HB-4401, As Passed Senate, June 18, 2003
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4401
<<A bill to amend 1979 PA 94, entitled
"An act to make appropriations to aid in the support of the public schools and the intermediate school districts of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to supplement the school aid fund by the levy and collection of certain taxes; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to prescribe penalties; and to repeal acts and parts of acts,"
by amending the title and sections 3, 6, 8b, 11, 11f, 11g, 18, 19, 20,
22a, 22b, 24, 26a, 31a, 31d, 32c, 32d, 38, 39a, 41, 51a, 51c, 51d, 53a,
54, 56, 57, 61a, 62, 68, 74, 81, 94a, 98, 99, 101, 104a, 105, 107,
108, 147, and 166a (MCL 388.1603, 388.1606, 388.1608b, 388.1611,
388.1611f, 388.1611g, 388.1618, 388.1619, 388.1620, 388.1622a,
388.1622b, 388.1624, 388.1626a, 388.1631a, 388.1631d, 388.1632c,
388.1632d, 388.1638, 388.1639a, 388.1641, 388.1651a, 388.1651c,
388.1651d, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662,
388.1668, 388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1701,
388.1704a, 388.1705, 388.1707, 388.1708, 388.1747, and 388.1766a), the
title as amended by 1997 PA 142, section 3 as amended by 2000 PA 297,
sections 6, 11, 11f, 11g, 20, 22a,22b, 24, 26a, 31a, 31d, 32c, 32d, 39a,
41, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 68, 74, 81, 94a, 98, 99,
104a, 107, 108, and 147 as amended by 2002 PA 521, section 8b as added
House Bill No. 4401 as amended June 18, 2003 (1 of 2)
and sections 19, 38, and 105 as amended by 2002 PA 191, section 18 as
amended by 1999 PA 119, section 101 as amended by 2002 PA 476, and
section 166a as amended by 1996 PA 300, and by adding sections 20k, 22d,
22e, 22f, 31e, 34, 51e, 55a, 93, 98b, 99b, and 107a; and to repeal acts
and
parts of acts.>>
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
<<TITLE
An act to make appropriations to aid in the support of the public schools and the intermediate school districts of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to supplement the school aid fund by the levy and collection of certain taxes; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and parts of acts.>>
1 Sec. 3. (1) "Average daily attendance", for the purposes of
2 complying with federal law, means 92% of the membership as
3 defined in section 6(4).
4 (2) "Board" means the governing body of a district or public
5 school academy.
6 (3) "Center" means the center for educational performance and
7 information created in section 94a.
8 (4) (3) "Cooperative
education program" means a written
9 voluntary agreement between and among districts to provide
10 certain educational programs for pupils in certain groups of
11 districts. The written agreement shall be approved by all
12 affected districts at least annually and shall specify the
13 educational programs to be provided and the estimated number of
14 pupils from each district who will participate in the educational
15 programs.
16 (5) (4) "Department",
except in sections 67, 68, 107, and
17 108, means the department of education.
18 (6) (5) "District"
means a local school district
19 established under the revised school code, a local act school
20 district, or, except in sections 6(4), 6(6), 13, 20, 22a, 23,
1 31a, 32f, 105, and 105c, a public school academy. Except in
2 sections 6(4), 6(6), 13, 20, 22a, 105, and 105c, district also
3 includes a university school.
4 (7) (6) "District
of residence", except as otherwise
5 provided in this subsection, means the district in which a
6 pupil's custodial parent or parents or legal guardian resides.
7 For a pupil described in section 24b, the pupil's district of
8 residence is the district in which the pupil enrolls under that
9 section. For a pupil described in section 6(4)(d), the pupil's
10 district of residence shall be considered to be the district or
11 intermediate district in which the pupil is counted in membership
12 under that section. For a pupil under court jurisdiction who is
13 placed outside the district in which the pupil's custodial parent
14 or parents or legal guardian resides, the pupil's district of
15 residence shall be considered to be the educating district or
16 educating intermediate district.
17 (8) (7) "District
superintendent" means the superintendent
18 of a district, the chief administrator of a public school
19 academy, or the chief administrator of a university school.
20 Sec. 6. (1) "Center program" means a program operated by a
21 district or intermediate district for special education pupils
22 from several districts in programs for the autistically impaired,
23 trainable mentally impaired, severely mentally impaired, severely
24 multiply impaired, hearing impaired, physically and otherwise
25 health impaired, and visually impaired. Programs for emotionally
26 impaired pupils housed in buildings that do not serve regular
27 education pupils also qualify. Unless otherwise approved by the
1 department, a center program either shall serve all constituent
2 districts within an intermediate district or shall serve several
3 districts with less than 50% of the pupils residing in the
4 operating district. In addition, special education center
5 program pupils placed part-time in noncenter programs to comply
6 with the least restrictive environment provisions of section 612
7 of part B of the individuals with disabilities education act,
8 title VI of Public Law 91-230, 20 U.S.C. 1412, may be considered
9 center program pupils for pupil accounting purposes for the time
10 scheduled in either a center program or a noncenter program.
11 (2) "District pupil
retention and high school graduation
12 rate" means the proportion
of pupils who have not dropped out of
13 school in the
immediately preceding school year and is equal to 1
14 minus the quotient of
the number of pupils unaccounted for in the
15 immediately preceding
school year, as determined pursuant to
16 subsection (3),
divided by the pupils of the immediately
17 preceding school year annual completion and pupil dropout rate
18 that is calculated by the center pursuant to nationally
19 recognized standards.
20 (3) "District pupil
retention and high school graduation
21 report" means a report of the number of pupils, excluding migrant
22 and adult, in the district for the immediately preceding school
23 year, adjusted for those pupils who have transferred into or out
24 of the district ,
transferred out of the district, or
25 transferred to
alternative programs, and have graduated, to
26 determine the number
of pupils who are unaccounted for. The
27 number of pupils
unaccounted for shall be calculated as
1 determined by the
department who leave high school
with a
2 diploma or other credential.
3 (4) "Membership", except as otherwise provided in this act,
4 means for a district, public school academy, university school,
5 or intermediate district the sum of the product of .8 times the
6 number of full-time equated pupils in grades K to 12 actually
7 enrolled and in regular daily attendance on the pupil membership
8 count day for the current school year, plus the product of .2
9 times the final audited count from the supplemental count day for
10 the immediately preceding school year. All pupil counts used in
11 this subsection are as determined by the department and
12 calculated by adding the number of pupils registered for
13 attendance plus pupils received by transfer and minus pupils lost
14 as defined by rules promulgated by the superintendent, and as
15 corrected by a subsequent department audit. The amount of the
16 foundation allowance for a pupil in membership is determined
17 under section 20. In making the calculation of membership, all
18 of the following, as applicable, apply to determining the
19 membership of a district, public school academy, university
20 school, or intermediate district:
21 (a) Except as otherwise provided in this subsection, and
22 pursuant to subsection (6), a pupil shall be counted in
23 membership in the pupil's educating district or districts. An
24 individual pupil shall not be counted for more than a total of
25 1.0 full-time equated membership.
26 (b) If a pupil is educated in a district other than the
27 pupil's district of residence, if the pupil is not being educated
1 as part of a cooperative education program, if the pupil's
2 district of residence does not give the educating district its
3 approval to count the pupil in membership in the educating
4 district, and if the pupil is not covered by an exception
5 specified in subsection (6) to the requirement that the educating
6 district must have the approval of the pupil's district of
7 residence to count the pupil in membership, the pupil shall not
8 be counted in membership in any district.
9 (c) A special education pupil educated by the intermediate
10 district shall be counted in membership in the intermediate
11 district.
12 (d) A pupil placed by a court or state agency in an
13 on-grounds program of a juvenile detention facility, a child
14 caring institution, or a mental health institution, or a pupil
15 funded under section 53a, shall be counted in membership in the
16 district or intermediate district approved by the department to
17 operate the program.
18 (e) A pupil enrolled in the Michigan schools for the deaf and
19 blind shall be counted in membership in the pupil's intermediate
20 district of residence.
21 (f) A pupil enrolled in a vocational education program
22 supported by a millage levied over an area larger than a single
23 district or in an area vocational-technical education program
24 established pursuant to section 690 of the revised school code,
25 MCL 380.690, shall be counted only in the pupil's district of
26 residence.
27 (g) A pupil enrolled in a university school shall be counted
1 in membership in the university school.
2 (h) A pupil enrolled in a public school academy shall be
3 counted in membership in the public school academy.
4 (i) For a new district, university school, or public school
5 academy beginning its operation after December 31, 1994,
6 membership for the first 2 full or partial fiscal years of
7 operation shall be determined as follows:
8 (i) If operations begin before the pupil membership count day
9 for the fiscal year, membership is the average number of
10 full-time equated pupils in grades K to 12 actually enrolled and
11 in regular daily attendance on the pupil membership count day for
12 the current school year and on the supplemental count day for the
13 current school year, as determined by the department and
14 calculated by adding the number of pupils registered for
15 attendance on the pupil membership count day plus pupils received
16 by transfer and minus pupils lost as defined by rules promulgated
17 by the superintendent, and as corrected by a subsequent
18 department audit, plus the final audited count from the
19 supplemental count day for the current school year, and dividing
20 that sum by 2.
21 (ii) If operations begin after the pupil membership count day
22 for the fiscal year and not later than the supplemental count day
23 for the fiscal year, membership is the final audited count of the
24 number of full-time equated pupils in grades K to 12 actually
25 enrolled and in regular daily attendance on the supplemental
26 count day for the current school year.
27 (j) If a district is the authorizing body for a public school
1 academy, then, in the first school year in which pupils are
2 counted in membership on the pupil membership count day in the
3 public school academy, the determination of the district's
4 membership shall exclude from the district's pupil count for the
5 immediately preceding supplemental count day any pupils who are
6 counted in the public school academy on that first pupil
7 membership count day who were also counted in the district on the
8 immediately preceding supplemental count day.
9 (k) In a district, public school academy, university school,
10 or intermediate district operating an extended school year
11 program approved by the superintendent, a pupil enrolled, but not
12 scheduled to be in regular daily attendance on a pupil membership
13 count day, shall be counted.
14 (l) Pupils to be counted in membership shall be not less than
15 5 years of age on December 1 and less than 20 years of age on
16 September 1 of the school year except a special education pupil
17 who is enrolled and receiving instruction in a special education
18 program or service approved by the department and not having a
19 high school diploma who is less than 26 years of age as of
20 September 1 of the current school year shall be counted in
21 membership.
22 (m) An individual who has obtained a high school diploma
23 shall not be counted in membership. An individual who has
24 obtained a general education development (G.E.D.) certificate
25 shall not be counted in membership. An individual participating
26 in a job training program funded under former section 107a or a
27 jobs program funded under former section 107b, administered by
1 the Michigan strategic fund or the department of career
2 development, or participating in any successor of either of those
3 2 programs, shall not be counted in membership.
4 (n) If a pupil counted in membership in a public school
5 academy is also educated by a district or intermediate district
6 as part of a cooperative education program, the pupil shall be
7 counted in membership only in the public school academy, and the
8 instructional time scheduled for the pupil in the district or
9 intermediate district shall be included in the full-time equated
10 membership determination under subdivision (q). However, for
11 pupils receiving instruction in both a public school academy and
12 in a district or intermediate district but not as a part of a
13 cooperative education program, the following apply:
14 (i) If the public school academy provides instruction for at
15 least 1/2 of the class hours specified in subdivision (q), the
16 public school academy shall receive as its prorated share of the
17 full-time equated membership for each of those pupils an amount
18 equal to 1 times the product of the hours of instruction the
19 public school academy provides divided by the number of hours
20 specified in subdivision (q) for full-time equivalency, and the
21 remainder of the full-time membership for each of those pupils
22 shall be allocated to the district or intermediate district
23 providing the remainder of the hours of instruction.
24 (ii) If the public school academy provides instruction for
25 less than 1/2 of the class hours specified in subdivision (q),
26 the district or intermediate district providing the remainder of
27 the hours of instruction shall receive as its prorated share of
1 the full-time equated membership for each of those pupils an
2 amount equal to 1 times the product of the hours of instruction
3 the district or intermediate district provides divided by the
4 number of hours specified in subdivision (q) for full-time
5 equivalency, and the remainder of the full-time membership for
6 each of those pupils shall be allocated to the public school
7 academy.
8 (o) An individual less than 16 years of age as of September 1
9 of the current school year who is being educated in an
10 alternative education program shall not be counted in membership
11 if there are also adult education participants being educated in
12 the same program or classroom.
13 (p) The department shall give a uniform interpretation of
14 full-time and part-time memberships.
15 (q) The number of class hours used to calculate full-time
16 equated memberships shall be consistent with section 101(3). In
17 determining full-time equated memberships for pupils who are
18 enrolled in a postsecondary institution, a pupil shall not be
19 considered to be less than a full-time equated pupil solely
20 because of the effect of his or her postsecondary enrollment,
21 including necessary travel time, on the number of class hours
22 provided by the district to the pupil.
23 (r) Full-time equated memberships for pupils in kindergarten
24 shall be determined by dividing the number of class hours
25 scheduled and provided per year per kindergarten pupil by a
26 number equal to 1/2 the number used for determining full-time
27 equated memberships for pupils in grades 1 to 12.
1 (s) For a district, university school, or public school
2 academy that has pupils enrolled in a grade level that was not
3 offered by the district, university school, or public school
4 academy in the immediately preceding school year, the number of
5 pupils enrolled in that grade level to be counted in membership
6 is the average of the number of those pupils enrolled and in
7 regular daily attendance on the pupil membership count day and
8 the supplemental count day of the current school year, as
9 determined by the department. Membership shall be calculated by
10 adding the number of pupils registered for attendance in that
11 grade level on the pupil membership count day plus pupils
12 received by transfer and minus pupils lost as defined by rules
13 promulgated by the superintendent, and as corrected by subsequent
14 department audit, plus the final audited count from the
15 supplemental count day for the current school year, and dividing
16 that sum by 2.
17 (t) A pupil enrolled in a cooperative education program may
18 be counted in membership in the pupil's district of residence
19 with the written approval of all parties to the cooperative
20 agreement.
21 (u) If, as a result of a disciplinary action, a district
22 determines through the district's alternative or disciplinary
23 education program that the best instructional placement for a
24 pupil is in the pupil's home, if that placement is authorized in
25 writing by the district superintendent and district alternative
26 or disciplinary education supervisor, and if the district
27 provides appropriate instruction as described in this subdivision
1 to the pupil at the pupil's home, the district may count the
2 pupil in membership on a pro rata basis, with the proration based
3 on the number of hours of instruction the district actually
4 provides to the pupil divided by the number of hours specified in
5 subdivision (q) for full-time equivalency. For the purposes of
6 this subdivision, a district shall be considered to be providing
7 appropriate instruction if all of the following are met:
8 (i) The district provides at least 2 nonconsecutive hours of
9 instruction per week to the pupil at the pupil's home under the
10 supervision of a certificated teacher.
11 (ii) The district provides instructional materials,
12 resources, and supplies, except computers, that are comparable to
13 those otherwise provided in the district's alternative education
14 program.
15 (iii) Course content is comparable to that in the district's
16 alternative education program.
17 (iv) Credit earned is awarded to the pupil and placed on the
18 pupil's transcript.
19 (v) A pupil enrolled in an alternative or disciplinary
20 education program described in section 25 shall be counted in
21 membership in the district or public school academy that expelled
22 the pupil.
23 (w) If a pupil was enrolled in a public school academy on the
24 pupil membership count day, if the public school academy's
25 contract with its authorizing body is revoked, and if the pupil
26 enrolls in a district within 45 days after the pupil membership
27 count day, the department shall adjust the district's pupil count
1 for the pupil membership count day to include the pupil in the
2 count.
3 (x) For a public school academy that has been in operation
4 for at least 2 years and that suspended operations for at least 1
5 semester and is resuming operations, membership is the sum of the
6 product of .8 times the number of full-time equated pupils in
7 grades K to 12 actually enrolled and in regular daily attendance
8 on the first pupil membership count day or supplemental count
9 day, whichever is first, occurring after operations resume, plus
10 the product of .2 times the final audited count from the most
11 recent pupil membership count day or supplemental count day that
12 occurred before suspending operations, as determined by the
13 superintendent.
14 (y) If a district's membership for a particular fiscal year,
15 as otherwise calculated under this subsection, would be less than
16 1,550 pupils and the district has 4.5 or fewer pupils per square
17 mile, as determined by the department, the district's membership
18 shall be considered to be the membership figure calculated under
19 this subdivision. However,
beginning in 2003-2004, this
20 subdivision applies
only to districts located in the Lower
21 Peninsula. If a district educates and counts in its membership
22 pupils in grades 9 to 12 who reside in a contiguous district that
23 does not operate grades 9 to 12 and if 1 or both of the affected
24 districts request the department to use the determination allowed
25 under this sentence, the department shall include the square
26 mileage of both districts in determining the number of pupils per
27 square mile for each of the districts for the purposes of this
House Bill No. 4401 as amended June 18, 2003
1 subdivision. The membership figure calculated under this
2 subdivision is the greater of the following:
3 (i) The average of the district's membership for the
4 3-fiscal-year period ending with that fiscal year, calculated by
5 adding the district's actual membership for each of those 3
6 fiscal years, as otherwise calculated under this subsection, and
7 dividing the sum of those 3 membership figures by 3.
8 (ii) The district's actual membership for that fiscal year as
9 otherwise calculated under this subsection.
10 (z) If a public school academy that is not in its first or
11 second year of operation closes at the end of a school year and
12 does not reopen for the next school year, the department shall
13 adjust the membership count of the district in which a former
14 pupil of the public school academy enrolls and is in regular
15 daily attendance for the next school year to ensure that the
16 district receives the same amount of membership aid for the pupil
17 as if the pupil were counted in the district on the supplemental
18 count day of the preceding school year.
19 (5) "Public school academy" means a public school academy <<, urban high school academy,>> or
20 strict discipline academy operating under the revised school
21 code.
22 (6) "Pupil" means a person in membership in a public school.
23 A district must have the approval of the pupil's district of
24 residence to count the pupil in membership, except approval by
25 the pupil's district of residence shall not be required for any
26 of the following:
27 (a) A nonpublic part-time pupil enrolled in grades 1 to 12 in
1 accordance with section 166b.
2 (b) A pupil receiving 1/2 or less of his or her instruction
3 in a district other than the pupil's district of residence.
4 (c) A pupil enrolled in a public school academy or university
5 school.
6 (d) A pupil enrolled in a district other than the pupil's
7 district of residence under an intermediate district schools of
8 choice pilot program as described in section 91a or former
9 section 91 if the intermediate district and its constituent
10 districts have been exempted from section 105.
11 (e) A pupil enrolled in a district other than the pupil's
12 district of residence but within the same intermediate district
13 if the educating district enrolls nonresident pupils in
14 accordance with section 105.
15 (f) A pupil enrolled in a district other than the pupil's
16 district of residence if the pupil has been continuously enrolled
17 in the educating district since a school year in which the pupil
18 enrolled in the educating district under section 105 or 105c and
19 in which the educating district enrolled nonresident pupils in
20 accordance with section 105 or 105c.
21 (g) A pupil who has made an official written complaint or
22 whose parent or legal guardian has made an official written
23 complaint to law enforcement officials and to school officials of
24 the pupil's district of residence that the pupil has been the
25 victim of a criminal sexual assault or other serious assault, if
26 the official complaint either indicates that the assault occurred
27 at school or that the assault was committed by 1 or more other
1 pupils enrolled in the school the pupil would otherwise attend in
2 the district of residence or by an employee of the district of
3 residence. A person who intentionally makes a false report of a
4 crime to law enforcement officials for the purposes of this
5 subdivision is subject to section 411a of the Michigan penal
6 code, 1931 PA 328, MCL 750.411a, which provides criminal
7 penalties for that conduct. As used in this subdivision:
8 (i) "At school" means in a classroom, elsewhere on school
9 premises, on a school bus or other school-related vehicle, or at
10 a school-sponsored activity or event whether or not it is held on
11 school premises.
12 (ii) "Serious assault" means an act that constitutes a felony
13 violation of chapter XI of the Michigan penal code, 1931 PA 328,
14 MCL 750.81 to 750.90g, or that constitutes an assault and
15 infliction of serious or aggravated injury under section 81a of
16 the Michigan penal code, 1931 PA 328, MCL 750.81a.
17 (h) A pupil enrolled in a district located in a contiguous
18 intermediate district, as described in section 105c, if the
19 educating district enrolls those nonresident pupils in accordance
20 with section 105c.
21 (i) A pupil whose district of residence changed after the
22 pupil membership count day and before the supplemental count day
23 and who continues to be enrolled on the supplemental count day as
24 a nonresident in the district in which he or she was enrolled as
25 a resident on the pupil membership count day of the same school
26 year.
27 (j) A pupil enrolled in an alternative education program
1 operated by a district other than his or her district of
2 residence who meets 1 or more of the following:
3 (i) The pupil has been suspended or expelled from his or her
4 district of residence for any reason, including, but not limited
5 to, a suspension or expulsion under section 1310, 1311, or 1311a
6 of the revised school code, MCL 380.1310, 380.1311, and
7 380.1311a.
8 (ii) The pupil had previously dropped out of school.
9 (iii) The pupil is pregnant or is a parent.
10 (iv) The pupil has been referred to the program by a court.
11 (k) A pupil enrolled in the Michigan virtual high school, for
12 the pupil's enrollment in the Michigan virtual high school.
13 However, if a district that is not a first class district
14 educates pupils who reside in a first class district and if the
15 primary instructional site for those pupils is located within the
16 boundaries of the first class district, the educating district
17 must have the approval of the first class district to count those
18 pupils in membership. As used in this subsection, "first class
19 district" means a district organized as a school district of the
20 first class under the revised school code.
21 (7) "Pupil membership count day" of a district or
22 intermediate district means:
23 (a) Except as provided in subdivision (b), the fourth
24 Wednesday in September each school year.
25 (b) For a district or intermediate district maintaining
26 school during the entire school year, the following days:
27 (i) Fourth Wednesday in July.
1 (ii) Fourth Wednesday in September.
2 (iii) Second Wednesday in February.
3 (iv) Fourth Wednesday in April.
4 (8) "Pupils in grades K to 12 actually enrolled and in
5 regular daily attendance" means pupils in grades K to 12 in
6 attendance and receiving instruction in all classes for which
7 they are enrolled on the pupil membership count day or the
8 supplemental count day, as applicable. A pupil who is absent
9 from any of the classes in which the pupil is enrolled on the
10 pupil membership count day or supplemental count day and who does
11 not attend each of those classes during the 10 consecutive school
12 days immediately following the pupil membership count day or
13 supplemental count day, except for a pupil who has been excused
14 by the district, shall not be counted as 1.0 full-time equated
15 membership. In addition, a pupil who is excused from attendance
16 on the pupil membership count day or supplemental count day and
17 who fails to attend each of the classes in which the pupil is
18 enrolled within 30 calendar days after the pupil membership count
19 day or supplemental count day shall not be counted as 1.0
20 full-time equated membership. Pupils not counted as 1.0
21 full-time equated membership due to an absence from a class shall
22 be counted as a prorated membership for the classes the pupil
23 attended. For purposes of this subsection, "class" means a
24 period of time in 1 day when pupils and a certificated teacher or
25 legally qualified substitute teacher are together and instruction
26 is taking place.
27 (9) "Rule" means a rule promulgated pursuant to the
1 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
2 24.328.
3 (10) "The revised school code" means 1976 PA 451, MCL 380.1
4 to 380.1852.
5 (11) "School fiscal year" means a fiscal year that commences
6 July 1 and continues through June 30.
7 (12) "State board" means the state board of education.
8 (13) "Superintendent", unless the context clearly refers to a
9 district or intermediate district superintendent, means the
10 superintendent of public instruction described in section 3 of
11 article VIII of the state constitution of 1963.
12 (14) "Supplemental count day" means the day on which the
13 supplemental pupil count is conducted under section 6a.
14 (15) "Tuition pupil" means a pupil of school age attending
15 school in a district other than the pupil's district of residence
16 for whom tuition may be charged. Tuition pupil does not include
17 a pupil who is a special education pupil or a pupil described in
18 subsection (6)(d) to (k). A pupil's district of residence shall
19 not require a high school tuition pupil, as provided under
20 section 111, to attend another school district after the pupil
21 has been assigned to a school district.
22 (16) "State school aid fund" means the state school aid fund
23 established in section 11 of article IX of the state constitution
24 of 1963.
25 (17) "Taxable value" means the taxable value of property as
26 determined under section 27a of the general property tax act,
27 1893 PA 206, MCL 211.27a.
1 (18) "Textbook" means a book that is selected and approved by
2 the governing board of a district and that contains a
3 presentation of principles of a subject, or that is a literary
4 work relevant to the study of a subject required for the use of
5 classroom pupils, or another type of course material that forms
6 the basis of classroom instruction.
7 (19) (18) "Total
state aid" or "total state school aid"
8 means the total combined amount of all funds due to a district,
9 intermediate district, or other entity under all of the
10 provisions of this act.
11 (20) (19) "University
school" means an instructional
12 program operated by a public university under section 23 that
13 meets the requirements of section 23.
14 Sec. 8b. (1) The department shall assign a district code
15 to each public school academy that is authorized under the
16 revised school code and is eligible to receive funding under this
17 act within 30 days after a contract is submitted to the
18 department by the authorizing body of a public school academy.
19 (2) If the department does not assign a district code to a
20 public school academy in
a timely manner within the 30-day
21 period described in subsection (1), the department of treasury
22 may assign a temporary
district code to the public school academy
23 for the purpose of
making payments under this act. district
code
24 the department shall use to make payments under this act to the
25 newly authorized public school academy shall be a number that is
26 equivalent to the sum of the last district code assigned to a
27 public school academy located in the same county as the newly
1 authorized public school academy plus 1. However, if there is
2 not an existing public school academy located in the same county
3 as the newly authorized public school academy, then the district
4 code the department shall use to make payments under this act to
5 the newly authorized public school academy shall be a 5-digit
6 number that has the county code in which the public school
7 academy is located as its first 2 digits, 9 as its third digit, 0
8 as its fourth digit, and 1 as its fifth digit.
9 Sec. 11. (1) For
the fiscal year ending September 30,
10 2002, there is
appropriated for the public schools of this state
11 and certain other
state purposes relating to education the sum of
12 $10,990,148,200.00
from the state school aid fund established by
13 section 11 of article
IX of the state constitution of 1963 and
14 the sum of
$198,413,500.00 from the general fund. For
the fiscal
15 year ending September 30, 2003, there is appropriated for the
16 public schools of this state and certain other state purposes
17 relating to education the
sum of $11,259,441,400.00
18 $11,230,753,400.00 from the state school aid fund established by
19 section 11 of article IX of the state constitution of 1963, the
20 sum of $198,413,500.00 from the general fund, and the sum of
21 $700,000.00 from local
revenues. However, if legislation
22 authorizing the
transfer of $79,500,000.00 from the Michigan
23 employment security
act contingent fund, penalties and interest
24 subaccount, is not
enacted and in effect on or before October 1,
25 2002, there is instead
appropriated from the general fund for
26 2002-2003 the sum of
$122,656,500.00. For the fiscal year
ending
27 September 30, 2004, there is appropriated for the public schools
1 of this state and certain other state purposes relating to
2 education the sum of $11,246,667,400.00
$10,972,778,500.00 from
3 the state school aid fund established by section 11 of article IX
4 of the state constitution of 1963 and the sum of
5 $198,413,500.00 $306,800,000.00 from the general fund. From
6 the merit award trust fund established in section 3 of the
7 Michigan merit award scholarship act, 1999 PA 94, MCL 390.1453,
8 $17,000,000.00 is transferred and appropriated to the state
9 school aid fund for the fiscal year ending September 30, 2004.
10 Upon certification by the state treasurer that the school bond
11 loan fund debt owed by this state under 1961 PA 112, MCL 388.981
12 to 388.985, has been refinanced, the net proceeds from that
13 transaction shall be deposited in the state school aid fund. In
14 addition, available federal funds are appropriated for each of
15 those fiscal years.
16 (2) The appropriations under this section shall be allocated
17 as provided in this act. Money appropriated under this section
18 from the general fund and
from available federal funds shall be
19 expended to fund the purposes of this act before the expenditure
20 of money appropriated under this section from the state school
21 aid fund. If the maximum amount appropriated under this section
22 from the state school aid fund for a fiscal year exceeds the
23 amount necessary to fully fund allocations under this act from
24 the state school aid fund, that excess amount shall not be
25 expended in that state fiscal year and shall not lapse to the
26 general fund, but instead shall remain in the state school aid
27 fund.
1 (3) If the maximum amount appropriated under this section and
2 section 11f from the state school aid fund for a fiscal year
3 exceeds the amount available for expenditure from the state
4 school aid fund for that fiscal year, payments under sections
5 11f, 11g, 22a, 31d, 51a(2), and 51c shall be made in full. In
6 addition, for districts beginning operations after 1994-95 that
7 qualify for payments under section 22b, payments under section
8 22b shall be made so that the qualifying districts receive the
9 lesser of an amount equal to the 1994-95 foundation allowance of
10 the district in which the district beginning operations after
11 1994-95 is located or $5,500.00. The amount of the payment to be
12 made under section 22b for these qualifying districts shall be as
13 calculated under section 22a, with the balance of the payment
14 under section 22b being subject to the proration otherwise
15 provided under this
subsection and subsection (4). State For
16 proration before May 1, 2003, state payments under each of the
17 other sections of this act from all state funding sources shall
18 be prorated on an equal percentage basis as necessary to reflect
19 the amount available for expenditure from the state school aid
20 fund for that the
affected fiscal year. If additional
21 proration is necessary in 2002-2003 because of the outcome of any
22 revenue estimating conference occurring after May 1, 2003, and
23 for any proration necessary after 2002-2003, state payments under
24 each of the other sections of this act from all state funding
25 sources shall be prorated in the manner prescribed in subsection
26 (4) as necessary to reflect the amount available for expenditure
27 from the state school aid fund for the affected fiscal year.
1 However, if the department of treasury determines that proration
2 will be required under this subsection, the department of
3 treasury shall notify the state budget director, and the state
4 budget director shall not notify the legislature at least 30
5 calendar days or 6 legislative session days, whichever is more,
6 before the department reduces any payments under this act because
7 of the proration. During the 30 calendar day or 6 legislative
8 session day period after that notification by the state budget
9 director, the department shall not reduce any payments under this
10 act because of proration under this subsection. The legislature
11 may prevent proration from occurring by, within the 30 calendar
12 day or 6 legislative session day period after that notification
13 by the state budget director, enacting legislation appropriating
14 additional funds from the general fund, countercyclical budget
15 and economic stabilization fund, state school aid fund balance,
16 or another source to fund the amount of the projected shortfall.
17 (4) If additional proration is necessary in 2002-2003 because
18 of the outcome of any revenue estimating conference occurring
19 after May 1, 2003 and for any proration necessary after
20 2002-2003, the department shall calculate the proration in
21 district and intermediate district payments that is required
22 under subsection (3) as follows:
23 (a) The department shall recover 95% of the proration amount
24 required under subsection (3) by reducing payments to districts.
25 This reduction shall be made by calculating an equal dollar
26 amount per pupil as necessary to recover this percentage of the
27 proration amount and reducing each district's total state school
1 aid from state sources, other than payments under sections 11f,
2 11g, 22a, 31d, 51a(2), 51a(12), 51c, 53a, and 56, by that
3 amount.
4 (b) The department shall recover the remaining 5% of the
5 proration amount required under subsection (3) by reducing
6 payments to intermediate districts. This reduction shall be made
7 by reducing the payments to each intermediate district, other
8 than payments under sections 11f, 11g, 22a, 31d, 51a(2), 51a(12),
9 51c, 53a, and 56, on an equal percentage basis.
10 (5) For the fiscal year ending September 30, 2003 only, in
11 addition to the appropriations under subsection (1), the amount
12 of $61,000,000.00 is transferred and appropriated from the
13 general fund to the state school aid fund. This transfer
14 reflects the estimated net shortfall in state school aid fund
15 revenue as determined at the May 2003 consensus revenue
16 estimating conference and is appropriated to avoid any further
17 proration under subsection (3) due to that estimated shortfall.
18 (6) (4) Except
for the allocation under section 26a, any
19 general fund allocations under this act that are not expended by
20 the end of the state fiscal year are transferred to the state
21 school aid fund.
22 Sec. 11f. (1) In
addition to any other money appropriated
23 under this act, there
is appropriated from the state school aid
24 fund From the appropriations under section 11, there is
25 allocated for the purposes of this section an amount not to
26 exceed $32,000,000.00 each
fiscal year for the fiscal year
27 ending September 30, 2002, for the fiscal year ending September
1 30, 2003, for the fiscal year ending September 30, 2004 , and
2 for each succeeding fiscal year through the fiscal year ending
3 September 30, 2008. Payments under this section will cease after
4 September 30, 2008. These appropriations allocations
are for
5 paying the amounts described in subsection (4) to districts and
6 intermediate districts, other than those receiving a lump sum
7 payment under subsection (2), that were not plaintiffs in the
8 consolidated cases known as Durant v State of Michigan, Michigan
9 supreme court docket no. 104458-104492 and that, on or before
10 March 2, 1998, submitted to the state treasurer a board
11 resolution waiving any right or interest the district or
12 intermediate district has or may have in any claim or litigation
13 based on or arising out of any claim or potential claim through
14 September 30, 1997 that is or was similar to the claims asserted
15 by the plaintiffs in the consolidated cases known as Durant v
16 State of Michigan. The waiver resolution shall be in form and
17 substance as required
under subsection (8) (7). The state
18 treasurer is authorized to accept such a waiver resolution on
19 behalf of this state. The amounts described in this subsection
20 represent offers of settlement and compromise of any claim or
21 claims that were or could have been asserted by these districts
22 and intermediate districts, as described in this subsection.
23 (2) In addition to any other money appropriated under this
24 act, there was appropriated from the state school aid fund an
25 amount not to exceed $1,700,000.00 for the fiscal year ending
26 September 30, 1999. This appropriation was for paying the
27 amounts described in this subsection to districts and
1 intermediate districts that were not plaintiffs in the
2 consolidated cases known as Durant v State of Michigan; that, on
3 or before March 2, 1998, submitted to the state treasurer a board
4 resolution waiving any right or interest the district or
5 intermediate district had or may have had in any claim or
6 litigation based on or arising out of any claim or potential
7 claim through September 30, 1997 that is or was similar to the
8 claims asserted by the plaintiffs in the consolidated cases known
9 as Durant v State of Michigan; and for which the total amount
10 listed in section 11h and paid under this section was less than
11 $75,000.00. For a district or intermediate district qualifying
12 for a payment under this subsection, the entire amount listed for
13 the district or intermediate district in section 11h was paid in
14 a lump sum on November 15, 1998 or on the next business day
15 following that date. The amounts paid under this subsection
16 represent offers of settlement and compromise of any claim or
17 claims that were or could have been asserted by these districts
18 and intermediate districts, as described in this subsection.
19 (3) This section does not create any obligation or liability
20 of this state to any district or intermediate district that does
21 not submit a waiver resolution described in this section. This
22 section, any other provision of this act, and section 353e of the
23 management and budget act, 1984 PA 431, MCL 18.1353e, are not
24 intended to admit liability or waive any defense that is or would
25 be available to this state or its agencies, employees, or agents
26 in any litigation or future litigation with a district or
27 intermediate district.
1 (4) The amount paid each fiscal year to each district or
2 intermediate district under subsection (1) shall be 1/20 of the
3 total amount listed in section 11h for each listed district or
4 intermediate district that qualifies for a payment under
5 subsection (1). The amounts listed in section 11h and paid in
6 part under this subsection and in a lump sum under subsection (2)
7 are offers of settlement and compromise to each of these
8 districts or intermediate districts to resolve, in their
9 entirety, any claim or claims that these districts or
10 intermediate districts may have asserted for violations of
11 section 29 of article IX of the state constitution of 1963
12 through September 30, 1997, which claims are or were similar to
13 the claims asserted by the plaintiffs in the consolidated cases
14 known as Durant v State of Michigan. This section, any other
15 provision of this act, and section 353e of the management and
16 budget act, 1984 PA 431, MCL 18.1353e, shall not be construed to
17 constitute an admission of liability to the districts or
18 intermediate districts listed in section 11h or a waiver of any
19 defense that is or would have been available to the state or its
20 agencies, employees, or agents in any litigation or future
21 litigation with a district or intermediate district.
22 (5) The entire amount of each payment under subsection (1)
23 each fiscal year shall be paid on November 15 of the applicable
24 fiscal year or on the next business day following that date.
25 (6) Funds paid to a district or intermediate district under
26 this section shall be used only for textbooks, electronic
27 instructional material, software, technology, infrastructure or
1 infrastructure improvements, school buses, school security,
2 training for technology, or to pay debt service on voter-approved
3 bonds issued by the district or intermediate district before the
4 effective date of this section. For intermediate districts only,
5 funds paid under this section may also be used for other
6 nonrecurring instructional expenditures including, but not
7 limited to, nonrecurring instructional expenditures for
8 vocational education, or for debt service for acquisition of
9 technology for academic support services. Funds received by an
10 intermediate district under this section may be used for projects
11 conducted for the benefit of its constituent districts at the
12 discretion of the intermediate board. To the extent payments
13 under this section are used by a district or intermediate
14 district to pay debt service on debt payable from millage
15 revenues, and to the extent permitted by law, the district or
16 intermediate district may make a corresponding reduction in the
17 number of mills levied for that debt service.
18 (7) The
appropriations under this section are from the money
19 appropriated and
transferred to the state school aid fund from
20 the countercyclical
budget and economic stabilization fund under
21 section 353e(2) and
(3) of the management and budget act, 1984
22 PA 431, MCL 18.1353e.
23 (7) (8) The
resolution to be adopted and submitted by a
24 district or intermediate district under this section and section
25 11g shall read as follows:
26 "Whereas, the board of ____________________ (name of district
27 or intermediate district) desires to settle and compromise, in
1 their entirety, any claim or claims that the district (or
2 intermediate district) has or had for violations of section 29 of
3 article IX of the state constitution of 1963, which claim or
4 claims are or were similar to the claims asserted by the
5 plaintiffs in the consolidated cases known as Durant v State of
6 Michigan, Michigan supreme court docket no. 104458-104492.
7 Whereas, the district (or intermediate district) agrees to
8 settle and compromise these claims for the consideration
9 described in sections 11f and 11g of the state school aid act of
10 1979, 1979 PA 94, MCL 388.1611f and 388.1611g, and in the amount
11 specified for the district (or intermediate district) in
12 section 11h of the state school aid act of 1979, 1979 PA 94,
13 MCL 388.1611h.
14 Whereas, the board of _______________ (name of district or
15 intermediate district) is authorized to adopt this resolution.
16 Now, therefore, be it resolved as follows:
17 1. The board of ____________________ (name of district or
18 intermediate district) waives any right or interest it may have
19 in any claim or potential claim through September 30, 1997
20 relating to the amount of funding the district or intermediate
21 district is, or may have been, entitled to receive under the
22 state school aid act of 1979, 1979 PA 94, MCL 388.1601 to
23 388.1772, or any other source of state funding, by reason of the
24 application of section 29 of article IX of the state constitution
25 of 1963, which claims or potential claims are or were similar to
26 the claims asserted by the plaintiffs in the consolidated cases
27 known as Durant v State of Michigan, Michigan supreme court
1 docket no. 104458-104492.
2 2. The board of ____________________ (name of district or
3 intermediate district) directs its secretary to submit a
4 certified copy of this resolution to the state treasurer no later
5 than 5 p.m. eastern standard time on March 2, 1998, and agrees
6 that it will not take any action to amend or rescind this
7 resolution.
8 3. The board of ____________________ (name of district or
9 intermediate district) expressly agrees and understands that, if
10 it takes any action to amend or rescind this resolution, the
11 state, its agencies, employees, and agents shall have available
12 to them any privilege, immunity, and/or defense that would
13 otherwise have been available had the claims or potential claims
14 been actually litigated in any forum.
15 4. This resolution is contingent on continued payments by
16 the state each fiscal year as determined under sections 11f and
17 11g of the state school aid act of 1979, 1979 PA 94,
18 MCL 388.1611f and 388.1611g. However, this resolution shall be
19 an irrevocable waiver of any claim to amounts actually received
20 by the school district or intermediate school district under
21 sections 11f and 11g of the state school aid act of 1979.".
22 Sec. 11g. (1) From
the general fund money appropriated
23 appropriation in section 11, there is allocated an amount not to
24 exceed $40,000,000.00
$141,000.00 each fiscal year for the
25 fiscal year ending September 30, 2002, for the fiscal year
26 ending September 30,
2003, for the fiscal year ending
27 September 30, 2004, and for the fiscal year ending September 30,
1 2005. There is allocated an amount not to exceed $34,200,000.00
2 for each succeeding fiscal year through the fiscal year ending
3 September 30, 2013. Payments under this section will cease after
4 September 30, 2013. These appropriations allocations
are for
5 paying the amounts described in subsection (3) to districts and
6 intermediate districts, other than those receiving a lump sum
7 payment under section 11f(2), that were not plaintiffs in the
8 consolidated cases known as Durant v State of Michigan, Michigan
9 supreme court docket no. 104458-104492 and that, on or before
10 March 2, 1998, submitted to the state treasurer a waiver
11 resolution described in section 11f. The amounts paid under this
12 section represent offers of settlement and compromise of any
13 claim or claims that were or could have been asserted by these
14 districts and intermediate districts, as described in this
15 section.
16 (2) This section does not create any obligation or liability
17 of this state to any district or intermediate district that does
18 not submit a waiver resolution described in section 11f. This
19 section, any other provision of this act, and section 353e of the
20 management and budget act, 1984 PA 431, MCL 18.1353e, are not
21 intended to admit liability or waive any defense that is or would
22 be available to this state or its agencies, employees, or agents
23 in any litigation or future litigation with a district or
24 intermediate district regarding these claims or potential
25 claims.
26 (3) The amount paid each fiscal year to each district or
27 intermediate district under this section shall be the sum of the
1 following:
2 (a) 1/30 of the total amount listed in section 11h for the
3 district or intermediate district.
4 (b) If the district or intermediate district borrows money
5 and issues bonds under section 11i, an additional amount in each
6 fiscal year calculated by the department of treasury that, when
7 added to the amount described in subdivision (a), will cause the
8 net present value as of November 15, 1998 of the total of the 15
9 annual payments made to the district or intermediate district
10 under this section, discounted at a rate as determined by the
11 state treasurer, to equal the amount of the bonds issued by that
12 district or intermediate district under section 11i and that will
13 result in the total payments made to all districts and
14 intermediate districts in each fiscal year under this section
15 being no more than the amount appropriated under this section in
16 each fiscal year.
17 (4) The entire amount of each payment under this section each
18 fiscal year shall be paid on May 15 of the applicable fiscal year
19 or on the next business day following that date. If a district
20 or intermediate district borrows money and issues bonds under
21 section 11i, the district or intermediate district shall use
22 funds received under this section to pay debt service on bonds
23 issued under section 11i. If a district or intermediate district
24 does not borrow money and issue bonds under section 11i, the
25 district or intermediate district shall use funds received under
26 this section only for the following purposes, in the following
27 order of priority:
1 (a) First, to pay debt service on voter-approved bonds issued
2 by the district or intermediate district before the effective
3 date of this section.
4 (b) Second, to pay debt service on other limited tax
5 obligations.
6 (c) Third, for deposit into a sinking fund established by the
7 district or intermediate district under the revised school code.
8 (5) To the extent payments under this section are used by a
9 district or intermediate district to pay debt service on debt
10 payable from millage revenues, and to the extent permitted by
11 law, the district or intermediate district may make a
12 corresponding reduction in the number of mills levied for debt
13 service.
14 (6) A district or intermediate district may pledge or assign
15 payments under this section as security for bonds issued under
16 section 11i, but shall not otherwise pledge or assign payments
17 under this section.
18 Sec. 18. (1) Except as provided in another section of this
19 act, each district or other entity shall apply the money received
20 by the district or entity under this act to salaries and other
21 compensation of teachers and other employees, tuition,
22 transportation, lighting, heating, ventilation, water service,
23 the purchase of textbooks which are designated by the board to be
24 used in the schools under the board's charge, other supplies, and
25 any other school operating expenditures defined in section 7.
26 However, not more than 20% of the total amount received by a
27 district under article 2 or intermediate district under article 8
1 may be transferred by the board to either the capital projects
2 fund or to the debt retirement fund for debt service. The money
3 shall not be applied or taken for a purpose other than as
4 provided in this section. The department shall determine the
5 reasonableness of expenditures and may withhold from a recipient
6 of funds under this act the apportionment otherwise due for the
7 fiscal year following the discovery by the department of a
8 violation by the recipient.
9 (2) For the purpose of determining the reasonableness of
10 expenditures and whether a violation of this act has occurred,
11 the department shall require that each district and intermediate
12 district have an audit of the district's or intermediate
13 district's financial and pupil accounting records conducted at
14 least annually at the expense of the district or intermediate
15 district, as applicable, by a certified public accountant or by
16 the intermediate district superintendent, as may be required by
17 the department, or in the case of a district of the first class
18 by a certified public accountant, the intermediate
19 superintendent, or the auditor general of the city. An
20 intermediate district's annual financial audit shall be
21 accompanied by the intermediate district's pupil accounting
22 procedures report. A district's or intermediate district's
23 annual financial audit shall include an analysis of the financial
24 and pupil accounting data used as the basis for distribution of
25 state school aid. The pupil accounting records and reports,
26 audits, and management letters are subject to requirements
27 established in the auditing and accounting manuals approved and
1 published by the department. Except as otherwise provided in
2 this subsection, a district shall file the annual financial audit
3 reports with the intermediate district not later than 120 days
4 after the end of each school fiscal year and the intermediate
5 district shall forward the annual financial audit reports for its
6 constituent districts and for the intermediate district, and the
7 pupil accounting procedures report for the pupil membership count
8 day and supplemental count day, to the department not later than
9 November 15 of each year. The annual financial audit reports and
10 pupil accounting procedures reports shall be available to the
11 public in compliance with the freedom of information act, 1976
12 PA 442, MCL 15.231 to 15.246. Not later than December 1 of each
13 year, the department shall notify the state budget director and
14 the legislative appropriations subcommittees responsible for
15 review of the school aid budget of districts and intermediate
16 districts that have not filed an annual financial audit and pupil
17 accounting procedures report required under this section for the
18 school year ending in the immediately preceding fiscal year.
19 (3) Each By
November 15 of each year, each district and
20 intermediate district
shall file with the department by
21 November 15 of each
year an annual comprehensive financial
22 report, known as
"Form B", on a form and in the manner prescribed
23 by the department submit to the center, in a manner prescribed
24 by the center, annual comprehensive financial data consistent
25 with accounting manuals and charts of accounts approved and
26 published by the department.
27 (4) By September 30 of each year, each district and
1 intermediate district shall file with the department the special
2 education actual cost report, known as "SE-4096", on a form and
3 in the manner prescribed by the department.
4 (5) By October 7 of each year, each district and intermediate
5 district shall file with the department the transportation
6 expenditure report, known as "SE-4094", on a form and in the
7 manner prescribed by the department.
8 (6) (4) Not
later than July 1, 1999, the department shall
9 approve and publish pupil accounting and pupil auditing manuals.
10 The department shall review those manuals at least annually and
11 shall periodically update those manuals to reflect changes in
12 this act. The pupil accounting manuals in effect for the 1996-97
13 school year, including subsequent revisions issued by the
14 superintendent, shall be the interim manuals in effect until new
15 manuals are approved and published. However, the clarification
16 of class-by-class accounting provided in the department's April
17 15, 1998 memorandum on pupil accounting procedures shall be
18 excluded from the interim manuals.
19 (7) (5) If
a district that is a public school academy
20 purchases property using money received under this act, the
21 public school academy shall retain ownership of the property
22 unless the public school academy sells the property at fair
23 market value.
24 (8) (6) If
a district or intermediate district does not
25 comply with subsection
(2), or (3), (4), or (5), the department
26 shall withhold all state school aid due to the district or
27 intermediate district under this act, beginning with the next
1 payment due to the district or intermediate district, until the
2 district or intermediate district complies with subsections (2),
3 and (3), (4), and (5). If the district or
intermediate
4 district does not comply
with subsections (2), and (3), (4),
5 and (5) by the end of the fiscal year, the district or
6 intermediate district forfeits the amount withheld.
7 Sec. 19. (1) A
district shall comply with the any
8 requirements of sections 1204a, 1277, 1278, and 1280 of the
9 revised school code, MCL 380.1204a, 380.1277, 380.1278, and
10 380.1280, commonly referred to as "public act 25 of 1990" that
11 are not also required by the no child left behind act of 2001,
12 Public Law 107-110, 115 Stat. 1425, as determined by the
13 department.
14 (2) Each district and intermediate district shall provide to
15 the department, in a form and manner prescribed by the
16 department, information necessary for the development of an
17 annual progress report on the required implementation of sections
18 1204a, 1277, 1278, and 1280 of the revised school code,
19 MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly
20 referred to as
"public act 25 of 1990". Additionally, each
21 district and
intermediate district shall provide to the
22 department of
information technology, in a form and manner
23 prescribed by the
department of information technology, on the
24 achievement of
national education goals, and information
25 necessary for the
development of other performance reports.
26 (3) A district or intermediate district shall comply with all
27 applicable reporting requirements specified in the no child left
1 behind act of 2001, Public Law 107-110, 115 Stat. 1425. Data
2 provided to the center, in a form and manner prescribed by the
3 center, shall be aggregated and disaggregated as required by the
4 no child left behind act of 2001, Public Law 107-110, 115
5 Stat. 1425.
6 (4) Each district shall furnish to the center not later than
7 7 weeks after the pupil membership count day, in a manner
8 prescribed by the center, the information necessary for the
9 preparation of the district and high school graduation report.
10 The center shall calculate an annual graduation and pupil dropout
11 rate for each high school, each district, and this state, in
12 compliance with nationally recognized standards for these
13 calculations. The center shall report all graduation and dropout
14 rates to the senate and house education committees and
15 appropriations committees, the state budget director, and the
16 department not later than June 1 of each year.
17 (5) A district shall furnish to the center, in a manner
18 prescribed by the center, information related to educational
19 personnel as necessary for reporting required by state and
20 federal law.
21 (6) (3) If
a district or intermediate district fails to
22 meet the requirements of
subsection (2), and sections 1204a,
23 1277, and 1278 of the
revised school code, MCL 380.1204a,
24 380.1277, and
380.1278, (3), (4), or (5),
the department shall
25 withhold 5% of the total funds for which the district or
26 intermediate district qualifies under this act until the district
27 or intermediate district
complies with all of those sections
1 subsections. If the district or intermediate district does not
2 comply with all of those sections
subsections by the end of the
3 fiscal year, the department shall place the amount withheld in an
4 escrow account until the district or intermediate district
5 complies with all of
those sections subsections.
6 (7) (4) If
a school in a district is not accredited under
7 section 1280 of the revised school code, MCL 380.1280, or is not
8 making satisfactory progress toward meeting the standards for
9 that accreditation, the department shall withhold 5% of the total
10 funds for which the district qualifies under this act that are
11 attributable to pupils attending that school. The department
12 shall place the amount withheld from a district under this
13 subsection in an escrow account and shall not release the funds
14 to the district until the district submits to the department a
15 plan for achieving accreditation for each of the district's
16 schools that are not accredited under section 1280 of the revised
17 school code, MCL 380.1280, or are not making satisfactory
18 progress toward meeting the standards for that accreditation.
19 (8) Before publishing a list of schools or districts
20 determined to have failed to make adequate yearly progress as
21 required by the federal no child left behind act of 2001, Public
22 Law 107-110, 115 Stat. 1425, the department shall allow a school
23 or district to appeal that determination. The department shall
24 consider and act upon the appeal within 30 days after it is
25 submitted and shall not publish the list until after all appeals
26 have been considered and decided.
27 Sec. 20. (1) For
2001-2002, the basic foundation allowance
1 is $6,300.00 per
membership pupil. For 2002-2003 and
for
2 2003-2004, the basic foundation allowance is $6,700.00 per
3 membership pupil.
4 (2) The amount of each district's foundation allowance shall
5 be calculated as provided in this section, using a basic
6 foundation allowance in the amount specified in subsection (1).
7 (3) Except as otherwise provided in this section, the amount
8 of a district's foundation allowance shall be calculated as
9 follows, using in all calculations the total amount of the
10 district's foundation allowance as calculated before any
11 proration:
12 (a) Except as otherwise provided in this subsection, for a
13 district that in the immediately preceding state fiscal year had
14 a foundation allowance in an amount at least equal to the amount
15 of the basic foundation allowance for the immediately preceding
16 state fiscal year, the district shall receive a foundation
17 allowance in an amount equal to the sum of the district's
18 foundation allowance for the immediately preceding state fiscal
19 year plus the dollar amount of the adjustment from the
20 immediately preceding state fiscal year to the current state
21 fiscal year in the basic foundation allowance. However, for
22 2002-2003, the foundation allowance for a district under this
23 subdivision is an amount equal to the sum of the district's
24 foundation allowance for the immediately preceding state fiscal
25 year plus $200.00.
26 (b) For a district that in the 1994-95 state fiscal year had
27 a foundation allowance greater than $6,500.00, the district's
1 foundation allowance is an amount equal to the sum of the
2 district's foundation allowance for the immediately preceding
3 state fiscal year plus the lesser of the increase in the basic
4 foundation allowance for the current state fiscal year, as
5 compared to the immediately preceding state fiscal year, or the
6 product of the district's foundation allowance for the
7 immediately preceding state fiscal year times the percentage
8 increase in the United States consumer price index in the
9 calendar year ending in the immediately preceding fiscal year as
10 reported by the May revenue estimating conference conducted under
11 section 367b of the management and budget act, 1984 PA 431,
12 MCL 18.1367b. For 2002-2003, for a district that in the 1994-95
13 state fiscal year had a foundation allowance greater than
14 $6,500.00, the district's foundation allowance is an amount equal
15 to the sum of the district's foundation allowance for the
16 immediately preceding state fiscal year plus the lesser of
17 $200.00 or the product of the district's foundation allowance for
18 the immediately preceding state fiscal year times the percentage
19 increase in the United States consumer price index in the
20 calendar year ending in the immediately preceding fiscal year as
21 reported by the May revenue estimating conference conducted under
22 section 367b of the management and budget act, 1984 PA 431,
23 MCL 18.1367b.
24 (c) For a district that has a foundation allowance that is
25 not a whole dollar amount, the district's foundation allowance
26 shall be rounded up to the nearest whole dollar.
27 (d) Beginning in
2002-2003, for For a district that
1 receives received a payment under former section
22c for
2 2001-2002, the district's 2001-2002 foundation allowance shall be
3 considered to have been an amount equal to the sum of the
4 district's actual 2001-2002 foundation allowance as otherwise
5 calculated under this section plus the per pupil amount of the
6 district's equity payment for 2001-2002 under former section
7 22c.
8 (4) Except as otherwise provided in this subsection, the
9 state portion of a district's foundation allowance is an amount
10 equal to the district's foundation allowance or $6,500.00,
11 whichever is less, minus the difference between the product of
12 the taxable value per membership pupil of all property in the
13 district that is not a homestead or qualified agricultural
14 property times the lesser of 18 mills or the number of mills of
15 school operating taxes levied by the district in 1993-94 and the
16 quotient of the ad valorem property tax revenue of the district
17 captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax
18 increment finance authority act, 1980 PA 450, MCL 125.1801 to
19 125.1830, the local development financing act, 1986 PA 281,
20 MCL 125.2151 to 125.2174, or the brownfield redevelopment
21 financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by
22 the district's membership excluding special education pupils.
23 For a district described in subsection (3)(b), the state portion
24 of the district's foundation allowance is an amount equal to
25 $6,962.00 plus the difference between the district's foundation
26 allowance for the current state fiscal year and the district's
27 foundation allowance for 1998-99, minus the difference between
1 the product of the taxable value per membership pupil of all
2 property in the district that is not a homestead or qualified
3 agricultural property times the lesser of 18 mills or the number
4 of mills of school operating taxes levied by the district in
5 1993-94 and the quotient of the ad valorem property tax revenue
6 of the district captured under 1975 PA 197, MCL 125.1651 to
7 125.1681, the tax increment finance authority act, 1980 PA 450,
8 MCL 125.1801 to 125.1830, the local development financing act,
9 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield
10 redevelopment financing act, 1996 PA 381, MCL 125.2651 to
11 125.2672, divided by the district's membership excluding special
12 education pupils. For a district that has a millage reduction
13 required under section 31 of article IX of the state constitution
14 of 1963, the state portion of the district's foundation allowance
15 shall be calculated as if that reduction did not occur. The
16 $6,500.00 amount prescribed in this subsection shall be adjusted
17 each year by an amount equal to the dollar amount of the
18 difference between the basic foundation allowance for the current
19 state fiscal year and
$5,000.00, . However, beginning in
20 2002-2003, the
$6,500.00 amount prescribed in this subsection
21 shall be adjusted each
year by an amount equal to the dollar
22 amount of the
difference between the basic foundation allowance
23 for the current state
fiscal year and $5,000.00, minus
$200.00.
24 (5) The allocation calculated under this section for a pupil
25 shall be based on the foundation allowance of the pupil's
26 district of residence. However, for a pupil enrolled pursuant to
27 section 105 or 105c in a district other than the pupil's district
1 of residence, the allocation calculated under this section shall
2 be based on the lesser of the foundation allowance of the pupil's
3 district of residence or the foundation allowance of the
4 educating district. For a pupil in membership in a K-5, K-6, or
5 K-8 district who is enrolled in another district in a grade not
6 offered by the pupil's district of residence, the allocation
7 calculated under this section shall be based on the foundation
8 allowance of the educating district if the educating district's
9 foundation allowance is greater than the foundation allowance of
10 the pupil's district of residence. The calculation under this
11 subsection shall take into account a district's per pupil
12 allocation under section 20j(2).
13 (6) Subject to subsection (7) and section 22b(3) and except
14 as otherwise provided in this subsection, for pupils in
15 membership, other than special education pupils, in a public
16 school academy or a university school, the allocation calculated
17 under this section is an amount per membership pupil other than
18 special education pupils in the public school academy or
19 university school equal to the sum of the local school operating
20 revenue per membership pupil other than special education pupils
21 for the district in which the public school academy or university
22 school is located and the state portion of that district's
23 foundation allowance, or the sum of the basic foundation
24 allowance under
subsection (1) plus $500.00 $300.00, whichever
25 is less. However,
beginning in 2002-2003, this $500.00 amount
26 shall instead be
$300.00. Notwithstanding section
101(2), for a
27 public school academy
that begins operations in 2001-2002,
1 2002-2003 , or
2003-2004, as applicable, after the pupil
2 membership count day, the amount per membership pupil calculated
3 under this subsection shall be adjusted by multiplying that
4 amount per membership pupil by the number of hours of pupil
5 instruction provided by the public school academy after it begins
6 operations, as determined by the department, divided by the
7 minimum number of hours of pupil instruction required under
8 section 101(3). The result of this calculation shall not exceed
9 the amount per membership pupil otherwise calculated under this
10 subsection.
11 (7) If more than 25% of the pupils residing within a district
12 are in membership in 1 or more public school academies located in
13 the district, then the amount per membership pupil calculated
14 under this section for a public school academy located in the
15 district shall be reduced by an amount equal to the difference
16 between the product of the taxable value per membership pupil of
17 all property in the district that is not a homestead or qualified
18 agricultural property times the lesser of 18 mills or the number
19 of mills of school operating taxes levied by the district in
20 1993-94 and the quotient of the ad valorem property tax revenue
21 of the district captured under 1975 PA 197, MCL 125.1651 to
22 125.1681, the tax increment finance authority act, 1980 PA 450,
23 MCL 125.1801 to 125.1830, the local development financing act,
24 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield
25 redevelopment financing act, 1996 PA 381, MCL 125.2651 to
26 125.2672, divided by the district's membership excluding special
27 education pupils, in the school fiscal year ending in the current
1 state fiscal year, calculated as if the resident pupils in
2 membership in 1 or more public school academies located in the
3 district were in membership in the district. In order to receive
4 state school aid under this act, a district described in this
5 subsection shall pay to the authorizing body that is the fiscal
6 agent for a public school academy located in the district for
7 forwarding to the public school academy an amount equal to that
8 local school operating revenue per membership pupil for each
9 resident pupil in membership other than special education pupils
10 in the public school academy, as determined by the department.
11 (8) If a district does not receive an amount calculated under
12 subsection (9); if the number of mills the district may levy on a
13 homestead and qualified agricultural property under
14 section 1211(1) of the revised school code, MCL 380.1211, is 0.5
15 mills or less; and if the district elects not to levy those
16 mills, the district instead shall receive a separate supplemental
17 amount calculated under this subsection in an amount equal to the
18 amount the district would have received had it levied those
19 mills, as determined by the department of treasury. A district
20 shall not receive a separate supplemental amount calculated under
21 this subsection for a fiscal year unless in the calendar year
22 ending in the fiscal year the district levies 18 mills or the
23 number of mills of school operating taxes levied by the district
24 in 1993, whichever is less, on property that is not a homestead
25 or qualified agricultural property.
26 (9) For a district that had combined state and local revenue
27 per membership pupil in the 1993-94 state fiscal year of more
1 than $6,500.00 and that had fewer than 350 pupils in membership,
2 if the district elects not to reduce the number of mills from
3 which a homestead and qualified agricultural property are exempt
4 and not to levy school operating taxes on a homestead and
5 qualified agricultural property as provided in section 1211(1) of
6 the revised school code, MCL 380.1211, and not to levy school
7 operating taxes on all property as provided in section 1211(2) of
8 the revised school code, MCL 380.1211, there is calculated under
9 this subsection for 1994-95 and each succeeding fiscal year a
10 separate supplemental amount in an amount equal to the amount the
11 district would have received per membership pupil had it levied
12 school operating taxes on a homestead and qualified agricultural
13 property at the rate authorized for the district under
14 section 1211(1) of the revised school code, MCL 380.1211, and
15 levied school operating taxes on all property at the rate
16 authorized for the district under section 1211(2) of the revised
17 school code, MCL 380.1211, as determined by the department of
18 treasury. If in the calendar year ending in the fiscal year a
19 district does not levy 18 mills or the number of mills of school
20 operating taxes levied by the district in 1993, whichever is
21 less, on property that is not a homestead or qualified
22 agricultural property, the amount calculated under this
23 subsection will be reduced by the same percentage as the millage
24 actually levied compares to the 18 mills or the number of mills
25 levied in 1993, whichever is less.
26 (10) For a district that is formed or reconfigured after
27 June 1, 2002 by consolidation of 2 or more districts or by
1 annexation, the resulting district's foundation allowance under
2 this section beginning after the effective date of the
3 consolidation or
annexation shall be the lesser of an amount
4 equal to the sum of
the highest foundation allowance, as
5 calculated under this
section, among the original or affected
6 districts plus $50.00
or an amount equal to $6,500.00 adjusted by
7 the dollar amount of
the difference between the basic foundation
8 allowance under this
section for the current state fiscal year
9 and $5,000.00.
However, beginning in 2002-2003, the $6,500.00
10 amount prescribed in
this subsection shall be adjusted each year
11 by an amount equal to
the dollar amount of the difference between
12 the basic foundation
allowance for the current state fiscal year
13 and $5,000.00, minus
$200.00. average of the
foundation
14 allowances of each of the original or affected districts,
15 calculated as provided in this section, weighted as to the
16 percentage of pupils in total membership in the resulting
17 district who reside in the geographic area of each of the
18 original or affected districts.
19 (11) Each fraction used in making calculations under this
20 section shall be rounded to the fourth decimal place and the
21 dollar amount of an increase in the basic foundation allowance
22 shall be rounded to the nearest whole dollar.
23 (12) State payments related to payment of the foundation
24 allowance for a special education pupil are not calculated under
25 this section but are instead calculated under section 51a.
26 (13) To assist the legislature in determining the basic
27 foundation allowance for the subsequent state fiscal year, each
1 revenue estimating conference conducted under section 367b of the
2 management and budget act, 1984 PA 431, MCL 18.1367b, shall
3 calculate a pupil membership factor, a revenue adjustment factor,
4 and an index as follows:
5 (a) The pupil membership factor shall be computed by dividing
6 the estimated membership in the school year ending in the current
7 state fiscal year, excluding intermediate district membership, by
8 the estimated membership for the school year ending in the
9 subsequent state fiscal year, excluding intermediate district
10 membership. If a consensus membership factor is not determined
11 at the revenue estimating conference, the principals of the
12 revenue estimating conference shall report their estimates to the
13 house and senate subcommittees responsible for school aid
14 appropriations not later than 7 days after the conclusion of the
15 revenue conference.
16 (b) The revenue adjustment factor shall be computed by
17 dividing the sum of the estimated total state school aid fund
18 revenue for the subsequent state fiscal year plus the estimated
19 total state school aid fund revenue for the current state fiscal
20 year, adjusted for any change in the rate or base of a tax the
21 proceeds of which are deposited in that fund and excluding money
22 transferred into that fund from the countercyclical budget and
23 economic stabilization fund under section 353e of the management
24 and budget act, 1984 PA 431, MCL 18.1353e, by the sum of the
25 estimated total school aid fund revenue for the current state
26 fiscal year plus the estimated total state school aid fund
27 revenue for the immediately preceding state fiscal year, adjusted
1 for any change in the rate or base of a tax the proceeds of which
2 are deposited in that fund. If a consensus revenue factor is not
3 determined at the revenue estimating conference, the principals
4 of the revenue estimating conference shall report their estimates
5 to the house and senate subcommittees responsible for school aid
6 appropriations not later than 7 days after the conclusion of the
7 revenue conference.
8 (c) The index shall be calculated by multiplying the pupil
9 membership factor by the revenue adjustment factor. However, for
10 2003-2004 only, the index shall be 1.00. If a consensus index is
11 not determined at the revenue estimating conference, the
12 principals of the revenue estimating conference shall report
13 their estimates to the house and senate subcommittees responsible
14 for school aid appropriations not later than 7 days after the
15 conclusion of the revenue conference.
16 (14) If the principals at the revenue estimating conference
17 reach a consensus on the index described in subsection (13)(c),
18 the basic foundation allowance for the subsequent state fiscal
19 year shall be at least the amount of that consensus index
20 multiplied by the basic foundation allowance specified in
21 subsection (1).
22 (15) If at the January revenue estimating conference it is
23 estimated that pupil membership, excluding intermediate district
24 membership, for the subsequent state fiscal year will be greater
25 than 101% of the pupil membership, excluding intermediate
26 district membership, for the current state fiscal year, then it
27 is the intent of the legislature that the executive budget
1 proposal for the school aid budget for the subsequent state
2 fiscal year include a general fund/general purpose allocation
3 sufficient to support the membership in excess of 101% of the
4 current year pupil membership.
5 (16) For a district that had combined state and local revenue
6 per membership pupil in the 1993-94 state fiscal year of more
7 than $6,500.00, that had fewer than 7 pupils in membership in the
8 1993-94 state fiscal year, that has at least 1 child educated in
9 the district in the current state fiscal year, and that levies
10 the number of mills of school operating taxes authorized for the
11 district under section 1211 of the revised school code,
12 MCL 380.1211, a minimum amount of combined state and local
13 revenue shall be calculated for the district as provided under
14 this subsection. The minimum amount of combined state and local
15 revenue for 1999-2000 shall be $67,000.00 plus the district's
16 additional expenses to educate pupils in grades 9 to 12 educated
17 in other districts as determined and allowed by the department.
18 The minimum amount of combined state and local revenue under this
19 subsection, before adding the additional expenses, shall increase
20 each fiscal year by the same percentage increase as the
21 percentage increase in the basic foundation allowance from the
22 immediately preceding fiscal year to the current fiscal year.
23 The state portion of the minimum amount of combined state and
24 local revenue under this subsection shall be calculated by
25 subtracting from the minimum amount of combined state and local
26 revenue under this subsection the sum of the district's local
27 school operating revenue and an amount equal to the product of
1 the sum of the state portion of the district's foundation
2 allowance plus the amount calculated under section 20j times the
3 district's membership. As used in this subsection, "additional
4 expenses" means the district's expenses for tuition or fees, not
5 to exceed $6,500.00 as adjusted each year by an amount equal to
6 the dollar amount of the difference between the basic foundation
7 allowance for the current state fiscal year and $5,000.00, minus
8 $200.00, plus a room and board stipend not to exceed $10.00 per
9 school day for each pupil in grades 9 to 12 educated in another
10 district, as approved by
the department. However, beginning in
11 2002-2003, the
$6,500.00 amount prescribed in this subsection
12 shall be adjusted each
year by an amount equal to the dollar
13 amount of the
difference between the basic foundation allowance
14 for the current state
fiscal year and $5,000.00, minus $200.00.
15 (17) For a district in which 7.75 mills levied in 1992 for
16 school operating purposes in the 1992-93 school year were not
17 renewed in 1993 for school operating purposes in the 1993-94
18 school year, the district's combined state and local revenue per
19 membership pupil shall be recalculated as if that millage
20 reduction did not occur and the district's foundation allowance
21 shall be calculated as if its 1994-95 foundation allowance had
22 been calculated using that recalculated 1993-94 combined state
23 and local revenue per membership pupil as a base. A district is
24 not entitled to any retroactive payments for fiscal years before
25 2000-2001 due to this subsection.
26 (18) For a district in which an industrial facilities
27 exemption certificate that abated taxes on property with a state
1 equalized valuation greater than the total state equalized
2 valuation of the district at the time the certificate was issued
3 or $700,000,000.00, whichever is greater, was issued under 1974
4 PA 198, MCL 207.551 to 207.572, before the calculation of the
5 district's 1994-95 foundation allowance, the district's
6 foundation allowance for 2002-2003 is an amount equal to the sum
7 of the district's foundation allowance for 2002-2003, as
8 otherwise calculated under this section, plus $250.00.
9 (19) For a district that received a grant under former
10 section 32e for 2001-2002, the district's foundation allowance
11 for 2002-2003 shall be adjusted to be an amount equal to the sum
12 of the district's foundation allowance, as otherwise calculated
13 under this section, plus the quotient of the amount of the grant
14 award to the district for 2001-2002 under former section 32e
15 divided by the district's membership for 2001-2002, and the
16 district's foundation allowance for 2003-2004 shall be adjusted
17 to be an amount equal to the sum of the district's foundation
18 allowance, as otherwise calculated under this section, plus the
19 quotient of 89.84% of the amount of the grant award to the
20 district for 2001-2002 under former section 32e divided by the
21 district's membership for 2001-2002. A Except as otherwise
22 provided in this subsection, a district qualifying for a
23 foundation allowance
adjustment under this section subsection
24 shall use the funds resulting from this adjustment for at least 1
25 of grades K to 3 for purposes allowable under former section 32e
26 as in effect for 2001-2002. For an individual school or schools
27 operated by a district qualifying for a foundation allowance
House Bill No. 4401 as amended June 18, 2003
1 under this subsection that have been determined by the department
2 to meet the adequate yearly progress standards of the federal no
3 child left behind act of 2001, Public Law 107-110, 115
4 Stat. 1425, in both mathematics and English language arts at all
5 applicable grade levels for all applicable subgroups, the
6 district may submit to the department an application for
7 flexibility in using the funds resulting from this adjustment
8 that are attributable to the pupils in the school or schools.
9 The application shall identify the affected school or schools and
10 the affected funds and shall contain a plan for using the funds
11 for specific purposes identified by the district that are
12 designed to <<reduce class size,>> but that may be
13 different from the purposes otherwise allowable under this
14 subsection. The department shall approve the application if the
15 department determines that the purposes identified in the plan
16 are reasonably designed to <<reduce class size.>> If
17 the department does not act to approve or disapprove an
18 application within 30 days after it is submitted to the
19 department, the application is considered to be approved. If an
20 application for flexibility in using the funds is approved, the
21 district may use the funds identified in the application for any
22 purpose identified in the plan.
23 (20) For a district that is a qualifying school district with
24 a school reform board in place under part 5a of the revised
25 school code, MCL 380.371 to 380.376, the district's foundation
26 allowance for 2002-2003 shall be adjusted to be an amount equal
27 to the sum of the district's foundation allowance, as otherwise
House Bill No. 4401 as amended June 18, 2003
1 calculated under this section, plus the quotient of
2 $15,000,000.00 divided by the district's membership for
3 2002-2003. If a district ceases to meet the requirements of this
4 subsection, the department shall adjust the district's foundation
5 allowance in effect at that time based on a 2002-2003 foundation
6 allowance for the district that does not include the 2002-2003
7 adjustment under this subsection. This subsection only applies
8 for 2002-2003. Beginning in 2003-2004, the foundation allowance
9 of a district that received an adjustment under this subsection
10 for 2002-2003 shall be calculated as if that 2002-2003 adjustment
11 did not occur.
12 (21) For a district in which the school electors voted in
13 1993 on a proposal to override a millage reduction required under
14 section 31 of article IX of the state constitution of 1963 of 4.2
15 mills for operating purposes but did not approve the proposal,
16 the district's combined state and local revenue per membership
17 pupil shall be recalculated as if that millage reduction did not
18 occur and, beginning in 2003-2004, the district's foundation
19 allowance shall be calculated as if its 1994-95 foundation
20 allowance had been calculated using the recalculated 1993-94
21 combined state and local revenue per membership pupil as a base.
22 A district is not entitled to any retroactive payments for fiscal
23 years before 2003-2004 due to this subsection. However, a
24 district receiving an adjustment under this subsection shall not
25 receive more than <<$100.00>> for a fiscal year as a result of
26 this adjustment.
27 (22) (21) Payments
to districts, university schools, or
1 public school academies shall not be made under this section.
2 Rather, the calculations under this section shall be used to
3 determine the amount of state payments under section 22b.
4 (23) (22) If
an amendment to section 2 of article VIII of
5 the state constitution of 1963 allowing state aid to some or all
6 nonpublic schools is approved by the voters of this state, each
7 foundation allowance or per pupil payment calculation under this
8 section may be reduced.
9 (24) (23) As
used in this section:
10 (a) "Combined state and local revenue" means the aggregate of
11 the district's state school aid received by or paid on behalf of
12 the district under this section and the district's local school
13 operating revenue.
14 (b) "Combined state and local revenue per membership pupil"
15 means the district's combined state and local revenue divided by
16 the district's membership excluding special education pupils.
17 (c) "Current state fiscal year" means the state fiscal year
18 for which a particular calculation is made.
19 (d) "Homestead" means that term as defined in section 1211 of
20 the revised school code, MCL 380.1211.
21 (e) "Immediately preceding state fiscal year" means the state
22 fiscal year immediately preceding the current state fiscal year.
23 (f) "Local school operating revenue" means school operating
24 taxes levied under section 1211 of the revised school code,
25 MCL 380.1211.
26 (g) "Local school operating revenue per membership pupil"
27 means a district's local school operating revenue divided by the
1 district's membership excluding special education pupils.
2 (h) "Membership" means the definition of that term under
3 section 6 as in effect for the particular fiscal year for which a
4 particular calculation is made.
5 (i) "Qualified agricultural property" means that term as
6 defined in section 1211 of the revised school code,
7 MCL 380.1211.
8 (j) "School operating purposes" means the purposes included
9 in the operation costs of the district as prescribed in
10 sections 7 and 18.
11 (k) "School operating taxes" means local ad valorem property
12 taxes levied under section 1211 of the revised school code,
13 MCL 380.1211, and retained for school operating purposes.
14 (l) "Taxable value per membership pupil" means taxable value,
15 as certified by the department of treasury, for the calendar year
16 ending in the current state fiscal year divided by the district's
17 membership excluding special education pupils for the school year
18 ending in the current state fiscal year.
19 Sec. 20k. If the maximum amount appropriated under section
20 11 from the state school aid fund for a fiscal year exceeds the
21 amount available for expenditure from the state school aid fund
22 for that fiscal year so that a district's state school aid is
23 reduced pursuant to section 11(3), the payments calculated under
24 section 20j and made under section 22b shall be considered to be
25 foundation allowance payments for the purpose of determining the
26 maximum number of mills a district may levy under section 1211(3)
27 of the revised school code, MCL 380.1211. However, the amount to
1 be considered a foundation allowance payment for this purpose
2 shall not exceed the amount reduced from the district's state aid
3 payment as a result of the implementation of section 11(3).
4 Sec. 22a. (1) From the appropriation in section 11, there
5 is allocated an amount
not to exceed $7,022,000,000.00 for
6 2001-2002 and an
amount not to exceed $6,953,000,000.00 each
7 fiscal year for
2002-2003 and $6,842,300,000.00
for 2003-2004
8 for payments to districts, qualifying university schools, and
9 qualifying public school academies to guarantee each district,
10 qualifying university school, and qualifying public school
11 academy an amount equal to its 1994-95 total state and local per
12 pupil revenue for school operating purposes under section 11 of
13 article IX of the state constitution of 1963. Pursuant to
14 section 11 of article IX of the state constitution of 1963, this
15 guarantee does not apply to a district in a year in which the
16 district levies a millage rate for school district operating
17 purposes less than it levied in 1994. However, subsection (2)
18 applies to calculating the payments under this section. Funds
19 allocated under this section that are not expended in the state
20 fiscal year for which they were allocated, as determined by the
21 department, may be used to supplement the allocations under
22 sections 22b and 51c in order to fully fund those calculated
23 allocations for the same fiscal year.
24 (2) To ensure that a district receives an amount equal to the
25 district's 1994-95 total state and local per pupil revenue for
26 school operating purposes, there is allocated to each district a
27 state portion of the district's 1994-95 foundation allowance in
1 an amount calculated as follows:
2 (a) Except as otherwise provided in this subsection, the
3 state portion of a district's 1994-95 foundation allowance is an
4 amount equal to the district's 1994-95 foundation allowance or
5 $6,500.00, whichever is less, minus the difference between the
6 product of the taxable value per membership pupil of all property
7 in the district that is not a homestead or qualified agricultural
8 property times the lesser of 18 mills or the number of mills of
9 school operating taxes levied by the district in 1993-94 and the
10 quotient of the ad valorem property tax revenue of the district
11 captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax
12 increment finance authority act, 1980 PA 450, MCL 125.1801 to
13 125.1830, the local development financing act, 1986 PA 281,
14 MCL 125.2151 to 125.2174, or the brownfield redevelopment
15 financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by
16 the district's membership. For a district that has a millage
17 reduction required under section 31 of article IX of the state
18 constitution of 1963, the state portion of the district's
19 foundation allowance shall be calculated as if that reduction did
20 not occur.
21 (b) For a district that had a 1994-95 foundation allowance
22 greater than $6,500.00, the state payment under this subsection
23 shall be the sum of the amount calculated under subdivision (a)
24 plus the amount calculated under this subdivision. The amount
25 calculated under this subdivision shall be equal to the
26 difference between the district's 1994-95 foundation allowance
27 minus $6,500.00 and the current year hold harmless school
1 operating taxes per pupil. If the result of the calculation
2 under subdivision (a) is negative, the negative amount shall be
3 an offset against any state payment calculated under this
4 subdivision. If the result of a calculation under this
5 subdivision is negative, there shall not be a state payment or a
6 deduction under this subdivision. The taxable values per
7 membership pupil used in the calculations under this subdivision
8 are as adjusted by ad valorem property tax revenue captured under
9 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance
10 authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local
11 development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,
12 or the brownfield redevelopment financing act, 1996 PA 381,
13 MCL 125.2651 to 125.2672, divided by the district's membership.
14 (3) For pupils in membership in a qualifying public school
15 academy or qualifying university school, there is allocated under
16 this section each
fiscal year for 2001-2002, for 2002-2003, and
17 for 2003-2004 to the authorizing body that is the fiscal agent
18 for the qualifying public school academy for forwarding to the
19 qualifying public school academy, or to the board of the public
20 university operating the qualifying university school, an amount
21 equal to the 1994-95 per pupil payment to the qualifying public
22 school academy or qualifying university school under section 20.
23 (4) A district, qualifying university school, or qualifying
24 public school academy may use funds allocated under this section
25 in conjunction with any federal funds for which the district,
26 qualifying university school, or qualifying public school academy
27 otherwise would be eligible.
1 (5) For a district that is formed or reconfigured after
2 June 1, 2000 by consolidation of 2 or more districts or by
3 annexation, the resulting district's 1994-95 foundation allowance
4 under this section beginning after the effective date of the
5 consolidation or annexation shall be the average of the 1994-95
6 foundation allowances of each of the original or affected
7 districts, calculated as provided in this section, weighted as to
8 the percentage of pupils in total membership in the resulting
9 district in the state fiscal year in which the consolidation
10 takes place who reside in the geographic area of each of the
11 original districts. If an affected district's 1994-95 foundation
12 allowance is less than the 1994-95 basic foundation allowance,
13 the amount of that district's 1994-95 foundation allowance shall
14 be considered for the purpose of calculations under this
15 subsection to be equal to the amount of the 1994-95 basic
16 foundation allowance.
17 (6) As used in this section:
18 (a) "1994-95 foundation allowance" means a district's 1994-95
19 foundation allowance calculated and certified by the department
20 of treasury or the superintendent under former section 20a as
21 enacted in 1993 PA 336 and as amended by 1994 PA 283.
22 (b) "Current state fiscal year" means the state fiscal year
23 for which a particular calculation is made.
24 (c) "Current year hold harmless school operating taxes per
25 pupil" means the per pupil revenue generated by multiplying a
26 district's 1994-95 hold harmless millage by the district's
27 current year taxable value per membership pupil.
1 (d) "Hold harmless millage" means, for a district with a
2 1994-95 foundation allowance greater than $6,500.00, the number
3 of mills by which the exemption from the levy of school operating
4 taxes on a homestead and qualified agricultural property could be
5 reduced as provided in section 1211(1) of the revised school
6 code, MCL 380.1211, and the number of mills of school operating
7 taxes that could be levied on all property as provided in section
8 1211(2) of the revised school code, MCL 380.1211, as certified by
9 the department of treasury for the 1994 tax year.
10 (e) "Homestead" means that term as defined in section 1211 of
11 the revised school code, MCL 380.1211.
12 (f) "Membership" means the definition of that term under
13 section 6 as in effect for the particular fiscal year for which a
14 particular calculation is made.
15 (g) "Qualified agricultural property" means that term as
16 defined in section 1211 of the revised school code,
17 MCL 380.1211.
18 (h) "Qualifying public school academy" means a public school
19 academy that was in operation in the 1994-95 school year and is
20 in operation in the current state fiscal year.
21 (i) "Qualifying university school" means a university school
22 that was in operation in the 1994-95 school year and is in
23 operation in the current fiscal year.
24 (j) "School operating taxes" means local ad valorem property
25 taxes levied under section 1211 of the revised school code,
26 MCL 380.1211, and retained for school operating purposes.
27 (k) "Taxable value per membership pupil" means each of the
1 following divided by the district's membership:
2 (i) For the number of mills by which the exemption from the
3 levy of school operating taxes on a homestead and qualified
4 agricultural property may be reduced as provided in section
5 1211(1) of the revised school code, MCL 380.1211, the taxable
6 value of homestead and qualified agricultural property for the
7 calendar year ending in the current state fiscal year.
8 (ii) For the number of mills of school operating taxes that
9 may be levied on all property as provided in section 1211(2) of
10 the revised school code, MCL 380.1211, the taxable value of all
11 property for the calendar year ending in the current state fiscal
12 year.
13 Sec. 22b. (1) From the appropriation in section 11, there
14 is allocated an amount
not to exceed $2,368,000,000.00 for
15 2001-2002, an amount
not to exceed $2,883,500,000.00 for
16 2002-2003, and an
amount not to exceed $2,880,000,000.00
17 $2,881,399,900.00 for 2003-2004 for discretionary nonmandated
18 payments to districts under this section. Funds allocated under
19 this section that are not expended in the state fiscal year for
20 which they were allocated, as determined by the department, may
21 be used to supplement the allocations under sections 22a and 51c
22 in order to fully fund those calculated allocations for the same
23 fiscal year.
24 (2) Subject to
subsection (3) , subsections (5) to (9), and
25 section 11, the allocation to a district under this section shall
26 be an amount equal to the sum of the amounts calculated under
27 sections 20, 20j, 51a(2), 51a(3), and 51a(12), minus the sum of
1 the allocations to the district under sections 22a and 51c.
2 (3) In order to receive an allocation under this section,
3 each district shall administer in each grade level that it
4 operates in grades 1 to 5 a standardized assessment approved by
5 the department of grade-appropriate basic educational skills. A
6 district may use the Michigan literacy progress profile to
7 satisfy this requirement for grades 1 to 3. Also, if the revised
8 school code is amended to require annual assessments at
9 additional grade levels, in order to receive an allocation under
10 this section each district shall comply with that requirement.
11 (4) From the allocation in subsection (1), the department
12 shall expend funds to pay for necessary costs associated with
13 resolving matters pending in federal court impacting payments to
14 districts, including, but not limited to, expert witness fees.
15 Beginning in 2001-2002, from the allocation in subsection (1),
16 the department shall also pay up to $1,000,000.00 in litigation
17 costs incurred by this state associated with lawsuits filed by 1
18 or more districts or intermediate districts against this state.
19 If the allocation under this section is insufficient to fully
20 fund all payments required under this section, the payments under
21 this subsection shall be made in full before any proration of
22 remaining payments under this section.
23 (5) It is the intent of the legislature that all
24 constitutional obligations of this state have been fully funded
25 under sections 22a, 31d, 51a, and 51c. If a claim is made by an
26 entity receiving funds under this act that challenges the
27 legislative determination of the adequacy of this funding or
1 alleges that there exists an unfunded constitutional requirement,
2 the state budget director may escrow or allocate from the
3 discretionary funds for nonmandated payments under this section
4 the amount as may be necessary to satisfy the claim before making
5 any payments to districts under subsection (2). If funds are
6 escrowed, the escrowed funds are a work project appropriation and
7 the funds are carried forward into the following fiscal year.
8 The purpose of the work project is to provide for any payments
9 that may be awarded to districts as a result of litigation. The
10 work project shall be completed upon resolution of the
11 litigation.
12 (6) If the local claims review board or a court of competent
13 jurisdiction makes a final determination that this state is in
14 violation of section 29 of article IX of the state constitution
15 of 1963 regarding state payments to districts, the state budget
16 director shall use work project funds under subsection (5) or
17 allocate from the discretionary funds for nonmandated payments
18 under this section the amount as may be necessary to satisfy the
19 amount owed to districts before making any payments to districts
20 under subsection (2).
21 (7) If a claim is made in court that challenges the
22 legislative determination of the adequacy of funding for this
23 state's constitutional obligations or alleges that there exists
24 an unfunded constitutional requirement, any interested party may
25 seek an expedited review of the claim by the local claims review
26 board. If the claim exceeds $10,000,000.00, this state may
27 remove the action to the court of appeals, and the court of
House Bill No. 4401 as amended June 18, 2003
1 appeals shall have and shall exercise jurisdiction over the
2 claim.
3 (8) If payments resulting from a final determination by the
4 local claims review board or a court of competent jurisdiction
5 that there has been a violation of section 29 of article IX of
6 the state constitution of 1963 exceed the amount allocated for
7 discretionary nonmandated payments under this section, the
8 legislature shall provide for adequate funding for this state's
9 constitutional obligations at its next legislative session.
10 <<(9) If a lawsuit
challenging payments made to districts
11 related to
costs reimbursed by federal title XIX medicaid funds
12 is filed against this state during 2001-2002, 2002-2003, or
13 2003-2004, 50% of the amount allocated in subsection (1) not
14 previously paid out for 2002-2003, 2003-2004, and each succeeding fiscal
15 year is a work project appropriation and the funds are carried forward
16 into the following fiscal year. The purpose of the work project
17 is to provide for any payments that may be awarded to districts
18 as a result of the litigation. The work project shall be
19 completed upon resolution of the litigation. In addition, this
20 state reserves the right to terminate future federal title XIX
21 medicaid reimbursement payments to districts if the amount or
22 allocation of reimbursed funds is challenged in the lawsuit. As
23 used in this subsection, "title XIX" means title XIX of the
24 social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1396 to
25 1396r-6 and 1396r-8 to 1396v.>>
26 Sec. 22d. If the department determines that a district has
27 been required to pay interest and penalties due to a decision of
1 the state tax tribunal involving a loss in taxable value related
2 to property classified as industrial, the district shall receive
3 a payment under this section to reimburse the district for the
4 amount of interest and penalties the district is required to pay
5 in excess of $8,000,000.00, as determined by the department of
6 treasury.
7 Sec. 22e. (1) From the appropriations in section 11, there
8 is allocated an amount not to exceed $120,000.00 for 2003-2004
9 for interest payments to districts under this section.
10 (2) If the department determines that a district is required
11 to pay interest on any property tax refund ordered in the partial
12 consent judgment entered on November 6, 2001 in Hitachi Magnetics
13 Corporation v Home Township, Michigan tax tribunal, docket
14 nos. 190507 and 247733 (consolidated), the district shall receive
15 a payment under this section to reimburse the district for
16 interest paid, in an amount determined by the department of
17 treasury.
18 Sec. 22f. From the appropriation in section 11, there is
19 allocated an amount not to exceed $100.00 for 2003-2004 to
20 reimburse districts for payments made for the public schools'
21 share of the cost of examinations authorized under section 22a of
22 the general property tax act, 1893 PA 206, MCL 211.22a, under a
23 contract approved by the department of treasury. The public
24 schools' share for a calendar year shall be calculated by adding
25 that year's millage rate under the state education tax act, 1993
26 PA 331, MCL 211.901 to 211.906, and the millage rate levied that
27 year under section 1211 of the revised school code, MCL 380.1211,
1 on property that is not a homestead and not qualified
2 agricultural property, and dividing the sum by the total millage
3 rate levied that year on property that is not a homestead and not
4 qualified agricultural property. The department shall make
5 distributions under this section based on amounts determined by
6 the department of treasury.
7 Sec. 24. (1) Subject to subsection (2), from the
8 appropriation in section
11, there is allocated each fiscal year
9 for 2001-2002, for
2002-2003, and for 2003-2004 to the
educating
10 district or intermediate district an amount equal to 100% of the
11 added cost each fiscal year for educating all pupils assigned by
12 a court or the family independence agency to reside in or to
13 attend a juvenile detention facility or child caring institution
14 licensed by the family independence agency or the department of
15 consumer and industry services and approved by the department to
16 provide an on-grounds education program. The total amount to be
17 paid under this section for added cost shall not exceed
18 $8,400,000.00 for
2001-2002 and $8,900,000.00 each fiscal year
19 for 2002-2003 and $8,000,000.00 for 2003-2004. For the purposes
20 of this section, "added cost" shall be computed by deducting all
21 other revenue received under this act for pupils described in
22 this section from total costs, as approved by the department, in
23 whole or in part, for educating those pupils in the on-grounds
24 education program or in a program approved by the department that
25 is located on property adjacent to a juvenile detention facility
26 or child caring institution. Costs reimbursed by federal funds
27 are not included. For an on-grounds education program or a
1 program located on property adjacent to a juvenile detention
2 facility or child caring institution that was not in existence at
3 the time the allocations under this section were approved, the
4 department shall give approval for only that portion of the
5 educating district's or intermediate district's total costs that
6 will not prevent the allocated amounts under this section from
7 first being applied to 100% of the added cost of the programs
8 that were in existence at the time the allocations under this
9 section were approved.
10 (2) A district or intermediate district educating pupils
11 described in this section at a residential child caring
12 institution may operate, and receive funding under this section
13 for, a department-approved on-grounds educational program for
14 those pupils that is longer than 181 days, but not longer than
15 233 days, if the child caring institution was licensed as a child
16 caring institution and offered in 1991-92 an on-grounds
17 educational program that was longer than 181 days but not longer
18 than 233 days and that was operated by a district or intermediate
19 district.
20 (3) Special education pupils funded under section 53a shall
21 not be funded under this section.
22 Sec. 26a. From the general fund appropriation in section
23 11, there is allocated an
amount not to exceed $8,800,000.00 for
24 2001-2002 and an
amount not to exceed $10,174,000.00 each fiscal
25 year for 2002-2003 and
$18,700,000.00 for 2002-2003 and
an
26 amount not to exceed $27,910,000.00 for 2003-2004 to reimburse
27 districts, intermediate districts, and the state school aid fund
1 pursuant to section 12 of the Michigan renaissance zone act, 1996
2 PA 376, MCL 125.2692, for
taxes levied in 2001, 2002 , and
3 2003, respectively. This reimbursement shall be made by
4 adjusting payments under section 22a to eligible districts,
5 adjusting payments under section 56, 62, or 81 to eligible
6 intermediate districts, and adjusting the state school aid fund.
7 The adjustments shall be made not later than 60 days after the
8 department of treasury certifies to the department and to the
9 state budget director that the department of treasury has
10 received all necessary information to properly determine the
11 amounts due to each eligible recipient.
12 Sec. 31a. (1) From the state school aid fund money
13 appropriated in section
11, there is allocated for 2001-2002 an
14 amount not to exceed
$314,200,000.00 and there is allocated each
15 fiscal year for
2002-2003 and for 2003-2004 an
amount not to
16 exceed $314,200,000.00
$314,359,400.00 for payments to eligible
17 districts and eligible public school academies under this
18 section. Subject to
subsection (11) (12), the amount of the
19 additional allowance under this section shall be based on the
20 number of actual pupils in membership in the district or public
21 school academy who met the income eligibility criteria for free
22 breakfast, lunch, or milk in the immediately preceding state
23 fiscal year, as determined under the Richard B. Russell national
24 school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to
25 1753, 1755 to 1761, 1762a, 1765 to 1766a, 1769, 1769b to 1769c,
26 and 1769f to 1769h, and reported to the department by October 31
27 of the immediately preceding fiscal year and adjusted not later
1 than December 31 of the immediately preceding fiscal year.
2 However, for a public school academy that began operations as a
3 public school academy after the pupil membership count day of the
4 immediately preceding school year, the basis for the additional
5 allowance under this section shall be the number of actual pupils
6 in membership in the public school academy who met the income
7 eligibility criteria for free breakfast, lunch, or milk in the
8 current state fiscal year, as determined under the Richard
9 B. Russell national school lunch act.
10 (2) To be eligible to receive funding under this section,
11 other than funding under subsection (6), a district or public
12 school academy that has not been previously determined to be
13 eligible shall apply to the department, in a form and manner
14 prescribed by the department, and a district or public school
15 academy must meet all of the following:
16 (a) The sum of the district's or public school academy's
17 combined state and local revenue per membership pupil in the
18 current state fiscal year, as calculated under section 20, plus
19 the amount of the district's per pupil allocation under section
20 20j(2), is less than or equal to $6,500.00 adjusted by the dollar
21 amount of the difference between the basic foundation allowance
22 under section 20 for the current state fiscal year and $5,000.00,
23 . However, beginning
in 2002-2003, the $6,500.00 amount
24 prescribed in this
subdivision shall be adjusted each year by an
25 amount equal to the
dollar amount of the difference between the
26 basic foundation
allowance for the current state fiscal year and
27 $5,000.00, minus $200.00.
1 (b) The district or public school academy agrees to use the
2 funding only for purposes allowed under this section and to
3 comply with the program and accountability requirements under
4 this section.
5 (3) Except as otherwise provided in this subsection, an
6 eligible district or eligible public school academy shall receive
7 under this section for each membership pupil in the district or
8 public school academy who met the income eligibility criteria for
9 free breakfast, lunch, or milk, as determined under the Richard
10 B. Russell national school lunch act and as reported to the
11 department by October 31 of the immediately preceding fiscal year
12 and adjusted not later than December 31 of the immediately
13 preceding fiscal year, an amount per pupil equal to 11.5% of the
14 sum of the district's foundation allowance or public school
15 academy's per pupil amount calculated under section 20, plus the
16 amount of the district's per pupil allocation under section
17 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of
18 the difference between the basic foundation allowance under
19 section 20 for the current state fiscal year and $5,000.00, minus
20 $200.00, or of the public school academy's per membership pupil
21 amount calculated under section 20 for the current state fiscal
22 year. However,
beginning in 2002-2003, the $6,500.00 amount
23 prescribed in this
subsection shall be adjusted each year by an
24 amount equal to the
dollar amount of the difference between the
25 basic foundation
allowance for the current state fiscal year and
26 $5,000.00, minus
$200.00. A public school academy
that began
27 operations as a public school academy after the pupil membership
House Bill No. 4401 as amended June 18, 2003
1 count day of the immediately preceding school year shall receive
2 under this section for each membership pupil in the public school
3 academy who met the income eligibility criteria for free
4 breakfast, lunch, or milk, as determined under the Richard
5 B. Russell national school lunch act and as reported to the
6 department by October 31 of the current fiscal year and adjusted
7 not later than December 31 of the current fiscal year, an amount
8 per pupil equal to 11.5% of the public school academy's per
9 membership pupil amount calculated under section 20 for the
10 current state fiscal year.
11 (4) Except as otherwise provided in this section, a district
12 or public school academy receiving funding under this section
13 shall use that money only to provide instructional programs and
14 direct noninstructional services, including, but not limited to,
15 medical or counseling services, for at-risk pupils; for school
16 health clinics; and for
the purposes of subsection (5) or (6). ,
17 and A district or public school academy shall not use any of
18 that money for administrative costs or to supplant another
19 program or other funds, except for funds allocated to the
20 district or public school academy under this section in the
21 immediately preceding year and already being used by the district
22 or public school academy for at-risk pupils. The instruction or
23 direct noninstructional services provided under this section may
24 be conducted before or after regular school hours or by adding
25 extra school days to the
school year and may <<be conducted using
26 a>> <<include, but are not limited to, tutorial services, early
27 childhood programs to serve children age 0 to 5, and reading
House Bill No. 4401 as amended June 18, 2003
1 programs as described in former section 32f as in effect for
2 2001-2002. A tutorial method may be conducted>> with
3 paraprofessionals working under the supervision of a certificated
4 teacher. The ratio of pupils to paraprofessionals shall be
5 between 10:1 and 15:1. Only 1 certificated teacher is required
6 to supervise instruction using a tutorial method. As used in
7 this subsection, "to supplant another program" means to take the
8 place of a previously existing instructional program or direct
9 noninstructional services funded from a funding source other than
10 funding under this section.
11 (5) A Except
as otherwise provided in subsection (11), a
12 district or public school academy that receives funds under this
13 section and that operates a school breakfast program under
14 section 1272a of the revised school code, MCL 380.1272a, shall
15 use from the funds received under this section an amount, not to
16 exceed $10.00 per pupil for whom the district or public school
17 academy receives funds under this section, necessary to operate
18 the school breakfast program.
19 (6) From the funds allocated under subsection (1), there is
20 allocated for
2001-2002 an amount not to exceed $2,400,000.00 to
21 support teen health
centers. These 2001-2002 funds shall be
22 distributed to
existing teen health centers in a manner
23 determined by the
department in collaboration with the department
24 of community health.
From the funds allocated under
25 subsection (1), there
is allocated each fiscal year for 2002-2003
26 and for beginning with 2003-2004 an amount not to
exceed
27 $3,743,000.00 for
competitive grants to support teen health
1 centers. These grants for
2002-2003 and 2003-2004 shall be
2 awarded for 3 consecutive years beginning with 2003-2004 in a
3 form and manner approved jointly by the department and the
4 department of community health. Each grant recipient shall
5 remain in compliance with the terms of the grant award or shall
6 forfeit the grant award for the duration of the 3-year period
7 after the noncompliance. If any funds allocated under this
8 subsection are not used for the purposes of this subsection for
9 the fiscal year in which they are allocated, those unused funds
10 shall be used that fiscal year to avoid or minimize any proration
11 that would otherwise be
required under subsection (11) (12) for
12 that fiscal year.
13 (7) Each district or public school academy receiving funds
14 under this section shall submit to the department by July 15 of
15 each fiscal year a report, not to exceed 10 pages, on the usage
16 by the district or public school academy of funds under this
17 section, which report shall include at least a brief description
18 of each program conducted by the district or public school
19 academy using funds under this section, the amount of funds under
20 this section allocated to each of those programs, the number of
21 at-risk pupils eligible for free or reduced price school lunch
22 who were served by each of those programs, and the total number
23 of at-risk pupils served by each of those programs. If a
24 district or public school academy does not comply with this
25 subsection, the department shall withhold an amount equal to the
26 August payment due under this section until the district or
27 public school academy complies with this subsection. If the
1 district or public school academy does not comply with this
2 subsection by the end of the state fiscal year, the withheld
3 funds shall be forfeited to the school aid fund.
4 (8) In order to receive funds under this section, a district
5 or public school academy shall allow access for the department or
6 the department's designee to audit all records related to the
7 program for which it receives those funds. The district or
8 public school academy shall reimburse the state for all
9 disallowances found in the audit.
10 (9) Subject to
subsections (5), and (6), and (11), any
11 district may use up to 100% of the funds it receives under this
12 section to reduce the ratio of pupils to teachers in grades K-6,
13 or any combination of those grades, in school buildings in which
14 the percentage of pupils described in subsection (1) exceeds the
15 district's aggregate percentage of those pupils. Subject to
16 subsections (5), and
(6), and (11), if a district obtains a
17 waiver from the department, the district may use up to 100% of
18 the funds it receives under this section to reduce the ratio of
19 pupils to teachers in grades K-6, or any combination of those
20 grades, in school buildings in which the percentage of pupils
21 described in subsection (1) is at least 60% of the district's
22 aggregate percentage of those pupils and at least 30% of the
23 total number of pupils enrolled in the school building. To
24 obtain a waiver, a district must apply to the department and
25 demonstrate to the satisfaction of the department that the class
26 size reductions would be in the best interests of the district's
27 at-risk pupils.
House Bill No. 4401 as amended June 18, 2003
1 (10) A district or public school academy may use funds
2 received under this section for adult high school completion,
3 general education development (G.E.D.) test preparation, <<
4 >> or adult basic education programs
5 described in section 107.
6 (11) For an individual school or schools operated by a
7 district or public school academy receiving funds under this
8 section that have been determined by the department to meet the
9 adequate yearly progress standards of the federal no child left
10 behind act of 2001, Public Law 107-110, 115 Stat. 1425, in both
11 mathematics and English language arts at all applicable grade
12 levels for all applicable subgroups, the district or public
13 school academy may submit to the department an application for
14 flexibility in using the funds received under this section that
15 are attributable to the pupils in the school or schools. The
16 application shall identify the affected school or schools and the
17 affected funds and shall contain a plan for using the funds for
18 specific purposes identified by the district that are designed to
19 benefit at-risk pupils in the school, but that may be different
20 from the purposes otherwise allowable under this section. The
21 department shall approve the application if the department
22 determines that the purposes identified in the plan are
23 reasonably designed to benefit at-risk pupils in the school. If
24 the department does not act to approve or disapprove an
25 application within 30 days after it is submitted to the
26 department, the application is considered to be approved. If an
27 application for flexibility in using the funds is approved, the
1 district may use the funds identified in the application for any
2 purpose identified in the plan.
3 (12) (11) If
necessary, and before any proration required
4 under section 11, the department shall prorate payments under
5 this section by reducing the amount of the per pupil payment
6 under this section by a dollar amount calculated by determining
7 the amount by which the amount necessary to fully fund the
8 requirements of this section exceeds the maximum amount allocated
9 under this section and then dividing that amount by the total
10 statewide number of pupils who met the income eligibility
11 criteria for free breakfast, lunch, or milk in the immediately
12 preceding fiscal year, as described in subsection (1).
13 (12) Funds
allocated under this section that are unexpended
14 and unencumbered at
the end of the fiscal year for which they
15 were allocated shall
be carried forward and used in subsequent
16 fiscal years to avoid
or minimize any proration that would
17 otherwise be required
under subsection (11).
18 (13) If a district is formed by consolidation after June 1,
19 1995, and if 1 or more of the original districts was not eligible
20 before the consolidation for an additional allowance under this
21 section, the amount of the additional allowance under this
22 section for the consolidated district shall be based on the
23 number of pupils described in subsection (1) enrolled in the
24 consolidated district who reside in the territory of an original
25 district that was eligible before the consolidation for an
26 additional allowance under this section.
27 (14) A district or public school academy that does not meet
1 the eligibility requirement under subsection (2)(a) is eligible
2 for funding under this section if at least 1/4 of the pupils in
3 membership in the district or public school academy met the
4 income eligibility criteria for free breakfast, lunch, or milk in
5 the immediately preceding state fiscal year, as determined and
6 reported as described in subsection (1), and at least 4,500 of
7 the pupils in membership in the district or public school academy
8 met the income eligibility criteria for free breakfast, lunch, or
9 milk in the immediately preceding state fiscal year, as
10 determined and reported as described in subsection (1). A
11 district or public school academy that is eligible for funding
12 under this section because the district meets the requirements of
13 this subsection shall receive under this section for each
14 membership pupil in the district or public school academy who met
15 the income eligibility criteria for free breakfast, lunch, or
16 milk in the immediately preceding fiscal year, as determined and
17 reported as described in subsection (1), an amount per pupil
18 equal to 5.75% for
2001-2002 and 11.5% for 2002-2003 and
19 subsequent fiscal
years 11.5% of the sum of the
district's
20 foundation allowance or public school academy's per pupil
21 allocation under section 20, plus the amount of the district's
22 per pupil allocation under section 20j(2), not to exceed
23 $6,500.00 adjusted by the dollar amount of the difference between
24 the basic foundation allowance under section 20 for the current
25 state fiscal year and
$5,000.00, . However, beginning in
26 2002-2003, the
$6,500.00 amount prescribed in this subsection
27 shall be adjusted each
year by an amount equal to the dollar
1 amount of the
difference between the basic foundation allowance
2 for the current state
fiscal year and $5,000.00, minus
$200.00.
3 (15) As used in this section, "at-risk pupil" means a pupil
4 for whom the district has documentation that the pupil meets at
5 least 2 of the following criteria: is a victim of child abuse or
6 neglect; is below grade level in English language and
7 communication skills or mathematics; is a pregnant teenager or
8 teenage parent; is eligible for a federal free or reduced-price
9 lunch subsidy; has atypical behavior or attendance patterns; or
10 has a family history of school failure, incarceration, or
11 substance abuse. For pupils for whom the results of at least the
12 applicable Michigan education assessment program (MEAP) test have
13 been received, at-risk pupil also includes a pupil who does not
14 meet the other criteria under this subsection but who did not
15 achieve at least a score of moderate on the most recent MEAP
16 reading test for which results for the pupil have been received,
17 did not achieve at least a score of moderate on the most recent
18 MEAP mathematics test for which results for the pupil have been
19 received, or did not achieve at least a score of novice on the
20 most recent MEAP science test for which results for the pupil
21 have been received. For pupils in grades K-3, at-risk pupil also
22 includes a pupil who is at risk of not meeting the district's
23 core academic curricular objectives in English language,
24 communication skills, or mathematics.
25 Sec. 31d. (1) From
the state school aid fund
26 appropriation appropriations in section 11, there is
allocated
27 an amount not to exceed $16,477,700.00
for 2001-2002 and an
1 amount not to exceed
$17,337,200.00 each fiscal year for
2 2002-2003 and for
2003-2004, and from the general fund
3 appropriation in
section 11, there is allocated an amount not to
4 exceed $722,300.00 for
2001-2002 and an amount not to exceed
5 $762,800.00 each
fiscal year for 2002-2003 and $18,315,000.00
6 for 2002-2003 and an amount not to exceed $21,300,000.00 for
7 2003-2004 for the purpose
of making payments to districts ,
8 intermediate
districts, and other eligible
entities under this
9 section.
10 (2) The amounts allocated from state sources under this
11 section shall be used to pay the amount necessary to reimburse
12 districts for 6.0127% of the necessary costs of the state
13 mandated portion of the school lunch programs provided by those
14 districts. The amount due to each district under this section
15 shall be computed by the department using the methods of
16 calculation adopted by the Michigan supreme court in the
17 consolidated cases known as Durant v State of Michigan, Michigan
18 supreme court docket no. 104458-104492.
19 (3) The payments made under this section include all state
20 payments made to districts so that each district receives at
21 least 6.0127% of the necessary costs of operating the state
22 mandated portion of the school lunch program in a fiscal year.
23 (4) The payments made under this section to districts and
24 other eligible entities that are not required under section 1272a
25 of the revised school code, MCL 380.1272a, to provide a school
26 lunch program shall be in an amount not to exceed $10.00 per
27 pupil plus 5 cents for each free lunch and 2 cents for each
1 reduced price lunch provided, as determined by the department.
2 (5) (4) From
the federal funds appropriated in section 11,
3 there is allocated each
fiscal year for 2002-2003 and for
4 2003-2004 all available federal funding, estimated at
5 $272,125,000.00, each
fiscal year, for the national school
6 lunch program and all available federal funding, estimated at
7 $2,506,000.00, for the emergency food assistance program.
8 (6) (5) Notwithstanding
section 17b, payments to
9 intermediate
districts and other eligible
entities other than
10 districts under this section shall be paid on a schedule
11 determined by the department.
12 Sec. 31e. From the appropriations in section 11, there is
13 allocated an amount not to exceed $2,430,000.00 for 2002-2003 for
14 the purpose of making payments to districts to reimburse for the
15 cost of providing breakfast. The funds appropriated under this
16 section shall be made available to all eligible applicant
17 districts as determined under section 702 of 2002 PA 522.
18 Sec. 32c. (1) From
the general fund allocation in
19 section 32a(1) appropriation in section 11, there is
allocated
20 an amount not to exceed $2,000,000.00
each fiscal year for
21 2001-2002, for
2002-2003, and $1,900,000.00
for 2003-2004 to the
22 department for grants for community-based collaborative
23 prevention services designed to foster positive parenting skills;
24 improve parent/child interaction, especially for children 0-3
25 years of age; promote access to needed community services;
26 increase local capacity to serve families at risk; improve school
27 readiness; and support healthy family environments that
1 discourage alcohol, tobacco, and other drug use. The allocation
2 under this section is to fund secondary prevention programs as
3 defined by the children's trust fund for the prevention of child
4 abuse and neglect.
5 (2) The funds allocated under subsection (1) shall be
6 distributed through a joint request for proposals process
7 established by the department in conjunction with the children's
8 trust fund and the state's interagency systems reform workgroup.
9 Projects funded with grants awarded under this section shall meet
10 all of the following:
11 (a) Be secondary prevention initiatives and voluntary to
12 consumers. This appropriation is not intended to serve the needs
13 of children for whom and families in which neglect or abuse has
14 been substantiated.
15 (b) Demonstrate that the planned services are part of a