SB-0146, As Passed Senate, May 15, 2019

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 146

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 4, 6, 8b, 11, 11a, 11j, 11k, 11m, 11s, 15, 18,

 

20, 20d, 20f, 21h, 22a, 22b, 22d, 22m, 22p, 24, 24a, 25e, 25f, 25g,

 

26a, 26b, 26c, 31a, 31b, 31d, 31f, 31j, 31n, 32d, 32p, 35a, 39,

 

39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 54d, 55, 56, 61a, 61b, 61c,

 

61d, 61f, 62, 65, 67, 74, 74a, 81, 94, 94a, 95a, 98, 99h, 99s, 99t,

 

99u, 99v, 99x, 101, 102d, 104, 104d, 107, 147, 147a, 147c, 147e,

 

152a, and 152b (MCL 388.1604, 388.1606, 388.1608b, 388.1611,

 

388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1611s, 388.1615,

 

388.1618, 388.1620, 388.1620d, 388.1620f, 388.1621h, 388.1622a,

 

388.1622b, 388.1622d, 388.1622m, 388.1622p, 388.1624, 388.1624a,

 

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

 

388.1631a, 388.1631b, 388.1631d, 388.1631f, 388.1631j, 388.1631n,

 


388.1632d, 388.1632p, 388.1635a, 388.1639, 388.1639a, 388.1641,

 

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

 

388.1654d, 388.1655, 388.1656, 388.1661a, 388.1661b, 388.1661c,

 

388.1661d, 388.1661f, 388.1662, 388.1665, 388.1667, 388.1674,

 

388.1674a, 388.1681, 388.1694, 388.1694a, 388.1695a, 388.1698,

 

388.1699h, 388.1699s, 388.1699t, 388.1699u, 388.1699v, 388.1699x,

 

388.1701, 388.1702d, 388.1704, 388.1704d, 388.1707, 388.1747,

 

388.1747a, 388.1747c, 388.1747e, 388.1752a, and 388.1752b),

 

sections 4 and 8b as amended by 2017 PA 108, sections 6, 11, 18,

 

31a, 31j, 32d, 35a, 39a, 99h, 99u, and 101 as amended and sections

 

31n, 61f, 74a, and 99x as added by 2018 PA 586, sections 11a, 11j,

 

11k, 11m, 11s, 15, 20, 20d, 20f, 21h, 22a, 22b, 22d, 22m, 24, 24a,

 

25e, 25f, 25g, 26a, 26b, 26c, 31b, 31d, 31f, 32p, 39, 41, 51a, 51c,

 

51d, 53a, 54, 54b, 55, 56, 61a, 61b, 61c, 62, 65, 67, 74, 81, 94,

 

94a, 98, 99s, 99t, 102d, 104, 104d, 107, 147, 147a, 147c, 147e,

 

152a, and 152b as amended and sections 22p, 54d, 61d, and 99v as

 

added by 2018 PA 265, and section 95a as amended by 2015 PA 85, and

 

by adding sections 67a, 97, and 99z; and to repeal acts and parts

 

of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4. (1) "Elementary pupil" means a pupil in membership in

 

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

 

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

 

above the eighth grade or a child enrolled and in regular

 

attendance in a publicly funded prekindergarten setting. 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) "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 must 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) "Fiscal year" means the state fiscal year that commences

 

October 1 and continues through September 30.

 

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

 

granted for the successful completion of a high school equivalency

 

test.

 

     (5) "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 Educational Testing Service (ETS), or

 

another comparable test approved by the department of talent and

 

economic development.

 

     (6) "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) "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 serves all constituent districts within an

 

intermediate district or shall serve serves 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 1412 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, 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 is

 

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, "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 sum of the final audited

 

count from the supplemental count day of pupils in grades K to 12

 

actually enrolled and in regular daily attendance in the community

 

district for the immediately preceding school year. plus the final

 

audited count from the supplemental count day of pupils in grades K

 

to 12 actually enrolled and in regular daily attendance in the

 

education achievement system 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.

 

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,

 

or an intermediate district:

 

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

 

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

 

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

 

individual pupil shall not be counted for more than a total of 1.0

 

full-time equated membership.

 

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

 

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

 

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

 

of residence does not give the educating district its approval to

 

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

 

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

 

the requirement that the educating district must have the approval

 

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

 

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

 

any district.

 

     (c) A special education pupil educated by the intermediate

 

district shall be is 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 is counted in membership in the

 

district or intermediate district approved by the department to

 

operate the program.

 

     (e) A pupil enrolled in the Michigan Schools for the Deaf and

 

Blind shall be is 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 under section 690 of the revised

 

school code, MCL 380.690, shall be is counted in membership only in

 

the pupil's district of residence.

 

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

 

counted in membership in the public school academy.

 

     (h) For the purposes of this section and section 6a, for a

 

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

 

MCL 380.551, that 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. For the purposes of this

 

subdivision, for a pupil enrolled in a cyber school and utilizing

 

sequential learning, participation means that term as defined in

 

the pupil accounting manual, section 5-o-d: requirements for


counting pupils in membership-subsection 10.

 

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

 

operation after December 31, 1994, membership for the first 2 full

 

or partial fiscal years of operation shall be is 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 excludes 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) 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

 

is counted in membership.

 

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

 

minimum age requirement to be eligible to attend school under

 

section 1147 of the revised school code, MCL 380.1147, or shall

 

must be enrolled under subsection (3) of that section, and shall

 

must 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 is 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 is not counted in membership. An individual who has achieved

 

a high school equivalency certificate shall not be is not counted

 

in membership unless the individual is a student with a disability

 

as defined in R 340.1702 of the Michigan Administrative Code. An

 

individual participating in a job training program funded under

 

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

 

107b, administered by the department of talent and economic

 

development, or participating in any successor of either of those 2

 

programs, shall not be is not counted in membership.

 

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

 

academy is also educated by a district or intermediate district as

 

part of a cooperative education program, the pupil shall be is

 

counted in membership only in the public school academy unless a

 

written agreement signed by all parties designates the party or

 

parties in which the pupil shall be is counted in membership, and

 

the instructional time scheduled for the pupil in the district or


intermediate district shall be is 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 and in a district or intermediate district but not as a

 

part of a cooperative education program, the following apply:

 

     (i) If the public school academy provides instruction for at

 

least 1/2 of the class hours required under section 101, the public

 

school academy shall receive receives as its prorated share of the

 

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

 

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

 

school academy provides divided by the number of hours required

 

under section 101 for full-time equivalency, and the remainder of

 

the full-time membership for each of those pupils shall be is

 

allocated to the district or intermediate district providing the

 

remainder of the hours of instruction.

 

     (ii) If the public school academy provides instruction for

 

less than 1/2 of the class hours required under section 101, the

 

district or intermediate district providing the remainder of the

 

hours of instruction shall receive receives 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 is allocated to the public school academy.

 

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

 

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


education program shall not be is not 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 must be consistent with section 101. In

 

determining full-time equated memberships for pupils who are

 

enrolled in a postsecondary institution or for pupils engaged in an

 

internship or work experience under section 1279h of the revised

 

school code, MCL 380.1279h, a pupil shall not be is not considered

 

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

 

effect of his or her postsecondary enrollment or engagement in the

 

internship or work experience, 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 are 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 are 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 that has pupils

 

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

 

public school academy in the immediately preceding school year, the

 

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

 

membership is the average of the number of those pupils enrolled

 

and in regular daily attendance on the pupil membership count day

 

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

 

determined by the department. Membership shall be is 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 is 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

 

within 45 days after the pupil membership count day, the department

 

shall adjust the district's pupil count for the pupil membership

 

count day to include the pupil in the count.


     (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 is 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 shall be are 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 shall be are 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 is not 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 is excluded

 

from the district's immediately preceding supplemental count for

 

the purposes of determining the district's membership.

 

     (bb) A district or public school academy 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 under section 1148(2) of the

 

revised school code, MCL 380.1148, shall be is counted in the

 

educating district.

 

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

 

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

 

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 must 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 is 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 is 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 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 other public school academy receives

 

the same amount of membership aid for the pupil as if the pupil

 

were counted in the district or 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 is 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 is

 

counted in membership in the community district.

 

     (ii) A part-time pupil enrolled in a nonpublic school in

 

grades K to 12 in accordance with section 166b shall not be counted

 

as more than 0.75 of a full-time equated membership.

 

     (jj) A district that borders another state or a public school

 

academy that operates at least grades 9 to 12 and is located within

 

20 miles of a border with another state may count in membership a

 

pupil who is enrolled in a course at a college or university that

 

is located in the bordering state and within 20 miles of the border

 

with this state if all of the following are met:

 

     (i) The pupil would meet the definition of an eligible student

 

under the postsecondary enrollment options act, 1996 PA 160, MCL

 

388.511 to 388.524, if the course were an eligible course under

 

that act.

 

     (ii) The course in which the pupil is enrolled would meet the

 

definition of an eligible course under the postsecondary enrollment

 

options act, 1996 PA 160, MCL 388.511 to 388.524, if the course

 

were provided by an eligible postsecondary institution under that

 

act.


     (iii) The department determines that the college or university

 

is an institution that, in the other state, fulfills a function

 

comparable to a state university or community college, as those

 

terms are defined in section 3 of the postsecondary enrollment

 

options act, 1996 PA 160, MCL 388.513, or is an independent

 

nonprofit degree-granting college or university.

 

     (iv) The district or public school academy pays for a portion

 

of the pupil's tuition at the college or university in an amount

 

equal to the eligible charges that the district or public school

 

academy would pay to an eligible postsecondary institution under

 

the postsecondary enrollment options act, 1996 PA 160, MCL 388.511

 

to 388.524, as if the course were an eligible course under that

 

act.

 

     (v) The district or public school academy awards high school

 

credit to a pupil who successfully completes a course as described

 

in this subdivision.

 

     (kk) 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.

 

     (ll) If a district's or public school academy's membership for

 

a particular fiscal year, as otherwise calculated under this

 

subsection, includes pupils counted in membership who are enrolled

 

under section 166b, all of the following apply for the purposes of


this subdivision:

 

     (i) If the district's or public school academy's membership

 

for pupils counted under section 166b equals or exceeds 5% of the

 

district's or public school academy's membership for pupils not

 

counted in membership under section 166b in the immediately

 

preceding fiscal year, then the growth in the district's or public

 

school academy's membership for pupils counted under section 166b

 

must not exceed 10%.

 

     (ii) If the district's or public school academy's membership

 

for pupils counted under section 166b is less than 5% of the

 

district's or public school academy's membership for pupils not

 

counted in membership under section 166b in the immediately

 

preceding fiscal year, then the district's or public school

 

academy's membership for pupils counted under section 166b must not

 

exceed the greater of the following:

 

     (A) 5% of the district's or public school academy's membership

 

for pupils not counted in membership under section 166b.

 

     (B) 10% more than the district's or public school academy's

 

membership for pupils counted under section 166b in the immediately

 

preceding fiscal year.

 

     (iii) If 1 or more districts consolidate or are parties to an

 

annexation, then the calculations under subdivisions (i) and (ii)

 

must be applied to the combined total membership for pupils counted

 

in those districts for the fiscal year immediately preceding the

 

consolidation or annexation.

 

     (mm) Beginning with the 2019-2020 school year, if a district,

 

intermediate district, or public school academy charges tuition for


a pupil that resided out of state in the immediately preceding

 

school year, the pupil shall not be counted in membership in the

 

district, intermediate district, or public school academy.

 

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

 

section 5 of the revised school code, MCL 380.5.

 

     (6) "Pupil" means an individual 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.

 

     (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 is not 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 is not counted as

 

1.0 full-time equated membership. In addition, a pupil who was

 

enrolled and in attendance in a district, intermediate district, or

 

public school academy before the pupil membership count day or

 

supplemental count day of a particular year but was expelled or

 

suspended on the pupil membership count day or supplemental count

 

day shall is only be counted as 1.0 full-time equated membership if

 

the pupil resumed attendance in the district, intermediate

 

district, or public school academy within 45 days after the pupil

 

membership count day or supplemental count day of that particular


year. Pupils A pupil not counted as 1.0 full-time equated

 

membership due to an absence from a class shall be is 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, a teacher engaged to

 

teach under section 1233b of the revised school code, MCL

 

380.1233b, or an individual working under a valid substitute

 

permit, authorization, or approval issued by the department, 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 the revised school code,

 

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 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 this article.

 

     Sec. 8b. (1) The department shall work with the center to


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 or the center does not assign a district

 

code to a public school academy within the 30-day period described

 

in subsection (1), the district code to be used by the department

 

shall use to make payments under this article to the newly

 

authorized public school academy shall be is 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 to

 

be used by the department shall use to make payments under this

 

article to the newly authorized public school academy shall be is 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, then the

 

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

 

public school academies in excess of 100. If the number of public

 

school academies in a county grows to exceed 200, then the third

 

digit in this 5-digit number is 5 for the public school academies

 

in excess of 200.

 

     (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, 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 the 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, 2018,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$12,682,127,200.00 from the state school aid fund, the sum of

 

$78,500,000.00 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, an amount not to exceed $23,100,000.00 from the

 

MPSERS retirement obligation reform reserve fund, and an amount not


to exceed $100.00 from the water emergency reserve fund. For the

 

fiscal year ending September 30, 2019, there is appropriated for

 

the public schools of this state and certain other state purposes

 

relating to education the sum of $12,876,825,200.00

 

$12,828,425,200.00 from the state school aid fund, the sum of

 

$87,920,000.00 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, an amount not to exceed $31,900,000.00

 

$30,000,000.00 from the MPSERS retirement obligation reform reserve

 

fund, an amount not to exceed $30,000,000.00 from the school mental

 

health and support services fund created under section 31m, and an

 

amount not to exceed $100.00 from the water emergency reserve fund.

 

For the fiscal year ending September 30, 2020, there is

 

appropriated for the public schools of this state and certain other

 

state purposes relating to education the sum of $13,148,679,300.00

 

from the state school aid fund, the sum of $268,000,000.00 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, an amount not

 

to exceed $1,900,000.00 from the MPSERS retirement obligation

 

reform reserve fund, and an amount not to exceed $100.00 from the

 

water emergency reserve fund. In addition, all available federal

 

funds are appropriated each fiscal year for the fiscal years ending

 

September 30, 2018 2019 and September 30, 2019.2020.

 

     (2) The appropriations under this section shall be are

 

allocated as provided in this article. Money appropriated under


this section from the general fund shall must 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 must 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 remains in the school aid stabilization

 

fund and shall does 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 1/2 of the available money in the

 

school aid stabilization fund. If 1/2 of the available 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 must be prorated in the manner provided under

 

section 296(3).

 

     (7) For 2018-2019, 2019-2020, 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 $125,500,000.00 for 2018-2019

 

2019-2020 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 must be paid in full.

 

     Sec. 11k. For 2018-2019, 2019-2020, 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 2017-2018 2018-2019 an amount not to exceed

 

$18,000,000.00 $43,000,000.00 and there is allocated for 2018-2019

 

2019-2020 an amount not to exceed $24,000,000.00 $56,000,000.00 for

 

fiscal year cash-flow borrowing costs solely related to the state

 

school aid fund established by section 11 of article IX of the

 

state constitution of 1963.

 

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

 

11, there is allocated $3,230,000.00 for 2018-2019 $8,075,100.00

 

for 2019-2020 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 3 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 for fiscal year

 

2018-2019 2019-2020 $100.00 from the water emergency reserve fund


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 3 4

 

fiscal years and that has at least 4,500 pupils in membership for

 

the 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 $2,625,000.00 for 2018-2019 $2,425,000.00 for 2019-2020 for

 

the purpose of employing school nurses, classroom aides, and school

 

social workers. The district shall provide a report to the

 

department in a form, manner, and frequency 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 must 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) For 2018-2019 2019-2020 only, from the allocation in


subsection (1), there is allocated an amount not to exceed $0.00

 

$4,000,000.00 to an intermediate district that has a constituent

 

district described in subsection (2) 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. between age 3

 

and age 5. 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.

 

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

 

an amount not to exceed $1,000,000.00 for 2019-2020 to the

 

intermediate district 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 32d. The department shall

 

administer this funding consistent with all other provisions that

 

apply to great start readiness programs under sections 32d and 39.

 

     (5) (4) For 2018-2019, 2019-2020, from the allocation in

 

subsection (1), there is allocated an amount not to exceed

 

$605,000.00 $650,000.00 for nutritional services to children

 

described in subsection (1).

 

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

 

appropriated in this section, there is appropriated an amount not

 

to exceed $15,000,000.00 for fiscal year 2018-2019 2019-2020 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.

 

     (7) (6) Notwithstanding section 17b, the department shall make

 

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, the

 

department shall adjust 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 must 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 9 4 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. However, a district that has

 

presented satisfactory evidence of hardship and is undergoing an

 

extended adjustment during 2018-2019 may continue to use the period

 

of extended adjustment as originally granted by the department.

 

     (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

 

department shall calculate 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 must 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) If the department makes an adjustment under this section

 

based in whole or in part on a membership audit finding that a

 

district or intermediate district employed an educator in violation

 

of certification requirements under the revised school code and

 

rules promulgated by the department, the department shall prorate

 

the adjustment according to the period of noncompliance with the

 

certification requirements.

 

     (5) (4) The department may conduct audits, or may direct

 

audits by designee of the department, for the current fiscal year

 

and the immediately preceding fiscal year of all records related to

 

a program for which a district or intermediate district has

 

received funds under this article.

 

     (6) (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.

 

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


all programs and services, there is appropriated for 2018-2019

 

2019-2020 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 A district or other entity shall not apply

 

or take the money 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 visual displays:

 

     (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 benefit 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 must 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 must 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 must 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 must 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 must include object

 

classifications of salary, benefits, including categories for

 

active employee health expenditures, purchased services, supplies,

 

capital outlay, and other. Districts A district 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 center the special

 

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

 

the manner prescribed by the center. An intermediate district shall

 

certify the audit of a district's report.

 

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

 

district shall file with the center the audited transportation

 

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

 

prescribed by the center. An intermediate district shall certify

 

the audit of a district's report.

 

     (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), (7), and (12), 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), (7), and (12). If the district or intermediate

 

district does not comply with subsections (4), (5), (6), (7), and

 

(12) 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) By November 1 of each year, if a district or intermediate

 

district offers virtual learning under section 21f, or for a school

 

of excellence that is a cyber school, as defined in section 551 of

 

the revised school code, MCL 380.551, 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

 

and virtual learning model. The report shall must include

 

information concerning the operation of virtual learning for the

 

immediately preceding school fiscal year, including information

 

concerning summer programming. Information must be collected in a

 

form and manner determined by the department and must be collected

 

in the most efficient manner possible to reduce the administrative

 

burden on reporting entities.

 

     (13) By March 31 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 and 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.

 

     (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.

 

     (16) Beginning October 1, 2018, and annually thereafter, the

 

department shall submit to the senate and house subcommittees on

 

school aid and to the senate and house standing committees on

 

education an itemized list of allocations under this article to any

 

association or consortium consisting of associations in the

 

immediately preceding fiscal year. The report shall detail the

 

recipient or recipients, the amount allocated, and the purpose for

 

which the funds were distributed.

 

     Sec. 20. (1) For 2018-2019, 2019-2020, both of the following

 

apply:

 

     (a) The basic target foundation allowance, formerly known as

 

the basic foundation allowance, is $8,409.00.$8,544.00.

 

     (b) The minimum foundation allowance is $7,871.00.$8,141.00.

 

     (2) The department shall calculate the amount of each

 

district's foundation allowance shall be calculated as provided in

 

this section, using a basic target foundation allowance in the

 

amount specified in subsection (1). For the purpose of these

 

calculations, a reference to the target foundation allowance for a

 

preceding fiscal year is equivalent to a reference to the "basic"

 

foundation allowance for that fiscal year.


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

 

department shall calculate 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, 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 target foundation allowance for the

 

immediately preceding state fiscal year, the district shall receive

 

receives 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

 

target foundation allowance and [(the difference between the basic

 

target foundation allowance for the current state fiscal year and

 

basic target foundation allowance for the immediately preceding

 

state fiscal year minus $40.00) 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 target 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 target


foundation allowance for the immediately preceding state fiscal

 

year shall must not exceed the basic target foundation allowance

 

for the current state fiscal year.

 

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

 

district that in the immediately preceding state fiscal year had a

 

foundation allowance in an amount equal to the amount of the basic

 

target foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive receives a foundation

 

allowance for 2018-2019 2019-2020 in an amount equal to the basic

 

target foundation allowance for 2018-2019.2019-2020.

 

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

 

immediately preceding state fiscal year that was greater than the

 

basic target 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 target 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

 

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.

 

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

 

a whole dollar amount, the department shall round the district's


foundation allowance shall be rounded up to the nearest whole

 

dollar.

 

     (e) For a district that received a foundation allowance

 

supplemental payment calculated under section 20m and paid under

 

section 22b for 2017-2018, the district's 2017-2018 foundation

 

allowance is considered to have been an amount equal to the sum of

 

the district's actual 2017-2018 foundation allowance as otherwise

 

calculated under this section plus the lesser of the per pupil

 

amount of the district's supplemental payment for 2017-2018 as

 

calculated under section 20m 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.

 

     (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 target 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 department shall calculate 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 is 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 is 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 is 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. 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, for 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 is not 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 must 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 must not exceed the amount per membership pupil

 

otherwise calculated under this subsection.

 

     (7) 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) 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 is 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) Each The department shall round each fraction used in

 

making calculations under this section shall be rounded to the

 

fourth decimal place and shall round the dollar amount of an

 

increase in the basic target foundation allowance shall be rounded

 

to the nearest whole dollar.

 

     (10) State payments related to payment of the foundation

 

allowance for a special education pupil are not calculated under

 

this section but are instead calculated under section 51a.

 

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

 

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 must

 

calculate a pupil membership factor, a revenue adjustment factor,

 

and an index as follows:

 

     (a) The pupil membership factor shall be is 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 is 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 is 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) Payments to districts and public school academies shall

 

not be are not made under this section. Rather, the calculations

 

under this section shall be are used to determine the amount of

 

state payments under section 22b.

 

     (13) 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.

 

     (14) For the purposes of section 1211 of the revised school

 

code, MCL 380.1211, the basic foundation allowance under this

 

section is considered to be the target foundation allowance under

 

this section.

 

     (15) (14) 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 target foundation allowance for

 

the current state fiscal year and the basic target foundation

 

allowance for the immediately preceding state fiscal year and [(the

 

amount of the difference between the basic target foundation

 

allowance for the current state fiscal year and the basic target

 

foundation allowance for the immediately preceding state fiscal

 

year minus $40.00) 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 target 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 2018-2019, 2019-2020, the maximum public

 

school academy allocation is $7,871.00.$8,141.00.

 

     (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) "Target foundation allowance for the immediately preceding

 

fiscal year" means, for 2019-2020 only, the basic foundation

 

allowance in effect for the 2018-2019 fiscal year.

 

     (r) (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 125.2670,

 

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

 

125.2871 to 125.2899.

 

     (s) (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 2018-2019, 2019-2020, 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 under this act in 1993-94 shall exclude excludes

 

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 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 agreeing to an adjustment under this

 

subdivision, shall be made, the department shall calculate 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 2018-2019

 

2019-2020 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 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. 21h. (1) From the appropriation in section 11, there is

 

allocated $7,000,000.00 for 2018-2019 2019-2020 for assisting


districts assigned by the superintendent to participate in a

 

partnership to improve student achievement. The purpose of the

 

partnership is to identify district needs, develop intervention

 

plans, and partner with public, private, and nonprofit

 

organizations to coordinate resources and improve student

 

achievement. Assignment of a district to a partnership is at the

 

sole discretion of the superintendent.

 

     (2) A district assigned to a partnership by the superintendent

 

is eligible for funding under this section if the district includes

 

at least 1 school that has been rated with a grade of "F", or

 

comparable performance rating, in the most recent state

 

accountability system rating , that is not under the supervision of

 

the state school reform/redesign office, and that does all of the

 

following:

 

     (a) Completes a comprehensive needs evaluation in

 

collaboration with an intermediate school district, community

 

members, education organizations, and postsecondary institutions,

 

as applicable and approved by the superintendent, within 90 days of

 

assignment to the partnership described in this section. The

 

comprehensive needs evaluation shall must include at least all of

 

the following:

 

     (i) A review of the district's implementation and utilization

 

of a multi-tiered system of supports to ensure that it is used to

 

appropriately inform instruction.

 

     (ii) A review of the district and school building leadership

 

and educator capacity to substantially improve student outcomes.

 

     (iii) A review of classroom, instructional, and operational


practices and curriculum to ensure alignment with research-based

 

instructional practices and state curriculum standards.

 

     (b) Develops an intervention plan that has been approved by

 

the superintendent and that addresses the needs identified in the

 

comprehensive needs evaluation completed under subdivision (a). The

 

intervention plan shall must include at least all of the following:

 

     (i) Specific actions that will be taken by the district and

 

each of its partners to improve student achievement.

 

     (ii) Specific measurable benchmarks that will be met within 18

 

months to improve student achievement and identification of

 

expected student achievement outcomes to be attained within 3 years

 

after assignment to the partnership.

 

     (c) Crafts academic goals that put pupils on track to meet or

 

exceed grade level proficiency.

 

     (3) Upon approval of the intervention plan developed under

 

subsection (2), the department shall assign a team of individuals

 

with expertise in comprehensive school and district reform to

 

partner with the district, the intermediate district, community

 

organizations, education organizations, and postsecondary

 

institutions identified in the intervention plan to review the

 

district's use of existing financial resources to ensure that those

 

resources are being used as efficiently and effectively as possible

 

to improve student academic achievement. The superintendent of

 

public instruction may waive burdensome administrative rules for a

 

partnership district for the duration of the partnership agreement.

 

     (4) Funds allocated under this section may be used to pay for

 

district expenditures approved by the superintendent to improve


student achievement. Funds may be used for professional development

 

for teachers or district or school leadership, increased

 

instructional time, teacher mentors, or other expenditures that

 

directly impact student achievement and cannot be paid from

 

existing district financial resources. An eligible district shall

 

not receive funds under this section for more than 3 years.

 

Notwithstanding section 17b, the department shall make payments to

 

eligible districts under this section shall be paid on a schedule

 

determined by the department.

 

     (5) The department shall annually report in person to the

 

legislature on the activities funded under this section and how

 

those activities impacted student achievement in eligible districts

 

that received funds under this section. To the extent possible,

 

participating districts receiving funding under this section shall

 

participate in the report.

 

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

 

allocated an amount not to exceed $5,176,000,000.00 for 2017-2018

 

$5,049,000,000.00 for 2018-2019 and there is allocated an amount

 

not to exceed $5,107,000,000.00 for 2018-2019 $4,953,000,000.00 for

 

2019-2020 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 department

 

shall calculate 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 department shall

 

reduce 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

 

is offset by the increase in funding under section 22b(2).

 

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

 

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

 

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

 

plus the amount calculated under this subdivision. The amount

 

calculated under this subdivision shall must 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 is 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 is not 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 is 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 is 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 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, principal residence, 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.

 

     (g) (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.

 

     (h) (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.

 

     (i) "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.


     (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,

 

125.2670, 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, principal residence,

 

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,

 

principal residence, 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 for 2017-2018

 

2018-2019 an amount not to exceed $3,957,000,000.00

 

$4,223,000,000.00 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 2018-2019


2019-2020 an amount not to exceed $4,252,000,000.00

 

$4,530,000,000.00 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 is 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 is

 

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 must 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.

 

     (f) For a district or public school academy that has entered

 

into a partnership agreement with the department, offers

 

kindergarten, comply with section 22p.104(4).

 

     (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 must

 

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

 

is 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

 

has 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 is 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 1396w-5.

 

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

 

not to exceed $6,000,000.00 $7,000,000.00 is allocated for 2018-

 

2019 2019-2020 for supplemental payments to rural districts under

 

this section.

 

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

 

allocated for 2018-2019 2019-2020 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 is determined under a

 

spending plan developed as provided in this subsection and approved

 

by the superintendent of public instruction. The spending plan

 

shall must 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 must 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 2018-2019 2019-2020 an

 

amount not to exceed $5,042,700.00 $6,042,700.00 for payments under

 

this subsection to districts that have 7.7 9.7 or fewer pupils per

 

square mile as determined by the department.

 

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

 

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. 22m. (1) From the appropriations in section 11, there is

 

allocated for 2018-2019 2019-2020 an amount not to exceed

 

$2,200,000.00 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(6).

 

     (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 participating regional data hub within the network,

 

based upon a competitive grant process. Entities The center shall

 

ensure that the entities receiving funding under this section shall

 

represent geographically diverse areas in this state.

 

     (5) Notwithstanding section 17b, the department shall make

 

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 must 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 in a data hub region in the Michigan data

 

hub network under this section is voluntary and is not required.


     (8) Entities receiving funding under this section shall use

 

the funds for all of the following:

 

     (a) Creating an infrastructure that effectively manages the

 

movement of data between data systems used by intermediate

 

districts, districts, and other educational organizations in

 

Michigan based on common data standards to improve student

 

achievement.

 

     (b) Utilizing the infrastructure to put in place commonly

 

needed integrations, reducing cost and effort to do that work while

 

increasing data accuracy and usability.

 

     (c) Promoting the use of a more common set of applications by

 

promoting systems that integrate with the Michigan data hub

 

network.

 

     (d) Promoting 100% district adoption of the Michigan data hub

 

network by September 30, 2020.

 

     (e) Ensuring local control of data, data security, and student

 

data privacy.

 

     (f) Utilizing the infrastructure to promote the actionable use

 

of data through common reports and dashboards that are consistent

 

statewide.

 

     (g) Creating a governance model to facilitate sustainable

 

operations of the infrastructure in the future, including

 

administration, legal agreements, documentation, staffing, hosting,

 

and funding.

 

     (h) Evaluating future data initiatives at all levels to

 

determine whether the initiatives can be enhanced by using the

 

standardized environment in the Michigan data hub network.


     (9) Not later than January 1 of each fiscal year, the center

 

shall prepare a summary report of information provided by each

 

entity that received funds under this section that includes

 

measurable outcomes based on the objectives described under this

 

section . The report shall include and a summary of compiled data

 

from each entity to provide a means to evaluate the effectiveness

 

of the project. The center shall submit the report to the house and

 

senate appropriations subcommittees on state school aid and to the

 

house and senate fiscal agencies.

 

     Sec. 22p. In order to receive funding under section 22b, a

 

district or public school academy that has a signed partnership

 

agreement with the department must meet both of the following:

 

     (a) Amends the partnership agreement to include measurable

 

academic outcomes that will be achieved after 18 months and after

 

36 months from the date the agreement was originally signed.

 

Measurable academic outcomes under this subdivision must include

 

outcomes that put pupils on track to meet or exceed grade level

 

proficiency.

 

     (b) Amends the partnership agreement to include accountability

 

measures to be imposed if the district or public school academy

 

does not achieve the measurable academic outcomes under subdivision

 

(a) for a school subject to a partnership agreement. Accountability

 

measures under this subdivision may include either the closure of

 

the school at the end of the current school year or the

 

reconstitution of the school in a final attempt to improve student

 

educational performance or to avoid interruption of the educational

 

process. For a public school academy that amends a partnership


agreement under this subdivision, the amended agreement must

 

include a requirement that if reconstitution is imposed on a school

 

that is operated by the public school academy and that is subject

 

to the partnership agreement, the school shall must be

 

reconstituted as described in section 507 of the revised school

 

code, MCL 380.507. For a district that amends a partnership

 

agreement under this subdivision, the amended agreement must

 

include a requirement that if reconstitution is imposed on a school

 

that is operated by the district and that is subject to the

 

partnership agreement, all of the following apply:

 

     (i) The district shall make significant changes to the

 

instructional and noninstructional programming of the school based

 

on the needs identified through a comprehensive review of data.

 

     (ii) The district shall replace at least 25% of the faculty

 

and staff of the school.

 

     (ii) (iii) The district shall replace the principal of the

 

school, unless the current principal has been in place for less

 

than 3 years and the board of the district determines that it is in

 

the best interests of the district to retain current school

 

leadership.

 

     (iii) (iv) The reconstitution plan for the school shall

 

require the adoption of goals similar to the goals included in a

 

partnership agreement, with a limit of 5 years to achieve the

 

goals. If the goals are not achieved within 5 years, the

 

superintendent of public instruction shall either impose a second

 

reconstitution plan on the school or close the school.

 

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


allocated each fiscal year for 2017-2018 and for 2018-2019 for

 

2019-2020 an amount not to exceed $7,150,000.00 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 is calculated as

 

prescribed under subsection (2).

 

     (2) The department shall allocate 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 is

 

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 is 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 are not funded under this section.

 

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

 

allocated an amount not to exceed $1,355,700.00 for 2018-2019 2019-

 

2020 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 The amount of the

 

payment to each intermediate district shall receive is 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 must 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. 25e. (1) The pupil membership transfer application and

 

pupil transfer process administered by the center under this

 

section shall be is used for processing pupil transfers.

 

     (2) If a pupil counted in membership for the pupil membership

 

count day transfers from a district or intermediate district to

 

enroll in another district or intermediate district after the pupil

 

membership count day and before the supplemental count day and, due

 

to the pupil's enrollment and attendance status as of the pupil

 

membership count day, the pupil was not counted in membership in

 

the educating district or intermediate district, the educating

 

district or intermediate district may report the enrollment and

 

attendance information to the center through the pupil transfer

 

process within 30 days after the transfer or within 30 days after


the pupil membership count certification date, whichever is later.

 

Pupil transfers may be submitted no earlier than the first day

 

after the certification deadline for the pupil membership count day

 

and before the supplemental count day. Upon receipt of the transfer

 

information under this subsection indicating that a pupil has

 

enrolled and is in attendance in an educating district or

 

intermediate district as described in this subsection, the pupil

 

transfer process center shall do the following:

 

     (a) Notify the district in which the pupil was previously

 

enrolled.

 

     (b) Notify both the pupil auditing staff of the intermediate

 

district in which the educating district is located and the pupil

 

auditing staff of the intermediate district in which the district

 

that previously enrolled the pupil is located. The pupil auditing

 

staff shall investigate a representative sample based on required

 

audit sample sizes in the pupil auditing manual and may deny the

 

pupil membership transfer.

 

     (c) Aggregate the districtwide changes and notify the

 

department for use in adjusting the state aid payment system.

 

     (3) The department shall do all of the following:

 

     (a) Adjust the membership calculation for each district or

 

intermediate district in which the pupil was previously counted in

 

membership or that previously received an adjustment in its

 

membership calculation under this section due to a change in the

 

pupil's enrollment and attendance so that the district's or

 

intermediate district's membership is prorated to allow the

 

district or intermediate district to receive for each school day,


as determined by the financial calendar furnished by the center, in

 

which the pupil was enrolled and in attendance in the district or

 

intermediate district an amount equal to 1/105 of a full-time

 

equated membership claimed in the fall pupil membership count. The

 

department shall pay the district or intermediate district shall

 

receive a prorated foundation allowance in an amount equal to the

 

product of the adjustment under this subdivision for the district

 

or intermediate district multiplied by the foundation allowance or

 

per-pupil payment as calculated under section 20 for the district

 

or intermediate district. The foundation allowance or per-pupil

 

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

 

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

 

     (b) Adjust the membership calculation for the educating

 

district or intermediate district in which the pupil is enrolled

 

and is in attendance so that the district's or intermediate

 

district's membership is increased to allow the district or

 

intermediate district to receive an amount equal to the difference

 

between the full-time equated membership claimed in the fall pupil

 

membership count and the sum of the adjustments calculated under

 

subdivision (a) for each district or intermediate district in which

 

the pupil was previously enrolled and in attendance. The department

 

shall pay the educating district or intermediate district shall

 

receive a prorated foundation allowance in an amount equal to the

 

product of the adjustment under this subdivision for the educating

 

district or intermediate district multiplied by the per-pupil

 

payment as calculated under section 20 for the educating district

 

or intermediate district. The foundation allowance or per-pupil


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

 

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

 

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

 

under subsection (3) shall take effect as of the date that the

 

pupil becomes enrolled and in attendance in the educating district

 

or intermediate district, and the department shall base all

 

subsequent payments under this article for the fiscal year to the

 

affected districts or intermediate districts on this recalculation

 

of state school aid.

 

     (5) If a pupil enrolls in an educating district or

 

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

 

or intermediate district in which the pupil is counted in

 

membership or another educating district or intermediate district

 

that received an adjustment in its membership calculation under

 

subsection (3), if any, and the educating district or intermediate

 

district shall provide to the center and the department all

 

information they require to comply with this section.

 

     (6) The portion of the full-time equated pupil membership for

 

which a pupil is enrolled in 1 or more online courses under section

 

21f that is representative of the amount that the primary district

 

paid in course costs to the course provider shall not be is not

 

counted or transferred under the pupil transfer process under this

 

section.

 

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

 

determine the number of pupils who did not reside in this state as

 

of the 2018-2019 pupil membership count day but who newly enrolled

 

in a district or intermediate district after that pupil membership


count day and before the 2018-2019 supplemental count day. It is

 

the intent of the legislature that the center further determine the

 

number of pupils who were counted in membership for the 2018-2019

 

pupil membership count day but who left this state before the 2018-

 

2019 supplemental count day. In 2019-2020, the The center annually

 

shall provide a report to the senate and house appropriations

 

subcommittees on state school aid, and to the senate and house

 

fiscal agencies, detailing the number of pupils transferring in

 

from outside the public school system of this state and the number

 

of pupils transferring out of the public school system in this

 

state between the pupil membership count day and supplemental count

 

day as described in this subsection.

 

     (8) As used in this section:

 

     (a) "Educating district or intermediate district" means the

 

district or intermediate district in which a pupil enrolls after

 

the pupil membership count day or after an adjustment was made in

 

another district's or intermediate district's membership

 

calculation under this section due to the pupil's enrollment and

 

attendance.

 

     (b) "Pupil" means that term as defined under section 6 and

 

also children receiving early childhood special education programs

 

and services.

 

     Sec. 25f. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $1,600,000.00 each fiscal year for 2017-2018 and for 2018-

 

2019 for 2019-2020 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 shall first be distributed as the lesser of the

 

strict discipline academy's added cost or the department's approved

 

per-pupil allocation for the strict discipline academy. Any funds

 

remaining after the first distribution shall be distributed by

 

prorating on an equal per-pupil membership basis, not to exceed a

 

strict discipline academy's added cost. 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 The department shall make 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 2018-2019 2019-2020 for the purposes of this

 

section. If Except as otherwise provided in 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 must not be based on more than 1.0 FTE


for that pupil, and that portion of the FTE that exceeds 1.0 shall

 

be is 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 are not funded under this section.

 

     (3) If the funds allocated under this section are insufficient

 

to fully fund the adjustments under subsection (1), the department

 

shall prorate payments under this section shall be prorated on an

 

equal per-pupil basis.

 

     (4) Payments The department shall make 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 $15,000,000.00 for 2017-2018

 

$13,800,000.00 for 2018-2019 and there is allocated an amount not

 

to exceed $15,000,000.00 for 2018-2019 $15,300,000.00 for 2019-2020

 

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 2017 and 2018 and 2019, as

 

applicable. The department shall pay 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 2018-2019 2019-2020 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 under

 

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 are 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 $1,600,000.00 for 2017-2018

 

$3,400,000.00 for 2018-2019 and there is allocated an amount not to

 

exceed $3,000,000.00 for 2018-2019 $8,400,000.00 for 2019-2020 to

 

the promise zone fund created in subsection (3). The funds

 

allocated under this section reflect the amount of revenue from the

 

collection of the state education tax captured under section 17(2)

 

17 of the Michigan promise zone authority act, 2008 PA 549, MCL

 

390.1677.

 

     (2) Funds allocated to the promise zone fund under this

 

section shall must be used solely for payments to eligible

 

districts and intermediate districts, in accordance with section

 

17(3) 17 of the Michigan promise zone authority act, 2008 PA 549,

 

MCL 390.1677, 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. Eligible districts

 

and intermediate districts shall use payments made under this


section for reimbursement for qualified educational expenses as

 

defined in section 3 of the Michigan promise zone authority act,

 

2008 PA 549, MCL 390.1663.

 

     (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 remains in the promise zone fund and shall does

 

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 under 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, the department shall make

 

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 2018-2019 2019-

 

2020 an amount not to exceed $528,207,300.00 $531,207,300.00 for

 

payments to eligible districts and eligible public school academies


for the purposes of ensuring that pupils are proficient in English

 

language arts by the end of grade 3, 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).

 

     (2) For a district that has combined state and local revenue

 

per membership pupil under sections 20 and 20m section 20 that is

 

greater than the basic target foundation allowance under section 20

 

for the current fiscal year, the allocation under this section

 

shall be is an amount equal to 30% of the allocation for which it

 

would otherwise be eligible under this section before any proration

 

under subsection (14).

 

     (3) For a district or public school academy to be eligible to

 

receive funding under this section, other than funding under

 

subsection (7) or (8), the district or public school academy, for

 

grades K to 12, shall comply with the requirements under section

 

1280f of the revised school code, MCL 380.1280f, and shall use

 

resources to address early literacy and numeracy, and for at least

 

grades K to 12 or, if the district or public school academy does

 

not operate all of grades K to 12, for all of the grades it

 

operates, must implement a multi-tiered system of supports that is

 

an evidence-based framework 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. The multi-tiered system of supports described in

 

this subsection must provide at least all of the following

 

essential components:


     (a) Team-based leadership.

 

     (b) A tiered delivery system.

 

     (c) Selection and implementation of instruction,

 

interventions, and supports.

 

     (d) A comprehensive screening and assessment system.

 

     (e) Continuous data-based decision making.

 

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

 

allocated for 2019-2020 an amount not to exceed $508,000,000.00 to

 

continue a weighted foundation per-pupil payment for districts and

 

public school academies enrolling economically disadvantaged

 

pupils. Except as otherwise provided in this subsection, an

 

eligible district or eligible public school academy shall receive

 

under this section for each membership pupil in the district or

 

public school academy who is determined to be economically

 

disadvantaged, as reported to the center in the form and manner

 

prescribed by the center not later than the fifth Wednesday after

 

the pupil membership count day of the immediately preceding fiscal

 

year, the department shall pay under this section to each eligible

 

district or eligible public school academy an amount per pupil

 

equal to 11.5% of the statewide weighted average foundation

 

allowance. However, for a public school academy that began

 

operations as a public school academy after the pupil membership

 

count day of the immediately preceding school year, shall receive

 

the department shall pay under this section for each membership

 

pupil in the public school academy , who is determined to be

 

economically disadvantaged, as reported to the 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, an amount per pupil equal to 11.5% of the statewide

 

weighted average foundation allowance.

 

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

 

or public school academy receiving funding under this section shall

 

use that money only to provide instructional programs and direct

 

noninstructional services, including, but not limited to, medical,

 

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

 

school health clinics; and for the purposes of subsection (6), (7),

 

or (8). 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 were determined to be

 

economically disadvantaged in the immediately preceding state

 

fiscal year, as determined and reported as described in subsection

 

(4), may use not more than 20% of the funds it receives under this

 

section for school security that aligns to the needs assessment and

 

the multi-tiered system of supports model. A district or public

 

school academy 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. Funds

 

spent on school security under this subsection must be counted

 

toward required spending under subsection (16)(c). In addition, a

 

district or public school academy shall use funds under this

 

subsection to show progress toward meeting the following goals:

 

     (a) Providing at least 1 tutor per every 100 economically

 

disadvantaged pupils enrolled in the district or public school


academy.

 

     (b) Providing at least 1 pupil support position, which may

 

include behavior specialists, reading support experts, and

 

counselors, per every 125 economically disadvantaged pupils

 

enrolled in the district or public school academy.

 

     (c) Providing at least 1 summer school teaching position per

 

every 120 economically disadvantaged pupils enrolled in the

 

district or public school academy.

 

     (d) Expanding professional development opportunities for

 

teachers.

 

     (e) Providing additional supports for students on the

 

completion of the free application for federal student financial

 

aid (FAFSA).

 

     (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,

 

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

 

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

 

academy receives funds under this section, necessary to pay for

 

costs associated with the operation of the school breakfast

 

program.

 

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

 

allocated for 2018-2019 2019-2020 an amount not to exceed

 

$6,057,300.00 to support primary health care services provided to

 

children and adolescents up to age 21. These funds shall must be

 

expended in a form and manner determined jointly by the department

 

and the department of health and human services. 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 must be used that fiscal year to avoid or

 

minimize any proration that would otherwise be required under

 

subsection (14) for that fiscal year.

 

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

 

allocated for 2018-2019 2019-2020 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 must be as required under R 325.13091 to R

 

325.13096 and R 325.3271 to R 325.3276 of the Michigan

 

Administrative Code. Funds shall must be awarded in a form and

 

manner approved jointly by the department and the department of

 

health and human services. Notwithstanding section 17b, the

 

department shall make payments to eligible entities under this

 

subsection shall be paid on a schedule determined by the

 

department.

 

     (9) Each district or public school academy receiving funds

 

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

 

each fiscal year a report, 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 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. If a district or public school academy does not comply

 

with this subsection, the department shall withhold an amount equal

 

to the August payment due under this section until the district or

 

public school academy complies with this subsection. If the

 

district or public school academy does not comply with this

 

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

 

shall be are forfeited to the school aid fund.

 

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

 

or public school academy shall allow access for the department or

 

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

 

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

 

school academy shall reimburse the state for all disallowances

 

found in the audit.

 

     (11) Subject to subsections (6), (7), and (8), for schools in

 

which more than 40% of pupils are identified as at-risk, a district

 

or public school academy may use the funds it receives under this

 

section to implement tier 1, evidence-based practices in schoolwide

 

reforms that are guided by the district's comprehensive needs

 

assessment and are included in the district improvement plan.

 

Schoolwide reforms must include parent and community supports,

 

activities, and services, that may include the pathways to


potential program created by the department of health and human

 

services or the communities in schools program. As used in this

 

subsection, "tier 1, evidence-based practices" means research-based

 

instruction and classroom interventions that are available to all

 

learners and effectively meet the needs of most pupils.

 

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

 

under this section may use up to 5% 10% of those funds to provide

 

research-based professional development and to implement a coaching

 

model that supports the multi-tiered system of supports framework.

 

Professional development may be provided to district and school

 

leadership and teachers and must be aligned to professional

 

learning standards; integrated into district, school building, and

 

classroom practices; and solely related to the following:

 

     (a) Implementing the multi-tiered system of supports required

 

in subsection (3) with fidelity and utilizing the data from that

 

system to inform curriculum and instruction.

 

     (b) Implementing section 1280f of the revised school code, MCL

 

380.1280f, as required under subsection (3), with fidelity.

 

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

 

under this section may use funds received under this section to

 

support instructional or behavioral coaches. Funds used for this

 

purpose are not subject to the cap under subsection (12).

 

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

 

section 296, the department shall prorate payments under this

 

section, except payments under subsection (7), (8), or (17), by

 

reducing the amount of the allocation as otherwise calculated under

 

this section by an equal percentage per district.


     (15) 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 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.

 

     (16) Beginning in 2019-2020, if a district or public school

 

academy 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, or have

 

achieved at least 1 year's growth in English language arts during

 

grade 3 as measured by a local benchmark assessment for the

 

immediately preceding school year, demonstrate to the satisfaction

 

of the department that at least 50% of at-risk pupils are

 

proficient in mathematics by the end of grade 8 as measured by the

 

state assessment for the immediately preceding school year, or have

 

achieved at least 1 year's growth in mathematics during grade 8 as

 

measured by a local benchmark 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 or public school

 

academy shall ensure all of the following:

 

     (a) The district or public school academy shall determine the

 

proportion of at-risk pupils in grade 3 that represents the number

 

of at-risk pupils in grade 3 that are not proficient in English

 

language arts by the end of grade 3, or that did not achieve at

 

least 1 year's growth in English language arts during grade 3, and

 

the district or public school academy shall expend that same

 

proportion multiplied by 1/3 of its total at-risk funds under this

 

section on tutoring and other methods of improving grade 3 English

 

language arts proficiency or growth.

 

     (b) The district or public school academy shall determine the

 

proportion of at-risk pupils in grade 8 that represents the number

 

of at-risk pupils in grade 8 that are not proficient in mathematics

 

by the end of grade 8, or that did not achieve at least 1 year's

 

growth in mathematics during grade 8, and the district or public

 

school academy shall expend that same proportion multiplied by 1/3

 

of its total at-risk funds under this section on tutoring and other

 

methods of improving grade 8 mathematics proficiency or growth.

 

     (c) The district or public school academy shall determine the

 

proportion of at-risk pupils in grade 11 that represents the number

 

of at-risk 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 or public

 

school academy shall expend that same proportion multiplied by 1/3


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.

 

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

 

allocated for 2018-2019 2019-2020 an amount not to exceed

 

$18,000,000.00 $12,000,000.00 for payments to districts and public

 

school academies that otherwise received an allocation under this

 

section in subsection for 2018-2019 and that whose allocation was

 

less under this section for 2018-2019, excluding any payments under

 

subsection (7) or (8), would have been more than the district's or

 

public school academy's allocation under this section in 2017-2018.

 

for 2019-2020 as calculated under subsection (4) only and as

 

adjusted under subsection (14). The allocation for each district or

 

public school academy under this subsection is an amount equal to

 

its allocation under this section in 2017-2018 for 2018-2019 minus

 

its allocation as otherwise calculated under this section for 2018-

 

2019. subsection (4) for 2019-2020, as adjusted by subsection (14),

 

using in those calculations the 2017-2018 number of pupils

 

determined to be economically disadvantaged. However, if the

 

allocation as otherwise calculated under this subsection would have

 

been less than $0.00, the allocation under this subsection is

 

$0.00. If necessary, and before any proration required under

 

section 296, the department shall prorate payments under this

 

subsection by reducing the amount of the allocation as otherwise

 

calculated under this subsection by an equal percentage per

 

district or public school academy.

 

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


under this section may use funds received under this section to

 

provide an anti-bullying or crisis intervention program.

 

     (19) 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 proficient in

 

English language arts, based upon state assessments for pupils in

 

those grades.

 

     (20) In addition to the funds allocated under subsection (1),

 

from the state school aid fund appropriation under section 11 there

 

is allocated for 2019-2020 only an amount not to exceed

 

$35,000,000.00 for 1-time payments to districts and public school

 

academies for capital improvements in support of programming and

 

instruction for at-risk pupils. The department shall make payments

 

under this subsection to districts and public school academies in

 

the same proportion as the sum of the district's or public school

 

academy's payments under subsections (4) and (17) represents

 

compared to the total payments made under subsections (4) and (17).

 

Capital improvements under this subsection may include any type of

 

non-ongoing purchase or investment that can be used in support of

 

programming and instruction for at-risk pupils.

 

     (21) (20) As used in this section:

 

     (a) "At-risk pupil" means a pupil in grades K to 12 for whom

 

the district has documentation that the pupil meets any of the

 

following criteria:

 

     (i) The pupil is economically disadvantaged.

 

     (ii) The pupil is an English language learner.


     (iii) The pupil is chronically absent as defined by and

 

reported to the center.

 

     (iv) The pupil is a victim of child abuse or neglect.

 

     (v) The pupil is a pregnant teenager or teenage parent.

 

     (vi) The pupil has a family history of school failure,

 

incarceration, or substance abuse.

 

     (vii) The pupil is an immigrant who has immigrated within the

 

immediately preceding 3 years.

 

     (viii) 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.

 

     (ix) 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.

 

     (x) Is a pupil who is at risk of not meeting the district's or

 

public school academy's core academic curricular objectives in

 

English language arts or mathematics, as demonstrated on local

 

assessments.

 

     (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 1769j; 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, not to

 

exceed the target foundation allowance for the current fiscal year,

 

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 $750,000.00 for 2018-2019 2019-

 

2020 for grants to at-risk districts for implementing a 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 2018-2019 2019-2020 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 1769j.

 

     (b) The board of the district has adopted a resolution stating

 

that the district will implement for the first time a balanced

 

calendar instructional program that will begin in 2019-2020 2020-

 

2021 for at least 1 school operated by the district and committing

 

to providing the balanced calendar instructional 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, 2018. 2019. The department

 

shall select districts for grants and make notification not later

 

than February 1, 2019.2020.

 

     (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, 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 must not exceed $750,000.00.


     (6) A district shall use 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 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 balanced calendar

 

instructional calendar is implemented. The district shall commit to

 

providing the 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, the department shall make

 

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 $22,802,000.00 for 2017-2018 and

 

there is allocated an amount not to exceed $23,144,000.00 for 2018-

 

2019 2019-2020 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 are 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 department shall calculate 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, 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 must 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 2018-2019 2019-2020 all available federal funding,

 

estimated at $520,000,000.00 $533,000,000.00 for the national

 

school lunch program and all available federal funding, estimated

 

at $3,200,000.00 $4,200,000.00 for the emergency food assistance

 

program.

 

     (6) Notwithstanding section 17b, the department shall make

 

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, a district or other eligible entity shall give

 

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 $4,500,000.00 for 2018-2019 2019-

 

2020 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 are 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 department

 

shall determine 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, the department may make

 

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, a district shall give preference shall be given

 

to food that is grown or produced by Michigan businesses if it is

 

competitively priced and of comparable quality.

 

     Sec. 31j. (1) From the general fund money appropriated in

 

section 11, there is allocated an amount not to exceed $575,000.00

 

$2,000,000.00 for 2018-2019 2019-2020 for a pilot project program

 

to support districts and sponsors of child care centers in the

 

purchase of locally grown fruits and vegetables as described in

 

this section.

 

     (2) The department shall provide funding in an amount equal to

 

$125,000.00 per region to districts in prosperity regions 2, 4, 6,

 

and 9 for the pilot project described under this section. In

 

addition, the department shall provide funding in an amount equal

 

to $75,000.00 to districts in prosperity region 8 for the pilot

 

project described under this section. From the funding to districts

 

in subsection (1), funding Funding retained by prosperity regions

 

districts or the sponsors of child care centers that administer the

 

project shall program must not exceed 10%, and funding retained by

 

the department for administration shall must not exceed 6%. A

 

prosperity region district or the sponsor of a child care center

 

may enter into a memorandum of understanding with the department or

 

another prosperity region, district or sponsor of a child care

 

center, or both, to administer the project. program. If the

 

department administers the project program for a prosperity region,

 

district or the sponsor of a child care center, the department may


retain up to 10% of that prosperity region's district's or

 

sponsor's funding for administration or may distribute some or all

 

of that 10% to project partners as appropriate.

 

     (3) The department shall develop and implement a competitive

 

grant program for districts within the identified prosperity

 

regions and sponsors of child care centers to assist in paying for

 

the costs incurred by the district or the sponsor of the child care

 

center to purchase or increase purchases of whole or minimally

 

processed fruits, vegetables, and legumes grown in this state. The

 

maximum amount that may be drawn down on a grant to a district

 

shall be or the sponsor of a child care center is based on the

 

number of meals served by the school district during the previous

 

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

 

42 USC 1751 to 1769j or meals served by the sponsor of the child

 

care center in the previous school year. The department shall

 

collaborate with the Michigan department of agriculture and rural

 

development to provide training to newly participating schools and

 

child care centers and electronic information on Michigan

 

agriculture.

 

     (4) The goals of the pilot project program under this section

 

include improving daily nutrition and eating habits for children

 

through the school and child care settings while investing in

 

Michigan's agricultural and related food business economy.

 

     (5) A district or the sponsor of a child care center that

 

receives a grant under this section shall use those funds for the

 

costs incurred by the school district or the sponsor to purchase

 

whole or minimally processed fruits, vegetables, and legumes that


meet all of the following:

 

     (a) Are purchased on or after the date the district or the

 

sponsor received notification from the department of the amount to

 

be distributed to the district or the sponsor under this

 

subsection, including purchases made to launch meals in September

 

2018 2019 for the 2018-2019 2019-2020 fiscal year.

 

     (b) Are grown in this state and, if minimally processed, are

 

also processed in this state.

 

     (c) Are used for meals that are served as part of the United

 

States Department of Agriculture's child nutrition programs.

 

     (6) For Michigan-grown fruits, vegetables, and legumes that

 

satisfy the requirements of subsection (5), the department shall

 

make matching reimbursements shall be made in an amount not to

 

exceed 10 cents for every school or child care meal that is served

 

as part of the United States Department of Agriculture's child

 

nutrition programs and that uses Michigan-grown fruits, vegetables,

 

and legumes.

 

     (7) A district or the sponsor of a child care center that

 

receives a grant for reimbursement under this section shall use the

 

grant to purchase whole or minimally processed fruits, vegetables,

 

and legumes that are grown in this state and, if minimally

 

processed, are also processed in this state.

 

     (8) In awarding grants under this section, the department

 

shall work in conjunction with prosperity region offices, districts

 

and sponsors of child care centers, in consultation with Michigan-

 

based farm to school resource organizations, to develop scoring

 

criteria that assess an applicant's ability to procure Michigan-


grown products, prepare and menu Michigan-grown products, promote

 

and market Michigan-grown products, and submit letters of intent

 

from districts or the sponsors of child care centers on plans for

 

educational activities that promote the goals of the program.

 

     (9) The department shall give preference to districts or

 

sponsors of child care centers that propose educational activities

 

that meet 1 or more of the following: promote healthy food

 

activities; have clear educational objectives; involve parents or

 

the community; connect to a school's or child care center's farm-

 

to-school or farm-to-early-child-care procurement activities; and

 

market and promote the program, leading to increased pupil

 

knowledge and consumption of Michigan-grown products. Applications

 

The department shall give stronger weighting and consideration to

 

applications with robust marketing and promotional activities.

 

shall receive stronger weighting and consideration.

 

     (10) In awarding grants, the department shall also consider

 

all of the following: the

 

     (a) The percentage of children who qualify for free or reduced

 

price school meals under the Richard B. Russell national school

 

lunch act, 42 USC 1751 to 1769j.; the

 

     (b) The variety of school or child care center sizes and

 

geographic locations. within the identified prosperity regions; and

 

existing

 

     (c) Existing or future collaboration opportunities between

 

more than 1 district in a prosperity region.or child care center.

 

     (11) As a condition of receiving a grant under this section, a

 

district or the sponsor of a child care center shall provide or


direct its vendors to provide to prosperity region offices the

 

department copies of monthly receipts that show the quantity of

 

different Michigan-grown fruits, vegetables, and legumes purchased,

 

the amount of money spent on each of these products, the name and

 

Michigan location of the farm that grew the products, and the

 

methods or plans to market and promote the program. The district

 

shall or the sponsor of a child care center also shall provide to

 

the prosperity region department monthly lunch numbers and lunch

 

participation rates, and calendars or monthly menus noting when and

 

how Michigan-grown products were used in meals. The district or the

 

sponsor of the child care center and school or child care center

 

food service director or directors also shall agree to respond to

 

brief online surveys and to provide a report that shows the

 

percentage relationship of Michigan spending compared to total food

 

spending. Not later than March 1, 2019, 2020, each prosperity

 

region office, either on its own or in conjunction with another

 

prosperity region, district or each sponsor of a child care center,

 

shall submit a report to the department on expected outcomes and

 

related measurements for economic development and children's

 

nutrition and readiness to learn based on progress so far. The

 

report shall must include at least all of the following:

 

     (a) The extent to which farmers and related businesses,

 

including distributors and processors, see an increase in market

 

opportunities and income generation through sales of Michigan or

 

local products to districts and sponsors of child care centers. All

 

of the following apply for purposes of this subdivision:

 

     (i) The data used to determine the amount of this increase


shall be are the total dollar amount of Michigan or local fruits,

 

vegetables, and legumes purchased by schools and sponsors of child

 

care centers, along with the number of different types of products

 

purchased; school and child care center food purchasing trends

 

identified along with products that are of new and growing interest

 

among food service directors; the number of businesses impacted;

 

and the percentage of total food budget spent on Michigan-grown

 

fruits, vegetables, and legumes.

 

     (ii) The prosperity region office district or the sponsor of a

 

child care center shall use purchasing data collected for the

 

project program and surveys of school and child care food service

 

directors on the impact and success of the project program as the

 

source for the data described in subparagraph (i).

 

     (b) The ability to which pupils can access a variety of

 

healthy Michigan-grown foods through schools and child care centers

 

and increase their consumption of those foods. All of the following

 

apply for purposes of this subdivision:

 

     (i) The data used to determine whether this subparagraph is

 

met shall be are the number of pupils exposed to Michigan-grown

 

fruits, vegetables, and legumes at schools and child care centers;

 

the variety of products served; new items taste-tested or placed on

 

menus; and the increase in pupil willingness to try new local,

 

healthy foods.

 

     (ii) The prosperity region office district or the sponsor of a

 

child care center shall use purchasing data collected for the

 

project, meal count and enrollment numbers, school menu calendars,

 

and surveys of school and child care food service directors as the


source for the data described in subparagraph (i).

 

     (12) The department shall compile the reports provided by

 

prosperity region offices districts and sponsors of child care

 

centers under subsection (11) into 1 legislative report. The

 

department shall provide this report not later than April 1, 2019

 

2020 to the house and senate subcommittees responsible for school

 

aid, the house and senate fiscal agencies, and the state budget

 

director.

 

     (13) Notwithstanding section 17b, the department shall make

 

payments under this section on a schedule determined by the

 

department.

 

     Sec. 31n. (1) From the school mental health and support

 

services fund money appropriated in section 11, there is allocated

 

for 2018-2019 2019-2020 for the purposes of this section an amount

 

not to exceed $30,000,000.00 and from the general fund money

 

appropriated in section 11, there is allocated for 2018-2019 2019-

 

2020 for the purposes of this section an amount not to exceed

 

$1,300,000.00. Not later than February 15, 2019, the The department

 

and the department of health and human services shall establish

 

continue a program to distribute this funding to add licensed

 

behavioral health providers for general education pupils, and shall

 

continue to seek federal Medicaid match funding for all eligible

 

mental health and support services.

 

     (2) Not later than February 15, 2019, the The department and

 

the department of health and human services shall create maintain

 

an advisory council and for programs funded under this section. The

 

advisory council shall define goals for implementation of programs


funded under this section, and shall provide feedback on that

 

implementation. At a minimum, the advisory council shall include

 

consist of representatives of state associations representing

 

school health, school mental health, school counseling, education,

 

health care, and other organizations, representatives from the

 

department and the department of health and human services, and a

 

representative from the school safety task force created under

 

Executive Order No. 2018-5. The department and department of health

 

and human services, working with the advisory council, shall

 

determine an approach to increase capacity for mental health and

 

support services in schools for general education pupils, and shall

 

determine where that increase in capacity qualifies for federal

 

Medicaid match funding.

 

     (3) The advisory council shall develop a fiduciary agent

 

checklist for intermediate districts to facilitate development of a

 

plan to submit to the department and to the department of health

 

and human services. The department and department of health and

 

human services shall determine the requirements and format for

 

intermediate districts to submit a plan for possible funding under

 

subsection (5). Applications The department shall make applications

 

for funding for this program shall be made available to districts

 

and intermediate districts not later than March 1, 2019, December

 

1, 2019, and shall award the funding shall be awarded not later

 

than April 1, 2019.February 1, 2020.

 

     (4) Not later than January 1, 2019, the The department of

 

health and human services shall seek to amend the state Medicaid

 

plan or obtain appropriate Medicaid waivers as necessary for the


purpose of generating additional Medicaid match funding for school

 

mental health and support services for general education pupils. It

 

is the intent of the legislature The intent is that a successful

 

state plan amendment or other Medicaid match mechanisms will result

 

in additional federal Medicaid match funding for both the new

 

funding allocated under this section and for any expenses already

 

incurred by districts and intermediate districts for mental health

 

and support services for general education pupils.

 

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

 

allocated for 2019-2020 an amount not to exceed $5,000,000.00 to be

 

distributed to the existing network of child and adolescent health

 

centers to place a licensed master's level behavioral health

 

provider in schools that do not currently have services available

 

to general education students. Existing child and adolescent health

 

centers receiving funding under this subsection shall provide a

 

commitment to maintain services and implement all available federal

 

Medicaid match methodologies. The department of health and human

 

services shall use all existing or additional federal Medicaid

 

match opportunities to maximize funding allocated under this

 

subsection. Funds The department shall provide funds under this

 

subsection shall be provided to existing child and adolescent

 

health centers in the same proportion that funding under section

 

31a(7) is provided to child and adolescent health centers located

 

and operating in those districts.

 

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

 

allocated for 2019-2020 an amount not to exceed $16,500,000.00

 

$24,500,000.00 to be distributed to intermediate districts for the


provision of mental health and support services to general

 

education students. From the funds allocated under this subsection,

 

the department shall distribute $294,500.00 $437,500.00 to each

 

intermediate district that submits a plan approved by the

 

department and the department of health and human services. The

 

department and department of health and human services shall work

 

cooperatively in providing oversight and assistance to intermediate

 

districts during the plan submission process and shall monitor the

 

program upon implementation. An intermediate district shall use

 

funds awarded under this subsection to provide funding to its

 

constituent districts, including public school academies that are

 

considered to be constituent districts under section 705(7) of the

 

revised school code, MCL 380.705, for the provision of mental

 

health and support services to general education students. In

 

addition to the criteria identified under subsection (7), an

 

intermediate district shall consider geography, cost, or other

 

challenges when awarding funding to its constituent districts. If

 

funding awarded to an intermediate district remains after funds are

 

provided by the intermediate district to its constituent districts,

 

the intermediate district may hire or contract for experts to

 

provide mental health and support services to general education

 

students residing within the boundaries of the intermediate

 

district.

 

     (7) A district requesting funds under this section from the

 

intermediate district in which it is located shall submit an

 

application for funding for the provision of mental health and

 

support services to general education pupils. A district receiving


funding from the application process described in this subsection

 

shall provide services to nonpublic students upon request. An

 

intermediate district shall not discriminate against an application

 

submitted by a public school academy simply on the basis of the

 

applicant being a public school academy. Grant The department shall

 

approve grant applications shall be approved based on the following

 

criteria:

 

     (a) The district's commitment to maintain mental health and

 

support services delivered by licensed providers into future fiscal

 

years.

 

     (b) The district's commitment to implement all federal

 

Medicaid match methodologies and provide a local match of at least

 

20%.

 

     (c) The district's commitment to adhere to any local funding

 

requirements determined by the department and the department of

 

health and human services.

 

     (d) The extent of the district's existing partnerships with

 

community health care providers or the ability of the district to

 

establish such partnerships.

 

     (e) The district's documentation of need, including gaps in

 

current mental health and support services for the general

 

education population.

 

     (f) The district's submission of a formal plan of action

 

identifying the number of schools and students to be served.

 

     (g) Whether the district will participate in ongoing

 

trainings.

 

     (h) Whether the district will submit an annual report to the


state.

 

     (i) Whether the district demonstrates a willingness to work

 

with the state to establish program and service delivery

 

benchmarks.

 

     (j) Whether the district has developed a school safety plan or

 

is in the process of developing a school safety plan.

 

     (k) Any other requirements determined by the department or the

 

department of health and human services.

 

     (8) Funding under this section, including any federal Medicaid

 

funds that are generated, shall must not be used to supplant

 

existing services.

 

     (9) Both of the following are allocated for 2018-2019 2019-

 

2020 to the department of health and human services from the

 

general fund money allocated under subsection (1):

 

     (a) An amount not to exceed $1,000,000.00 for the purpose of

 

upgrading technology and systems infrastructure and other

 

administrative requirements to support the programs funded under

 

this section.

 

     (b) An amount not to exceed $300,000.00 for the purpose of

 

administering the programs under this section and working on

 

generating additional Medicaid funds as a result of programs funded

 

under this section.

 

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

 

allocated for 2018-2019 2019-2020 an amount not to exceed

 

$500,000.00 to intermediate districts on an equal per intermediate

 

district basis for the purpose of administering programs funded

 

under this section.


     (11) The department and the department of health and human

 

services shall work with the advisory council to develop proposed

 

measurements of outcomes and performance. Those measurements shall

 

include, at a minimum, the number of pupils served, the number of

 

schools served, and where those pupils and schools were located.

 

The department and the department of health and human services

 

shall compile data necessary to measure outcomes and performance,

 

and districts and intermediate districts receiving funding under

 

this section shall provide data requested by the department and

 

department of health and human services for the measurement of

 

outcomes and performance. The department and department of health

 

and human services shall provide a report not later than December

 

1, 2019 and by December 1 annually thereafter to the house and

 

senate appropriations subcommittees on school aid and health and

 

human services, and to the house and senate fiscal agencies. At a

 

minimum, the report shall must include measurements of outcomes and

 

performance, proposals to increase efficacy and usefulness,

 

proposals to increase performance, and proposals to expand

 

coverage.

 

     (12) From the funds allocated in subsection (1), there is

 

allocated for 2018-2019 an amount not to exceed $8,000,000.00 for

 

the behavioral health team pilot program. The department shall

 

award funds under this subsection to intermediate school districts

 

to create school-based behavioral health assessment teams utilizing

 

a "train the trainer" model of training that focuses on providing

 

age-appropriate interventions, identifying behaviors that suggest a

 

pupil may be struggling with mental health challenges, providing


treatment and support of the pupil, and using disciplinary

 

interventions and the criminal justice system as methods of last

 

resort. The intermediate district may hire or contract with experts

 

to provide training to intermediate district staff so that it may

 

provide similar training for staff of the constituent districts.

 

The department shall award the entire $8,000,000.00 allocated under

 

this subsection by allocating an equal dollar amount to each

 

intermediate district that has its application approved under

 

subsection (13).

 

     (13) An intermediate district shall apply for funds under

 

subsection (12) in a form and manner determined by the department.

 

The application shall include, but is not limited to, all of the

 

following:

 

     (a) A detailed plan on how the intermediate district will work

 

with constituent districts to identify a behavioral health

 

assessment team within each school to be trained under this pilot.

 

The plan shall demonstrate that a behavioral health assessment team

 

must consist of, but is not limited to, all of the following

 

individuals:

 

     (i) School administrators and teachers.

 

     (ii) An individual whose primary purpose is ensuring safety in

 

a school.

 

     (iii) Pathways to potential workers, if the school

 

participates in the pathways to potential program.

 

     (iv) Local mental health agency representatives.

 

     (v) Local law enforcement agency personnel.

 

     (vi) If appropriate under the model being used, a pupil.


     (b) Identification of a behavioral health assessment training

 

implementation plan that shall include a description of how results

 

of the training will be incorporated into administrative policies

 

and a comprehensive school safety plan, including into a multi-

 

tiered system of support.

 

     (14) The funds allocated under this section for 2018-2019 are

 

a work project appropriation, and any unexpended funds for 2018-

 

2019 are carried forward into 2019-2020. The purpose of the work

 

project is to continue to provide funding for the expansion of

 

mental health and support services for general education students.

 

The estimated completion date of the work project is September 30,

 

2022.

 

     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 $244,600,000.00 $249,600,000.00 for 2018-2019. Funds

 

2019-2020. An intermediate district or consortium shall use funds

 

allocated under this section for great start readiness programs

 

shall be used to provide part-day, school-day, or GSRP/Head Start

 

blended comprehensive free compensatory classroom programs designed

 

to 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 must 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 must meet those eligibility and


prioritization guidelines. A child who is not 4 years of age as of

 

September 1, but who will be 4 years of age not later than December

 

1, is eligible to participate if the child's parent or legal

 

guardian seeks a waiver from the September 1 eligibility date by

 

submitting a request for enrollment in a program to the responsible

 

intermediate district, if the program has capacity on or after

 

September 1 of the school year, and if the child meets eligibility

 

and prioritization guidelines.

 

     (2) From the funds allocated under subsection (1), an amount

 

not to exceed $242,600,000.00 $247,600,000.00 is 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 2018-2019 2019-

 

2020 for a competitive grant to continue a longitudinal evaluation

 

of children who have participated in great start readiness

 

programs. This evaluation must include a scientific analysis of the

 

relationship between the early childhood programs and performance

 

on the kindergarten readiness assessment funded under section 104.


The evaluation must include a control group and a determination of

 

the specific GSRP program in which the kindergarten students were

 

enrolled and attended in the previous school year and must analyze

 

Michigan kindergarten entry observation tool scores for students

 

taking the Michigan kindergarten entry observation tool in the

 

pilot year, year 1, and all years going forward.

 

     (4) To be eligible for funding under this section, a program

 

shall must prepare children for success in school through

 

comprehensive part-day, school-day, or GSRP/Head Start blended

 

programs that contain all of the following program components, as

 

determined by the department:

 

     (a) Participation in a collaborative recruitment and

 

enrollment process 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, at

 

least, 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 must

 

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% 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. guidelines. If the intermediate

 

district determines that all eligible children are being served and

 

that there are no children on the waiting list who live with

 

families with a household income that is equal to or less than 250%

 

of the federal poverty level, guidelines, 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. guidelines. The enrollment process shall must 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 are considered to live with families with

 

household income equal to or less than 250% of the federal poverty

 

level guidelines regardless of actual family income and shall be

 

are 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 consists 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 consists 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 must indicate the extent to which these funds

 

will supplement other federal, state, local, or private funds.

 

Funds An applicant shall not use 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 is 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 blended program, the grant recipient shall ensure that all

 

Head Start and GSRP policies and regulations are applied to the

 

blended slots, with adherence to the highest standard from either

 

program, to the extent allowable under federal law.

 

     (8) 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 are 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 guidelines 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, guidelines, 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 who live with families with a household income

 

that is equal to or less than 250% of the federal poverty level,

 

guidelines, the grant recipient may then enroll children who live