HOUSE BILL No. 4498
  
  
  
  April 20, 1999, Introduced by Rep. Jelinek and referred to the Committee on Appropriations.
  
  
  
  EXECUTIVE BUDGET BILL
  
  
  
        A bill to amend 1979 PA 94, entitled
  "The state school aid act of 1979,"
  by amending sections 3, 4, 6, 6b, 8, 8a, 11, 11g, 13, 14, 15, 17a, 17b, 18, 18a, 19, 20, 20b, 24, 25, 25a, 26a, 31a, 31c, 36, 36a, 37, 38, 39, 40, 41, 51a, 52, 53a, 54, 56, 57, 61a, 62, 63, 67, 68, 74, 81, 91b, 94, 99, 101, 102, 104a, 105, 107, 109,
  118, 124, 147, 151, 152, 158, 158b, 161a, 163, 165, 166b, 167, 168, 169, and 169a, (MCL 388.1603, 388.1604, 388.1606, 388.1606b, 388.1608, 388.1608a, 388.1611, 388.1611g, 388.1613, 388.1614, 388.1615, 388.1617a, 388.1617b, 388.1618, 388.1618a,
  388.1619, 388.1620, 388.1620b, 388.1624, 388.1625, 388.1625a, 388.1626a, 388.1631a, 388.1631c, 388.1636, 388.1636a, 388.1637, 388.1638, 388.1639, 388.1640, 388.1641, 388.1651a, 388.1652, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662,
  388.1663, 388.1667, 388.1668, 388.1674, 388.1681, 388.1691b, 388.1694, 388.1699, 388.1701, 388.1702, 388.1704a, 388.1705, 388.1707, 388.1709, 388.1718, 388.1724, 388.1747, 388.1751, 388.1752, 388.1758, 388.1758b, 388.1761a, 388.1763, 388.1765,
  388.1766b, 388.1767, 388.1768, 388.1769, and 388.1769a), sections 6, 11, 11g, 17b, 20, 20b, 26a, 31a, 51a, 63, 81, and 105 as amended by 1998 PA 553, and sections 25a and 161a as added by 1998 PA 553, and sections 8a, 24, 31c, 36, 36a, 41, 53a, 54,
  56, 57, 61a, 62, 68, 74, 94, 99, 101, 107, 147, and 166b as amended by 1998 PA 339, and section 165 as added by 1998 PA 339, and section 104a as amended by 1997 PA 176, and sections 8, 39 and 67 as amended by 1997 PA 142, and sections 3, 25, 52, 124,
  151, 167, and 169a as amended by 1997 PA 93, and section 6b as added by 1997 PA 24, and sections 13, 15, 17a, 18, 18a, 19, 37, 38, 102, and 163 as amended by 1996 PA 300, and section 169 as added by 1996 PA 300, and section 4 as amended by 1995 PA
  130, and sections 91b and 118 as added by 1995 PA 130, and section 109 as amended by 1994 PA 283, and section 158b as added by 1994 PA 283, and section 14 as amended by 1993 PA 336, and section 152 as amended by 1993 PA 175, and section 168 as added
  by 1993 PA 175, and section 40 as amended by 1991 PA 118, and section 158 as amended by 1990 PA 207, and by adding sections 105c and 166c; and to repeal acts and parts of acts.
  
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) "Average daily attendance", for the purposes of complying with federal law, means 92% of the membership as defined in section 6(4). (2) "Board" means the governing body of a district or public school academy. (3) "Cooperative education program" means a written voluntary agreement between and among districts to provide certain educational programs for pupils in certain groups of districts. The written agreement shall be approved by all affected districts at least annually and shall specify the educational programs to be provided and the estimated number of pupils from each district who will participate in the educational programs. (4) "Department" means the department of education. (5) "District" means a local school district established under the revised school code, a local act school district, or, except in sections 6(4), 6(6), 13, 20, 23, 31a, and 105, AND 166C, a public school academy. Except in sections 6(4), 6(6), 13, 20, and 105, district also includes a university school. (6) "District of residence", except as otherwise provided in this subsection, means the district in which a pupil's custodial parent or parents or legal guardian resides. For a pupil described in section 24b, the pupil's district of residence is the district in which the pupil enrolls under that section. For a pupil described in section 6(4)(d), the pupil's district of residence shall be considered to be the district or intermediate district in which the pupil is counted in membership under that section. For a pupil under court jurisdiction who is placed outside the district in which the pupil's custodial parent or parents or legal guardian resides, the pupil's district of residence shall be considered to be the educating district or educating intermediate district. (7) "District superintendent" means the superintendent of a district, the chief administrator of a public school academy, or the chief administrator of a university school. 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. (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 days of student instruction and prescribed clock hours shall be completed by each pupil not more than 365 calendar days after the pupil's first day of classes for the school year prescribed. The department SUPERINTENDENT shall prescribe pupil, personnel, and other reporting requirements for the educational program. (3) "Fiscal year" means the state fiscal year which commences October 1 and continues through September 30. (4) "General educational development testing preparation program" means a program that has high school level courses in writing skills, social studies, science, reading skills, and mathematics and that prepares a person to successfully complete the general educational development (GED) test. (5) "High school pupil" means a pupil in membership in grades 7 to 12, except in a district not maintaining grades above the eighth grade. Sec. 6. (1) "Center program" means a program operated by a district or intermediate district for special education pupils from several districts in programs for the autistically impaired, trainable mentally impaired, severely mentally impaired, severely multiply impaired, hearing impaired, physically and otherwise health impaired, and visually impaired. Programs for emotionally impaired pupils housed in buildings that do not serve regular education pupils also qualify. Unless otherwise approved by the department SUPERINTENDENT, a center program either shall serve all constituent districts within an intermediate district or shall serve several districts with less than 50% of the pupils residing in the operating district. In addition, special education center program pupils placed part-time in noncenter programs to comply with the least restrictive environment provisions of section 612 of part B of the individuals with disabilities education act, title VI of Public Law 91-230, 20 U.S.C. 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 pupil retention rate" means the proportion of pupils who have not dropped out of school in the immediately preceding school year and is equal to 1 minus the quotient of the number of pupils unaccounted for in the immediately preceding school year, as determined pursuant to subsection (3), divided by the pupils of the immediately preceding school year. (3) "District pupil retention report" means a report of the number of pupils, excluding migrant and adult, in the district for the immediately preceding school year, adjusted for those pupils who have transferred into the district, transferred out of the district, transferred to alternative programs, and have graduated, to determine the number of pupils who are unaccounted for. The number of pupils unaccounted for shall be calculated as determined by the department SUPERINTENDENT. (4) "Membership", except as otherwise provided in this act, means for a district, public school academy, university school, or intermediate district the sum of the product of .6 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 .4 times the final audited count from the supplemental count day for the immediately preceding school year, as determined by the department SUPERINTENDENT 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 state board SUPERINTENDENT, and as corrected by a subsequent department audit. BEGINNING IN THE 2000-01 SCHOOL YEAR, "MEMBERSHIP", EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, MEANS FOR A DISTRICT, PUBLIC SCHOOL ACADEMY, UNIVERSITY SCHOOL, OR INTERMEDIATE DISTRICT THE SUM OF THE PRODUCT OF .2 TIMES THE FINAL AUDITED COUNT FROM THE SUPPLEMENTAL COUNT DAY FOR THE IMMEDIATELY PRECEDING SCHOOL YEAR, AS DETERMINED BY THE SUPERINTENDENT 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, PLUS .1 TIMES THE NUMBER OF FULL-TIME EQUATED PUPILS IN GRADES K TO 12 ACTUALLY ENROLLED AND IN ATTENDANCE ON EACH OF EIGHT COUNT DAYS IN THE CURRENT SCHOOL YEAR, AS DEFINED IN SUBSECTION (7). 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, public school academy, university school, or intermediate district: (a) Except as otherwise provided in this subsection, a pupil shall be counted in membership in the pupil's educating district or districts. An individual pupil shall not be counted for more than a total of 1.0 full-time equated membership. (b) If a pupil is educated in a district other than the pupil's district of residence and the educating district is not in the same intermediate district as the pupil's district of residence, if the pupil is not being educated as part of a cooperative education program, if the pupil's district of residence does not give the educating district its approval to count the pupil in membership in the educating district, and if the pupil is not covered by an exception specified in subsection (6) to the requirement that the educating district must have the approval of the pupil's district of residence to count the pupil in membership, the pupil shall not be counted in membership in any district. (c) A special education pupil educated by the intermediate district OF RESIDENCE shall be counted in membership in the intermediate district. (d) A pupil placed by a court or state agency in an on-grounds program of a juvenile detention facility, a child caring institution, or a mental health institution, or a pupil funded under section 53a, shall be counted in membership in the district or intermediate district approved by the department SUPERINTENDENT to operate the program. (e) A pupil enrolled in the Michigan schools for the deaf and blind shall be counted in membership in the pupil's intermediate district of residence. (f) A pupil enrolled in a vocational education program supported by a millage levied over an area larger than a single district or in an area vocational-technical education program established pursuant to section 690 of the revised school code, MCL 380.690, shall be counted only in the pupil's district of residence. (g) A pupil enrolled in a university school shall be counted in membership in the university school. (h) A pupil enrolled in a public school academy shall be counted in membership in the public school academy. (i) For a new district, university school, 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 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 SUPERINTENDENT 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 state board SUPERINTENDENT, and as corrected by a subsequent department audit, plus the final audited count from the supplemental count day for the current school year, and dividing that sum by 2. (ii) If operations begin after the pupil membership count day for the fiscal year and not later than the supplemental count day for the fiscal year, membership is the final audited count of the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the supplemental count day for the current school year. (j) If a district is the authorizing body for a public school academy, then, in the first school year in which pupils are counted in membership on the pupil membership count day in the public school academy, the determination of the district's membership shall exclude from the district's pupil count for the immediately preceding supplemental count day any pupils who are counted in the public school academy on that first pupil membership count day who were also counted in the district on the immediately preceding supplemental count day. (k) In a district, public school academy, university school, or intermediate district operating an extended school year program approved by the state board SUPERINTENDENT, a pupil enrolled, but not scheduled to be in regular daily attendance on a pupil membership count day, shall be counted. (l) Pupils to be counted in membership shall be not less than 5 years of age on December 1 and less than 20 years of age on September 1 of the school year except a special education pupil who is enrolled and receiving instruction in a special education program approved by the department SUPERINTENDENT and not having a high school diploma who is less than 26 years of age as of September 1 of the current school year shall be counted in membership. (m) An individual who has obtained a high school diploma shall not be counted in membership. An individual who has obtained a general education development (G.E.D.) certificate shall not be counted in membership. An individual participating in a job training program funded under former section 107a or a jobs program funded under former section 107b, both administered by the Michigan jobs commission MICHIGAN STRATEGIC FUND OR THE DEPARTMENT OF CAREER DEVELOPMENT, or participating in any successor of either of those 2 programs, shall not be counted in membership. (n) If a pupil counted in membership in a public school academy is also educated by a district or intermediate district as part of a cooperative education program, the pupil shall be counted in membership only in the public school academy, and the instructional time scheduled for the pupil in the district or intermediate district shall be included in the full-time equated membership determination under subdivision (q). However, for pupils receiving instruction in both a public school academy 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 specified in subdivision (q), the public school academy shall receive as its prorated share of the full-time equated membership for each of those pupils an amount equal to 1 times the product of the hours of instruction the public school academy provides divided by the number of hours specified in subdivision (q) for full-time equivalency, and the remainder of the full-time membership for each of those pupils shall be allocated to the district or intermediate district providing the remainder of the hours of instruction. (ii) If the public school academy provides instruction for less than 1/2 of the class hours specified in subdivision (q), the district or intermediate district providing the remainder of the hours of instruction shall receive as its prorated share of the full-time equated membership for each of those pupils an amount equal to 1 times the product of the hours of instruction the district or intermediate district provides divided by the number of hours specified in subdivision (q) for full-time equivalency, and the remainder of the full-time membership for each of those pupils shall be allocated to the public school academy. (o) An individual less than 16 years of age as of September 1 of the current school year who is being educated in an alternative education program shall not be counted in membership if there are also adult education participants being educated in the same program or classroom. (p) The department SUPERINTENDENT shall give a uniform interpretation of full-time and part-time memberships. (q) The number of class hours used to calculate full-time equated memberships shall be consistent with section 1284 of the revised school code, MCL 380.1284. In determining full-time equated memberships for pupils who are enrolled in a postsecondary institution, a pupil shall not be considered to be less than a full-time equated pupil solely because of the effect of his or her postsecondary enrollment, including necessary travel time, on the number of class hours provided by the district to the pupil. (r) Full-time equated memberships for pupils in kindergarten shall be determined by dividing the number of 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. (s) For a district that has qualified currently migrant pupils enrolled in the district as of the pupil membership count day who were not counted in membership in the district on the supplemental count day for the immediately preceding school year, as determined by the department SUPERINTENDENT using the criteria used for eligibility for the migrant education program under the improving America's schools act of 1994, Public Law 103-382, 108 Stat.3518, the number of those pupils counted in the district's membership is 3/4 of the number of those pupils counted on the pupil membership count day only. (t) For a district, university school, or public school academy that has pupils enrolled in a grade level that was not offered by the district, university school, 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 SUPERINTENDENT. Membership shall be calculated by adding the number of pupils registered for attendance in that grade level on the pupil membership count day plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the state board 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. (u) 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. (v) 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, 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, the district may count the pupil in membership on a pro rata basis, with the proration based on the number of hours of instruction the district actually provides to the pupil divided by the number of hours specified in subdivision (q) for full-time equivalency. For the purposes of this subdivision, a district shall be considered to be providing appropriate instruction if all of the following are met: (i) The district provides at least 2 nonconsecutive hours of instruction per week to the pupil at the pupil's home under the supervision of a certificated teacher. (ii) The district provides instructional materials, resources, and supplies, except computers, that are comparable to those otherwise provided in the district's alternative education program. (iii) Course content is comparable to that in the district's alternative education program. (iv) Credit earned is awarded to the pupil and placed on the pupil's transcript. (w) A pupil enrolled in an alternative or disciplinary education program described in section 25 shall be counted in membership in the district or public school academy that expelled the pupil. (x) For 1997-98 only, if a pupil was IF A PUPIL IS 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, and if the pupil enrolls in a district within 45 days after the pupil membership count day, the department SUPERINTENDENT shall adjust the district's pupil count for the pupil membership count day to include the pupil in the count. (Y) FOR A PUBLIC SCHOOL ACADEMY IN OPERATION FOR AT LEAST TWO YEARS THAT SUSPENDED OPERATIONS FOR AT LEAST ONE SEMESTER AND IS RESUMING OPERATIONS, MEMBERSHIP IS THE SUM OF THE PRODUCT OF .6 TIMES THE NUMBER OF FULL-TIME EQUATED PUPILS IN GRADES K TO 12 ACTUALLY ENROLLED AND IN REGULAR DAILY ATTENDANCE ON THE COUNT DAY OR SUPPLEMENTAL COUNT DAY, WHICHEVER IS FIRST, AFTER OPERATIONS RESUME; PLUS THE PRODUCT OF .4 TIMES THE FINAL AUDITED COUNT FROM THE MOST RECENT COUNT DAY OR SUPPLEMENTAL COUNT DAY PRIOR TO SUSPENDING OPERATIONS, AS DETERMINED BY THE SUPERINTENDENT. (Z) A PUPIL ENROLLED IN A SATELLITE SCHOOL SHALL BE COUNTED IN MEMBERSHIP IN THE DISTRICT THAT OPERATES THE SATELLITE SCHOOL. (AA) IF A SPECIAL EDUCATION PUPIL IS EDUCATED IN A DISTRICT OR INTERMEDIATE DISTRICT THAT IS NOT IN THE PUPIL'S INTERMEDIATE DISTRICT OF RESIDENCE, THE PUPIL SHALL BE COUNTED IN MEMBERSHIP IN THE INTERMEDIATE DISTRICT OF RESIDENCE FOR THE PRORATED PORTION OF THE FULL-TIME EQUATED MEMBERSHIP THAT THE PUPIL RECEIVES SPECIAL EDUCATION PROGRAMS AND SERVICES. THE EDUCATING DISTRICT OR INTERMEDIATE DISTRICT SHALL CHARGE THE ALLOWABLE SPECIAL EDUCATION COSTS OF EDUCATING THE PUPIL AS DETERMINED BY THE SUPERINTENDENT TO THE INTERMEDIATE DISTRICT OF RESIDENCE. FOR THE PURPOSE OF CALCULATING COSTS UNDER SECTION 51A, THE ALLOWABLE SPECIAL EDUCATION COSTS OF EDUCATING THE PUPIL SHALL BE COUNTED ONLY BY THE INTERMEDIATE DISTRICT OF RESIDENCE. (5) "Public school academy" means a public school academy operating under the revised school code. (6) "Pupil" means a person in membership in a public school. A district must have the approval of the pupil's district of residence to count the pupil in membership, except approval by the pupil's district of residence shall not be required for any of the following: (a) Nonpublic part-time pupils enrolled in grades 1 to 12 in accordance with section 166b. (b) Pupils receiving 1/2 or less of their instruction in a district other than their district of residence. (c) Pupils enrolled in a public school academy or university school. (d) Pupils enrolled in a district other than their 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) (D) Pupils enrolled in a district other than their district of residence but within the same intermediate district if the educating district enrolls nonresident pupils in accordance with section 105. (f) (E) Pupils enrolled in a district other than their district of residence if the pupils have been continuously enrolled in the educating district since a school year in which the pupils enrolled in the educating district under section 105 and in which the educating district enrolled nonresident pupils in accordance with section 105. (g) (F) A nonresident 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 nonresident 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 750.90f, 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. However, if a district that is not a first class district educates pupils who reside in a first class district and if the primary instructional site for those pupils is located within the boundaries of the first class district, the educating district must have the approval of the first class district to count those pupils in membership. As used in this subsection, "first class district" means a district organized as a school district of the first class under the revised school code. (G) PUPILS WHOSE RESIDENT DISTRICT CHANGED FOLLOWING THE PUPIL MEMBERSHIP COUNT DAY AND PRIOR TO THE SUPPLEMENTAL COUNT DAY AND WHO CONTINUE TO BE ENROLLED ON THE SUPPLEMENTAL COUNT DAY AS A NONRESIDENT IN THE DISTRICT IN WHICH THEY WERE ENROLLED AS A RESIDENT ON THE PUPIL MEMBERSHIP COUNT DAY OF THE SAME SCHOOL YEAR. (7) "Pupil membership count day" of a district or intermediate district means: (a) Except as provided in subdivision (b), the fourth Wednesday in September each school year. BEGINNING IN SCHOOL YEAR 2000-01, EXCEPT AS PROVIDED IN SUBDIVISION (B), THE FOURTH WEDNESDAY IN THE MONTHS OF SEPTEMBER, OCTOBER, NOVEMBER, JANUARY AND APRIL, AND THE SECOND WEDNESDAY IN THE MONTHS OF DECEMBER, FEBRUARY, AND MARCH. (b) For a district or intermediate district maintaining school during the entire school year, the following days: (i) Fourth Wednesday in July. (ii) Fourth Wednesday in September. (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 COUNT DAY OR THE SUPPLEMENTAL COUNT DAY, AS APPLICABLE. A PUPIL WHO IS ABSENT FROM ANY OF HIS OR HER ENROLLED CLASSES ON THE COUNT DAY OR SUPPLEMENTAL COUNT DAY AND WHO DOES NOT ATTEND EACH OF HIS OR HER CLASSES DURING THE 10 CONSECUTIVE SCHOOL DAYS IMMEDIATELY FOLLOWING THE COUNT DAY OR SUPPLEMENTAL COUNT DAY, EXCEPT FOR A PUPIL WHO HAS BEEN EXCUSED BY THE DISTRICT, SHALL NOT BE COUNTED AS 1.0 FULL-TIME EQUATED MEMBERSHIP. IN ADDITION, A PUPIL WHO IS EXCUSED FROM ATTENDANCE ON THE COUNT DAY OR SUPPLEMENTAL COUNT DAY AND WHO FAILS TO ATTEND EACH OF HIS OR HER ENROLLED CLASSES WITHIN 30 CALENDAR DAYS AFTER THE COUNT DAY OR SUPPLEMENTAL COUNT DAY SHALL NOT BE COUNTED AS 1.0 FULL-TIME EQUATED MEMBERSHIP. PUPILS NOT COUNTED AS 1.0 FULL-TIME EQUATED MEMBERSHIP DUE TO AN ABSENCE FROM AN ENROLLED CLASS SHALL BE COUNTED AS A PRORATED MEMBERSHIP FOR THE ENROLLED CLASSES WHICH WERE ATTENDED. FOR PURPOSES OF THIS SUBSECTION, A "CLASS" IS DEFINED AS A PERIOD OF TIME IN ONE DAY WHEN PUPILS AND A CERTIFICATED TEACHER ARE TOGETHER AND INSTRUCTION IS TAKING PLACE. (8) (9) "Rule" means a rule promulgated pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. (9) (10) "The revised school code" means 1976 PA 451, MCL 380.1 to 380.1852. (11) "SATELLITE SCHOOL" MEANS AN INSTRUCTIONAL PROGRAM OPERATED BY A DISTRICT UNDER SECTION 105C THAT MEETS THE REQUIREMENTS OF SECTION 105C. (10) (12) "School fiscal year" means a fiscal year that commences July 1 and continues through June 30. (11) (13) "State board" means the state board of education. (14) "SUPERINTENDENT" MEANS THE SUPERINTENDENT OF PUBLIC INSTRUCTION FOR THE STATE OF MICHIGAN. (12) (15) "Supplemental count day" means the day on which the supplemental pupil count is conducted under section 6a. (13) (16) "Tuition pupil" means a pupil of school age attending school in a district other than the pupil's district of residence for whom tuition may be charged. Tuition pupil does not include a pupil who is a special education pupil or a pupil described in subsection (6)(d) to (g). 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. (14) (17) "State school aid fund" means the state school aid fund established in section 11 of article IX of the state constitution of 1963. (15) (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. (16) (19) "Total state aid" or "total state school aid" means the total combined amount of all funds due to a district, intermediate district, or other entity under all of the provisions of this act. (17) (20) "University school" means an instructional program operated by a public university under section 23 that meets the requirements of section 23. Sec. 6b. (1) A district enrolling a nonresident pupil with the approval of the pupil's district of residence may count the pupil in membership in a school year if the approval of the pupil's district of residence is received before the end of that school year. (2) If the approval described in subsection (1) is received by the educating district at any time before the end of its school year, the department SUPERINTENDENT shall adjust the educating district's pupil count for the pupil membership count day or the supplemental count day of that school year, or both as necessary to ensure that the pupil is counted in membership in the educating district for those pupil counts for which the pupil was enrolled and in attendance. Sec. 8. (1) In order to receive funds under this act, each district shall furnish to the department SUPERINTENDENT not later than December 1 of each year, on a form and in a manner prescribed by the department SUPERINTENDENT, the information requested by the department SUPERINTENDENT that is necessary for the preparation of the district pupil retention report defined in section 6(3). (2) On the basis of a district's pupil retention report as defined in section 6(3), the department SUPERINTENDENT shall calculate an annual pupil dropout rate for each district. In addition, the department SUPERINTENDENT shall calculate an annual pupil dropout rate for the state in the same manner as that used to calculate the pupil dropout rate for a district. The department SUPERINTENDENT shall report all pupil dropout rates to the senate and house education committees and appropriations committees and the department of management and budget STATE BUDGET DIRECTOR not later than September 15 each year. Sec. 8a. For each of the district's school buildings that operate some or all of grades K-3, a district shall report to the department SUPERINTENDENT not later than December 1 of each school year the average number of pupils per class in grades K-3 in the school building. Sec. 11. (1) For the fiscal year ending September 30, 1998, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $8,717,471,600.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $377,935,400.00 from the general fund. For the fiscal year ending September 30, 1999, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $9,000,761,900.00 $9,068,554,800.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $420,613,500.00 from the general fund. For the fiscal year ending September 30, 2000, there is appropriated for the public schools of this state and certain other state purposes relating to education the sum of $9,366,408,600.00 $9,486,489,000.00 from the state school aid fund established by section 11 of article IX of the state constitution of 1963 and the sum of $420,613,500.00 from the general fund. In addition, available federal funds are appropriated for 1997-98, for 1998-99, and for 1999-2000. (2) The appropriations under this section shall be allocated as provided in this act. Money appropriated under this section from the general fund and from available federal funds shall be expended to fund the purposes of this act before the expenditure of money appropriated under this section from the state school aid fund. If the maximum amount appropriated under this section from the state school aid fund for a fiscal year exceeds the amount necessary to fully fund allocations under this act from the state school aid fund, that excess amount shall not be expended in that state fiscal year and shall not lapse to the general fund, but instead shall remain in the state school aid fund. (3) If the maximum amount appropriated under this section and sections 11f and 11g 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, payments under sections 11f, 11g, and 51a (2) shall be made in full and payments under each of the other sections of this act shall be prorated on an equal percentage basis as necessary to reflect the amount available for expenditure from the state school aid fund for that fiscal year. However, if the department of treasury determines that proration will be required under this subsection, the department of treasury shall notify the STATE BUDGET director of the department of management and budget, and the STATE BUDGET director of the department of management and budget shall notify the legislature at least 30 calendar days or 6 legislative session days, whichever is more, before the department SUPERINTENDENT reduces any payments under this act because of the proration. During the 30 calendar day or 6 legislative session day period after that notification by the STATE BUDGET director of the department of management and budget, the department SUPERINTENDENT shall not reduce any payments under this act because of proration under this subsection. The legislature may prevent proration from occurring by, within the 30 calendar day or 6 legislative session day period after that notification by the department of management and budget STATE BUDGET DIRECTOR, enacting legislation appropriating additional funds from the general fund, countercyclical budget and economic stabilization fund, state school aid fund balance, or another source to fund the amount of the projected shortfall. Sec. 11g. (1) In addition to the appropriations under section 11f and any other money appropriated under this act, there is appropriated from the state school aid fund an amount not to exceed $40,000,000.00 for the fiscal year ending September 30, 1999. From the general fund money appropriated in section 11, there is appropriated ALLOCATED an amount not to exceed $40,000,000.00 for the fiscal year ending September 30, 2000 and for each succeeding fiscal year through the fiscal year ending September 30, 2013. Payments under this section will cease after September 30, 2013. These appropriations are for paying the amounts described in subsection (3) to districts and intermediate districts, other than those receiving a lump sum payment under section 11f(2), that were not plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492 and that, on or before March 2, 1998, have submitted to the state treasurer a waiver resolution described in section 11f. The amounts paid under this section represent offers of settlement and compromise of any claim or claims that were or could have been asserted by these districts and intermediate districts, as described in this section. (2) This section does not create any obligation or liability of this state to any district or intermediate district that does not submit a waiver resolution described in section 11f. This section, any other provision of this act, and section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, are not intended to admit liability or waive any defense that is or would be available to this state or its agencies, employees, or agents in any litigation or future litigation with a district or intermediate district regarding these claims or potential claims. (3) The amount paid each fiscal year to each district or intermediate district under this section shall be the sum of the following: (a) 1/30 of the total amount listed in section 11h for the district or intermediate district. (b) If the district or intermediate district borrows money and issues bonds under section 11i, an additional amount in each fiscal year calculated by the department of treasury that, when added to the amount described in subdivision (a), will cause the net present value as of November 15, 1998 of the total of the 15 annual payments made to the district or intermediate district under this section, discounted at a rate as determined by the state treasurer, to equal the amount of the bonds issued by that district or intermediate district under section 11i and that will result in the total payments made to all districts and intermediate districts in each fiscal year under this section being no more than the amount appropriated under this section in each fiscal year. (4) The entire amount of each payment under this section each fiscal year shall be paid on May 15 of the applicable fiscal year or on the next business day following that date. If a district or intermediate district borrows money and issues bonds under section 11i, the district or intermediate district shall use funds received under this section to pay debt service on bonds issued under section 11i. If a district or intermediate district does not borrow money and issue bonds under section 11i, the district or intermediate district shall use funds received under this section only for the following purposes, in the following order of priority: (a) First, to pay debt service on voter-approved bonds issued by the district or intermediate district before the effective date of this section. (b) Second, to pay debt service on other limited tax obligations. (c) Third, for deposit into a sinking fund established by the district or intermediate district under the revised school code. (5) To the extent payments under this section are used by a district or intermediate district to pay debt service on debt payable from millage revenues, and to the extent permitted by law, the district or intermediate district may make a corresponding reduction in the number of mills levied for debt service. (6) A district or intermediate district may pledge or assign payments under this section as security for bonds issued under section 11i, but shall not otherwise pledge or assign payments under this section. (7) The state school aid fund appropriation under this section for 1998-99 is from the money appropriated and transferred to the state school aid fund from the countercyclical budget and economic stabilization fund under section 353e(2) of the management and budget act, 1984 PA 431, MCL 18.1353e. Sec. 13. Except as otherwise provided in this act, the apportionments and limitations of the apportionments made under this act shall be made on the membership and number of teachers and other professionals approved by the superintendent of public instruction employed as of the pupil membership count day of each year and on the taxable value and the operating millage of each district for the calendar year. In addition, a district maintaining school during the entire year, as provided in section 1561 of the revised school code, being section 380.1561 of the Michigan Compiled Laws, shall count memberships and teachers pursuant to rules promulgated by the state board SUPERINTENDENT. Sec. 14. If the returns from an intermediate district or district upon which a statement of the amount to be disbursed or paid are defective, making it impracticable to ascertain the apportionment to be disbursed or paid, the department SUPERINTENDENT shall withhold the amount of the apportionment that cannot be ascertained until the department SUPERINTENDENT is able to ascertain by the best evidence available the facts upon which the ratio and amount of the apportionment depend, and then shall make the apportionment accordingly. Sec. 15. (1) If a district or intermediate district fails to receive its proper apportionment, the department SUPERINTENDENT, upon satisfactory proof that the district or intermediate district was entitled justly, shall apportion the deficiency in the remaining apportionments. Subject to subsections (2) and (3), if a district or intermediate district has received more than its proper apportionment, the department SUPERINTENDENT, upon satisfactory proof, shall deduct the excess in the remaining apportionments. Notwithstanding any other provision in this act, 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 act other than a special education or special education transportation payment. State aid overpayments made in special education or special education transportation payments may be recovered from subsequent special education or special education transportation payments. (2) If the result of an audit conducted by or for the department SUPERINTENDENT affects the current fiscal year membership, affected payments shall be adjusted in the current fiscal year. A deduction due to an adjustment made as a result of an audit conducted by or for the department SUPERINTENDENT, or as a result of information obtained by the department SUPERINTENDENT from the district, an intermediate district, the department of treasury, or the office of auditor general, shall be deducted from the district's apportionments within the next fiscal year after the fiscal year in which the adjustment is finalized. At the request of the district and upon the district presenting evidence satisfactory to the department SUPERINTENDENT of the hardship, the department SUPERINTENDENT may grant up to an additional 4 years for the adjustment if the district would otherwise experience a significant hardship. (3) If, because of the receipt of new or updated data, the department SUPERINTENDENT determines during a fiscal year that the amount paid to a district or intermediate district under this act for a prior fiscal year was incorrect under the law in effect for that year, the department SUPERINTENDENT may make the appropriate deduction or payment in the district's or intermediate district's allocation for the fiscal year in which the determination is made. The deduction or payment shall be calculated according to the law in effect in the fiscal year in which the improper amount was paid. (4) Expenditures made by the department under this act that are caused by the write-off of prior year accruals may be funded by revenue from the write-off of prior year accruals. Sec. 17a. (1) The department SUPERINTENDENT may withhold all or part of any payment that a district or intermediate district is entitled to receive under this act to the extent the withholdings are a component part of a plan, developed and implemented pursuant to chapter IX of the municipal finance act, Act No. 202 of the Public Acts of 1943, being sections 139.1 to 139.3 of the Michigan Compiled Laws, or other statutory authority, for financing an outstanding obligation upon which the district or intermediate district defaulted. Amounts withheld shall be used to pay, on behalf of the district or intermediate district, unpaid amounts or subsequently due amounts, or both, of principal and interest on the outstanding obligation upon which the district or intermediate district defaulted. (2) Under an agreement entered into by a district or intermediate district assigning all or a portion of the payment that it is eligible to receive under this act to the Michigan municipal bond authority or to the trustee of a pooled arrangement or pledging such amount for payment of an obligation it incurred with the Michigan municipal bond authority or with the trustee of a pooled arrangement, the state treasurer shall transmit to the Michigan municipal bond authority or a trustee designated by the authority or to the trustee of a pooled arrangement the amount of the payment which is assigned or pledged under the agreement. Notwithstanding the payment dates prescribed by this act for distributions under this act, the state treasurer may advance all or part of a payment which is dedicated for distribution or for which the appropriation authorizing the payment has been made if and to the extent, under the terms of an agreement entered into by a district or intermediate district and the Michigan municipal bond authority, the payment which the district or intermediate district is eligible to receive has been assigned to or pledged for payment of an obligation it incurred with the Michigan municipal bond authority. This subsection does not require the state to make an appropriation to any school district or intermediate school district and shall not be construed as creating an indebtedness of the state, and any agreement made pursuant to this subsection shall contain a statement to that effect. As used in this subsection, "trustee of a pooled arrangement" means the trustee of a trust approved by the state treasurer and, subject to the conditions and requirements of that approval, established for the purpose of offering for sale, as part of a pooled arrangement, certificates representing undivided interests in notes issued by districts or intermediate districts under section 1225 of the revised school code, being section 380.1225 of the Michigan Compiled Laws. If a trustee applies to the state treasurer for approval of a trust for the purposes of this subsection, the state treasurer shall approve or disapprove the trust within 10 days after receipt of the application. Sec. 17b. (1) Not later than October 20, November 20, December 20, January 20, February 20, March 20, April 20, May 20, June 20, July 20, and August 20, the department SUPERINTENDENT shall prepare a statement of the amount to be distributed under this act in the installment to the districts and intermediate districts and deliver the statement to the state treasurer, and the state treasurer shall pay the installments on each of those dates or on the next business day following each of those dates. Except as otherwise provided in this act, the portion of the district's or intermediate district's state fiscal year entitlement to be included in each installment shall be 1/11. However, for 1997-98 only, there shall not be an installment paid on August 20, and the portion to be included in each installment shall be 11.11% for the October and November payments; 9.72% for the December, January, February, March, April, May, and June payments; and 9.74% for the July payment. The payments due to a district in 1997-98 on April 20, May 20, June 20, and July 20 pursuant to this section each shall be reduced by an amount equal to 1/4 of the district's total additional payments in 1996-97 under former section 20c. A district or intermediate district shall accrue the payments received in July and August to the school fiscal year ending the immediately preceding June 30. (2) The state treasurer shall make payment under this section by drawing a warrant in favor of the treasurer of each district or intermediate district for the amount payable to the district or intermediate district according to the statement and delivering the warrant to the treasurer of each district or intermediate district, or if the state treasurer receives a written request by the treasurer of the district or intermediate district specifying an account, by electronic funds transfer to that account of the amount payable to the district or intermediate district according to the statement. The department SUPERINTENDENT may make adjustments in payments made under this section through additional payments when changes in law or errors in computation cause the regularly scheduled payment to be less than the amount to which the district or intermediate district is entitled pursuant to this act. (3) Except as otherwise specified in this act, grant payments under this act shall be paid according to subsection (1). (4) Upon the written request of a district or intermediate district and the submission of proof satisfactory to the department SUPERINTENDENT of a need of a temporary and nonrecurring nature, the superintendent, with the written concurrence of the state treasurer and the STATE BUDGET director of management and budget, may authorize an advance release of funds due a district or intermediate district under this act. Such an advance shall not cause funds to be paid to a district or intermediate district more than 30 days earlier than the established payment date for those funds. Sec. 18. (1) Except as provided in another section of this act, each district or other entity shall apply the money received by the district or entity under this act to salaries and other compensation of teachers and other employees, tuition, transportation, lighting, heating, ventilation, water service, the purchase of textbooks which are designated by the board to be used in the schools under the board's charge, other supplies, and any other school operating expenditures defined in section 7. However, not more than 20% of the total amount received by a district under article 2 or intermediate district under article 8 may be transferred by the board to either the capital projects fund or to the debt retirement fund for debt service. The money shall not be applied or taken for a purpose other than as provided in this section. The department SUPERINTENDENT shall determine the reasonableness of expenditures and may withhold from a recipient of funds under this act the apportionment otherwise due for the fiscal year following the discovery by the department SUPERINTENDENT of a violation by the recipient. (2) For the purpose of determining the reasonableness of expenditures and whether a violation of this act has occurred, the department SUPERINTENDENT shall require that each district and intermediate district have an audit of the district's or intermediate district's financial and pupil accounting records conducted at least annually at the expense of the district or intermediate district, as applicable, by a certified public accountant or by the intermediate district superintendent, as may be required by the department SUPERINTENDENT, 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. An intermediate district's annual financial audit shall be accompanied by the intermediate district's pupil accounting procedures report. A district's or intermediate district's annual financial audit shall include an analysis of the financial and pupil accounting data used as the basis for distribution of state school aid. The pupil 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 SUPERINTENDENT. NOT LATER THAN JUNE 1, 1999, THE SUPERINTENDENT SHALL APPROVE AND PUBLISH PUPIL ACCOUNTING AND SCHOOL AUDITING MANUALS AND SHALL AT LEAST ANNUALLY REVIEW AND PERIODICALLY UPDATE THOSE MANUALS TO REFLECT CHANGES IN THIS ACT. THE AUDITING AND ACCOUNTING MANUALS IN EFFECT FOR THE 1996-97 SCHOOL YEAR, INCLUDING SUBSEQUENT REVISIONS ISSUED BY THE SUPERINTENDENT, SHALL BE THE INTERIM MANUALS IN EFFECT UNTIL NEW MANUALS ARE APPROVED AND PUBLISHED. HOWEVER, CLARIFICATION OF CLASS-BY-CLASS ACCOUNTING PROVIDED IN THE DEPARTMENT'S APRIL 15, 1998 MEMORANDUM ON PUPIL ACCOUNTING PROCEDURES SHALL BE EXCLUDED FROM THE INTERIM MANUALS. Except as otherwise provided in this subsection, a district shall file the annual financial audit reports with the intermediate district not later than 120 days after the end of each school fiscal year and the intermediate district shall forward the annual financial audit reports for its constituent districts and for the intermediate district, and the pupil accounting procedures report for the pupil membership count day and supplemental count day, to the department SUPERINTENDENT not later than November 15 of each year. The annual financial audit reports and pupil accounting procedures reports shall be available to the public in compliance with the freedom of information act, Act No. 442 of the Public Acts of 1976, being sections 15.231 to 15.246 of the Michigan Compiled Laws. Not later than December 1 of each year, the department SUPERINTENDENT shall notify the STATE BUDGET DIRECTOR department of management and budget 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. (3) Each district and intermediate district shall file with the department SUPERINTENDENT by November 15 of each year an annual comprehensive financial report, known as "Form B", on a form and in the manner prescribed by the department SUPERINTENDENT. (4) If a district that is a public school academy purchases property using money received under this act, the public school academy shall retain ownership of the property unless the public school academy sells the property at fair market value. (5) If a district or intermediate district does not comply with subsection (2) or (3), the department SUPERINTENDENT shall withhold all state school aid due to the district or intermediate district under this act, beginning with the next payment due to the district or intermediate district, until the district or intermediate district complies with subsections (2) and (3). If the district or intermediate district does not comply with subsections (2) and (3) by the end of the fiscal year, the district or intermediate district forfeits the amount withheld. Sec. 18a. Grant funds awarded and allotted to a district or intermediate district, unless otherwise specified in this act, shall be expended by the grant recipient before the end of the school fiscal year immediately following the fiscal year in which the funds are received. If a grant recipient does not expend the funds received under this act before the end of the fiscal year in which the funds are received, the grant recipient shall submit a report to the department SUPERINTENDENT not later than November 1 after the fiscal year in which the funds are received indicating whether it expects to expend those funds during the fiscal year in which the report is submitted. A recipient of a grant shall return any unexpended grant funds to the department SUPERINTENDENT in the manner prescribed by the department SUPERINTENDENT not later than September 30 after the fiscal year in which the funds are received. Sec. 19. (1) A district shall comply with the requirements of sections 1204a, 1277, 1278, and 1280 of the revised school code, being sections 380.1204a, 380.1277, 380.1278, and 380.1280 of the Michigan Compiled Laws, commonly referred to as "public act 25 of 1990". (2) Each district and intermediate district shall provide to the department SUPERINTENDENT, in a form and manner prescribed by the department SUPERINTENDENT, information necessary for the development of an annual progress report on the implementation of sections 1204a, 1277, 1278, and 1280 of the revised school code, commonly referred to as "public act 25 of 1990", and on the achievement of national education goals. (3) If a district or intermediate district fails to meet the requirements of subsection (2) and sections 1204a, 1277, and 1278 of the revised school code, the department SUPERINTENDENT shall withhold 5% of the total funds for which the district or intermediate district qualifies under this act until the district or intermediate district complies with all of those sections. If the district or intermediate district does not comply with all of those sections by the end of the fiscal year, the department SUPERINTENDENT shall place the amount withheld in an escrow account until the district or intermediate district complies with all of those sections. (4) If a school in a district is not accredited under section 1280 of the revised school code or is not making satisfactory progress toward meeting the standards for that accreditation, the department SUPERINTENDENT shall withhold 5% of the total funds for which the district qualifies under this act that are attributable to pupils attending that school. The department SUPERINTENDENT shall place the amount withheld from a district under this subsection in an escrow account and shall not release the funds to the district until the district submits to the department SUPERINTENDENT a plan for achieving accreditation for each of the district's schools that are not accredited under section 1280 of the revised school code or are not making satisfactory progress toward meeting the standards for that accreditation. Sec. 20. (1) For 1997-98 and 1998-99, the basic foundation allowance is $5,462.00 per membership pupil. For 1999-2000, the basic foundation allowance is $5,652.00 per membership pupil. (2) From the appropriation in section 11, there is allocated for 1997-98 an amount not to exceed $8,022,595,100.00, for 1998-99 an amount not to exceed $7,970,372,900.00 $8,034,400,000.00, and for 1999-2000 an amount not to exceed $8,314,985,400.00 $8,429,600,000.00, to guarantee each district a foundation allowance per membership pupil other than special education pupils and to make payments under this section to public school academies and university schools for membership pupils other than special education pupils. The amount of each district's foundation allowance shall be calculated as provided in this section, using a basic foundation allowance in the amount specified in subsection (1). If the maximum amount allocated under this section is not sufficient to fully fund payments under this section, and before any proration required under section 11, the amount of the payment to each district, university school, and public school academy shall be prorated by reducing by an equal percentage the total payment under this section to each district, university school, and public school academy. However, if the department SUPERINTENDENT determines that proration will be required under this section, the superintendent of public instruction shall notify the department of management and budget STATE BUDGET DIRECTOR, and the department of management and budget STATE BUDGET DIRECTOR shall notify the legislature at least 30 calendar days or 6 legislative session days, whichever is more, before the department SUPERINTENDENT reduces any payments under this section because of the proration. During the 30 calendar day or 6 legislative session day period after that notification by the department of management and budget STATE BUDGET DIRECTOR, the department SUPERINTENDENT shall not reduce any payments under this section because of proration. The legislature may prevent proration under this section from occurring by, within the 30 calendar day or 6 legislative session day period after that notification by the STATE BUDGET director, enacting legislation appropriating additional funds from the general fund, countercyclical budget and economic stabilization fund, state school aid fund balance, or another source to ensure full foundation allowance funding for each district, university school, and public school academy. (3) Except as otherwise provided in this section, the amount of a district's foundation allowance shall be calculated as follows, using in all calculations the total amount of the district's foundation allowance as calculated before any proration: (a) For a district that in the immediately preceding state fiscal year had a foundation allowance at least equal to the sum of $4,200.00 plus the total dollar amount of all adjustments made from 1994-95 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts, but less than the basic foundation allowance in the immediately preceding state fiscal year, the district shall receive a foundation allowance in an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus the difference between twice the dollar amount of the adjustment from the immediately preceding state fiscal year to the current state fiscal year made in the basic foundation allowance and [(the dollar amount of the adjustment from the immediately preceding state fiscal year to the current state fiscal year made in the basic foundation allowance minus $50.00) times (the difference between the district's foundation allowance for the immediately preceding state fiscal year and the sum of $4,200.00 plus the total dollar amount of all adjustments made from 1994-95 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts) divided by the difference between the basic foundation allowance for the current state fiscal year and the sum of $4,200.00 plus the total dollar amount of all adjustments made from 1994-95 to the immediately preceding state fiscal year in the lowest foundation allowance among all districts]. However, the foundation allowance for a district that had less than the basic foundation allowance in the immediately preceding state fiscal year shall not exceed the basic foundation allowance for the current state fiscal year. (b) For a district that in the immediately preceding state fiscal year had a foundation allowance in an amount at least equal to the amount of the basic foundation allowance for the immediately preceding state fiscal year, the district shall receive a foundation allowance in an amount equal to the sum of the district's foundation allowance for the immediately preceding state fiscal year plus the dollar amount of the adjustment from the immediately preceding state fiscal year to the current state fiscal year in the basic foundation allowance. (c) For 1998-99, each district's foundation allowance shall be at least $5,170.00. (4) To ensure that a district receives the district's foundation allowance, there is allocated to each district a state portion of the district's foundation allowance in an amount calculated under this subsection. The state portion of a district's foundation allowance is an amount equal to the district's foundation allowance or $6,500.00, whichever is less, minus the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 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, or the Brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils. For a district that has a millage reduction required under section 31 of article IX of the state constitution of 1963, except for a district that was notified of such a millage reduction in 1996 after the last permissible date to schedule an election to override that millage reduction, the state portion of the district's foundation allowance shall be calculated as if that reduction did not occur. For each fiscal year after 1994-95, the $6,500.00 amount prescribed in this subsection shall be adjusted each year by an amount equal to the dollar amount of the difference between the basic foundation allowance for the current state fiscal year and $5,000.00. (5) The allocation under this section for a pupil shall be based on the foundation allowance of the pupil's district of residence. However, for a pupil enrolled pursuant to section 105 in a district other than the pupil's district of residence but within the same intermediate district, the allocation under this section shall be based on the lesser of the foundation allowance of the pupil's district of residence or the foundation allowance of the educating district. For a pupil in membership in a K-5, K-6, or K-8 district who is enrolled in another district in a grade not offered by the pupil's district of residence, the allocation under this section shall be based on the foundation allowance of the educating district if the educating district's foundation allowance is greater than the foundation allowance of the pupil's district of residence. (6) Subject to subsection (7) and except as otherwise provided in this subsection, for pupils in membership, other than special education pupils, in a public school academy or, a university school, OR A SATELLITE SCHOOL UNDER SECTION 105C, there is allocated under this section each fiscal year for 1997-98, for 1998-99, and for 1999-2000 to the authorizing body that is the fiscal agent for the public school academy for forwarding to the public school academy, or to the board of the public university operating the university school, OR TO THE DISTRICT OPERATING A SATELLITE SCHOOL, an amount per membership pupil other than special education pupils in the public school academy or, university school, OR SATELLITE SCHOOL equal to the sum of the local school operating revenue per membership pupil other than special education pupils for the district in which the public school academy or, university school, OR SATELLITE SCHOOL is located and the state portion of that district's foundation allowance, or the sum of the basic foundation allowance under subsection (1) plus $500.00, whichever is less. Notwithstanding section 101(2), for a public school academy OR SATELLITE SCHOOL that begins operations in 1997-98, 1998-99, or 1999-2000, as applicable, after the pupil membership count day, the amount per membership pupil calculated under this subsection shall be adjusted by multiplying that amount per membership pupil by the number of hours of pupil instruction provided by the public school academy OR SATELLITE SCHOOL after it begins operations, as determined by the department SUPERINTENDENT, divided by the minimum number of hours of pupil instruction required under section 1284 of the revised school code, MCL 380.1284. The result of this calculation shall not exceed the amount per membership pupil otherwise calculated under this subsection. Also, a public school academy OR SATELLITE SCHOOL that begins operations in 1997-98, 1998-99, or 1999-2000, as applicable, after the pupil membership count day shall not receive any funds under this section unless the public school academy OR SATELLITE SCHOOL provides for the school year a number of hours of pupil instruction that is at least in the same proportion to the minimum number of hours of pupil instruction required under section 1284 of the revised school code, MCL 380.1284, as the number of days of pupil instruction provided by the public school academy OR SATELLITE SCHOOL for the school year is in proportion to the number of days of pupil instruction required under section 1284 of the revised school code, MCL 380.1284. (7) If more than 25% of the pupils residing within a district are in membership in 1 or more public school academies located in the district, then the amount per membership pupil allocated under this section to the authorizing body that is the fiscal agent for a public school academy located in the district for forwarding to the public school academy shall be reduced by an amount equal to the difference between the product of the taxable value per membership pupil of all property in the district that is not a homestead or qualified agricultural property times the lesser of 18 mills or the number of mills of school operating taxes levied by the district in 1993-94 and the quotient of the ad valorem property tax revenue of the district captured under 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, or the Brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the district's membership excluding special education pupils, in the school fiscal year ending in the current state fiscal year, calculated as if the resident pupils in membership in 1 or more public school academies located in the district were in membership in the district. In order to receive state school aid under this act, a district described in this subsection shall pay to the authorizing body that is the fiscal agent for a public school academy located in the district for forwarding to the public school academy an amount equal to that local school operating revenue per membership pupil for each resident pupil in membership other than special education pupils in the public school academy, as determined by the department SUPERINTENDENT. (8) If a district does not receive a payment under subsection (9); if the number of mills the district may levy on a homestead and qualified agricultural property under section 1211(1) of the revised school code, MCL 380.1211, is 0.5 mills or less; and if the district elects not to levy those mills, the district instead shall receive a separate supplemental payment under this subsection in an amount equal to the amount the district would have received had it levied those mills, as determined by the department of treasury. A district shall not receive a separate supplemental payment under this subsection for a fiscal year unless in the calendar year ending in the fiscal year the district levies 18 mills or the number of mills of school operating taxes levied by the district in 1993, whichever is less, on property that is not a homestead or qualified agricultural property. (9) For a district that had combined state and local revenue per membership pupil in the 1993-94 state fiscal year of more than $6,500.00 and that had fewer than 350 pupils in membership, if the district elects not to reduce the number of mills from which a homestead and qualified agricultural property are exempt and not to levy school operating taxes on a homestead and qualified agricultural property as provided in section 1211(1) of the revised school code, MCL 380.1211, and not to levy school operating taxes on all property as provided in section 1211(2) of the revised school code, MCL 380.1211, there is allocated under this subsection for 1994-95 and each succeeding fiscal year a separate supplemental payment in an amount equal to the amount the district would have received per membership pupil had it levied school operating taxes on a homestead and qualified agricultural property at the rate authorized for the district under section 1211(1) of the revised school code, MCL 380.1211, and levied school operating taxes on all property at the rate authorized for the district under section 1211(2) of the revised school code, MCL 380.1211, as determined by the department of treasury. A district shall not receive a separate supplemental payment under this subsection for a fiscal year other than 1997-98 unless in the calendar year ending in the fiscal year the district levies 18 mills or the number of mills of school operating taxes levied by the district in 1993, whichever is less, on property that is not a homestead or qualified agricultural property. Beginning with the 1998-99 fiscal year, if in the calendar year ending in the fiscal year a district does not levy 18 mills or the number of mills of school operating taxes levied by the district in 1993, whichever is less, on property that is not a homestead or qualified agricultural property, the payment under this subsection will be reduced by the same percentage as the millage actually levied compares to the 18 mills or the number of mills levied in 1993, whichever is less. (10) A district or public school academy may use any funds allocated under this section in conjunction with any federal funds for which the district or public school academy otherwise would be eligible. (11) For a district that is formed or reconfigured after June 1, 1994 by consolidation of 2 or more districts or by annexation, the resulting district's foundation allowance under this section beginning after the effective date of the consolidation or annexation shall be the average of the foundation allowances of each of the original or affected districts, calculated as provided in this section, weighted as to the percentage of pupils in total membership in the resulting district who reside in the geographic area of each of the original districts. If an affected district's foundation allowance is less than the basic foundation allowance, the amount of that district's foundation allowance shall be considered for the purpose of calculations under this subsection to be equal to the amount of the basic foundation allowance. (12) Each fraction used in making calculations under this section shall be rounded to the fourth decimal place and the dollar amount of an increase in the basic foundation allowance shall be rounded to the nearest whole dollar. (13) State payments related to payment of the foundation allowance for a special education pupil are not funded under this section but are instead funded under section 51a. (14) To assist the legislature in determining the basic foundation allowance for the subsequent state fiscal year, except for the January 1998 revenue estimating conference, each revenue estimating conference conducted under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b, shall calculate a pupil membership factor, a revenue adjustment factor, and an index as follows: (a) The pupil membership factor shall be computed by dividing the estimated membership in the school year ending in the current state fiscal year, excluding intermediate district membership, by the estimated membership for the school year ending in the subsequent state fiscal year, excluding intermediate district membership. If a consensus membership factor is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference. (b) The revenue adjustment factor shall be computed by dividing the sum of the estimated total state school aid fund revenue for the subsequent state fiscal year plus the estimated total state school aid fund revenue for the current state fiscal year, adjusted for any change in the rate or base of a tax the proceeds of which are deposited in that fund and excluding money transferred into that fund from the countercyclical budget and economic stabilization fund under section 353e of the management and budget act, 1984 PA 431, MCL 18.1353e, by the sum of the estimated total school aid fund revenue for the current state fiscal year plus the estimated total state school aid fund revenue for the immediately preceding state fiscal year, adjusted for any change in the rate or base of a tax the proceeds of which are deposited in that fund. If a consensus revenue factor is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference. (c) The index shall be calculated by multiplying the pupil membership factor by the revenue adjustment factor. However, for 1998-99 only, the index shall be 1.00. If a consensus index is not determined at the revenue estimating conference, the principals of the revenue estimating conference shall report their estimates to the house and senate subcommittees responsible for school aid appropriations not later than 7 days after the conclusion of the revenue conference. (15) If the principals at the revenue estimating conference reach a consensus on the index described in subsection (14)(c), the basic foundation allowance for the subsequent state fiscal year shall be at least the amount of that consensus index multiplied by the basic foundation allowance specified in subsection (1). (16) If the pupil membership, excluding intermediate district membership, for the school year ending in the next state fiscal year is estimated at the January revenue estimating conference to be greater than 101% of the pupil membership, excluding intermediate district membership, for the school year ending in the current state fiscal year, then it is the intent of the legislature that the executive budget proposal for the school aid budget in the subsequent state fiscal year incorporate a general fund/general purpose allocation that is greater than the general fund/general purpose allocation in the current fiscal year, to support the estimated membership in excess of 101% of the membership in the current year. (16) BEGINNING IN 1999-2000, FOR A DISTRICT THAT HAD COMBINED STATE AND LOCAL REVENUE PER MEMBERSHIP PUPIL IN THE 1993-94 STATE FISCAL YEAR OF MORE THAN $6,500, THAT HAD FEWER THAN 7 PUPILS IN MEMBERSHIP IN THE 1993-94 STATE FISCAL YEAR, THAT HAS AT LEAST 1 PUPIL IN MEMBERSHIP EDUCATED IN THE DISTRICT IN THE CURRENT STATE FISCAL YEAR, AND THAT LEVIES AT LEAST THE NUMBER OF MILLS OF SCHOOL OPERATING TAXES LEVIED BY THE DISTRICT IN 1993-94, THE DISTRICT SHALL BE ALLOCATED A MINIMUM AMOUNT OF COMBINED STATE AND LOCAL REVENUE. THE MINIMUM AMOUNT OF COMBINED STATE AND LOCAL REVENUE IN 1999-2000 SHALL BE $67,000 PLUS THE DISTRICT'S ADDITIONAL EXPENSES TO EDUCATE PUPILS IN GRADES 9 TO 12 EDUCATED IN OTHER DISTRICTS AS DETERMINED AND ALLOWED BY THE SUPERINTENDENT. BEGINNING IN 2000-01, THE MINIMUM AMOUNT OF COMBINED STATE AND LOCAL REVENUE PRIOR TO ADDING THE ADDITIONAL EXPENSES SHALL INCREASE EACH FISCAL YEAR BY THE SAME PERCENTAGE INCREASE AS THE PERCENTAGE INCREASE IN THE BASIC FOUNDATION ALLOWANCE FROM THE IMMEDIATELY PRECEDING FISCAL YEAR TO THE CURRENT FISCAL YEAR. THE STATE PORTION OF THE MINIMUM AMOUNT OF COMBINED STATE AND LOCAL REVENUE SHALL BE CALCULATED BY SUBTRACTING FROM THE MINIMUM AMOUNT OF COMBINED STATE AND LOCAL REVENUE THE SUM OF THE DISTRICT'S LOCAL SCHOOL OPERATING REVENUE AND THE PRODUCT OF THE STATE PORTION OF THE DISTRICT'S FOUNDATION ALLOWANCE TIMES THE DISTRICT'S MEMBERSHIP. AS USED IN THIS SUBSECTION, "ADDITIONAL EXPENSES" ARE THE DISTRICT'S EXPENSES FOR TUITION OR FEES, NOT TO EXCEED $6,500.00 AS ADJUSTED EACH YEAR BY AN AMOUNT EQUAL TO THE DOLLAR AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR AND $5,000.00, PLUS A ROOM AND BOARD STIPEND NOT TO EXCEED $10.00 PER SCHOOL DAY FOR EACH PUPIL IN GRADES 9 TO 12 EDUCATED IN OTHER DISTRICTS, AS APPROVED BY THE SUPERINTENDENT. (17) As used in this section: (A) "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. (a) (B) "Combined state and local revenue per membership pupil" 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, divided by the district's membership excluding special education pupils. (b) (C)"Current state fiscal year" means the state fiscal year for which a particular calculation is made. (c) (D) "Homestead" means that term as defined in section 1211 of the revised school code, MCL 380.1211. (d) (E) "Immediately preceding state fiscal year" means the state fiscal year immediately preceding the current state fiscal year. (e) (F) "Local school operating revenue" means school operating taxes levied under section 1211 of the revised school code, MCL 380.1211. (f) (G) "Local school operating revenue per membership pupil" means a district's local school operating revenue divided by the district's membership excluding special education pupils. (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) "Qualified agricultural property" means that term as defined in section 1211 of the revised school code, MCL 380.1211. (I) (J) "School operating purposes" means the purposes included in the operation costs of the district as prescribed in sections 7 and 18. (j) (K) "School operating taxes" means local ad valorem property taxes levied under section 1211 of the revised school code, MCL 380.1211, and retained for school operating purposes. (k) (L) "Taxable value per membership pupil" means taxable value, as certified by the department of treasury, for the calendar year ending in the current state fiscal year divided by the district's membership excluding special education pupils for the school year ending in the current state fiscal year. Sec. 20b. (1) From the state school aid fund money appropriated in section 11 for 1998-99, there is allocated for 1998-99 only an amount not to exceed $96,350,000.00 $96,700,000.00 for payments to districts and intermediate districts under this section. (2) The total amount allocated to districts under this section is $95,600,000.00. $95,950,000.00. The amount of the payment to each district under this section shall be as follows: (a) For a district with a 1998-99 foundation allowance under section 20 at least equal to the amount of the 1998-99 basic foundation allowance under section 20, an amount equal to $51.00 per 1998-99 membership pupil of the district. (b) For a district with a 1998-99 foundation allowance under section 20 of less than the amount of the 1998-99 basic foundation allowance under section 20, an amount per 1998-99 membership pupil of the district equal to the amount calculated by multiplying 2 times $51.00 and subtracting from that product the product of $51.00 times the quotient of (the district's 1998-99 foundation allowance under section 20 minus $5,170.00) divided by $292.00. (3) The total amount allocated to intermediate districts under this section is $750,000.00. The amount of the payment to each intermediate district under this section shall be an amount equal to 0.9% of the amount of funding actually received by the intermediate district under section 81(1) for 1997-98. (4) Notwithstanding section 17b, the payments due to a district or intermediate district under this section shall be made in 7 equal installments and shall be included in the monthly payments under section 17b for each month from February 1999 through August 1999. Sec. 24. (1) Subject to subsection (2), from the appropriation in section 11, there is allocated for 1997-98, for 1998-99, and for 1999-2000 to the educating district or intermediate district an amount equal to 100% of the added cost each fiscal year for educating all pupils assigned by a court or the family independence agency to reside in or to attend a juvenile detention facility or child caring institution licensed by the family independence agency OR THE DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES and approved by the department SUPERINTENDENT to provide an on-grounds education program. The total amount to be paid under this section for added cost shall not exceed $7,000,000.00 each fiscal year for 1997-98 and 1998-99 and shall not exceed $7,900,000.00 for 1999-2000. For the purposes of this section, "added cost" shall be computed by deducting all other revenue received under this act for pupils described in this section from total costs, as approved by the department SUPERINTENDENT, for educating those pupils in the on-grounds education program or in a program approved by the department SUPERINTENDENT that is located on property adjacent to a juvenile detention facility or child caring institution. Costs reimbursed by federal funds are not included. (2) 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 SUPERINTENDENT-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 offered in 1991-92 an on-grounds educational program longer than 181 days but not longer than 233 days. (3) Special education pupils funded under section 53a shall not be funded under this section. Sec. 25. If a pupil is enrolled in an alternative education program operated by an intermediate district or district for middle school or high school pupils, or both, who have been expelled under section 1311 of the revised school code, MCL 380.1311, the intermediate district or district operating the program shall report the enrollment information to the department SUPERINTENDENT and to the district in which the pupil is counted in membership, and the district in which the pupil is counted in membership shall pay to the intermediate district or district operating the program an amount equal to the amount of the foundation allowance received by the district in which the pupil is counted in membership, prorated according to the number of days of the school year ending in the fiscal year the pupil is educated in the alternative education program compared to the number of days of the school year ending in the fiscal year the pupil was actually enrolled in the district in which the pupil is counted in membership. If a district does not make the payment required under this section within 30 days after receipt of the report, the department SUPERINTENDENT shall calculate the amount owed, shall deduct that amount from the remaining state school aid payments to the district for that fiscal year under this act, and shall pay that amount to the intermediate district or district operating the alternative education program. The district in which the pupil is counted in membership and the intermediate district or district operating the alternative education program shall provide to the department SUPERINTENDENT all information the department SUPERINTENDENT requires to enforce this section. Sec. 25a. If a pupil described in section 6(6)(g)(F) enrolls pursuant to section 6(6)(g)(F) during a school year in a district other than the district in which the pupil is counted in membership, the educating district shall report the enrollment information to the department SUPERINTENDENT and to the district in which the pupil is counted in membership, and the district in which the pupil is counted in membership shall pay to the educating district an amount equal to the amount of the foundation allowance received by the district in which the pupil is counted in membership, prorated according to the number of days of the school year ending in the fiscal year the pupil is educated in the educating district compared to the number of days of the school year ending in the fiscal year the pupil was actually enrolled in the district in which the pupil is counted in membership. If a district does not make the payment required under this section within 30 days after receipt of the report, the department SUPERINTENDENT shall calculate the amount owed, shall deduct that amount from the remaining state school aid payments to the district for that fiscal year under this act, and shall pay that amount to the educating district. The district in which the pupil is counted in membership and the educating district shall provide to the department SUPERINTENDENT all information the department SUPERINTENDENT requires to enforce this section. Sec. 26a. From the general fund appropriation in section 11, there is allocated for 1997-98, for 1998-99 AN AMOUNT NOT TO EXCEED $5,100,000.00, and for 1999-2000 an amount not to exceed $6,584,200.00 each fiscal year $7,000,000.00 to reimburse districts, intermediate districts, and the state school aid fund pursuant to section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied in 1997, 1998, and 1999, respectively. This reimbursement shall be made by adjusting payments under section 20 to eligible districts, adjusting payments under section 56, 62, or 81 to eligible intermediate districts, and adjusting the state school aid fund. The adjustments shall be made not later than 60 days after the department of treasury certifies to the department SUPERINTENDENT and to the department of management and budget STATE BUDGET DIRECTOR that the department of treasury has received all necessary information to properly determine the amounts due to each eligible recipient. Sec. 31a. (1) From the state school aid fund money appropriated in section 11, there is allocated for 1997-98 an amount not to exceed $250,000,000.00, for 1998-99 an amount not to exceed $260,000,000.00, and for 1999-2000 an amount not to exceed $269,100,000.00, for payments to eligible districts and eligible public school academies under this section. Subject to subsection (11) (10), the amount of the additional allowance under this section shall be based on the number of actual pupils in membership in the district or public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding state fiscal year, as determined under the national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C.1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766b, 1769, 1769b to 1769c, and 1769f to 1769h, and reported to the department SUPERINTENDENT by October 31 of the immediately preceding fiscal year and adjusted not later than December 31 of the immediately preceding fiscal year. 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, the basis for the additional allowance under this section shall be the number of actual pupils in membership in the public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the current state fiscal year, as determined under the national school lunch act. (2) To be eligible to receive funding under this section, a district or public school academy that has not been previously determined to be eligible shall apply to the department SUPERINTENDENT, in a form and manner prescribed by the department SUPERINTENDENT, and a district or public school academy must meet all of the following: (a) The district's or public school academy's combined state and local revenue per membership pupil in the current state fiscal year, as calculated under section 20, is less than or equal to $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current state fiscal year and $5,000.00. (b) The district or public school academy agrees to use the funding only for purposes allowed under this section and to comply with the program and accountability requirements under this section. (3) Except as otherwise provided in this subsection, an eligible district or eligible public school academy shall receive under this section for each membership pupil in the district or public school academy who met the income eligibility criteria for free breakfast, lunch, or milk, as determined under the national school lunch act and as reported to the department SUPERINTENDENT by October 31 of the immediately preceding fiscal year and adjusted not later than December 31 of the immediately preceding fiscal year, an amount per pupil equal to 11.5% of the district's foundation allowance or public school academy's per pupil allocation under section 20, not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current state fiscal year and $5,000.00, or of the public school academy's per membership pupil allocation under section 20 for the current state fiscal year. 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 under this section for each membership pupil in the public school academy who met the income eligibility criteria for free breakfast, lunch, or milk, as determined under the national school lunch act and as reported to the department SUPERINTENDENT by October 31 of the current fiscal year and adjusted not later than December 31 of the current fiscal year, an amount per pupil equal to 11.5% of the public school academy's per membership pupil allocation under section 20 for the current state fiscal year. (4) 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 or counseling services, for at-risk pupils and for the purposes of subsection (5) or section 31c and shall not use any of that money for administrative costs or to supplant another program or other funds, except for funds allocated to the district or public school academy under this section in the immediately preceding year and already being used by the district or public school academy for at-risk pupils. The instruction or direct noninstructional services provided under this section may be conducted before or after regular school hours or by adding extra school days to the school year and may be conducted using a tutorial method, with paraprofessionals working under the supervision of a certificated teacher. The ratio of pupils to paraprofessionals shall be between 10:1 and 15:1. Only 1 certificated teacher is required to supervise instruction using a tutorial method. As used in this subsection, "to supplant another program" means to take the place of a previously existing instructional program or direct noninstructional services funded from a funding source other than funding under this section. (5) 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 operate the school breakfast program. A district or public school academy that receives funds under this section and that operates a school lunch 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 operate the school lunch program. (6) Each district or public school academy receiving funds under this section shall submit to the department SUPERINTENDENT by July 15 of each fiscal year a report, not to exceed 10 pages, on the usage by the district or public school academy of funds under this section, which report shall include at least a brief description of each program conducted by the district or public school academy using funds under this section, the amount of funds under this section allocated to each of those programs, and the number of at-risk pupils served by each of those programs. If a district or public school academy does not comply with this subsection, the department SUPERINTENDENT 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 forfeited to the school aid fund. (7) In order to receive funds under this section, a district or public school academy shall allow access for the department SUPERINTENDENT or the department's SUPERINTENDENT'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. (8) Subject to subsection (5), any district may use up to 100% of the funds it receives under this section to reduce the ratio of pupils to teachers in grades K-6, or any combination of those grades, in school buildings in which the percentage of pupils described in subsection (1) exceeds the district's aggregate percentage of those pupils. Subject to subsection (5), if a district obtains a waiver from the department SUPERINTENDENT, the district may use up to 100% of the funds it receives under this section to reduce the ratio of pupils to teachers in grades K-6, or any combination of those grades, in school buildings in which the percentage of pupils described in subsection (1) is at least 60% of the district's aggregate percentage of those pupils and at least 30% of the total number of pupils enrolled in the school building. To obtain a waiver, a district must apply to the department SUPERINTENDENT and demonstrate to the satisfaction of the department SUPERINTENDENT that the class size reductions would be in the best interests of the district's at-risk pupils. (9) For 1997-98, a district that is located in a county with a population of more than 350,000 and less than 480,000 and that has more than 10,000 pupils in membership shall expend funds received under this section, other than the amount described in subsection (5), attributable to pupils enrolled in grades K-3 for the purpose of reducing class size in grades K-3 in the district to an average of not more than 17 pupils per class, with not more than 19 pupils in any particular class, in each school building in the district in which pupils described in subsection (1) constitute at least 25% of the total number of pupils in the building. (10) (9) A district or public school academy may use funds received under this section for adult high school completion, general education development (G.E.D.) test preparation, or adult basic education programs described in section 107. (11) (10) If necessary, and before any proration required under section 11, the department SUPERINTENDENT shall prorate payments under this section by reducing the amount of the per pupil payment under this section by a dollar amount calculated by determining the amount by which the amount necessary to fully fund the requirements of this section exceeds the maximum amount allocated under this section and then dividing that amount by the total statewide number of pupils who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding fiscal year, as described in subsection (1). (12) (11) If a district is formed by consolidation after June 1, 1995, and if 1 or more of the original districts was not eligible before the consolidation for an additional allowance under this section, the amount of the additional allowance under this section for the consolidated district shall be based on the number of pupils described in subsection (1) enrolled in the consolidated district who reside in the territory of an original district that was eligible before the consolidation for an additional allowance under this section. (13) (12) Beginning in 1999-2000, a district or public school academy that does not meet the eligibility requirement under subsection (2)(a) is eligible for funding under this section if at least 1/4 of the pupils in membership in the district or public school academy met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding state fiscal year, as determined and reported as described in subsection (1), and at least 4,500 of the pupils in membership in the district or public school academy met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding state fiscal year, as determined and reported as described in subsection (1). A district or public school academy that is eligible for funding under this section for 1999-2000 because the district meets the requirements of this subsection shall receive under this section for each membership pupil in the district or public school academy who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding fiscal year, as determined and reported as described in subsection (1), an amount per pupil equal to 5.75% of the district's foundation allowance or public school academy's per pupil allocation under section 20, not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current state fiscal year and $5,000.00. (14) (13) Beginning in 1999-2000, the total amount allocated under this section for a fiscal year shall be increased from the total amount allocated under this section for the immediately preceding fiscal year by the same percentage as the percentage increase in the amount of the basic foundation allowance under section 20 for that fiscal year from the amount of the basic foundation allowance under section 20 for the immediately preceding fiscal year. (15) (14) As used in this section, "at-risk pupil" means a pupil for whom the district has documentation that the pupil meets at least 2 of the following criteria: is a victim of child abuse or neglect; is below grade level in English language and communication skills or mathematics; is a pregnant teenager or teenage parent; is eligible for a federal free or reduced-price lunch subsidy; has atypical behavior or attendance patterns; or has a family history of school failure, incarceration, or substance abuse. For pupils for whom the results of at least the applicable MEAP test have been received, at-risk pupil also includes a pupil who does not meet the other criteria under this subsection but who did not achieve at least a score of moderate on the most recent MEAP reading test for which results for the pupil have been received, did not achieve at least a score of moderate on the most recent MEAP mathematics test for which results for the pupil have been received, or achieved less than 50% of the objectives on the most recent MEAP science test for which results for the pupil have been received. For pupils in grades K-3, at-risk pupil also includes a pupil who is at risk of not meeting the district's core academic curricular objectives in English language, communication skills, or mathematics. Sec. 31c. (1) From the state school aid fund appropriation in section 11, there is allocated for 1997-98 an amount not to exceed $100,000.00 for planning grants to districts that are awarded pilot program grants under subsections (2) to (8) for 1998-99. An application for a grant under this subsection shall be in the form and manner prescribed by the superintendent of public instruction. The amount of each grant under this subsection shall be in the same proportion to the total allocation under this subsection as the proportion that the amount of the district's grant under subsections (2) to (8) bears to the total allocation under subsection (2). These planning grants shall be distributed not later than April 20, 1998. (2) (1) From the state school aid fund appropriation in section 11, there is allocated for 1998-99 and for 1999-2000 an amount not to exceed $19,750,000.00 each fiscal year for grants to eligible districts for pilot programs to maintain or establish small classes in grades K to 3 in eligible school buildings in the district. (2) To be eligible for a grant under subsection (2), a district must have at least 1 eligible school building and shall apply to the superintendent of public instruction not later than February 1, 1998 in the form and manner prescribed by the superintendent of public instruction. The department shall make applications available for this purpose not later than December 15, 1997. A district shall include in its application a projected budget for maintaining or establishing small classes in grades K to 3 and shall demonstrate in the projected budget that at least $2,000,000.00 or 25% of the funds received by the district under section 31a, whichever is less, will be used to support small classes under this section. The superintendent of public instruction shall approve or disapprove applications and notify the applying district of that decision not later than April 1, 1998. (4) (2) For a school building to be eligible for funding under this section, the school building must operate at least 1 of grades K to 3; the school building must be operated by a district that operates all of grades K to 12 and that receives funds under section 31a; and at least 50% of the actual pupils enrolled in the school building in the immediately preceding fiscal year must have been eligible for free lunch, as determined under the national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766b, 1769, 1769b to 1769c, and 1769f, and reported to the department SUPERINTENDENT not later than October 31 of the immediately preceding fiscal year and adjusted not later than December 31 of the immediately preceding fiscal year. (5) (3) Not more than 25% of the total allocation under subsection (2)(1) may be paid to any 1 particular district. The department SUPERINTENDENT shall make allocations under subsection (2) (1) to at least 12 districts, and the districts shall be geographically diverse. (6)(4) A district receiving funds under subsection (2) (1) shall use the funds to maintain or establish small classes in grades K to 3 in school buildings of the district for which funds are received under this section. The average class size shall be not more than 17 pupils per class, with not more than 19 pupils in any particular class. A district receiving funds under subsection (2) (1) shall use at least $2,000,000.00 or 25% of the funds the district receives EACH YEAR for 1998-99 AND FOR 1999-2000 under section 31a, whichever is less, for the purposes of this section. (7) (5) Funding to districts under this section for 1998-99 is intended to be for the first of 4 years of funding and funding to districts under this section for 1999-2000 is intended to be for the second of 4 years of funding. (8) (6) From the general fund appropriation in section 11, there is allocated to the department for 1998-99 an amount not to exceed $250,000.00 for a study of the effectiveness of small classes in improving pupil performance. NOTWITHSTANDING SECTION 17B, PAYMENTS UNDER THIS SUBSECTION MAY BE MADE PURSUANT TO AN AGREEMENT WITH THE SUPERINTENDENT. The funds allocated under this subsection may be expended after the 1998-99 fiscal year through the end of either the fourth fiscal year of funding under this section or the final fiscal year of funding under this section, whichever occurs earlier. Sec. 36. (1) From the state school aid fund money appropriated in section 11, there is allocated an amount not to exceed $55,000,000.00 for 1997-98, an amount not to exceed $55,000,000.00 EACH FISCAL YEAR for 1998-99, and an amount not to exceed $60,000,000.00 for 1999-2000 for school readiness grants to enable eligible districts, as determined under section 37, to develop or expand, in conjunction with whatever federal funds may be available, including, but not limited to, federal funds under title I of the elementary and secondary education act of 1965, Public Law 89-10, 108 Stat. 3519, chapter 1 of title I of the Hawkins-Stafford elementary and secondary school improvement amendments of 1988, Public Law 89-10, 102 Stat. 140, and the head start act, subchapter B of chapter 8 of subtitle A of title VI of the omnibus budget reconciliation act of 1981, Public Law 97-35, 42 U.S.C. 9831 to 9835, 9836 to 9844, 9846, and 9848 to 9852a, comprehensive compensatory programs designed to improve the readiness and subsequent achievement of educationally disadvantaged children as defined by the department SUPERINTENDENT who will be at least 4, but less than 5 years of age, as of December 1 of the school year in which the programs are offered, and who show evidence of 2 or more risk factors as defined in the state board report entitled "children at risk" that was adopted by the state board on April 5, 1988. A comprehensive compensatory program funded under this section shall include an age-appropriate educational curriculum, nutritional services, health screening for participating children, a plan for parent and legal guardian involvement, and provision of referral services for families eligible for community social services. In addition, from the general fund money appropriated in section 11, there is allocated for 1997-98, AN AMOUNT NOT TO EXCEED $200,000.00 for 1998-99, and AN AMOUNT NOT TO EXCEED $5,200,000.00 for 1999-2000. an amount not to exceed $200,000.00 each fiscal year for the purposes of subsection (2). (2) From the general fund allocation in subsection (1), there is allocated each fiscal year for 1997-98, 1998-99, and FOR 1999-2000 an amount not to exceed $200,000.00 for a competitive grant to continue a longitudinal evaluation of children who have participated in the Michigan school readiness program. (3) A district receiving a grant under this section may contract for the provision of the comprehensive compensatory program OR FULL DAY SCHOOL READINESS PROGRAM and retain for administrative services an amount equal to not more than 5% of the grant amount. (4) FROM THE GENERAL FUND ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED FOR FISCAL YEAR 1999-2000 AN AMOUNT NOT TO EXCEED $5,000,000.00 UNDER THIS SUBSECTION TO EXPAND CURRENT SCHOOL READINESS PROGRAMS TO OPERATE A FULL DAY. THE FUNDS SHALL BE ALLOCATED THROUGH A COMPETITIVE GRANT PROCESS TO ELIGIBLE DISTRICTS THAT RECEIVE FUNDING UNDER SUBSECTION (1) AND TO ELIGIBLE PUBLIC OR NONPROFIT LEGAL ENTITIES OR AGENCIES THAT RECEIVE FUNDING FOR SCHOOL READINESS PROGRAMS UNDER THE DEPARTMENT BUDGET. THE SUPERINTENDENT SHALL DETERMINE THE COMPETITIVE GRANT CRITERIA. (5) A DISTRICT, ENTITY, OR AGENCY RECEIVING FUNDING UNDER SUBSECTION (4) SHALL CONTRIBUTE A LOCAL MATCH, WHICH MAY CONSIST OF IN-KIND SERVICES, TOTALING AT LEAST 50% OF THE ALLOCATION UNDER SUBSECTION (4). (6) AN APPLICATION FOR A GRANT UNDER SUBSECTION (4) SHALL BE IN THE FORM AND MANNER PRESCRIBED BY THE SUPERINTENDENT. THE SUPERINTENDENT SHALL MAKE AVAILABLE THE APPLICATION FORM TO DISTRICTS BY APRIL 30, 1999. THE APPLICATION SHALL INCLUDE A PROGRAM BUDGET THAT STATES ALL SOURCES OF FUNDING TO BE USED FOR THE PROGRAM. APPLICATIONS SHALL BE RECEIVED BY THE SUPERINTENDENT NO LATER THAN MAY 15, 1999. THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE THE APPLICATION AND NOTIFY THE APPLYING DISTRICT, ENTITY, OR AGENCY OF THAT DECISION BY JUNE 15, 1999. BEGINNING IN 2000-01, THE SUPERINTENDENT SHALL MAKE AVAILABLE THE APPLICATION FORM BY DECEMBER 15 OF THE PRECEDING SCHOOL YEAR. APPLICATIONS SHALL BE RECEIVED BY THE SUPERINTENDENT NO LATER THAN FEBRUARY 1 OF THE PRECEDING SCHOOL YEAR. THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE THE APPLICATION AND NOTIFY THE APPLYING DISTRICT, ENTITY, OR AGENCY OF THAT DECISION BY APRIL 1 OF THE PRECEDING SCHOOL YEAR. (7) AS USED IN THIS SECTION, "FULL DAY" MEANS A PROGRAM THAT OFFERS SUPPLEMENTARY DAY CARE AND THEREFORE OFFERS FULL-DAY PROGRAMMING OF AT LEAST TEN HOURS PER DAY AS PART OF ITS SCHOOL READINESS PROGRAM. Sec. 36a. (1) From the general fund appropriation in section 11, there is allocated an amount not to exceed $2,000,000.00 each fiscal year for 1998-99 and for 1999-2000 to the department for grants for community based collaborative prevention services designed to foster positive parenting skills; improve parent/child interaction, especially for children 0-3 years of age; promote access to needed community services; increase local capacity to serve families at risk; improve school readiness; and support healthy family environments that discourage alcohol, tobacco, and other drug use. This appropriation is to fund secondary prevention programs as defined by the children's trust fund for the prevention of child abuse and neglect. (2) The funds allocated under this section shall be distributed through a joint request for proposals process established by the department SUPERINTENDENT in conjunction with the children's trust fund and the state's interagency systems reform workgroup. Projects funded with grants awarded under this section must meet all of the following: (a) Be secondary prevention initiatives and voluntary to consumers. This appropriation is not intended to serve the needs of children for whom and families in which neglect or abuse has been substantiated. (b) Demonstrate that the planned services are part of a community's integrated comprehensive family support strategy endorsed by the local multi-purpose collaborative body. (c) Provide a 25% local match, of which not more than 10% may be in-kind services, unless this requirement is waived by the interagency systems reform workgroup. Sec. 37. (1) A district is eligible for an allocation under section 36 if the district meets all of the requirements in subsections (2),(3), and (4). (2) The district shall submit a preapplication, in a manner and on forms prescribed by the department SUPERINTENDENT, by a date specified by the department SUPERINTENDENT in the immediately preceding state fiscal year. The preapplication shall include a comprehensive needs assessment and community collaboration plan, and shall identify all of the following: (a) The estimated total number of children in the community who meet the criteria of section 36 and how that calculation was made. (b) The estimated number of children in the community who meet the criteria of section 36 and are being served by other early childhood development programs operating in the community, and how that calculation was made. (c) The number of children the district will be able to serve who meet the criteria of section 36, including a verification of physical facility and staff resources capacity. (d) The estimated number of children who meet the criteria of section 36 who will remain unserved after the district and community early childhood programs have met their funded enrollments. The school district shall maintain a waiting list of identified unserved eligible children who would be served when openings are available. (3) The district shall submit a final application for approval, in a manner and on forms prescribed by the department SUPERINTENDENT, by a date specified by the department SUPERINTENDENT. The final application shall indicate all of the following that apply: (a) The district complies with the state board approved standards of quality and curriculum guidelines for early childhood programs for 4-year-olds. (b) The district provides for the active and continuous participation of parents or guardians of the children in the program, and describes the district's participation plan as part of the application. (c) The district only employs for this program the following: (i) Teachers possessing proper training, including, but not limited to, a valid teaching certificate and an early childhood (ZA) endorsement. This provision does not apply to a district that subcontracts with an eligible child development program. In that situation a teacher must have a valid teaching certificate and may have a child development associate credential (CDA) instead of an early childhood (ZA) endorsement. (ii) Paraprofessionals possessing proper training in early childhood development or who have completed at least 1 course in an appropriate training program, including, but not limited to, a child development associate credential (CDA) or associate degree in child development or other similar program, as approved by the department SUPERINTENDENT. (d) The district has submitted for approval a program budget that includes only those costs not reimbursed or reimbursable by federal funding, that are clearly and directly attributable to the early childhood readiness program, and that would not be incurred if the program were not being offered. If children other than those determined to be educationally disadvantaged participate in the program, state reimbursement under section 36 shall be limited to the portion of approved costs attributable to educationally disadvantaged children. (e) The district has established a school readiness advisory committee consisting of, at a minimum, classroom teachers for prekindergarten, kindergarten, and first grade; parents or guardians of program participants; representatives from appropriate community agencies and organizations; the district curriculum director or equivalent administrator; and, if feasible, a school psychologist, school social worker, or school counselor. In addition, there shall be on the committee at least 1 parent or guardian of a program participant for every 18 children enrolled in the program, with a minimum of 2 parent or guardian representatives. The committee shall do all of the following: (i) Ensure the ongoing articulation of the early childhood, kindergarten, and first grade programs offered by the district. (ii) Review the mechanisms and criteria used to determine participation in the early childhood program. (iii) Review the health screening program for all participants. (iv) Review the nutritional services provided to program participants. (v) Review the mechanisms in place for the referral of families to community social service agencies, as appropriate. (vi) Review the collaboration with and the involvement of appropriate community, volunteer, and social service agencies and organizations in addressing all aspects of educational disadvantage. (vii) Review, evaluate, and make recommendations to a local school readiness program or programs for changes to the school readiness program. (f) The district has submitted for departmental SUPERINTENDENT approval a plan to conduct and report annual school readiness program evaluations using criteria approved by the department SUPERINTENDENT. At a minimum, the evaluations shall include assessment of the gains in educational readiness and progress through first grade of children participating in the school readiness program. (g) More than 50% of the children participating in the program meet the income eligibility criteria for free or reduced price lunch, as determined under the national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766b, and 1769 to 1769h, or meet the income and all other eligibility criteria for the family independence agency unified child day care program. (4) A consortium of 2 or more districts shall be eligible for an allocation under section 36 if the districts designate a single fiscal agent for the allocation. A district or intermediate district may administer a consortium described in this subsection. A consortium shall submit a single preapplication and application for the children to be served, regardless of the number of districts participating in the consortium. (5) With the final application, an applicant district shall submit to the department SUPERINTENDENT a resolution adopted by its board certifying the number of 4-year-old children who show evidence of risk factors as described in section 36, who meet the income eligibility criteria for free or reduced price lunch or the income and all other eligibility criteria for the family independence agency unified child day care program, and who will participate in a school readiness program funded under section 36. Sec. 38. The maximum number of prekindergarten children construed to be in need of special readiness assistance under section 36 shall be calculated for each district in the following manner: one-half of the percentage of the district's pupils in grades 1-5 who are eligible for free lunch, as determined by the district's October count in the immediately preceding school year under the national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1769b, and 1769 to 1769h, as reported to the department SUPERINTENDENT not later than December 31 of the immediately preceding fiscal year, shall be multiplied by the average kindergarten enrollment of the district on the pupil membership count day of the 2 immediately preceding years. Sec. 39. (1) The tentative allocation for each fiscal year to each eligible district under section 36 shall be determined by multiplying the number of children determined in section 38 or the number of children the district indicates it will be able to serve under section 37(2)(c), whichever is less, by $3,100.00 and shall be distributed among districts in decreasing order of concentration of eligible children as determined by section 38 until the money allocated in section 36 is distributed. (2) A district that has not less than 50 eligible children shall receive priority over other eligible districts other than those districts funded under subsection (3). (3) A district that received funds under this section in at least 1 of the 2 immediately preceding fiscal years shall receive priority in funding over other eligible districts. However, funding beyond 3 state fiscal years is contingent upon the availability of funds and documented evidence satisfactory to the department SUPERINTENDENT of compliance with all operational, fiscal, administrative, and other program requirements. (4) A district that offers supplementary day care funded by funds other than those received under this section and therefore offers full-day programs as part of its early childhood development program shall receive priority in the allocation of funds under this section over other eligible districts other than those districts funded under subsection (3). (5) For any district with 315 or more eligible pupils, the number of eligible pupils shall be 65% of the number calculated under section 38. However, none of these districts may have less than 315 pupils for purposes of calculating the tentative allocation under section 36. (6) If, taking into account the total amount to be allocated to the district as calculated under this section, a district determines that it is able to include additional eligible children in the school readiness program without additional funds under this section, the district may include additional eligible children but shall not receive additional funding under this section for those children. Sec. 40. The department SUPERINTENDENT biennially shall review alternative methods to determine the number of children construed to be in need of special readiness assistance and shall report not later than November 15 of each even-numbered year its findings and recommendations to the senate and house appropriations subcommittees responsible for district funding and the senate and house committees responsible for education legislation and the STATE BUDGET DIRECTOR department of management and budget. Sec. 41. From the appropriation in section 11, there is allocated an amount not to exceed $4,212,000.00 each fiscal year for 1997-98, for 1998-99, and for 1999-2000 to applicant districts and intermediate districts offering programs of bilingual instruction for pupils of limited English-speaking ability under section 1153 of the revised school code, MCL 380.1153. Reimbursement shall be on a per pupil basis and shall be based on the number of pupils of limited English-speaking ability in membership on the pupil membership count day. Funds allocated under this section shall be used solely for bilingual instruction in speaking, reading, writing, or comprehension of pupils of limited English-speaking ability. Sec. 51a. (1) From the appropriation in section 11, there is allocated $818,786,700.00 for 1997-98 to consist of an amount not to exceed $722,853,300.00 from state sources and $95,933,400.00 in federal funding under sections 611 to 620 of part B of the individuals with disabilities education act, title VI of Public Law 91-230, 20 U.S.C. 1411 to 1420, plus any carryover federal funds from previous year appropriations; there is allocated for 1998-99 an amount not to exceed $760,148,600.00 $763,048,600.00 from state sources and all available federal funding, estimated at $120,000,000.00, plus any carryover federal funds from previous year appropriations; and there is allocated for 1999-2000 an amount not to exceed $818,600,000.00 $821,400,000.00 from state sources and all available federal funding, estimated at $120,000,000.00, plus any carryover federal funds from previous year appropriations. The allocations under this subsection are for the purpose of reimbursing districts and intermediate districts for special education programs, services, and special education personnel as prescribed in article 3 of the revised school code, MCL 380.1701 to 380.1766; net tuition payments made by intermediate districts to the Michigan schools for the deaf and blind; and SPECIAL EDUCATION programs AND SERVICES for pupils who are eligible for special education programs and services according to statute or rule. For meeting the costs of special education programs and services not reimbursed under this article, a district or intermediate district may use money in general funds or special education funds, not otherwise restricted, or contributions from districts to intermediate districts, tuition payments, gifts and contributions from individuals, or federal funds that may be available for this purpose, as determined by the intermediate district plan prepared pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766. (2) From the funds allocated under subsection (1), there is allocated for 1997-98, for 1998-99, and for 1999-2000 the amount necessary, estimated at $620,906,100.00 for 1997-98, $657,239,100.00 $655,061,700.00 for 1998-99, and $714,848,100.00 $714,793,100.00 for 1999-2000, for payments toward reimbursing districts and intermediate districts for 28.6138% of total approved costs of special education, excluding costs reimbursed under section 53a, and 70.4165% of total approved costs of special education transportation. Allocations under this subsection shall be made as follows: (a) The initial amount allocated to a district under this subsection toward fulfilling the specified percentages shall be calculated by multiplying the district's special education pupil membership, excluding pupils described in subsection (13) (12), times the foundation allowance under section 20 of the pupil's district of residence, not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and for the immediately preceding fiscal year and $5,000.00, or, for a special education pupil in membership in a district that is a public school academy or, university school, OR SATELLITE SCHOOL, times an amount equal to the amount per membership pupil calculated under section 20(6). For an intermediate district, the amount allocated under this subdivision toward fulfilling the specified percentages shall be an amount per special education membership pupil, excluding pupils described in subsection (13) (12), and shall be calculated in the same manner as for a district, using the foundation allowance under section 20 of the pupil's district of residence, not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and the immediately preceding fiscal year and $5,000.00. (b) After the allocations under subdivision (a), districts and intermediate districts for which the payments under subdivision (a) do not fulfill the specified percentages shall be paid the amount necessary to achieve the specified percentages for the district or intermediate district. (3) From the funds allocated under subsection (1), there is allocated for 1997-98, for 1998-99, and for 1999-2000 the amount necessary, estimated at $29,224,700.00 for 1997-98, $28,995,600.00 $29,435,000.00 for 1998-99, and $29,400,000.00 $27,455,000.00 for 1999-2000, to make payments to districts and intermediate districts under this subsection. If the amount allocated to a district or intermediate district for 1997-98, 1998-99, or 1999-2000 under subsection (2)(b) is less than the sum of the amounts allocated to the district or intermediate district for 1996-97 under sections 52 and 58, there is allocated to the district or intermediate district for 1997-98, for 1998-99, or for 1999-2000, or all BOTH of them as applicable, an amount equal to that difference, adjusted by applying the same proration factor that was used in the distribution of funds under section 52 in 1996-97 as adjusted to the district's or intermediate district's necessary costs of special education used in calculations for 1997-98, 1998-99, or 1999-2000. This adjustment is to reflect reductions in special education program operations between 1996-97 and 1997-98, 1998-99, or 1999-2000 as applicable. (4) If the department SUPERINTENDENT determines that the sum of the amounts allocated for a fiscal year to a district or intermediate district under subsection (2)(a) and (b) is not sufficient to fulfill the specified percentages in subsection (2), then the shortfall shall be paid to the district or intermediate district during the fiscal year beginning on the October 1 following the determination and payments under subsection (3) shall be adjusted as necessary. If the department SUPERINTENDENT determines that the sum of the amounts allocated for a fiscal year to a district or intermediate district under subsection (2)(a) and (b) exceeds the sum of the amount necessary to fulfill the specified percentages in subsection (2), then the department SUPERINTENDENT shall deduct the amount of the excess from the district's or intermediate district's payments under this act for the fiscal year beginning on the October 1 following the determination and payments under subsection (3) shall be adjusted as necessary. However, if the amount allocated under subsection (2)(a) in itself exceeds the amount necessary to fulfill the specified percentages in subsection (2), there shall be no deduction under this subsection. (5) State funds shall be allocated on a total approved cost basis. Federal funds shall be allocated under applicable federal requirements, except that an amount not to exceed $3,100,000.00 may be allocated by the department for 1997-98, and an amount not to exceed $3,500,000.00 each fiscal year may be allocated by the department SUPERINTENDENT for 1998-99 and for 1999-2000, to districts or intermediate districts on a competitive grant basis for programs, equipment, and services that the department SUPERINTENDENT determines to be designed to benefit or improve special education on a statewide scale. (6) From the amount allocated in subsection (1), there is allocated an amount not to exceed $1,700,000.00 for 1997-98, and an amount not to exceed $2,200,000.00 each fiscal year for 1998-99 and for 1999-2000, to reimburse 100% of the net increase in necessary costs incurred by a district or intermediate district in implementing the revisions in the administrative rules for special education that became effective on July 1, 1987. As used in this subsection, "net increase in necessary costs" means the necessary additional costs incurred solely because of new or revised requirements in the administrative rules minus cost savings permitted in implementing the revised rules. Net increase in necessary costs shall be determined in a manner specified by the department SUPERINTENDENT. (7) For purposes of this article, all of the following apply: (a) "Total approved costs of special education" shall be determined in a manner specified by the department SUPERINTENDENT and may include indirect costs, but shall not exceed 115% of approved direct costs for section 52 and section 53a programs. The total approved costs include salary and other compensation for all approved special education personnel for the program, including payments for social security and medicare and public school employee retirement system contributions. The total approved costs do not include salaries or other compensation paid to administrative personnel who are not special education personnel as defined in section 6 of the revised school code, MCL 380.6. Costs reimbursed by federal funds, other than those federal funds included in the allocation made under this article, are not included. Special education approved personnel not utilized full time in the evaluation of students or in the delivery of special education programs, ancillary, and other related services shall be reimbursed under this section only for that portion of time actually spent providing these programs and services, with the exception of special education programs and services provided to youth placed in child caring institutions or juvenile detention programs approved by the department SUPERINTENDENT to provide an on-grounds education program. (b) Reimbursement for ancillary and other related services, as defined by R 340.1701 of the Michigan administrative code, shall not be provided when those services are covered by and available through private group health insurance carriers or federal reimbursed program sources unless the department SUPERINTENDENT and district or intermediate district agree otherwise and that agreement is approved by the STATE BUDGET DIRECTOR department of management and budget. Expenses, other than the incidental expense of filing, shall not be borne by the parent. In addition, the filing of claims shall not delay the education of a pupil. A district or intermediate district shall be responsible for payment of a deductible amount and for an advance payment required until the time a claim is paid. (8) From the allocation in subsection (1), there is allocated for 1997-98, for 1998-99, and for 1999-2000 an amount not to exceed $15,313,900.00 each fiscal year to intermediate districts. The payment under this subsection to each intermediate district shall be equal to the amount of the 1996-97 allocation to the intermediate district under this FORMER subsection (6). (9) A pupil who is enrolled in a full-time special education program conducted or administered by an intermediate district or a pupil who is enrolled in the Michigan schools for the deaf and blind shall not be included in the membership count of a district, but shall be counted in membership in the intermediate district of residence. (10) Notwithstanding section 6(4), for 1997-98 only, for pupils enrolled in a center program pursuant to an intermediate district plan the department shall use for the February 1997 supplemental count the definition of membership used for the 1997-98 pupil membership count day. (11) (10) Special education personnel transferred from 1 district to another to implement the revised school code shall be entitled to the rights, benefits, and tenure to which the person would otherwise be entitled had that person been employed by the receiving district originally. (12) (11) If a district or intermediate district uses money received under this section for a purpose other than the purpose or purposes for which the money is allocated, the department SUPERINTENDENT may require the district or intermediate district to refund the amount of money received. Money that is refunded shall be deposited in the state treasury to the credit of the state school aid fund. (13) (12) From the funds allocated in subsection (1), there is allocated each fiscal year for 1997-98, for 1998-99, and for 1999-2000 the amount necessary, estimated at $8,370,600.00 for 1997-98, $9,562,000.00 $11,300,000.00 for 1998-99, and $10,000,000.00 $12,000,000.00 for 1999-2000, to pay the foundation allowances for pupils described in this subsection. The allocation to a district under this subsection shall be calculated by multiplying the number of pupils described in this subsection who are counted in membership in the district times the foundation allowance under section 20 of the pupil's district of residence, not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and for the immediately preceding fiscal year and $5,000.00, or, for a pupil described in this subsection who is counted in membership in a district that is a public school academy or, university school, OR SATELLITE SCHOOL, times an amount equal to the amount per membership pupil under section 20(6). The allocation to an intermediate district under this subsection shall be calculated in the same manner as for a district, using the foundation allowance under section 20 of the pupil's district of residence, not to exceed $6,500.00 adjusted by the dollar amount of the difference between the basic foundation allowance under section 20 for the current fiscal year and for the immediately preceding fiscal year and $5,000.00. This subsection applies to all of the following pupils: (a) Pupils described in section 53a. (b) Pupils counted in membership in an intermediate district who are not special education pupils and are served by the intermediate district in a juvenile detention or child caring facility. (c) Emotionally impaired pupils counted in membership by an intermediate district and provided educational services by the department of community health. (14) (13) After payments under subsections (2) and (13) (12), the remaining expenditures from the allocation in subsection (1) shall be made in the following order: (a) 100% of the reimbursement required under section 53a. (b) 100% of the reimbursement required under subsection (6). (c) 100% of the payment required under section 54. (d) 100% of the payment required under subsection (3). (e) 100% of the payment required under subsection (8). (f) 100% of the payments under section 56. Sec. 52. Reimbursement for the necessary costs of special education programs and services shall be a portion determined by the amount allocated under section 51a(1), but not to exceed 75% of the total approved costs of operating special education programs and services approved by the department SUPERINTENDENT and included or applying for inclusion in the intermediate district plan adopted pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766, for special education pupils other than those programs funded under section 53a, and of the costs of summer programs and services and the costs of providing room and board for special education pupils, as approved by the department SUPERINTENDENT. If the state financed proportion of reimbursement of the necessary costs of a special education activity or service required by article 3 of the revised school code, MCL 380.1701 to 380.1766, which is in addition to or different from the special education activities or services required under sections 611 to 620 of part B of the individuals with disabilities education act, title VI of Public Law 91-230, 20 U.S.C. 1411 to 1420, is less than the state financed proportion of the necessary costs of that activity or service in 1978-79, the portion of the amount appropriated shall be increased to reimburse that activity or service accordingly. Sec. 53a. (1) Reimbursement shall be 100% of the total approved costs of operating special education programs and services approved by the department SUPERINTENDENT and included in the intermediate district plan adopted pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766, minus the foundation allowance calculated under section 20, AND, FOR 1998-99 ONLY, MINUS THE PAYMENT CALCULATED UNDER SECTION 20B, for the following special education pupils: (a) Pupils assigned to a district or intermediate district through the community placement program of the courts or a state agency, if the pupil was a resident of another intermediate district at the time the pupil came under the jurisdiction of the court or a state agency. (b) Pupils who are residents of institutions operated by the department of community health. (c) Pupils who are former residents of department of community health institutions for the developmentally disabled who are placed in community settings other than the pupil's home. (d) Pupils who are dependents of foreign diplomats who reside in this state and who are placed in a center program. (e) (D) Pupils enrolled in a department SUPERINTENDENT-approved on-grounds educational program longer than 181 days, but not longer than 233 days, at a residential child care institution, if the child care institution offered in 1991-92 an on-grounds educational program longer than 181 days but not longer than 233 days. (f) (E) Pupils placed in a district by a parent for the purpose of seeking a suitable home, if the parent does not reside in the same intermediate district as the district in which the pupil is placed. (2) Only those costs that are clearly and directly attributable to educational programs for pupils described in subsection (1), and that would not have been incurred if the pupils were not being educated in a district or intermediate district, are reimbursable under this section. (3) The costs of transportation shall be funded under this section but shall not be reimbursed under section 58. (4) Not more than $15,000,000.00 for 1997-98, and not more than $14,500,000.00 each fiscal year for 1998-99 and 1999-2000, of the allocation in section 51a(1) shall be allocated under this section. Sec. 54. In addition to the aid received under section 52, each intermediate district shall receive an amount per pupil for each pupil in attendance at the Michigan schools for the deaf and blind. The amount shall be proportionate to the total instructional cost at each school. Not more than $1,688,000.00 each fiscal year for 1997-98, for 1998-99, and for 1999-2000 of the allocation in section 51a(1) shall be allocated under this section. Sec. 56. (1) For the purposes of this section: (a) "Membership" means for 1997-98 the total membership in 1996-97 of the intermediate district and the districts constituent to the intermediate district; means for 1998-99 the total membership in 1997-98 of the intermediate district and the districts constituent to the intermediate district; and means for 1999-2000 the total membership in 1998-99 of the intermediate district and the districts constituent to the intermediate district. (b) "Millage levied" means the millage levied for special education pursuant to part 30 of the revised school code, MCL 380.1711 to 380.1743, including a levy for debt service obligations. (c) "Taxable value" means the total taxable value of the districts constituent to an intermediate district, except that if a district has elected not to come under part 30 of the revised school code, MCL 380.1711 to 380.1743, membership and taxable value of the district shall not be included in the membership and taxable value of the intermediate district. (2) From the allocation under section 51a(1), there is allocated an amount not to exceed $30,650,000.00 each fiscal year for 1997-98 and $33,550,000.00 for 1998-99 and $33,450,000.00 FOR 1999-2000 to reimburse intermediate districts levying millages for special education pursuant to part 30 of the revised school code, MCL 380.1711 to 380.1743. The purpose, use, and expenditure of the reimbursement shall be limited as if the funds were generated by these millages and governed by the intermediate district plan adopted pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766. As a condition of receiving funds under this section, an intermediate district distributing any portion of special education millage funds to its constituent districts shall submit for departmental SUPERINTENDENT approval and implement a distribution plan that utilizes at least a district's foundation allowance, as calculated under section 20, as a required local contribution. (3) Reimbursement for those millages levied in 1996-97 shall be made in 1997-98 at an amount per 1996-97 membership pupil computed by subtracting from $98,200.00 the 1996-97 taxable value behind each membership pupil, and multiplying the resulting difference by the 1996-97 millage levied. Reimbursement for those millages levied in 1997-98 shall be made in 1998-99 at an amount per 1997-98 membership pupil computed by subtracting from $102,200.00 the 1997-98 taxable value behind each membership pupil, and multiplying the resulting difference by the 1997-98 millage levied. Reimbursement for those millages levied in 1998-99 shall be made in 1999-2000 at an amount per 1998-99 membership pupil computed by subtracting from $106,800.00 the 1998-99 taxable value behind each membership pupil, and multiplying the resulting difference by the 1998-99 millage levied. Sec. 57. (1) From the appropriation in section 11, there is allocated an amount not to exceed $600,000.00 each fiscal year for 1997-98, for 1998-99, and for 1999-2000 to applicant intermediate districts that provide support services for the education of gifted and talented pupils. An intermediate district is entitled to 75% of the actual salary, but not to exceed $25,000.00 reimbursement for an individual salary, of a support services teacher approved by the department SUPERINTENDENT, and not to exceed $4,000.00 reimbursement for expenditures to support program costs, excluding in-county travel and salary, as approved by the department SUPERINTENDENT. (2) From the appropriation in section 11, there is allocated an amount not to exceed $400,000.00 each fiscal year for 1997-98, for 1998-99, and for 1999-2000 to support part of the cost of summer institutes for gifted and talented students. This amount shall be contracted to applicant intermediate districts in cooperation with a local institution of higher education and shall be coordinated by the department SUPERINTENDENT. (3) From the appropriation in section 11, there is allocated an amount not to exceed $4,000,000.00 each fiscal year for 1997-98, for 1998-99, and for 1999-2000 for the development and operation of comprehensive programs for gifted and talented pupils. An eligible district or consortium of districts shall receive an amount not to exceed $50.00 per K-12 pupil for up to 5% of the district's or consortium's K-12 membership for the immediately preceding fiscal year with a minimum total grant of $3,000.00. Funding shall be provided in the following order: the per pupil allotment, and then the minimum total grant of $3,000.00 to individual districts. An intermediate district may act as the fiscal agent for a consortium of districts. In order to be eligible for funding under this subsection, the district or consortium of districts shall submit each year a current 3-year plan for operating a comprehensive program for gifted and talented pupils and the district or consortium shall demonstrate to the department SUPERINTENDENT that the district or consortium will contribute matching funds of at least $50.00 per K-12 pupil. The plan or revised plan shall be developed in accordance with criteria established by the department SUPERINTENDENT and shall be submitted to the department SUPERINTENDENT for approval. Within the criteria, the department SUPERINTENDENT shall encourage the development of consortia among districts of less than 5,000 memberships. Sec. 61a. (1) From the appropriation in section 11, there is allocated an amount not to exceed $31,027,600.00 each fiscal year for 1997-98, for 1998-99, and for 1999-2000 to reimburse on an added cost basis districts, except for a district that served as the fiscal agent for a vocational education consortium in the 1993-94 school year, and secondary area vocational-technical education centers for secondary-level vocational-technical education programs, including parenthood education programs, according to state board rules APPROVED BY THE SUPERINTENDENT. Applications for participation in the programs shall be submitted in the form prescribed by the department SUPERINTENDENT. The department SUPERINTENDENT shall determine the added cost for each vocational-technical program area. The allocation of added cost funds shall be based on the type of vocational-technical programs provided, the number of pupils enrolled, and the length of the training period provided, and shall not exceed 75% of the added cost of any program. With the approval of the department SUPERINTENDENT, the board of a district maintaining a secondary vocational-technical education program may offer the program for the period from the close of the school year until September 1. The program shall use existing facilities and shall be operated as prescribed by rules promulgated by the state board SUPERINTENDENT. (2) Except for a district that served as the fiscal agent for a vocational education consortium in the 1993-94 school year, districts and intermediate districts shall be reimbursed for local vocational administration, shared time vocational administration, and career education planning district vocational-technical administration. The definition of what constitutes administration and reimbursement shall be pursuant to guidelines adopted by the state board SUPERINTENDENT. Not more than $800,000.00 of the allocation in subsection (1) shall be distributed under this subsection. (3) From the allocation in subsection (1), there is allocated an amount not to exceed $400,000.00 each fiscal year to intermediate districts with constituent districts that had combined state and local revenue per membership pupil in the 1994-95 state fiscal year of $6,500.00 or more, served as a fiscal agent for a state board designated area vocational education center in the 1993-94 school year, and had an adjustment made to their 1994-95 combined state and local revenue per membership pupil pursuant to section 20d. The payment under this subsection to the intermediate district shall equal the amount of the allocation to the intermediate district for 1996-97 under this subsection. Sec. 62. (1) For the purposes of this section: (a) "Membership" means for 1997-98 the total membership in 1996-97 of the intermediate district and the districts constituent to the intermediate district or the total membership in 1996-97 of the area vocational-technical education program; means for 1998-99 the total membership in 1997-98 of the intermediate district and the districts constituent to the intermediate district or the total membership in 1997-98 of the area vocational-technical program; and means for 1999-2000 the total membership in 1998-99 of the intermediate district and the districts constituent to the intermediate district or the total membership in 1998-99 of the area vocational-technical program. (b) "Millage levied" means the millage levied for area vocational-technical education pursuant to sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, including a levy for debt service obligations incurred as the result of borrowing for capital outlay projects and in meeting capital projects fund requirements of area vocational-technical education. (c) "Taxable value" means the total taxable value of the districts constituent to an intermediate district or area vocational-technical education program, except that if a district has elected not to come under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, the membership and taxable value of that district shall not be included in the membership and taxable value of the intermediate district. However, beginning in 1998-99, the membership and taxable value of a district that has elected not to come under sections 681 to 690 of the revised school code shall be included in the membership and taxable value of the intermediate district if the district meets both of the following: (i) The district operates the area vocational-technical education program pursuant to a contract with the intermediate district. (ii) The district contributes an annual amount to the operation of the program that is commensurate with the revenue that would have been raised for operation of the program if millage were levied in the district for the program under sections 681 to 690 of the revised school code, MCL 380.681 to 380.690. (2) From the appropriation in section 11, there is allocated an amount not to exceed $7,200,000.00 for 1997-98 and an amount not to exceed $8,550,000.00 $10,250,000.00 each fiscal year for 1998-99 and $10,150,000.00 for 1999-2000 to reimburse intermediate districts and area vocational-technical education programs established under section 690(3) of the revised school code, MCL 380.690, levying millages for area vocational-technical education pursuant to sections 681 to 690 of the revised school code, MCL 380.681 to 380.690. The purpose, use, and expenditure of the reimbursement shall be limited as if the funds were generated by those millages. (3) Reimbursement for the millages levied in 1996-97 shall be made in 1997-98 at an amount per 1996-97 membership pupil computed by subtracting from $98,700.00 the 1996-97 taxable value behind each membership pupil, and multiplying the resulting difference by the 1996-97 millage levied. Reimbursement for the millages levied in 1997-98 shall be made in 1998-99 at an amount per 1997-98 membership pupil computed by subtracting from $104,400.00 the 1997-98 taxable value behind each membership pupil, and multiplying the resulting difference by the 1997-98 millage levied. Reimbursement for the millages levied in 1998-99 shall be made in 1999-2000 at an amount per 1998-99 membership pupil computed by subtracting from $108,800.00 the 1998-99 taxable value behind each membership pupil, and multiplying the resulting difference by the 1998-99 millage levied. Sec. 63. (1) From the appropriation in section 11, there is allocated an amount not to exceed $1,800,000.00 for 1999-2000 for implementation of the Michigan manufacturing technology program for the 1999-2000 school year as provided under this section. (2) From the allocation in subsection (1), there is allocated $1,800,000.00 to the department, in conjunction with the Michigan jobs commission DEPARTMENT OF CAREER DEVELOPMENT, to award competitive grants for the purpose of improving manufacturing technology programs offered by public education agencies. The maximum amount of a grant under this subsection shall not exceed $50,000.00 for each public education agency determined to be eligible for funding. (3) Applications for grants under subsection (2) shall be submitted in a form and manner determined by the department SUPERINTENDENT, in conjunction with the Michigan jobs commission DEPARTMENT OF CAREER DEVELOPMENT. Criteria for funding shall include all of the following: (a) The public education agency operates a manufacturing technology program, is a participating agency in a regional career preparation plan described in section 68, and has the support of the local workforce development board for submission of the grant application. (b) The public education agency offers employer-provided instruction for its pupils as part of its manufacturing technology curriculum. (c) The public education agency agrees to evaluate the impact of the grant. (d) Any other criteria determined by the department SUPERINTENDENT, in conjunction with the Michigan jobs commission DEPARTMENT OF CAREER DEVELOPMENT. (4) Grants awarded under subsection (2) shall be used by eligible public education agencies for activities intended to increase the amount of employer-provided instruction provided to pupils and to increase pupil awareness of manufacturing technology programs. (5) The department SUPERINTENDENT, in conjunction with the Michigan jobs commission DEPARTMENT OF CAREER DEVELOPMENT, shall consider the potential for graduates to be placed in high-wage, high-demand positions upon completion of the manufacturing technology program in its determination of grant awards. (6) Grants under subsection (2) shall be awarded by the department SUPERINTENDENT no later than April 30, 2000 MAY 31, 1999 and paid out to the grant recipients in total no later than May 20, 2000 OCTOBER 1, 1999. Funds may be used by grant recipients to support allowable expenditures in the following school year. Sec. 67. (1) From the general fund appropriation in section 11, there is allocated an amount not to exceed $1,300,000.00 for 1997-98 and an amount not to exceed $350,000.00 EACH FISCAL YEAR for 1998-99 AND FOR 1999-2000 for Michigan career preparation system grants under this section. (2) From the amount allocated under subsection (1) for 1997-98, $1,150,000.00 shall be allocated by the department in equal payments on October 20, 1997 and on February 20, 1998, to local workforce development boards solely for the use of their education advisory groups, as described in section 68. Payments under this subsection to local workforce development boards shall be used for the purposes of developing regional career preparation plans described in section 68. (3) (2) From the allocation in subsection (1), there is allocated $50,000.00 for 1997-98 and $150,000.00 EACH FISCAL YEAR for 1998-99 AND FOR 1999-2000 to the council for career preparation standards to identify uniform career competency standards and assessments for career clusters, to establish a statewide information system on current and anticipated employment opportunities and the required level of skills and education required for employment, and for any other council functions. (4) (3) From the allocation in subsection (1) for 1998-99, there is allocated $100,000.00 EACH FISCAL YEAR for 1998-99 AND FOR 1999-2000 to the council for career preparation standards to provide information to parents, pupils, school personnel, employers, and others regarding opportunities to receive integrated academic and technical preparation in the public schools of this state. (5) From the appropriation in subsection (1) for 1997-98, there is allocated $100,000.00 for 1997-98 to the department to establish guidelines for education advisory groups and regional career preparation plans and to provide technical assistance to local workforce development boards and education advisory groups, in collaboration with the Michigan jobs commission. The department shall distribute the guidelines to education agencies and to all local workforce development boards. (6) (4) From the allocation in subsection (1) for 1998-99, there is allocated $100,000.00 for 1998-99 to the department OF CAREER DEVELOPMENT to establish peer review criteria, procedures, and standards and to provide technical assistance to local peer review committees created under section 68(4), AND TO THE COUNCIL FOR CAREER PREPARATION STANDARDS. in collaboration with the Michigan jobs commission. (5) FROM THE ALLOCATION IN SUBSECTION (1) THERE IS ALLOCATED $100,000.00 FOR 1999-2000 TO THE DEPARTMENT OF CAREER DEVELOPMENT TO PROVIDE TECHNICAL ASSISTANCE TO ELIGIBLE EDUCATION AGENCIES, LOCAL WORKFORCE DEVELOPMENT BOARDS, AND THE COUNCIL FOR CAREER PREPARATION STANDARDS. (7) (6) As used in this section and in section 68: (a) "Advanced career academy" means a career preparation program operated by a district, by an intermediate district, or by a public school academy, that applies for and receives advanced career academy designation from the department SUPERINTENDENT. To receive this designation, a career preparation program shall meet criteria established by the department SUPERINTENDENT, in collaboration with the Michigan jobs commission DEPARTMENT OF CAREER DEVELOPMENT, which criteria shall include at least all of the following: (i) Satisfactory completion of a peer review process. (ii) Operation of programs for those career clusters identified by the council for career preparation standards as being eligible for advanced career academy status. (iii) Involvement of employers in the design and implementation of career preparation programs. (iv) A fully integrated program of academic and technical education available to pupils. (v) Demonstration of an established career preparation system resulting in industry-validated career ladders for graduates of the program, including, but not limited to, written articulation agreements with postsecondary institutions to allow pupils to receive advanced college placement and credit or federally registered apprenticeships, as applicable. (b) "Career cluster" means a grouping of occupations from 1 or more industries that share common skill requirements. (c) "Career preparation system" is a system of programs and strategies providing pupils with opportunities to prepare for success in careers of their choice. (d) "Eligible education agency" means a district, intermediate district, or advanced career academy that provides career preparation programs either directly or under a contract with a postsecondary institution or an employer as part of an approved regional career preparation plan. (e) "FTE" means full-time equivalent pupil as determined by the department SUPERINTENDENT. (f) "Workforce development board" means a local workforce development board established pursuant to the job training partnership act, Public Law 97-300, 96 Stat. 1322, and the school-to-work opportunities act of 1994, Public Law 103-239, 108 Stat. 568, or the equivalent. Sec. 68. (1) From the general fund appropriation in section 11, there is allocated an amount not to exceed $23,850,000.00 each fiscal year for 1998-99 and for 1999-2000 to be used to implement the Michigan career preparation system in the 1998-99 and 1999-2000 school years as provided under this section. From this allocation, the department SUPERINTENDENT may reserve an amount not to exceed $2,000,000.00 each fiscal year for career preparation programs that have achieved designation as an advanced career academy. In order to receive funds under this section, an eligible education agency shall be part of an approved regional career preparation plan under subsection (2) and shall agree to expend the funds required under this section in accordance with the regional career preparation plan. Funds awarded under this section that are not expended in accordance with this section may be recovered by the department SUPERINTENDENT. (2) In order to receive funding under this section, an eligible education agency shall be a part of an approved 3-year regional career preparation plan as described in this subsection. All of the following apply to a regional career preparation plan: (a) A 3-year regional career preparation plan shall be developed under subdivisions (b), (c), and (d) for all public education agencies providing career preparation programs as part of a regional career preparation system within the geographical boundaries of a local workforce development board, and revised annually. If an intermediate district is located within the geographical boundaries of more than 1 local workforce development board, the board of the intermediate district shall choose 1 local workforce development board with which to align and shall notify the department of this choice not later than October 31, 1997. (b) The regional career preparation plan shall be developed by representatives of the education advisory group of each local workforce development board in accordance with guidelines developed under section 67(5), and in accordance with subdivisions (d) and (e). All of the following shall be represented on each education advisory group: workforce development board members, other employers, labor, local school districts, intermediate school districts, postsecondary institutions, career/technical educators, parents of public school pupils, and academic educators. The representatives of local school districts, intermediate school districts, and postsecondary institutions appointed to the education advisory group by the local workforce development board shall be individuals designated by the board of the school district, intermediate school district, or postsecondary institution. (c) By majority vote, the education advisory group may nominate 1 education representative, who may or may not be a member of the education advisory group, for appointment to the local workforce development board. This education representative shall be in addition to existing education representation on the local workforce development board. This education representative shall meet all local workforce development board membership requirements. (d) The components of the regional career preparation plan shall include, but are not limited to, all of the following: (i) The roles of districts, intermediate districts, advanced career academies, postsecondary institutions, employers, labor representatives, and others in the career preparation system. (ii) Programs to be offered, including at least career exploration activities, for middle school pupils. (iii) Identification of integrated academic and technical curriculum, including related professional development training for teachers. (iv) Identification of work-based learning opportunities for pupils and for teachers and other school personnel. (v) Identification of testing and assessments that will be used to measure pupil achievement. (vi) Identification of all federal, state, local, and private sources of funding available for career preparation programs in the region. (e) The education advisory group shall develop a 3-year regional career preparation plan and submit the plan to the department SUPERINTENDENT for final approval. The submission to the department SUPERINTENDENT shall also include statements signed by the chair of the education advisory group and the chair of the local workforce development board certifying that the plan has been reviewed by each entity. Upon department SUPERINTENDENT approval, all eligible education agencies designated in the regional career preparation plan as part of the career preparation delivery system are eligible for funding under this section. (3) Funding under this section shall be distributed to eligible education agencies by the department SUPERINTENDENT for allowable costs defined in this subsection and identified as necessary costs for implementing a regional career preparation plan, as follows: (a) The department SUPERINTENDENT shall rank all career clusters, including career exploration, guidance, and counseling. Rank determination will be based on median salary data in career clusters and employment opportunity data provided by the council for career preparation standards. In addition, rank determination shall be based on placement data available for prior year graduates of the programs in the career clusters either in related careers or postsecondary education. The procedure for ranking of career clusters shall be determined by the department SUPERINTENDENT. (b) Allowable costs to be funded under this section shall be determined by the department SUPERINTENDENT. Budgets submitted by eligible education agencies to the department SUPERINTENDENT in order to receive funding shall identify funds and in-kind contributions from the regional career education plan, excluding funds or in-kind contributions available as a result of funding received under section 61a, equal to at least 100% of anticipated funding under this section. Eligible categories of allowable costs are the following: (i) Career exploration, guidance, and counseling. (ii) Curriculum development, including integration of academic and technical content, and professional development for teachers directly related to career preparation. (iii) Technology and equipment determined to be necessary. (iv) Supplies and materials directly related to career preparation programs. (v) Work-based learning expenses for pupils, teachers, and counselors. (vi) Evaluation, including career competency testing and peer review. (vii) Career placement services. (viii) Student leadership organizations integral to the career preparation system. (ix) Up to 10% of the allocation to an eligible education agency may be expended for planning, coordination, direct oversight, and accountability for the career preparation system. (c) The department SUPERINTENDENT shall calculate career preparation costs per FTE for each career cluster, including career exploration, guidance, and counseling, by dividing the allowable costs for each career cluster by the prior year FTE enrollment for each career cluster. Distribution to eligible education agencies shall be the product of 50% of career preparation costs per FTE times the current year FTE enrollment of each career cluster. This allocation shall be distributed to eligible education agencies in decreasing order of the career cluster ranking described in subdivision (a) until the money allocated for grant recipients in this section is distributed. However, beginning in 1999-2000, an individual career preparation program shall not be funded under this section, regardless of career cluster ranking, if it does not attain compliance with career competency standards set by the council for career preparation standards for the particular career cluster. (4) The department SUPERINTENDENT, in collaboration with the Michigan jobs commission DEPARTMENT OF CAREER DEVELOPMENT, shall establish a review procedure for assessing the career preparation system in each region. Each local workforce development board shall establish regional peer review committees that include employers, educators, labor representatives, parents, and representatives of the local workforce development board nominated by the local workforce development board and the education advisory group. All of the following apply to peer review committees: (a) Peer review committees are responsible for assuring the quality of the career preparation system. A peer review committee shall review career preparation programs to ensure compliance with career competency standards as well as other program evaluation criteria. (b) A peer review committee shall report its findings and recommendations for changes to the eligible education agency operating the career preparation program, the local workforce development board, the education advisory group responsible for revising the regional career preparation plan, and the department SUPERINTENDENT. (c) The next revision of a regional career preparation plan shall take into account the findings of a peer review committee in order for the affected education agencies to receive continued funding under this section. Sec. 74. (1) From the amount appropriated in section 11, there is allocated an amount not to exceed $1,625,000.00 each fiscal year for 1997-98, for 1998-99, and for 1999-2000 for the purposes of subsections (2) and (3). (2) From the allocation in subsection (1), there is allocated each fiscal year the amount necessary for payments to state supported colleges or universities and intermediate districts providing school bus driver safety instruction or driver skills road tests pursuant to section 51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The payments shall be in an amount determined by the department SUPERINTENDENT not to exceed 75% of the actual cost of instruction and driver compensation for each public or nonpublic school bus driver attending a course of instruction. For the purpose of computing compensation, the hourly rate allowed each school bus driver shall not exceed the hourly rate received for driving a school bus. Reimbursement compensating the driver during the course of instruction or driver skills road tests shall be made by the department SUPERINTENDENT to the college or university or intermediate district providing the course of instruction. (3) From the allocation in subsection (1), there is allocated each fiscal year the amount necessary to pay the reasonable costs of nonspecial education auxiliary services transportation provided pursuant to section 1323 of the revised school code, MCL 380.1323. Districts funded under this subsection shall not receive funding under any other section of this act for nonspecial education auxiliary services transportation. Sec. 81. (1) Except as otherwise provided in this section, from the appropriation in section 11, there is allocated each fiscal year for 1997-98, for 1998-99, and for 1999-2000 to the intermediate districts the sum necessary, but not to exceed $81,266,700.00 for 1997-98, not to exceed $79,912,000.00 $79,850,000.00 for 1998-99, and not to exceed $82,644,800.00 for 1999-2000, to provide state aid to intermediate districts under this section. Except as otherwise provided in this section, there shall be allocated to each intermediate district each fiscal year for 1997-98 and for 1998-99 an amount equal to 102.9% of the sum of the amount of funding actually received by the intermediate district under this subsection in 1996-97 and the amount of funding actually received by the intermediate district under former section 11b as in effect for 1995-96. 1997-98. Except as otherwise provided in this section, there shall be allocated to each intermediate district for 1999-2000 an amount equal to 103.5% of the amount of funding actually received by the intermediate district under this subsection for 1998-99. Funding provided under this section shall be used to comply with requirements of this act and the revised school code that are applicable to intermediate districts, and for which funding is not provided elsewhere in this act, and to provide technical assistance to districts as authorized by the intermediate school board. (2) From the allocation in subsection (1), there is allocated to an intermediate district, formed by the consolidation or annexation of 2 or more intermediate districts or the attachment of a total intermediate district to another intermediate school district or the annexation of all of the constituent K-12 districts of a previously existing intermediate school district which has disorganized, an additional allotment of $3,500.00 each fiscal year for each intermediate district included in the new intermediate district for 3 years following consolidation, annexation, or attachment. (3) If an intermediate district participated in 1993-94 in a consortium operating a regional educational media center under section 671 of the revised school code, MCL 380.671, and rules promulgated by the state board SUPERINTENDENT, and if the intermediate district obtains written consent from each of the other intermediate districts that participated in the consortium in 1993-94, the intermediate district may notify the department SUPERINTENDENT not later than December 30, 1998 OF THE CURRENT FISCAL YEAR that it is electing to directly receive its payment attributable to participation in that consortium. An intermediate district making that election, and that has obtained the necessary consent, shall receive each fiscal year for 1997-98, for 1998-99, and for 1999-2000, AS APPLICABLE, for each pupil in membership in the intermediate district or a constituent district an amount equal to the quotient of the 1993-94 allocation to the fiscal agent for that consortium under former section 83, adjusted as determined by the department SUPERINTENDENT to account for that election, divided by the combined total membership for the current fiscal year in all of the intermediate districts that participated in that consortium and their constituent districts. The amount allocated to an intermediate district under this subsection for a fiscal year shall be deducted from the total allocation for that fiscal year under this section to the intermediate district that was the 1993-94 fiscal agent for the consortium. (4) During a fiscal year, the department SUPERINTENDENT shall not increase an intermediate district's allocation under subsection (1) because of an adjustment made by the department SUPERINTENDENT during the fiscal year in the intermediate district's taxable value for a prior year. Instead, the department SUPERINTENDENT shall report the adjustment and the estimated amount of the increase to the house and senate fiscal agencies AND THE STATE BUDGET DIRECTOR not later than June 1 of the fiscal year, and the legislature shall appropriate money for the adjustment in the next succeeding fiscal year. Accordingly, from the allocation in subsection (1) APPROPRIATION IN SECTION 11, there is allocated for 1998-99 only an amount not to exceed $62,000.00 $362,000.00 AND FOR 1999-2000 ONLY AN AMOUNT NOT TO EXCEED $300,000.00 for payments to intermediate districts for adjustments in taxable value described in this subsection. (5) In order to receive funding under this section, an intermediate district shall demonstrate to the satisfaction of the department SUPERINTENDENT that the intermediate district employs at least 1 person who is trained in pupil counting procedures, rules, and regulations. Sec. 91b. If a district allows a nonresident pupil described in section 6(4)(k) to enroll in the district, the district shall continue to allow that pupil to enroll in the district until the pupil graduates from high school. Sec. 94. From the general fund money appropriated in section 11, there is allocated to the department for 1997-98, for 1998-99, and for 1999-2000 an amount not to exceed $1,500,000.00 each fiscal year to provide technical assistance to districts for school accreditation purposes as described in section 1280 of the revised school code, MCL 380.1280. Sec. 99. (1) From the state school aid fund appropriation in section 11, there is allocated an amount not to exceed $7,293,100.00 each fiscal year for 1997-98, for 1998-99, and for 1999-2000 and from the general fund appropriation in section 11 there is allocated an amount not to exceed $400,000.00 each fiscal year for 1997-98, for 1998-99, and for 1999-2000, for implementing the comprehensive master plan for mathematics and science centers developed by the department and approved by the state board on February 17, 1993. (2) Within a service area designated locally, approved by the department SUPERINTENDENT, and consistent with the master plan described in subsection (1), an established mathematics and science center shall address 2 or more of the following 6 basic services, as described in the master plan, to constituent districts and communities: leadership, pupil services, curriculum support, community involvement, professional development, and resource clearinghouse services. (3) The department SUPERINTENDENT shall not award a grant under this section to more than 1 mathematics and science center located in a particular intermediate district unless each of the grants serves a distinct target population or provides a service that does not duplicate another program in the intermediate district. (4) As part of the technical assistance process, the department SUPERINTENDENT shall provide minimum standard guidelines that may be used by the mathematics and science center for providing fair access for qualified pupils and professional staff as prescribed in this section. (5) Allocations under this section to support the activities and programs of mathematics and science centers shall be continuing support grants to all 25 established mathematics and science centers and the 8 satellite extensions that were funded in 1996-97. Each established mathematics and science center that was funded in 1996-97 shall receive an amount equal to 103% of the amount it received under this section in 1996-97. (6) In order to receive funds under this section, a grant recipient shall allow access for the department SUPERINTENDENT or the department's SUPERINTENDENT'S designee to audit all records related to the program for which it receives such funds. The grant recipient shall reimburse the state for all disallowances found in the audit. Sec. 101. (1) To be eligible to receive state aid under this act, not later than the fifth Wednesday after the pupil membership count day and not later than the fifth Wednesday after the supplemental count day, each district superintendent through the secretary of the district's board shall file with the intermediate superintendent a certified and sworn copy of the number of pupils enrolled and in regular daily attendance in the district as of the pupil membership count day and as of the supplemental count day, as applicable, for the current school year. In addition, a district maintaining school during the entire year, as provided under section 1561 of the revised school code, MCL 380.1561, shall file with the intermediate superintendent a certified and sworn copy of the number of pupils enrolled and in regular daily attendance in the district for the current school year pursuant to rules promulgated by the state board SUPERINTENDENT. Not later than the seventh Wednesday after the pupil membership count day and not later than the seventh Wednesday after the supplemental count day, the intermediate district shall transmit to the department SUPERINTENDENT the data filed by each of its constituent districts. If a district fails to file the sworn and certified copy with the intermediate superintendent in a timely manner, as required under this subsection, the intermediate district shall notify the department SUPERINTENDENT and state aid due to be distributed under this act shall be withheld from the defaulting district immediately, beginning with the next payment after the failure and continuing with each payment until the district complies with this subsection. If an intermediate district fails to transmit the data in its possession in a timely and accurate manner to the department SUPERINTENDENT, as required under this subsection, state aid due to be distributed under this act shall be withheld from the defaulting intermediate district immediately, beginning with the next payment after the failure and continuing with each payment until the intermediate district complies with this subsection. If a district or intermediate district does not comply with this subsection by the end of the fiscal year, the district or intermediate district forfeits the amount withheld. A person who willfully falsifies a figure or statement in the certified and sworn copy of enrollment shall be punished in the manner prescribed by section 161. (2) To be eligible to receive state aid under this act, not later than the twenty-fourth Wednesday after the pupil membership count day and not later than the twenty-fourth Wednesday after the supplemental count day, an intermediate district shall submit to the department SUPERINTENDENT, in a form and manner prescribed by the department SUPERINTENDENT, the audited enrollment and attendance data for the pupils of its constituent districts and of the intermediate district. If an intermediate district fails to transmit the audited data as required under this subsection, state aid due to be distributed under this act shall be withheld from the defaulting intermediate district immediately, beginning with the next payment after the failure and continuing with each payment until the intermediate district complies with this subsection. If an intermediate district does not comply with this subsection by the end of the fiscal year, the intermediate district forfeits the amount withheld. (3) Each district shall provide the required minimum number of days and hours of pupil instruction under section 1284 of the revised school code, MCL 380.1284. Except as otherwise provided in this act, a district failing to hold the required minimum number of days of pupil instruction shall forfeit from its total state aid allocation for each day of failure an amount determined by applying a ratio of the number of days the district was in noncompliance in relation to the required minimum number of days. Except as otherwise provided in this act, a district failing to comply with the required minimum hours of pupil instruction shall forfeit from its total state aid allocation an amount determined by applying a ratio of the time duration the district was in noncompliance in relation to the required minimum number of hours. A district failing to meet both the minimum number of days of pupil instruction requirement and the minimum number of hours of pupil instruction requirement shall be penalized only the higher of the 2 amounts calculated under the forfeiture provisions of this subsection. Not later than August 1, the board of each district shall certify to the department SUPERINTENDENT the number of days and hours of pupil instruction in the previous school year. If the district did not hold at least 180 THE REQUIRED MINIMUM NUMBER OF days and the required minimum number of hours of pupil instruction, the deduction of state aid shall be made in the following fiscal year from the first payment of state school aid. A district is not subject to forfeiture of funds under this subsection for a fiscal year in which a forfeiture was already imposed under subsection (7). Days lost because of strikes or teachers' conferences shall not be counted as days of pupil instruction. A district not having at least 75% of the district's membership in attendance on any day of pupil instruction shall receive state aid in that proportion of 1 divided by the required minimum number of days of pupil instruction that the actual percent of attendance bears to the specified percentage. The state board SUPERINTENDENT shall promulgate rules for the implementation of this subsection. (4) The first 2 days for which pupil instruction is not provided because of conditions not within the control of school authorities, such as severe storms, fires, epidemics, or health conditions as defined by the city, county, or state health authorities, shall be counted as days of pupil instruction. In addition, for 1997-98 only, the department may count as days of pupil instruction up to 6 additional days for which pupil instruction is not provided in a district after May 28, 1998 because damage or electrical outages resulting from severe storms prevented the district from providing instruction and up to 2 additional days for which pupil instruction is not provided in a district after June 3, 1998 because a bomb threat prevented the district from providing instruction. Subsequent such days shall not be counted as days of pupil instruction. (5) A district shall not forfeit part of its state aid appropriation because it adopts or has in existence an alternative scheduling program for pupils in kindergarten if the program provides at least the number of hours required for a full-time equated membership for a pupil in kindergarten as provided under section 6(4). (6) Upon application by the district for a particular fiscal year, the state board SUPERINTENDENT may waive the minimum number of days of pupil instruction requirement of subsection (3) for a district if the district has adopted an experimental school year schedule in 1 or more buildings in the district if the experimental school year schedule provides the required minimum number or more hours of pupil instruction and is consistent with all state board policies on school improvement and restructuring. If a district applies for and receives a waiver under this subsection and complies with the terms of the waiver, for the fiscal year covered by the waiver the district is not subject to forfeiture under this section of part of its state aid allocation for the specific building or program covered by the waiver. (7) Not later than April 15 of each fiscal year, the board of each district shall certify to the department SUPERINTENDENT the planned number of days and hours of pupil instruction in the district for the school year ending in the fiscal year. In addition to any other penalty or forfeiture under this section, if at any time the department SUPERINTENDENT determines that 1 or more of the following has occurred in a district, the district shall forfeit in the current fiscal year beginning in the next payment to be calculated by the department SUPERINTENDENT a proportion of the funds due to the district under this act that is equal to the proportion below the required minimum number of days and hours of pupil instruction, as specified in the following: (a) The district fails to operate its schools for at least the required minimum number of days and hours of pupil instruction in a school year, including days counted under subsection (4). (b) The board of the district takes formal action not to operate its schools for at least the required minimum number of days and hours of pupil instruction in a school year, including days counted under subsection (4). (8) In providing the minimum number of hours of pupil instruction required under section 1284 of the revised school code, MCL 380.1284, a district shall use the following guidelines, and a district shall maintain records to substantiate its compliance with the following guidelines: (a) Except as otherwise provided in this subsection, a pupil must be scheduled for at least the required minimum number of hours of instruction, excluding study halls, or at least the sum of 90 hours plus the required minimum number of hours of instruction, including up to 2 study halls. (b) The time a pupil is assigned to any tutorial activity in a block schedule may be considered instructional time, unless that time is determined in an audit to be a study hall period. (c) A pupil in grades 9 to 12 for whom a reduced schedule is determined to be in the individual pupil's best educational interest must be scheduled for a number of hours equal to at least 80% of the required minimum number of hours of pupil instruction to be considered a full-time equivalent pupil. (d) If a pupil in grades 9 to 12 who is enrolled in a cooperative education program or a special education pupil cannot receive the required minimum number of hours of pupil instruction solely because of travel time between instructional sites during the school day, that travel time, up to a maximum of 2-1/2 hours per school week, shall be considered to be pupil instruction time for the purpose of determining whether the pupil is receiving the required minimum number of hours of pupil instruction. However, if a district demonstrates to the satisfaction of the department SUPERINTENDENT that the travel time limitation under this subdivision would create undue costs or hardship to the district, the department SUPERINTENDENT may consider more travel time to be pupil instruction time for this purpose. (e) For the 1997-98 school year only, if a district operates an elementary school that is located on an island and provides some pupil instruction for pupils enrolled in that elementary school at 1 or more school buildings operated by the district that are not located on the island, the travel time for travel for those pupils between the elementary school located on the island and the other school building or buildings, up to a maximum of 1-1/2 hours per school week, shall be considered to be pupil instruction time for those pupils for the purpose of determining whether those pupils are receiving the required minimum number of hours of pupil instruction. (9) The department SUPERINTENDENT shall apply the guidelines under subsection (8) in calculating the full-time equivalency of pupils. (10) Upon application by the district for a particular fiscal year, the state board SUPERINTENDENT may waive for a district the minimum number of days and hours of pupil instruction requirement of subsection (3) for a department SUPERINTENDENT-approved alternative education program. If a district applies for and receives a waiver under this subsection and complies with the terms of the waiver, for the fiscal year covered by the waiver the district is not subject to forfeiture under this section for the specific program covered by the waiver. (11) BEGINNING IN THE 2000-01 SCHOOL YEAR, AS USED IN THIS SECTION, "DAY OF PUPIL INSTRUCTION" MEANS A DAY ON WHICH AT LEAST 5.0 HOURS OF PUPIL INSTRUCTION IS SCHEDULED AND PROVIDED. A QUARTER-DAY, HALF-DAY, OR OTHER FRACTIONAL DAY OF INSTRUCTION SHALL BE COUNTED AS THAT FRACTION AND IS CALCULATED BY DIVIDING THE NUMBER OF HOURS ACTUALLY PROVIDED BY 5. A DAY OF PUPIL INSTRUCTION SHALL NOT BE COUNTED AS MORE THAN ONE DAY OF PUPIL INSTRUCTION. A DISTRICT NOT MEETING THE MINIMUM NUMBER OF HOURS OF PUPIL INSTRUCTION IN A SCHOOL YEAR REQUIRED UNDER SECTION 1284 OF THE REVISED SCHOOL CODE, MCL 380.1284, AND THE MINIMUM NUMBER OF DAYS OF PUPIL INSTRUCTION IN A SCHOOL YEAR REQUIRED UNDER SECTION 1284 OF THE REVISED SCHOOL CODE, MCL 380.1284, IS SUBJECT TO THE PAYMENT ADJUSTMENT DESCRIBED IN SUBSECTION (3). Sec. 102. (1) A district or intermediate district receiving money under this act shall not adopt or operate under a deficit budget, and a district or intermediate district shall not incur an operating deficit in a fund during a school fiscal year. A district or intermediate district having an existing deficit or which incurs a deficit shall not be allotted or paid a further sum under this act until the district or intermediate district submits to the department SUPERINTENDENT for approval a budget for the current school fiscal year and a plan to eliminate the district's or intermediate district's deficit not later than the end of the second school fiscal year after the deficit was incurred. Withheld state aid payments shall be released after the department SUPERINTENDENT approves the deficit reduction plan and ensures that the budget for the current school fiscal year is balanced. (2) Not later than March 1 of each year, the department SUPERINTENDENT shall prepare a report of deficits incurred by districts and intermediate districts in the immediately preceding fiscal year and the progress made in reducing those deficits and submit the report to the standing committees of the legislature responsible for K-12 education legislation, the appropriations subcommittees of the legislature responsible for K-12 education appropriations, the house and senate fiscal agencies, the state treasurer, and the department of management and budget STATE BUDGET DIRECTOR. The department SUPERINTENDENT shall also submit interim reports concerning district and intermediate district deficits as necessary. (3) The amount of the permissible deficit for each school fiscal year shall not exceed the amount of state aid reduced by an executive order during that school fiscal year. (4) A district or intermediate district with an existing deficit or which incurs a deficit shall submit to the department SUPERINTENDENT a monthly monitoring report on revenue and expenditures in a form and manner prescribed by the department SUPERINTENDENT. (5) If a district or intermediate district is not able to comply with the provisions of this section, the district or intermediate district shall submit to the department SUPERINTENDENT a plan to eliminate its deficit. Upon approval of the plan submitted, the superintendent of public instruction may continue allotment and payment of funds under this act, extend the period of time in which a district or intermediate district has to eliminate its deficit, and set special conditions that the district or intermediate district must meet during the period of the extension. (6) For the purposes of this section, a district or intermediate district is considered to have incurred an operating deficit if the district or intermediate district incurs any withholding of or financial penalty, other than a temporary delay, against any portion of its total state school aid allocation under this act. Sec. 104a. (1) In order to receive state aid under this act, a district shall comply with this section and shall administer state assessments to high school pupils in the subject areas of communications skills, mathematics, science, and, beginning with pupils scheduled to graduate in 2000, social studies. The district shall include on the pupil's high school transcript all of the following: (a) For each high school graduate who has completed a subject area assessment under this section, the pupil's scaled score on the assessment. (b) If the pupil's scaled score on a subject area assessment falls within the range required under subsection (2) for a category established under subsection (2), an indication that the pupil has achieved state endorsement for that subject area. (c) The number of school days the pupil was in attendance at school each school year during high school and the total number of school days in session for each of those school years. (2) The department SUPERINTENDENT shall develop scaled scores for reporting subject area assessment results for each of the subject areas under this section. Subject to approval by the state board, the THE superintendent of public instruction shall establish 3 categories for each subject area indicating basic competency, above average, and outstanding, and shall establish the scaled score range required for each category. The department SUPERINTENDENT shall design and distribute to districts, intermediate districts, and nonpublic schools a simple and concise document that describes these categories in each subject area and indicates the scaled score ranges for each category in each subject area. A district may award a high school diploma to a pupil who successfully completes local district requirements established in accordance with state law for high school graduation, regardless of whether the pupil is eligible for any state endorsement. (3) The assessments administered for the purposes of this section shall be administered to pupils during the last 30 school days of grade 11. The department SUPERINTENDENT shall ensure that the assessments are scored and the scores are returned to pupils, their parents or legal guardians, and districts not later than the beginning of the pupil's first semester of grade 12. Not later than fall 1999, the THE SUPERINTENDENT department shall arrange for those portions of a pupil's assessment that cannot be scored mechanically to be scored in Michigan by persons who are AND PRIORITY SHALL BE GIVEN TO HIRING PERSONS WHO ARE Michigan teachers, retired Michigan teachers, or Michigan school administrators and who have been trained in scoring the assessments TO SCORE THE TESTS. The returned scores shall indicate the pupil's scaled score for each subject area assessment, the range of scaled scores for each subject area, and the range of scaled scores required for each category established under subsection (2). In reporting the scores to pupils, parents, and schools, the department SUPERINTENDENT shall provide specific, meaningful, and timely feedback on the pupil's performance on the assessment. (4) For each pupil who does not achieve state endorsement in 1 or more subject areas, the board of the district in which the pupil is enrolled shall provide that there be at least 1 meeting attended by at least the pupil and a member of the district's staff or a local or intermediate district consultant who is proficient in the measurement and evaluation of pupils. The district may provide the meeting as a group meeting for pupils in similar circumstances. If the pupil is a minor, the district shall invite and encourage the pupil's parent, legal guardian, or person in loco parentis to attend the meeting and shall mail a notice of the meeting to the pupil's parent, legal guardian, or person in loco parentis. The purpose of this meeting and any subsequent meeting under this subsection shall be to determine an educational program for the pupil designed to have the pupil achieve state endorsement in each subject area in which he or she did not achieve state endorsement. In addition, a district may provide for subsequent meetings with the pupil conducted by a high school counselor or teacher designated by the pupil's high school principal, and shall invite and encourage the pupil's parent, legal guardian, or person in loco parentis to attend the subsequent meetings. The district shall provide special programs for the pupil or develop a program using the educational programs regularly provided by the district unless the board of the district decides otherwise and publishes and explains its decision in a public justification report. (5) A pupil who wants to repeat an assessment administered under this section may repeat the assessment, without charge to the pupil, in the next school year or after graduation. An individual may repeat an assessment at any time the district administers an applicable assessment instrument or during a retesting period under subsection (7). (6) The department SUPERINTENDENT shall ensure that the length of the assessments used for the purposes of this section and the combined total time necessary to administer all of the assessments, including social studies, are the shortest possible that will still maintain the degree of reliability and validity of the assessment results determined necessary by the department SUPERINTENDENT. The department SUPERINTENDENT shall ensure that the maximum total combined length of time that schools are required to set aside for administration of all of the assessments used for the purposes of this section, including social studies, does not exceed 8 hours. However, this subsection does not limit the amount of time that individuals may have to complete the assessments. (7) The department SUPERINTENDENT shall establish, schedule, and arrange periodic retesting periods throughout the year for individuals who desire to repeat an assessment under this section. The department SUPERINTENDENT shall coordinate the arrangements for administering the repeat assessments and shall ensure that the retesting is made available at least within each intermediate district and, to the extent possible, within each district. (8) A district shall provide accommodations to a pupil with disabilities for the assessments required under this section, as provided under section 504 of title V of the rehabilitation act of 1973, Public Law 93-112, 29 U.S.C. 794; subtitle A of title II of the Americans with disabilities act of 1990, Public Law 101-336, 42 U.S.C. 12131 to 12134; and the implementing regulations for those statutes. (9) For the purposes of this section, the state board SUPERINTENDENT shall develop or select and approve assessment instruments to measure pupil performance in communications skills, mathematics, social studies, and science. The assessment instruments shall be based on the state board model core academic content standards objectives. (10) Upon written request by the pupil's parent or legal guardian stating that the request is being made for the purpose of providing the pupil with an opportunity to qualify to take 1 or more postsecondary courses as an eligible student under SECTION 21B OR the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, the board of a district shall allow a pupil who is in at least grade 10 to take an assessment administered under this section without charge at any time the district regularly administers the assessment or during a retesting period established under subsection (7). A district is not required to include in an annual education report, or in any other report submitted to the department SUPERINTENDENT for accreditation purposes, results of assessments taken under this subsection by a pupil in grade 11 or lower until the results of that pupil's graduating class are otherwise reported. (11) All assessment instruments developed or selected and approved by the state under any statute or rule for a purpose related to K to 12 education shall be objective-oriented and consistent with the state board model core academic content standards objectives. (12) A person who has graduated from high school after 1996 and who has not previously taken an assessment under this section may take an assessment used for the purposes of this section, without charge to the person, at the district from which he or she graduated from high school at any time that district administers the assessment or during a retesting period scheduled under subsection (7) and have his or her scaled score on the assessment included on his or her high school transcript. If the person's scaled score on a subject area assessment falls within the range required under subsection (2) for a category established under subsection (2), the district shall also indicate on the person's high school transcript that the person has achieved state endorsement for that subject area. (13) Not later than July 1 of each year until 2000, the department SUPERINTENDENT shall submit a comprehensive report to the legislature AND THE STATE BUDGET DIRECTOR on the status of the assessment program under this section. The report shall include at least all of the following: (a) The annual pupil assessment data. (b) A description of the feedback provided to pupils, parents, and schools. (c) A description of any significant alterations made in the program by the department or state board during the period covered by the report. (d) Any recommendations by the department or state board for legislative changes to the program. (e) An update of the reports of the assessment advisory committees of the state board. (14) Pupils scheduled to graduate in 1998 who took the assessments used for the purposes of this section during the 1996-97 school year may repeat 1 or more of the assessments during the 1997-98 school year. The department, in cooperation with districts, shall make arrangements for repeat assessments to be available for these pupils in each district that operates a high school during the 1997-98 school year in time for these pupils to repeat the assessments before graduation. The repeat assessments may be administered at times other than regular school hours. (15) (14) A child who is a student in a nonpublic school or home school may take an assessment under this section. To take an assessment, a child who is a student in a home school shall contact the district in which the child resides, and that district shall administer the assessment, or the child may take the assessment at a nonpublic school if allowed by the nonpublic school. Upon request from a nonpublic school, the department SUPERINTENDENT shall supply assessments and the nonpublic school may administer the assessment. (16) (15) The purpose of the assessment under this section is to assess pupil performance in mathematics, science, social studies, and communication arts for the purpose of improving academic achievement and establishing a statewide standard of competency. The assessment under this section provides a common measure of data that will contribute to the improvement of Michigan schools' curriculum and instruction by encouraging alignment with Michigan's curriculum framework standards. These standards are based upon the expectations of what pupils should know and be able to do by the end of grade 11. (17) (16) As used in this section: (a) "Communications skills" means reading and writing. (b) "Social studies" means geography, history, economics, and American government. Sec. 105. (1) In order to avoid a penalty under this section, and in order to count a nonresident pupil residing within the same intermediate district in membership without the approval of the pupil's district of residence, a district shall comply with this section. (2) Except as otherwise provided in subsection (3), a A district shall determine by June 1 whether or not it will accept applications for enrollment by nonresident applicants residing within the same intermediate district for the next school year. If the district determines to accept applications for enrollment of a number of nonresidents, beyond those entitled to preference under this section, the district shall do all of the following: (a) By June 15, publish the grades, schools, and special programs, if any, for which enrollment may be available to, and for which applications will be accepted from, nonresident applicants. residing within the same intermediate district. (b) At least until July 1, accept applications from nonresidents residing within the same intermediate district for enrollment in the available grades, schools, and programs. (c) By July 15, using the procedures and preferences required under this section, determine which nonresident applicants will be allowed to enroll in the district and notify the parent or legal guardian of each nonresident applicant of whether or not the applicant may enroll in the district. The notification to parents or legal guardians of nonresident applicants accepted for enrollment shall contain notification of the date by which the applicant must enroll in the district and procedures for enrollment. (3) If deadlines similar to those described in subsection (2) have been established in an intermediate district pursuant to a pilot intermediate district schools of choice program under former section 91, and if those deadlines are not later than the deadlines under subsection (2), the districts within the intermediate district may continue to use those deadlines. (3) A DISTRICT SHALL DETERMINE BY NOVEMBER 1 WHETHER OR NOT IT WILL ACCEPT APPLICATIONS FOR ENROLLMENT BY NONRESIDENT APPLICANTS FOR THE SECOND SEMESTER. A NONRESIDENT PUPIL WHO ENROLLED IN THE DISTRICT UNDER SUBSECTION (2) SHALL NOT BE REQUIRED TO REAPPLY OR RE-ENROLL IN ORDER TO ATTEND THE DISTRICT IN THE SECOND SEMESTER. IF THE DISTRICT DETERMINES TO ACCEPT APPLICATIONS FOR ENROLLMENT IN THE SECOND SEMESTER OF A NUMBER OF NONRESIDENTS, BEYOND THOSE ENTITLED TO PREFERENCE UNDER THIS SECTION, THE DISTRICT SHALL DO ALL OF THE FOLLOWING: (A) BY NOVEMBER 1, PUBLISH THE GRADES, SCHOOLS, AND SPECIAL PROGRAMS, IF ANY, FOR WHICH ENROLLMENT MAY BE AVAILABLE TO, AND FOR WHICH APPLICATIONS WILL BE ACCEPTED FROM, NONRESIDENT APPLICANTS. (B) AT LEAST UNTIL NOVEMBER 15, ACCEPT APPLICATIONS FROM NONRESIDENTS FOR ENROLLMENT IN THE AVAILABLE GRADES, SCHOOLS, AND PROGRAMS. (C) BY DECEMBER 1, USING THE PROCEDURES AND PREFERENCES REQUIRED UNDER THIS SECTION, DETERMINE WHICH NONRESIDENT APPLICANTS WILL BE ALLOWED TO ENROLL IN THE DISTRICT AND NOTIFY THE PARENT OR LEGAL GUARDIAN OF EACH NONRESIDENT APPLICANT OF WHETHER OR NOT THE APPLICANT MAY ENROLL IN THE DISTRICT. THE NOTIFICATION TO PARENTS OR LEGAL GUARDIANS OF NONRESIDENT APPLICANTS ACCEPTED FOR ENROLLMENT SHALL CONTAIN NOTIFICATION OF THE DATE BY WHICH THE APPLICANT MUST ENROLL IN THE DISTRICT AND PROCEDURES FOR ENROLLMENT. (4) A district offering to enroll nonresident applicants residing within the same intermediate district may limit the number of nonresident pupils it accepts in a grade, school, or program, at its discretion, and may use that limit as the reason for refusal to enroll an applicant. (5) A nonresident applicant residing within the same intermediate district shall not be granted or refused enrollment based on intellectual, academic, artistic, or other ability, talent, or accomplishment, or lack thereof, or based on a mental or physical disability, except that a district may refuse to admit a nonresident applicant if the applicant does not meet the same criteria, other than residence, that an applicant who is a resident of the district must meet to be accepted for enrollment in a grade or a specialized, magnet, or intra-district choice school or program to which the applicant applies. (6) A nonresident applicant residing within the same intermediate district shall not be granted or refused enrollment based on age, except that a district may refuse to admit a nonresident applicant applying for a program that is not appropriate for the age of the applicant. (7) A nonresident applicant residing within the same intermediate district shall not be granted or refused enrollment based upon religion, race, color, national origin, sex, height, weight, marital status, or athletic ability, or, generally, in violation of any state or federal law prohibiting discrimination. (8) A district may refuse to enroll a nonresident applicant if the applicant is, or has been within the preceding 2 years, suspended from another school or if the applicant has ever been expelled from another school. (9) A district shall give preference for enrollment over all other nonresident applicants residing within the same intermediate district to pupils who were enrolled in and attended the district in the school year immediately preceding the school year in question and to other school-age children who reside in the same household as the pupil. (10) If a nonresident pupil was enrolled in and attending school in a district as a nonresident pupil in the 1995-96 school year and continues to be enrolled continuously each school year in that district, the district shall allow that nonresident pupil to continue to enroll in and attend school in the district until high school graduation, without requiring the nonresident pupil to apply for enrollment under this section. This subsection does not prohibit a district from expelling a pupil described in this subsection for disciplinary reasons. (11) If the number of qualified nonresident applicants eligible for acceptance in a school, grade, or program does not exceed the positions available for nonresident pupils in the school, grade, or program, the school district shall accept for enrollment all of the qualified nonresident applicants eligible for acceptance. If the number of qualified nonresident applicants residing within the same intermediate district eligible for acceptance exceeds the positions available in a grade, school, or program in a district for nonresident pupils, the district shall use a random draw system, subject to the need to abide by state and federal antidiscrimination laws and court orders and subject to preferences allowed by this section. (12) If a district, or the nonresident applicant, requests the district in which a nonresident applicant resides to supply information needed by the district for evaluating the applicant's application for enrollment or for enrolling the applicant, the district of residence shall provide that information on a timely basis. (13) If a district is subject to a court-ordered desegregation plan, and if the court issues an order prohibiting pupils residing in that district from enrolling in another district or prohibiting pupils residing in another district from enrolling in that district, this section is subject to the court order. (14) This section does not require a district to provide transportation for a nonresident pupil enrolled in the district under this section or for a resident pupil enrolled in another district under this section. However, at the time a nonresident pupil enrolls in the district, a district shall provide to the pupil's parent or legal guardian information on available transportation to and from the school in which the pupil enrolls. (15) If, in a particular state fiscal year, the total number of pupils enrolled and counted in membership in a district is less than 90% of the total number of pupils residing in the district who are enrolled and counted in membership in either that district or 1 or more other districts, the total amount of money allocated to that district under section 20 shall be adjusted so that the district receives a total allocation under section 20 equal to the amount the district would receive under section 20 if exactly 90% of the pupils residing in the district who are enrolled and counted in either that district or 1 or more other districts were enrolled and counted in membership in that district. (16) (15) A district may participate in a cooperative education program with 1 or more other districts or intermediate districts whether or not the district enrolls any nonresidents pursuant to this section. (17) (16) A NOTWITHSTANDING SECTION (6)(4)(AA), A district that, pursuant to this section, enrolls a nonresident pupil who is eligible for special education programs and services according to statute or rule, or who is a child with disabilities, as defined under the individuals with disabilities education act, title VI of Public Law 91-230, shall be considered to be the resident district of the pupil for the purpose of providing the pupil with a free appropriate public education. Consistent with state and federal law, that district is responsible for developing and implementing an individualized education plan annually for a nonresident pupil described in this subsection. (18) (17) If a district does not comply with this section, the district forfeits 10% 5% of the total amount due to the district under section 20c. STATE SCHOOL AID ALLOCATION TO THE DISTRICT UNDER THIS ACT. (19) (18) Upon application by a district, the superintendent of public instruction may grant a waiver for the district from a specific requirement under this section for not more than 1 year. (20) If an intermediate district is operating under an intermediate district pilot schools of choice program established under former section 91 or as described in section 91a, and if the superintendent of public instruction determines that the program is substantially similar to intermediate district schools of choice under this section, the superintendent of public instruction may exempt the intermediate district and its constituent districts from this section for not more than 1 year. (21) It is the intent of the legislature that this section will be reviewed before the 1999-2000 state fiscal year. SEC. 105C. (1) A DISTRICT MAY OPERATE A SATELLITE SCHOOL OFFERING A FULL-TIME INSTRUCTIONAL PROGRAM FOR PUPILS IN GRADES K-12, OR A COMBINATION OF THOSE GRADES, IN ANY OTHER DISTRICT IN THE STATE. THE CURRICULUM OFFERED IN A SATELLITE SCHOOL OPERATED UNDER THIS SECTION SHALL BE APPROVED BY THE SUPERINTENDENT. (2) A DISTRICT OPERATING A SATELLITE SCHOOL UNDER THIS SECTION SHALL BE SUBJECT TO THE SAME TIMELINES AND ENROLLMENT REQUIREMENTS AS IN SECTION 105. (3) A SATELLITE SCHOOL OPERATED UNDER THIS SECTION SHALL BE SUBJECT TO THE SAME STATE RULES AND REGULATIONS AS THE OPERATING DISTRICT. (4) NOTWITHSTANDING THE ENROLLMENT REQUIREMENTS IN SECTION 105, A DISTRICT SHALL GIVE PREFERENCE FOR ENROLLMENT IN A SATELLITE SCHOOL TO PUPILS WHO RESIDE IN THE DISTRICT IN WHICH THE SATELLITE SCHOOL IS LOCATED. Sec. 107. (1) From the appropriation in section 11, there is allocated for 1997-98, for 1998-99, and for 1999-2000 an amount not to exceed $80,000,000.00 each fiscal year for adult education programs authorized under this section. (2) To be eligible to be a participant funded under this section, a person shall be enrolled in an adult basic education program, an adult English as a second language program, a general education development (G.E.D.) test preparation program, a job or employment related program, or a high school completion program, that meets the requirements of this section, and shall meet either of the following, as applicable: (a) If the individual has obtained a high school diploma or a general education development (G.E.D.) certificate, the individual meets 1 of the following: (i) Is less than 20 years of age on September 1 of the school year and is enrolled in the state technical institute and rehabilitation center. (ii) Is less than 20 years of age on September 1 of the school year, is not attending an institution of higher education, and is enrolled in a job or employment related program through a referral by an employer. (iii) Is enrolled in an English as a second language program. (iv) Is enrolled in a high school completion program. (b) If the individual has not obtained a high school diploma or G.E.D. certificate, is at least 20 years of age on September 1 of the school year. (3) The amount allocated under subsection (1) shall be distributed as follows: (a) For districts and consortia that received payments for 1995-96 under former section 107f and that received payments for 1996-97 under subsection (4) o f this section as in effect in 1996-97, the amount allocated to each for 1997-98, for 1998-99, and for 1999-2000 shall be an amount each fiscal year equal to 36.76% of the amount the district or consortium received for 1995-96 under former section 107f. (b) For districts and consortia that received payments under subsection (3) of this section as in effect for 1996-97, the amount allocated to each for 1997-98, for 1998-99, and for 1999-2000 shall be an amount each fiscal year equal to the product of the number of full-time equated participants actually enrolled and in attendance during the 1996-97 school fiscal year in the program funded under subsection (3) of this section as in effect for 1996-97 as reported to the department SUPERINTENDENT, audited, and adjusted according to subsection (10) of this section as in effect for 1996-97, multiplied by $2,750.00. (c) For districts and consortia that meet the conditions of both subdivisions (a) and (b), the amount allocated each fiscal year for 1997-98, for 1998-99, and for 1999-2000 shall be the sum of the allocations to the district or consortium under subdivisions (a) and (b). (d) A district or consortium that received funding in 1996-97 under this section as in effect for 1996-97 may operate independently of a consortium or join or form a consortium for 1997-98, for 1998-99, or for 1999-2000. The allocation for 1997-98, for 1998-99, or for 1999-2000 to the district or the newly formed consortium under this subsection shall be determined by the department SUPERINTENDENT and shall be based on the proportion of the amounts specified in subdivision (a) or (b), or both, that are attributable to the district or consortium that received funding in 1996-97. A district or consortium described in this subdivision shall notify the department SUPERINTENDENT of its intention with regard to 1997-98, 1998-99, or 1999-2000 by October 1 of the affected fiscal year. (4) A district that operated an adult education program in 1996-97 and does not intend to operate a program in 1997-98, 1998-99, or 1999-2000 shall notify the department SUPERINTENDENT by October 1 of the affected fiscal year of its intention. The funds intended to be allocated under this section to a district that does not operate a program in 1997-98, 1998-99, or 1999-2000 and the unspent funds originally allocated under this section to a district or consortium that subsequently operates a program at less than the level of funding allocated under subsection (3) shall instead be proportionately reallocated to the other districts described in subsection (3)(a) that are operating an adult education program in 1997-98, 1998-99, or 1999-2000 under this section. (5) The amount allocated under this section per full-time equated participant is $2,850.00 for a 450-hour program. The amount shall be proportionately reduced for a program offering less than 450 hours of instruction. (6) An adult basic education program or an adult English as a second language program operated on a year-round or school year basis may be funded under this section, subject to all of the following: (a) The program enrolls adults who are determined by an appropriate assessment to be below ninth grade level in reading or mathematics, or both, or to lack basic English proficiency. (b) The program tests individuals for eligibility under subdivision (a) before enrollment and tests participants to determine progress after every 90 hours of attendance, using assessment instruments approved by the department SUPERINTENDENT. (c) A participant in an adult basic education program is eligible for reimbursement until 1 of the following occurs: (i) The participant's reading and mathematics proficiency are assessed at or above the ninth grade level. (ii) The participant fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction. (d) A funding recipient enrolling a participant in an English as a second language program is eligible for funding according to subsection (10) until the participant meets 1 of the following: (i) The participant is assessed as having attained basic English proficiency. (ii) The participant fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction. The department SUPERINTENDENT shall provide information to a funding recipient regarding appropriate assessment instruments for this program. (7) A general education development (G.E.D.) test preparation program operated on a year-round or school year basis may be funded under this section, subject to all of the following: (a) The program enrolls adults who do not have a high school diploma. (b) The program shall administer a G.E.D. pre-test approved by the department SUPERINTENDENT before enrolling an individual to determine the individual's potential for success on the G.E.D. test, and shall administer other tests after every 90 hours of attendance to determine a participant's readiness to take the G.E.D. test. (c) A funding recipient shall receive funding according to subsection (10) for a participant, and a participant may be enrolled in the program until 1 of the following occurs: (i) The participant passes the G.E.D. test. (ii) The participant fails to show progress on 2 successive tests used to determine readiness to take the G.E.D. test after having completed at least 450 hours of instruction. (8) A high school completion program operated on a year-round or school year basis may be funded under this section, subject to all of the following: (a) The program enrolls adults who do not have a high school diploma. (b) A funding recipient shall receive funding according to subsection (10) for a participant in a course offered under this subsection until 1 of the following occurs: (i) The participant passes the course and earns a high school diploma. (ii) The participant fails to earn credit in 2 successive semesters or terms in which the participant is enrolled after having completed at least 900 hours of instruction. (9) A job or employment-related adult education program operated on a year-round or school year basis may be funded under this section, subject to all of the following: (a) The program enrolls adults referred by their employer who are less than 20 years of age, have a high school diploma, are determined to be in need of remedial mathematics or communication arts skills, or, for 1997-98 only, vocational skills, and are not attending an institution of higher education. (b) An individual may be enrolled in this program and the grant recipient shall receive funding according to subsection (10) until 1 of the following occurs: (i) The individual achieves the requisite skills as determined by appropriate assessment instruments administered at least after every 90 hours of attendance. (ii) The individual fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction. The department SUPERINTENDENT shall provide information to a funding recipient regarding appropriate assessment instruments for this program. (10) A funding recipient shall receive payments under this section in accordance with the following: (a) Ninety percent for enrollment of eligible participants. (b) Ten percent for completion of the adult basic education objectives by achieving an increase of at least 1 grade level of proficiency in reading or mathematics; for achieving basic English proficiency; for passage of the G.E.D. test; for passage of a course required for a participant to attain a high school diploma; or for completion of the course and demonstrated proficiency in the academic skills to be learned in the course, as applicable. (11) As used in this section, "participant" means the sum of the number of full-time equated individuals enrolled in and attending a department SUPERINTENDENT-approved adult education program under this section, using quarterly participant count days on the schedule described in section 6(7)(b). (12) A person who is not eligible to be a participant funded under this section may receive adult education services upon the payment of tuition. In addition, a person who is not eligible to be served in a program under this section due to the program limitations specified in subsection (6),(7),(8), or (9) may continue to receive adult education services in that program upon the payment of tuition. The tuition level shall be determined by the local or intermediate district conducting the program. (13) An individual who is an inmate in a state correctional facility shall not be counted as a participant under this section. (14) A district shall not commingle money received under this section or from another source for adult education purposes with any other funds of the district. A district receiving adult education funds shall establish a separate ledger account for those funds. This subsection does not prohibit a district from using general funds of the district to support an adult education or community education program. (15) From the general fund appropriation in section 11, there is allocated for 1997-98 only an amount not to exceed $250,000.00 for a grant to focus: hope for a fast-track adult education program. Sec. 109. (1) Subject to subsection (2), in order to receive funds under this act, each district or intermediate district shall provide appropriate instructional services, as determined by the district or intermediate district, to an enrolled pupil who is certified by the pupil's attending physician as having a medical condition that requires the pupil to be hospitalized or confined to his or her home during regular school hours and that is expected to require the hospitalization or confinement for a period longer than 5 school days. The district or intermediate district may provide the services itself or may contract with an intermediate district, a hospital, a treatment center, or another district to provide the services. In choosing a provider for the instructional services, the district or intermediate district shall consider which of those potential providers is best able to deliver the appropriate instructional services. The district or intermediate district shall pay reasonable costs as agreed upon between the district or intermediate district and the provider for services provided to a pupil under this section. (2) A district or intermediate district is required to provide instructional services under subsection (1) to a pupil placed in a hospital, treatment center, or other treatment facility without the district's or intermediate district's prior knowledge only if the district or intermediate district is notified of the pupil's placement by the hospital, treatment center, facility, or the pupil's parent or legal guardian. Upon being notified, the district or intermediate district shall make arrangements to provide instructional services under subsection (1) within 3 school days after being notified. (3) Not later than October 15 of each odd numbered year, the department SUPERINTENDENT shall prepare and distribute to each district and intermediate district a written explanation of the operation of this section and the respective duties of all affected parties. The department SUPERINTENDENT shall provide a copy of the explanation to any other person upon request. Sec. 118. (1) Subject to subsection (3), a district shall not be allotted or paid a sum under this act unless that district pays TO THE RECEIVING DISTRICT the agreed-upon amount of tuition or other payment for pupils educated outside the boundaries of the pupil's district of residence. (2) A district that sends pupils to 1 or more districts, that is legally liable for the payment of the amount described in subsection (1), and that fails to pay that amount in full before April 1 of each year shall remit the full amount owed to the receiving district before making any other financial expenditure or commitment for the next school fiscal year. (3) The department SUPERINTENDENT shall not deduct any amount from a district's state school aid pursuant to this section unless the receiving district demonstrates to the satisfaction of the department SUPERINTENDENT, not later than April 30 of the same fiscal year, that the liable district has not paid the required amount as described in subsection (2). Sec. 124. (1) If taxes levied for operating purposes against property constituting at least 5% of the valuation of a district are paid under protest and, therefore, are unavailable to the district, the total valuation of the district for the purposes of this act shall be reduced by the valuation of the property. The credits so obtained by a district in the calculation of payments to the district under this act shall remain a lien against the district and shall be paid by the district to the school aid fund when the taxes are collected. (2) If taxes levied for operating purposes against property constituting at least 5% of the valuation of a district are not paid by a single bankrupt debtor that files for reorganization under chapter 11 of title 11 of the United States Code, 11 U.S.C. 1101 to 1174, and, therefore, are unavailable to the district, the total valuation of the district for the purposes of this act shall be reduced by the valuation of the property. The credits so obtained by a district in the calculation of payments to the district under this act shall remain a lien against the district and shall be paid by the district to the school aid fund when the taxes are collected. This subsection shall be implemented upon verification by the department SUPERINTENDENT that the district has taken proper action to attempt to secure payment of taxes by the bankrupt debtor. Sec. 147. (1) The allocations for 1997-98, 1998-99, and 1999-2000 for the public school employees' retirement system pursuant to the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1467, shall be made using the entry age normal cost actuarial method and risk assumptions adopted by the public school employees retirement board and the department of management and budget. Effective October 1, 1997 1998, the annual level percentage of payroll contribution rate for the 1997-98 1998-99 state fiscal year is estimated at 11.12%, AND the annual level percentage of payroll contribution rate for the 1998-99 and 1999-2000 state fiscal years YEAR is estimated at 11.12% 11.66%. The portion of the contribution rate assigned to districts and intermediate districts for 1997-98, 1998-99, and 1999-2000 is all of the total percentage points. This contribution rate reflects an amortization period of 39 years for 1997-98, 38 years for 1998-99, and 37 years for 1999-2000. The public school employees' retirement system board shall notify each district and intermediate district by February 28 of each fiscal year of the estimated contribution rate for the next fiscal year. (2) It is the intent of the legislature that the amortization period described in section 41(2) of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, be reduced to 30 years by the end of the 2005-2006 state fiscal year by reducing the amortization period by not more than 1 year each fiscal year. Sec. 151. (1) The treasurer of each county shall furnish to the department SUPERINTENDENT, on or before August 1 of each year following the receipt of assessment rolls, a statement of the taxable value of each district and fraction of a district within the county, using forms furnished by the department SUPERINTENDENT. On or before May 1 of each year, the treasurer of each county shall submit to the department SUPERINTENDENT revisions to the taxable value for the immediately preceding year of each district and fraction of a district within the county, using forms furnished by the department SUPERINTENDENT. On or before October 1 of each year, the treasurer of each county shall submit to the department SUPERINTENDENT revisions to the taxable value for the 2 immediately preceding years of each district and fraction of a district within the county, using forms furnished by the department SUPERINTENDENT. The reports required by this subsection shall also contain the amount of ad valorem taxable value captured for school operating taxes under a tax increment financing plan under 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, or the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672. (2) Not later than the tenth day of each month, the tax tribunal created by the tax tribunal act, 1973 PA 186, MCL 205.701 to 205.779, shall report to the department SUPERINTENDENT the changes in taxable value for tax years after 1993 that are not reported to the department SUPERINTENDENT under subsection (1) and that are caused by tax tribunal decisions in the immediately preceding month for homestead and qualified agricultural property, as defined in section 1211 of the revised school code, MCL 380.1211, and for property that is not homestead or qualified agricultural property, in each district and intermediate district. The report shall also contain the amount of taxable value captured under a tax increment financing plan described in subsection (1) for school operating tax purposes. Sec. 152. Except for reports due on other dates specified in this act, each district and intermediate district shall furnish to the department SUPERINTENDENT before the first Monday in November of each year those reports the department SUPERINTENDENT considers necessary for the determination of the allocation of funds under this act. In order to receive funds under this act, each district and intermediate district shall also furnish to the department SUPERINTENDENT the information the department SUPERINTENDENT considers necessary for the administration of this act and for the provision of reports of educational progress to the senate and house committees responsible for education, the senate and house appropriations subcommittees responsible for appropriations to school districts, the senate and house fiscal agencies, and the department of management and budget, STATE BUDGET DIRECTOR, as appropriate. Sec. 158. In order to receive funds under this act, each district shall furnish to the department SUPERINTENDENT, on a form and in a manner prescribed by the department SUPERINTENDENT, the information requested by the department SUPERINTENDENT that is necessary for the preparation of the district pupil retention report defined in section (3). Sec. 158b. Each district that receives federal impact aid under section 3(c)(1) of title 1 of chapter 1124, 64 Stat. 1100, 20 U.S.C. 238, annually shall report to the department SUPERINTENDENT, in the form and manner prescribed by the department SUPERINTENDENT, the amount of that aid the district received. Sec. 161a. If a court determines that a person intentionally violated section 411a of the Michigan penal code, 1931 PA 328, MCL 750.411a, by making a false report of the commission of a crime described in section 6(6)(g)(F) knowing the report to be false for the purpose of having a pupil counted in membership in a district under section 6(6)(g)(F), as part of the restitution ordered under section 30 of chapter XIIA of 1939 PA 288, MCL 712A.30, section 16, 44, or 76 of the crime victim's rights act, 1985 PA 87, MCL 780.766, 780.794, and 780.826, or section 1a of chapter IX of the code of criminal procedure, 1927 PA 175, MCL 769.1a, the court may order the person to pay the pupil's district of residence an amount that is not more than the state school aid that district would have received attributable to the pupil if the pupil had been counted in membership in his or her district of residence. Sec. 163. (1) Except as provided in the revised school code, the board of a district or intermediate district shall not permit any of the following: (a) A noncertificated teacher to teach in an elementary or secondary school or in an adult basic education or high school completion program. (b) A noncertificated counselor to provide counseling services to pupils in an elementary or secondary school or in an adult basic education or high school completion program. (2) Except as provided in the revised school code, a district or intermediate district employing teachers or counselors not legally certificated shall have deducted the sum equal to the amount paid the teachers or counselors for the period of noncertificated or illegal employment. Each intermediate superintendent shall notify the department SUPERINTENDENT of the name of the noncertificated teacher or counselor, and the district employing that individual and the amount of salary the noncertificated teacher or counselor was paid within a constituent district. (3) If a school official is notified by the department SUPERINTENDENT that he or she is employing a nonapproved noncertificated teacher or counselor in violation of this section and knowingly continues to employ that teacher or counselor, the school official is guilty of a misdemeanor, punishable by a fine of $1,500.00 for each incidence. Sec. 165. If an individual or private entity receives payment or consideration from a district or intermediate district as a result of involvement in a contractual shared time agreement and if memberships attributable to that agreement are subsequently disallowed by the department SUPERINTENDENT, the individual or entity shall reimburse to the district or intermediate district the full amount of the payment or consideration received. The attorney general may take any action necessary to enforce the reimbursement required under this section. Sec. 166b. (1) This act does not prohibit a parent or legal guardian of a minor who is enrolled in any of grades 1 to 12 in a nonpublic school or who is being home-schooled from also enrolling the minor in a district or intermediate district in any curricular offering that is provided by the district or intermediate district at a public school site and is available to pupils in the minor's grade level or age group, subject to compliance with the same requirements that apply to a full-time pupil's participation in the offering. However, state school aid shall be provided under this act for a minor enrolled as described in this subsection only for curricular offerings that are offered to full-time pupils in the minor's grade level or age group during regularly scheduled school hours. (2) This act does not prohibit a parent or legal guardian of a minor who is enrolled in any of grades 1 to 12 in a nonpublic school located within the district or who resides within the district and is being home-schooled from also enrolling the minor in the district in a curricular offering being provided by the district at the nonpublic school site. However, state school aid shall be provided under this act for a minor enrolled as described in this subsection only if all of the following apply: (a) The nonpublic school site is located, or the nonpublic students are educated, within the geographic boundaries of the district. (b) The nonpublic school is registered with the department SUPERINTENDENT as a nonpublic school and meets all state reporting requirements for nonpublic schools. (c) The instruction is scheduled to occur during the regular school day. (d) The instruction is provided directly by an employee of the district or of an intermediate district. (e) The curricular offering is also available to full-time pupils in the minor's grade level or age group in the district during the regular school day at a public school site. (f) The curricular offering is restricted to nonessential elective courses for pupils in grades 1 to 12. (3) A minor enrolled as described in this section is a part-time pupil for purposes of state school aid under this act. SEC. 166C. (1) FOR THE PURPOSES OF THIS SECTION, A SCHOOL-AGE CHILD WHO RESIDES WITHIN A DISTRICT SHALL BE CONSIDERED A RESIDENT STUDENT OF THAT DISTRICT AND MAY PARTICIPATE IN ANY EXTRACURRICULAR ACTIVITY OFFERED BY A SCHOOL OF THE DISTRICT IN WHICH THE CHILD RESIDES. THE SCHOOL OFFICIALS OF THE DISTRICT IN WHICH THE CHILD RESIDES SHALL ALLOW THE CHILD TO PARTICIPATE IN THE EXTRACURRICULAR ACTIVITY ON THE SAME BASIS AS STUDENTS OF THE SCHOOL AT WHICH THE ACTIVITY IS OFFERED. THE SCHOOL OFFICIALS OF THE DISTRICT SHALL NOT PROHIBIT OR INTERFERE WITH THE CHILD'S PARTICIPATION IN THE EXTRACURRICULAR ACTIVITY BASED IN WHOLE OR PART ON THE FACT THAT THE CHILD IS ENROLLED IN A PUBLIC SCHOOL ACADEMY, NONPUBLIC SCHOOL OR IS BEING HOME SCHOOLED OR ON THE IDENTITY OF THE NONPUBLIC SCHOOL IN WHICH THE CHILD IS ENROLLED OR OF THE PERSON PROVIDING THE SCHOOLING. (2) THE DISTRICT OR INTERMEDIATE DISTRICT MAY CHARGE A FEE FOR EXTRACURRICULAR ACTIVITIES WHEN STUDENTS ARE NOT GRADED OR EVALUATED AND ACADEMIC CREDIT IS NOT GIVEN, OR FOR ANY ACTIVITY IN WHICH PARTICIPATION IS NOT REQUIRED FOR OBTAINING A DIPLOMA. THE FEE SHALL NOT EXCEED THE FEE CHARGED TO AN ENROLLED PUPIL COUNTED IN THE DISTRICT'S PUPIL MEMBERSHIP. (3) A STUDENT WHO PARTICIPATES IN AN EXTRACURRICULAR ACTIVITY UNDER THIS SECTION AND IS NOT ENROLLED IN THE DISTRICT SHALL NOT BE COUNTED IN MEMBERSHIP IN THE DISTRICT. (4) AS USED IN THIS SECTION,"EXTRACURRICULAR ACTIVITY" INCLUDES ANY ACTIVITY ENGAGED IN BY STUDENTS OF A DISTRICT THAT IS NOT PART OF THE DISTRICT'S ACADEMIC CURRICULUM BUT IS IN SOME WAY SPONSORED OR ENDORSED BY THE DISTRICT. Sec. 167. (1) The department SUPERINTENDENT in cooperation with the department of community health shall develop plans to assist districts and intermediate districts and local county health departments to comply with section 1177 of the revised school code, MCL 380.1177, and section 9209 of the public health code, 1978 PA 368, MCL 333.9209, for each school year. (2) Each district or intermediate district shall report to the local health department in which it is located by November 1, of each fiscal year, in a manner prescribed by the department of community health, the immunization status of each pupil in grades K through 12 who enrolled in the district or intermediate district for the first time between January 1 and September 30 of the immediately preceding fiscal year. Not later than December 31 of each fiscal year, the department of community health shall notify the department SUPERINTENDENT by district or intermediate district of the percentage of entering pupils who do not have a completed, waived, or provisional immunization record in accordance with section 1177 of the revised school code, MCL 380.1177. If a district or intermediate district does not have a completed, waived, or provisional immunization record in accordance with section 1177 of the revised school code, MCL 380.1177, for at least 90% of the district's or intermediate district's entering pupils as recorded in the November 1 reports required under this subsection, the district or intermediate district is subject to subsection (4) until the district or intermediate district has such an immunization record for at least 90% of its pupils. (3) Each district or intermediate district shall again report to the local health department in which it is located by February 1 of each fiscal year, in a manner prescribed by the department of community health, the immunization status of each pupil in grades K through 12 who enrolled in the district or intermediate district for the first time between January 1 of the immediately preceding fiscal year and December 31 of the current fiscal year. Not later than March 31 of each fiscal year, the department of community health shall notify the department SUPERINTENDENT by district or intermediate district of the percentage of entering pupils who do not have a completed, waived, or provisional immunization record in accordance with section 1177 of the revised school code, MCL 380.1177. If a district or intermediate district does not have a completed, waived, or provisional immunization record in accordance with section 1177 of the revised school code, MCL 380.1177, for at least 95% of the district's or intermediate district's entering pupils as recorded in the February 1 reports required under this subsection, the district or intermediate district is subject to subsection (4) until the district or intermediate district has such an immunization record for at least 95% of its pupils. If the department of community health is not able to report to the department SUPERINTENDENT by March 31 because a district or intermediate district fails to submit a report as required in this subsection, or submits an incomplete, inaccurate, or late report, the district or intermediate district is subject to subsection (4) until the report is submitted in a complete and accurate form. (4) If a district or intermediate district does not comply with this section, the department SUPERINTENDENT shall withhold 5% of the total funds due to the district or intermediate district under this act after the date the department of community health reports a district's or intermediate district's noncompliance with this section to the department SUPERINTENDENT until the district or intermediate district complies with this section. If the district or intermediate district does not comply with this section by the end of the fiscal year, the district or intermediate district forfeits the total amount withheld. Sec. 168. In order to receive funds under this act, a district, intermediate district, grant recipient, contractor, or other entity that directly or indirectly receives funds under this act shall allow access for the department SUPERINTENDENT or the department's SUPERINTENDENT'S designee to audit all records related to a program for which it receives such funds. The district, intermediate district, grant recipient, contractor, or other entity shall reimburse the state for all disallowances found in the audit. Sec. 169. In order for a public school academy to receive state aid under this act, the public school academy shall demonstrate to the satisfaction of the department SUPERINTENDENT that the public school academy has made a good faith effort to advertise, throughout the entire area of the intermediate district in which the public school academy is located, that the academy is enrolling students and the procedures for applying for enrollment. The department SUPERINTENDENT shall not make any payments to a public school academy until the public school academy supplies evidence satisfactory to the department SUPERINTENDENT demonstrating compliance with this section. If a public school academy is a successor to a nonpublic school and more than 75% of the pupils enrolled in the public school academy during its first school year of operation were previously enrolled in that nonpublic school, there is a rebuttable presumption that the public school academy did not make the good faith effort required under this section. Sec. 169a. (1) A board member, official, or employee of a district or intermediate district shall not interfere with the right or ability of the Michigan schools for the deaf and blind to provide information about the residential program among parents and guardians of pupils or residents of the district or intermediate district. (2) Upon determining that a pupil is deaf or hard of hearing, a district or intermediate district shall provide to the pupil's parent or legal guardian information, provided by the Michigan coalition for deaf and hard of hearing persons, on educational placement options for deaf and hard of hearing children. (3) Upon determining that a pupil is blind, a district or intermediate district shall provide to the pupil's parent or legal guardian information, provided by the Michigan federation for the blind, on educational placement options for blind children. Enacting section 1. In accordance with section 30 of article IX of the state constitution of 1963, total state spending in this amendatory act and in 1998 PA 553, 1998 PA 339 and 1997 PA 142 from state sources for fiscal year 1998-99 is estimated at $9,495,075,400.00 $9,562,868,300.00 and state appropriations to be paid to local units of government for fiscal year 1998-99 are estimated at $9,480,525,400.00 $9,555,677,100.00, and total state spending in this amendatory act AND 1998 PA 553 and 1998 PA 339 from state sources for fiscal year 1999-2000 is estimated at $9,819,022,100.00 $9,939,102,500.00 and state appropriations to be paid to local units of government for fiscal year 1999-2000 are estimated at $9,776,098,100.00. $9,926,830,300.00. Enacting section 2. (1) Sections 10, 11e, 91c, 105a, 105b, 164c, and 166d of the state school aid act of 1979, 1979 PA 94, 388.1610, 388.1611e, 388.1691c, 388.1705a, 388.1705b, 388.1764c, and 388.1766d are repealed. (2) Section 274 of the income tax act of 1967, 1967 PA 281, MCL 206.274 is repealed. Enacting section 3. This amendatory act takes effect upon enactment of this amendatory act. Final page