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.

 

     (iii) If a child becomes a resident of a district and the child

 

does not meet the minimum age requirement to be eligible to attend

 

school for that school year under section 1147 of the revised

 

school code, MCL 380.1147, but will be 5 years of age not later

 

than December 1 of that school year, the district may count the

 

child in membership for that school year if the parent or legal

 

guardian has notified the district in writing that he or she

 

intends to enroll the child in kindergarten for that school year.

 

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

 

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

 

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

 

counted in membership unless the individual is a pupil with a

 

disability as defined in R 340.1702 of the Michigan administrative

 

code. An individual participating in a job training program funded

 

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

 

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

 

participating in any successor of either of those 2 programs, shall

 

not be counted in membership.

 

     (n) If a pupil counted in membership in a public school

 

academy or the education achievement system is also educated by a

 


district or intermediate district as part of a cooperative

 

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

 

the public school academy or the education achievement system

 

unless a written agreement signed by all parties designates the

 

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

 

and the instructional time scheduled for the pupil in the district

 

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

 

membership determination under subdivision (q). 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) Beginning in 2012-2013, full-time equated memberships for

 

pupils in kindergarten shall be determined by dividing the number

 

of instructional hours scheduled and provided per year per

 

kindergarten pupil by the same number used for determining full-

 

time equated memberships for pupils in grades 1 to 12. However, to

 


the extent allowable under federal law, for a district or public

 

school academy that provides evidence satisfactory to the

 

department that it used federal title I money in the 2 immediately

 

preceding school fiscal years to fund full-time kindergarten, full-

 

time equated memberships for pupils in kindergarten shall be

 

determined by dividing the number of class hours scheduled and

 

provided per year per kindergarten pupil by a number equal to 1/2

 

the number used for determining full-time equated memberships for

 

pupils in grades 1 to 12. Not later than December 1, 2012, the

 

department shall seek a clarification from the federal department

 

of education as to whether this is an allowable use of federal

 

title I money. The change in the counting of full-time equated

 

memberships for pupils in kindergarten that takes took effect in

 

for 2012-2013 is not a mandate. Not later than the fifth Wednesday

 

after the pupil membership count day, each district or public

 

school academy and the education achievement system shall report to

 

the department and the center the number of instructional hours

 

scheduled per kindergarten pupil for 2012-2013. If the number of

 

instructional hours scheduled per kindergarten pupil is not equal

 

for all kindergarten pupils in the district, the district or public

 

school academy and the education achievement system shall report

 

the number of kindergarten pupils who were scheduled to receive

 

each of the different numbers of instructional hours scheduled.

 

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

 

achievement system that has pupils enrolled in a grade level that

 

was not offered by the district, the public school academy, or the

 

education achievement system in the immediately preceding school

 


year, the number of pupils enrolled in that grade level to be

 

counted in membership is the average of the number of those pupils

 

enrolled and in regular daily attendance on the pupil membership

 

count day and the supplemental count day of the current school

 

year, as determined by the department. Membership shall be

 

calculated by adding the number of pupils registered for attendance

 

in that grade level on the pupil membership count day plus pupils

 

received by transfer and minus pupils lost as defined by rules

 

promulgated by the superintendent, and as corrected by subsequent

 

department audit, plus the final audited count from the

 

supplemental count day for the current school year, and dividing

 

that sum by 2.

 

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

 

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

 

written approval of all parties to the cooperative agreement.

 

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

 

determines through the district's alternative or disciplinary

 

education program that the best instructional placement for a pupil

 

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

 

population, if that placement is authorized in writing by the

 

district superintendent and district alternative or disciplinary

 

education supervisor, and if the district provides appropriate

 

instruction as described in this subdivision to the pupil at the

 

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

 

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

 

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

 

district actually provides to the pupil divided by the number of

 


hours specified in subdivision (q) 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, 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 special education

 

pupils who are not enrolled in kindergarten but are enrolled in a

 

classroom program under R 340.1754 of the Michigan administrative

 

code shall be determined by dividing the number of class hours

 

scheduled and provided per year by 450. Full-time equated

 

memberships for special education pupils who are not enrolled in

 

kindergarten but are receiving early childhood special education

 

services under R 340.1755 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.

 

     (ff) For a pupil enrolled in a dropout recovery program that

 

meets the requirements of section 23a, the pupil shall be counted

 

as 1/12 of a full-time equated membership for each month that the

 

district operating the program reports that the pupil was enrolled

 


in the program and was in full attendance. However, a pupil counted

 

under this subdivision shall not be counted as more than 1.0 FTE in

 

a fiscal year. The district operating the program shall report to

 

the center the number of pupils who were enrolled in the program

 

and were in full attendance for a month not later than the tenth

 

day of the next month. A district shall not report a pupil as being

 

in full attendance for a month unless both of the following are

 

met:

 

     (i) A personalized learning plan is in place on or before the

 

first school day of the month for the first month the pupil

 

participates in the program.

 

     (ii) The pupil meets the district's definition under section

 

23a of satisfactory monthly progress for that month or, if the

 

pupil does not meet that definition of satisfactory monthly

 

progress for that month, the pupil did meet that definition of

 

satisfactory monthly progress in the immediately preceding month

 

and appropriate interventions are implemented within 10 school days

 

after it is determined that the pupil does not meet that definition

 

of satisfactory monthly progress.

 

     (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 the

 

education achievement system.

 

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

 

district of residence under an intermediate district schools of

 

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

 

91 if the intermediate district and its constituent districts have

 

been exempted from section 105.

 

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

 

district of residence if the pupil is enrolled in accordance with

 

section 105 or 105c.

 

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

 

whose parent or legal guardian has made an official written

 

complaint to law enforcement officials and to school officials of

 

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

 

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

 

the official complaint either indicates that the assault occurred

 

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

 

pupils enrolled in the school the pupil would otherwise attend in

 

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

 

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

 

crime to law enforcement officials for the purposes of this

 

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

 

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

 

that conduct. As used in this subdivision:

 


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

 

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

 

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

 

school premises.

 

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

 

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

 

MCL 750.81 to 750.90h, or that constitutes an assault and

 

infliction of serious or aggravated injury under section 81a of the

 

Michigan penal code, 1931 PA 328, MCL 750.81a.

 

     (g) A pupil whose district of residence changed after the

 

pupil membership count day and before the supplemental count day

 

and who continues to be enrolled on the supplemental count day as a

 

nonresident in the district in which he or she was enrolled as a

 

resident on the pupil membership count day of the same school year.

 

     (h) A pupil enrolled in an alternative education program

 

operated by a district other than his or her district of residence

 

who meets 1 or more of the following:

 

     (i) The pupil has been suspended or expelled from his or her

 

district of residence for any reason, including, but not limited

 

to, a suspension or expulsion under section 1310, 1311, or 1311a of

 

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

 

     (ii) The pupil had previously dropped out of school.

 

     (iii) The pupil is pregnant or is a parent.

 

     (iv) The pupil has been referred to the program by a court.

 

     (v) The pupil is enrolled in an alternative or disciplinary

 

education program described in section 25.

 

     (i) A pupil enrolled in the Michigan virtual school, for the

 


pupil's enrollment in the Michigan virtual school.

 

     (j) A pupil who is the child of a person who works at the

 

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

 

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

 

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

 

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

 

or legal ward.

 

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

 

expelling district and is reinstated by another school board under

 

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

 

380.1311a.

 

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

 

district of residence in a middle college program if the pupil's

 

district of residence and the enrolling district are both

 

constituent districts of the same intermediate district.

 

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

 

district of residence who attends a United States Olympic education

 

center.

 

     (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).

 


     (p) An online learning pupil enrolled in a district other than

 

the pupil's district of residence as an eligible pupil under

 

section 21f.

 

     However, if a district educates pupils who reside in another

 

district and if the primary instructional site for those pupils is

 

established by the educating district after 2009-2010 and is

 

located within the boundaries of that other district, the educating

 

district must have the approval of that other district to count

 

those pupils in membership.

 

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

 

district means:

 

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

 

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

 

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

 

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

 

superintendent, the immediately following day on which school is in

 

session in the district or building.

 

     (b) For a district or intermediate district maintaining school

 

during the entire school year, the following days:

 

     (i) Fourth Wednesday in July.

 

     (ii) First Wednesday in October.

 

     (iii) Second Wednesday in February.

 

     (iv) Fourth Wednesday in April.

 

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

 

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

 

receiving instruction in all classes for which they are enrolled on

 

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

 


applicable. Except as otherwise provided in this subsection, a

 

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

 

enrolled on the pupil membership count day or supplemental count

 

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

 

consecutive school days immediately following the pupil membership

 

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

 

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

 

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

 

pupil membership count day or supplemental count day and who fails

 

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

 

30 calendar days after the pupil membership count day or

 

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

 

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

 

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

 

academy, or the education achievement system before the pupil

 

membership count day or supplemental count day of a particular year

 

but was expelled or suspended on the pupil membership count day or

 

supplemental count day shall only be counted as 1.0 full-time

 

equated membership if the pupil resumed attendance in the district,

 

intermediate district, public school academy, or education

 

achievement system within 45 days after the pupil membership count

 

day or supplemental count day of that particular year. Pupils not

 

counted as 1.0 full-time equated membership due to an absence from

 

a class shall be counted as a prorated membership for the classes

 

the pupil attended. For purposes of this subsection, "class" means

 

a period of time in 1 day when pupils and a certificated teacher or

 

legally qualified substitute teacher are together and instruction

 


is taking place.

 

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

 

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

 

24.328.

 

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

 

380.1852.

 

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

 

district", and "district of the first class" mean 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 to the district of residence.

 

Tuition pupil does not include a pupil who is a special education

 

pupil, or a pupil described in subsection (6)(c) to (o). (p), or a

 

pupil whose parent or guardian voluntarily enrolls the pupil in a

 

district that is not the pupil's district of residence. A pupil's

 

district of residence shall not require a high school tuition

 


pupil, as provided under section 111, to attend another school

 

district after the pupil has been assigned to a school district.

 

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

 

established in section 11 of article IX of the state constitution

 

of 1963.

 

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

 

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

 

PA 206, MCL 211.27a.

 

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

 

instructional print or electronic resource that is selected and

 

approved by the governing board of a district or, for an

 

achievement school, by the chancellor of the achievement authority

 

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

 

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

 

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

 

that forms the basis of classroom instruction.

 

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

 

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

 

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

 

article.

 

     Sec. 11. (1) Subject to subsection (3), for 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 $10,961,245,600.00

 

$10,928,614,200.00 from the state school aid fund and the sum of

 

$282,400,000.00 from the general fund. For the fiscal year ending

 

September 30, 2014, there is appropriated for the public schools of

 


this state and certain other state purposes relating to education

 

the sum of $11,211,382,300.00 from the state school aid fund, the

 

sum of $156,000,000.00 from the MPSERS retirement obligation reform

 

reserve fund created under section 147b, and the sum of

 

$230,000,000.00 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, 2013 and for the fiscal year ending September 30, 2014.

 

     (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) 296(2) and state payments in an

 

amount equal to the remainder of the projected shortfall shall be

 


prorated in the manner provided under section 11(4).296(3).

 

     (7) For 2012-2013, 2013-2014, 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 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

 

$39,500,000.00 for the fiscal year ending September 30, 2013, 2014

 

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, 2013.2015.

 

     (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 $120,390,000.00 for 2012-2013

 

$131,660,000.00 for 2013-2014 for payments to the school loan bond

 

redemption fund in the department of treasury on behalf of

 

districts and intermediate districts. Notwithstanding section 11

 

296 or any other provision of this act, funds allocated under this

 

section are not subject to proration and shall be paid in full.

 


     Sec. 11k. For 2012-2013, 2013-2014, 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 an amount not to exceed $2,100,000.00 and

 

there is allocated for 2012-2013 2013-2014 an amount not to exceed

 

$3,200,000.00 $4,000,000.00 for fiscal year cash-flow borrowing

 

costs solely related to the state school aid fund established by

 

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

 

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

 

and allocate for the fiscal year ending September 30, 2014 2015 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, 2013, 2014, as adjusted for changes in

 

pupil membership, taxable values, special education costs, interest

 

costs, and available revenue. These adjustments will be determined

 

after the January 2013 2014 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, from the proceeds of a loan to the district

 

under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

 

141.942, or from the proceeds of millage levied or pledged under

 

section 1211 of the revised school code, MCL 380.1211. State aid

 

overpayments made in special education or special education

 

transportation payments may be recovered from subsequent special

 

education or special education transportation payments, from the

 

proceeds of a loan to the district under the emergency municipal

 

loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds

 

of millage levied or pledged under section 1211 of the revised

 

school code, MCL 380.1211.

 

     (2) If the result of an audit conducted by or for the

 

department affects the current fiscal year membership, affected

 

payments shall be adjusted in the current fiscal year. A deduction

 

due to an adjustment made as a result of an audit conducted by or

 

for the department, or as a result of information obtained by the

 

department from the district, an intermediate district, the

 

department of treasury, or the office of auditor general, shall be

 

deducted from the district's apportionments when the adjustment is

 

finalized. At the request of the district and upon the district

 


presenting evidence satisfactory to the department of the hardship,

 

the department may grant up to an additional 4 years for the

 

adjustment and may advance payments to the district otherwise

 

authorized under this act article if the district would otherwise

 

experience a significant hardship in satisfying its financial

 

obligations.

 

     (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 article 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. If the district does

 

not receive an allocation for the fiscal year or if the allocation

 

is not sufficient to pay the amount of any deduction, the amount of

 

any deduction otherwise applicable shall be satisfied from the

 

proceeds of a loan to the district under the emergency municipal

 

loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds

 

of millage levied or pledged under section 1211 of the revised

 

school code, MCL 380.1211, as determined by the department.

 

     (4) 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 2012-2013 2013-

 


2014 for obligations in excess of applicable appropriations an

 

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

 

amounts available from overpayments.

 

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

 

article, each district or other entity shall apply the money

 

received by the district or entity under this article to salaries

 

and other compensation of teachers and other employees, tuition,

 

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

 

purchase of textbooks, other supplies, and any other school

 

operating expenditures defined in section 7. However, not more than

 

20% of the total amount received by a district 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.

 

     (11) Not later than October 1, 2012, September 1, 2014, if a

 

district or intermediate district offers online learning, the

 

district or intermediate district shall submit to the department a

 

report that details the per-pupil costs of operating the online

 

learning. The report shall include , on a per-pupil basis, at least

 

all of the following costs:information concerning the operation of

 

online learning for the school fiscal year ending June 30, 2014:

 

     (a) Textbooks, instructional materials, and supplies,

 

including electronic instructional material. The name of the

 

district operating the online learning and of each district that

 

enrolled students in the online learning.

 

     (b) Computer and other electronic equipment, including

 

internet and telephone access. The total number of students enrolled

 

in the online learning and the total number of membership pupils

 

enrolled in the online learning.

 

     (c) Salaries and benefits for the online learning employees.

 

For each pupil who is enrolled in a district other than the

 

district offering online learning, the name of that district.

 

     (d) Purchased courses and curricula. The district in which the

 

pupil was enrolled before enrolling in the district offering online

 

learning.

 

     (e) Fees associated with oversight and regulation. The number

 

of participating students who had previously dropped out of school.

 

     (f) Travel costs associated with school activities and

 

testing. The number of participating students who had previously

 


been expelled from school.

 

     (g) Facilities costs. The total cost to enroll a student in the

 

program. This cost shall be reported on a per-pupil, per-course,

 

per-semester or trimester basis. The total shall include costs

 

broken down by cost for training, personnel, hardware and software,

 

payment to each online learning provider, and other costs

 

associated with operating online learning.

 

     (h) Costs associated with special education. The name of each

 

online education provider contracted by the district and the state

 

in which each online education provider is headquartered.

 

     (12) Not later than December 31, 2012, the department shall

 

issue a report to the legislature including the following:

 

     (a) A review of the data submitted under subsection (11).

 

     (b) A comparison with costs of substantially similar programs

 

in other states and relevant national research on the costs of

 

online learning.

 

     (c) Any conclusions concerning factors or characteristics of

 

online learning programs that make a difference in the costs of

 

operating the programs.

 

     Sec. 18b. (1) Property of a public school academy that was

 

acquired substantially with funds appropriated under this act

 

article shall be transferred to this state by the public school

 

academy corporation if any of the following occur:

 

     (a) The public school academy has been ineligible to receive

 

funding under this act article for 18 consecutive months.

 

     (b) The public school academy's contract has been revoked or

 

terminated for any reason.

 


     (c) The public school academy's contract has expired and has

 

not been reissued by the authorizing body.

 

     (2) A public school academy corporation shall initiate the

 

process of transferring property to this state as required under

 

subsection (1) within 30 days after the occurrence of the event

 

that triggers the process under subsection (1).

 

     (3) (2) Property required to be transferred to this state

 

under this section includes title to all real and personal

 

property, interests in real or personal property, and other assets

 

owned by the public school academy corporation that were

 

substantially acquired with funds appropriated under this

 

act.article.

 

     (4) (3) The state treasurer, or his or her designee, is

 

authorized to dispose of property transferred to this state under

 

this section. Except as otherwise provided in this section, the

 

state treasurer shall deposit in the state school aid fund any

 

money included in that property and the net proceeds from the sale

 

of the property or interests in property, after payment by the

 

state treasurer of any public school academy debt secured by the

 

property or interest in property.

 

     (5) (4) This section does not impose any liability on this

 

state, any agency of this state, or an authorizing body for any

 

debt incurred by a public school academy.

 

     (6) (5) As used in this section and section 18c, "authorizing

 

body" means an authorizing body defined under section 501 or 1311b

 

of the revised school code, MCL 380.501 and 380.1311b.

 

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

 


with all applicable reporting requirements specified in state and

 

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

 

prescribed by the center, shall be aggregated and disaggregated as

 

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

 

intermediate district shall cooperate with all measures taken by

 

the center to establish and maintain a statewide P-20 longitudinal

 

data system.

 

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

 

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

 

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

 

prescribed by the center, the information necessary for the

 

preparation of the district and high school graduation report. This

 

information shall meet requirements established in the pupil

 

auditing manual approved and published by the department. The

 

center shall calculate an annual graduation and pupil dropout rate

 

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

 

with nationally recognized standards for these calculations. The

 

center shall report all graduation and dropout rates to the senate

 

and house education committees and appropriations committees, the

 

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

 

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

 

     (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 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 school

 

or district accountability designations as required by the no child

 

left behind act of 2001, Public Law 107-110, the department shall

 

allow a school or district to appeal that determination. The

 

department shall consider and act upon the appeal within 30 days

 

after it is submitted and shall not publish the list until after

 

all appeals have been considered and decided.

 

     (7) It is the intent of the legislature to implement not later

 

than 2014-2015 statewide standard reporting requirements for

 

education data approved by the department in conjunction with the

 

center. The department shall work with the center, intermediate

 

districts, districts, and other interested stakeholders to develop

 

recommendations on the implementation of this policy change. A

 

district or intermediate district shall implement the statewide

 


standard reporting requirements not later than 2014-2015 or when a

 

district or intermediate district updates its education data

 

reporting system, whichever is later.

 

     Sec. 20. (1) For 2011-2012, and for 2012-2013, 2013-2014, the

 

basic foundation allowance is $8,019.00.$8,049.00.

 

     (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 greater

 

of $6,966.00 or 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) $10.00) 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. Except as otherwise provided in subdivision (h), for

 

2012-2013, 2013-2014, for a district that had a foundation

 

allowance for the immediately preceding state fiscal year that was

 

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

 

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

 

state fiscal year in the lowest foundation allowance among all

 

districts, but less than the basic foundation allowance for the

 

immediately preceding state fiscal year, the district shall receive

 

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

 


foundation allowance for the immediately preceding state fiscal

 

year. However, the foundation allowance for a district that had

 

less than the basic foundation allowance for the immediately

 

preceding state fiscal year shall not exceed the basic foundation

 

allowance for the current state fiscal year.

 

     (b) Except as otherwise provided in this subsection, 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. For 2012-2013, 2013-2014, 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 2012-2013 in an

 

amount equal to the district's foundation allowance for the

 

immediately preceding state fiscal year.

 

     (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. For 2012-2013, 2013-2014, except as otherwise

 

provided in subdivision (d), 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 immediately

 

preceding state fiscal year.

 

     (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.

 

     (h) For 2012-2013, for a district that had a foundation

 

allowance for the 2011-2012 state fiscal year of less than

 

$6,966.00, the district's foundation allowance is an amount equal

 

to $6,966.00.

 

     (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. For a pupil enrolled pursuant to section 105 or 105c

 

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

 


allocation calculated under this section shall be based on the

 

lesser of the foundation allowance of the pupil's district of

 

residence or the foundation allowance of the educating district.

 

For a pupil in membership in a K-5, K-6, or K-8 district who is

 

enrolled in another district in a grade not offered by the pupil's

 

district of residence, the allocation calculated under this section

 

shall be based on the foundation allowance of the educating

 

district if the educating district's foundation allowance is

 

greater than the foundation allowance of the pupil's district of

 

residence.

 

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

 

pupils in membership, other than special education pupils, in a

 

public school academy, the allocation calculated under this section

 

is an amount per membership pupil other than special education

 

pupils in the public school academy equal to the foundation

 

allowance of the district in which the public school academy is

 

located or the state maximum public school academy allocation,

 

whichever is less. However, a public school academy that had an

 

allocation under this subsection before 2009-2010 that was equal to

 

the sum of the local school operating revenue per membership pupil

 

other than special education pupils for the district in which the

 

public school academy is located and the state portion of that

 

district's foundation allowance shall not have that allocation

 

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

 

Notwithstanding section 101, for a public school academy that

 

begins operations after the pupil membership count day, the amount

 

per membership pupil calculated under this subsection shall be

 


adjusted by multiplying that amount per membership pupil by the

 

number of hours of pupil instruction provided by the public school

 

academy after it begins operations, as determined by the

 

department, divided by the minimum number of hours of pupil

 

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

 

calculation shall not exceed the amount per membership pupil

 

otherwise calculated under this subsection.

 

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

 

pupils attending an achievement school and in membership in the

 

education achievement system, other than special education pupils,

 

the allocation calculated under this section is an amount per

 

membership pupil other than special education pupils equal to the

 

foundation allowance of the district in which the achievement

 

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

 

Notwithstanding section 101, for an achievement school that begins

 

operation after the pupil membership count day, the amount per

 

membership pupil calculated under this subsection shall be adjusted

 

by multiplying that amount per membership pupil by the number of

 

hours of pupil instruction provided by the achievement school after

 

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

 

the minimum number of hours of pupil instruction required under

 

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

 

amount per membership pupil otherwise calculated under this

 

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

 

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

 

district or the achievement authority under section 1280c of the

 

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

 


achievement school within the education achievement system and not

 

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

 

public school is considered to be in membership in the education

 

achievement system and not in membership in the district that

 

operated the school before the transfer.

 

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

 

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

 

districts or by annexation, the resulting district's foundation

 

allowance under this section beginning after the effective date of

 

the consolidation or annexation shall be lesser of the sum of the

 

average of the foundation allowances of each of the original or

 

affected districts, calculated as provided in this section,

 

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

 

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

 

original or affected districts plus $100.00 or the highest

 

foundation allowance among the original or affected districts.

 

     (9) Each fraction used in making calculations under this

 

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

 

amount of an increase in the basic foundation allowance shall be

 

rounded to the nearest whole dollar.

 

     (10) State payments related to payment of the foundation

 

allowance for a special education pupil are not calculated under

 

this section but are instead calculated under section 51a.

 

     (11) To assist the legislature in determining the basic

 

foundation allowance for the subsequent state fiscal year, each

 

revenue estimating conference conducted under section 367b of the

 

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

 


calculate a pupil membership factor, a revenue adjustment factor,

 

and an index as follows:

 

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

 

the estimated membership in the school year ending in the current

 

state fiscal year, excluding intermediate district membership, by

 

the estimated membership for the school year ending in the

 

subsequent state fiscal year, excluding intermediate district

 

membership. If a consensus membership factor is not determined at

 

the revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

     (b) The revenue adjustment factor shall be computed by

 

dividing the sum of the estimated total state school aid fund

 

revenue for the subsequent state fiscal year plus the estimated

 

total state school aid fund revenue for the current state fiscal

 

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

 

proceeds of which are deposited in that fund and excluding money

 

transferred into that fund from the countercyclical budget and

 

economic stabilization fund under the management and budget act,

 

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

 

total school aid fund revenue for the current state fiscal year

 

plus the estimated total state school aid fund revenue for the

 

immediately preceding state fiscal year, adjusted for any change in

 

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

 

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

 

revenue estimating conference, the principals of the revenue

 


estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

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

 

membership factor by the revenue adjustment factor. However, for

 

2011-2012, the index shall be 0.93575 and for 2012-2013, the index

 

shall be 1.00. If a consensus index is not determined at the

 

revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

     (12) For a district in which 7.75 mills levied in 1992 for

 

school operating purposes in the 1992-93 school year were not

 

renewed in 1993 for school operating purposes in the 1993-94 school

 

year, the district's combined state and local revenue per

 

membership pupil shall be recalculated as if that millage reduction

 

did not occur and the district's foundation allowance shall be

 

calculated as if its 1994-95 foundation allowance had been

 

calculated using that recalculated 1993-94 combined state and local

 

revenue per membership pupil as a base. A district is not entitled

 

to any retroactive payments for fiscal years before 2000-2001 due

 

to this subsection. A district receiving an adjustment under this

 

subsection shall not receive as a result of this adjustment an

 

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

 

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

 

be made after 2011-2012.

 

     (13) 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.

 

     (12) (14) 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. All of the following apply to districts

 

receiving a foundation allowance adjustment under this subsection:

 

     (a) Except as otherwise provided in this subsection,

 

subdivision, 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. For

 

an individual school or schools operated by a district qualifying

 

for a foundation allowance adjustment 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. subdivision. 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.

 

     (b) 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.

 


     (c) Notwithstanding subsection (8), for a district that is

 

formed or reconfigured by consolidation of 2 or more districts, 1

 

of which received an adjustment under this subsection for 2012-

 

2013, the resulting district's foundation allowance for 2013-2014

 

and each succeeding fiscal year shall be adjusted to be an amount

 

equal to the sum of the resulting district's foundation allowance

 

as calculated under subsection (8) excluding any adjustment

 

calculated under this subsection plus [(the original district's

 

adjustment under this subsection in 2012-2013 times the number of

 

pupils in the original district's membership for 2012-2013) divided

 

by the number of pupils in the resulting district's membership for

 

2013-2014].

 

     (d) Beginning in 2013-2014, for a district that received an

 

adjustment for the immediately preceding fiscal year and that had a

 

foundation allowance as adjusted by this subsection for the

 

immediately preceding fiscal year equal to $6,966.00, the district

 

shall not receive an adjustment under this section for the current

 

fiscal year.

 

     (15) 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.

 

     (16) 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.

 

     (13) (17) Payments to districts, public school academies, or

 

the education achievement system shall not be made under this

 

section. Rather, the calculations under this section shall be used

 

to determine the amount of state payments under section 22b.

 

     (14) (18) 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.

 

     (15) (19) 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)

 

$10.00) times (the difference between the highest per-pupil

 

allocation among all public school academies for the immediately

 

preceding state fiscal year and the 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 and 2012-2013,

 

maximum public school academy allocation means $7,110.00.

 

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

 

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

 

particular calculation is made.

 

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

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, or commercial personal property.

 

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

 

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

 

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

 

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

 

code, MCL 380.1211.

 

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

 

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

 


18.

 

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

 

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

 

380.1211, and retained for school operating purposes.

 

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

 

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

 

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

 

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

 

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

 

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

 

125.2871 to 125.2899.

 

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

 

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

 

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

 

membership excluding special education pupils for the school year

 

ending in the current state fiscal year.

 

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

 

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

 

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

 

section 20 for 2012-2013, 2013-2014, the department and the

 

department of treasury shall comply with all of the following:

 

     (a) For a district that had combined state and local revenue

 

per membership pupil in the 1994-95 state fiscal year of $6,500.00

 

or more and served as a fiscal agent for a state board designated

 

area vocational education center in the 1993-94 school year, total

 

state school aid received by or paid on behalf of the district

 

pursuant to this act in 1993-94 shall exclude payments made under

 


former section 146 and under section 147 on behalf of the

 

district's employees who provided direct services to the area

 

vocational education center. Not later than June 30, 1996, the

 

department shall make an adjustment under this subdivision to the

 

district's combined state and local revenue per membership pupil in

 

the 1994-95 state fiscal year and the department of treasury shall

 

make a final certification of the number of mills that may be

 

levied by the district under section 1211 of the revised school

 

code, MCL 380.1211, as a result of the adjustment under this

 

subdivision.

 

     (b) If a district had an adjustment made to its 1993-94 total

 

state school aid that excluded payments made under former section

 

146 and under section 147 on behalf of the district's employees who

 

provided direct services for intermediate district center programs

 

operated by the district under article 5, if nonresident pupils

 

attending the center programs were included in the district's

 

membership for purposes of calculating the combined state and local

 

revenue per membership pupil for 1993-94, and if there is a signed

 

agreement by all constituent districts of the intermediate district

 

that an adjustment under this subdivision shall be made, the

 

foundation allowances for 1995-96 and 1996-97 of all districts that

 

had pupils attending the intermediate district center program

 

operated by the district that had the adjustment shall be

 

calculated as if their combined state and local revenue per

 

membership pupil for 1993-94 included resident pupils attending the

 

center program and excluded nonresident pupils attending the center

 

program.

 


     Sec. 20f. (1) From the funds appropriated in section 11, there

 

is allocated an amount not to exceed $6,000,000.00 for 2013-2014

 

for payments to eligible districts under this section. A district

 

is eligible for funding under this section if the sum of the

 

following is less than $5.00:

 

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

 

pupil payment as calculated under section 20 from 2012-2013 to

 

2013-2014.

 

     (b) The district's equity payment per membership pupil under

 

section 22c.

 

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

 

147a for 2012-2013 divided by the district's membership pupils for

 

2012-2013 minus the quotient of the district's allocation under

 

section 147a for 2013-2014 divided by the district's membership

 

pupils for 2013-2014.

 

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

 

section is an amount per membership pupil equal to $5.00 minus the

 

sum of the following:

 

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

 

pupil payment as calculated under section 20 from 2012-2013 to

 

2013-2014.

 

     (b) The district's equity payment per membership pupil under

 

section 22c.

 

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

 

147a for 2012-2013 divided by the district's membership pupils for

 

2012-2013 minus the quotient of the district's allocation under

 

section 147a for 2013-2014 divided by the district's membership

 


pupils for 2013-2014.

 

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

 

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

 

in this section. However, this section does not apply to a pupil

 

enrolled in a school of excellence that is a cyber school, as

 

defined in section 551 of the revised school code, MCL 380.551.

 

     (2) With the consent of the pupil's parent or legal guardian,

 

a district shall enroll an eligible pupil in up to 2 online courses

 

as requested by the pupil during an academic term, semester, or

 

trimester. It is the intent of the legislature to consider

 

increasing the limit on the number of online courses that a pupil

 

may enroll in beginning in 2014-2015 for pupils who have

 

demonstrated previous success with online courses. Consent of the

 

pupil's parent or legal guardian is not required if the pupil is at

 

least age 18 or is an emancipated minor.

 

     (3) An eligible pupil may enroll in an online course published

 

in the pupil's educating district's catalog of online courses

 

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

 

courses maintained by the Michigan virtual university pursuant to

 

section 98.

 

     (4) A district shall determine whether or not it has capacity

 

to accept applications for enrollment from nonresident applicants

 

in online courses and may use that limit as the reason for refusal

 

to enroll an applicant. If the number of nonresident applicants

 

eligible for acceptance in an online course does not exceed the

 

capacity of the district to provide the online course, the district

 

shall accept for enrollment all of the nonresident applicants

 


eligible for acceptance. If the number of nonresident applicants

 

exceeds the district's capacity to provide the online course, the

 

district shall use a random draw system, subject to the need to

 

abide by state and federal antidiscrimination laws and court

 

orders.

 

     (5) A district may deny a pupil enrollment in an online course

 

if any of the following apply, as determined by the district:

 

     (a) The pupil has previously gained the credits provided from

 

the completion of the online course.

 

     (b) The online course is not capable of generating academic

 

credit.

 

     (c) The online course is inconsistent with the remaining

 

graduation requirements or career interests of the pupil.

 

     (d) The pupil does not possess the prerequisite knowledge and

 

skills to be successful in the online course or has demonstrated

 

failure in previous online coursework in the same subject.

 

     (e) The online course is of insufficient quality or rigor. A

 

district that denies a pupil enrollment for this reason shall make

 

a reasonable effort to assist the pupil to find an alternative

 

course in the same or a similar subject that is of acceptable rigor

 

and quality.

 

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

 

district, the pupil may appeal the denial by submitting a letter to

 

the superintendent of the intermediate district in which the

 

pupil's educating district is located. The letter of appeal shall

 

include the reason provided by the district for not enrolling the

 

pupil and the reason why the pupil is claiming that the enrollment

 


should be approved. The intermediate district superintendent or

 

designee shall respond to the appeal within 5 days after it is

 

received. If the intermediate district superintendent or designee

 

determines that the denial of enrollment does not meet 1 or more of

 

the reasons specified in subsection (5), the district shall allow

 

the pupil to enroll in the online course.

 

     (7) To offer or provide an online course, a district shall do

 

all of the following:

 

     (a) Provide the Michigan virtual university with the course

 

syllabus in a form and method prescribed by the department for

 

inclusion in a statewide online course catalog. The district shall

 

also provide on its publicly accessible website a link to the

 

course syllabi for all of the online courses offered by the

 

district and a link to the statewide catalog of online courses

 

maintained by the Michigan virtual university.

 

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

 

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

 

format.

 

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

 

in the pupil's educating district's catalog of online courses under

 

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

 

maintained by the Michigan virtual university, the district shall

 

use foundation allowance or per pupil funds calculated under

 

section 20 to pay for the expenses associated with the online

 

course or courses. The district shall pay 80% of the cost of the

 

online course upon enrollment and 20% upon completion as determined

 

by the district. A district is not required to pay toward the cost

 


of an online course an amount that exceeds 1/12 of the district's

 

foundation allowance or per pupil payment as calculated under

 

section 20 per semester or an amount that exceeds 1/18 of the

 

district's foundation allowance or per pupil payment as calculated

 

under section 20 per trimester.

 

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

 

access to technology in his or her educating district's school

 

facilities as all other pupils enrolled in the educating district.

 

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

 

determined by the district, the pupil's district shall grant

 

appropriate academic credit for completion of the course and shall

 

count that credit toward completion of graduation and subject area

 

requirements. A pupil's school record and transcript shall identify

 

the online course title as it appears in the online course

 

syllabus.

 

     (11) The enrollment of a pupil in 1 or more online courses

 

shall not result in a pupil being counted as more than 1.0 full-

 

time equivalent pupils under this act.

 

     (12) As used in this section:

 

     (a) "Online course" means a course of study that is capable of

 

generating a credit or a grade, that is provided in an interactive

 

internet-connected learning environment, in which pupils are

 

separated from their teachers by time or location, or both, and in

 

which a teacher who holds a valid Michigan teaching certificate is

 

responsible for determining appropriate instructional methods for

 

each pupil, diagnosing learning needs, assessing pupil learning,

 

prescribing intervention strategies, reporting outcomes, and

 


evaluating the effects of instruction and support strategies.

 

     (b) "Online course syllabus" means a document that includes

 

all of the following:

 

     (i) The state academic standards addressed in an online course.

 

     (ii) The online course content outline.

 

     (iii) The online course required assessments.

 

     (iv) The online course prerequisites.

 

     (v) Expectations for actual instructor contact time with the

 

online learning pupil and other pupil-to-instructor communications.

 

     (vi) Academic support available to the online learning pupil.

 

     (vii) The online course learning outcomes and objectives.

 

     (viii) The name of the institution or organization providing the

 

online content.

 

     (ix) The name of the institution or organization providing the

 

online instructor.

 

     (x) The course titles assigned by the district and the course

 

titles and course codes from the national center for education

 

statistics (NCES) school codes for the exchange of data (SCED).

 

     (xi) The number of eligible nonresident pupils that will be

 

accepted by the district in the online course.

 

     (xii) The results of the online course quality review using the

 

guidelines and model review process published by the Michigan

 

virtual university.

 

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

 

more online courses.

 

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

 

allocated an amount not to exceed $5,776,000,000.00 for 2011-2012

 


and there is allocated an amount not to exceed $5,712,000,000.00

 

for 2012-2013 $5,630,000,000.00 for 2012-2013 and there is

 

allocated an amount not to exceed $5,534,000,000.00 for 2013-2014

 

for payments to districts and qualifying public school academies to

 

guarantee each district and qualifying public school academy an

 

amount equal to its 1994-95 total state and local per pupil revenue

 

for school operating purposes under section 11 of article IX of the

 

state constitution of 1963. Pursuant to section 11 of article IX of

 

the state constitution of 1963, this guarantee does not apply to a

 

district in a year in which the district levies a millage rate for

 

school district operating purposes less than it levied in 1994.

 

However, subsection (2) applies to calculating the payments under

 

this section. Funds allocated under this section that are not

 

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

 

determined by the department, may be used to supplement the

 

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

 

calculated allocations for the same fiscal year.

 

     (2) To ensure that a district receives an amount equal to the

 

district's 1994-95 total state and local per pupil revenue for

 

school operating purposes, there is allocated to each district a

 

state portion of the district's 1994-95 foundation allowance in an

 

amount calculated as follows:

 

     (a) Except as otherwise provided in this subsection, the state

 

portion of a district's 1994-95 foundation allowance is an amount

 

equal to the district's 1994-95 foundation allowance or $6,500.00,

 

whichever is less, minus the difference between the sum of the

 

product of the taxable value per membership pupil of all property

 


in the district that is nonexempt property times the district's

 

certified mills and, for a district with certified mills exceeding

 

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

 

property in the district that is commercial personal property times

 

the certified mills minus 12 mills and the quotient of the ad

 

valorem property tax revenue of the district captured under tax

 

increment financing acts divided by the district's membership. For

 

a district that has a millage reduction required under section 31

 

of article IX of the state constitution of 1963, the state portion

 

of the district's foundation allowance shall be calculated as if

 

that reduction did not occur.

 

     (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, there is allocated under this

 

section to the authorizing body that is the fiscal agent for the

 

qualifying public school academy for forwarding to the qualifying

 

public school academy an amount equal to the 1994-95 per pupil

 

payment to the qualifying public school academy under section 20.

 

     (4) A district or qualifying public school academy may use

 

funds allocated under this section in conjunction with any federal

 

funds for which the district or qualifying public school academy

 

otherwise would be eligible.

 

     (5) 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).

 

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

 

following divided by the district's membership:

 

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

 

levy of school operating taxes on a homestead, qualified

 

agricultural property, qualified forest property, supportive

 

housing property, industrial personal property, and commercial

 

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

 

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

 

qualified agricultural property, qualified forest property,

 

supportive housing property, industrial personal property, and

 

commercial personal property for the calendar year ending in the

 

current state fiscal year.

 

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

 

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

 

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

 

property for the calendar year ending in the current state fiscal

 

year.

 

     Sec. 22b. (1) From the state funds appropriated appropriation

 


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 $3,152,300,000.00 $3,215,000,000.00 for 2012-

 

2013 and there is allocated an amount not to exceed

 

$3,373,700,000.00 for 2013-2014 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.Comply with section 1280b of the revised

 

school code, MCL 380.1280b.

 


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

 

code, MCL 380.1278a and 380.1278b.

 

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

 

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

 

specified by the center or the department, as applicable.

 

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

 

380.1230g.

 

     (e) Comply with section 21f.

 

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

 

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

 

and other business function software that is compatible with that

 

of the intermediate district in which the district is located and

 

with other districts located within that intermediate district.

 

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

 

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

 

state related to commercial or industrial property tax appeals,

 

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

 

impact revenues dedicated to the state school aid fund.

 

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

 

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

 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be

 

made in full before any proration of remaining payments under this

 

section.

 

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

 


constitutional obligations of this state have been fully funded

 

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

 

an entity receiving funds under this article that challenges the

 

legislative determination of the adequacy of this funding or

 

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 

discretionary funds for nonmandated payments under this section the

 

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

 

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

 

the escrowed funds are a work project appropriation and the funds

 

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

 

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

 

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

 

completed upon resolution of the litigation.

 

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

 

jurisdiction makes a final determination that this state is in

 

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

 

1963 regarding state payments to districts, the state budget

 

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

 

allocate from the discretionary funds for nonmandated payments

 

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

 

amount owed to districts before making any payments to districts

 

under subsection (2).

 

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

 

legislative determination of the adequacy of funding for this

 

state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 


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

 

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

 

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

 

and shall exercise jurisdiction over the claim.

 

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

 

local claims review board or a court of competent jurisdiction that

 

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

 

constitution of 1963 exceed the amount allocated for discretionary

 

nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional

 

obligations at its next legislative session.

 

     (11) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX medicaid funds is

 

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

 

potential liability under such a lawsuit, the state budget director

 

may place funds allocated under this section in escrow or allocate

 

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

 

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

 

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

 

work project appropriation and the funds are carried forward into

 

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

 

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

 

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

 

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

 

right to terminate future federal title XIX medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

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

 


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

 

to 1396v.

 

     (12) Not later than January 1, 2013, the department shall

 

submit a report to the legislature identifying the amount of the

 

savings that the department has calculated as having been achieved

 

due to the revised number of instructional hours used to calculate

 

full-time equated memberships for kindergarten pupils under section

 

6(4)(r) as amended by 2011 PA 62.

 

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

 

allocated for 2013-2014 an amount not to exceed $36,000,000.00 to

 

make equity payments to districts that have a foundation allowance

 

or per pupil payment as calculated under section 20 for 2013-2014

 

of less than $7,076.00. The equity payment for a district shall be

 

an amount per membership pupil equal to the lesser of $50.00 or the

 

difference between $7,076.00 and the district's 2013-2014

 

foundation allowance or per pupil payment as calculated under

 

section 20.

 

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

 

not to exceed $2,025,000.00 $2,584,600.00 is allocated each fiscal

 

year for 2011-2012 and for 2012-2013 for 2013-2014 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 for

 

2013-2014 an amount not to exceed $750,000.00 $957,300.00 for

 

payments under this subsection to districts that meet all of the

 

following:

 

     (a) Operates grades K to 12.

 


     (b) Has fewer than 250 pupils in membership.

 

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

 

least 1 of the following:

 

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

 

any other public school building.

 

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

 

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

 

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

 

plan developed as provided in this subsection and approved by the

 

superintendent of public instruction. The spending plan shall be

 

developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The

 

intermediate superintendents shall review the financial situation

 

of each eligible district, determine the minimum essential

 

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

 

a spending plan that distributes the available funding under

 

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

 

needs. The intermediate superintendents shall submit the spending

 

plan to the superintendent of public instruction for approval. Upon

 

approval by the superintendent of public instruction, the amounts

 

specified for each eligible district under the spending plan are

 

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

 

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

 

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

 

subsection (1), there is allocated each fiscal year for 2011-2012

 

and for 2012-2013 for 2013-2014 an amount not to exceed

 

$1,275,000.00 $1,627,300.00 for payments under this subsection to

 


districts that meet all of the following:

 

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

 

determined by the department.

 

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

 

or is 1 of 2 districts that have consolidated transportation

 

services and have a combined total square mileage greater than

 

200.0.

 

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

 

allocated on an equal per pupil basis.

 

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

 

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

 

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

 

allocated for 2012-2013 2013-2014 an amount not to exceed

 

$80,000,000.00 to provide incentive payments to districts that meet

 

best practices under this section. Payments received under this

 

section may be used for any purpose for which payments under

 

sections 22a and 22b may be used.

 

     (2) The amount of the incentive payment under this section is

 

an amount equal to $52.00 per pupil. A district shall receive an

 

incentive payment under this section if the district satisfies at

 

least 7 of the following requirements not later than June 1,

 

2013:2014:

 

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

 

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

 

constitute a health care services benefit, to employees and their

 

dependents, the district is the policyholder for each of its

 

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

 


district that does not directly employ its staff or a district with

 

a voluntary employee beneficiary association that pays no more than

 

the maximum per employee contribution amount and that contributes

 

no more than the maximum employer contribution percentage of total

 

annual costs for the medical benefit plans as described in sections

 

3 and 4 of the publicly funded health insurance contribution act,

 

2011 PA 152, MCL 15.563 and 15.564, is considered to have satisfied

 

this requirement.

 

     (b) The district has obtained competitive bids on the

 

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

 

more other noninstructional services for 2012-2013.2013-2014. In

 

comparing competitive bids to the current costs of providing 1 or

 

more of these services, a district shall exclude the unfunded

 

accrued liability costs for retirement and other benefits from the

 

district's current costs.

 

     (c) The district accepts applications for enrollment by

 

nonresident applicants under section 105 or 105c. A public school

 

academy is considered to have met this requirement.

 

     (d) The district monitors individual pupil academic growth in

 

each subject area at least twice during the school year using

 

competency-based online assessments and reports those results to

 

the pupil and his or her parent or guardian, or provides the

 

department with a plan and is able to show progress toward

 

developing the technology infrastructure necessary for the

 

implementation of pupil academic growth assessments by 2014-2015.

 

     (e) The district supports opportunities for pupils to receive

 

postsecondary credit while attending secondary school, by doing at

 


least 1 of the following, and makes all eligible pupils and their

 

parents or guardians aware of these opportunities:

 

     (i) Supports attendance of district pupils under the

 

postsecondary enrollment options act, MCL 388.511 to 388.524, or

 

under the career and technical preparation act, MCL 388.1901 to

 

388.1913, consistent with provisions under section 21b.

 

     (ii) Offers college-level equivalent courses, as defined in

 

section 1471 of the revised school code, MCL 380.1471.

 

     (iii) Participates in a middle college. For the purposes of this

 

subparagraph, "middle college" means a series of courses and other

 

requirements and conditions that allow a pupil to graduate with a

 

high school diploma and a certificate or degree from a community

 

college or state public university.

 

     (iv) Provides other opportunities to pupils that allow those

 

pupils to graduate with a high school diploma and also complete

 

coursework that a postsecondary institution normally applies toward

 

satisfaction of degree requirements.

 

     (v) If a district does not offer any high school grades, the

 

district informs all pupils and parents of the opportunities that

 

are available for postsecondary options during high school.

 

     (f) The district offers online instructional programs courses

 

or blended learning opportunities to all eligible pupils. In order

 

to satisfy this requirement, districts must a district must make

 

all eligible pupils and their parents or guardians aware of these

 

opportunities and must publish an online course syllabus as

 

described in section 21f for each online course that the district

 

offers. For the purposes of this subdivision:

 


     (i) "Blended learning" means a hybrid instructional delivery

 

model where pupils are provided face-to-face content, instruction,

 

and assessment in part at a supervised school educational facility

 

away from home where the pupil and a teacher with a valid Michigan

 

teaching certificate are in the same physical location and

 

partially in part through computer-based and internet-connected

 

learning environments with some degree of pupil control over time,

 

location, and pace of instruction.

 

     (ii) "Online instructional program" course" means a course of

 

study that generates is capable of generating a credit or a grade,

 

that is provided in an interactive computer-based and internet-

 

connected learning environment, in which pupils are separated from

 

their teachers by time or location, or both, and in which a

 

Michigan certificated teacher with a valid Michigan teaching

 

certificate is responsible for providing direct instruction,

 

determining appropriate instructional methods for each pupil,

 

diagnosing learning needs, assessing pupil learning, prescribing

 

intervention strategies, reporting outcomes, and evaluating the

 

effects of instruction and support strategies.

 

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

 

dashboard or report card demonstrating the district's efforts to

 

manage its finances responsibly. The dashboard or report card shall

 

include revenue and expenditure projections for the district for

 

fiscal year 2013-2014 and fiscal year 2014-2015, a listing of all

 

debt service obligations, detailed by project, including

 

anticipated fiscal year 2013-2014 payment for each project, a

 

listing of total outstanding debt, and at least all of the

 


following for the 3 most recent school years for which the data are

 

available:

 

     (i) Graduation and dropout rates.

 

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

 

     (iii) College readiness as measured by Michigan merit

 

examination test scores.

 

     (iv) Elementary and middle school MEAP scores.

 

     (v) Teacher, principal, and superintendent salary information

 

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

 

     (vi) General fund balance.

 

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

 

     (h) The district provides physical education consistent with

 

the state board's policy on quality physical education adopted

 

September 25, 2003, or provides health education. consistent with

 

the state board's policy on comprehensive school health education

 

adopted June 8, 2004.

 

     (3) If the department determines that a district has

 

intentionally submitted false information in order to qualify for

 

an incentive payment under this section, the district forfeits an

 

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

 

total state school aid for 2013-2014.2014-2015.

 

     (4) If the department determines that funds allocated under

 

this section will remain unexpended after the initial allocation of

 

$52.00 per pupil to eligible districts under subsection (2), the

 

remaining unexpended amount is allocated on an equal per pupil

 

basis to districts that meet the requirements of subsection (2) and

 

that have a foundation allowance, as calculated under section 20,

 


in an amount that is less than the basic foundation allowance under

 

that section.

 

     Sec. 22g. (1) From the funds appropriated in section 11, there

 

is allocated for 2012-2013 2013-2014 only an amount not to exceed

 

$10,000,000.00 $5,000,000.00 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, intermediate

 

districts, or other local units of government or the consolidation

 

of districts or intermediate districts. Grant funding shall be

 

available for consolidations that occur on or after June 1, 2012.

 

2013. The department shall develop an application process and

 

method of grant distribution. However, a district or intermediate

 

district is not eligible to receive funding under this section if

 

the district or intermediate district receives a grant from the

 

competitive grant assistance program in the department of treasury

 

appropriations for 2012-2013 under section 951 of article VIII of

 

Enrolled House Bill No. 5365 of the 96th Legislature.

 

     Sec. 22i. (1) From the funds state school aid fund money

 

appropriated in section 11, there is allocated for 2012-2013 2013-

 

2014 an amount not to exceed $50,000,000.00 $45,000,000.00 for the

 

technology infrastructure grants to grant program for districts or

 

to intermediate districts on behalf of their constituent districts.

 

Funds received under this section subsection shall be used for

 


access to a computer-adaptive test or for the development or

 

improvement of a district's technology infrastructure, including,

 

but not limited to, hardware and software, the shared services

 

consolidation of technology and data, and hardware in preparation

 

for the planned implementation in 2014-2015 of online growth

 

assessments.

 

     (2) The department shall develop a competitive application

 

process and method of grant distribution to eligible districts and

 

intermediate districts that demonstrate need for grants under

 

subsection (1). The department may consult with the department of

 

technology, management, and budget during the grant process and

 

grant distribution. Grants to districts shall not exceed

 

$2,000,000.00 per district. A grant to an intermediate district on

 

behalf of its constituent districts shall not exceed $2,000,000.00

 

per constituent district. To receive a grant under this section,

 

subsection (1), an intermediate district shall demonstrate that a

 

grant awarded to the intermediate district on behalf of its

 

constituent districts would provide savings compared to providing

 

grants to individual districts.

 

     (3) From the general fund money appropriated in section 11,

 

there is allocated an amount not to exceed $5,000,000.00 for 2013-

 

2014 to be awarded through a competitive bid process to a single

 

provider of whole-school technology as described in this

 

subsection. The department shall issue a single request for

 

proposal with application rules written and administered by the

 

department, and with a focus on economic and geographic diversity.

 

To be eligible to receive the grant under this section, a provider

 


shall meet all of the following:

 

     (a) Agrees to submit evaluation criteria in a form and manner

 

determined by the department.

 

     (b) Provides at least all of the following:

 

     (i) One-to-one mobile devices.

 

     (ii) Laptop or desktop computers for each classroom.

 

     (iii) On- and off-campus filtering.

 

     (iv) Wireless networks and peripherals.

 

     (v) Wireless audio equipment.

 

     (vi) Operating software.

 

     (vii) Instructional software.

 

     (viii) Repairs and replacements.

 

     (ix) Professional development.

 

     (x) Ongoing support.

 

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

 

allocated for 2012-2013 2013-2014 an amount not to exceed

 

$30,000,000.00 $46,400,000.00 to provide separate incentive

 

payments to districts that meet student academic performance

 

funding goals under subsections (2) to (5). Payments received under

 

this section may be used for any purpose for which payments under

 

sections 22a and 22b may be used.

 

     (2) The maximum amount of the incentive payment for student

 

academic performance is an amount equal to $100.00 per pupil.

 

Payments calculated and awarded to qualifying districts under

 

subsections (3) to (5) shall be calculated and awarded separately,

 

and a district may receive a payment under any or all of

 

subsections (3) to (5).

 


     (3) An amount not to exceed 30% of the maximum per pupil

 

amount allocated under subsection (2) shall be used to make

 

performance incentive payments to qualifying districts under this

 

subsection based on pupil performance on state assessments in

 

mathematics in grades 3 to 8. The amount of a payment under this

 

subsection is an amount equal to $30.00 per pupil for all pupils in

 

membership in a qualifying district. The department shall determine

 

the qualifying districts under this subsection as follows:

 

     (a) Using a model determined by the department that

 

incorporates the most recent cut scores adopted for the Michigan

 

educational assessment program for each pupil in grades 3 to 8 in

 

the 2010-2011 2011-2012 school year, the department shall calculate

 

a point score using a metric that assigns points to each of those

 

pupils as follows:

 

     (i) For each pupil who began the school year not performing

 

proficiently in mathematics and who declines in proficiency, as

 

determined by the department, over the school year, 0 points.

 

     (ii) For each pupil who began the school year performing

 

proficiently in mathematics and declines in proficiency, as

 

determined by the department, over the school year, 0 points.

 

     (iii) For each pupil who began the school year not performing

 

proficiently in mathematics and who maintains his or her level of

 

proficiency, as determined by the department, over the school year,

 

1 point.

 

     (iv) For each pupil who began the school year performing

 

proficiently in mathematics and who maintains his or her level of

 

proficiency, as determined by the department, over the school year,

 


2 points.

 

     (v) For each pupil who began the school year not performing

 

proficiently in mathematics and who improves in proficiency, as

 

determined by the department, over the school year, 3 points.

 

     (vi) For each pupil who began the school year performing

 

proficiently in mathematics and who improves in proficiency, as

 

determined by the department, over the school year, 2 points.

 

     (b) The department shall then calculate a district average for

 

this metric for the 2010-2011 2011-2012 school year by totaling the

 

number of points for all pupils in grades 3 to 8 under subdivision

 

(a) and dividing that total by the number of those pupils.

 

     (c) A district is a qualifying district for the payment under

 

this subsection if the district average for the 2010-2011 2011-2012

 

school year under subdivision (b) is at least equal to a factor of

 

1.5, and the district tested at least 95% of its pupils in

 

mathematics, and the district had at least 30 full academic year

 

pupils in grades 3 to 8 with a performance level change designation

 

in mathematics.

 

     (4) An amount not to exceed 30% of the maximum per pupil

 

amount allocated under subsection (2) shall be used to make

 

performance incentive payments to qualifying districts under this

 

subsection based on pupil performance on state assessments in

 

reading in grades 3 to 8. The amount of a payment under this

 

subsection is an amount equal to $30.00 per pupil for all pupils in

 

membership in the district. The department shall determine the

 

qualifying districts under this subsection as follows:

 

     (a) Using a model determined by the department that

 


incorporates the most recent cut scores adopted for the Michigan

 

educational assessment program for each pupil in grades 3 to 8 in

 

the 2010-2011 2011-2012 school year, the department shall calculate

 

a point score using a metric that assigns points to each of those

 

pupils as follows:

 

     (i) For each pupil who began the school year not performing

 

proficiently in reading and who declines in proficiency, as

 

determined by the department, over the school year, 0 points.

 

     (ii) For each pupil who began the school year performing

 

proficiently in reading and declines in proficiency, as determined

 

by the department, over the school year, 0 points.

 

     (iii) For each pupil who began the school year not performing

 

proficiently in reading and who maintains proficiency, as

 

determined by the department, over the school year, 1 point.

 

     (iv) For each pupil who began the school year performing

 

proficiently in reading and who maintains proficiency, as

 

determined by the department, over the school year, 2 points.

 

     (v) For each pupil who began the school year not performing

 

proficiently in reading and who improves in proficiency, as

 

determined by the department, over the school year, 3 points.

 

     (vi) For each pupil who began the school year performing

 

proficiently in reading and who improves in proficiency, as

 

determined by the department, over the school year, 2 points.

 

     (b) The department shall then calculate a district average for

 

this metric for the 2010-2011 2011-2012 school year by totaling the

 

number of points for all pupils in grades 3 to 8 under subdivision

 

(a) and dividing that total by the number of those pupils.

 


     (c) A district is a qualifying district for the payment under

 

this subsection if the district average for the 2010-2011 2011-2012

 

school year under subdivision (b) is at least equal to a factor of

 

1.5, and the district tested at least 95% of its pupils in reading,

 

and the district had at least 30 full academic year pupils in

 

grades 3 to 8 reading with a performance level change designation

 

in reading.

 

     (5) An amount not to exceed 40% of the maximum per pupil

 

amount allocated under subsection (2) shall be used to make

 

performance incentive payments to qualifying districts under this

 

subsection for high school improvement using a metric based on the

 

positive trend over a 4-year period in the percentage of high

 

school pupils in the district testing as proficient in all tested

 

subject areas on the state assessments of high school pupils. The

 

amount of a payment under this subsection is an amount equal to

 

$40.00 per pupil for all pupils in membership in the district. The

 

department shall determine the qualifying districts under this

 

subsection as follows:

 

     (a) Calculate a linear regression of the percentage of high

 

school pupils in the district testing as proficient in all tested

 

subject areas on state assessments of high school pupils on school

 

year over the 4-year period ending with the 2010-2011 2011-2012

 

school year as adjusted for changes in cut scores most recently

 

adopted for the Michigan merit examination.

 

     (b) Calculate a statewide average for all districts operating

 

a high school of the linear regression of the percentage of high

 

school pupils testing as proficient in all tested subject areas on

 


state assessments of high school pupils on school year over the 4-

 

year period ending with the 2010-2011 2011-2012 school year, as

 

adjusted for changes in cut scores most recently adopted for the

 

Michigan merit examination as the base year for all comparisons.

 

     (c) A district is a qualifying district for the payment under

 

this subsection if the district's linear regression over the 4-year

 

period ending with the 2010-2011 2011-2012 school year under

 

subdivision (a) is at least equal to the statewide average linear

 

regression over the 4-year period ending with the base year under

 

subdivision (b), and the district's linear regression over the 4-

 

year period ending with the 2010-2011 2011-2012 school year under

 

subdivision (a) is positive, and the district tested 95% of high

 

school pupils in each tested subject on the Michigan merit

 

examination, state assessments, and the district had at least 20

 

full academic year pupils take all tested subjects on the Michigan

 

merit examination state assessments of high school pupils over each

 

of the most recent 4 years.

 

     (6) If the allocation under subsection (1) is insufficient to

 

fully fund payments as otherwise calculated under this section, the

 

department shall prorate payments under this section on an equal

 

percentage basis.

 

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

 

allocated for 2013-2014 an amount not to exceed $8,000,000.00 for

 

competitive student-centric grants to eligible districts.

 

     (2) In order to be eligible to receive grants, a district

 

shall demonstrate to the satisfaction of the department that the

 

district does all of the following:

 


     (a) Provides a rigorous curriculum aligned to state, national,

 

and international standards.

 

     (b) Organizes instructional delivery in such a way that

 

individual pupils advance to the next level of learning based on

 

their individual mastery of each subject area.

 

     (c) Allows for school site-based autonomy in decision making.

 

     (d) Ensures that teachers have access to all of the following:

 

     (i) Timely and meaningful pupil academic achievement data.

 

     (ii) Best instructional practices.

 

     (iii) Time to collaborate with others.

 

     (iv) Mentors.

 

     (v) Professional development tied to pupil needs as

 

demonstrated by data.

 

     (3) A district seeking a grant under this section shall submit

 

an application to the department by October 1, 2013 in a form and

 

manner prescribed by the department. The department shall award

 

grants on a per pupil basis to eligible recipients no later than

 

December 30, 2013.

 

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

 

allocated for 2012-2013 2013-2014 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 article for pupils described

 

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

 

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

 

education program or in a program approved by the department that

 

is located on property adjacent to a juvenile detention facility or

 

child caring institution. Costs reimbursed by federal funds are not

 

included.

 

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

 

district or intermediate district shall be determined by dividing

 

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

 

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

 

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

 

for the district or intermediate district.

 


     (3) A district or intermediate district educating pupils

 

described in this section at a residential child caring institution

 

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

 

department-approved on-grounds educational program for those pupils

 

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

 

child caring institution was licensed as a child caring institution

 

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

 

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

 

operated by a district or intermediate district.

 

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

 

not be funded under this section.

 

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

 

allocated an amount not to exceed $2,135,800.00 for 2012-2013

 

$2,167,500.00 for 2013-2014 for payments to intermediate districts

 

for pupils who are placed in juvenile justice service facilities

 

operated by the department of human services. Each intermediate

 

district shall receive an amount equal to the state share of those

 

costs that are clearly and directly attributable to the educational

 

programs for pupils placed in facilities described in this section

 

that are located within the intermediate district's boundaries. The

 

intermediate districts receiving payments under this section shall

 

cooperate with the department of human services to ensure that all

 

funding allocated under this section is utilized by the

 

intermediate district and department of human services for

 

educational programs for pupils described in this section. Pupils

 

described in this section are not eligible to be funded under

 

section 24. However, a program responsibility or other fiscal

 


responsibility associated with these pupils shall not be

 

transferred from the department of human services to a district or

 

intermediate district unless the district or intermediate district

 

consents to the transfer.

 

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

 

allocated an amount not to exceed $1,500,000.00 for 2012-2013 2013-

 

2014 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. 25e. (1) The center shall work with the department,

 

districts, and intermediate districts to develop a pupil transfer

 

application modeled on the graduation and dropout application and

 

to develop a pupil transfer process under this section. The center

 

shall complete development of this pupil transfer application not

 

later than November 1, 2013.

 

     (2) If a pupil transfers from a district or intermediate

 

district to enroll in another district or intermediate district

 


after the pupil membership count day and, due to the pupil's

 

enrollment and attendance status as of the pupil membership count

 

day, the pupil was not counted in membership in the educating

 

district or intermediate district, the educating district or

 

intermediate district may report the enrollment and attendance

 

information within 30 days after the transfer to the center through

 

the pupil transfer application until the supplemental count day.

 

Upon receipt of the transfer information under this subsection

 

indicating that a pupil has enrolled and is in attendance in an

 

educating district or intermediate district as described in this

 

subsection, the pupil transfer application shall do the following:

 

     (a) Notify the district in which the pupil was previously

 

enrolled. The district shall provide pupil exit dates and other

 

information as required by the center and the department.

 

     (b) Notify both the pupil auditing staff of the intermediate

 

district in which the educating district is located and the pupil

 

auditing staff of the intermediate district in which the district

 

that previously enrolled the pupil is located. The pupil auditing

 

staff shall edit, if necessary, and approve the transfer.

 

     (c) Aggregate the districtwide changes and notify the

 

department for use in adjusting the state aid payment system.

 

     (3) The department shall do all of the following:

 

     (a) Adjust the membership calculation for each district or

 

intermediate district in which the pupil was previously counted in

 

membership or that previously received an adjustment in its

 

membership calculation under this section due to the pupil's

 

enrollment and attendance, if any, 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 and in attendance 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) Adjust the membership calculation for the educating

 

district or intermediate district for each school day in which the

 

pupil is enrolled and is in attendance in the educating district or

 

intermediate district so that the district's or intermediate

 

district's membership is increased to allow the district or

 

intermediate district to receive, for each school day between the

 

day the pupil enrolled in the educating district and the

 

supplemental count day, an amount equal to 1/180 of the foundation

 

allowance or per pupil payment as calculated under section 20 for

 

the educating 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).

 

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

 

under subsection (3) shall take effect as of the date that the

 

pupil becomes enrolled and in attendance in the educating district

 

or intermediate district, and the department shall base all

 

subsequent payments under this article for the fiscal year to the

 

affected districts or intermediate districts on this recalculation

 


of state school aid.

 

     (5) If a pupil enrolls in an educating district or

 

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

 

or intermediate district in which the pupil is counted in

 

membership or another educating district or intermediate district

 

that received an adjustment in its membership calculation under

 

subsection (3), if any, and the educating district or intermediate

 

district shall provide to the center and the department all

 

information they require to comply with this section.

 

     (6) As used in this section, "educating district or

 

intermediate district" means the district or intermediate district

 

in which a pupil enrolls after the pupil membership count day or

 

after an adjustment was made in another district's or intermediate

 

district's membership calculation under this section due to the

 

pupil's enrollment and attendance.

 

     Sec. 26a. (1) From the state school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$25,137,500.00 for 2011-2012 and an amount not to exceed

 

$26,300,000.00 for 2012-2013 2013-2014 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 2012. 2013. 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.

 

     (2) 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 $1,500,000.00 for 2012-2013

 

$3,200,000.00 for 2013-2014 to reimburse public libraries pursuant

 

to section 12 of the Michigan renaissance zone act, 1996 PA 376,

 

MCL 125.2692, for taxes levied in 2012. The allocations shall be

 

made not later than 60 days after the department of treasury

 

certifies to the department and to the state budget director that

 

the department of treasury has received all necessary information

 

to properly determine the amounts due to each eligible recipient.

 

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

 

allocated for 2012-2013 2013-2014 an amount not to exceed

 

$3,328,000.00 $4,009,500.00 for payments to districts, intermediate

 

districts, and community college districts for the portion of the

 

payment in lieu of taxes obligation that is attributable to

 

districts, intermediate districts, and community college districts

 

pursuant to section 2154 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.2154.

 

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

 

sufficient to fully pay obligations under this section, payments

 

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

 

intermediate districts, and community college districts.

 

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

 

allocated an amount not to exceed $276,800.00 for 2011-2012 and an

 

amount not to exceed $347,800.00 $209,400.00 for 2012-2013 and an

 

amount not to exceed $266,200.00 for 2013-2014 to the promise zone

 

fund created in subsection (3).

 

     (2) Funds allocated to the promise zone fund under this

 


section shall be used solely for payments to eligible districts and

 

intermediate districts that have a promise zone development plan

 

approved by the department of treasury under section 7 of the

 

Michigan promise zone authority act, 2008 PA 549, MCL 390.1667.

 

     (3) The promise zone fund is created as a separate account

 

within the state school aid fund to be used solely for the purposes

 

of the Michigan promise zone authority act, 2008 PA 549, MCL

 

390.1661 to 390.1679. All of the following apply to the promise

 

zone fund:

 

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

 

promise zone fund. The state treasurer shall credit to the promise

 

zone fund interest and earnings from fund investments.

 

     (b) Money in the promise zone fund at the close of a fiscal

 

year shall remain in the promise zone fund and shall not lapse to

 

the general fund.

 

     (4) Subject to subsection (2), the state treasurer may make

 

payments from the promise zone fund to eligible districts and

 

intermediate districts pursuant to the Michigan promise zone

 

authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

 

for the purposes of a promise zone authority created under that

 

act.

 

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

 

appropriated in section 11, there is allocated for 2012-2013 2013-

 

2014 an amount not to exceed $317,695,500.00 for payments to

 

eligible districts, 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 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 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 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, 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 for 2012-2013 2013-2014 an amount not to exceed

 

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

 

grants shall be awarded for 5 consecutive years beginning with

 

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

 

and the department of community health. Each grant recipient shall

 

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

 

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

 

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

 

adolescent health center under this section a grant recipient shall

 

ensure that the child and adolescent health center has an advisory

 

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

 

advisory committee are parents or legal guardians of school-aged

 

children. A child and adolescent health center program shall

 

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

 

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

 

subsection shall be used to support child and adolescent health

 

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

 

allocated under this subsection are not used for the purposes of

 


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

 

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

 

minimize any proration that would otherwise be required under

 

subsection (14) for that fiscal year.

 

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

 

allocated for 2012-2013 2013-2014 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

 

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

 

a 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-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 a 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-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

 

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.

 

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, 296, the department shall prorate payments under this

 

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

 

section by a dollar amount calculated by determining the amount by

 

which the amount necessary to fully fund the requirements of this

 

section exceeds the maximum amount allocated under this section and

 

then dividing that amount by the total statewide number of pupils

 

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

 

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

 

subsection (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 arts 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. At-risk pupil also includes all pupils in a priority school

 

as defined in the elementary and secondary education act of 2001

 

flexibility request approved by the United States department of

 

education. 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, 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 writing, mathematics, science, or social

 

studies components 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 $22,495,100.00 for 2012-2013

 

2013-2014 for the purpose of making payments to districts and other

 

eligible entities under this section.

 

     (2) The amounts allocated from state sources under this

 

section shall be used to pay the amount necessary to reimburse

 

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

 

portion of the school lunch programs provided by those districts.

 

The amount due to each district under this section shall be

 

computed by the department using the methods of calculation adopted

 

by the Michigan supreme court in the consolidated cases known as

 

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

 

104458-104492.

 

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

 

payments made to districts so that each district receives at least

 

6.0127% of the necessary costs of operating the state mandated

 

portion of the school lunch program in a fiscal year.

 

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

 

other eligible entities that are not required under section 1272a

 


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

 

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

 

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

 

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

 

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

 

is allocated for 2012-2013 2013-2014 all available federal funding,

 

estimated at $400,000,000.00, $460,000,000.00 for the national

 

school lunch program and all available federal funding, estimated

 

at $2,506,000.00, $3,200,000.00 for the emergency food assistance

 

program.

 

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

 

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

 

determined by the department.

 

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

 

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

 

produced by Michigan businesses if it is competitively priced and

 

of comparable quality.

 

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

 

allocated an amount not to exceed $9,625,000.00 for 2012-2013

 

$5,625,000.00 for 2013-2014 for the purpose of making payments to

 

districts to reimburse for the cost of providing breakfast.

 

     (2) The funds allocated under this section for school

 

breakfast programs shall be made available to all eligible

 

applicant districts that meet all of the following criteria:

 

     (a) The district participates in the federal school breakfast

 

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

 

and 245.

 


     (b) Each breakfast eligible for payment meets the federal

 

standards described in subdivision (a).

 

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

 

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

 

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

 

and approved by the department, less federal reimbursement,

 

participant payments, and other state reimbursement. The statewide

 

average cost shall be determined by the department using costs as

 

reported in a manner approved by the department for the preceding

 

school year.

 

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

 

may be made pursuant to an agreement with the department.

 

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

 

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

 

or produced by Michigan businesses if it is competitively priced

 

and of comparable quality.

 

     Sec. 32d. (1) From the funds appropriated in section 11, there

 

is allocated to eligible intermediate districts and consortia of

 

intermediate districts for great start readiness programs an amount

 

not to exceed $109,275,000.00 for 2012-2013. $149,275,000.00 for

 

2013-2014. In addition, from the funds appropriated in section 11,

 

there is allocated to the great start readiness reserve fund

 

created under subsection (14) an amount not to exceed

 

$25,000,000.00 for 2013-2014. Funds allocated under this section

 

for great start readiness programs shall be used to provide part-

 

day, school-day, or GSRP/head start blended comprehensive free

 

compensatory classroom programs designed to 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.department. Beginning in

 

2013-2014, for a child to be eligible to participate in a program

 

under this section, the child shall be at least 4, but less than 5,

 

years of age as of the date specified for determining a child's

 

eligibility to attend school under section 1147 of the revised

 

school code, MCL 380.1147.

 

     (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 for programs described in this

 

subdivision shall not exceed the amount spent under this

 

subdivision for the immediately preceding fiscal year. Funds spent

 

for programs described in this subdivision shall be used for

 

services to families with income below 300% of the federal poverty

 

level.

 

     (2) Funds allocated under this section subsection (1) shall be

 

allocated to intermediate districts or consortia of intermediate

 

districts based on the formula in section 39. An intermediate

 

district or consortium of intermediate districts receiving funding

 

under this section shall act as the fiduciary for the great start

 

readiness programs. For 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 $100,400,000.00 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 subsection from an intermediate district or consortium

 

of intermediate districts, a district, or a consortium of

 

districts, or a public or private for-profit or nonprofit legal

 

entity or agency shall comply with this section and section 39.

 

     (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 2012-2013 2013-

 

2014 for a competitive grant to continue a longitudinal evaluation

 

of children who have participated in great start readiness

 

programs.

 

     (4) To be eligible for funding under this section, a program

 

shall prepare children for success in school through comprehensive

 

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

 

contain all of the following program components, as determined by

 

the department:

 


     (a) Participation in a collaborative recruitment and

 

enrollment process . 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

 

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

 

     (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 convened as a workgroup of the great

 

start collaborative that provides for the involvement of classroom

 

teachers, parents or guardians of program participants, and

 

community, volunteer, and social service agencies and

 

organizations, as appropriate. The advisory committee annually

 

shall review 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.

 

     (j) Participation in this state's great start to quality

 

process with a rating of at least 3 stars.

 

     (5) An application for funding under this section shall

 

provide for the following, in a form and manner determined by the

 

department:

 

     (a) Ensure compliance with all program components described in

 

subsection (4).

 

     (b) Ensure that more than 75% at least 90% of the children

 

participating in an eligible great start readiness program for whom

 

the provider is receiving funds under this section are children who

 

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

 

than 300% 250% of the federal poverty level.

 

     (c) Ensure that the applicant only uses qualified personnel

 

for this program, as follows:

 

     (i) Teachers possessing proper training. For programs managed

 

directly by 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 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 applicant demonstrates to the department

 

that it is unable to fully comply with this subparagraph after

 

making reasonable efforts to comply, teachers who have significant

 

but incomplete training in early childhood education or child

 

development may be used if the applicant provides to the

 

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

 

come into compliance with the standards in this subparagraph. A

 

teacher's compliance plan must be completed within 2 years of the

 

date of employment. Progress toward completion of the compliance

 

plan shall consist of at least 2 courses per calendar year.

 

     (ii) Paraprofessionals possessing proper training in early

 

childhood development, including an associate's degree in early

 

childhood education or child development or the equivalent, or a

 

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

 

applicant demonstrates to the department that it is unable to fully

 

comply with this subparagraph after making reasonable efforts to

 

comply, the applicant may use paraprofessionals who have completed

 

at least 1 course that earns college credit in early childhood

 

education or child development if the applicant provides to the

 

department, and the department approves, a plan for each

 

paraprofessional to come into compliance with the standards in this

 

subparagraph. A paraprofessional's compliance plan must be

 

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

 

completion of the compliance plan shall consist of at least 2

 

courses or 60 clock hours of training per calendar year.

 

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

 


that are not reimbursed or reimbursable by federal funding, that

 

are clearly and directly attributable to the great start readiness

 

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

 

being offered. Eligible costs include transportation costs. The

 

program budget shall indicate the extent to which these funds will

 

supplement other federal, state, local, or private funds. Funds

 

received under this section shall not be used to supplant any

 

federal funds received by the applicant to serve children eligible

 

for a federally funded 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) For a grant recipient that enrolls pupils in a GSRP/head

 

start blended program, the grant recipient shall ensure that all

 

head start and GSRP policies and regulations are applied to the

 

blended slots, with adherence to the highest standard from either

 

program, to the extent allowable under federal law.

 

     (8) (7) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section may provide services

 

directly or may contract with 1 or more districts or public or

 

private 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% 7% of

 

the grant amount. An In addition, an intermediate district , or

 

consortium of intermediate districts , or competitive grant program

 

may expend not more than 10% 2% of the total grant amount for

 

administration recruiting and public awareness 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) Each grant recipient shall enroll children identified

 

under subsection (5)(b) according to how far the child's household

 

income is below 250% of the federal poverty level by ranking each

 

applicant child's household income from lowest to highest and

 

dividing the applicant children into quintiles based on how far the

 

child's household income is below 250% of the federal poverty

 

level, and then enrolling children in the quintile with the lowest

 

household income before enrolling children in the quintile with the

 

next lowest household income until slots are completely filled.

 

     (10) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall conduct a

 

local process to contract with interested and eligible public and

 

private for-profit and nonprofit community-based providers that

 

meet all requirements of subsection (4) for at least 30% of its

 

total slot allocation. If the intermediate district or consortium

 


is not able to contract for at least 30% of its total slot

 

allocation, the grant recipient shall notify the department and, if

 

the department verifies that the intermediate district or

 

consortium attempted to contract for at least 30% of its total slot

 

allocation and was not able to do so, then the intermediate

 

district or consortium may retain and use all of its allocated

 

slots as provided under this section.

 

     (11) (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

 

eligibility criteria under subsection (5)(b) and the total number

 

of children participating in the program. For children

 

participating in the program who meet the income 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.

 

     (12) (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) "Part-day program" means a program that operates at least

 

4 days per week, 30 weeks per year, for at least 3 hours of

 


teacher-child contact time per day but for fewer hours of teacher-

 

child contact time per day than a school-day program.

 

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

 

least the same length of day as a district's first grade program

 

for a minimum of 4 days per week, 30 weeks per year. A classroom

 

that offers a school-day program must enroll all children for the

 

school day to be considered a school-day program.

 

     (13) (11) A grant recipient An intermediate district or

 

consortium of intermediate districts receiving funds under this

 

section is encouraged to shall establish a sliding scale of tuition

 

rates based upon a child's family income for the purpose of

 

expanding eligible programs under this section. household income

 

for children participating in an eligible great start readiness

 

program who live with families with a household income that is more

 

than 250% of the federal poverty level to be used by all of its

 

providers, as approved by the department. A grant recipient may

 

shall 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 income eligibility

 

requirements under this section.

 

     (12) 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.

 

     (14) The great start readiness reserve fund is created as a

 

separate account within the state school aid fund established by

 

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

 

available in the great start readiness reserve fund may not be

 

expended for 2013-2014 unless transferred by the legislature not

 

later than January 31, 2014 to the allocation under subsection (1)

 

for great start readiness programs. Money in the great start

 

readiness reserve fund shall be expended only for purposes for

 

which state school aid fund money may be expended. The state

 

treasurer shall direct the investment of the great start readiness

 

reserve fund. The state treasurer shall credit to the great start

 

readiness reserve fund interest and earnings from fund investments.

 

Money in the great start readiness reserve fund at the close of a

 

fiscal year shall remain in the great start readiness reserve fund

 

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

 

the general fund.

 

     Sec. 32p. (1) From the school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$10,900,000.00 to intermediate districts for 2012-2013 2013-2014

 


for the purpose of providing early childhood funding to

 

intermediate school districts in block grants, supporting the

 

activities under subsection (2), and providing early childhood

 

programs for children from birth through age 8. The Beginning in

 

2013-2014, the funding provided to each intermediate district under

 

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

 

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

 

for 2011-2012. determined by the distribution formula established

 

by the department's office of great start to provide equitable

 

funding statewide. In order to receive funding under this section,

 

each intermediate district shall provide an application to the

 

office of great start not later than August 15, 2012, September 15

 

of the immediately preceding fiscal year 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 and a parent coalition. 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 each great start collaborative is and parent

 

coalition shall be to ensure the coordination and expansion of

 

local early childhood infrastructure and programs that allow every

 

child in the community is ready for kindergarten. to achieve the

 

following outcomes:

 

     (a) Children born healthy.

 


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

 

from birth to third grade.

 

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

 

time of school entry.

 

     (d) Children prepared to succeed in fourth grade and beyond by

 

reading proficiently by the end of third grade.

 

     (3) Each local great start collaborative and parent coalition

 

shall convene a workgroup to serve as a school readiness advisory

 

committee as required under section 32d and shall ensure the

 

coordination and expansion of infrastructure or programming to

 

support high-quality early childhood and childcare programs. An

 

intermediate district or consortium of intermediate districts may

 

reconstitute its local great start collaborative if that

 

collaborative is found to be ineffective.that its local great start

 

system includes the following supports for children from birth

 

through age 8:

 

     (a) Physical health.

 

     (b) Social-emotional health.

 

     (c) Family supports and basic needs.

 

     (d) Parent education and child advocacy.

 

     (e) Early education and care.

 

     (4) (3) Not later than December 1 , 2013, of each year, each

 

intermediate district shall provide a report to the department

 

detailing the activities actually provided during 2012-2013 the

 

immediately preceding school year and the families and children

 

actually served. The department shall compile and summarize these

 

reports and submit its summary to the house and senate

 


appropriations subcommittees on school aid and to the house and

 

senate fiscal agencies. The block grants allocated under this

 

section implement legislative intent language for this purpose

 

enacted in 2011 PA 62.

 

     (5) (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) An eligible applicant receiving funds 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 that is endorsed by the local great start

 

collaborative and is part of the community's great start strategic

 

plan that includes, but is not limited to, great start readiness

 

program and head start providers, and shall identify all of the

 

following:

 

     (a) The estimated total number of children in the community

 

who meet the criteria of section 32d and how that calculation was

 

made.

 

     (b) The estimated number of children in the community who meet

 


the criteria of section 32d and are being served by other early

 

childhood development programs operating in the community, and how

 

that calculation was made.

 

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

 

who meet the criteria of section 32d including a verification of

 

physical facility and staff resources capacity.

 

     (d) The estimated number of children who meet the criteria of

 

section 32d who will remain unserved after the applicant and

 

community early childhood programs have met their funded

 

enrollments. The applicant shall maintain a waiting list of

 

identified unserved eligible children who would be served when

 

openings are available.

 

     (2) An applicant receiving funds 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 applicant complies with the

 

program components established by the department pursuant to

 

section 32d.

 

     (3) The number of prekindergarten children construed to be in

 

need of special readiness assistance under section 32d shall be

 

calculated for each applicant in the following manner: 1/2 of the

 

percentage of the applicant's pupils in grades 1 to 5 in all

 

districts served by the applicant who are eligible for free lunch,

 

as determined using the district's pupil membership count as of the

 

pupil membership count day in the school year prior to the fiscal

 

year for which the calculation is made, under the Richard B.

 

Russell national school lunch act, 42 USC 1751 to 1769i, shall be

 


multiplied by the average kindergarten enrollment of the districts

 

served by the applicant on the pupil membership count day of the 2

 

immediately preceding fiscal years.

 

     (4) The initial allocation for each fiscal year to each

 

eligible applicant under section 32d shall be determined by

 

multiplying the number of children determined by the formula under

 

subsection (3) or the number of children the applicant indicates it

 

will be able to serve under subsection (1)(c), whichever is less,

 

by $3,400.00 $3,625.00 and shall be distributed among applicants in

 

decreasing order of concentration of eligible children as

 

determined by the formula under subsection (3). If the number of

 

children an applicant indicates it will be able to serve under

 

subsection (1)(c) includes children able to be served in a school-

 

day program, then the number able to be served in a school-day

 

program shall be doubled for the purposes of making this

 

calculation of the lesser of the number of children determined by

 

the formula under subsection (3) and the number of children the

 

applicant indicates it will be able to serve under subsection

 

(1)(c) and determining the amount of the initial allocation to the

 

applicant under section 32d. A district may contract with a head

 

start agency to serve children enrolled in head start with a

 

school-day program by blending head start funds with a part-day

 

great start readiness program allocation. All head start and great

 

start readiness program policies and regulations apply to the

 

blended program.

 

     (5) If funds allocated for eligible applicants in or to the

 

great start readiness reserve fund under section 32d remain after

 


the initial allocation under subsection (4), the allocation under

 

this subsection shall be distributed to each eligible applicant

 

under section 32d in decreasing order of concentration of eligible

 

children as determined by the formula under subsection (3). The

 

allocation shall be determined by multiplying the number of

 

children each district within the applicant's service area served

 

in the immediately preceding fiscal year or the number of children

 

the applicant indicates it will be able to serve under subsection

 

(1)(c), whichever is less, minus the number of children for which

 

the applicant received funding in subsection (4) by

 

$3,400.00.$3,625.00.

 

     (6) If funds allocated for eligible applicants in or to the

 

great start readiness reserve fund under section 32d remain after

 

the allocations under subsections (4) and (5), remaining funds

 

shall be distributed to each eligible applicant under section 32d

 

in decreasing order of concentration of eligible children as

 

determined by the formula under subsection (3). If the number of

 

children the applicant indicates it will be able to serve under

 

subsection (1)(c) exceeds the number of children for which funds

 

have been received under subsections (4) and (5), the allocation

 

under this subsection shall be determined by multiplying the number

 

of children the applicant indicates it will be able to serve under

 

subsection (1)(c) less the number of children for which funds have

 

been received under subsections (4) and (5) by $3,400.00 $3,625.00

 

until the funds allocated for eligible applicants in section 32d

 

are distributed.

 

     (7) An applicant that offers supplementary child care funded

 


by funds other than those received under section 32d and therefore

 

offers full-day programs as part of its early childhood development

 

program shall receive priority in the allocation of funds under

 

section 32d over other eligible applicants. As used in this

 

subsection, "full-day program" means a program that provides

 

supplementary child care that totals at least 10 hours of

 

programming per day.

 

     (8) If, taking into account the total amount to be allocated

 

to the applicant as calculated under this section, an applicant

 

determines that it is able to include additional eligible children

 

in the great start readiness program without additional funds under

 

section 32d, the applicant may include additional eligible children

 

but shall not receive additional funding under section 32d for

 

those children.

 

     Sec. 39a. (1) From the federal funds appropriated in section

 

11, there is allocated for 2012-2013 2013-2014 to districts,

 

intermediate districts, and other eligible entities all available

 

federal funding, estimated at $812,328,500.00, $811,828,500.00, 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 $250,000.00 for the purpose of

 

improving teaching and learning through a more effective use of

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