HB-4313, As Passed House, May 2, 2017

HB-4313, As Passed House, May 2, 2017

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4313

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 3, 4, 6, 8b, 11, 11a, 11j, 11k, 11m, 11r, 11s,

 

15, 18, 18c, 20, 20d, 20f, 20m, 21g, 22a, 22b, 22d, 22g, 24, 24a,

 

24c, 25f, 25g, 26a, 26b, 26c, 31a, 31b, 31d, 31f, 32d, 32p, 35a,

 

39, 39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 56, 61a, 61b, 61c, 62,

 

64b, 67, 74, 81, 94, 94a, 98, 99h, 99s, 99t, 102d, 104, 104c, 104d,

 

107, 147, 147a, 147c, 152a, 152b, 166b, 201, 201a, 203, 206, 207a,

 

207b, 207c, 209, 210b, 210e, 217, 223, 224, 225, 226, 229, 229a,

 

230, 236, 236a, 236b, 236c, 237b, 241, 244, 245, 251, 252, 254,

 

256, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 274, 274c, 275,

 

276, 277, 278, 279, 280, 281, 282, 283, 284, and 286a (MCL

 

388.1603, 388.1604, 388.1606, 388.1608b, 388.1611, 388.1611a,

 


388.1611j, 388.1611k, 388.1611m, 388.1611r, 388.1611s, 388.1615,

 

388.1618, 388.1618c, 388.1620, 388.1620d, 388.1620f, 388.1620m,

 

388.1621g, 388.1622a, 388.1622b, 388.1622d, 388.1622g, 388.1624,

 

388.1624a, 388.1624c, 388.1625f, 388.1625g, 388.1626a, 388.1626b,

 

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

 

388.1632p, 388.1635a, 388.1639, 388.1639a, 388.1641, 388.1651a,

 

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

 

388.1661a, 388.1661b, 388.1661c, 388.1662, 388.1664b, 388.1667,

 

388.1674, 388.1681, 388.1694, 388.1694a, 388.1698, 388.1699h,

 

388.1699s, 388.1699t, 388.1702d, 388.1704, 388.1704c, 388.1704d,

 

388.1707, 388.1747, 388.1747a, 388.1747c, 388.1752a, 388.1752b,

 

388.1766b, 388.1801, 388.1801a, 388.1803, 388.1806, 388.1807a,

 

388.1807b, 388.1807c, 388.1809, 388.1810b, 388.1810e, 388.1817,

 

388.1823, 388.1824, 388.1825, 388.1826, 388.1829, 388.1829a,

 

388.1830, 388.1836, 388.1836a, 388.1836b, 388.1836c, 388.1837b,

 

388.1841, 388.1844, 388.1845, 388.1851, 388.1852, 388.1854,

 

388.1856, 388.1863, 388.1863a, 388.1864, 388.1865, 388.1865a,

 

388.1867, 388.1868, 388.1869, 388.1870, 388.1874, 388.1874c,

 

388.1875, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880,

 

388.1881, 388.1882, 388.1883, 388.1884, and 388.1886a), sections 3,

 

4, 6, 11, 11a, 11j, 11k, 11m, 11r, 15, 18, 20d, 20f, 22a, 22b, 22d,

 

22g, 24, 24a, 24c, 25f, 25g, 26a, 26b, 26c, 31a, 31d, 31f, 32d,

 

32p, 35a, 39, 39a, 41, 51c, 51d, 53a, 54, 56, 61b, 62, 64b, 67, 74,

 

81, 94, 94a, 99s, 102d, 104, 104d, 107, 147, 147a, 147c, 152a,

 

166b, 201, 201a, 203, 206, 207a, 207b, 207c, 209, 210b, 217, 223,

 

224, 225, 226, 229a, 230, 236, 236a, 236b, 236c, 237b, 241, 251,

 

252, 254, 256, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 274,

 


274c, 275, 276, 277, 278, 279, 280, 281, 282, 283, and 284 as

 

amended and sections 11s, 20m, 21g, 31b, 54b, 152b, 210e, and 286a

 

as added by 2016 PA 249, sections 8b, 229, and 244 as amended by

 

2015 PA 85, section 18c as amended by 2012 PA 201, sections 20,

 

61a, 61c, 98, 99h, 99t, and 104c as amended by 2016 PA 313, section

 

51a as amended by 2016 PA 534, and section 245 as amended by 2014

 

PA 196, and by adding sections 22m, 64d, 95b, 164g, 164h, 239b,

 

249, 250, and 274d; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) "Achievement authority" means the education

 

achievement authority, the public body corporate and special

 

authority initially created under section 5 of article III and

 

section 28 of article VII of the state constitution of 1963 and the

 

urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

 

124.512, by an interlocal agreement effective August 11, 2011,

 

between the school district of the city of Detroit and the board of

 

regents of Eastern Michigan University, a state public university.

 

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

 

education achievement system operated, managed, authorized,

 

established, or overseen by the achievement authority.

 

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

 

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

 

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

 

6(7).

 

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

 

public school academy.

 

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

 


and information created in section 94a.

 

     (4) (6) "Community district" means a school district organized

 

under part 5b of the revised school code.

 

     (5) (7) "Cooperative education program" means a written

 

voluntary agreement between and among districts to provide certain

 

educational programs for pupils in certain groups of districts. The

 

written agreement shall be approved by all affected districts at

 

least annually and shall specify the educational programs to be

 

provided and the estimated number of pupils from each district who

 

will participate in the educational programs.

 

     (6) (8) "Department", except in section 107, means the

 

department of education.

 

     (7) (9) "District" means a local school district established

 

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

 

13, 20, 22a, 31a, 51a(14), 105, 105c, and 166b, a public school

 

academy. Except in sections 6(4), 6(6), 6(8), 13, 20, 22a, 31a,

 

105, 105c, and 166b, district also includes the education

 

achievement system. Except in section 20, district also includes a

 

community district.

 

     (8) (10) "District of residence", except as otherwise provided

 

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

 

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

 

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

 

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

 

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

 

shall be considered to be the district or intermediate district in

 

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


pupil under court jurisdiction who is placed outside the district

 

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

 

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

 

be the educating district or educating intermediate district.

 

     (9) (11) "District superintendent" means the superintendent of

 

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

 

, or the chancellor of the achievement authority.

 

     Sec. 4. (1) "Education achievement system" means the

 

achievement authority and all achievement schools.

 

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

 

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

 

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

 

above the eighth grade. For the purposes of calculating universal

 

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

 

children enrolled in a preschool program operated by a district in

 

its facilities.

 

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

 

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

 

necessarily in attendance on the pupil membership count day in an

 

extended year program. The mandatory clock hours shall be completed

 

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

 

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

 

shall prescribe pupil, personnel, and other reporting requirements

 

for the educational program.

 

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

 

commences October 1 and continues through September 30.

 

     (4) (5) "High school equivalency certificate" means a


certificate granted for the successful completion of a high school

 

equivalency test.

 

     (5) (6) "High school equivalency test" means the G.E.D. test

 

developed by the GED Testing Service, the Test Assessing Secondary

 

Completion (TASC) developed by CTS/McGraw-Hill, the HISET test

 

developed by the Education Testing Service (ETS), or another

 

comparable test approved by the department of talent and economic

 

development.

 

     (6) (7) "High school equivalency test preparation program"

 

means a program that has high school level courses in English

 

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

 

prepares an individual to successfully complete a high school

 

equivalency test.

 

     (7) (8) "High school pupil" means a pupil in membership in

 

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

 

the eighth grade.

 

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

 

district or by an intermediate district for special education

 

pupils from several districts in programs for pupils with autism

 

spectrum disorder, pupils with severe cognitive impairment, pupils

 

with moderate cognitive impairment, pupils with severe multiple

 

impairments, pupils with hearing impairment, pupils with visual

 

impairment, and pupils with physical impairment or other health

 

impairment. Programs for pupils with emotional impairment housed in

 

buildings that do not serve regular education pupils also qualify.

 

Unless otherwise approved by the department, a center program

 

either shall serve all constituent districts within an intermediate


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

 

pupils residing in the operating district. In addition, special

 

education center program pupils placed part-time in noncenter

 

programs to comply with the least restrictive environment

 

provisions of section 612 of part B of the individuals with

 

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

 

program pupils for pupil accounting purposes for the time scheduled

 

in either a center program or a noncenter program.

 

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

 

annual completion and pupil dropout rate that is calculated by the

 

center pursuant to nationally recognized standards.

 

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

 

report of the number of pupils, excluding adult education

 

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

 

district's, public school academy's, or intermediate district's

 

membership shall be adjusted as provided under section 25e for


pupils who enroll after the pupil membership count day in a strict

 

discipline academy operating under sections 1311b to 1311m of the

 

revised school code, MCL 380.1311b to 380.1311m. However, for a

 

district that is a community district in its first year of

 

operation, "membership" means 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 in the community district

 

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 of pupils in grades K to 12 actually

 

enrolled and in regular daily attendance in a qualifying school

 

district as defined in section 5 of the revised school code, MCL

 

380.5, for the immediately preceding school year. All pupil counts

 

used in this subsection are as determined by the department and

 

calculated by adding the number of pupils registered for attendance

 

plus pupils received by transfer and minus pupils lost as defined

 

by rules promulgated by the superintendent, and as corrected by a

 

subsequent department audit. For the purposes of this section and

 

section 6a, for a school of excellence that is a cyber school, as

 

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

 

is in compliance with section 553a of the revised school code, MCL

 

380.553a, a pupil's participation in the cyber school's educational

 

program is considered regular daily attendance; for the education

 

achievement system, a pupil's participation in a virtual

 

educational program of the education achievement system or of an

 

achievement school is considered regular daily attendance; and for

 

a district a pupil's participation in a virtual course as defined


in section 21f is considered regular daily attendance. The amount

 

of the foundation allowance for a pupil in membership is determined

 

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

 

the following, as applicable, apply to determining the membership

 

of a district, a public school academy, the education achievement

 

system, or an intermediate district:

 

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

 

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

 

in the pupil's educating district or districts. An Except as

 

otherwise provided in this subsection, an individual pupil shall

 

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

 

membership.

 

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

 

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

 

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

 

of residence does not give the educating district its approval to

 

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

 

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

 

the requirement that the educating district must have the approval

 

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

 

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

 

district.

 

     (c) A special education pupil educated by the intermediate

 

district shall be counted in membership in the intermediate

 

district.

 

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

 

program of a juvenile detention facility, a child caring


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

 

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

 

or intermediate district approved by the department to operate the

 

program.

 

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

 

blind Schools for the Deaf and Blind shall be counted in membership

 

in the pupil's intermediate district of residence.

 

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

 

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

 

single district or in an area vocational-technical education

 

program established pursuant to section 690 of the revised school

 

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

 

residence.

 

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

 

counted in membership in the public school academy.

 

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

 

in membership in the education achievement system.For the purposes

 

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

 

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

 

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

 

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

 

cyber school's educational program is considered regular daily

 

attendance, and for a district or public school academy, a pupil's

 

participation in a virtual course as defined in section 21f is

 

considered regular daily attendance.

 

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

 

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


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

 

partial fiscal years of operation shall be determined as follows:

 

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

 

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

 

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

 

daily attendance on the pupil membership count day for the current

 

school year and on the supplemental count day for the current

 

school year, as determined by the department and calculated by

 

adding the number of pupils registered for attendance on the pupil

 

membership count day plus pupils received by transfer and minus

 

pupils lost as defined by rules promulgated by the superintendent,

 

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

 

audited count from the supplemental count day for the current

 

school year, and dividing that sum by 2.

 

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

 

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

 

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

 

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

 

enrolled and in regular daily attendance on the supplemental count

 

day for the current school year.

 

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

 

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

 

in membership on the pupil membership count day in the public

 

school academy, the determination of the district's membership

 

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

 

preceding supplemental count day any pupils who are counted in the

 

public school academy on that first pupil membership count day who


were also counted in the district on the immediately preceding

 

supplemental count day.

 

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

 

achievement system, or an intermediate district operating For 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 in

 

membership.

 

     (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 pupils with extreme barriers to education, such as being

 

homeless as defined under 42 USC 11302.

 

     (B) Had dropped out of school.

 

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


current school year.

 

     (iii) If a child does not meet the minimum age requirement to

 

be eligible to attend school for that school year under section

 

1147 of the revised school code, MCL 380.1147, but will be 5 years

 

of age not later than December 1 of that school year, the district

 

may count the child in membership for that school year if the

 

parent or legal guardian has notified the district in writing that

 

he or she intends to enroll the child in kindergarten for that

 

school year.

 

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

 

not be counted in membership. An individual who has achieved a high

 

school equivalency certificate shall not be counted in membership

 

unless the individual is a student with a disability as defined in

 

R 340.1702 of the Michigan administrative code. 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 department of talent and economic

 

development, 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) and section 101.

 

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

 

required under section 101, 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 required under section 101 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

 

required under section 101, 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 required under section 101 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. In

 

determining full-time equated memberships for pupils who are

 

enrolled in a postsecondary institution, a pupil shall not be

 

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

 

of the effect of his or her postsecondary enrollment, including

 

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

 

district to the pupil.

 

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

 

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. The change in the

 

counting of full-time equated memberships for pupils in

 

kindergarten that took effect for 2012-2013 is not a mandate.

 

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

 

education achievement system that has pupils enrolled in a grade

 

level that was not offered by the district , the or public school

 

academy , or the education achievement system in the immediately

 

preceding school year, the number of pupils enrolled in that grade

 

level to be counted in membership is the average of the number of

 

those pupils enrolled and in regular daily attendance on the pupil

 

membership count day and the supplemental count day of the current

 

school year, as determined by the department. Membership shall be

 

calculated by adding the number of pupils registered for attendance

 

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

 

received by transfer and minus pupils lost as defined by rules

 

promulgated by the superintendent, and as corrected by subsequent

 

department audit, plus the final audited count from the

 

supplemental count day for the current school year, and dividing

 

that sum by 2.

 

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

 

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

 

written approval of all parties to the cooperative agreement.

 

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

 

determines through the district's alternative or disciplinary

 

education program that the best instructional placement for a pupil

 

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


population, if that placement is authorized in writing by the

 

district superintendent and district alternative or disciplinary

 

education supervisor, and if the district provides appropriate

 

instruction as described in this subdivision to the pupil at the

 

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

 

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

 

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

 

district actually provides to the pupil divided by the number of

 

hours required under section 101 for full-time equivalency. For the

 

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

 

providing appropriate instruction if all of the following are met:

 

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

 

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

 

apart from the general school population under the supervision of a

 

certificated teacher.

 

     (ii) The district provides instructional materials, resources,

 

and supplies that are comparable to those otherwise provided in the

 

district's alternative education program.

 

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

 

alternative education program.

 

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

 

pupil's transcript.

 

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

 

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

 

with its authorizing body is revoked or the public school academy

 

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

 

or the education achievement system within 45 days after the pupil


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

 

the education achievement system's pupil count for the pupil

 

membership count day to include the pupil in the count.

 

     (w) 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.

 

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

 

as otherwise calculated under this subsection, would be less than

 

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

 

mile, as determined by the department, and if the district does not

 

receive funding under section 22d(2), the district's membership

 

shall be considered to be the membership figure calculated under

 

this subdivision. If a district educates and counts in its

 

membership pupils in grades 9 to 12 who reside in a contiguous

 

district that does not operate grades 9 to 12 and if 1 or both of

 

the affected districts request the department to use the

 

determination allowed under this sentence, the department shall

 

include the square mileage of both districts in determining the

 

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

 

purposes of this subdivision. The membership figure calculated


under this subdivision is the greater of the following:

 

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

 

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

 

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

 

otherwise calculated under this subsection, and dividing the sum of

 

those 3 membership figures by 3.

 

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

 

otherwise calculated under this subsection.

 

     (y) 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 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 or R 340.1862 of the Michigan

 

administrative code Administrative Code shall be determined by

 

dividing the number of hours of service scheduled and provided per

 

year per-pupil by 180.

 

     (z) 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.

 

     (aa) 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 described in this subdivision was

 

counted in membership by the operating district on the immediately

 

preceding supplemental count day, the pupil shall be excluded from

 

the district's immediately preceding supplemental count for the

 

purposes of determining the district's membership.

 

     (bb) A district , a or 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.

 

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

 

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

 

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

 

district. or the education achievement system.

 

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

 

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

 

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

 

district operating the program reports that the pupil was enrolled

 

in the program and was in full attendance. However, if the special

 

membership counting provisions under this subdivision and the

 

operation of the other membership counting provisions under this

 

subsection result in a pupil being counted as more than 1.0 FTE in

 

a fiscal year, the payment made for the pupil under sections 22a

 

and 22b shall not be based on more than 1.0 FTE for that pupil, and

 

any portion of an FTE for that pupil that exceeds 1.0 shall instead


be paid under section 25g. 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 30

 

days after the end of the month. A district shall not report a

 

pupil as being in full attendance for a month unless both of the

 

following are met:

 

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

 

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

 

participates in the program.

 

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

 

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

 

pupil does not meet that definition of satisfactory monthly

 

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

 

satisfactory monthly progress in the immediately preceding month

 

and appropriate interventions are implemented within 10 school days

 

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

 

of satisfactory monthly progress.

 

     (ee) A pupil participating in a virtual course under section

 

21f shall be counted in membership in the district enrolling the

 

pupil.

 

     (ff) 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 other public school academy in which a former

 

pupil of the closed 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 other public school

 

academy receives the same amount of membership aid for the pupil as

 

if the pupil were counted in the district or the education

 

achievement system other public school academy on the supplemental

 

count day of the preceding school year.

 

     (gg) If a special education pupil is expelled under section

 

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

 

380.1311a, and is not in attendance on the pupil membership count

 

day because of the expulsion, and if the pupil remains enrolled in

 

the district and resumes regular daily attendance during that

 

school year, the district's membership shall be adjusted to count

 

the pupil in membership as if he or she had been in attendance on

 

the pupil membership count day.

 

     (hh) A pupil enrolled in a community district shall be counted

 

in membership in the community district. For a community district

 

in its first fiscal year of operations only, until the department

 

is able to calculate the community district's membership, the

 

department shall consider the community district's membership to be

 

the same as the membership for the immediately preceding fiscal

 

year for a district with the same boundaries as the community

 

district that had membership for that fiscal year.

 

     (ii) A pupil enrolled in a middle college program may be

 

counted for more than a total of 1.0 full-time equated membership

 

if the pupil is enrolled in more than the minimum number of

 

instructional days and hours required under section 101 and the

 

pupil is expected to complete the 5-year program with both a high

 

school diploma and at least 60 transferable college credits or is


expected to earn an associate's degree in fewer than 5 years.

 

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

 

section 5 of the revised school code, MCL 380.5.

 

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

 

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

 

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

 

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

 

following:

 

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

 

accordance with section 166b.

 

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

 

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

 

     (c) A pupil enrolled in a public school academy. or the

 

education achievement system.

 

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

 

district of residence under an intermediate district schools of

 

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

 

91 if the intermediate district and its constituent districts have

 

been exempted from section 105.

 

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

 

district of residence if the pupil is enrolled in accordance with

 

section 105 or 105c.

 

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

 

whose parent or legal guardian has made an official written

 

complaint to law enforcement officials and to school officials of

 

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

 

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


the official complaint either indicates that the assault occurred

 

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

 

pupils enrolled in the school the pupil would otherwise attend in

 

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

 

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

 

crime to law enforcement officials for the purposes of this

 

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

 

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

 

that conduct. As used in this subdivision:

 

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

 

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

 

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

 

school premises.

 

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

 

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

 

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

 

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

 

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

 

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

 

pupil membership count day and before the supplemental count day

 

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

 

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

 

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

 

     (h) A pupil enrolled in an alternative education program

 

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

 

who meets 1 or more of the following:

 

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


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

 

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

 

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

 

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

 

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

 

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

 

     (i) A pupil enrolled in the Michigan Virtual School, for the

 

pupil's enrollment in the Michigan Virtual School.

 

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

 

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

 

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

 

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

 

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

 

or legal ward.

 

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

 

expelling district and is reinstated by another school board under

 

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

 

380.1311a.

 

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

 

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

 

district of residence and the enrolling district are both

 

constituent districts of the same intermediate district.

 

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

 

district of residence who attends a United States Olympic Education

 

Center.

 

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

 

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


school code, MCL 380.1148.

 

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

 

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

 

adequate yearly progress under the no child left behind act of

 

2001, Public Law 107-110, or the every student succeeds act, Public

 

Law 114-95.

 

     However, except for pupils enrolled in the youth challenge

 

program at the site at which the youth challenge program operated

 

for 2015-2016, 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 or public

 

school academy , or the education achievement system before the

 

pupil membership count day or supplemental count day of a

 

particular year but was expelled or suspended on the pupil

 

membership count day or supplemental count day shall only be

 

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

 

attendance in the district, intermediate district, or public school

 

academy , or education achievement system within 45 days after the

 

pupil membership count day or supplemental count day of that


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

 

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

 

prorated membership for the classes the pupil attended. For

 

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

 

day when pupils and a certificated teacher or legally qualified

 

substitute teacher are together and instruction is taking place.

 

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

 

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

 

24.328.

 

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

 

380.1852.

 

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

 

district", and "district of the first class" mean, for the purposes

 

of this article only, a district that had at least 40,000 pupils in

 

membership for the immediately preceding fiscal year.

 

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

 

July 1 and continues through June 30.

 

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

 

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

 

district or intermediate district superintendent, means the

 

superintendent of public instruction described in section 3 of

 

article VIII of the state constitution of 1963.

 

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

 

supplemental pupil count is conducted under section 6a.

 

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

 

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

 

for whom tuition may be charged to the district of residence.


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

 

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

 

whose parent or guardian voluntarily enrolls the pupil in a

 

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

 

district of residence shall not require a high school tuition

 

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

 

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

 

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

 

established in section 11 of article IX of the state constitution

 

of 1963.

 

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

 

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

 

PA 206, MCL 211.27a.

 

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

 

instructional print or electronic resource that is selected and

 

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

 

achievement school, by the chancellor of the achievement authority

 

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

 

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

 

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

 

that forms the basis of classroom instruction.

 

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

 

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

 

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

 

article.

 

     Sec. 8b. (1) The department shall assign a district code to

 

each public school academy that is authorized under the revised


school code and is eligible to receive funding under this article

 

within 30 days after a contract is submitted to the department by

 

the authorizing body of a public school academy.

 

     (2) If the department does not assign a district code to a

 

public school academy within the 30-day period described in

 

subsection (1), the district code the department shall use to make

 

payments under this article to the newly authorized public school

 

academy shall be a number that is equivalent to the sum of the last

 

district code assigned to a public school academy located in the

 

same county as the newly authorized public school academy plus 1.

 

However, if there is not an existing public school academy located

 

in the same county as the newly authorized public school academy,

 

then the district code the department shall use to make payments

 

under this article to the newly authorized public school academy

 

shall be a 5-digit number that has the county code in which the

 

public school academy is located as its first 2 digits, 9 as its

 

third digit, 0 as its fourth digit, and 1 as its fifth digit. If

 

the number of public school academies in a county grows to exceed

 

100, the third digit in this 5-digit number shall then be 7 for the

 

public school academies in excess of 100.

 

     (3) For each school of excellence that is a cyber school and

 

is authorized under part 6e of the revised school code, MCL 380.551

 

to 380.561, by a school district, intermediate school district,

 

community college other than a federal tribally controlled

 

community college, or other authorizing body that is not empowered

 

to authorize a school of excellence to operate statewide and is

 

eligible to receive funding under this article, the all of the


following apply:

 

     (a) The department shall assign a district code that includes

 

as the first 2 digits the county code in which the authorizing body

 

is located.

 

     (b) If the cyber school does not provide instruction at a

 

specific location, the intermediate district that would normally

 

provide programs and services to the school district in which the

 

administrative office of cyber school is located shall provide

 

programs and services to the cyber school. The intermediate school

 

district required to provide programs and services to a cyber

 

school under this subdivision remains the same for as long as that

 

cyber school is in operation.

 

     Sec. 11. (1) For the fiscal year ending September 30, 2016,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,905,439,300.00 from the state school aid fund and the sum of

 

$55,100,000.00 from the general fund. For the fiscal year ending

 

September 30, 2017, there is appropriated for the public schools of

 

this state and certain other state purposes relating to education

 

the sum of $12,052,309,300.00 $12,035,809,300.00 from the state

 

school aid fund, the sum of $218,900,000.00 from the general fund,

 

an amount not to exceed $72,000,000.00 from the community district

 

education trust fund created under section 12 of the Michigan trust

 

fund act, 2000 PA 489, MCL 12.262, and an amount not to exceed

 

$100.00 from the water emergency reserve fund. For the fiscal year

 

ending September 30, 2018, there is appropriated for the public

 

schools of this state and certain other state purposes relating to


education the sum of $12,295,507,100.00 from the state school aid

 

fund, the sum of $215,000,000.00 from the general fund, an amount

 

not to exceed $72,000,000.00 from the community district education

 

trust fund created under section 12 of the Michigan trust fund act,

 

2000 PA 489, MCL 12.262, and an amount not to exceed $100.00 from

 

the water emergency reserve fund. In addition, all other available

 

federal funds are appropriated each fiscal year for the fiscal

 

years ending September 30, 2016 and September 30, 2017 and

 

September 30, 2018.

 

     (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 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 296(3).

 

     (7) For 2016-2017 and for 2017-2018, 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.

 

     Sec. 11j. From the appropriation in section 11, there is

 

allocated an amount not to exceed $10,500,000.00 for 2015-2016 and

 

there is allocated an amount not to exceed $126,500,000.00

 

$125,500,000.00 for 2016-2017 2017-2018 for payments to the school

 

loan bond redemption fund in the department of treasury on behalf

 

of districts and intermediate districts. Notwithstanding section

 

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 2016-2017, 2017-2018, 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 appropriation in section 11, there is

 

allocated for 2015-2016 an amount not to exceed $1,000,000.00 and

 

there is allocated for 2016-2017 an amount not to exceed

 

$3,000,000.00 $5,500,000.00 and there is allocated for 2017-2018 an

 

amount not to exceed $6,500,000.00 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. 11r. (1) From the appropriation in section 11, there is

 

allocated for 2014-2015 an amount not to exceed $4,000,000.00 to be

 

deposited into the distressed districts emergency grant fund

 

created under this section for the purpose of funding grants under

 

this section.

 

     (2) The distressed districts emergency grant fund is created

 

as a separate account within the state school aid fund. The state

 

treasurer may receive money or other assets from any source for

 

deposit into the distressed districts emergency grant fund. The

 

state treasurer shall direct the investment of the distressed

 

districts emergency grant fund and shall credit to the distressed

 

districts emergency grant fund interest and earnings from the fund.

 

     (3) Subject to subsection (4), a district is eligible to

 

receive a grant from the distressed districts emergency grant fund

 

if either of the following applies:

 

     (a) The district has adopted a resolution authorizing the

 

voluntary dissolution of the district approved by the state

 

treasurer under section 12 of the revised school code, MCL 380.12,

 

but the dissolution has not yet taken effect under that section.

 

     (b) The district is a receiving district under section 12 of

 

the revised school code, MCL 380.12, and the district enrolls

 

pupils who were previously enrolled in a district that was

 

dissolved under section 12 of the revised school code, MCL 380.12,

 

in the immediately preceding school year.

 

     (4) A district receiving funds under section 20g is not


eligible to receive funds under this section.

 

     (5) The amount of a grant under this section shall be

 

determined by the state treasurer after consultation with the

 

superintendent of public instruction, but shall not exceed the

 

estimated amount of remaining district costs in excess of available

 

revenues, including, but not limited to, payroll, benefits,

 

retirement system contributions, pupil transportation, food

 

services, special education, building security, and other costs

 

necessary to allow the district to operate schools directly and

 

provide public education services until the end of the current

 

school fiscal year. For a district that meets the eligibility

 

criteria under subsection (3)(b), the amount of the grant shall be

 

determined in the same manner as transition costs under section

 

20g.

 

     (6) Before disbursing funds under this section, the state

 

treasurer shall notify the house and senate appropriations

 

subcommittees on school aid and the house and senate fiscal

 

agencies. The notification shall include, but not be limited to,

 

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

 

funds awarded under this section, an explanation of the district

 

conditions that necessitate funding under this section, and the

 

intended use of funds disbursed under this section.

 

     (7) Except as otherwise provided in subsection (8), money in

 

the distressed districts emergency grant fund at the close of a

 

fiscal year shall remain in the distressed districts emergency

 

grant fund and shall not lapse to the state school aid fund or to

 

the general fund.


     (8) For 2015-2016 only, an amount not to exceed $2,800,000.00

 

2016-2017 only, the remaining balance in the work project that was

 

established under this section for 2014-2015, estimated at

 

$1,000,000.00, shall be lapsed from the distressed districts

 

emergency grant fund to the state school aid fund.

 

     Sec. 11s. (1) From the general fund appropriation in section

 

11, there is allocated $10,142,500.00 for 2016-2017 and there is

 

allocated $8,730,000.00 for 2017-2018 for the purpose of providing

 

services and programs to children who reside within the boundaries

 

of a district with the majority of its territory located within the

 

boundaries of a city for which an executive proclamation of

 

emergency is issued in the current or immediately preceding fiscal

 

year 2 fiscal years under the emergency management act, 1976 PA

 

390, MCL 30.401 to 30.421. From the funding appropriated in section

 

11, there is allocated $100.00 from the water emergency reserve

 

fund for each fiscal year for 2016-2017 and for 2017-2018 for the

 

purposes of this section.

 

     (2) From the allocation in subsection (1), there is allocated

 

to a district with the majority of its territory located within the

 

boundaries of a city in which an executive proclamation of

 

emergency is issued in the current or immediately preceding fiscal

 

year 2 fiscal years and that has at least 5,000 4,500 pupils in

 

membership for the current 2016-2017 fiscal year or has at least

 

4,000 pupils in membership for a fiscal year after 2016-2017, an

 

amount not to exceed $1,292,500.00 for 2016-2017 and an amount not

 

to exceed $2,625,000.00 for 2017-2018 for the purpose of employing

 

school nurses and school social workers. The district shall provide


a report to the department in a form, manner, and frequency

 

approved prescribed by the department. The department shall provide

 

a copy of that report to the governor, the house and senate school

 

aid subcommittees, the house and senate fiscal agencies, and the

 

state budget director within 5 days after receipt. The report shall

 

provide at least the following information:

 

     (a) How many personnel were hired using the funds allocated

 

under this subsection.

 

     (b) A description of the services provided to pupils by those

 

personnel.

 

     (c) How many pupils received each type of service identified

 

in subdivision (b).

 

     (d) Any other information the department considers necessary

 

to ensure that the children described in subsection (1) received

 

appropriate levels and types of services.

 

     (3) From the allocation in subsection (1), there is allocated

 

to an intermediate district that has a constituent district

 

described in subsection (2) an amount not to exceed $1,195,000.00

 

for 2016-2017 and an amount not to exceed $2,500,000.00 for 2017-

 

2018 to augment staff for the purpose of providing additional early

 

childhood services and for nutritional services to children

 

described in subsection (1), regardless of location of school of

 

attendance. The For 2016-2017, the early childhood services to be

 

provided under this subsection are state early intervention

 

services as described in subsection (4) and early literacy

 

services. Beginning with 2017-2018, the early childhood services to

 

be provided under this subsection are state early intervention


services that are similar to the services described in the early on

 

Michigan state plan, including ensuring that all children described

 

in subsection (1) who are less than 4 years of age as of September

 

1, 2016 are assessed and evaluated at least twice annually. In

 

addition, funds allocated under this subsection may also be

 

expended to provide informational resources to parents, educators,

 

and the community, and to coordinate services with other local

 

agencies. The intermediate district shall provide a report to the

 

department in a form, manner, and frequency approved by the

 

department. The department shall provide a copy of that report to

 

the governor, the house and senate school aid subcommittees, the

 

house and senate fiscal agencies, and the state budget director

 

within 5 days after receipt. The report shall provide at least the

 

following information:

 

     (a) How many personnel were hired using the funds appropriated

 

in this subsection.

 

     (b) A description of the services provided to children by

 

those personnel.

 

     (c) What types of additional nutritional services were

 

provided.

 

     (d) How many children received each type of service identified

 

in subdivisions (b) and (c).

 

     (e) What types of informational resources and coordination

 

efforts were provided.

 

     (f) Any other information the department considers necessary

 

to ensure that the children described in subsection (1) received

 

appropriate levels and types of services.


     (4) From For 2016-2017 only, from the allocation in subsection

 

(1), there is allocated an amount not to exceed $6,155,000.00 to

 

intermediate districts described in subsection (3) to provide state

 

early intervention services for children described in subsection

 

(1) who are less than 4 years of age as of September 1, 2016. The

 

intermediate district shall use these funds to provide state early

 

intervention services that are similar to the services described in

 

the early on Michigan state plan, including ensuring that all

 

children described in subsection (1) who are less than 4 years of

 

age as of September 1, 2016 are assessed and evaluated at least

 

twice annually.

 

     (5) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $1,500,000.00 for 2016-2017 and an amount

 

not to exceed $3,000,000.00 for 2017-2018 to intermediate districts

 

described in subsection (3) to enroll children described in

 

subsection (1) in school-day great start readiness programs,

 

regardless of household income eligibility requirements contained

 

in section 39. The department shall administer this funding

 

consistent with all other provisions of the great start readiness

 

programs contained in section 32d and section 39.

 

     (6) For 2017-2018 only, from the allocation in subsection (1),

 

there is allocated an amount not to exceed $605,000.00 for

 

nutritional services to children described in subsection (1).

 

     (7) (6) In addition to other funding allocated and

 

appropriated in this section, there is appropriated an amount not

 

to exceed $15,000,000.00 each fiscal year for 2016-2017 and for

 

2017-2018 for state restricted contingency funds. These contingency


funds are not available for expenditure until they have been

 

transferred to a section within this article under section 393(2)

 

of the management and budget act, 1984 PA 431, MCL 18.1393.

 

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

 

shall be paid on a schedule determined by the department.

 

     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 9 years for the

 

adjustment and may advance payments to the district otherwise

 

authorized under this article if the district would otherwise

 

experience a significant hardship in satisfying its financial

 

obligations. At the request of a district and upon the district

 

presenting evidence satisfactory to the department of the hardship,

 

the department may waive all or a portion of the adjustments under

 

this subsection if the department determines that all of the

 

following apply:

 

     (a) The district would otherwise experience a significant

 

hardship in satisfying its financial obligations.

 

     (b) The district would otherwise experience a significant

 

hardship in satisfying its responsibility to provide instruction to

 

its pupils.

 

     (c) The district has taken sufficient corrective action to

 

ensure that the circumstance or circumstances that necessitated the


adjustment under this subsection do not recur.

 

     (3) If, based on an audit by the department or the

 

department's designee or because of new or updated information

 

received by the department, the department determines that the

 

amount paid to a district or intermediate district under this

 

article for the current fiscal year or a prior fiscal year was

 

incorrect, the department shall make the appropriate deduction or

 

payment in the district's or intermediate district's allocation in

 

the next apportionment after the adjustment is finalized. The

 

deduction or payment shall be calculated according to the law in

 

effect in the fiscal year in which the incorrect 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) The department may conduct audits, or may direct audits by

 

designee of the department, for the current fiscal year and the

 

immediately preceding 3 fiscal years of all records related to a

 

program for which a district or intermediate district has received

 

funds under this article.

 

     (5) 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.


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

 

programs and services, there is appropriated for 2016-2017 2017-

 

2018 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 under sections 22a

 

and 22b or received by an intermediate district under section 81

 

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) A district or intermediate district shall adopt an annual

 

budget in a manner that complies with the uniform budgeting and

 

accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days

 

after a district board adopts its annual operating budget for the

 

following school fiscal year, or after a district board adopts a

 

subsequent revision to that budget, the district shall make all of


the following available through a link on its website homepage, or

 

may make the information available through a link on its

 

intermediate district's website homepage, 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 employees

 

health benefits act, 2007 PA 106, MCL 124.75.

 

     (v) The district's written policy governing procurement of

 

supplies, materials, and equipment.

 

     (vi) The district's written policy establishing specific

 

categories of reimbursable expenses, as described in section

 

1254(2) of the revised school code, MCL 380.1254.

 

     (vii) Either the district's accounts payable check register

 

for the most recent school fiscal year or a statement of the total

 

amount of expenses incurred by board members or employees of the

 

district that were reimbursed by the district for the most recent

 

school fiscal year.

 

     (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.


     (g) Any deficit elimination plan or enhanced deficit

 

elimination plan the district was required to submit under the

 

revised school code.

 

     (h) Identification of all credit cards maintained by the

 

district as district credit cards, the identity of all individuals

 

authorized to use each of those credit cards, the credit limit on

 

each credit card, and the dollar limit, if any, for each

 

individual's authorized use of the credit card.

 

     (i) Costs incurred for each instance of out-of-state travel by

 

the school administrator of the district that is fully or partially

 

paid for by the district and the details of each of those instances

 

of out-of-state travel, including at least identification of each

 

individual on the trip, destination, and purpose.

 

     (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 purposes of determining the reasonableness of

 

expenditures, whether a district or intermediate district has

 

received the proper amount of funds under this article, 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, and at such other times as determined

 

by the department, at the expense of the district or intermediate


district, as applicable. The audits must be performed 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. A district or intermediate district shall retain these

 

records for the current fiscal year and from at least the 3

 

immediately preceding fiscal years.

 

     (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

 

1 each year for reporting the prior fiscal year data:

 

     (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 1 each fiscal year, each district and

 

intermediate district shall submit to the center, in a manner

 

prescribed by the center, annual comprehensive financial data

 

consistent with the district's or intermediate district's audited

 

financial statements and 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), or if the department

 

determines that the financial data required under subsection (5)

 

are not consistent with audited financial statements, 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) If a district or intermediate district does not comply

 

with subsection (2), the department may withhold up to 10% of the

 

total 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 subsection (2). If the district

 

or intermediate district does not comply with subsection (2) by the

 

end of the fiscal year, the district or intermediate district

 

forfeits the amount withheld.

 

     (12) Not later than By November 1 , 2016, of each year, if a

 

district or intermediate district offers virtual learning under


section 21f, the district or intermediate district shall submit to

 

the department a report that details the per-pupil costs of

 

operating the virtual learning by vendor type. The report shall

 

include at least all of the following information concerning the

 

operation of virtual learning for the immediately preceding school

 

fiscal year: ending June 30, 2016:

 

     (a) The name of the district operating the virtual learning

 

and of each district that enrolled students in the virtual

 

learning.

 

     (b) The total number of students enrolled in the virtual

 

learning and the total number of membership pupils enrolled in the

 

virtual learning.

 

     (c) For each pupil who is enrolled in a district other than

 

the district offering virtual learning, the name of that district.

 

     (d) The district in which the pupil was enrolled before

 

enrolling in the district offering virtual learning.

 

     (e) The number of participating students who had previously

 

dropped out of school.

 

     (f) The number of participating students who had previously

 

been expelled from school.

 

     (g) The total cost to enroll a student in the program. This

 

cost shall be reported on a per-pupil, per-course, per-semester or

 

trimester basis by vendor type. The total shall include costs

 

broken down by cost for content development, content licensing,

 

training, virtual instruction and instructional support, personnel,

 

hardware and software, payment to each virtual learning provider,

 

and other costs associated with operating virtual learning.


     (h) The name of each virtual education provider contracted by

 

the district and the state in which each virtual education provider

 

is headquartered.

 

     (13) Not later than By March 31 , 2017, of each year, the

 

department shall submit to the house and senate appropriations

 

subcommittees on state school aid, the state budget director, and

 

the house and senate fiscal agencies a report summarizing the per-

 

pupil costs by vendor type of virtual courses available under

 

section 21f.

 

     (14) As used in subsections (12) and (13), "vendor type" means

 

the following:

 

     (a) Virtual courses provided by the Michigan Virtual

 

University.

 

     (b) Virtual courses provided by a school of excellence that is

 

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

 

code, MCL 380.551.

 

     (c) Virtual courses provided by third party vendors not

 

affiliated with a Michigan public school.

 

     (d) Virtual courses created and offered by a district or

 

intermediate district.

 

     (15) An allocation to a district or another entity under this

 

article is contingent upon the district's or entity's compliance

 

with this section.

 

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

 

indebtedness entered into by a public school academy , the

 

achievement authority, or an achievement school receiving funds

 

under this act article and a third party does not constitute an


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

 

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

 

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

 

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

 

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

 

indebtedness entered into by a public school academy, the

 

achievement authority, or an achievement school.

 

     Sec. 20. (1) For 2016-2017, 2017-2018, both of the following

 

apply:

 

     (a) The basic foundation allowance is $8,229.00.$8,329.00.

 

     (b) The minimum foundation allowance is $7,511.00.$7,611.00.

 

     (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) Except as otherwise provided in this subdivision,

 

subsection, for a district that had a foundation allowance for the

 

immediately preceding state fiscal year that was at least equal to

 

the minimum foundation allowance for the immediately preceding

 

state fiscal year, 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 difference between the basic foundation

 

allowance for the current state fiscal year and basic foundation

 

allowance for the immediately preceding state fiscal year minus

 

$20.00) $17.00) times (the difference between the district's

 

foundation allowance for the immediately preceding state fiscal

 

year and the minimum foundation allowance for the immediately

 

preceding state fiscal year) divided by the difference between the

 

basic foundation allowance for the current state fiscal year and

 

the minimum 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. For 2017-

 

2018, for a district that had a foundation allowance for the

 

immediately preceding state fiscal year that was at least equal to

 

the minimum foundation allowance for the immediately preceding

 

state fiscal year but less than the basic foundation allowance for

 

the immediately preceding fiscal year, the district shall receive a

 

foundation allowance in an amount equal to the district's

 

foundation allowance for 2016-2017 plus $100.00.

 

     (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 equal to the amount of the basic

 

foundation allowance for the immediately preceding state fiscal

 

year, the district shall receive a foundation allowance for 2016-


2017 2017-2018 in an amount equal to the basic foundation allowance

 

for 2016-2017.2017-2018.

 

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

 

district that had a foundation allowance for the immediately

 

preceding state fiscal year that was greater than the basic

 

foundation allowance for the immediately preceding state fiscal

 

year, 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. For 2017-

 

2018, for a district that had a foundation allowance for the

 

immediately preceding state fiscal year that was greater 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 2016-

 

2017 plus $100.00.

 

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

 

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

 

rounded up to the nearest whole dollar.

 

     (4) Except as otherwise provided in this subsection, beginning


in 2014-2015, 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 local portion of the district's

 

foundation allowance. For a district described in subsection

 

(3)(c), beginning in 2014-2015, 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 local portion of the district's foundation

 

allowance. For a district that has a millage reduction required

 

under section 31 of article IX of the state constitution of 1963,

 

the state portion of the district's foundation allowance shall be

 

calculated as if that reduction did not occur. For a receiving

 

district, if school operating taxes continue to be levied on behalf

 

of a dissolved district that has been attached in whole or in part

 

to the receiving district to satisfy debt obligations of the

 

dissolved district under section 12 of the revised school code, MCL

 

380.12, the taxable value per membership pupil of property in the

 

receiving district used for the purposes of this subsection does

 

not include the taxable value of property within the geographic

 

area of the dissolved district. For a community district, if school

 

operating taxes continue to be levied by a qualifying school

 

district under section 12b of the revised school code, MCL 380.12b,

 

with the same geographic area as the community district, the

 

taxable value per membership pupil of property in the community

 

district to be used for the purposes of this subsection does not


include the taxable value of property within the geographic area of

 

the community district.

 

     (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. The calculation under this subsection shall take into

 

account a district's per-pupil allocation under section 20m.

 

     (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. For Except as otherwise provided in this

 

subsection, for pupils in membership, other than special education

 

pupils, in a public school academy that is a cyber school and is


authorized by a school district, 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 that authorized the public

 

school academy 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, MCL 380.1280c, 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.

 

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

 

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

 

community district, the allocation calculated under this section is

 

an amount per membership pupil other than special education pupils

 

in the community district equal to the foundation allowance of the

 

qualifying school district, as described in section 12b of the


revised school code, MCL 380.12b, that is located within the same

 

geographic area as the community district.

 

     (8) (9) 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

 

lesser of the sum of the average of the foundation allowances of

 

each of the original or affected districts, calculated as provided

 

in this section, weighted as to the percentage of pupils in total

 

membership in the resulting district who reside in the geographic

 

area of each of the original or affected districts plus $100.00 or

 

the highest foundation allowance among the original or affected

 

districts. This subsection does not apply to a receiving district

 

unless there is a subsequent consolidation or annexation that

 

affects the district. The calculation under this subsection shall

 

take into account a district's per-pupil allocation under section

 

20m.

 

     (9) (10) 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) (11) 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) (12) To assist the legislature in determining the basic

 

minimum 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. 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) (13) Payments to districts , and 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.

 

     (13) (14) 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) 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) "Dissolved district" means a district that loses its

 

organization, has its territory attached to 1 or more other

 

districts, and is dissolved as provided under section 12 of the

 

revised school code, MCL 380.12.

 

     (f) "Immediately preceding state fiscal year" means the state

 

fiscal year immediately preceding the current state fiscal year.

 

     (g) "Local portion of the district's foundation allowance"

 

means an amount that is equal to the difference between (the sum of

 

the product of the taxable value per membership pupil of all

 

property in the district that is nonexempt property times the

 

district's certified mills and, for a district with certified mills

 

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

 

of property in the district that is commercial personal property

 

times the certified mills minus 12 mills) and (the quotient of the

 

product of the captured assessed valuation under tax increment

 

financing acts times the district's certified mills divided by the

 

district's membership excluding special education pupils).

 

     (h) "Local school operating revenue" means school operating

 

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

 

380.1211. For a receiving district, if school operating taxes are


to be levied on behalf of a dissolved district that has been

 

attached in whole or in part to the receiving district to satisfy

 

debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, local school operating revenue

 

does not include school operating taxes levied within the

 

geographic area of the dissolved district.

 

     (i) "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.

 

     (j) "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 amount of

 

the difference between the basic foundation allowance for the

 

current state fiscal year and the basic foundation allowance for

 

the immediately preceding state fiscal year and [(the amount of the

 

difference between the basic foundation allowance for the current

 

state fiscal year and the basic foundation allowance for the

 

immediately preceding state fiscal year minus $20.00) $17.00) times

 

(the difference between the highest per-pupil allocation among all

 

public school academies for the immediately preceding state fiscal

 

year and the minimum foundation allowance for the immediately

 

preceding state fiscal year) divided by the difference between the

 

basic foundation allowance for the current state fiscal year and

 

the minimum foundation allowance for the immediately preceding

 

state fiscal year.] For the purposes of this subdivision, for 2016-


2017, 2017-2018, the maximum public school academy allocation is

 

$7,511.00.$7,611.00.

 

     (k) "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.

 

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

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, commercial personal property, or property occupied by a

 

public school academy.

 

     (m) "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.

 

     (n) "Receiving district" means a district to which all or part

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

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

 

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

 

18 and purposes authorized under section 1211 of the revised school

 

code, MCL 380.1211.

 

     (p) "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.

 

     (q) "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.

 

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

 

as certified by the county treasurer and reported to the

 

department, 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 2016-2017, a subsequent fiscal year, the department

 

and the department of treasury shall comply with all of the

 

following:

 

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

 

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

 

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

 

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

 

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

 

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

 

former section 146 and under section 147 on behalf of the

 

district's employees who provided direct services to the area

 

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

 

department shall make an adjustment under this subdivision to the


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

 

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

 

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

 

levied by the district under section 1211 of the revised school

 

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

 

subdivision.

 

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

 

state school aid that excluded payments made under former section

 

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

 

provided direct services for intermediate district center programs

 

operated by the district under article 5, sections 51 to 56, if

 

nonresident pupils attending the center programs were included in

 

the district's membership for purposes of calculating the combined

 

state and local revenue per membership pupil for 1993-94, and if

 

there is a signed agreement by all constituent districts of the

 

intermediate district that an adjustment under this subdivision

 

shall be made, the foundation allowances for 1995-96 and 1996-97 of

 

all districts that had pupils attending the intermediate district

 

center program operated by the district that had the adjustment

 

shall be calculated as if their combined state and local revenue

 

per membership pupil for 1993-94 included resident pupils attending

 

the center program and excluded nonresident pupils attending the

 

center program.

 

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

 

is allocated an amount not to exceed $18,000,000.00 for 2016-2017

 

2017-2018 for payments to eligible districts under this section.

 

     (2) The funding under this subsection is from the allocation


under subsection (1). A district is eligible for funding under this

 

subsection if the district received a payment under this section as

 

it was in effect for 2013-2014. A district was eligible for funding

 

in 2013-2014 if the sum of the following was less than $5.00:

 

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

 

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

 

2013-2014.

 

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

 

former section 22c for 2013-2014.

 

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

 

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

 

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

 

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

 

pupils for 2013-2014.

 

     (3) The amount allocated to each eligible district under

 

subsection (2) is an amount per membership pupil equal to the

 

amount per membership pupil the district received under this

 

section in 2013-2014.

 

     (4) The funding under this subsection is from the allocation

 

under subsection (1). A district is eligible for funding under this

 

subsection for 2016-2017 if the sum of the following is less than

 

$25.00:

 

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

 

per-pupil payment as calculated under section 20 from 2014-2015 to

 

2015-2016.

 

     (b) The decrease in the district's best practices per-pupil

 

funding under former section 22f from 2014-2015 to 2015-2016.


     (c) The decrease in the district's pupil performance per-pupil

 

funding under former section 22j from 2014-2015 to 2015-2016.

 

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

 

31a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under

 

section 31a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.

 

     (5) The amount allocated to each eligible district under

 

subsection (4) is an amount per membership pupil equal to $25.00

 

minus the sum of the following:

 

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

 

per-pupil payment as calculated under section 20 from 2014-2015 to

 

2015-2016.

 

     (b) The decrease in the district's best practices per-pupil

 

funding under former section 22f from 2014-2015 to 2015-2016.

 

     (c) The decrease in the district's pupil performance per-pupil

 

funding under former section 22j from 2014-2015 to 2015-2016.

 

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

 

31a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under

 

section 31a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.

 

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

 

fully fund payments under subsections (3) and (5) as otherwise

 

calculated under this section, the department shall prorate

 

payments under this section on an equal per-pupil basis.

 

     Sec. 20m. (1) Foundation allowance supplemental payments for


2016-2017 2017-2018 to districts that in the 2015-2016 fiscal year

 

had a foundation allowance greater than $8,169.00 shall be

 

calculated under this section.

 

     (2) The per-pupil allocation to each district under this

 

section shall be the difference between the dollar amount of the

 

adjustment from the immediately preceding 2015-2016 state fiscal

 

year to the current state fiscal year in the basic foundation

 

allowance minus the dollar amount of the adjustment from the

 

immediately preceding 2015-2016 fiscal year to the current state

 

fiscal year in a qualifying district's foundation allowance.

 

     (3) If a district's local revenue per pupil does not exceed

 

the sum of its foundation allowance under section 20 plus the per-

 

pupil allocation under subsection (2), the total payment to the

 

district calculated under this section shall be the product of the

 

per-pupil allocation under subsection (2) multiplied by the

 

district's membership excluding special education pupils. If a

 

district's local revenue per pupil exceeds the foundation allowance

 

under section 20 but does not exceed the sum of the foundation

 

allowance under section 20 plus the per-pupil allocation under

 

subsection (2), the total payment to the district calculated under

 

this section shall be the product of the difference between the sum

 

of the foundation allowance under section 20 plus the per-pupil

 

allocation under subsection (2) minus the local revenue per pupil

 

multiplied by the district's membership excluding special education

 

pupils. If a district's local revenue per pupil exceeds the sum of

 

the foundation allowance under section 20 plus the per-pupil

 

allocation under subsection (2), there is no payment calculated


under this section for the district.

 

     (4) Payments to districts shall not be made under this

 

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

 

and used to determine the amount of state payments under section

 

22b.

 

     Sec. 21g. (1) From the general fund appropriation in section

 

11, there is allocated an amount not to exceed $500,000.00 for

 

2016-2017 $100.00 for 2017-2018 for a grant to a public-private

 

partnership, led by the Michigan Center of Innovation in Education,

 

a Michigan-based nonprofit organization that is exempt from federal

 

taxes under section 501(c)(3) of the internal revenue code, 26 USC

 

501(c)(3), in partnership with the Michigan Association of

 

Intermediate School Administrators, and in coordination with the

 

department and the center, to develop and pilot a competency-based

 

transcript and marketplace to expand competency-based education

 

programs to provide enhanced choice to pupils and parents for the

 

completion of the requirements for kindergarten through a high

 

school diploma under the Michigan merit standard under sections

 

1278a and 1278b of the revised school code, MCL 380.1278a and

 

380.1278b.

 

     (2) The partnership under subsection (1) shall do all of the

 

following:

 

     (a) Establish an articulation framework for Michigan academic,

 

technical, and global competencies of prekindergarten through high

 

school diploma requirements, including providing for career and

 

technical and dual enrollment opportunities.

 

     (b) Establish assessment criteria for measuring these


competencies and awarding universally recognized credentials,

 

micro-credentials, credits, and micro-credits for demonstrated

 

competencies independent of state-administered assessments.

 

     (c) Identify a means of accrediting education service

 

providers as competency-based credentialing organizations to

 

facilitate any-time, any-pace, any-way, any-place learning such

 

that credentials, micro-credentials, credits, and micro-credits can

 

be earned inside and outside traditional classroom settings.

 

     (d) Develop and pilot a pupil-owned transcript that satisfies

 

postsecondary institution requirements for admission and allows

 

pupils to accumulate credentials, micro-credentials, credits, and

 

micro-credits required for high school graduation, postsecondary

 

matriculation, and early career success.

 

     (e) Establish and pilot a marketplace of accredited education

 

service providers to provide enhanced choice for pupils and parents

 

when selecting credentials, micro-credentials, credits, and micro-

 

credits needed to satisfy Michigan high school diploma

 

requirements, including career and technical and dual enrollment

 

opportunities.

 

     (3) Accredited education service providers shall include, but

 

are not limited to, the following:

 

     (a) Districts and public career and technical programs.

 

     (b) Preschool, after-school, and other qualifying programs.

 

     (c) Museums, historical societies, science centers, and other

 

community education organizations.

 

     (d) Business and civic organizations and other institutions

 

providing internship and apprenticeship opportunities.


     (e) Community colleges, trade schools, and universities

 

offering dual enrollment opportunities.

 

     (4) The transcript and marketplace shall do all of the

 

following:

 

     (a) Use Michigan-specific academic standards when defining

 

academic competencies.

 

     (b) Use industry standards for the competency assessment.

 

     (c) Use industry standards for articulating and transcripting

 

of credentials, micro-credentials, credits, and micro-credits.

 

     (d) Offer its services at no cost to pupils or parents.

 

     (5) Not more than 50% of the funds awarded to a grantee under

 

this section shall be initially distributed to the grantee. To

 

receive the remaining distribution of funds, the grantee shall

 

provide to the department a progress report on the development and

 

piloting of the competency-based transcript and marketplace

 

described in this section, and the department shall only release

 

the remaining funds if, upon review of this progress report, the

 

department determines that sufficient progress has been made by the

 

grantee.

 

     (a) Work with the center to transform the transcript system

 

funded under this section as it was in effect for 2016-2017 into a

 

talent transcript that properly represents career-ready

 

competencies.

 

     (b) Work with Workforce Intelligence Network and Talent 2025

 

to facilitate the expansion of the MI Bright Future Marketplace to

 

additional prosperity regions.

 

     (c) Work with the Michigan Elementary and Middle School


Principals Association and the department to implement a top 10

 

early literacy challenge and data dashboard.

 

     (d) Work with the department and a consortium of districts and

 

intermediate districts to demonstrate the potential of a student

 

progress assessment program to facilitate a statewide shift to

 

competency-based education.

 

     (3) (6) Upon completion of the pilot described in this

 

section, Not later than March 31, 2018, the grantee shall provide a

 

report to the house and senate appropriations subcommittees on

 

school aid detailing the project's expenditures, pupils served,

 

successes and challenges, and feasibility for expanding the project

 

statewide.

 

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

 

allocated an amount not to exceed $5,260,000,000.00 for 2015-2016

 

and an amount not to exceed $5,205,000,000.00 $5,199,000,000.00 for

 

2016-2017 and there is allocated an amount not to exceed

 

$5,178,000,000.00 for 2017-2018 for payments to districts and

 

qualifying public school academies to guarantee each district and

 

qualifying public school academy an amount equal to its 1994-95

 

total state and local per pupil revenue for school operating

 

purposes under section 11 of article IX of the state constitution

 

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

 

constitution of 1963, this guarantee does not apply to a district

 

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

 

district operating purposes less than it levied in 1994. However,

 

subsection (2) applies to calculating the payments under this

 

section. Funds allocated under this section that are not expended


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

 

determined by the department, may be used to supplement the

 

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

 

calculated allocations for the same fiscal year.

 

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

 

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

 

school operating purposes, there is allocated to each district a

 

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

 

amount calculated as follows:

 

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

 

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

 

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

 

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

 

product of the taxable value per membership pupil of all property

 

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

 

certified mills and, for a district with certified mills exceeding

 

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

 

property in the district that is commercial personal property times

 

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

 

valorem property tax revenue of the district captured under tax

 

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

 

a district that has a millage reduction required under section 31

 

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

 

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

 

that reduction did not occur. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving


district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, taxable

 

value per membership pupil of all property in the receiving

 

district that is nonexempt property and taxable value per

 

membership pupil of property in the receiving district that is

 

commercial personal property do not include property within the

 

geographic area of the dissolved district; ad valorem property tax

 

revenue of the receiving district captured under tax increment

 

financing acts does not include ad valorem property tax revenue

 

captured within the geographic boundaries of the dissolved district

 

under tax increment financing acts; and certified mills do not

 

include the certified mills of the dissolved district. For a

 

community district, the allocation as otherwise calculated under

 

this section shall be reduced by an amount equal to the amount of

 

local school operating tax revenue that would otherwise be due to

 

the community district if not for the operation of section 386 of

 

the revised school code, MCL 380.386, and the amount of this

 

reduction shall be offset by the increase in funding under section

 

22b(2) in order to offset the absence of local school operating

 

revenue in a community district in the funding of the state portion

 

of the foundation allowance under section 22b.

 

     (b) For a district that had a 1994-95 foundation allowance

 

greater than $6,500.00, the state payment under this subsection

 

shall be the sum of the amount calculated under subdivision (a)

 

plus the amount calculated under this subdivision. The amount

 

calculated under this subdivision shall be equal to the difference

 

between the district's 1994-95 foundation allowance minus $6,500.00


and the current year hold harmless school operating taxes per

 

pupil. If the result of the calculation under subdivision (a) is

 

negative, the negative amount shall be an offset against any state

 

payment calculated under this subdivision. If the result of a

 

calculation under this subdivision is negative, there shall not be

 

a state payment or a deduction under this subdivision. The taxable

 

values per membership pupil used in the calculations under this

 

subdivision are as adjusted by ad valorem property tax revenue

 

captured under tax increment financing acts divided by the

 

district's membership. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, ad valorem

 

property tax revenue captured under tax increment financing acts do

 

not include ad valorem property tax revenue captured within the

 

geographic boundaries of the dissolved district under tax increment

 

financing acts.

 

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

 

district that is formed or reconfigured after June 1, 2000 by

 

consolidation of 2 or more districts or by annexation, the

 

resulting district's 1994-95 foundation allowance under this

 

section beginning after the effective date of the consolidation or

 

annexation shall be the average of the 1994-95 foundation

 

allowances of each of the original or affected districts,

 

calculated as provided in this section, weighted as to the

 

percentage of pupils in total membership in the resulting district

 

in the state fiscal year in which the consolidation takes place who

 

reside in the geographic area of each of the original districts. If

 

an affected district's 1994-95 foundation allowance is less than

 

the 1994-95 basic foundation allowance, the amount of that

 

district's 1994-95 foundation allowance shall be considered for the

 

purpose of calculations under this subsection to be equal to the

 

amount of the 1994-95 basic foundation allowance. This subsection

 

does not apply to a receiving district unless there is a subsequent

 

consolidation or annexation that affects the district.

 

     (6) Payments under this section are subject to section

 

25f.25g.

 

     (7) As used in this section:

 

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

 

foundation allowance calculated and certified by the department of

 

treasury or the superintendent under former section 20a as enacted

 

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

 

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


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

 

1993-94.

 

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

 

for which a particular calculation is made.

 

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

 

pupil" means the per pupil revenue generated by multiplying a

 

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

 

year taxable value per membership pupil. For a receiving district,

 

if school operating taxes are to be levied on behalf of a dissolved

 

district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved

 

district under section 12 of the revised school code, MCL 380.12,

 

taxable value per membership pupil does not include the taxable

 

value of property within the geographic area of the dissolved

 

district.

 

     (e) "Dissolved district" means a district that loses its

 

organization, has its territory attached to 1 or more other

 

districts, and is dissolved as provided under section 12 of the

 

revised school code, MCL 380.12.

 

     (f) "Hold harmless millage" means, for a district with a 1994-

 

95 foundation allowance greater than $6,500.00, the number of mills

 

by which the exemption from the levy of school operating taxes on a

 

homestead, qualified agricultural property, qualified forest

 

property, supportive housing property, industrial personal

 

property, commercial personal property, and property occupied by a

 

public school academy 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. For a receiving district, if school operating taxes are

 

to be levied on behalf of a dissolved district that has been

 

attached in whole or in part to the receiving district to satisfy

 

debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, school operating taxes do not

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

     (g) "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.

 

     (h) "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.

 

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

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, commercial personal property, or property occupied by a

 

public school academy.

 

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

 

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

 

operation in the current state fiscal year.

 

     (k) "Receiving district" means a district to which all or part


of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

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

 

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

 

380.1211, and retained for school operating purposes as defined in

 

section 20.

 

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

 

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

 

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

 

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

 

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

 

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

 

125.2871 to 125.2899.

 

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

 

following divided by the district's membership:

 

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

 

levy of school operating taxes on a homestead, qualified

 

agricultural property, qualified forest property, supportive

 

housing property, industrial personal property, commercial personal

 

property, and property occupied by a public school academy 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, commercial personal property, and

 

property occupied by a public school academy for the calendar year

 

ending in the current state fiscal year. For a receiving district,

 

if school operating taxes are to be levied on behalf of a dissolved


district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved

 

district under section 12 of the revised school code, MCL 380.12,

 

mills do not include mills within the geographic area of the

 

dissolved district.

 

     (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. For a receiving district, if school operating taxes are to be

 

levied on behalf of a dissolved district that has been attached in

 

whole or in part to the receiving district to satisfy debt

 

obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, school operating taxes do not

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

     Sec. 22b. (1) For discretionary nonmandated payments to

 

districts under this section, there is allocated from the

 

appropriation in section 11 an amount not to exceed

 

$3,692,000,000.00 for 2015-2016, and there is allocated for 2016-

 

2017 an amount not to exceed $3,828,000,000.00 $3,844,000,000.00

 

from the state school aid fund and general fund appropriations in

 

section 11 and an amount not to exceed $72,000,000.00 from the

 

community district education trust fund appropriation in section

 

11, and there is allocated for 2017-2018 an amount not to exceed

 

$3,953,000,000.00 from the state school aid fund and general fund

 

appropriations in section 11 and an amount not to exceed


$72,000,000.00 from the community district education trust fund

 

appropriation in section 11. Except for money allocated from the

 

community district trust fund, money allocated under this section

 

that is not expended in the state fiscal year for which it was

 

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, 20m, 51a(2),

 

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

 

district under sections 22a and 51c. For a community district, the

 

allocation as otherwise calculated under this section shall be

 

increased by an amount equal to the amount of local school

 

operating tax revenue that would otherwise be due to the community

 

district if not for the operation of section 386 of the revised

 

school code, MCL 380.386, and this increase shall be paid from the

 

community district education trust fund allocation in subsection

 

(1) in order to offset the absence of local school operating

 

revenue in a community district in the funding of the state portion

 

of the foundation allowance under section 20(4).

 

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

 

each district shall do all of the following:

 

     (a) Comply with section 1280b of the revised school code, MCL

 

380.1280b.

 

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

 

code, MCL 380.1278a and 380.1278b.


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

 

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

 

specified by the center or the department, as applicable.

 

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

 

380.1230g.

 

     (e) Comply with section 21f.

 

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

 

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

 

and other business function software that is compatible with that

 

of the intermediate district in which the district is located and

 

with other districts located within that intermediate district.

 

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

 

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

 

state related to commercial or industrial property tax appeals,

 

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

 

impact revenues dedicated to the state school aid fund.

 

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

 

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

 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be

 

made in full before any proration of remaining payments under this

 

section.

 

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

 

constitutional obligations of this state have been fully funded

 

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


an entity receiving funds under this article that challenges the

 

legislative determination of the adequacy of this funding or

 

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 

discretionary funds for nonmandated payments under this section the

 

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

 

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

 

the escrowed funds are a work project appropriation and the funds

 

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

 

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

 

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

 

completed upon resolution of the litigation.

 

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

 

jurisdiction makes a final determination that this state is in

 

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

 

1963 regarding state payments to districts, the state budget

 

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

 

allocate from the discretionary funds for nonmandated payments

 

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

 

amount owed to districts before making any payments to districts

 

under subsection (2).

 

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

 

legislative determination of the adequacy of funding for this

 

state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 

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

 

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


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

 

and shall exercise jurisdiction over the claim.

 

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

 

local claims review board or a court of competent jurisdiction that

 

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

 

constitution of 1963 exceed the amount allocated for discretionary

 

nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional

 

obligations at its next legislative session.

 

     (11) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX Medicaid funds is

 

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

 

potential liability under such a lawsuit, the state budget director

 

may place funds allocated under this section in escrow or allocate

 

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

 

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

 

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

 

work project appropriation and the funds are carried forward into

 

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

 

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

 

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

 

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

 

right to terminate future federal title XIX Medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

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

 

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

 

to 1396v.


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

 

not to exceed $5,000,000.00 is allocated for 2016-2017 2017-2018

 

for supplemental payments to rural districts under this section.

 

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

 

allocated for 2016-2017 2017-2018 an amount not to exceed

 

$957,300.00 for payments under this subsection to districts that

 

meet all of the following:

 

     (a) Operates grades K to 12.

 

     (b) Has fewer than 250 pupils in membership.

 

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

 

least 1 of the following:

 

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

 

any other public school building.

 

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

 

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

 

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

 

plan developed as provided in this subsection and approved by the

 

superintendent of public instruction. The spending plan shall be

 

developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The

 

intermediate superintendents shall review the financial situation

 

of each eligible district, determine the minimum essential

 

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

 

a spending plan that distributes the available funding under

 

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

 

needs. The intermediate superintendents shall submit the spending

 

plan to the superintendent of public instruction for approval. Upon


approval by the superintendent of public instruction, the amounts

 

specified for each eligible district under the spending plan are

 

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

 

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

 

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

 

subsection (1), there is allocated for 2016-2017 2017-2018 an

 

amount not to exceed $4,042,700.00 for payments under this

 

subsection to districts that have 7.3 or fewer pupils per square

 

mile as determined by the department.

 

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

 

allocated on an equal per-pupil basis.

 

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

 

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

 

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

 

is allocated for 2016-2017 only an amount not to exceed $500,000.00

 

and for 2017-2018 an amount not to exceed $1,000,000.00 for

 

competitive assistance grants to districts and intermediate

 

districts.

 

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

 

reimbursement of transition costs associated with the dissolution,

 

consolidation, or annexation of districts or intermediate

 

districts. Grant funding shall be available for dissolutions,

 

consolidations, or annexations that occur on or after June 1, 2016.

 

Districts may spend funds allocated under this section over 3

 

fiscal years.

 

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

 

from the funds appropriated in section 11, there is allocated for


2016-2017 only an amount not to exceed $2,500,000.00 for grants to

 

districts or intermediate districts that received a grant under

 

this section as it was in effect for 2015-2016 for reimbursement of

 

remaining transition costs associated with a dissolution,

 

consolidation, or annexation that was approved during 2015-2016 by

 

the school electors of the applicable district or intermediate

 

district.

 

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

 

shall be made on a schedule determined by the department.

 

     Sec. 22m. (1) From the appropriations in section 11, there is

 

allocated for 2017-2018 an amount not to exceed $1,200,000.00 for

 

supporting the integration of local data systems into the Michigan

 

data hub network based on common standards and applications that

 

are in compliance with section 19(7).

 

     (2) An entity that is the fiscal agent for no more than 5

 

consortia of intermediate districts that previously received

 

funding from the technology readiness infrastructure grant under

 

former section 22i for the purpose of establishing regional data

 

hubs that are part of the Michigan data hub network is eligible for

 

funding under this section.

 

     (3) The center shall work with an advisory committee composed

 

of representatives from intermediate districts within each of the

 

data hub regions to coordinate the activities of the Michigan data

 

hub network.

 

     (4) The center, in collaboration with the Michigan data hub

 

network, shall determine the amount of funds distributed under this

 

section to each regional data hub within the network, based upon


documented need provided to the center in a form and manner

 

determined by the center.

 

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

 

shall be made on a schedule determined by the center.

 

     (6) To receive funding under this section, a regional data hub

 

must have a governance model that ensures local control of data,

 

data security, and student privacy issues. The integration of data

 

within each of the regional data hubs shall provide for the

 

actionable use of data by districts and intermediate districts

 

through common reports and dashboards and for efficiently providing

 

information to meet state and federal reporting purposes.

 

     (7) Participation by a data hub region or an intermediate

 

district in the Michigan data hub network under this section is

 

voluntary and is not required.

 

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

 

allocated for 2016-2017 2017-2018 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 health and human services to reside in or to

 

attend a juvenile detention facility or child caring institution

 

licensed by the department of health and 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

 

health and human services to reside in or to attend a juvenile

 

detention facility or child caring institution licensed by the

 

department of health and 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 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 $1,301,000.00 for 2015-2016 and

 

there is allocated an amount not to exceed $1,328,100.00 for 2016-

 

2017 $1,339,000.00 for 2017-2018 for payments to intermediate

 

districts for pupils who are placed in juvenile justice service

 

facilities operated by the department of health and 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 health and human services to ensure that all funding

 

allocated under this section is utilized by the intermediate

 

district and department of health and 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 health and human services to a

 

district or intermediate district unless the district or

 

intermediate district consents to the transfer.

 

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

 

allocated an amount not to exceed $1,632,400.00 for 2016-2017

 

$1,528,400.00 for 2017-2018 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 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. 25f. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $750,000.00 for 2016-2017 2017-2018 for payments to strict

 

discipline academies established under sections 1311b to 1311m of

 

the revised school code, MCL 380.1311b to 380.1311m, as provided

 

under this section.

 

     (2) In order to receive funding under this section, a strict

 

discipline academy shall first comply with section 25e and use the

 

pupil transfer process under that section for changes in enrollment


as prescribed under that section.

 

     (3) The total amount allocated to a strict discipline academy

 

under this section is an amount equal to the lesser of the strict

 

discipline academy's added cost or the department's approved per-

 

pupil allocation for the strict discipline academy. However, the

 

sum of the amounts received by a strict discipline academy under

 

this section and under section 24 shall not exceed the product of

 

the strict discipline academy's per-pupil allocation calculated

 

under section 20 multiplied by the strict discipline academy's

 

full-time equated membership. The department shall allocate funds

 

to strict discipline academies under this section on a monthly

 

basis. For the purposes of this subsection:

 

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

 

for educating all pupils enrolled and in regular daily attendance

 

at a strict discipline academy. Added cost shall be computed by

 

deducting all other revenue received under this article for pupils

 

described in this subsection from total costs, as approved by the

 

department, in whole or in part, for educating those pupils in a

 

strict discipline academy. The department shall include all costs

 

including, but not limited to, educational costs, insurance,

 

management fees, technology costs, legal fees, auditing fees,

 

interest, pupil accounting costs, and any other administrative

 

costs necessary to operate the program or to comply with statutory

 

requirements. Costs reimbursed by federal funds are not included.

 

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

 

discipline academy shall be determined by dividing the total amount

 

allocated under this subsection for a fiscal year by the full-time


equated membership total for all pupils approved by the department

 

to be funded under this subsection for that fiscal year for the

 

strict discipline academy.

 

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

 

not be funded under this section.

 

     (5) If the funds allocated under this section are insufficient

 

to fully fund the adjustments under subsection (3), payments under

 

this section shall be prorated on an equal per-pupil basis.

 

     (6) Payments to districts under this section shall be made

 

according to the payment schedule under section 17b.

 

     Sec. 25g. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $750,000.00 for 2016-2017 2017-2018 for the purposes of this

 

section. If the operation of the special membership counting

 

provisions under section 6(4)(dd) and the other membership counting

 

provisions under section 6(4) result in a pupil being counted as

 

more than 1.0 FTE in a fiscal year, then the payment made for the

 

pupil under sections 22a and 22b shall not be based on more than

 

1.0 FTE for that pupil, and that portion of the FTE that exceeds

 

1.0 shall be paid under this section in an amount equal to that

 

portion multiplied by the educating district's foundation allowance

 

or per-pupil payment calculated under section 20.

 

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

 

not be funded under this section.

 

     (3) If the funds allocated under this section are insufficient

 

to fully fund the adjustments under subsection (1), payments under

 

this section shall be prorated on an equal per-pupil basis.


     (4) Payments to districts under this section shall be made

 

according to the payment schedule under section 17b.

 

     Sec. 26a. From the funds appropriated in section 11, there is

 

allocated an amount not to exceed $20,000,000.00 for 2015-2016 and

 

there is allocated an amount not to exceed $20,000,000.00

 

$18,000,000.00 each fiscal year for 2016-2017 and for 2017-2018 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 2015 and 2016 and 2017 as applicable. The

 

allocations shall be made not later than 60 days after the

 

department of treasury certifies to the department and to the state

 

budget director that the department of treasury has received all

 

necessary information to properly determine the amounts due to each

 

eligible recipient.

 

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

 

allocated for 2016-2017 2017-2018 an amount not to exceed

 

$4,405,100.00 for payments to districts, intermediate districts,

 

and community college districts for the portion of the payment in

 

lieu of taxes obligation that is attributable to districts,

 

intermediate districts, and community college districts pursuant to

 

section 2154 of the natural resources and environmental protection

 

act, 1994 PA 451, MCL 324.2154.

 

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

 

sufficient to fully pay obligations under this section, payments

 

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

 

intermediate districts, and community college districts.

 

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


allocated an amount not to exceed $278,000.00 for 2015-2016 and

 

there is allocated an amount not to exceed $1,000,000.00 for 2016-

 

2017 $1,500,000.00 for 2017-2018 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.

 

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


shall be paid on a schedule determined by the department.

 

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

 

appropriated in section 11, there is allocated for 2016-2017 2017-

 

2018 an amount not to exceed $389,695,500.00 $518,807,300.00 for

 

payments to eligible districts , and eligible public school

 

academies , and the education achievement system for the purposes

 

of ensuring that pupils are proficient in reading English language

 

arts by the end of grade 3, and that pupils are proficient in

 

mathematics by the end of grade 8, that pupils are attending school

 

regularly, that high school graduates are career and college ready,

 

and for the purposes under subsections (7) and (8).(8) and (9).

 

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

 

achievement system, to be eligible to receive funding under this

 

section, other than funding under subsection (7) or (8), 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, must be less than or equal to the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

     (2) For a district that has combined state and local revenue

 

per membership pupil under sections 20 and 20m that is greater than

 

the basic foundation allowance under section 20 for the current

 

fiscal year, the allocation under this section shall be an amount

 

equal to 50% of the allocation for which it would otherwise be

 

eligible under this section before any proration under subsection

 

(13).


     (3) For a district or public school academy that operates

 

grades K to 3, or the education achievement system, to be eligible

 

to receive funding under this section, other than funding under

 

subsection (7) or (8), (8) or (9), the district or public school

 

academy , or the education achievement system, must implement, for

 

at least grades K to 3, K to 8 or, if the district or public school

 

academy does not operate all of grades K to 8, for all of the

 

grades it operates, a multi-tiered system of supports that is an

 

evidence-based model that uses data-driven problem solving to

 

integrate academic and behavioral instruction and that uses

 

intervention delivered to all pupils in varying intensities based

 

on pupil needs. This multi-tiered system of supports must provide

 

at least all of the following essential elements:

 

     (a) Implements effective instruction for all learners.

 

     (b) Intervenes early.

 

     (c) Provides a multi-tiered model of instruction and

 

intervention that provides the following:

 

     (i) A core curriculum and classroom interventions available to

 

all pupils that meet the needs of most pupils.

 

     (ii) Targeted group interventions.

 

     (iii) Intense individual interventions.

 

     (d) Monitors pupil progress to inform instruction.

 

     (e) Uses data to make instructional decisions.

 

     (f) Uses assessments including universal screening,

 

diagnostics, and progress monitoring.

 

     (g) Engages families and the community.

 

     (h) Implements evidence-based, scientifically validated,


instruction and intervention.

 

     (i) Implements instruction and intervention practices with

 

fidelity.

 

     (j) Uses a collaborative problem-solving model.

 

     (4) 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, 42 USC 1751 to

 

1769, and who is determined to be economically disadvantaged, as

 

reported to the department center in the form and manner prescribed

 

by the department center 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 statewide weighted average foundation

 

allowance. or the public school academy's or the education

 

achievement system's per pupil amount calculated under section 20

 

plus the amount of the district's per-pupil allocation under

 

section 20m, 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. However, a public school academy that began

 

operations as a public school academy , an achievement school that


began operations as an achievement school, or a community district

 

that first enrolls pupils, 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, in

 

the education achievement system, or in the community district who

 

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

 

milk, as determined under the Richard B. Russell national school

 

lunch act and who is determined to be economically disadvantaged,

 

as reported to the department center in the form and manner

 

prescribed by the center 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, the

 

education achievement system's, or the community district's per

 

membership pupil amount calculated under section 20 for the current

 

state fiscal year.statewide weighted average foundation allowance.

 

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

 

or public school academy receiving funds under this section shall

 

use those funds for programs and activities designed to achieve all

 

of the following:

 

     (a) The chronic absenteeism rate for economically

 

disadvantaged pupils and English language learners enrolled in the

 

district or public school academy is not more than the chronic

 

absenteeism rate for pupils enrolled in the district or public

 

school academy who are not in either of these categories, as

 

defined and calculated by the center.

 

     (b) The proportion of economically disadvantaged pupils and


English language learners who are in the bottom 30% in performance

 

on the grade 3 English language arts state assessment among pupils

 

enrolled in the district or public school academy does not exceed

 

the proportion of pupils who are not in either of these categories

 

who are in the bottom 30% in performance on the grade 3 English

 

language arts state assessment among pupils enrolled in the

 

district or public school academy, as calculated and reported by

 

the department in the top 30-bottom 30 analysis report under

 

subsection (10).

 

     (c) The proportion of economically disadvantaged pupils and

 

English language learners who are in the bottom 30% in performance

 

on the grade 8 mathematics state assessment among pupils enrolled

 

in the district or public school academy does not exceed the

 

proportion of pupils who are not in either of these categories who

 

are in the bottom 30% in performance on the grade 8 mathematics

 

state assessment among pupils enrolled in the district or public

 

school academy, as calculated and reported by the department in the

 

top 30-bottom 30 analysis report under subsection (10).

 

     (d) At least 65% of pupils in grades 9 to 12 have enrolled in

 

career and technical education programming, advanced placement or

 

international baccalaureate courses, or dual enrollment or

 

concurrent enrollment courses described in section 64b and at least

 

80% of those pupils have successfully completed the courses.

 

     (6) (5) 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, mental health, or

 

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

 

and for the purposes of subsection (6), (7), (8), or (11). (9) and

 

only in a way that is consistent with subsection (5). 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 were determined to be economically

 

disadvantaged in the immediately preceding state fiscal year, as

 

determined and reported as described in subsection (4), or the

 

education achievement system if it meets this requirement, (3), may

 

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

 

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

 

the education achievement system shall not use any of that money

 

for administrative costs. 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.

 

     (7) (6) 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.

 

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

 

is allocated for 2016-2017 2017-2018 an amount not to exceed

 

$5,557,300.00 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 health and human services. 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 (12) (13) for that fiscal year.

 

     (9) (8) From the funds allocated under subsection (1), there

 

is allocated for 2016-2017 2017-2018 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. Administrative Code. Funds shall be awarded in

 

a form and manner approved jointly by the department and the

 

department of health and human services. Notwithstanding section

 

17b, payments to eligible entities under this subsection shall be

 

paid on a schedule determined by the department.

 

     (10) The department shall calculate and publish a top 30-

 

bottom 30 analysis report annually to determine each district's

 

performance in the metrics described in subsection (5)(b) and (c).

 

In addition, the department shall publish each district's

 

performance for each of the metrics described in subsection (5) no

 

later than December 30 of each year or 1 month after fully audited

 

state assessment data is received by the department, whichever is

 

later.

 

     (11) (9) 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 in the form and manner

 

prescribed by the department, that includes a brief description of

 

each program conducted or services performed 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 or services, the total number

 

of at-risk pupils served by each of those programs or services, and

 

the data necessary for the department and the department of health

 

and human services to verify matching funds for the temporary

 

assistance for needy families program. In prescribing the form and

 

manner of the report, the department shall ensure that districts

 

are allowed to expend funds received under this section on any

 

activities that are permissible under this section. From these

 

reports, the department shall publish a summary of programs

 

conducted or services performed in districts and public school

 

academies that demonstrate significant improvements on the metrics

 

described in subsection (5), as determined by the department. 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.

 

     (12) (10) 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.

 

     (11) Subject to subsections (6), (7), and (8), a district may

 

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

 

implement schoolwide reform in schools with 40% or more of their

 

pupils identified as at-risk pupils by providing instructional or

 

noninstructional services consistent with the school improvement

 

plan.

 

     (13) (12) If necessary, and before any proration required

 

under section 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 (4).allocation as otherwise calculated under this

 

section by an equal percentage per district.

 

     (14) (13) If a district is formed by consolidation after June

 

1, 1995, and if 1 or more of the original districts were 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. In addition, if If a district is dissolved

 

pursuant to section 12 of the revised school code, MCL 380.12, the

 

intermediate district to which the dissolved school district was

 

constituent shall determine the estimated number of pupils that

 

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

 

milk, as described under subsection (4), are economically

 

disadvantaged and that are enrolled in each of the other districts

 

within the intermediate district and provide that estimate to the

 

department for the purposes of distributing funds under this

 

section within 60 days after the school district is declared

 

dissolved.

 

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

 

for whom the district has documentation that the pupil meets any of

 

the following criteria:

 

     (a) Is a victim of child abuse or neglect.

 

     (b) Is a pregnant teenager or teenage parent.

 

     (c) Has a family history of school failure, incarceration, or

 

substance abuse.

 

     (d) For pupils for whom the results of the state summative

 

assessment have been received, is a pupil who did not achieve

 

proficiency on the English language arts, mathematics, science, or

 

social studies content area assessment.

 

     (e) Is a pupil who is at risk of not meeting the district's

 

core academic curricular objectives in English language arts or

 

mathematics, as demonstrated on local assessments.

 

     (f) The pupil is enrolled in a priority or priority-successor

 

school, as defined in the elementary and secondary education act of


2001 flexibility waiver approved by the United States Department of

 

Education.

 

     (g) In the absence of state or local assessment data, the

 

pupil meets at least 2 of the following criteria, as documented in

 

a form and manner approved by the department:

 

     (i) The pupil is eligible for free or reduced price breakfast,

 

lunch, or milk.

 

     (ii) The pupil is absent more than 10% of enrolled days or 10

 

school days during the school year.

 

     (iii) The pupil is homeless.

 

     (iv) The pupil is a migrant.

 

     (v) The pupil is an English language learner.

 

     (vi) The pupil is an immigrant who has immigrated within the

 

immediately preceding 3 years.

 

     (vii) The pupil did not complete high school in 4 years and is

 

still continuing in school as identified in the Michigan cohort

 

graduation and dropout report.

 

     (15) Beginning in 2018-2019, if a district, public school

 

academy, or the education achievement system does not demonstrate

 

to the satisfaction of the department that at least 50% of at-risk

 

pupils are proficient in English language arts by the end of grade

 

3 as measured by the state assessment for the immediately preceding

 

school year and demonstrate to the satisfaction of the department

 

improvement over each of the 3 immediately preceding school years

 

in the percentage of at-risk pupils that are career- and college-

 

ready as determined by proficiency on the English language arts,

 

mathematics, and science content area assessments on the grade 11


summative assessment under section 1279g(2)(a) of the revised

 

school code, MCL 380.1279g, the district, public school academy, or

 

education achievement system shall ensure all of the following:

 

     (a) The district, public school academy, or the education

 

achievement system shall determine the proportion of total at-risk

 

pupils that represents the number of pupils in grade 3 that are not

 

proficient in English language arts by the end of grade 3, and the

 

district, public school academy, or the education achievement

 

system shall expend that same proportion multiplied by 1/2 of its

 

total at-risk funds under this section on tutoring and other

 

methods of improving grade 3 English language arts proficiency.

 

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

 

achievement system shall determine the proportion of total at-risk

 

pupils that represent the number of pupils in grade 11 that are not

 

career- and college-ready as measured by the student's score on the

 

English language arts, mathematics, and science content area

 

assessments on the grade 11 summative assessment under section

 

1279g(2)(a) of the revised school code, MCL 380.1279g, and the

 

district, public school academy, or the education achievement

 

system shall expend that same proportion multiplied by 1/2 of its

 

total at-risk funds under this section on tutoring and other

 

activities to improve scores on the college entrance examination

 

portion of the Michigan merit examination.

 

     (16) As used in subsection (15), "total at-risk pupils" means

 

the sum of the number of pupils in grade 3 that are not proficient

 

in English language arts by the end of third grade as measured on

 

the state assessment and the number of pupils in grade 11 that are


not career- and college-ready as measured by the student's score on

 

the English language arts, mathematics, and science content area

 

assessments on the grade 11 summative assessment under section

 

1279g(2)(a) of the revised school code, MCL 380.1279g.

 

     (15) Beginning in 2018-2019, if a district or public school

 

academy has not achieved all of the metrics in subsection (5) or

 

made satisfactory progress as determined by the superintendent, the

 

superintendent shall assign a team of persons with expertise in

 

comprehensive school and district reform to partner with the

 

district or public school academy, the intermediate district in

 

which it is located, community organizations, local employers,

 

education organizations, and postsecondary institutions as

 

determined by the superintendent to conduct an evaluation that

 

includes at least all of the following:

 

     (a) Reviewing the district's or public school academy's

 

implementation and utilization of its multi-tiered system of

 

supports and ensuring that the system is being used to

 

appropriately inform instruction of at-risk pupils and make

 

recommendations for changes.

 

     (b) Conducting an academic performance audit that includes

 

recommendations for changes if necessary for at least all of the

 

following:

 

     (i) District and school building leadership and educator

 

capacity to substantially improve student outcomes.

 

     (ii) Classroom, instructional, and operational practices and

 

curriculum and alignment with research-based instructional

 

practices and state curriculum standards.


     (c) Reviewing the district's use of financial resources with

 

recommendations to more effectively use those resources to improve

 

academic achievement for at-risk pupils.

 

     (d) Assurance that evaluation costs will be paid from the

 

funds received under this section only after an agreement

 

specifying the roles and responsibilities of the partners and

 

establishing 18-month benchmarks has been signed by the partners

 

and approved by the state superintendent.

 

     (16) (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.

 

     (17) (18) The department shall collaborate with the department

 

of health and human services to prioritize assigning Pathways to

 

Potential Success coaches to elementary schools that have a high

 

percentage of pupils in grades K to 3 who are not reading at grade

 

level.proficient in English language arts, based upon state

 

assessments for pupils in those grades.

 

     (18) It is the intent of the legislature that beginning in

 

2018-2019, a portion of the funds allocated under this section

 

shall be used to reimburse districts that provide transportation or

 

transportation vouchers or passes to pupils enrolled in a district

 

other than their resident district or a public school academy.

 

     (19) As used in this section:

 

     (a) "At-risk pupil" means a pupil who is economically

 

disadvantaged or an English language learner for whom the district

 

has documentation that the pupil meets any of the following


criteria:

 

     (i) The pupil did not achieve proficiency on the English

 

language arts state assessment for grade 3 or is at risk of not

 

achieving proficiency, as determined by the district or public

 

school academy using data provided as part of the multi-tiered

 

system of supports described in subsection (2).

 

     (ii) The pupil did not achieve proficiency on the mathematics

 

state assessment for grade 8 or is at risk of not achieving

 

proficiency, as determined by the district or public school academy

 

using data provided as part of the multi-tiered system of supports

 

described in subsection (2).

 

     (iii) The pupil is chronically absent as defined by and

 

reported to the center.

 

     (b) "Economically disadvantaged" means a pupil who has been

 

determined eligible for free or reduced-price meals as determined

 

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

 

to 1769; who is in a household receiving supplemental nutrition

 

assistance program or temporary assistance for needy families

 

assistance; or who is homeless, migrant, or in foster care, as

 

reported to the center.

 

     (c) "English language learner" means limited English

 

proficient pupils who speak a language other than English as their

 

primary language and have difficulty speaking, reading, writing, or

 

understanding English as reported to the center.

 

     (d) "Statewide weighted average foundation allowance" means

 

the number that is calculated by adding together the result of each

 

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


pupil payment calculated under section 20 multiplied by the number

 

of pupils in membership in that district or public school academy,

 

and then dividing that total by the statewide number of pupils in

 

membership. For the purposes of this calculation, a district's

 

foundation allowance shall not exceed the basic foundation

 

allowance under section 20 for the current state fiscal year.

 

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

 

allocated an amount not to exceed $1,500,000.00 for 2016-2017 2017-

 

2018 for grants to at-risk districts for implementing a year-round

 

balanced calendar instructional program for at least 1 of its

 

schools.

 

     (2) The department shall select districts for grants under

 

this section from among applicant districts that meet both of the

 

following:

 

     (a) The district meets 1 or both of the following:

 

     (i) Is eligible in 2016-2017 2017-2018 for the community

 

eligibility option for free and reduced price lunch under 42 USC

 

1759a.

 

     (ii) At least 50% of the pupils in membership in the district

 

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

 

milk in the immediately preceding state fiscal year, as determined

 

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

 

to 1769i.

 

     (b) The board of the district has adopted a resolution stating

 

that the district will implement for the first time a year-round

 

balanced calendar instructional calendar program that will begin in

 

2017-2018 2018-2019 for at least 1 school operated by the district


and committing to providing the year-round balanced calendar

 

instructional calendar program in each of those schools for at

 

least 3 school years.

 

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

 

to the department in the form and manner prescribed by the

 

department not later than December 1, 2016. 2017. The department

 

shall select districts for grants and make notification not later

 

than February 1, 2017.2018.

 

     (4) The department shall award grants under this section on a

 

competitive basis, but shall give priority based solely on

 

consideration of the following criteria:

 

     (a) Giving priority to districts that, as of June 30, 2016, in

 

the immediately preceding fiscal year, had lower general fund

 

balances as a percentage of revenues.

 

     (b) Giving priority to districts that operate at least 1

 

school that has been identified by the department as either a

 

priority school or a focus school.

 

     (c) Ensuring that grant funding includes both rural and urban

 

districts.

 

     (5) The amount of a grant under this section to any 1 district

 

shall not exceed $750,000.00.

 

     (6) A grant payment under this section to a district shall be

 

used for necessary modifications to instructional facilities and

 

other nonrecurring costs of preparing for the operation of a year-

 

round balanced calendar instructional program as approved by the

 

department.

 

     (7) A district receiving a grant under this section is not


required to provide more than the minimum number of days and hours

 

of pupil instruction prescribed under section 101, but shall spread

 

at least those minimum amounts of pupil instruction over the entire

 

year in each of its schools in which a year-round balanced calendar

 

instructional calendar is implemented. The district shall commit to

 

providing the year-round balanced calendar instructional calendar

 

in each of those schools for at least 3 school years.

 

     (8) For a district receiving a grant under this section,

 

excessive heat is considered to be a condition not within the

 

control of school authorities for the purpose of days or hours

 

being counted as days or hours of pupil instruction under section

 

101(4).

 

     (9) Notwithstanding section 17b, grant payments to districts

 

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

 

department.

 

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

 

allocated an amount not to exceed $22,495,100.00 for 2016-2017

 

2017-2018 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.


104458-104492.456 Mich 175 (1997).

 

     (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 2016-2017 2017-2018 all available federal funding,

 

estimated at $510,000,000.00 $520,000,000.00 for the national

 

school lunch program and all available federal funding, estimated

 

at $3,200,000.00 for the emergency food assistance program.

 

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

 

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

 

determined by the department.

 

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

 

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

 

produced by Michigan businesses if it is competitively priced and

 

of comparable quality.

 

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

 

allocated an amount not to exceed $2,500,000.00 for 2015-2016 and

 

there is allocated an amount not to exceed $2,500,000.00 for 2016-

 

2017 $4,500,000.00 each fiscal year for 2016-2017 and for 2017-2018


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 $243,600,000.00 for 2016-2017. 2017-2018. Funds

 

allocated under this section for great start readiness programs

 

shall be used to provide part-day, school-day, or GSRP/head start

 

GSRP/Head Start blended comprehensive free compensatory classroom

 

programs designed to improve the readiness and subsequent

 

achievement of educationally disadvantaged children who meet the

 

participant eligibility and prioritization guidelines as defined by

 

the department. 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 September 1 of the school year in which

 

the program is offered and shall meet those eligibility and

 

prioritization guidelines.

 

     (2) Funds allocated under subsection (1) shall be allocated to

 

intermediate districts or consortia of intermediate districts based

 

on the formula in section 39. An intermediate district or

 

consortium of intermediate districts receiving funding under this

 

section shall act as the fiduciary for the great start readiness

 

programs. In order to be eligible to receive funds allocated under

 

this subsection from an intermediate district or consortium of

 

intermediate districts, a district, a consortium of districts, or a

 

public or private for-profit or nonprofit legal entity or agency

 

shall comply with this section and section 39.

 

     (3) In addition to the allocation under subsection (1), from

 

the general fund money appropriated under section 11, there is

 

allocated an amount not to exceed $300,000.00 for 2016-2017 2017-

 

2018 for a competitive grant to continue a longitudinal evaluation

 

of children who have participated in great start readiness


programs. An entity that has an approved great start readiness

 

program curriculum is not eligible for a grant under this

 

subsection.

 

     (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 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 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, including, but

 

not limited to, the Connect4Learning curriculum.

 

     (c) Nutritional services for all program participants

 

supported by federal, state, and local resources as applicable.

 

     (d) Physical and dental health and developmental screening

 

services for all program participants.

 

     (e) Referral services for families of program participants to

 

community social service agencies, including mental health

 

services, 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 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 and make recommendations

 

regarding the program components listed in this subsection. The

 

advisory committee also shall make recommendations to the great

 

start collaborative regarding other community services designed to

 

improve all children's school readiness.

 

     (i) The ongoing articulation of the kindergarten and first

 

grade programs offered by the program provider.

 

     (j) Participation in this state's great start to quality

 

process with a rating of at least 3 stars.

 

     (5) An application for funding under this section shall

 

provide for the following, in a form and manner determined by the

 

department:

 

     (a) Ensure compliance with all program components described in

 

subsection (4).

 

     (b) Except as otherwise provided in this subdivision, ensure

 

that at least 90% all of the children participating in an eligible

 

great start readiness program for whom the intermediate district is

 

receiving funds under this section are children who live with

 

families with a household income that is equal to or less than 250%

 

of the federal poverty level. If the intermediate district

 

determines that all eligible children are being served and that


there are no children on the waiting list under section 39(1)(d)

 

who live with families with a household income that is equal to or

 

less than 250% of the federal poverty level, the intermediate

 

district may then enroll children who live with families with a

 

household income that is equal to or less than 300% of the federal

 

poverty level. The enrollment process shall consider income and

 

risk factors, such that children determined with higher need are

 

enrolled before children with lesser need. For purposes of this

 

subdivision, all age-eligible children served in foster care or who

 

are experiencing homelessness or who have individualized education

 

plans recommending placement in an inclusive preschool setting

 

shall be considered to live with families with household income

 

equal to or less than 250% of the federal poverty level regardless

 

of actual family income and shall be prioritized for enrollment

 

within the lowest quintile.

 

     (c) Ensure that the applicant only uses qualified personnel

 

for this program, as follows:

 

     (i) Teachers possessing proper training. A lead teacher must

 

have a valid teaching certificate with an early childhood (ZA or

 

ZS) endorsement or a bachelor's or higher degree in child

 

development or early childhood education 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 education, 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 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 described in section 39 for

 

purposes of determining the amount of the grant award.

 

     (7) For a grant recipient that enrolls pupils in a GSRP/head

 

start GSRP/Head Start blended program, the grant recipient shall

 

ensure that all head start Head Start and GSRP policies and

 

regulations are applied to the blended slots, with adherence to the

 

highest standard from either program, to the extent allowable under

 

federal law.

 

     (8) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall designate an

 

early childhood coordinator, and may provide services directly or

 

may contract with 1 or more districts or public or private for-

 

profit or nonprofit providers that meet all requirements of

 

subsections (4) and (5).

 

     (9) An intermediate district or consortium of intermediate

 

districts may retain for administrative services provided by the

 

intermediate district or consortium of intermediate districts an

 

amount not to exceed 4% of the grant amount. Expenses incurred by

 

subrecipients engaged by the intermediate district or consortium of

 

intermediate districts for directly running portions of the program

 

shall be considered program costs or a contracted program fee for

 

service.


     (10) An intermediate district or consortium of intermediate

 

districts may expend not more than 2% of the total grant amount for

 

outreach, recruiting, and public awareness of the program.

 

     (11) Each grant recipient shall enroll children identified

 

under subsection (5)(b) according to how far the child's household

 

income is below 250% of the federal poverty level by ranking each

 

applicant child's household income from lowest to highest and

 

dividing the applicant children into quintiles based on how far the

 

child's household income is below 250% of the federal poverty

 

level, and then enrolling children in the quintile with the lowest

 

household income before enrolling children in the quintile with the

 

next lowest household income. until slots are completely filled. If

 

the grant recipient determines that all eligible children are being

 

served and that there are no children on the waiting list under

 

section 39(1)(d) who live with families with a household income

 

that is equal to or less than 250% of the federal poverty level,

 

the grant recipient may then enroll children who live with families

 

with a household income that is equal to or less than 300% of the

 

federal poverty level. The enrollment process shall consider income

 

and risk factors, such that children determined with higher need

 

are enrolled before children with lesser need. For purposes of this

 

subdivision, all age-eligible children served in foster care or who

 

are experiencing homelessness or who have individualized education

 

plans recommending placement in an inclusive preschool setting

 

shall be considered to live with families with household income

 

equal to or less than 250% of the federal poverty level regardless

 

of actual family income and shall be prioritized for enrollment


within the lowest quintile.

 

     (12) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall allow parents

 

of eligible children who are residents of the intermediate district

 

or within the consortium to choose a program operated by or

 

contracted with another intermediate district or consortium of

 

intermediate districts and shall enter into a written agreement

 

regarding payment, in a manner prescribed by the department.

 

     (13) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall conduct a

 

local process to contract with interested and eligible public and

 

private for-profit and nonprofit community-based providers that

 

meet all requirements of subsection (4) for at least 30% of its

 

total slot allocation. For the purposes of this 30% allocation, an

 

intermediate district or consortium of intermediate districts may

 

count children served by a head start Head Start grantee or

 

delegate in a blended head start Head Start and great start

 

readiness school-day program. Children served in a program funded

 

only through head start Head Start shall not be counted toward this

 

30% allocation. The intermediate district or consortium shall

 

report to the department, in a manner prescribed by the department,

 

a detailed list of community-based providers by provider type,

 

including private for-profit, private nonprofit, community college

 

or university, head start Head Start grantee or delegate, and

 

district or intermediate district, and the number and proportion of

 

its total slot allocation allocated to each provider as

 

subrecipient. If the intermediate district or consortium is not


able to contract for at least 30% of its total slot allocation, the

 

grant recipient shall notify the department and, if the department

 

verifies that the intermediate district or consortium attempted to

 

contract for at least 30% of its total slot allocation and was not

 

able to do so, then the intermediate district or consortium may

 

retain and use all of its allocated slots allocation as provided

 

under this section. To be able to use this exemption, the

 

intermediate district or consortium shall demonstrate to the

 

department that the intermediate district or consortium increased

 

the percentage of its total slot allocation for which it contracts

 

with a community-based provider and the intermediate district or

 

consortium shall submit evidence satisfactory to the department,

 

and the department must be able to verify this evidence,

 

demonstrating that the intermediate district or consortium took

 

measures to contract for at least 30% of its total slot allocation

 

as required under this subsection, including, but not limited to,

 

at least all of the following measures:

 

     (a) The intermediate district or consortium notified each

 

nonparticipating licensed child care center located in the service

 

area of the intermediate district or consortium regarding the

 

center's eligibility to participate, in a manner prescribed by the

 

department.

 

     (b) The intermediate district or consortium provided to each

 

nonparticipating licensed child care center located in the service

 

area of the intermediate district or consortium information

 

regarding great start readiness program requirements and a

 

description of the application and selection process for community-


based providers.

 

     (c) The intermediate district or consortium provided to the

 

public and to participating families a list of community-based

 

great start readiness program subrecipients with a great start to

 

quality rating of at least 3 stars.

 

     (14) If an intermediate district or consortium of intermediate

 

districts receiving a grant under this section fails to submit

 

satisfactory evidence to demonstrate its effort to contract for at

 

least 30% of its total slot allocation, as required under

 

subsection (1), the department shall reduce the slots allocated

 

allocation to the intermediate district or consortium by a

 

percentage equal to the difference between the percentage of an

 

intermediate district's or consortium's total slot allocation

 

awarded to community-based providers and 30% of its total slot

 

allocation.

 

     (15) In order to assist intermediate districts and consortia

 

in complying with the requirement to contract with community-based

 

providers for at least 30% of their total slot allocation, the

 

department shall do all of the following:

 

     (a) Ensure that a great start resource center or the

 

department provides each intermediate district or consortium

 

receiving a grant under this section with the contact information

 

for each licensed child care center located in the service area of

 

the intermediate district or consortium by March 1 of each year.

 

     (b) Provide, or ensure that an organization with which the

 

department contracts provides, a community-based provider with a

 

validated great start to quality rating within 90 days of the


provider's having submitted a request and self-assessment.

 

     (c) Ensure that all intermediate district, district, community

 

college or university, head start Head Start grantee or delegate,

 

private for-profit, and private nonprofit providers are subject to

 

a single great start to quality rating system. The rating system

 

shall ensure that regulators process all prospective providers at

 

the same pace on a first-come, first-served basis and shall not

 

allow 1 type of provider to receive a great start to quality rating

 

ahead of any other type of provider.

 

     (d) Not later than December 1 of each year, compile the

 

results of the information reported by each intermediate district

 

or consortium under subsection (10) and report to the legislature a

 

list by intermediate district or consortium with the number and

 

percentage of each intermediate district's or consortium's total

 

slot allocation allocated to community-based providers by provider

 

type, including private for-profit, private nonprofit, community

 

college or university, head start Head Start grantee or delegate,

 

and district or intermediate district.

 

     (16) 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 eligibility criteria under subsection (5)(b) and the total

 

number of children participating in the program. For children

 

participating in the program who meet the income 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 health

 

and 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.

 

     (17) As used in this section:

 

     (a) "GSRP/head start "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.

 

     (18) An intermediate district or consortium of intermediate

 

districts receiving funds under this section shall establish and

 

charge tuition according to a sliding scale of tuition rates based

 

upon household income for children participating in an eligible

 

great start readiness program who live with families with a

 

household income that is more than 250% of the federal poverty

 

level to be used by all of its providers, as approved by the

 

department. A grant recipient shall charge tuition according to

 

that sliding scale of tuition rates on a uniform basis for any

 

child who does not meet the income eligibility requirements under


this section.

 

     (19) From the amount appropriated in subsection (1), there is

 

allocated an amount not to exceed $10,000,000.00 for reimbursement

 

of transportation costs for children attending great start

 

readiness programs funded under this section. To receive

 

reimbursement under this subsection, not later than November 1,

 

2016,2017, a program funded under this section that provides

 

transportation shall submit to the intermediate district that is

 

the fiscal agent for the program a projected transportation budget.

 

The amount of the reimbursement for transportation under this

 

subsection shall be no more than the projected transportation

 

budget or $150.00 $300.00 multiplied by the number of slots

 

children funded for the program under this section. If the amount

 

allocated under this subsection is insufficient to fully reimburse

 

the transportation costs for all programs that provide

 

transportation and submit the required information, the

 

reimbursement shall be prorated in an equal amount per slot child

 

funded. Payments shall be made to the intermediate district that is

 

the fiscal agent for each program, and the intermediate district

 

shall then reimburse the program provider for transportation costs

 

as prescribed under this subsection.

 

     Sec. 32p. (1) From the school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$13,400,000.00 to intermediate districts for 2016-2017 2017-2018

 

for the purpose of providing early childhood funding to

 

intermediate school districts to support the activities under

 

subsection (2) and subsection (4), and to provide early childhood


programs for children from birth through age 8. The funding

 

provided to each intermediate district under this section shall be

 

determined by the distribution formula established by the

 

department's office of great start to provide equitable funding

 

statewide. In order to receive funding under this section, each

 

intermediate district shall provide an application to the office of

 

great start not later than September 15 of the immediately

 

preceding fiscal year indicating the activities planned to be

 

provided.

 

     (2) Each intermediate district or consortium of intermediate

 

districts that receives funding under this section shall convene a

 

local great start collaborative and a parent coalition. The goal of

 

each great start collaborative and parent coalition shall be to

 

ensure the coordination and expansion of local early childhood

 

infrastructure and programs that allow every child in the community

 

to achieve the following outcomes:

 

     (a) Children born healthy.

 

     (b) Children healthy, thriving, and developmentally on track

 

from birth to third grade.

 

     (c) Children developmentally ready to succeed in school at the

 

time of school entry.

 

     (d) Children prepared to succeed in fourth grade and beyond by

 

reading proficiently by the end of third grade.

 

     (3) Each local great start collaborative and parent coalition

 

shall convene workgroups to make recommendations about community

 

services designed to achieve the outcomes described in subsection

 

(2) and to ensure that its local great start system includes the


following supports for children from birth through age 8:

 

     (a) Physical health.

 

     (b) Social-emotional health.

 

     (c) Family supports and basic needs.

 

     (d) Parent education.

 

     (e) Early education, including the child's vocabulary

 

development of skills linked to success in foundational literacy,

 

and care.

 

     (4) From the funds allocated in subsection (1), at least

 

$2,500,000.00 shall be used for the purpose of providing home

 

visits to at-risk children and their families. The home visits

 

shall be conducted as part of a locally coordinated, family-

 

centered, evidence-based, data-driven home visit strategic plan

 

that is approved by the department. The goals of the home visits

 

funded under this subsection shall be to improve school readiness

 

using evidence-based methods, including vocabulary development, a

 

focus on developmentally appropriate outcomes for early literacy,

 

to reduce the number of pupils retained in grade level, and to

 

reduce the number of pupils requiring special education services.

 

The department shall coordinate the goals of the home visit

 

strategic plans approved under this subsection with other state

 

agency home visit programs in a way that strengthens Michigan's

 

home visiting infrastructure and maximizes federal funds available

 

for the purposes of at-risk family home visits. The coordination

 

among departments and agencies is intended to avoid duplication of

 

state services and spending, and should emphasize efficient service

 

delivery of home visiting programs.


     (5) Not later than December 1 of each year, each intermediate

 

district shall provide a report to the department detailing the

 

activities actually provided during the immediately preceding

 

school year and the families and children actually served. At a

 

minimum, the report shall include an evaluation of the services

 

provided with additional funding under subsection (4) for home

 

visits, using the goals identified in subsection (4) as the basis

 

for the evaluation, including the degree to which school readiness

 

was improved, any change in the number of pupils retained at grade

 

level, and any change in the number of pupils receiving special

 

education services. 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 not later than February 15 of each year.

 

     (6) An intermediate district or consortium of intermediate

 

districts that receives funding under this section may carry over

 

any unexpended funds received under this section into the next

 

fiscal year and may expend those unused funds through June 30 of

 

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. 35a. (1) From the appropriations in section 11, there is

 

allocated for 2015-2016 for the purposes of this section an amount

 

not to exceed $19,000,000.00 from the state school aid fund

 

appropriation and an amount not to exceed $1,500,000.00 from the

 

general fund appropriation. From the appropriations in section 11,


there is allocated for 2016-2017 for the purposes of this section

 

2017-2018 an amount not to exceed $22,900,000.00 from the state

 

school aid fund and an amount not to exceed $1,000,000.00 from the

 

general fund.$25,400,000.00 for programs to ensure pupils are

 

reading at grade level by the end of grade 3.

 

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

 

allocated an amount not to exceed $950,000.00 each fiscal year for

 

2015-2016 and for 2016-2017 for professional development purposes

 

under this subsection. The 2016-2017 allocation represents the

 

second of 2 years of funding for the purposes of this subsection.

 

All of the following apply to funding under this subsection:

 

     (2) (a) The department shall award grants to districts A

 

district that receives funds under this section may use funds to

 

support professional development for educators in a department-

 

approved research-based training program related to current state

 

literacy standards for pupils in grades K to 3. The professional

 

development shall also include training in the use of screening and

 

diagnostic tools, progress monitoring, and intervention methods

 

used to address barriers to learning and delays in learning that

 

are diagnosed through the use of these tools. The department shall

 

determine the amount of the grant awards.

 

     (b) In addition to other methods of professional development

 

delivery, the department shall collaborate with the Michigan

 

Virtual University to provide this training online to all educators

 

of pupils in grades K to 3.

 

     (c) The funds allocated under this subsection for 2015-2016

 

are a work project appropriation, and any unexpended funds for


2015-2016 are carried forward into 2016-2017. The purpose of the