SENATE BILL No. 222

 

 

February 27, 2013, Introduced by Senator KAHN and referred to the Committee on Appropriations.

 

 

 

†††††† A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 6, 11, 11a, 11g, 11j, 11k, 11m, 15, 18, 18b, 19, 20, 20d, 22a,

 

22b, 22d, 22f, 22i, 22j, 24, 24a, 24c, 25, 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, 388.1615, 388.1618, 388.1618b, 388.1619, 388.1620,

 

388.1620d, 388.1622a, 388.1622b, 388.1622d, 388.1622f, 388.1622i, 388.1622j, 388.1624,

 

388.1624a, 388.1624c, 388.1625, 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, 25, and 26b

 

as amended by 2012 PA 465, sections 11a, 11g 11j, 11k, 11m, 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 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, section 101 as amended by 2012 PA 516, and by adding sections 21f, 22c,

 

22k, 201, 202, 202a, 203, 206, 207, 207a, 207b, 207c, 209, 210, 213, 217, 218, 219,

 

220, 221, 222, 223, 224, 225, 226, 229, 230, 230a, 231, 236, 236b, 237, 237b, 238,

 

241, 242, 243, 244, 245, 246, 251, 252, 253, 254, 255, 256a, 257, 258, 259, 263, 263a,

 

264, 265, 265a, 267, 269, 270, 275, 276, 277, 278, 279, 280, 281, 282, 283, 284, 285,

 

286, 289, 291, 293a, and 293b; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

ARTICLE I

 

†††††† 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 school year. A districtís, public school academyís, or intermediate

 

districtís 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 pupilís participation in the cyber schoolís

 


educational program or, FOR THE EDUCATION ACHIEVEMENT SYSTEM A PUPILíS PARTICIPATION

 

in an online educational program of the education achievement system or of an

 

achievement school, OR FOR A DISTRICT THE PUPILíS 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 pupilís 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 pupilís district of

 

residence, if the pupil is not being educated as part of a cooperative education

 

program, if the pupilís 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 pupilís 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 pupilís 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 pupilís 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 districtís

 

membership shall exclude from the districtís 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.

 

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

 

†††††† (C) Is less than 22 years of age as of September 1 of the current school year.

 


†††††† (m) An individual who has obtained a high school diploma shall not be counted

 

in membership. An individual who has obtained a general educational development

 

(G.E.D.) certificate shall not be counted in membership unless the individual is a

 

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 effect in 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 pupilís 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

 

districtís alternative or disciplinary education program that the best instructional

 

placement for a pupil is in the pupilís 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 pupilís 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 pupilís 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 districtís

 

alternative education program.

 

†††††† (iii) Course content is comparable to that in the districtís alternative

 

education program.

 

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

 

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 academyís 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 districtís or the

 

education achievement systemís 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 districtís 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

 

districtís 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 districtís membership for the 3-fiscal-year period

 

ending with that fiscal year, calculated by adding the districtís 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 districtís 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 districtís immediately preceding supplemental

 

count for purposes of determining the districtís 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 pupilís 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. 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 districtís 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 pupilís district of residence to count the pupil in

 

membership, except approval by the pupilís 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 pupilís 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 pupilís 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 pupilís 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 pupilís 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 pupilís 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 pupilís district of residence

 

in a middle college program if the pupilís 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 pupilís district of residence

 

who attends a United States Olympic education center.

 

†††††† (n) A pupil enrolled in a district other than the pupilís 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 pupilís district of

 

residence as a result of the pupilís 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 pupilís district of residence

 

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

 

†††††† (P) AN ONLINE LEARNING PUPIL ENROLLED IN A DISTRICT OTHER THAN THE PUPILíS

 

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 pupilís 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

 

PUPILíS RESIDENT DISTRICT. A pupilís 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 2014, 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

 

$11,090,813,500.00 from the state school aid fund, THE SUM OF $150,000,000.00 FROM THE

 

MPSERS retirement obligation reform reserve fund created in section 147b of this

 


article and the sum of $282,400,000.00 $230,000,000.00 from the general fund. for the

 

fiscal year ending September 30, 2015, there is appropriated for the public schools of

 

this state and certain other state purposes relating to education the sum of

 

$11,393,154,500.00 from the state school aid fund and the sum of $100,000,000.00 from

 

the mpsers retirement obligation reform reserve fund created in section 147b AND THE

 

SUM OF $233,000,000.00 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 2014 AND THE FISCAL YEAR ENDING SEPTEMBER 30,

 

2015.

 

†††††† (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 AND 2014-2015, 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 EACH FISCAL

 

YEAR an amount not to exceed $120,390,000.00 $131,660,000.00 for 2012-2013 2013-2014

 

AND $139,900,000.00 FOR 2014-2015 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 AND 2014-2015, 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 2013-2014 an amount not to exceed $2,100,000.00 $6,000,000.00 and there is

 

allocated for 2012-2013 2014-2015 an amount not to exceed $3,200,000.00 $8,000,000.00

 

for fiscal year cash-flow borrowing costs solely related to the state school aid fund

 

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

 

†††††† Sec. 15. (1) If a district or intermediate district fails to receive its proper

 

apportionment, the department, upon satisfactory proof that the district or

 

intermediate district was entitled justly, shall apportion the deficiency in the next

 

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

 

district has received more than its proper apportionment, the department, upon

 

satisfactory proof, shall deduct the excess in the next apportionment. Notwithstanding

 

any other provision in this article, state aid overpayments to a district, other than

 

overpayments in payments for special education or special education transportation,

 

may be recovered from any payment made under this article other than a special

 

education or special education transportation payment, from the proceeds of a loan to

 

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

 

141.942, or from the proceeds of millage levied or pledged under section 1211 of the

 

revised school code, MCL 380.1211. State aid overpayments made in special education or

 

special education transportation payments may be recovered from subsequent special

 


education or special education transportation payments, from the proceeds of a loan to

 

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

 

141.942, or from the proceeds of millage levied or pledged under section 1211 of the

 

revised school code, MCL 380.1211.

 

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

 

current fiscal year membership, affected payments shall be adjusted in the current

 

fiscal year. A deduction due to an adjustment made as a result of an audit conducted

 

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

 

from the district, an intermediate district, the department of treasury, or the office

 

of auditor general, shall be deducted from the district's apportionments when the

 

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

 

presenting evidence satisfactory to the department of the hardship, the department may

 

grant up to an additional 4 years for the adjustment and may advance payments to the

 

district otherwise authorized under this 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 AND 2014-2015 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, 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:

 

†††††† (a) Textbooks, instructional materials, and supplies, including electronic

 

instructional material.

 

†††††† (b) Computer and other electronic equipment, including internet and telephone

 

access.

 

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

 

†††††† (d) Purchased courses and curricula.

 

†††††† (e) Fees associated with oversight and regulation.

 

†††††† (f) Travel costs associated with school activities and testing.

 

†††††† (g) Facilities costs.

 

†††††† (h) Costs associated with special education.

 

†††††† (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 not been reissued by the

 

authorizing body.

 

†††††† (2) A PUBLIC SCHOOL ACADEMY CORPORATION MUST INITIATE A DISSOLUTION PROCESS

 

WITHIN 30 DAYS AFTER ITS CONTRACTíS EXPIRATION.

 

†††††† (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 AND FOR 2014-2015, the

 

basic foundation allowance is $8,019.00.

 

†††††† (2) The amount of each district's foundation allowance shall be calculated as

 

provided in this section, using a basic foundation allowance in the amount specified

 

in subsection (1).

 

†††††† (3) Except as otherwise provided in this section, the amount of a district's

 

foundation allowance shall be calculated as follows, using in all calculations the

 

total amount of the district's foundation allowance as calculated before any

 

proration:

 

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

 

preceding state fiscal year that was at least equal to the sum of $7,108.00 plus the

 

total dollar amount of all adjustments made from 2006-2007 to the immediately

 

preceding state fiscal year in the lowest foundation allowance among all districts,

 


but less than the basic foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive a foundation allowance in an amount equal to

 

the sum of the district's foundation allowance for the immediately preceding state

 

fiscal year plus the difference between twice the dollar amount of the adjustment from

 

the immediately preceding state fiscal year to the current state fiscal year made in

 

the basic foundation allowance and [(the dollar amount of the adjustment from the

 

immediately preceding state fiscal year to the current state fiscal year made in the

 

basic foundation allowance minus $20.00) times (the difference between the district's

 

foundation allowance for the immediately preceding state fiscal year and the sum of

 

$7,108.00 plus the total dollar amount of all adjustments made from 2006-2007 to the

 

immediately preceding state fiscal year in the lowest foundation allowance among all

 

districts) divided by the difference between the basic foundation allowance for the

 

current state fiscal year and the sum of $7,108.00 plus the total dollar amount of all

 

adjustments made from 2006-2007 to the immediately preceding state fiscal year in the

 

lowest foundation allowance among all districts]. For 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 2013-14 AND 2014-2015, 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 AND 2014-2015, 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 2013-2014 AND 2014-2015 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

 

1994-1995 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 AND 2014-2015, 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 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.

 

†††††† (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 2013-2014 AND 2014-2015, 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. Except as otherwise provided in

 

this subsection, a district qualifying for a foundation allowance adjustment under

 

this subsection shall use the funds resulting from this adjustment for at least 1 of

 

grades K to 3 for purposes allowable under former section 32e as in effect for 2001-

 

2002. For an individual school or schools operated by a district qualifying for a

 


foundation allowance under this subsection that have been determined by the department

 

to meet the adequate yearly progress standards of the federal no child left behind act

 

of 2001, Public Law 107-110, in both mathematics and English language arts at all

 

applicable grade levels for all applicable subgroups, the district may submit to the

 

department an application for flexibility in using the funds resulting from this

 

adjustment that are attributable to the pupils in the school or schools. The

 

application shall identify the affected school or schools and the affected funds and

 

shall contain a plan for using the funds for specific purposes identified by the

 

district that are designed to reduce class size, but that may be different from the

 

purposes otherwise allowable under this subsection. The department shall approve the

 

application if the department determines that the purposes identified in the plan are

 

reasonably designed to reduce class size. If the department does not act to approve or

 

disapprove an application within 30 days after it is submitted to the department, the

 

application is considered to be approved. If an application for flexibility in using

 

the funds is approved, the district may use the funds identified in the application

 

for any purpose identified in the plan. A district receiving an adjustment under this

 

subsection shall not receive as a result of this adjustment an amount that exceeds

 

68.5% of the amount the district received as a result of this adjustment for 2010-

 

2011. FOR 2013-2014, A DISTRICT RECEIVING AN ADJUSTMENT UNDER THIS SUBSECTION THAT HAS

 

A FOUNDATION ALLOWANCE, AS CALCULATED UNDER SECTION 20, THAT IS LESS THAN $7,500.00

 

SHALL RECEIVE THE LESSER OF THE ADJUSTMENT CALCULATED UNDER THIS SUBSECTION OR $100.00

 

PER PUPIL, AND A DISTRICT RECEIVING AN ADJUSTMENT UNDER THIS SUBSECTION THAT HAS A

 

FOUNDATION ALLOWANCE, AS CALCULATED UNDER SECTION 20, THAT IS GREATER THAN OR EQUAL TO

 

$7,500.00 SHALL RECEIVE THE LESSER OF THE ADJUSTMENT CALCULATED UNDER THIS SUBSECTION

 

OR $50.00 PER PUPIL.

 

†††††† (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) 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 2013-

 

2014 AND 2014-2015, 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 AND 2014-2015, 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 1993-1994 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

 

1993-1994, 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 1995-1996 and 1996-1997 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 1993-1994 included resident pupils attending the center program

 

and excluded nonresident pupils attending the center program.

 

†††††† SEC. 21F. (1) A PUPIL ENROLLED IN A DISTRICT IN ANY OF GRADES 5 TO 12 IS

 

ELIGIBLE TO ENROLL IN ONLINE COURSES AS PROVIDED FOR IN THIS SECTION. 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 PUBLIC SCHOOL

 

SHALL ENROLL AN ELIGIBLE PUPIL IN UP TO 2 ONLINE COURSES AS REQUESTED BY THE PUPIL

 

DURING AN ACADEMIC TERM, SEMESTER, OR TRIMESTER. HOWEVER, IF A PUPIL HAS DEMONSTRATED

 

PREVIOUS SUCCESS WITH ONLINE COURSES AND THE DISTRICT AND THE PUPIL'S PARENT OR

 

GUARDIAN DETERMINE THAT IT IS IN THE BEST INTEREST OF THE PUPIL, A PUPIL MAY BE

 

ENROLLED IN MORE THAN 2 ONLINE COURSES IN AN ACADEMIC TERM, SEMESTER, OR TRIMESTER.

 

†††††† (3) AN ELIGIBLE PUPIL AS DETERMINED IN SUBSECTION (1) MAY ENROLL IN ONLINE

 

COURSES PUBLISHED IN THE PUPILíS EDUCATING DISTRICT CATALOG OF ONLINE COURSES

 

DESCRIBED IN SUBSECTION (6)(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 DISTRICTíS 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) AN EDUCATING DISTRICT MAY PROHIBIT PUPIL ENROLLMENT IN ONLINE COURSES 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, OR

 

†††††† (D) THE PUPIL DOES NOT POSSESS THE PREREQUISITE KNOWLEDGE AND SKILLS TO BE

 

SUCCESSFUL IN THE ONLINE COURSE.

 

†††††† (E) 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 OF RESIDENCE, citing the reason PROVIDED BY THE DISTRICT FOR NOT

 

ENROLLING THE PUPIL AND THE REASON WHY the enrollment SHOULD be approved. The

 

intermediate district superintendent or designee SHALL respond to the appeal within

 

five days AFTER IT IS RECEIVED. If the intermediate district superintendent or

 

designee determines the denial of enrollment does not meet one or more of the reasons

 

specified IN THIS SUBSECTION, the PUPIL must BE allowED to enroll in the online

 

course.

 

†††††† (6) IN ORDER TO OFFER OR PROVIDE AN ONLINE COURSE, A DISTRICT SHALL DO ALL OF

 

THE FOLLOWING:

 

†††††† (A) FOR ALL ONLINE COURSES OFFERED BY THE DISTRICT, PROVIDE THE MICHIGAN

 

VIRTUAL UNIVERSITY WITH THE COURSE SYLLABI IN A FORM AND METHOD PRESCRIBED BY THE

 

MICHIGAN VIRTUAL UNIVERSITY FOR INCLUSION IN A STATEWIDE ONLINE COURSE CATALOG.

 

DISTRICTS SHALL ALSO PROVIDE A LINK TO ITS COURSE SYLLABI AND A LINK TO THE STATEWIDE

 

CATALOG OF ONLINE COURSES MAINTAINED BY MICHIGAN VIRTUAL UNIVERSITY AS DESCRIBED IN

 

SECTION 98 ON ITS PUBLICALLY-ACCESSIBLE WEBSITE.

 


†††††† (B) OFFER ONLINE COURSES ON AN OPEN ENTRY AND EXIT METHOD, OR ALIGNED TO A

 

SEMESTER, TRIMESTER, OR ACCELERATED ACADEMIC TERM FORMAT.

 

†††††† (7) FOR A PUPIL ENROLLED IN ONE OR MORE ONLINE COURSES PUBLISHED IN THE PUPILíS

 

EDUCATING DISTRICT CATALOG OF ONLINE COURSES, OR THE STATEWIDE CATALOG OF ONLINE

 

COURSES MAINTAINED BY THE MICHIGAN VIRTUAL UNIVERSITY, THE DISTRICT shall use

 

FOUNDATION ALLOWANCE funds CALCULATED UNDER SECTION 20 TO PAY FOR the expenses

 

associated with the online course or courses.

 

†††††† (8) ONLINE LEARNING PUPILS SHALL HAVE THE SAME RIGHTS AND ACCESS TO TECHNOLOGY

 

IN THEIR EDUCATING DISTRICT SCHOOL FACILITIES AS ALL OTHER PUPILS ENROLLED IN THE

 

EDUCATING DISTRICT.

 

†††††† (9) IF A PUPIL SUCCESSFULLY COMPLETES AN ONLINE COURSE, THE PUPILíS EDUCATING

 

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 COURSE SYLLABUS DEFINED IN SUBSECTION (10).

 

†††††† (10) 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 Michigan certificated teacher 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.

 

†††††† (C) "ONLINE LEARNING PUPIL" MEANS A PUPIL ENROLLED IN ONE 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 $5,558,000,000.00 for 2011-2012 2013-2014 and

 

there is allocated an amount not to exceed $5,712,000,000.00 $5,464,000,000.00 for

 

2012-2013 2014-2015 for payments to districts and qualifying public school academies

 

to guarantee each district and qualifying public school academy an amount equal to its

 

1994-1995 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-

 

1995 total state and local per pupil revenue for school operating purposes, there is

 

allocated to each district a state portion of the district's 1994-1995 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 1994-1995

 

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 1994-1995 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-

 

1995 foundation allowance under this section beginning after the effective date of the

 

consolidation or annexation shall be the average of the 1994-1995 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 1994-1995 foundation allowance is less than the 1994-1995 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 1994-1995 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) "1994-1995 foundation allowance" means a district's 1994-1995 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 1993-1994.

 

†††††† (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 1994-1995 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 1994-1995 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 2013-2014 an amount not to exceed $3,052,000,000.00

 

$3,304,000,000.00 and there is allocated for 2012-2013 2014-2015 an amount not to

 

exceed $3,152,300,000.00 $3,383,000,000.00 for discretionary nonmandated payments to

 

districts under this section. Funds allocated under this section that are not expended

 

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

 

department, may be used to supplement the allocations under sections 22a and 51c in

 

order to fully fund those calculated allocations for the same fiscal year.

 

†††††† (2) Subject to subsection (3) and section 296, the allocation to a district

 

under this section shall be an amount equal to the sum of the amounts calculated under

 

sections 20, 51a(2), 51a(3), and 51a(11), minus the sum of the allocations to the

 

district under sections 22a and 51c.

 

†††††† (3) In order to receive an allocation under subsection (1), each district shall

 

do all of the following:

 

†††††† (a) Administer in each grade level that it operates in grades 1 to 5 a

 

standardized assessment approved by the department of grade-appropriate basic

 

educational skills. A district may use the Michigan literacy progress profile to

 

satisfy this requirement for grades 1 to 3. Also, if the revised school code is

 

amended to require annual assessments at additional grade levels, in order to receive

 

an allocation under this section each district shall comply with that requirement

 

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.

 

†††††† (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 $24,000,000.00 to make equity payments to districts that

 

have a foundation allowance or per pupil payment AS calculated under section 20 for

 

2013-2014 of less than $7,000.00. The equity payment for a district shall be an amount

 

per membership pupil equal to the lesser of $34.00 or the difference between $7,000.00

 

and the districtís 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 is allocated each fiscal year for 2011-2012 2013-2014 and for 2012-2013

 

2014-2015 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 2013-2014 and for 2012-2013 2014-2015 an amount not to exceed

 

$750,000.00 for payments under this subsection to districts that meet all of the

 

following:

 

†††††† (a) Operates grades K to 12.

 

†††††† (b) Has fewer than 250 pupils in membership.

 

†††††† (c) Each school building operated by the district meets at least 1 of the

 

following:

 

†††††† (i) Is located in the Upper Peninsula at least 30 miles from any other public

 

school building.

 

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

 

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

 

subsection (2) shall be determined under a spending plan developed as provided in this

 

subsection and approved by the superintendent of public instruction. The spending plan

 

shall be developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The intermediate

 

superintendents shall review the financial situation of each eligible district,

 

determine the minimum essential financial needs of each eligible district, and develop

 

and agree on a spending plan that distributes the available funding under subsection

 

(2) to the eligible districts based on those financial needs. The intermediate

 

superintendents shall submit the spending plan to the superintendent of public

 

instruction for approval. Upon approval by the superintendent of public instruction,

 

the amounts specified for each eligible district under the spending plan are allocated

 

under subsection (2) and shall be paid to the eligible districts in the same manner as

 

payments under section 22b.

 

†††††† (4) Subject to subsection (6), from the allocation in subsection (1), there is

 

allocated each fiscal year for 2011-2012 2013-2014 and for 2012-2013 2014-2015 an

 

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

 


that meet all of the following:

 

†††††† (a) The district has 5.0 or fewer pupils per square mile as determined by the

 

department.

 

†††††† (b) The district has a total square mileage greater than 200.0 or is 1 of 2

 

districts that have consolidated transportation services and have a combined total

 

square mileage greater than 200.0.

 

†††††† (5) The funds allocated under subsection (4) shall be allocated on an equal per

 

pupil basis.

 

†††††† (6) A district receiving funds allocated under subsection (2) is not eligible

 

for funding allocated under subsection (4).

 

†††††† Sec. 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 $25,000,000.00 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 $16.00 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 2011 PA 152, MCL 15.563 TO

 


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. THE UNFUNDED ACCRUED LIABILITY COSTS FOR RETIREMENT AND OTHER

 

BENEFITS SHALL BE EXCLUDED FROM THE DISTRICTíS CURRENT COSTS FOR THE PURPOSE OF

 

COMPARING COMPETITIVE BIDS TO THE CURRENT COSTS OF PROVIDING SERVICES.

 

†††††† (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 make all eligible pupils and their parents or guardians aware of these

 

opportunities. FOR EVERY ONLINE COURSE THAT A DISTRICT OFFERS, THE DISTRICT MUST

 

PUBLISH AN ONLINE COURSE SYLLABI AS DESCRIBED IN SECTION 21F. 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 MICHIGAN-

 

CERTIFIED TEACHER ARE IN THE SAME PHYSICAL LOCATION and partially 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 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 $16.00 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. 22i. (1) From the funds appropriated in section 11, there is allocated for

 

2012-2013 2013-2014 an amount not to exceed $50,000,000.00 $13,500,000.00 for THE

 

SECOND YEAR OF THE TWO-YEAR technology infrastructure grants PROGRAM to FOR districts

 

or to intermediate districts on behalf of their constituent districts. Funds received

 

under this section shall be used for access to a computer-adaptive test or for the

 

development or improvement of a district's technology infrastructure, INSTRUCTIONAL

 

PRACTICE AND THE SHARED SERVICE CONSOLIDATION OF TECHNOLOGY, AND DATA, including, but

 

not limited to, hardware and software, 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 IN WHICH ALL ELIGIBLE DISTRICTS AND INTERMEDIATE DISTRICTS MAY

 

PARTICIPATE. 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, 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.

 

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

 

FISCAL YEAR for 2012-2013 2013-2014 AND 2014-2015 an amount not to exceed

 

$30,000,000.00 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 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

 

THAT THE DISTRICT DOES ALL OF THE FOLLOWING TO THE SATISFACTION OF THE DEPARTMENT:

 

†††††† (A) PROVIDES A RIGOROUS CURRICULUM ALIGNED TO STATE, NATIONAL AND INTERNATIONAL

 

STANDARDS.

 

†††††† (B) ORGANIZES INSTRUCTIONAL DELIVERY IN SUCH A WAY THAT INDIVIDUAL STUDENTS

 

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:

 

†††††† (I) TIMELY AND MEANINGFUL STUDENT ACADEMIC ACHIEVEMENT DATA.

 

†††††† (II) BEST INSTRUCTIONAL PRACTICES.

 

†††††† (III) TIME TO COLLABORATE WITH OTHERS.

 

†††††† (IV) MENTORS.

 

†††††† (V) PROFESSIONAL DEVELOPMENT TIED TO STUDENT NEEDS AS DEMONSTRATED BY DATA.

 

†††††† (3) DISTRICTS SHALL SUBMIT APPLICATIONS TO THE DEPARTMENT BY OCTOBER 1, 2013 IN

 

A FORM AND MANNER DETERMINED 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 EACH

 

FISCAL YEAR for 2012-2013 2013-2014 AND 2014-2015 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 $2,167,500.00 for 2012-2013 2013-2014 AND 2014-2015 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 EACH FISCAL

 

YEAR an amount not to exceed $1,500,000.00 for 2012-2013 2013-2014 AND 2014-2015 for

 

payments to districts for pupils who are enrolled in a nationally administered

 


community-based education and youth mentoring program, known as the youth challenge

 

program, that is located within the district and is administered by the department of

 

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

 

payments under this section:

 

†††††† (a) The district shall contract with the department of military and veterans

 

affairs to ensure that all funding allocated under this section is utilized by the

 

district and the department of military and veterans affairs for the youth challenge

 

program.

 

†††††† (b) The district may retain for its administrative expenses an amount not to

 

exceed 3% of the amount of the payment the district receives under this section.

 

†††††† Sec. 25. (1) Unless another method of pupil accounting is enacted, this section

 

applies beginning in 2013-2014.

 

†††††† (2) If a pupil enrolls in a district or intermediate district after the pupil

 

membership count day and, due to the pupilís 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 shall report the enrollment and attendance information to the department. If

 

the pupil transfers from another district or intermediate district, the educating

 

district or intermediate district also shall report the enrollment and attendance

 

information to that other district or intermediate district. Upon receipt of

 

enrollment 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 department shall do both 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

 

pupilís enrollment and attendance, if any, so that the districtís or intermediate

 


districtís 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 pupilís full-time equated

 

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

 

†††††† (b) Include in 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, not to exceed a number

 

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

 

which the pupil was reported under this section as previously enrolled in 1 or more

 

other districts or intermediate districts, an amount equal to 1/180 of the 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 pupilís full-time equated status as affected by the membership

 

definition under section 6(4).

 

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

 

(2) shall take effect as of the date that the pupil becomes enrolled and in attendance

 

in the educating district or intermediate district, and the department shall base all

 

subsequent payments under this act ARTICLE for the fiscal year to the affected

 

districts or intermediate districts on this recalculation of state school aid.

 

†††††† (4) If a pupil enrolls in an educating district or intermediate district as

 

described in subsection (2), if adjustments are made in calculations pursuant to

 

subsection (1) due to that enrollment, and if the pupil subsequently ceases to be

 

enrolled and in attendance in the educating district or intermediate district, the

 

educating district or intermediate district that received an adjustment in its

 

membership calculation under subsection (2) shall notify the department of the last

 


date of the pupilís enrollment and attendance in the educating district or

 

intermediate district and the number of days the pupil was enrolled in the educating

 

district or intermediate district.

 

†††††† (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 (2), if any, and

 

the educating district or intermediate district shall provide to the department all

 

information the department requires 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 districtís or

 

intermediate districtís membership calculation under this section due to the pupilís

 

enrollment and attendance.

 

†††††† Sec. 26a. (1) From the state school aid fund appropriation in section 11, there

 

is allocated EACH FISCAL YEAR 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 FISCAL YEAR 2013-2014 AND FISCAL

 

YEAR 2014-2015 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 OR 2014 AS APPLICABLE. The allocations shall be made not later than 60

 

days after the department of treasury certifies to the department and to the state

 

budget director that the department of treasury has received all necessary information

 

to properly determine the amounts due to each eligible recipient.

 

†††††† (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 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 AND FOR 2014-

 

2015 AN AMOUNT NOT TO EXCEED $4,410,500.00 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 EACH

 

FISCAL YEAR an amount not to exceed $276,800.00 $224,000.00 for 2011-2012 2013-2014

 

AND 2014-2015 and an amount not to exceed $347,800.00 for 2012-2013 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 EACH FISCAL YEAR for 2012-2013 2013-2014 AND 2014-2015 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; FOR PRESCHOOL PROGRAMS

 

PURSUANT TO SECTION 32D; 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 EACH

 

FISCAL YEAR for 2012-2013 2013-2014 AND 2014-2015 an amount not to exceed

 

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

 

awarded for 5 consecutive years beginning with 2003-2004 in a form and manner approved

 


jointly by the department and the department of community health. Each grant recipient

 

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

 

grant award for the duration of the 5-year period after the noncompliance. To continue

 

to receive funding for a child and adolescent health center under this section a grant

 

recipient shall ensure that the child and adolescent health center has an advisory

 

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

 

parents or legal guardians of school-aged children. A child and adolescent health

 

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

 

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

 

used to support child and adolescent health center services provided to children up to

 

age 21. If any funds allocated under this subsection are not used for the purposes of

 

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

 

shall be used that fiscal year to avoid or minimize any proration that would otherwise

 

be required under subsection (14) for that fiscal year.

 

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

 

FISCAL YEAR for 2012-2013 2013-2014 AND 2014-2015 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 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 ANY district may use up

 

to 100% of the funds it receives under this section to reduce the ratio of pupils to

 

teachers in grades K-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 EACH

 

FISCAL YEAR an amount not to exceed $22,495,100.00 for 2012-2013 2013-2014 AND 2014-

 

2015 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 AND 2014-2015 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 EACH

 

FISCAL YEAR an amount not to exceed $9,625,000.00 $5,625,000.00 for 2012-2013 2013-

 

2014 AND 2014-2015 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 $174,275,000.00 for

 

2012-2013 2013-2014 AND AN AMOUNT NOT TO EXCEED $239,275,000.00 FOR 2014-2015. Funds

 

allocated under this section 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 CHILDíS

 

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 shall be allocated to intermediate

 

districts or consortia of intermediate districts. An intermediate district or

 

consortium of intermediate districts receiving funding under this section shall act as

 

the fiduciary for the great start readiness programs. For 2012-2013 2013-2014, the

 

fiduciary intermediate districts and consortia of intermediate districts shall

 

allocate the funding under this section as follows:

 

†††††† (a) An AN amount not to exceed $100,400,000.00 $174,275,000.00 AND FOR 2014-

 

2015, AN AMOUNT NOT TO EXCEED $239,275,000.00 IS 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, 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 FOR EACH FISCAL YEAR an amount

 

not to exceed $300,000.00 for 2012-2013 2013-2014 AND 2014-2015 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) PARTICIPATING IN THE STATEíS 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 FROM

 

THIS SECTION are children who live with families with a household income that is equal

 

to or less than 300% of the federal poverty level.

 

†††††† (c) Ensure that the applicant only 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) An intermediate district or consortium of intermediate districts receiving a

 

grant under this section may PROVIDE SERVICES DIRECTLY OR MAY contract with LOCAL

 

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.

 

†††††† (8) AN INTERMEDIATE DISTRICT OR CONSORTIUM OF INTERMEDIATE DISTRICTS RECEIVING A

 

GRANT UNDER THIS SECTION MUST 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 20 PERCENT OF ITS TOTAL SLOT

 

ALLOCATION. IF THE INTERMEDIATE DISTRICT OR CONSORTIUM OF INTERMEDIATE DISTRICTS IS

 

NOT ABLE TO CONTRACT FOR THAT CAPACITY, THE GRANT RECIPIENT MUST NOTIFY THE

 

DEPARTMENT.

 

†††††† (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 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.

 

†††††† (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.

 

†††††† (11) A grant recipient 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 300% OF THE FEDERAL POVERTY LEVEL

 

TO BE USED BY ALL 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.

 

†††††† Sec. 32p. (1) From the school aid fund appropriation in section 11, there is

 

allocated EACH FISCAL YEAR an amount not to exceed $10,900,000.00 TO INTERMEDIATE

 

DISTRICTS for 2012-2013 2013-2014 AND 2014-2015 for the purpose of providing early

 

childhood funding to intermediate school districts in block grants SUPPORTING THE

 

ACTIVITIES REQUIRED UNDER SUBSECTION (2) AND PROVIDING EARLY CHILDHOOD PROGRAMS

 

SIMILAR TO THOSE UNDER FORMER SECTION 32B AS IN EFFECT FOR 2001-2002 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 100% OF THE AMOUNT ALLOCATED TO THE INTERMEDIATE DISTRICT UNDER THIS SECTION

 

FOR THE IMMEDIATELY PRECEDING FISCAL YEAR. 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 SEPTEMBER 15, 2012, OF THE PRIOR STATE FISCAL YEAR

 

indicating the activities planned to be provided and children served under the block

 

grant.

 

†††††† (2) (A) 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 AND

 

PARENT COALITION is 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:

 

†††††† (I) CHILDREN BORN HEALTHY.

 

†††††† (II) CHILDREN HEALTHY, THRIVING, AND DEVELOPMENTALLY ON TRACK FROM BIRTH TO

 

THIRD GRADE.

 

†††††† (III) CHILDREN DEVELOPMENTALLY READY TO SUCCEED IN SCHOOL AT THE TIME OF SCHOOL

 

ENTRY.

 

†††††† (IV) CHILDREN PREPARED TO SUCCEED IN FOURTH GRADE AND BEYOND BY READING

 

PROFICIENTLY BY THE END OF THIRD GRADE.

 

†††††† (B) 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(4)(H) 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 reconstitutee 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:

 

†††††† (I) PHYSICAL HEALTH.

 

†††††† (II) SOCIAL-EMOTIONAL HEALTH.

 

†††††† (III) FAMILY SUPPORTS AND BASIC NEEDS.

 

†††††† (IV) PARENT EDUCATION AND CHILD ADVOCACY.

 

†††††† (V) EARLY EDUCATION AND CARE.

 


†††††† (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 PRIOR 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.

 

†††††† (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 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 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 EACH FISCAL YEAR for 2012-2013 2013-2014 and 2014-2015 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 technology, funded from DED-OESE,

 

educational technology state grant funds.

 


†††††† (B) (c) An amount estimated at $111,111,900.00 for the purpose of preparing,

 

training, and recruiting high-quality teachers and class size reduction, funded from

 

DED-OESE, improving teacher quality funds.

 

†††††† (C) (d) An amount estimated at $12,200,000.00 for programs to teach English to

 

limited English proficient (LEP) children, funded from DED-OESE, language acquisition

 

state grant funds.

 

†††††† (D) (e) An amount estimated at $10,286,500.00 for the Michigan charter school

 

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

 

†††††† (E) (f) An amount estimated at $2,393,500.00 for rural and low income schools,

 

funded from DED-OESE, rural and low income school funds.

 

†††††† (F) (g) An amount estimated at $591,500,000.00 to provide supplemental programs

 

to enable educationally disadvantaged children to meet challenging academic standards,

 

funded from DED-OESE, title I, disadvantaged children funds.

 

†††††† (h) An amount estimated at $250,000.00 for the purpose of providing unified

 

family literacy programs, funded from DED-OESE, title I, even start funds.

 

†††††† (G) (i) An amount estimated at $8,878,000.00 for the purpose of identifying and

 

serving migrant children, funded from DED-OESE, title I, migrant education funds.

 

†††††† (H) (j) An amount estimated at $40,050,000.00 for the purpose of providing

 

high-quality extended learning opportunities, after school and during the summer, for

 

children in low-performing schools, funded from DED-OESE, twenty-first century

 

community learning center funds.

 

†††††† (I) (k) An amount estimated at $24,600,000.00 to help support local school

 

improvement efforts, funded from DED-OESE, title I, local school improvement grants.

 

†††††† (2) From the federal funds appropriated in section 11, there is allocated EACH

 

FISCAL YEAR for 2012-2013 2013-2014 AND 2014-2015 to districts, intermediate

 

districts, and other eligible entities all available federal funding, estimated at

 

$33,514,100.00 $31,700,000.00 for the following programs that are funded by federal

 


grants:

 

†††††† (a) An amount estimated at $600,000.00 for acquired immunodeficiency syndrome

 

education grants, funded from HHS Ė center for disease control, AIDS funding.

 

†††††† (b) An amount estimated at $1,814,100.00 $2,600,000.00 to provide services to

 

homeless children and youth, funded from DED-OVAE, homeless children and youth funds.

 

†††††† (c) An amount estimated at $2,600,000.00 for serve America grants, funded from

 

the corporation for national and community service funds.

 

†††††† (C) (d) An amount estimated at $28,500,000.00 for providing career and

 

technical education services to pupils, funded from DED-OVAE, basic grants to states.

 

†††††† (3) To the extent allowed under federal law, the funds allocated under

 

subsection (1)(g), (h), (F) and (k) (I) may be used for 1 or more reading improvement

 

programs that meet at least 1 of the following:

 

†††††† (a) A research-based, validated, structured reading program that aligns

 

learning resources to state standards and includes continuous assessment of pupils and

 

individualized education plans for pupils.

 

†††††† (b) A mentoring program that is a research-based, validated program or a

 

statewide 1-to-1 mentoring program and is designed to enhance the independence and

 

life quality of pupils who are mentally impaired by providing opportunities for

 

mentoring and integrated employment.

 

†††††† (c) A cognitive development program that is a research-based, validated

 

educational service program focused on assessing and building essential cognitive and

 

perceptual learning abilities to strengthen pupil concentration and learning.

 

†††††† (d) A structured mentoring-tutorial reading program for pupils in preschool to

 

grade 4 that is a research-based, validated program that develops individualized

 

educational plans based on each pupil's age, assessed needs, reading level, interests,

 

and learning style.

 

†††††† (4) All federal funds allocated under this section shall be distributed in

 


accordance with federal law and with flexibility provisions outlined in Public Law

 

107-116, and in the education flexibility partnership act of 1999, Public Law 106-25.

 

Notwithstanding section 17b, payments of federal funds to districts, intermediate

 

districts, and other eligible entities under this section shall be paid on a schedule

 

determined by the department.

 

†††††† (5) For the purposes of applying for federal grants appropriated under this

 

article, the department shall allow an intermediate district to submit a consortium

 

application on behalf of 2 or more districts with the agreement of those districts as

 

appropriate according to federal rules and guidelines.

 

†††††† (6) As used in this section:

 

†††††† (a) "DED" means the United States department of education.

 

†††††† (b) "DED-OESE" means the DED office of elementary and secondary education.

 

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

 

†††††† (d) "HHS" means the United States department of health and human services.

 

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

 

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

 

2011-2012 2013-2014 an amount not to exceed $956,769,100.00 $980,569,100.00 and there

 

is allocated an amount not to exceed $996,269,100.00 $1,004,869,100.00 for 2012-2013

 

2014-2015 from state sources and all available federal funding under sections 611 to

 

619 of part B of the individuals with disabilities education act, 20 USC 1411 to 1419,

 

estimated at $363,400,000.00 $370,000,000.00 EACH YEAR for 2011-2012 and estimated at

 

$365,000,000.00 for 2012-2013 2013-2014 AND 2014-2015, plus any carryover federal

 

funds from previous year appropriations. The allocations under this subsection are for

 

the purpose of reimbursing districts and intermediate districts for special education

 

programs, services, and special education personnel as prescribed in article 3 of the

 

revised school code, MCL 380.1701 to 380.1766; net tuition payments made by

 

intermediate districts to the Michigan schools for the deaf and blind; and special

 


education programs and services for pupils who are eligible for special education

 

programs and services according to statute or rule. For meeting the costs of special

 

education programs and services not reimbursed under this article, a district or

 

intermediate district may use money in general funds or special education funds, not

 

otherwise restricted, or contributions from districts to intermediate districts,

 

tuition payments, gifts and contributions from individuals or other entities, or

 

federal funds that may be available for this purpose, as determined by the

 

intermediate district plan prepared pursuant to article 3 of the revised school code,

 

MCL 380.1701 to 380.1766. All federal funds allocated under this section in excess of

 

those allocated under this section for 2002-2003 may be distributed in accordance with

 

the flexible funding provisions of the individuals with disabilities education act,

 

Public Law 108-446, including, but not limited to, 34 CFR 300.206 and 300.208.

 

Notwithstanding section 17b, payments of federal funds to districts, intermediate

 

districts, and other eligible entities under this section shall be paid on a schedule

 

determined by the department.

 

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

 

amount necessary, estimated at $247,500,000.00 $258,300,000.00 for 2011-2012 2013-2014

 

and estimated at $257,400,000.00 $263,000,000.00 for 2012-2013 2014-2015, for payments

 

toward reimbursing districts and intermediate districts for 28.6138% of total approved

 

costs of special education, excluding costs reimbursed under section 53a, and 70.4165%

 

of total approved costs of special education transportation. Allocations under this

 

subsection shall be made as follows:

 

†††††† (a) The initial amount allocated to a district under this subsection toward

 

fulfilling the specified percentages shall be calculated by multiplying the district's

 

special education pupil membership, excluding pupils described in subsection (11),

 

times the foundation allowance under section 20 of the pupil's district of residence,

 

not to exceed the basic foundation allowance under section 20 for the current fiscal

 


year, or, for a special education pupil in membership in a district that is a public

 

school academy, times an amount equal to the amount per membership pupil calculated

 

under section 20(6) or, for a pupil described in this subsection who is counted in

 

membership in the education achievement system, times an amount equal to the amount

 

per membership pupil under section 20(7). For an intermediate district, the amount

 

allocated under this subdivision toward fulfilling the specified percentages shall be

 

an amount per special education membership pupil, excluding pupils described in

 

subsection (11), and shall be calculated in the same manner as for a district, using

 

the foundation allowance under section 20 of the pupil's district of residence, not to

 

exceed the basic foundation allowance under section 20 for the current fiscal year.

 

†††††† (b) After the allocations under subdivision (a), districts and intermediate

 

districts for which the payments calculated under subdivision (a) do not fulfill the

 

specified percentages shall be paid the amount necessary to achieve the specified

 

percentages for the district or intermediate district.

 

†††††† (3) From the funds allocated under subsection (1), there is allocated each

 

fiscal year for 2011-2012 2013-2014 and for 2012-2013 2014-2015 an amount not to

 

exceed $1,000,000.00 to make payments to districts and intermediate districts under

 

this subsection. If the amount allocated to a district or intermediate district for a

 

fiscal year under subsection (2)(b) is less than the sum of the amounts allocated to

 

the district or intermediate district for 1996-97 under sections 52 and 58, there is

 

allocated to the district or intermediate district for the fiscal year an amount equal

 

to that difference, adjusted by applying the same proration factor that was used in

 

the distribution of funds under section 52 in 1996-97 as adjusted to the district's or

 

intermediate district's necessary costs of special education used in calculations for

 

the fiscal year. This adjustment is to reflect reductions in special education program

 

operations or services between 1996-1997 and subsequent fiscal years. Adjustments for

 

reductions in special education program operations or services shall be made in a

 


manner determined by the department and shall include adjustments for program or

 

service shifts.

 

†††††† (4) If the department determines that the sum of the amounts allocated for a

 

fiscal year to a district or intermediate district under subsection (2)(a) and (b) is

 

not sufficient to fulfill the specified percentages in subsection (2), then the

 

shortfall shall be paid to the district or intermediate district during the fiscal

 

year beginning on the October 1 following the determination and payments under

 

subsection (3) shall be adjusted as necessary. If the department determines that the

 

sum of the amounts allocated for a fiscal year to a district or intermediate district

 

under subsection (2)(a) and (b) exceeds the sum of the amount necessary to fulfill the

 

specified percentages in subsection (2), then the department shall deduct the amount

 

of the excess from the district's or intermediate district's payments under this

 

article for the fiscal year beginning on the October 1 following the determination and

 

payments under subsection (3) shall be adjusted as necessary. However, if the amount

 

allocated under subsection (2)(a) in itself exceeds the amount necessary to fulfill

 

the specified percentages in subsection (2), there shall be no deduction under this

 

subsection.

 

†††††† (5) State funds shall be allocated on a total approved cost basis. Federal

 

funds shall be allocated under applicable federal requirements, except that an amount

 

not to exceed $3,500,000.00 may be allocated by the department each fiscal year for

 

2011-2012 2013-2014 and for 2012-2013 2014-2015 to districts, intermediate districts,

 

or other eligible entities on a competitive grant basis for programs, equipment, and

 

services that the department determines to be designed to benefit or improve special

 

education on a statewide scale.

 

†††††† (6) From the amount allocated in subsection (1), there is allocated an amount

 

not to exceed $2,200,000.00 each fiscal year for 2011-2012 2013-2014 and for 2012-2013

 

2014-2015 to reimburse 100% of the net increase in necessary costs incurred by a

 


district or intermediate district in implementing the revisions in the administrative

 

rules for special education that became effective on July 1, 1987. As used in this

 

subsection, "net increase in necessary costs" means the necessary additional costs

 

incurred solely because of new or revised requirements in the administrative rules

 

minus cost savings permitted in implementing the revised rules. Net increase in

 

necessary costs shall be determined in a manner specified by the department.

 

†††††† (7) For purposes of sections 51a to 58, all of the following apply:

 

†††††† (a) "Total approved costs of special education" shall be determined in a manner

 

specified by the department and may include indirect costs, but shall not exceed 115%

 

of approved direct costs for section 52 and section 53a programs. The total approved

 

costs include salary and other compensation for all approved special education

 

personnel for the program, including payments for social security and Medicare and

 

public school employee retirement system contributions. The total approved costs do

 

not include salaries or other compensation paid to administrative personnel who are

 

not special education personnel as defined in section 6 of the revised school code,

 

MCL 380.6. Costs reimbursed by federal funds, other than those federal funds included

 

in the allocation made under this article, are not included. Special education

 

approved personnel not utilized full time in the evaluation of students or in the

 

delivery of special education programs, ancillary, and other related services shall be

 

reimbursed under this section only for that portion of time actually spent providing

 

these programs and services, with the exception of special education programs and

 

services provided to youth placed in child caring institutions or juvenile detention

 

programs approved by the department to provide an on-grounds education program.

 

†††††† (b) Beginning with the 2004-2005 fiscal year, a district or intermediate

 

district that employed special education support services staff to provide special

 

education support services in 2003-2004 or in a subsequent fiscal year and that in a

 

fiscal year after 2003-2004 receives the same type of support services from another

 


district or intermediate district shall report the cost of those support services for

 

special education reimbursement purposes under this article. This subdivision does not

 

prohibit the transfer of special education classroom teachers and special education

 

classroom aides if the pupils counted in membership associated with those special

 

education classroom teachers and special education classroom aides are transferred and

 

counted in membership in the other district or intermediate district in conjunction

 

with the transfer of those teachers and aides.

 

†††††† (c) If the department determines before bookclosing for a fiscal year that the

 

amounts allocated for that fiscal year under subsections (2), (3), (6), and (11) and

 

sections 53a, 54, and 56 will exceed expenditures for that fiscal year under

 

subsections (2), (3), (6), and (11) and sections 53a, 54, and 56, then for a district

 

or intermediate district whose reimbursement for that fiscal year would otherwise be

 

affected by subdivision (b), subdivision (b) does not apply to the calculation of the

 

reimbursement for that district or intermediate district and reimbursement for that

 

district or intermediate district shall be calculated in the same manner as it was for

 

2003-2004. If the amount of the excess allocations under subsections (2), (3), (6),

 

and (11) and sections 53a, 54, and 56 is not sufficient to fully fund the calculation

 

of reimbursement to those districts and intermediate districts under this subdivision,

 

then the calculations and resulting reimbursement under this subdivision shall be

 

prorated on an equal percentage basis. This reimbursement shall not be made after

 

2014-2015.

 

†††††† (C) (d) Reimbursement for ancillary and other related services, as defined by R

 

340.1701c of the Michigan administrative code, shall not be provided when those

 

services are covered by and available through private group health insurance carriers

 

or federal reimbursed program sources unless the department and district or

 

intermediate district agree otherwise and that agreement is approved by the state

 

budget director. Expenses, other than the incidental expense of filing, shall not be

 


borne by the parent. In addition, the filing of claims shall not delay the education

 

of a pupil. A district or intermediate district shall be responsible for payment of a

 

deductible amount and for an advance payment required until the time a claim is paid.

 

†††††† (D) (e) Beginning with calculations for 2004-2005, if an intermediate district

 

purchases a special education pupil transportation service from a constituent district

 

that was previously purchased from a private entity; if the purchase from the

 

constituent district is at a lower cost, adjusted for changes in fuel costs; and if

 

the cost shift from the intermediate district to the constituent does not result in

 

any net change in the revenue the constituent district receives from payments under

 

sections 22b and 51c, then upon application by the intermediate district, the

 

department shall direct the intermediate district to continue to report the cost

 

associated with the specific identified special education pupil transportation service

 

and shall adjust the costs reported by the constituent district to remove the cost

 

associated with that specific service.

 

†††††† (8) A pupil who is enrolled in a full-time special education program conducted

 

or administered by an intermediate district or a pupil who is enrolled in the Michigan

 

schools for the deaf and blind shall not be included in the membership count of a

 

district, but shall be counted in membership in the intermediate district of

 

residence.

 

†††††† (9) Special education personnel transferred from 1 district to another to

 

implement the revised school code shall be entitled to the rights, benefits, and

 

tenure to which the person would otherwise be entitled had that person been employed

 

by the receiving district originally.

 

†††††† (10) If a district or intermediate district uses money received under this

 

section for a purpose other than the purpose or purposes for which the money is

 

allocated, the department may require the district or intermediate district to refund

 

the amount of money received. Money that is refunded shall be deposited in the state

 


treasury to the credit of the state school aid fund.

 

†††††† (11) From the funds allocated in subsection (1), there is allocated EACH FISCAL

 

YEAR the amount necessary, estimated at $5,300,000.00 $4,500,000.00 for 2011-2012

 

2013-2014 and estimated at $5,600,000.00 $4,600,000.00 for 2012-2013 2014-2015, to pay

 

the foundation allowances for pupils described in this subsection. The allocation to a

 

district under this subsection shall be calculated by multiplying the number of pupils

 

described in this subsection who are counted in membership in the district times the

 

foundation allowance under section 20 of the pupil's district of residence, not to

 

exceed the basic foundation allowance under section 20 for the current fiscal year,

 

or, for a pupil described in this subsection who is counted in membership in a

 

district that is a public school academy, times an amount equal to the amount per

 

membership pupil under section 20(6) or, for a pupil described in this subsection who

 

is counted in membership in the education achievement system, times an amount equal to

 

the amount per membership pupil under section 20(7). The allocation to an intermediate

 

district under this subsection shall be calculated in the same manner as for a

 

district, using the foundation allowance under section 20 of the pupil's district of

 

residence, not to exceed the basic foundation allowance under section 20 for the

 

current fiscal year. This subsection applies to all of the following pupils:

 

†††††† (a) Pupils described in section 53a.

 

†††††† (b) Pupils counted in membership in an intermediate district who are not

 

special education pupils and are served by the intermediate district in a juvenile

 

detention or child caring facility.

 

†††††† (c) Pupils with an emotional impairment counted in membership by an

 

intermediate district and provided educational services by the department of community

 

health.

 

†††††† (12) If it is determined that funds allocated under subsection (2) or (11) or

 

under section 51c will not be expended, funds up to the amount necessary and available

 


may be used to supplement the allocations under subsection (2) or (11) or under

 

section 51c in order to fully fund those allocations. After payments under subsections

 

(2) and (11) and section 51c, the remaining expenditures from the allocation in

 

subsection (1) shall be made in the following order:

 

†††††† (a) 100% of the reimbursement required under section 53a.

 

†††††† (b) 100% of the reimbursement required under subsection (6).

 

†††††† (c) 100% of the payment required under section 54.

 

†††††† (d) 100% of the payment required under subsection (3).

 

†††††† (e) 100% of the payments under section 56.

 

†††††† (13) The allocations under subsections (2), (3), and (11) shall be allocations

 

to intermediate districts only and shall not be allocations to districts, but instead

 

shall be calculations used only to determine the state payments under section 22b.

 

†††††† (14) If a public school academy enrolls pursuant to this section a pupil who

 

resides outside of the intermediate district in which the public school academy is

 

located and who is eligible for special education programs and services according to

 

statute or rule, or who is a child with disabilities, as defined under the individuals

 

with disabilities education act, Public Law 108-446, the provision of special

 

education programs and services and the payment of the added costs of special

 

education programs and services for the pupil are the responsibility of the district

 

and intermediate district in which the pupil resides unless the enrolling district or

 

intermediate district has a written agreement with the district or intermediate

 

district in which the pupil resides or the public school academy for the purpose of

 

providing the pupil with a free appropriate public education and the written agreement

 

includes at least an agreement on the responsibility for the payment of the added

 

costs of special education programs and services for the pupil.

 

†††††† Sec. 51b. A district or intermediate district shall not receive funds under

 

this article SECTION 51A unless the district or intermediate district complies with

 


rules promulgated under article 3 of the revised school code, being sections 380.1701

 

to 380.1766 of the Michigan Compiled Laws.

 

†††††† Sec. 51c. As required by the court in the consolidated cases known as Durant v

 

State of Michigan, Michigan supreme court docket no. 104458-104492, from the

 

allocation under section 51a(1), there is allocated each fiscal year for 2011-2012

 

2013-2014 and for 2012-2013 2014-2015 the amount necessary, estimated at

 

$648,700,000.00 $662,500,000.00 for 2011-2012 2013-2014 and estimated at

 

$678,000,000.00 $682,000,000.00 for 2012-2013 2014-2015, for payments to reimburse

 

districts for 28.6138% of total approved costs of special education excluding costs

 

reimbursed under section 53a, and 70.4165% of total approved costs of special

 

education transportation. Funds allocated under this section that are not expended in

 

the state fiscal year for which they were alloc