SB-1069, As Passed House, June 9, 2004
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 1069
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 3, 4, 6, 11, 11b, 11f, 11g, 11j, 13, 15,
18a, 19, 20, 21b, 22a, 22b, 24, 26, 26a, 31a, 31d, 32c, 32d, 32f,
32j, 37, 39a, 41, 41a, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62,
74, 81, 94a, 98, 98b, 99, 101, 104a, 107, 147, 152, 158b, 163,
and 166a (MCL 388.1603, 388.1604, 388.1606, 388.1611, 388.1611b,
388.1611f, 388.1611g, 388.1611j, 388.1613, 388.1615, 388.1618a,
388.1619, 388.1620, 388.1621b, 388.1622a, 388.1622b, 388.1624,
388.1626, 388.1626a, 388.1631a, 388.1631d, 388.1632c, 388.1632d,
388.1632f, 388.1632j, 388.1637, 388.1639a, 388.1641, 388.1641a,
388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656,
388.1657, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1694a,
388.1698, 388.1698b, 388.1699, 388.1701, 388.1704a, 388.1707,
388.1747, 388.1752, 388.1758b, 388.1763, and 388.1766a), sections
3, 6, 11f, 11g, 11j, 19, 20, 22a, 22b, 24, 31a, 31d, 32c, 32d,
39a, 41, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 74, 81, 98, 99,
101, 104a, 107, 147, and 166a as amended and sections 32j, 41a,
and 98b as added by 2003 PA 158, section 4 as amended by 1995 PA
130, sections 11, 11b, and 26a as amended by 2003 PA 236, section
13 as amended by 1999 PA 119, sections 15 and 18a as amended by
1996 PA 300, sections 21b, 152, and 163 as amended by 2000 PA
297, section 26 as amended by 1997 PA 93, section 32f as amended
by 2002 PA 521, section 37 as amended by 2002 PA 191, section 94a
as amended by 2003 PA 180, and section 158b as added by 1994 PA
283, and by adding sections 20l, 22d, 32k, 107b, and 146; and to
repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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) "Cooperative education program" means a written voluntary
9 agreement between and among districts to provide certain
10 educational programs for pupils in certain groups of districts.
11 The written agreement shall be approved by all affected districts
12 at least annually and shall specify the educational programs to
13 be provided and the estimated number of pupils from each district
14 who will participate in the educational programs.
1 (5)
"Department", except in sections 67, 68, 107 , and
2 108, and 107b, means the department of education.
3 (6) "District" means a local school district established
4 under the revised school code, a local act school district, or,
5 except in sections 6(4),
6(6), 13, 20, 22a, 23, 31a, 32f, 105,
6 and 105c, a public school academy. Except in sections 6(4),
7 6(6), 13, 20, 22a, 105, and 105c, district also includes a
8 university school.
9 (7) "District of residence", except as otherwise provided in
10 this subsection, means the district in which a pupil's custodial
11 parent or parents or legal guardian resides. For a pupil
12 described in section 24b, the pupil's district of residence is
13 the district in which the pupil enrolls under that section. For
14 a pupil described in section 6(4)(d), the pupil's district of
15 residence shall be considered to be the district or intermediate
16 district in which the pupil is counted in membership under that
17 section. For a pupil under court jurisdiction who is placed
18 outside the district in which the pupil's custodial parent or
19 parents or legal guardian resides, the pupil's district of
20 residence shall be considered to be the educating district or
21 educating intermediate district.
22 (8) "District superintendent" means the superintendent of a
23 district, the chief administrator of a public school academy, or
24 the chief administrator of a university school.
25 Sec. 4. (1) "Elementary pupil" means a pupil in membership
26 in grades K to 8 in a district not maintaining classes above the
27 eighth grade or in grades K to 6 in a district maintaining
1 classes above the eighth grade.
2 (2) "Extended school year" means an educational program
3 conducted by a district in which pupils must be enrolled but not
4 necessarily in attendance on the pupil membership count day in an
5 extended year program. The mandatory days of student instruction
6 and prescribed clock hours shall be completed by each pupil not
7 more than 365 calendar days after the pupil's first day of
8 classes for the school year prescribed. The department shall
9 prescribe pupil, personnel, and other reporting requirements for
10 the educational program.
11 (3) "Fiscal year" means the state fiscal year which commences
12 October 1 and continues through September 30.
13 (4) "General educational development testing preparation
14 program" means a program that has high school level courses in
15 writing skills English language arts, social studies,
science,
16 reading skills, and mathematics and that prepares a person to
17 successfully complete the general educational development (GED)
18 test.
19 (5) "High school pupil" means a pupil in membership in grades
20 7 to 12, except in a district not maintaining grades above the
21 eighth grade.
22 Sec. 6. (1) "Center program" means a program operated by a
23 district or intermediate district for special education pupils
24 from several districts in programs for the autistically impaired,
25 trainable mentally impaired, severely mentally impaired, severely
26 multiply impaired, hearing impaired, physically and otherwise
27 health impaired, and visually impaired. Programs for emotionally
1 impaired pupils housed in buildings that do not serve regular
2 education pupils also qualify. Unless otherwise approved by the
3 department, a center program either shall serve all constituent
4 districts within an intermediate district or shall serve several
5 districts with less than 50% of the pupils residing in the
6 operating district. In addition, special education center
7 program pupils placed part-time in noncenter programs to comply
8 with the least restrictive environment provisions of section 612
9 of part B of the individuals with disabilities education act,
10 title VI of Public
Law 91-230, 20 U.S.C. USC
1412, may be
11 considered center program pupils for pupil accounting purposes
12 for the time scheduled in either a center program or a noncenter
13 program.
14 (2) "District and high school graduation rate" means the
15 annual completion and pupil dropout rate that is calculated by
16 the center pursuant to nationally recognized standards.
17 (3) "District and high school graduation report" means a
18 report of the number of pupils, excluding migrant and adult, in
19 the district for the immediately preceding school year, adjusted
20 for those pupils who have transferred into or out of the district
21 or transferred to alternative programs, who leave high school
22 with a diploma or other credential of equal status.
23 (4) "Membership", except as otherwise provided in this act,
24 means for a district, public school academy, university school,
25 or intermediate district the sum of the product of .8 times the
26 number of full-time equated pupils in grades K to 12 actually
27 enrolled and in regular daily attendance on the pupil membership
1 count day for the current school year, plus the product of .2
2 times the final audited count from the supplemental count day for
3 the immediately preceding school year. All pupil counts used in
4 this subsection are as determined by the department and
5 calculated by adding the number of pupils registered for
6 attendance plus pupils received by transfer and minus pupils lost
7 as defined by rules promulgated by the superintendent, and as
8 corrected by a subsequent department audit. The amount of the
9 foundation allowance for a pupil in membership is determined
10 under section 20. In making the calculation of membership, all
11 of the following, as applicable, apply to determining the
12 membership of a district, public school academy, university
13 school, or intermediate district:
14 (a) Except as otherwise provided in this subsection, and
15 pursuant to subsection (6), a pupil shall be counted in
16 membership in the pupil's educating district or districts. An
17 individual pupil shall not be counted for more than a total of
18 1.0 full-time equated membership.
19 (b) If a pupil is educated in a district other than the
20 pupil's district of residence, if the pupil is not being educated
21 as part of a cooperative education program, if the pupil's
22 district of residence does not give the educating district its
23 approval to count the pupil in membership in the educating
24 district, and if the pupil is not covered by an exception
25 specified in subsection (6) to the requirement that the educating
26 district must have the approval of the pupil's district of
27 residence to count the pupil in membership, the pupil shall not
1 be counted in membership in any district.
2 (c) A special education pupil educated by the intermediate
3 district shall be counted in membership in the intermediate
4 district.
5 (d) A pupil placed by a court or state agency in an
6 on-grounds program of a juvenile detention facility, a child
7 caring institution, or a mental health institution, or a pupil
8 funded under section 53a, shall be counted in membership in the
9 district or intermediate district approved by the department to
10 operate the program.
11 (e) A pupil enrolled in the Michigan schools for the deaf and
12 blind shall be counted in membership in the pupil's intermediate
13 district of residence.
14 (f) A pupil enrolled in a vocational education program
15 supported by a millage levied over an area larger than a single
16 district or in an area vocational-technical education program
17 established pursuant to section 690 of the revised school code,
18 MCL 380.690, shall be counted only in the pupil's district of
19 residence.
20 (g) A pupil enrolled in a university school shall be counted
21 in membership in the university school.
22 (h) A pupil enrolled in a public school academy shall be
23 counted in membership in the public school academy.
24 (i) For a new district, university school, or public school
25 academy beginning its operation after December 31, 1994,
26 membership for the first 2 full or partial fiscal years of
27 operation shall be determined as follows:
1 (i) If operations begin before the pupil membership count day
2 for the fiscal year, membership is the average number of
3 full-time equated pupils in grades K to 12 actually enrolled and
4 in regular daily attendance on the pupil membership count day for
5 the current school year and on the supplemental count day for the
6 current school year, as determined by the department and
7 calculated by adding the number of pupils registered for
8 attendance on the pupil membership count day plus pupils received
9 by transfer and minus pupils lost as defined by rules promulgated
10 by the superintendent, and as corrected by a subsequent
11 department audit, plus the final audited count from the
12 supplemental count day for the current school year, and dividing
13 that sum by 2.
14 (ii) If operations begin after the pupil membership count day
15 for the fiscal year and not later than the supplemental count day
16 for the fiscal year, membership is the final audited count of the
17 number of full-time equated pupils in grades K to 12 actually
18 enrolled and in regular daily attendance on the supplemental
19 count day for the current school year.
20 (j) If a district is the authorizing body for a public school
21 academy, then, in the first school year in which pupils are
22 counted in membership on the pupil membership count day in the
23 public school academy, the determination of the district's
24 membership shall exclude from the district's pupil count for the
25 immediately preceding supplemental count day any pupils who are
26 counted in the public school academy on that first pupil
27 membership count day who were also counted in the district on the
1 immediately preceding supplemental count day.
2 (k) In a district, public school academy, university school,
3 or intermediate district operating an extended school year
4 program approved by the superintendent, a pupil enrolled, but not
5 scheduled to be in regular daily attendance on a pupil membership
6 count day, shall be counted.
7 (l) Pupils to be counted in membership shall be not less than
8 5 years of age on December 1 and less than 20 years of age on
9 September 1 of the school year except a special education pupil
10 who is enrolled and receiving instruction in a special education
11 program or service approved by the department and not having a
12 high school diploma who is less than 26 years of age as of
13 September 1 of the current school year shall be counted in
14 membership.
15 (m) An individual who has obtained a high school diploma
16 shall not be counted in membership. An individual who has
17 obtained a general education
educational development (G.E.D.)
18 certificate shall not be counted in membership. An individual
19 participating in a job training program funded under former
20 section 107a or a jobs program funded under former section 107b,
21 administered by the Michigan strategic fund or the department of
22 career development labor and economic growth, or participating
23 in any successor of either of those 2 programs, shall not be
24 counted in membership.
25 (n) If a pupil counted in membership in a public school
26 academy is also educated by a district or intermediate district
27 as part of a cooperative education program, the pupil shall be
1 counted in membership only in the public school academy unless a
2 written agreement signed by all parties designates the party or
3 parties in which the pupil shall be counted in membership, and
4 the instructional time scheduled for the pupil in the district or
5 intermediate district shall be included in the full-time equated
6 membership determination under subdivision (q). However, for
7 pupils receiving instruction in both a public school academy and
8 in a district or intermediate district but not as a part of a
9 cooperative education program, the following apply:
10 (i) If the public school academy provides instruction for at
11 least 1/2 of the class hours specified in subdivision (q), the
12 public school academy shall receive as its prorated share of the
13 full-time equated membership for each of those pupils an amount
14 equal to 1 times the product of the hours of instruction the
15 public school academy provides divided by the number of hours
16 specified in subdivision (q) for full-time equivalency, and the
17 remainder of the full-time membership for each of those pupils
18 shall be allocated to the district or intermediate district
19 providing the remainder of the hours of instruction.
20 (ii) If the public school academy provides instruction for
21 less than 1/2 of the class hours specified in subdivision (q),
22 the district or intermediate district providing the remainder of
23 the hours of instruction shall receive as its prorated share of
24 the full-time equated membership for each of those pupils an
25 amount equal to 1 times the product of the hours of instruction
26 the district or intermediate district provides divided by the
27 number of hours specified in subdivision (q) for full-time
1 equivalency, and the remainder of the full-time membership for
2 each of those pupils shall be allocated to the public school
3 academy.
4 (o) An individual less than 16 years of age as of September 1
5 of the current school year who is being educated in an
6 alternative education program shall not be counted in membership
7 if there are also adult education participants being educated in
8 the same program or classroom.
9 (p) The department shall give a uniform interpretation of
10 full-time and part-time memberships.
11 (q) The number of class hours used to calculate full-time
12 equated memberships shall be consistent with section 101(3). In
13 determining full-time equated memberships for pupils who are
14 enrolled in a postsecondary institution, a pupil shall not be
15 considered to be less than a full-time equated pupil solely
16 because of the effect of his or her postsecondary enrollment,
17 including necessary travel time, on the number of class hours
18 provided by the district to the pupil.
19 (r) Full-time equated memberships for pupils in kindergarten
20 shall be determined by dividing the number of class hours
21 scheduled and provided per year per kindergarten pupil by a
22 number equal to 1/2 the number used for determining full-time
23 equated memberships for pupils in grades 1 to 12.
24 (s) For a district, university school, or public school
25 academy that has pupils enrolled in a grade level that was not
26 offered by the district, university school, or public school
27 academy in the immediately preceding school year, the number of
1 pupils enrolled in that grade level to be counted in membership
2 is the average of the number of those pupils enrolled and in
3 regular daily attendance on the pupil membership count day and
4 the supplemental count day of the current school year, as
5 determined by the department. Membership shall be calculated by
6 adding the number of pupils registered for attendance in that
7 grade level on the pupil membership count day plus pupils
8 received by transfer and minus pupils lost as defined by rules
9 promulgated by the superintendent, and as corrected by subsequent
10 department audit, plus the final audited count from the
11 supplemental count day for the current school year, and dividing
12 that sum by 2.
13 (t) A pupil enrolled in a cooperative education program may
14 be counted in membership in the pupil's district of residence
15 with the written approval of all parties to the cooperative
16 agreement.
17 (u) If, as a result of a disciplinary action, a district
18 determines through the district's alternative or disciplinary
19 education program that the best instructional placement for a
20 pupil is in the pupil's home, if that placement is authorized in
21 writing by the district superintendent and district alternative
22 or disciplinary education supervisor, and if the district
23 provides appropriate instruction as described in this subdivision
24 to the pupil at the pupil's home, the district may count the
25 pupil in membership on a pro rata basis, with the proration based
26 on the number of hours of instruction the district actually
27 provides to the pupil divided by the number of hours specified in
1 subdivision (q) for full-time equivalency. For the purposes of
2 this subdivision, a district shall be considered to be providing
3 appropriate instruction if all of the following are met:
4 (i) The district provides at least 2 nonconsecutive hours of
5 instruction per week to the pupil at the pupil's home under the
6 supervision of a certificated teacher.
7 (ii) The district provides instructional materials,
8 resources, and supplies, except computers, that are comparable to
9 those otherwise provided in the district's alternative education
10 program.
11 (iii) Course content is comparable to that in the district's
12 alternative education program.
13 (iv) Credit earned is awarded to the pupil and placed on the
14 pupil's transcript.
15 (v) A pupil enrolled in an alternative or disciplinary
16 education program described in section 25 shall be counted in
17 membership in the district or public school academy that expelled
18 the pupil.
19 (w) If a pupil was enrolled in a public school academy on the
20 pupil membership count day, if the public school academy's
21 contract with its authorizing body is revoked or the public
22 school academy otherwise ceases to operate, and if the pupil
23 enrolls in a district within 45 days after the pupil membership
24 count day, the department shall adjust the district's pupil count
25 for the pupil membership count day to include the pupil in the
26 count.
27 (x) For a public school academy that has been in operation
1 for at least 2 years and that suspended operations for at least 1
2 semester and is resuming operations, membership is the sum of the
3 product of .8 times the number of full-time equated pupils in
4 grades K to 12 actually enrolled and in regular daily attendance
5 on the first pupil membership count day or supplemental count
6 day, whichever is first, occurring after operations resume, plus
7 the product of .2 times the final audited count from the most
8 recent pupil membership count day or supplemental count day that
9 occurred before suspending operations, as determined by the
10 superintendent.
11 (y) If a district's membership for a particular fiscal year,
12 as otherwise calculated under this subsection, would be less than
13 1,550 pupils and the district has 4.5 or fewer pupils per square
14 mile, as determined by the department, and if the district does
15 not receive funding under section 22d, the district's membership
16 shall be considered to be the membership figure calculated under
17 this subdivision. If a district educates and counts in its
18 membership pupils in grades 9 to 12 who reside in a contiguous
19 district that does not operate grades 9 to 12 and if 1 or both of
20 the affected districts request the department to use the
21 determination allowed under this sentence, the department shall
22 include the square mileage of both districts in determining the
23 number of pupils per square mile for each of the districts for
24 the purposes of this subdivision. The membership figure
25 calculated under this subdivision is the greater of the
26 following:
27 (i) The average of the district's membership for the
1 3-fiscal-year period ending with that fiscal year, calculated by
2 adding the district's actual membership for each of those 3
3 fiscal years, as otherwise calculated under this subsection, and
4 dividing the sum of those 3 membership figures by 3.
5 (ii) The district's actual membership for that fiscal year as
6 otherwise calculated under this subsection.
7 (z) If a public school academy that is not in its first or
8 second year of operation closes at the end of a school year and
9 does not reopen for the next school year, the department shall
10 adjust the membership count of the district in which a former
11 pupil of the public school academy enrolls and is in regular
12 daily attendance for the next school year to ensure that the
13 district receives the same amount of membership aid for the pupil
14 as if the pupil were counted in the district on the supplemental
15 count day of the preceding school year.
16 (5) "Public school academy" means a public school academy,
17 urban high school academy, or strict discipline academy operating
18 under the revised school code.
19 (6) "Pupil" means a person in membership in a public school.
20 A district must have the approval of the pupil's district of
21 residence to count the pupil in membership, except approval by
22 the pupil's district of residence shall not be required for any
23 of the following:
24 (a) A nonpublic part-time pupil enrolled in grades 1 to 12 in
25 accordance with section 166b.
26 (b) A pupil receiving 1/2 or less of his or her instruction
27 in a district other than the pupil's district of residence.
1 (c) A pupil enrolled in a public school academy or university
2 school.
3 (d) A pupil enrolled in a district other than the pupil's
4 district of residence under an intermediate district schools of
5 choice pilot program as described in section 91a or former
6 section 91 if the intermediate district and its constituent
7 districts have been exempted from section 105.
8 (e) A pupil enrolled in a district other than the pupil's
9 district of residence but
within the same intermediate district
10 if the educating
district enrolls nonresident pupils if
the
11 pupil was enrolled in accordance with section 105 or 105c.
12 (f) A pupil
enrolled in a district other than the pupil's
13 district of residence
if the pupil has been continuously enrolled
14 in the educating
district since a school year in which the pupil
15 enrolled in the
educating district under section 105 or 105c and
16 in which the educating
district enrolled nonresident pupils in
17 accordance with
section 105 or 105c.
18 (f) (g) A
pupil who has made an official written complaint
19 or whose parent or legal guardian has made an official written
20 complaint to law enforcement officials and to school officials of
21 the pupil's district of residence that the pupil has been the
22 victim of a criminal sexual assault or other serious assault, if
23 the official complaint either indicates that the assault occurred
24 at school or that the assault was committed by 1 or more other
25 pupils enrolled in the school the pupil would otherwise attend in
26 the district of residence or by an employee of the district of
27 residence. A person who intentionally makes a false report of a
1 crime to law enforcement officials for the purposes of this
2 subdivision is subject to section 411a of the Michigan penal
3 code, 1931 PA 328, MCL 750.411a, which provides criminal
4 penalties for that conduct. As used in this subdivision:
5 (i) "At school" means in a classroom, elsewhere on school
6 premises, on a school bus or other school-related vehicle, or at
7 a school-sponsored activity or event whether or not it is held on
8 school premises.
9 (ii) "Serious assault" means an act that constitutes a felony
10 violation of chapter XI of the Michigan penal code, 1931 PA 328,
11 MCL 750.81 to 750.90g, or that constitutes an assault and
12 infliction of serious or aggravated injury under section 81a of
13 the Michigan penal code, 1931 PA 328, MCL 750.81a.
14 (h) A pupil
enrolled in a district located in a contiguous
15 intermediate district,
as described in section 105c, if the
16 educating district
enrolls those nonresident pupils in accordance
17 with section 105c.
18 (g) (i) A
pupil whose district of residence changed after
19 the pupil membership count day and before the supplemental count
20 day and who continues to be enrolled on the supplemental count
21 day as a nonresident in the district in which he or she was
22 enrolled as a resident on the pupil membership count day of the
23 same school year.
24 (h) (j) A
pupil enrolled in an alternative education
25 program operated by a district other than his or her district of
26 residence who meets 1 or more of the following:
27 (i) The pupil has been suspended or expelled from his or her
1 district of residence for any reason, including, but not limited
2 to, a suspension or expulsion under section 1310, 1311, or 1311a
3 of the revised school code, MCL 380.1310, 380.1311, and
4 380.1311a.
5 (ii) The pupil had previously dropped out of school.
6 (iii) The pupil is pregnant or is a parent.
7 (iv) The pupil has been referred to the program by a court.
8 (i) (k) A
pupil enrolled in the Michigan virtual high
9 school, for the pupil's enrollment in the Michigan virtual high
10 school.
11 However, if a district that is not a first class district
12 educates pupils who reside in a first class district and if the
13 primary instructional site for those pupils is located within the
14 boundaries of the first class district, the educating district
15 must have the approval of the first class district to count those
16 pupils in membership. As used in this subsection, "first class
17 district" means a district organized as a school district of the
18 first class under the revised school code.
19 (7) "Pupil membership count day" of a district or
20 intermediate district means:
21 (a) Except as provided in subdivision (b), the fourth
22 Wednesday in September each school year.
23 (b) For a district or intermediate district maintaining
24 school during the entire school year, the following days:
25 (i) Fourth Wednesday in July.
26 (ii) Fourth Wednesday in September.
27 (iii) Second Wednesday in February.
1 (iv) Fourth Wednesday in April.
2 (8) "Pupils in grades K to 12 actually enrolled and in
3 regular daily attendance" means pupils in grades K to 12 in
4 attendance and receiving instruction in all classes for which
5 they are enrolled on the pupil membership count day or the
6 supplemental count day, as applicable. A pupil who is absent
7 from any of the classes in which the pupil is enrolled on the
8 pupil membership count day or supplemental count day and who does
9 not attend each of those classes during the 10 consecutive school
10 days immediately following the pupil membership count day or
11 supplemental count day, except for a pupil who has been excused
12 by the district, shall not be counted as 1.0 full-time equated
13 membership. In addition, a pupil who is excused from attendance
14 on the pupil membership count day or supplemental count day and
15 who fails to attend each of the classes in which the pupil is
16 enrolled within 30 calendar days after the pupil membership count
17 day or supplemental count day shall not be counted as 1.0
18 full-time equated membership. Pupils not counted as 1.0
19 full-time equated membership due to an absence from a class shall
20 be counted as a prorated membership for the classes the pupil
21 attended. For purposes of this subsection, "class" means a
22 period of time in 1 day when pupils and a certificated teacher or
23 legally qualified substitute teacher are together and instruction
24 is taking place.
25 (9) "Rule" means a rule promulgated pursuant to the
26 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
27 24.328.
1 (10) "The revised school code" means 1976 PA 451, MCL 380.1
2 to 380.1852.
3 (11) "School fiscal year" means a fiscal year that commences
4 July 1 and continues through June 30.
5 (12) "State board" means the state board of education.
6 (13) "Superintendent", unless the context clearly refers to a
7 district or intermediate district superintendent, means the
8 superintendent of public instruction described in section 3 of
9 article VIII of the state constitution of 1963.
10 (14) "Supplemental count day" means the day on which the
11 supplemental pupil count is conducted under section 6a.
12 (15) "Tuition pupil" means a pupil of school age attending
13 school in a district other than the pupil's district of residence
14 for whom tuition may be charged. Tuition pupil does not include
15 a pupil who is a special education pupil or a pupil described in
16 subsection (6)(d) to (k)
(i). A pupil's district of residence
17 shall not require a high school tuition pupil, as provided under
18 section 111, to attend another school district after the pupil
19 has been assigned to a school district.
20 (16) "State school aid fund" means the state school aid fund
21 established in section 11 of article IX of the state constitution
22 of 1963.
23 (17) "Taxable value" means the taxable value of property as
24 determined under section 27a of the general property tax act,
25 1893 PA 206, MCL 211.27a.
26 (18) "Textbook" means a book that is selected and approved by
27 the governing board of a district and that contains a
1 presentation of principles of a subject, or that is a literary
2 work relevant to the study of a subject required for the use of
3 classroom pupils, or another type of course material that forms
4 the basis of classroom instruction.
5 (19) "Total state aid" or "total state school aid" means the
6 total combined amount of all funds due to a district,
7 intermediate district, or other entity under all of the
8 provisions of this act.
9 (20) "University school" means an instructional program
10 operated by a public university under section 23 that meets the
11 requirements of section 23.
12 Sec. 11. (1) For the fiscal year ending September 30,
13 2004 2005, there is appropriated for the public
schools of this
14 state and certain other state purposes relating to education the
15 sum of $10,962,387,100.00
$11,038,650,000.00 from the state
16 school aid fund established by section 11 of article IX of the
17 state constitution of
1963 and the sum of $327,700,000.00
18 $137,907,700.00 from the
general fund. For the fiscal year
19 ending September 30, 2003, from loan repayments deposited to the
20 general fund pursuant
to section 4 of 1961 PA 112, MCL 388.984,
21 on the settlement
date, as determined under section 9c of 1961 PA
22 108, MCL 388.959c,
there is appropriated from the general fund to
23 the state school aid
fund the amount determined by the state
24 treasurer to equal the
difference between the outstanding amount
25 of general obligation
debt incurred pursuant to 1961 PA 112, MCL
26 388.981 to 388.985,
and the outstanding amount of loans under
27 1961 PA 108, MCL
388.951 to 388.963, as reduced in accordance
1 with section 9c(1) of
1961 PA 108, MCL 388.959c. In addition,
2 for the fiscal year
ending September 30, 2003, there is
3 appropriated from the
general fund to the state school aid fund
4 an amount equal to the
amount of all school bond loan fund
5 repayments received by
the state treasurer from June 1,
2003
6 through December 21, 2003, determined by the state treasurer not
7 to have been paid from
proceeds of bonds of the school district
8 and representing the
difference between the outstanding amount of
9 general obligation
debt incurred by this state under 1961 PA 112,
10 MCL 388.981 to
388.985, and the outstanding amount of loans under
11 1961 PA 108, MCL
388.951 to 388.963, at the time of repayment.
12 Funds appropriated to
the state school aid fund from the general
13 fund from loan
repayments received as described in this
14 subsection shall be
expended within 90 days of deposit within the
15 state school aid fund.
In addition, available federal funds
are
16 appropriated for each
of those fiscal years the fiscal year
17 ending September 30, 2005.
18 (2) The appropriations under this section shall be allocated
19 as provided in this act. Money appropriated under this section
20 from the general fund shall be expended to fund the purposes of
21 this act before the expenditure of money appropriated under this
22 section from the state school aid fund. If the maximum amount
23 appropriated under this section from the state school aid fund
24 for a fiscal year exceeds the amount necessary to fully fund
25 allocations under this act from the state school aid fund, that
26 excess amount shall not be expended in that state fiscal year and
27 shall not lapse to the general fund, but instead shall be
1 deposited into the school aid stabilization fund created in
2 section 11a.
3 (3) If the maximum amount appropriated under this section
4 from the state school aid fund and the school aid stabilization
5 fund for a fiscal year exceeds the amount available for
6 expenditure from the state school aid fund for that fiscal year,
7 payments under sections 11f, 11g, 11j, 22a, 26a, 31d, 51a(2),
8 and 51a(12), 51c, 53a, and 56 shall be made
in full. In
9 addition, for districts beginning operations after 1994-95 that
10 qualify for payments under section 22b, payments under section
11 22b shall be made so that the qualifying districts receive the
12 lesser of an amount equal to the 1994-95 foundation allowance of
13 the district in which the district beginning operations after
14 1994-95 is located or $5,500.00. The amount of the payment to be
15 made under section 22b for these qualifying districts shall be as
16 calculated under section 22a, with the balance of the payment
17 under section 22b being subject to the proration otherwise
18 provided under this
subsection and subsection (4). For any
19 Subject to subsection (5), if proration is necessary after
20 2002-2003, state payments under each of the other sections of
21 this act from all state funding sources shall be prorated in the
22 manner prescribed in subsection (4) as necessary to reflect the
23 amount available for expenditure from the state school aid fund
24 for the affected fiscal year. However, if the department of
25 treasury determines that proration will be required under this
26 subsection, the department of treasury shall notify the state
27 budget director, and the state budget director shall notify the
1 legislature at least 30 calendar days or 6 legislative session
2 days, whichever is more, before the department reduces any
3 payments under this act because of the proration. During the 30
4 calendar day or 6 legislative session day period after that
5 notification by the state budget director, the department shall
6 not reduce any payments under this act because of proration under
7 this subsection. The legislature may prevent proration from
8 occurring by, within the 30 calendar day or 6 legislative session
9 day period after that notification by the state budget director,
10 enacting legislation appropriating additional funds from the
11 general fund, countercyclical budget and economic stabilization
12 fund, state school aid fund balance, or another source to fund
13 the amount of the projected shortfall.
14 (4) For any Subject
to subsection (5), if proration is
15 necessary, after
2002-2003, the department shall calculate the
16 proration in district and intermediate district payments that is
17 required under subsection (3) as follows:
18 (a) The department shall calculate the percentage of total
19 state school aid allocated under this act for the affected fiscal
20 year for each of the following:
21 (i) Districts.
22 (ii) Intermediate districts.
23 (iii) Entities other than districts or intermediate
24 districts.
25 (b) The department shall recover a percentage of the
26 proration amount required under subsection (3) that is equal to
27 the percentage calculated under subdivision (a)(i) for districts
1 by reducing payments to districts. This reduction shall be made
2 by calculating an equal dollar amount per pupil as necessary to
3 recover this percentage of the proration amount and reducing each
4 district's total state school aid from state sources, other than
5 payments under sections 11f, 11g, 11j, 22a, 26a, 31d, 51a(2),
6 51a(12), 51c, and
53a, and 56, by that amount.
7 (c) The department shall recover a percentage of the
8 proration amount required under subsection (3) that is equal to
9 the percentage calculated under subdivision (a)(ii) for
10 intermediate districts by reducing payments to intermediate
11 districts. This reduction shall be made by reducing the payments
12 to each intermediate district, other than payments under sections
13 11f, 11g, 22a, 31d, 26a,
51a(2), 51a(12), 51c, 53a, and 56,
14 on an equal percentage basis.
15 (d) The department shall recover a percentage of the
16 proration amount required under subsection (3) that is equal to
17 the percentage calculated under subdivision (a)(iii) for entities
18 other than districts and intermediate districts by reducing
19 payments to these entities. This reduction shall be made by
20 reducing the payments to each of these entities, other than
21 payments under sections 11j and 26a, on an equal percentage
22 basis.
23 (5) Beginning in 2004-2005, if a district has an emergency
24 financial manager in place under the local government fiscal
25 responsibility act, 1990 PA 72, MCL 141.1201 to 141.1291,
26 payments to that district are not subject to proration under this
27 section.
1 (6) (5) Except
for the allocation under section 26a, any
2 general fund allocations under this act that are not expended by
3 the end of the state fiscal year are transferred to the state
4 school aid fund.
5 Sec. 11b. From the general fund money appropriated in
6 section 11, there is
allocated for 2003-2004 2004-2005 the sum
7 of $67,600,000.00 $4,999,900.00
for deposit into the school aid
8 stabilization fund created in section 11a.
9 Sec. 11f. (1) From the appropriations under section 11,
10 there is allocated for the purposes of this section an amount not
11 to exceed $32,000,000.00
$31,999,900.00 for the fiscal year
12 ending September 30, 2004 2005 and for each
succeeding fiscal
13 year through the fiscal year ending September 30, 2008. Payments
14 under this section will cease after September 30, 2008. These
15 allocations are for paying the amounts described in
16 subsection (4) to districts and intermediate districts, other
17 than those receiving a lump sum payment under subsection (2),
18 that were not plaintiffs in the consolidated cases known as
19 Durant v State of Michigan, Michigan supreme court docket
20 no. 104458-104492 and that, on or before March 2, 1998, submitted
21 to the state treasurer a board resolution waiving any right or
22 interest the district or intermediate district has or may have in
23 any claim or litigation based on or arising out of any claim or
24 potential claim through September 30, 1997 that is or was similar
25 to the claims asserted by the plaintiffs in the consolidated
26 cases known as Durant v State of Michigan. The waiver resolution
27 shall be in form and substance as required under subsection (7).
1 The state treasurer is authorized to accept such a waiver
2 resolution on behalf of this state. The amounts described in
3 this subsection represent offers of settlement and compromise of
4 any claim or claims that were or could have been asserted by
5 these districts and intermediate districts, as described in this
6 subsection.
7 (2) In addition to any other money appropriated under this
8 act, there was appropriated from the state school aid fund an
9 amount not to exceed $1,700,000.00 for the fiscal year ending
10 September 30, 1999. This appropriation was for paying the
11 amounts described in this subsection to districts and
12 intermediate districts that were not plaintiffs in the
13 consolidated cases known as Durant v State of Michigan; that, on
14 or before March 2, 1998, submitted to the state treasurer a board
15 resolution waiving any right or interest the district or
16 intermediate district had or may have had in any claim or
17 litigation based on or arising out of any claim or potential
18 claim through September 30, 1997 that is or was similar to the
19 claims asserted by the plaintiffs in the consolidated cases known
20 as Durant v State of Michigan; and for which the total amount
21 listed in section 11h and paid under this section was less than
22 $75,000.00. For a district or intermediate district qualifying
23 for a payment under this subsection, the entire amount listed for
24 the district or intermediate district in section 11h was paid in
25 a lump sum on November 15, 1998 or on the next business day
26 following that date. The amounts paid under this subsection
27 represent offers of settlement and compromise of any claim or
1 claims that were or could have been asserted by these districts
2 and intermediate districts, as described in this subsection.
3 (3) This section does not create any obligation or liability
4 of this state to any district or intermediate district that does
5 not submit a waiver resolution described in this section. This
6 section, any other provision of this act, and section 353e of the
7 management and budget act, 1984 PA 431, MCL 18.1353e, are not
8 intended to admit liability or waive any defense that is or would
9 be available to this state or its agencies, employees, or agents
10 in any litigation or future litigation with a district or
11 intermediate district.
12 (4) The amount paid each fiscal year to each district or
13 intermediate district under subsection (1) shall be 1/20 of the
14 total amount listed in section 11h for each listed district or
15 intermediate district that qualifies for a payment under
16 subsection (1). The amounts listed in section 11h and paid in
17 part under this subsection and in a lump sum under subsection (2)
18 are offers of settlement and compromise to each of these
19 districts or intermediate districts to resolve, in their
20 entirety, any claim or claims that these districts or
21 intermediate districts may have asserted for violations of
22 section 29 of article IX of the state constitution of 1963
23 through September 30, 1997, which claims are or were similar to
24 the claims asserted by the plaintiffs in the consolidated cases
25 known as Durant v State of Michigan. This section, any other
26 provision of this act, and section 353e of the management and
27 budget act, 1984 PA 431, MCL 18.1353e, shall not be construed to
1 constitute an admission of liability to the districts or
2 intermediate districts listed in section 11h or a waiver of any
3 defense that is or would have been available to the state or its
4 agencies, employees, or agents in any litigation or future
5 litigation with a district or intermediate district.
6 (5) The entire amount of each payment under subsection (1)
7 each fiscal year shall be paid on November 15 of the applicable
8 fiscal year or on the next business day following that date.
9 (6) Funds paid to a district or intermediate district under
10 this section shall be used only for textbooks, electronic
11 instructional material, software, technology, infrastructure or
12 infrastructure improvements, school buses, school security,
13 training for technology, or to pay debt service on voter-approved
14 bonds issued by the district or intermediate district before the
15 effective date of this section. For intermediate districts only,
16 funds paid under this section may also be used for other
17 nonrecurring instructional expenditures including, but not
18 limited to, nonrecurring instructional expenditures for
19 vocational education, or for debt service for acquisition of
20 technology for academic support services. Funds received by an
21 intermediate district under this section may be used for projects
22 conducted for the benefit of its constituent districts at the
23 discretion of the intermediate board. To the extent payments
24 under this section are used by a district or intermediate
25 district to pay debt service on debt payable from millage
26 revenues, and to the extent permitted by law, the district or
27 intermediate district may make a corresponding reduction in the
1 number of mills levied for that debt service.
2 (7) The resolution to be adopted and submitted by a district
3 or intermediate district under this section and section 11g shall
4 read as follows:
5 "Whereas, the board of ____________________ (name of district
6 or intermediate district) desires to settle and compromise, in
7 their entirety, any claim or claims that the district (or
8 intermediate district) has or had for violations of section 29 of
9 article IX of the state constitution of 1963, which claim or
10 claims are or were similar to the claims asserted by the
11 plaintiffs in the consolidated cases known as Durant v State of
12 Michigan, Michigan supreme court docket no. 104458-104492.
13 Whereas, the district (or intermediate district) agrees to
14 settle and compromise these claims for the consideration
15 described in sections 11f and 11g of the state school aid act of
16 1979, 1979 PA 94, MCL 388.1611f and 388.1611g, and in the amount
17 specified for the district (or intermediate district) in
18 section 11h of the state school aid act of 1979, 1979 PA 94,
19 MCL 388.1611h.
20 Whereas, the board of _______________ (name of district or
21 intermediate district) is authorized to adopt this resolution.
22 Now, therefore, be it resolved as follows:
23 1. The board of ____________________ (name of district or
24 intermediate district) waives any right or interest it may have
25 in any claim or potential claim through September 30, 1997
26 relating to the amount of funding the district or intermediate
27 district is, or may have been, entitled to receive under the
1 state school aid act of 1979, 1979 PA 94, MCL 388.1601 to
2 388.1772, or any other source of state funding, by reason of the
3 application of section 29 of article IX of the state constitution
4 of 1963, which claims or potential claims are or were similar to
5 the claims asserted by the plaintiffs in the consolidated cases
6 known as Durant v State of Michigan, Michigan supreme court
7 docket no. 104458-104492.
8 2. The board of ____________________ (name of district or
9 intermediate district) directs its secretary to submit a
10 certified copy of this resolution to the state treasurer no later
11 than 5 p.m. eastern standard time on March 2, 1998, and agrees
12 that it will not take any action to amend or rescind this
13 resolution.
14 3. The board of ____________________ (name of district or
15 intermediate district) expressly agrees and understands that, if
16 it takes any action to amend or rescind this resolution, the
17 state, its agencies, employees, and agents shall have available
18 to them any privilege, immunity, and/or defense that would
19 otherwise have been available had the claims or potential claims
20 been actually litigated in any forum.
21 4. This resolution is contingent on continued payments by
22 the state each fiscal year as determined under sections 11f and
23 11g of the state school aid act of 1979, 1979 PA 94,
24 MCL 388.1611f and 388.1611g. However, this resolution shall be
25 an irrevocable waiver of any claim to amounts actually received
26 by the school district or intermediate school district under
27 sections 11f and 11g of the state school aid act of 1979.".
1 Sec. 11g. (1) From the general fund appropriation in
2 section 11, there is allocated an amount not to exceed
3 $141,000.00 each
fiscal year for the fiscal year ending
4 September 30, 2003, for the fiscal year ending September 30,
5 2004, and $140,900.00 for the fiscal year ending
September 30,
6 2005. There is allocated an amount not to exceed
7 $34,200,000.00 $35,000,000.00 for each succeeding fiscal year
8 through the fiscal year ending September 30, 2013. Payments
9 under this section will cease after September 30, 2013. These
10 allocations are for paying the amounts described in
11 subsection (3) to districts and intermediate districts, other
12 than those receiving a lump sum payment under section 11f(2),
13 that were not plaintiffs in the consolidated cases known as
14 Durant v State of Michigan, Michigan supreme court docket
15 no. 104458-104492 and that, on or before March 2, 1998, submitted
16 to the state treasurer a waiver resolution described in section
17 11f. The amounts paid under this section represent offers of
18 settlement and compromise of any claim or claims that were or
19 could have been asserted by these districts and intermediate
20 districts, as described in this section.
21 (2) This section does not create any obligation or liability
22 of this state to any district or intermediate district that does
23 not submit a waiver resolution described in section 11f. This
24 section, any other provision of this act, and section 353e of the
25 management and budget act, 1984 PA 431, MCL 18.1353e, are not
26 intended to admit liability or waive any defense that is or would
27 be available to this state or its agencies, employees, or agents
1 in any litigation or future litigation with a district or
2 intermediate district regarding these claims or potential
3 claims.
4 (3) The amount paid each fiscal year to each district or
5 intermediate district under this section shall be the sum of the
6 following:
7 (a) 1/30 of the total amount listed in section 11h for the
8 district or intermediate district.
9 (b) If the district or intermediate district borrows money
10 and issues bonds under section 11i, an additional amount in each
11 fiscal year calculated by the department of treasury that, when
12 added to the amount described in subdivision (a), will cause the
13 net present value as of November 15, 1998 of the total of the 15
14 annual payments made to the district or intermediate district
15 under this section, discounted at a rate as determined by the
16 state treasurer, to equal the amount of the bonds issued by that
17 district or intermediate district under section 11i and that will
18 result in the total payments made to all districts and
19 intermediate districts in each fiscal year under this section
20 being no more than the amount appropriated under this section in
21 each fiscal year.
22 (4) The entire amount of each payment under this section each
23 fiscal year shall be paid on May 15 of the applicable fiscal year
24 or on the next business day following that date. If a district
25 or intermediate district borrows money and issues bonds under
26 section 11i, the district or intermediate district shall use
27 funds received under this section to pay debt service on bonds
1 issued under section 11i. If a district or intermediate district
2 does not borrow money and issue bonds under section 11i, the
3 district or intermediate district shall use funds received under
4 this section only for the following purposes, in the following
5 order of priority:
6 (a) First, to pay debt service on voter-approved bonds issued
7 by the district or intermediate district before the effective
8 date of this section.
9 (b) Second, to pay debt service on other limited tax
10 obligations.
11 (c) Third, for deposit into a sinking fund established by the
12 district or intermediate district under the revised school code.
13 (5) To the extent payments under this section are used by a
14 district or intermediate district to pay debt service on debt
15 payable from millage revenues, and to the extent permitted by
16 law, the district or intermediate district may make a
17 corresponding reduction in the number of mills levied for debt
18 service.
19 (6) A district or intermediate district may pledge or assign
20 payments under this section as security for bonds issued under
21 section 11i, but shall not otherwise pledge or assign payments
22 under this section.
23 Sec. 11j. From the appropriation in section 11, there is
24 allocated an amount not
to exceed $28,300,000.00 $41,099,900.00
25 for 2003-2004 2004-2005
for payments to the school loan bond
26 redemption fund in the department of treasury on behalf of
27 districts and intermediate districts.
1 Sec. 13. Except as otherwise provided in this act, the
2 apportionments and limitations of the apportionments made under
3 this act shall be made on the membership and number of teachers
4 and other professionals approved by the superintendent employed
5 as of the pupil membership count day of each year and on the
6 taxable value and the operating millage of each district for the
7 calendar year. In addition, a district maintaining school during
8 the entire year, as provided in section 1561 of the revised
9 school code, MCL
380.1561, shall count memberships and teachers
10 educational personnel pursuant to rules promulgated by the
11 superintendent and shall report to the center as required by
12 state and federal law.
13 Sec. 15. (1) If a district or intermediate district fails
14 to receive its proper apportionment, the department, upon
15 satisfactory proof that the district or intermediate district was
16 entitled justly, shall apportion
the deficiency in the remaining
17 apportionments next apportionment. Subject to subsections
(2)
18 and (3), if a district or intermediate district has received more
19 than its proper apportionment, the department, upon satisfactory
20 proof, shall deduct the
excess in the remaining apportionments
21 next apportionment. Notwithstanding any other provision in this
22 act, state aid overpayments to a district, other than
23 overpayments in payments for special education or special
24 education transportation, may be recovered from any payment made
25 under this act other than a special education or special
26 education transportation payment. State aid overpayments made in
27 special education or special education transportation payments
1 may be recovered from subsequent special education or special
2 education transportation payments.
3 (2) If the result of an audit conducted by or for the
4 department affects the current fiscal year membership, affected
5 payments shall be adjusted in the current fiscal year. A
6 deduction due to an adjustment made as a result of an audit
7 conducted by or for the department, or as a result of information
8 obtained by the department from the district, an intermediate
9 district, the department of treasury, or the office of auditor
10 general, shall be deducted from the district's apportionments
11 within the next fiscal year after the fiscal year in which the
12 adjustment is finalized. At the request of the district and upon
13 the district presenting evidence satisfactory to the department
14 of the hardship, the department may grant up to an additional 4
15 years for the adjustment if the district would otherwise
16 experience a significant hardship.
17 (3) If, because of the receipt of new or updated data, the
18 department determines during a fiscal year that the amount paid
19 to a district or intermediate district under this act for a prior
20 fiscal year was incorrect under the law in effect for that year,
21 the department may make the appropriate deduction or payment in
22 the district's or intermediate district's allocation for the
23 fiscal year in which the determination is made. The deduction or
24 payment shall be calculated according to the law in effect in the
25 fiscal year in which the improper amount was paid.
26 (4) Expenditures made by the department under this act that
27 are caused by the write-off of prior year accruals may be funded
1 by revenue from the write-off of prior year accruals.
2 Sec. 18a. Grant funds awarded and allotted to a district,
3 or intermediate district, or other entity, unless
otherwise
4 specified in this act, shall be expended by the grant recipient
5 before the end of the school fiscal year immediately following
6 the fiscal year in which the funds are received. If a grant
7 recipient does not expend the funds received under this act
8 before the end of the fiscal year in which the funds are
9 received, the grant recipient shall submit a report to the
10 department not later than November 1 after the fiscal year in
11 which the funds are received indicating whether it expects to
12 expend those funds during the fiscal year in which the report is
13 submitted. A recipient of a grant shall return any unexpended
14 grant funds to the department in the manner prescribed by the
15 department not later than September 30 after the fiscal year in
16 which the funds are received.
17 Sec. 19. (1) A district shall comply with any requirements
18 of sections 1204a, 1277, 1278, and 1280 of the revised school
19 code, MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly
20 referred to as "public act 25 of 1990" that are not also required
21 by the no child left
behind act of 2001, Public Law 107-110, 115
22 Stat. 1425, as determined by the department.
23 (2) Each district and intermediate district shall provide to
24 the department, in a form and manner prescribed by the
25 department, information necessary for the development of an
26 annual progress report on the required implementation of sections
27 1204a, 1277, 1278, and 1280 of the revised school code,
1 MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly
2 referred to as "public act 25 of 1990".
3 (3) A district or intermediate district shall comply with all
4 applicable reporting requirements specified in state and federal
5 law. Data provided to the center, in a form and manner
6 prescribed by the center, shall be aggregated and disaggregated
7 as required by state and federal law.
8 (4) Each district shall furnish to the center not later than
9 7 weeks after the pupil membership count day, in a manner
10 prescribed by the center, the information necessary for the
11 preparation of the district and high school graduation report.
12 The center shall calculate an annual graduation and pupil dropout
13 rate for each high school, each district, and this state, in
14 compliance with nationally recognized standards for these
15 calculations. The center shall report all graduation and dropout
16 rates to the senate and house education committees and
17 appropriations committees, the state budget director, and the
18 department not later than June 1 of each year.
19 (5) A district shall furnish to the center, in a manner
20 prescribed by the center, information related to educational
21 personnel as necessary for reporting required by state and
22 federal law.
23 (6) A district shall furnish to the center, in a manner
24 prescribed by the center, information related to safety practices
25 and criminal incidents as necessary for reporting required by
26 state and federal law.
27 (7) (6) If
a district or intermediate district fails to
1 meet the requirements of
subsection (2), (3), (4), or (5), or
2 (6), the department shall withhold 5% of the total funds for
3 which the district or intermediate district qualifies under this
4 act until the district or intermediate district complies with all
5 of those subsections. If the district or intermediate district
6 does not comply with all of those subsections by the end of the
7 fiscal year, the department shall place the amount withheld in an
8 escrow account until the district or intermediate district
9 complies with all of those subsections.
10 (7) If a school
in a district is not accredited under
11 section 1280 of the
revised school code, MCL 380.1280, or is not
12 making satisfactory
progress toward meeting the standards for
13 that accreditation,
the department shall withhold 5% of the total
14 funds for which the
district qualifies under this act that are
15 attributable to pupils
attending that school. The department
16 shall place the amount
withheld from a district under this
17 subsection in an
escrow account and shall not release the funds
18 to the district until
the district submits to the department a
19 plan for achieving
accreditation for each of the district's
20 schools that are not
accredited under section 1280 of the revised
21 school code, MCL
380.1280, or are not making satisfactory
22 progress toward
meeting the standards for that accreditation.
23 (8) Before publishing a list of schools or districts
24 determined to have failed to make adequate yearly progress as
25 required by the federal no child left behind act of 2001, Public
26 Law 107-110, 115 Stat. 1425, the department shall allow a school
27 or district to appeal that determination. The department shall
1 consider and act upon the appeal within 30 days after it is
2 submitted and shall not publish the list until after all appeals
3 have been considered and decided.
4 Sec. 20. (1) For 2002-2003
and for 2003-2004 2004-2005,
5 the basic foundation allowance is $6,700.00 per membership
6 pupil.
7 (2) The amount of each district's foundation allowance shall
8 be calculated as provided in this section, using a basic
9 foundation allowance in the amount specified in subsection (1).
10 (3) Except as otherwise provided in this section, the amount
11 of a district's foundation allowance shall be calculated as
12 follows, using in all calculations the total amount of the
13 district's foundation allowance as calculated before any
14 proration:
15 (a) Except as otherwise provided in this subsection, for a
16 district that in the immediately preceding state fiscal year had
17 a foundation allowance in an amount at least equal to the amount
18 of the basic foundation allowance for the immediately preceding
19 state fiscal year, the district shall receive a foundation
20 allowance in an amount equal to the sum of the district's
21 foundation allowance for the immediately preceding state fiscal
22 year plus the dollar amount of the adjustment from the
23 immediately preceding state fiscal year to the current state
24 fiscal year in the basic foundation allowance. However, for
25 2002-2003, the foundation allowance for a district under this
26 subdivision is an amount equal to the sum of the district's
27 foundation allowance for the immediately preceding state fiscal
1 year plus $200.00.
2 (b) For a district that in the 1994-95 state fiscal year had
3 a foundation allowance greater than $6,500.00, the district's
4 foundation allowance is an amount equal to the sum of the
5 district's foundation allowance for the immediately preceding
6 state fiscal year plus the lesser of the increase in the basic
7 foundation allowance for the current state fiscal year, as
8 compared to the immediately preceding state fiscal year, or the
9 product of the district's foundation allowance for the
10 immediately preceding state fiscal year times the percentage
11 increase in the United States consumer price index in the
12 calendar year ending in the immediately preceding fiscal year as
13 reported by the May revenue estimating conference conducted under
14 section 367b of the management and budget act, 1984 PA 431,
15 MCL 18.1367b. For 2002-2003, for a district that in the 1994-95
16 state fiscal year had a foundation allowance greater than
17 $6,500.00, the district's foundation allowance is an amount equal
18 to the sum of the district's foundation allowance for the
19 immediately preceding state fiscal year plus the lesser of
20 $200.00 or the product of the district's foundation allowance for
21 the immediately preceding state fiscal year times the percentage
22 increase in the United States consumer price index in the
23 calendar year ending in the immediately preceding fiscal year as
24 reported by the May revenue estimating conference conducted under
25 section 367b of the management and budget act, 1984 PA 431,
26 MCL 18.1367b.
27 (c) For a district that has a foundation allowance that is
1 not a whole dollar amount, the district's foundation allowance
2 shall be rounded up to the nearest whole dollar.
3 (d) For a district that received a payment under former
4 section 22c for 2001-2002, the district's 2001-2002 foundation
5 allowance shall be considered to have been an amount equal to the
6 sum of the district's actual 2001-2002 foundation allowance as
7 otherwise calculated under this section plus the per pupil amount
8 of the district's equity payment for 2001-2002 under former
9 section 22c.
10 (4) Except as otherwise provided in this subsection, the
11 state portion of a district's foundation allowance is an amount
12 equal to the district's foundation allowance or $6,500.00,
13 whichever is less, minus the difference between the product of
14 the taxable value per membership pupil of all property in the
15 district that is not a principal residence or qualified
16 agricultural property times the lesser of 18 mills or the number
17 of mills of school operating taxes levied by the district in
18 1993-94 and the quotient of the ad valorem property tax revenue
19 of the district captured under 1975 PA 197, MCL 125.1651 to
20 125.1681, the tax increment finance authority act, 1980 PA 450,
21 MCL 125.1801 to 125.1830, the local development financing act,
22 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield
23 redevelopment financing act, 1996 PA 381, MCL 125.2651 to
24 125.2672, divided by the district's membership excluding special
25 education pupils. For a district described in subsection (3)(b),
26 the state portion of the district's foundation allowance is an
27 amount equal to $6,962.00 plus the difference between the
1 district's foundation allowance for the current state fiscal year
2 and the district's foundation allowance for 1998-99, minus the
3 difference between the product of the taxable value per
4 membership pupil of all property in the district that is not a
5 principal residence or qualified agricultural property times the
6 lesser of 18 mills or the number of mills of school operating
7 taxes levied by the district in 1993-94 and the quotient of the
8 ad valorem property tax revenue of the district 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 excluding special education pupils. For a district that has a
15 millage reduction required under section 31 of article IX of the
16 state constitution of 1963, the state portion of the district's
17 foundation allowance shall be calculated as if that reduction did
18 not occur. The $6,500.00 amount prescribed in this subsection
19 shall be adjusted each year by an amount equal to the dollar
20 amount of the difference between the basic foundation allowance
21 for the current state fiscal year and $5,000.00, minus $200.00.
22 (5) The allocation calculated under this section for a pupil
23 shall be based on the foundation allowance of the pupil's
24 district of residence. However, for a pupil enrolled in a
25 district other than the pupil's district of residence, if the
26 foundation allowance of the pupil's district of residence has
27 been adjusted pursuant to subsection (19), the allocation
1 calculated under this section shall not include the adjustment
2 described in subsection (18). For a pupil enrolled pursuant to
3 section 105 or 105c in a district other than the pupil's district
4 of residence, the allocation calculated under this section shall
5 be based on the lesser of the foundation allowance of the pupil's
6 district of residence or the foundation allowance of the
7 educating district. For a pupil in membership in a K-5, K-6, or
8 K-8 district who is enrolled in another district in a grade not
9 offered by the pupil's district of residence, the allocation
10 calculated under this section shall be based on the foundation
11 allowance of the educating district if the educating district's
12 foundation allowance is greater than the foundation allowance of
13 the pupil's district of residence. The calculation under this
14 subsection shall take into account a district's per pupil
15 allocation under section 20j(2).
16 (6) Subject to subsection (7) and section 22b(3) and except
17 as otherwise provided in this subsection, for pupils in
18 membership, other than special education pupils, in a public
19 school academy or a university school, the allocation calculated
20 under this section is an amount per membership pupil other than
21 special education pupils in the public school academy or
22 university school equal to the sum of the local school operating
23 revenue per membership pupil other than special education pupils
24 for the district in which the public school academy or university
25 school is located and the state portion of that district's
26 foundation allowance, or the sum of the basic foundation
27 allowance under subsection (1) plus $300.00, whichever is less.
1 Notwithstanding section 101(2), for a public school academy that
2 begins operations in
2002-2003 or 2003-2004, as applicable,
3 after the pupil membership count day, the amount per membership
4 pupil calculated under this subsection shall be adjusted by
5 multiplying that amount per membership pupil by the number of
6 hours of pupil instruction provided by the public school academy
7 after it begins operations, as determined by the department,
8 divided by the minimum number of hours of pupil instruction
9 required under section 101(3). The result of this calculation
10 shall not exceed the amount per membership pupil otherwise
11 calculated under this subsection.
12 (7) If more than 25% of the pupils residing within a district
13 are in membership in 1 or more public school academies located in
14 the district, then the amount per membership pupil calculated
15 under this section for a public school academy located in the
16 district shall be reduced by an amount equal to the difference
17 between the product of the taxable value per membership pupil of
18 all property in the district that is not a principal residence or
19 qualified agricultural property times the lesser of 18 mills or
20 the number of mills of school operating taxes levied by the
21 district in 1993-94 and the quotient of the ad valorem property
22 tax revenue of the district captured under 1975 PA 197,
23 MCL 125.1651 to 125.1681, the tax increment finance authority
24 act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development
25 financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the
26 brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651
27 to 125.2672, divided by the district's membership excluding
1 special education pupils, in the school fiscal year ending in the
2 current state fiscal year, calculated as if the resident pupils
3 in membership in 1 or more public school academies located in the
4 district were in membership in the district. In order to receive
5 state school aid under this act, a district described in this
6 subsection shall pay to the authorizing body that is the fiscal
7 agent for a public school academy located in the district for
8 forwarding to the public school academy an amount equal to that
9 local school operating revenue per membership pupil for each
10 resident pupil in membership other than special education pupils
11 in the public school academy, as determined by the department.
12 (8) If a district does not receive an amount calculated under
13 subsection (9); if the number of mills the district may levy on a
14 principal residence and qualified agricultural property under
15 section 1211(1) of the revised school code, MCL 380.1211, is 0.5
16 mills or less; and if the district elects not to levy those
17 mills, the district instead shall receive a separate supplemental
18 amount calculated under this subsection in an amount equal to the
19 amount the district would have received had it levied those
20 mills, as determined by the department of treasury. A district
21 shall not receive a separate supplemental amount calculated under
22 this subsection for a fiscal year unless in the calendar year
23 ending in the fiscal year the district levies 18 mills or the
24 number of mills of school operating taxes levied by the district
25 in 1993, whichever is less, on property that is not a principal
26 residence or qualified agricultural property.
27 (9) For a district that had combined state and local revenue
1 per membership pupil in the 1993-94 state fiscal year of more
2 than $6,500.00 and that had fewer than 350 pupils in membership,
3 if the district elects not to reduce the number of mills from
4 which a principal residence and qualified agricultural property
5 are exempt and not to levy school operating taxes on a principal
6 residence and qualified agricultural property as provided in
7 section 1211(1) of the revised school code, MCL 380.1211, and not
8 to levy school operating taxes on all property as provided in
9 section 1211(2) of the revised school code, MCL 380.1211, there
10 is calculated under this subsection for 1994-95 and each
11 succeeding fiscal year a separate supplemental amount in an
12 amount equal to the amount the district would have received per
13 membership pupil had it levied school operating taxes on a
14 principal residence and qualified agricultural property at the
15 rate authorized for the district under section 1211(1) of the
16 revised school code, MCL 380.1211, and levied school operating
17 taxes on all property at the rate authorized for the district
18 under section 1211(2) of the revised school code, MCL 380.1211,
19 as determined by the department of treasury. If in the calendar
20 year ending in the fiscal year a district does not levy 18 mills
21 or the number of mills of school operating taxes levied by the
22 district in 1993, whichever is less, on property that is not a
23 principal residence or qualified agricultural property, the
24 amount calculated under this subsection will be reduced by the
25 same percentage as the millage actually levied compares to the 18
26 mills or the number of mills levied in 1993, whichever is less.
27 (10) Subject to subsection (4), for a district that is formed
1 or reconfigured after June 1, 2002 by consolidation of 2 or more
2 districts or by annexation, the resulting district's foundation
3 allowance under this section beginning after the effective date
4 of the consolidation or annexation shall be the average of the
5 foundation allowances of each of the original or affected
6 districts, calculated as provided in this section, weighted as to
7 the percentage of pupils in total membership in the resulting
8 district who reside in the geographic area of each of the
9 original or affected districts.
10 (11) Each fraction used in making calculations under this
11 section shall be rounded to the fourth decimal place and the
12 dollar amount of an increase in the basic foundation allowance
13 shall be rounded to the nearest whole dollar.
14 (12) State payments related to payment of the foundation
15 allowance for a special education pupil are not calculated under
16 this section but are instead calculated under section 51a.
17 (13) To assist the legislature in determining the basic
18 foundation allowance for the subsequent state fiscal year, each
19 revenue estimating conference conducted under section 367b of the
20 management and budget act, 1984 PA 431, MCL 18.1367b, shall
21 calculate a pupil membership factor, a revenue adjustment factor,
22 and an index as follows:
23 (a) The pupil membership factor shall be computed by dividing
24 the estimated membership in the school year ending in the current
25 state fiscal year, excluding intermediate district membership, by
26 the estimated membership for the school year ending in the
27 subsequent state fiscal year, excluding intermediate district
1 membership. If a consensus membership factor is not determined
2 at the revenue estimating conference, the principals of the
3 revenue estimating conference shall report their estimates to the
4 house and senate subcommittees responsible for school aid
5 appropriations not later than 7 days after the conclusion of the
6 revenue conference.
7 (b) The revenue adjustment factor shall be computed by
8 dividing the sum of the estimated total state school aid fund
9 revenue for the subsequent state fiscal year plus the estimated
10 total state school aid fund revenue for the current state fiscal
11 year, adjusted for any change in the rate or base of a tax the
12 proceeds of which are deposited in that fund and excluding money
13 transferred into that fund from the countercyclical budget and
14 economic stabilization fund under section 353e of the management
15 and budget act, 1984 PA 431, MCL 18.1353e, by the sum of the
16 estimated total school aid fund revenue for the current state
17 fiscal year plus the estimated total state school aid fund
18 revenue for the immediately preceding state fiscal year, adjusted
19 for any change in the rate or base of a tax the proceeds of which
20 are deposited in that fund. If a consensus revenue factor is not
21 determined at the revenue estimating conference, the principals
22 of the revenue estimating conference shall report their estimates
23 to the house and senate subcommittees responsible for school aid
24 appropriations not later than 7 days after the conclusion of the
25 revenue conference.
26 (c) The index shall be calculated by multiplying the pupil
27 membership factor by the revenue adjustment factor. However, for
1 2003-2004 only 2004-2005, the index shall be 1.00. If a
2 consensus index is not determined at the revenue estimating
3 conference, the principals of the revenue estimating conference
4 shall report their estimates to the house and senate
5 subcommittees responsible for school aid appropriations not later
6 than 7 days after the conclusion of the revenue conference.
7 (14) If the principals at the revenue estimating conference
8 reach a consensus on the index described in subsection (13)(c),
9 the basic foundation allowance for the subsequent state fiscal
10 year shall be at least the amount of that consensus index
11 multiplied by the basic foundation allowance specified in
12 subsection (1).
13 (15) If at the January revenue estimating conference it is
14 estimated that pupil membership, excluding intermediate district
15 membership, for the subsequent state fiscal year will be greater
16 than 101% of the pupil membership, excluding intermediate
17 district membership, for the current state fiscal year, then it
18 is the intent of the legislature that the executive budget
19 proposal for the school aid budget for the subsequent state
20 fiscal year include a general fund/general purpose allocation
21 sufficient to support the membership in excess of 101% of the
22 current year pupil membership.
23 (16) For a district that had combined state and local revenue
24 per membership pupil in the 1993-94 state fiscal year of more
25 than $6,500.00, that had fewer than 7 pupils in membership in the
26 1993-94 state fiscal year, that has at least 1 child educated in
27 the district in the current state fiscal year, and that levies
1 the number of mills of school operating taxes authorized for the
2 district under section 1211 of the revised school code,
3 MCL 380.1211, a minimum amount of combined state and local
4 revenue shall be calculated for the district as provided under
5 this subsection. The minimum amount of combined state and local
6 revenue for 1999-2000 shall be $67,000.00 plus the district's
7 additional expenses to educate pupils in grades 9 to 12 educated
8 in other districts as determined and allowed by the department.
9 The minimum amount of combined state and local revenue under this
10 subsection, before adding the additional expenses, shall increase
11 each fiscal year by the same percentage increase as the
12 percentage increase in the basic foundation allowance from the
13 immediately preceding fiscal year to the current fiscal year.
14 The state portion of the minimum amount of combined state and
15 local revenue under this subsection shall be calculated by
16 subtracting from the minimum amount of combined state and local
17 revenue under this subsection the sum of the district's local
18 school operating revenue and an amount equal to the product of
19 the sum of the state portion of the district's foundation
20 allowance plus the amount calculated under section 20j times the
21 district's membership. As used in this subsection, "additional
22 expenses" means the district's expenses for tuition or fees, not
23 to exceed $6,500.00 as adjusted each year by an amount equal to
24 the dollar amount of the difference between the basic foundation
25 allowance for the current state fiscal year and $5,000.00, minus
26 $200.00, plus a room and board stipend not to exceed $10.00 per
27 school day for each pupil in grades 9 to 12 educated in another
1 district, as approved by the department.
2 (17) For a district in which 7.75 mills levied in 1992 for
3 school operating purposes in the 1992-93 school year were not
4 renewed in 1993 for school operating purposes in the 1993-94
5 school year, the district's combined state and local revenue per
6 membership pupil shall be recalculated as if that millage
7 reduction did not occur and the district's foundation allowance
8 shall be calculated as if its 1994-95 foundation allowance had
9 been calculated using that recalculated 1993-94 combined state
10 and local revenue per membership pupil as a base. A district is
11 not entitled to any retroactive payments for fiscal years before
12 2000-2001 due to this subsection.
13 (18) For a district in which an industrial facilities
14 exemption certificate that abated taxes on property with a state
15 equalized valuation greater than the total state equalized
16 valuation of the district at the time the certificate was issued
17 or $700,000,000.00, whichever is greater, was issued under 1974
18 PA 198, MCL 207.551 to 207.572, before the calculation of the
19 district's 1994-95 foundation allowance, the district's
20 foundation allowance for 2002-2003 is an amount equal to the sum
21 of the district's foundation allowance for 2002-2003, as
22 otherwise calculated under this section, plus $250.00.
23 (19) For a district that received a grant under former
24 section 32e for
2001-2002, the district's foundation allowance
25 for 2002-2003 shall be
adjusted to be an amount equal to the sum
26 of the district's
foundation allowance, as otherwise calculated
27 under this section,
plus the quotient of the amount of the grant
1 award to the district
for 2001-2002 under former section 32e
2 divided by the
district's membership for 2001-2002, and the
3 district's foundation
allowance for 2003-2004 2002-2003 and
4 each succeeding fiscal year shall be adjusted to be an amount
5 equal to the sum of the district's foundation allowance, as
6 otherwise calculated under this section, plus the quotient of
7 100% of the amount of the grant award to the district for
8 2001-2002 under former section 32e divided by the number of
9 pupils in the district's membership for 2001-2002 who were
10 residents of and enrolled in the district. Except as otherwise
11 provided in this subsection, a district qualifying for a
12 foundation allowance adjustment under this subsection shall use
13 the funds resulting from this adjustment for at least 1 of grades
14 K to 3 for purposes allowable under former section 32e as in
15 effect for 2001-2002. For an individual school or schools
16 operated by a district qualifying for a foundation allowance
17 under this subsection that have been determined by the department
18 to meet the adequate yearly progress standards of the federal no
19 child left behind act of 2001, Public Law 107-110, 115
20 Stat. 1425, in both mathematics and English language arts at all
21 applicable grade levels for all applicable subgroups, the
22 district may submit to the department an application for
23 flexibility in using the funds resulting from this adjustment
24 that are attributable to the pupils in the school or schools.
25 The application shall identify the affected school or schools and
26 the affected funds and shall contain a plan for using the funds
27 for specific purposes identified by the district that are
Senate Bill No. 1069 (H-1) as amended June 9, 2004
1 designed to reduce class size, but that may be different from the
2 purposes otherwise allowable under this subsection. The
3 department shall approve the application if the department
4 determines that the purposes identified in the plan are
5 reasonably designed to reduce class size. If the department does
6 not act to approve or disapprove an application within 30 days
7 after it is submitted to the department, the application is
8 considered to be approved. If an application for flexibility in
9 using the funds is approved, the district may use the funds
10 identified in the application for any purpose identified in the
11 plan.
12 (20) For a district that is a qualifying school district with
13 a school reform board in place under part 5a of the revised
14 school code, MCL 380.371 to 380.376, the district's foundation
15 allowance for 2002-2003 shall be adjusted to be an amount equal
16 to the sum of the district's foundation allowance, as otherwise
17 calculated under this section, plus the quotient of
18 $15,000,000.00 $100.00 divided by the district's membership
for
19 2002-2003. If a district ceases to meet the requirements of this
20 subsection, the department shall adjust the district's foundation
21 allowance in effect at that time based on a 2002-2003 foundation
22 allowance for the district that does not include the 2002-2003
23 adjustment under this subsection. This adjustment shall be made
24 within 60 days after the date of the election at which the school
25 electors vote to remove the school reform board. [This subsection only applies for 2002-2003 and 2003-2004. Beginning in 2004-2005, the foundation allowance of a district that received an increased foundation allowance for 2002-2003 and 2003-2004 due to adjustment under this subsection shall be calculated as if the adjustments under this subsection for 2002-2003 and 2003-2004 did not occur.]
26 (21) For a district in which the school electors voted in
27 1993 on a proposal to override a millage reduction required under
1 section 31 of article IX of the state constitution of 1963 of
2 4.38 mills for operating purposes but did not approve the
3 proposal, the district's combined state and local revenue per
4 membership pupil shall be recalculated as if that millage
5 reduction did not occur and, beginning in 2004-2005, the
6 district's foundation allowance shall be calculated as if its
7 1994-1995 foundation allowance had been calculated using the
8 recalculated 1993-1994 combined state and local revenue per
9 membership pupil as a base. A district is not entitled to any
10 retroactive payments for fiscal years before 2004-2005 due to
11 this subsection. A district receiving an adjustment under this
12 subsection shall not receive more than $500,000.00 for a fiscal
13 year as a result of this adjustment.
14 (22) For a district that levied 1.9 mills in 1993 to finance
15 an operating deficit, the district's foundation allowance shall
16 be calculated as if those mills were included as operating mills
17 in the calculation of the district's 1994-1995 foundation
18 allowance. A district is not entitled to any retroactive
19 payments for fiscal years before 2004-2005 due to this
20 subsection. A district receiving an adjustment under this
21 subsection shall not receive more than $700,000.00 for a fiscal
22 year as a result of this adjustment.
23 (23) (21) Payments
to districts, university schools, or
24 public school academies shall not be made under this section.
25 Rather, the calculations under this section shall be used to
26 determine the amount of state payments under section 22b.
27 (24) (22) If
an amendment to section 2 of article VIII of
1 the state constitution of 1963 allowing state aid to some or all
2 nonpublic schools is approved by the voters of this state, each
3 foundation allowance or per pupil payment calculation under this
4 section may be reduced.
5 (25) (23) As
used in this section:
6 (a) "Combined state and local revenue" means the aggregate of
7 the district's state school aid received by or paid on behalf of
8 the district under this section and the district's local school
9 operating revenue.
10 (b) "Combined state and local revenue per membership pupil"
11 means the district's combined state and local revenue divided by
12 the district's membership excluding special education pupils.
13 (c) "Current state fiscal year" means the state fiscal year
14 for which a particular calculation is made.
15 (d) "Immediately preceding state fiscal year" means the state
16 fiscal year immediately preceding the current state fiscal year.
17 (e) "Local school operating revenue" means school operating
18 taxes levied under section 1211 of the revised school code,
19 MCL 380.1211.
20 (f) "Local school operating revenue per membership pupil"
21 means a district's local school operating revenue divided by the
22 district's membership excluding special education pupils.
23 (g) "Membership" means the definition of that term under
24 section 6 as in effect for the particular fiscal year for which a
25 particular calculation is made.
26 (h) "Principal residence" and "qualified agricultural
27 property" mean those terms as defined in section 7dd of the
1 general property tax act, 1893 PA 206, MCL 211.7dd.
2 (i) "School operating purposes" means the purposes included
3 in the operation costs of the district as prescribed in
4 sections 7 and 18.
5 (j) "School operating taxes" means local ad valorem property
6 taxes levied under section 1211 of the revised school code,
7 MCL 380.1211, and retained for school operating purposes.
8 (k) "Taxable value per membership pupil" means taxable value,
9 as certified by the department of treasury, for the calendar year
10 ending in the current state fiscal year divided by the district's
11 membership excluding special education pupils for the school year
12 ending in the current state fiscal year.
13 Sec. 20l. (1) From the allocation in section 22b, there is
14 allocated for 2004-2005 an amount not to exceed $100.00 for
15 consolidation incentive payments to districts under this
16 section. A district that is formed by consolidation, or by the
17 annexation by 1 district of all of the territory of another
18 district, after June 1, 2004 is eligible to receive a
19 consolidation incentive payment under this section. The payment
20 of an incentive payment to a district under this section shall be
21 an amount equal to $25.00 per pupil in membership in the
22 consolidated district or in the district formed by the
23 annexation, not to exceed a total payment of $500,000.00 to any
24 1 consolidated district or district formed by annexation.
25 (2) If the amount allocated under this section for a
26 particular fiscal year is not sufficient to fully fund payments
27 to all eligible districts for the fiscal year, the department
1 shall prorate payments under this section for that fiscal year on
2 an equal percentage basis.
3 Sec. 21b. (1) Subject to subsections (2) and (3), a
4 district shall use funds
received under section 20 or, beginning
5 in 2000-2001, under section 22a or 22b to support the attendance
6 of a district pupil at an eligible postsecondary institution
7 under the postsecondary enrollment options act, 1996 PA 160,
8 MCL 388.511 to 388.524, or under the career and technical
9 preparation act, 2000 PA 258, MCL 388.1901 to 388.1913.
10 (2) To the extent required under subsection (3), a district
11 shall pay tuition and mandatory course fees, material fees, and
12 registration fees required by an eligible postsecondary
13 institution for enrollment in an eligible course. A district
14 also shall pay any late fees charged by an eligible postsecondary
15 institution due to the district's failure to make a required
16 payment according to the timetable prescribed by the
17 postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to
18 388.524, or the career and technical preparation act, 2000 PA
19 258, MCL 388.1901 to 388.1913. A district is not required to pay
20 transportation costs, parking costs, or activity fees.
21 (3) A district shall pay to the eligible postsecondary
22 institution on behalf of an eligible student an amount equal to
23 the lesser of the amount of the eligible charges described in
24 subsection (2) or the prorated percentage of the state portion of
25 the foundation allowance paid or calculated, as applicable, on
26 behalf of that eligible student under section 20, with the
27 proration based on the proportion of the school year that the
1 eligible student attends the postsecondary institution. A
2 district may pay more money to an eligible postsecondary
3 institution on behalf of an eligible student than required under
4 this section and the postsecondary enrollment options act, 1996
5 PA 160, MCL 388.511 to 388.524, or the career and technical
6 preparation act, 2000 PA 258, MCL 388.1901 to 388.1913, and may
7 use local school operating revenue for that purpose. An eligible
8 student is responsible for payment of the remainder of the costs
9 associated with his or her postsecondary enrollment that exceed
10 the amount the district is required to pay under this section and
11 the postsecondary enrollment options act, 1996 PA 160,
12 MCL 388.511 to 388.524, or the career and technical preparation
13 act, 2000 PA 258, MCL 388.1901 to 388.1913, and that are not paid
14 by the district. As used in this subsection, "local school
15 operating revenue" means that term as defined in section 20.
16 (4) As used in this section, "eligible course", "eligible
17 student", and "eligible postsecondary institution" mean those
18 terms as defined in section 3 of the postsecondary enrollment
19 options act, 1996 PA 160, MCL 388.511 to 388.524, or in section 3
20 of the career and technical preparation act, 2000 PA 258, MCL
21 388.1903, as applicable.
22 Sec. 22a. (1) From the appropriation in section 11, there
23 is allocated an amount
not to exceed $6,816,000,000.00
24 $6,765,300,000.00 for 2003-2004 and an amount not to exceed
25 $6,690,300,000.00 for 2004-2005 for payments to districts,
26 qualifying university schools, and qualifying public school
27 academies to guarantee each district, qualifying university
1 school, and qualifying public school academy an amount equal to
2 its 1994-95 total state and local per pupil revenue for school
3 operating purposes under section 11 of article IX of the state
4 constitution of 1963. Pursuant to section 11 of article IX of
5 the state constitution of 1963, this guarantee does not apply to
6 a district in a year in which the district levies a millage rate
7 for school district operating purposes less than it levied in
8 1994. However, subsection (2) applies to calculating the
9 payments under this section. Funds allocated under this section
10 that are not expended in the state fiscal year for which they
11 were allocated, as determined by the department, may be used to
12 supplement the allocations under sections 22b and 51c in order to
13 fully fund those calculated allocations for the same fiscal
14 year.
15 (2) To ensure that a district receives an amount equal to the
16 district's 1994-95 total state and local per pupil revenue for
17 school operating purposes, there is allocated to each district a
18 state portion of the district's 1994-95 foundation allowance in
19 an amount calculated as follows:
20 (a) Except as otherwise provided in this subsection, the
21 state portion of a district's 1994-95 foundation allowance is an
22 amount equal to the district's 1994-95 foundation allowance or
23 $6,500.00, whichever is less, minus the difference between the
24 product of the taxable value per membership pupil of all property
25 in the district that is not a homestead or qualified agricultural
26 property times the lesser of 18 mills or the number of mills of
27 school operating taxes levied by the district in 1993-94 and the
1 quotient of the ad valorem property tax revenue of the district
2 captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax
3 increment finance authority act, 1980 PA 450, MCL 125.1801 to
4 125.1830, the local development financing act, 1986 PA 281,
5 MCL 125.2151 to 125.2174, or the brownfield redevelopment
6 financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by
7 the district's membership. For a district that has a millage
8 reduction required under section 31 of article IX of the state
9 constitution of 1963, the state portion of the district's
10 foundation allowance shall be calculated as if that reduction did
11 not occur.
12 (b) For a district that had a 1994-95 foundation allowance
13 greater than $6,500.00, the state payment under this subsection
14 shall be the sum of the amount calculated under subdivision (a)
15 plus the amount calculated under this subdivision. The amount
16 calculated under this subdivision shall be equal to the
17 difference between the district's 1994-95 foundation allowance
18 minus $6,500.00 and the current year hold harmless school
19 operating taxes per pupil. If the result of the calculation
20 under subdivision (a) is negative, the negative amount shall be
21 an offset against any state payment calculated under this
22 subdivision. If the result of a calculation under this
23 subdivision is negative, there shall not be a state payment or a
24 deduction under this subdivision. The taxable values per
25 membership pupil used in the calculations under this subdivision
26 are as adjusted by ad valorem property tax revenue captured under
27 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance
1 authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local
2 development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,
3 or the brownfield redevelopment financing act, 1996 PA 381,
4 MCL 125.2651 to 125.2672, divided by the district's membership.
5 (3) For Beginning
in 2003-2004, for pupils in membership in
6 a qualifying public school academy or qualifying university
7 school, there is
allocated under this section for 2003-2004 to
8 the authorizing body that is the fiscal agent for the qualifying
9 public school academy for forwarding to the qualifying public
10 school academy, or to the board of the public university
11 operating the qualifying university school, an amount equal to
12 the 1994-95 per pupil payment to the qualifying public school
13 academy or qualifying university school under section 20.
14 (4) A district, qualifying university school, or qualifying
15 public school academy may use funds allocated under this section
16 in conjunction with any federal funds for which the district,
17 qualifying university school, or qualifying public school academy
18 otherwise would be eligible.
19 (5) For a district that is formed or reconfigured after
20 June 1, 2000 by consolidation of 2 or more districts or by
21 annexation, the resulting district's 1994-95 foundation allowance
22 under this section beginning after the effective date of the
23 consolidation or annexation shall be the average of the 1994-95
24 foundation allowances of each of the original or affected
25 districts, calculated as provided in this section, weighted as to
26 the percentage of pupils in total membership in the resulting
27 district in the state fiscal year in which the consolidation
1 takes place who reside in the geographic area of each of the
2 original districts. If an affected district's 1994-95 foundation
3 allowance is less than the 1994-95 basic foundation allowance,
4 the amount of that district's 1994-95 foundation allowance shall
5 be considered for the purpose of calculations under this
6 subsection to be equal to the amount of the 1994-95 basic
7 foundation allowance.
8 (6) As used in this section:
9 (a) "1994-95 foundation allowance" means a district's 1994-95
10 foundation allowance calculated and certified by the department
11 of treasury or the superintendent under former section 20a as
12 enacted in 1993 PA 336 and as amended by 1994 PA 283.
13 (b) "Current state fiscal year" means the state fiscal year
14 for which a particular calculation is made.
15 (c) "Current year hold harmless school operating taxes per
16 pupil" means the per pupil revenue generated by multiplying a
17 district's 1994-95 hold harmless millage by the district's
18 current year taxable value per membership pupil.
19 (d) "Hold harmless millage" means, for a district with a
20 1994-95 foundation allowance greater than $6,500.00, the number
21 of mills by which the exemption from the levy of school operating
22 taxes on a homestead and qualified agricultural property could be
23 reduced as provided in section 1211(1) of the revised school
24 code, MCL 380.1211, and the number of mills of school operating
25 taxes that could be levied on all property as provided in section
26 1211(2) of the revised school code, MCL 380.1211, as certified by
27 the department of treasury for the 1994 tax year.
1 (e) "Homestead" means that term as defined in section 1211 of
2 the revised school code, MCL 380.1211.
3 (f) "Membership" means the definition of that term under
4 section 6 as in effect for the particular fiscal year for which a
5 particular calculation is made.
6 (g) "Qualified agricultural property" means that term as
7 defined in section 1211 of the revised school code,
8 MCL 380.1211.
9 (h) "Qualifying public school academy" means a public school
10 academy that was in operation in the 1994-95 school year and is
11 in operation in the current state fiscal year.
12 (i) "Qualifying university school" means a university school
13 that was in operation in the 1994-95 school year and is in
14 operation in the current fiscal year.
15 (j) "School operating taxes" means local ad valorem property
16 taxes levied under section 1211 of the revised school code,
17 MCL 380.1211, and retained for school operating purposes.
18 (k) "Taxable value per membership pupil" means each of the
19 following divided by the district's membership:
20 (i) For the number of mills by which the exemption from the
21 levy of school operating taxes on a homestead and qualified
22 agricultural property may be reduced as provided in section
23 1211(1) of the revised school code, MCL 380.1211, the taxable
24 value of homestead and qualified agricultural property for the
25 calendar year ending in the current state fiscal year.
26 (ii) For the number of mills of school operating taxes that
27 may be levied on all property as provided in section 1211(2) of
1 the revised school code, MCL 380.1211, the taxable value of all
2 property for the calendar year ending in the current state fiscal
3 year.
4 Sec. 22b. (1) From the appropriation in section 11, there
5 is allocated an amount
not to exceed $2,881,000,000.00 for
6 2003-2004 $2,901,700,000.00 for 2004-2005 for
discretionary
7 nonmandated payments to districts under this section. Funds
8 allocated under this section that are not expended in the state
9 fiscal year for which they were allocated, as determined by the
10 department, may be used to supplement the allocations under
11 sections 22a and 51c in order to fully fund those calculated
12 allocations for the same fiscal year.
13 (2) Subject to subsection (3) and section 11, the allocation
14 to a district under this section shall be an amount equal to the
15 sum of the amounts calculated under sections 20, 20j, 51a(2),
16 51a(3), and 51a(12), minus the sum of the allocations to the
17 district under sections 22a and 51c.
18 (3) In order to receive an allocation under this section,
19 each district shall administer in each grade level that it
20 operates in grades 1 to 5 a standardized assessment approved by
21 the department of grade-appropriate basic educational skills. A
22 district may use the Michigan literacy progress profile to
23 satisfy this requirement for grades 1 to 3. Also, if the revised
24 school code is amended to require annual assessments at
25 additional grade levels, in order to receive an allocation under
26 this section each district shall comply with that requirement.
27 (4) From the allocation in subsection (1), the department
1 shall expend funds to
pay for necessary costs associated with
2 resolving matters
pending in federal court impacting payments to
3 districts, including,
but not limited to, expert witness fees.
4 Beginning in
2001-2002, from the allocation in subsection (1),
5 the department shall
also pay up to $1,000,000.00 in
litigation
6 costs incurred by this state associated with lawsuits filed by 1
7 or more districts or intermediate districts against this state.
8 If the allocation under this section is insufficient to fully
9 fund all payments required under this section, the payments under
10 this subsection shall be made in full before any proration of
11 remaining payments under this section.
12 (5) It is the intent of the legislature that all
13 constitutional obligations of this state have been fully funded
14 under sections 22a, 31d, 51a, and 51c. If a claim is made by an
15 entity receiving funds under this act that challenges the
16 legislative determination of the adequacy of this funding or
17 alleges that there exists an unfunded constitutional requirement,
18 the state budget director may escrow or allocate from the
19 discretionary funds for nonmandated payments under this section
20 the amount as may be necessary to satisfy the claim before making
21 any payments to districts under subsection (2). If funds are
22 escrowed, the escrowed funds are a work project appropriation and
23 the funds are carried forward into the following fiscal year.
24 The purpose of the work project is to provide for any payments
25 that may be awarded to districts as a result of litigation. The
26 work project shall be completed upon resolution of the
27 litigation.
1 (6) If the local claims review board or a court of competent
2 jurisdiction makes a final determination that this state is in
3 violation of section 29 of article IX of the state constitution
4 of 1963 regarding state payments to districts, the state budget
5 director shall use work project funds under subsection (5) or
6 allocate from the discretionary funds for nonmandated payments
7 under this section the amount as may be necessary to satisfy the
8 amount owed to districts before making any payments to districts
9 under subsection (2).
10 (7) If a claim is made in court that challenges the
11 legislative determination of the adequacy of funding for this
12 state's constitutional obligations or alleges that there exists
13 an unfunded constitutional requirement, any interested party may
14 seek an expedited review of the claim by the local claims review
15 board. If the claim exceeds $10,000,000.00, this state may
16 remove the action to the court of appeals, and the court of
17 appeals shall have and shall exercise jurisdiction over the
18 claim.
19 (8) If payments resulting from a final determination by the
20 local claims review board or a court of competent jurisdiction
21 that there has been a violation of section 29 of article IX of
22 the state constitution of 1963 exceed the amount allocated for
23 discretionary nonmandated payments under this section, the
24 legislature shall provide for adequate funding for this state's
25 constitutional obligations at its next legislative session.
26 (9) If a lawsuit challenging payments made to districts
27 related to costs reimbursed by federal title XIX medicaid funds
1 is filed against this state during 2001-2002, 2002-2003, or
2 2003-2004, 50% of the amount allocated in subsection (1) not
3 previously paid out for 2002-2003, 2003-2004, and each succeeding
4 fiscal year is a work project appropriation and the funds are
5 carried forward into the following fiscal year. The purpose of
6 the work project is to provide for any payments that may be
7 awarded to districts as a result of the litigation. The work
8 project shall be completed upon resolution of the litigation. In
9 addition, this state reserves the right to terminate future
10 federal title XIX medicaid reimbursement payments to districts if
11 the amount or allocation of reimbursed funds is challenged in the
12 lawsuit. As used in this subsection, "title XIX" means title XIX
13 of the social security
act, chapter 531, 49 Stat. 620, 42
14 U.S.C. USC 1396 to 1396r-6 and 1396r-8 to 1396v.
15 Sec. 22d. (1) From the amount allocated under section 22b,
16 an amount not to exceed $1,000,000.00 is allocated for additional
17 payments to small, geographically isolated districts under this
18 section.
19 (2) To be eligible for a payment under this section, a
20 district shall meet all of the following:
21 (a) Operates grades K to 12.
22 (b) Has fewer than 250 pupils in membership.
23 (c) Each school building operated by the district meets at
24 least 1 of the following:
25 (i) Is located in the Upper Peninsula at least 30 miles from
26 any other public school building.
27 (ii) Is located on an island that is not accessible by
House Bill No. 1069 (H-1) as amended June 9, 2004
1 bridge.
2 (3) The amount of the additional funding to each eligible
3 district under this section shall be determined under a spending
4 plan developed as provided in this subsection and approved by the
5 superintendent of public instruction. The spending plan shall be
6 developed cooperatively by the intermediate superintendents of
7 each intermediate district in which an eligible district is
8 located. The intermediate superintendents shall review the
9 financial situation of each eligible district, determine the
10 minimum essential financial needs of each eligible district, and
11 develop and agree on a spending plan that distributes the
12 available funding under this section to the eligible districts
13 based on those financial needs. The intermediate superintendents
14 shall submit the spending plan to the superintendent of public
15 instruction for approval. Upon approval by the superintendent of
16 public instruction, the amounts specified for each eligible
17 district under the spending plan are allocated under this section
18 and shall be paid to the eligible districts in the same manner as
19 payments under section 22b.
20 [Sec.
24. (1) Subject to
subsection (2), from From
the
21 appropriation
in section 11, there is allocated each fiscal year for
22 2002-2003,
and for 2003-2004 for
2004-2005 an amount not to exceed
23 $8,000,000.00 for payments to the educating district or intermediate
24 district an amount equal to 100% of the added cost
each fiscal year for
25 educating all pupils assigned by a court or the family independence
26 agency to reside in or to attend a juvenile detention facility or child
27 caring
institution licensed by the family independence agency or the
Senate Bill No. 1069 (H-1) as amended June 9, 2004
1 department of consumer and industry services and approved by the
2 department
to provide an on-grounds education program. The total amount
3 to be paid
under this section for added cost shall not exceed
4 $8,900,000.00
for 2002-2003 and $8,000,000.00 for 2003-2004. The amount
5 of the payment under this section to a district or intermediate district
6 shall be calculated as prescribed under subsection (2).
7 (2) For 2004-2005, 70% of the total amount allocated under this
8 section shall be allocated by paying to the educating district or
9 intermediate district an amount equal to the lesser of the district's or
10 intermediate district's added cost or the department's approved per pupil
11 allocation for the district or intermediate district, and 30% of the
12 total amount allocated under this section shall be allocated by paying to
13 the educating district or intermediate district an amount equal to the
14 district's or intermediate district's added cost. For 2005-2006, 80% of
15 the total amount allocated under this section shall be allocated by
16 paying to the educating district or intermediate district an amount equal
17 to the lesser of the district's or intermediate district's added cost or
18 the department's approved per pupil allocation for the district or
19 intermediate district, and 20% of the total amount allocated under this
20 section shall be allocated by paying to the educating district or
21 intermediate district an amount equal to the district's or intermediate
22 district's added cost. For 2006-2007, 90% of the total amount allocated
23 under this section shall be allocated by paying to the educating district
24 or intermediate district an amount equal to the lesser of the district's
25 or intermediate district's added cost or the department's approved per
26 pupil allocation for the district or intermediate district, and 10% of
27 the total amount allocated under this section shall be allocated by
Senate Bill No. 1069 (H-1) as amended June 9, 2004 (1 of 2)
1 paying to the educating district or intermediate district an amount equal
2 to the district's or intermediate district's added cost. For 2007-2008,
3 100% of the total amount allocated under this section shall be allocated
4 by paying to the educating district or intermediate district an amount
5 equal to the lesser of the district's or intermediate district's added
6 cost or the department's approved per pupil allocation for the district
7 or
intermediate district.
For the purposes of this section,
"added
8 cost" subsection:
9 (a)
"Added cost" means 100% of the added cost each fiscal year for
10 educating
all pupils assigned by a court or the family independence
11 agency
to reside in or to attend a juvenile detention facility or child
12 caring
institution licensed by the family independence agency or the
13 department
of consumer and industry services and approved by the
14 department
to provide an on-grounds education program. Added cost shall
15 be computed
by deducting all other revenue received under this act for
16 pupils
described in this section from total costs, as approved by the
17 department,
in whole or in part, for educating those pupils in the on-
18 grounds
education program or in a program approved by the department that
19 is located on property adjacent to a juvenile detention facility or child
20 caring institution. Costs reimbursed by federal funds are not included.
21 For 2003-2004
only, for an on-grounds education program or a program located on property
adjacent to a juvenile detention facility or child caring institution that was
not in existence at the time the allocations under this section were approved,
the department shall give approval for only that portion of the educating
district's or intermediate district's total costs that will not prevent the
allocated amounts under this section from first being applied to 100% of the
added cost of the programs that were in existence at the time the preliminary
allocations under this section were approved.
(b) "Department's approved per pupil allocation" for a district or intermediate district shall be determined by dividing the total amount allocated under this section for a fiscal year by the full-time equated membership total for all pupils approved by the department to be funded under this section for that fiscal year for the district or intermediate district.
(3) (2) A district or
intermediate district educating pupils described in this section at a
residential child caring institution may operate, and receive funding under
this section for, a department-approved on-grounds educational program for
those pupils that is longer than 181 days, but not longer than 233 days, if the
child caring institution was licensed as a child caring institution and offered
in 1991-92 an on-grounds educational program that was longer than 181 days but
not longer than 233 days and that was operated by a district or intermediate
district.
(4) (3) Special
education pupils funded under section 53a shall not be funded under this
section.
(4) The department shall appoint a committee to study and
make recommendations concerning issues related to the education of pupils under
this section, including, but not limited to, pupil counts, cost controls, and
the number and type of eligible programs under this section. The committee may
include, but is not limited to, appointees from 1 or more adjudicated youth
educators associations, the house fiscal agency, the senate fiscal agency, the
department of management and budget, the family independence agency, the
department of corrections, the court system, and the department. Not later
than May 15, 2004, the committee shall submit its recommendations to the house
and senate appropriations subcommittees responsible for this act and to the
department of management and budget.]
22 Sec. 26. A district or intermediate district receiving
23 money pursuant to 1975 PA 197, MCL 125.1651 to 125.1681, the tax
24 increment finance authority act, 1980 PA 450, MCL 125.1801 to
25 125.1830, the local development financing act, 1986 PA 281, MCL
26 125.2151 to 125.2174, or the Brownfield redevelopment financing
27 act, 1996 PA 381, MCL 125.2651 to 125.2672, shall have its funds
1 received under section 20
22b, 56, or 62 reduced by an amount
2 equal to the added local money.
3 Sec. 26a. (1) From the general fund appropriation in
4 section 11, there is allocated an amount not to exceed
5 $29,960,000.00 for
2003-2004 $36,337,200.00 for
2004-2005 to
6 reimburse districts, intermediate districts, and the state school
7 aid fund pursuant to section 12 of the Michigan renaissance zone
8 act, 1996 PA 376, MCL
125.2692, for taxes levied in 2003 2004
9 or for payments to districts as reimbursement for interest paid
10 as a result of property tax refunds. This reimbursement shall
11 be made by adjusting
payments under section 22a to eligible
12 districts, adjusting
payments under section 56, 62, or 81 to
13 eligible intermediate
districts, and adjusting the state school
14 aid fund. The adjustments allocations shall be
made not later
15 than 60 days after the department of treasury certifies to the
16 department and to the state budget director that the department
17 of treasury has received all necessary information to properly
18 determine the amounts due to each eligible recipient.
19 (2) From the allocation in subsection (1), there is
20 allocated an amount not to exceed $120,000.00 for 2004-2005 for
21 interest payments to districts under this subsection. If the
22 department determines that a district is required to pay interest
23 on any property tax refund ordered in the partial consent
24 judgment entered on November 6, 2001 in Hitachi Magnetics
25 Corporation v Home Township, Michigan tax tribunal, docket
26 nos. 190507 and 247733 (consolidated), the district shall receive
27 a payment under this subsection to reimburse the district for
1 interest paid, in an amount determined by the department of
2 treasury.
3 (3) From the allocation in subsection (1), there is
4 allocated an amount not to exceed $17,200.00 for 2004-2005 to the
5 department of treasury to refund to a township the amount of
6 state education tax the township is required by court order to
7 repay to a business that has been declared bankrupt.
8 Sec. 31a. (1) From
the state school aid fund money
9 appropriated in section
11, there is allocated for 2003-2004
10 2004-2005 an amount not to exceed $314,200,000.00 for payments to
11 eligible districts and eligible public school academies under
12 this section. Subject to subsection (12), the amount of the
13 additional allowance under this section shall be based on the
14 number of actual pupils in membership in the district or public
15 school academy who met the income eligibility criteria for free
16 breakfast, lunch, or milk in the immediately preceding state
17 fiscal year, as determined under the Richard B. Russell national
18 school lunch act, chapter
281, 60 Stat. 230, 42 U.S.C. USC
19 1751 to 1753, 1755 to
1761, 1762a, 1765 to 1766a, 1769, 1769b to
20 1769c, and 1769f to 1769h, and reported to the department by
21 October 31 of the immediately preceding fiscal year and adjusted
22 not later than December 31 of the immediately preceding fiscal
23 year. However, for a public school academy that began operations
24 as a public school academy after the pupil membership count day
25 of the immediately preceding school year, the basis for the
26 additional allowance under this section shall be the number of
27 actual pupils in membership in the public school academy who met
1 the income eligibility criteria for free breakfast, lunch, or
2 milk in the current state fiscal year, as determined under the
3 Richard B. Russell national school lunch act.
4 (2) To be eligible to receive funding under this section,
5 other than funding under subsection (6), a district or public
6 school academy that has not been previously determined to be
7 eligible shall apply to the department, in a form and manner
8 prescribed by the department, and a district or public school
9 academy must meet all of the following:
10 (a) The sum of the district's or public school academy's
11 combined state and local revenue per membership pupil in the
12 current state fiscal year, as calculated under section 20, plus
13 the amount of the district's per pupil allocation under section
14 20j(2), is less than or equal to $6,500.00 adjusted by the dollar
15 amount of the difference between the basic foundation allowance
16 under section 20 for the current state fiscal year and $5,000.00,
17 minus $200.00.
18 (b) The district or public school academy agrees to use the
19 funding only for purposes allowed under this section and to
20 comply with the program and accountability requirements under
21 this section.
22 (3) Except as otherwise provided in this subsection, an
23 eligible district or eligible public school academy shall receive
24 under this section for each membership pupil in the district or
25 public school academy who met the income eligibility criteria for
26 free breakfast, lunch, or milk, as determined under the Richard
27 B. Russell national school lunch act and as reported to the
1 department by October 31 of the immediately preceding fiscal year
2 and adjusted not later than December 31 of the immediately
3 preceding fiscal year, an amount per pupil equal to 11.5% of the
4 sum of the district's foundation allowance or public school
5 academy's per pupil amount calculated under section 20, plus the
6 amount of the district's per pupil allocation under section
7 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of
8 the difference between the basic foundation allowance under
9 section 20 for the current state fiscal year and $5,000.00, minus
10 $200.00, or of the public school academy's per membership pupil
11 amount calculated under section 20 for the current state fiscal
12 year. A public school academy that began operations as a public
13 school academy after the pupil membership count day of the
14 immediately preceding school year shall receive under this
15 section for each membership pupil in the public school academy
16 who met the income eligibility criteria for free breakfast,
17 lunch, or milk, as determined under the Richard B. Russell
18 national school lunch act and as reported to the department by
19 October 31 of the current fiscal year and adjusted not later than
20 December 31 of the current fiscal year, an amount per pupil equal
21 to 11.5% of the public school academy's per membership pupil
22 amount calculated under section 20 for the current state fiscal
23 year.
24 (4) Except as otherwise provided in this section, a district
25 or public school academy receiving funding under this section
26 shall use that money only to provide instructional programs and
27 direct noninstructional services, including, but not limited to,
1 medical or counseling services, for at-risk pupils; for school
2 health clinics; and for the purposes of subsection (5) or (6). A
3 district or public school academy shall not use any of that money
4 for administrative costs or to supplant another program or other
5 funds, except for funds allocated to the district or public
6 school academy under this section in the immediately preceding
7 year and already being used by the district or public school
8 academy for at-risk pupils. The instruction or direct
9 noninstructional services provided under this section may be
10 conducted before or after regular school hours or by adding extra
11 school days to the school year and may include, but are not
12 limited to, tutorial services, early childhood programs to serve
13 children age 0 to 5, and reading programs as described in former
14 section 32f as in effect for 2001-2002. A tutorial method may be
15 conducted with paraprofessionals working under the supervision of
16 a certificated teacher. The ratio of pupils to paraprofessionals
17 shall be between 10:1 and 15:1. Only 1 certificated teacher is
18 required to supervise instruction using a tutorial method. As
19 used in this subsection, "to supplant another program" means to
20 take the place of a previously existing instructional program or
21 direct noninstructional services funded from a funding source
22 other than funding under this section.
23 (5) Except as otherwise provided in subsection (11), a
24 district or public school academy that receives funds under this
25 section and that operates a school breakfast program under
26 section 1272a of the revised school code, MCL 380.1272a, shall
27 use from the funds received under this section an amount, not to
Senate Bill 1069 (H-1) as amended June 9, 2004
1 exceed $10.00 per pupil for whom the district or public school
2 academy receives funds under this section, necessary to operate
3 the school breakfast program.
4 (6) From the funds allocated under subsection (1), there is
5 allocated beginning
with 2003-2004 for 2004-2005 an amount not
6 to exceed $3,743,000.00 to support teen health centers. These
7 grants shall be awarded for 3 consecutive years beginning with
8 2003-2004 in a form and manner approved jointly by the department
9 and the department of community health. Each grant recipient
10 shall remain in compliance with the terms of the grant award or
11 shall forfeit the grant award for the duration of the 3-year
12 period after the noncompliance. [Beginning in 2004-2005, to continue to receive funding for a teen health center under this section a grant recipient shall ensure that the teen health center has an advisory committee and that at least one-third of the members of the advisory committee are parents or legal guardians of school-aged children. A teen health center program shall recognize the role of a child's parents or legal guardian in the physical and emotional well-being of the child.] If any funds allocated under
13 this subsection are not used for the purposes of this subsection
14 for the fiscal year in which they are allocated, those unused
15 funds shall be used that fiscal year to avoid or minimize any
16 proration that would otherwise be required under subsection (12)
17 for that fiscal year.
18 (7) Each district or public school academy receiving funds
19 under this section shall submit to the department by July 15 of
20 each fiscal year a report, not to exceed 10 pages, on the usage
21 by the district or public school academy of funds under this
22 section, which report shall include at least a brief description
23 of each program conducted by the district or public school
24 academy using funds under this section, the amount of funds under
25 this section allocated to each of those programs, the number of
26 at-risk pupils eligible for free or reduced price school lunch
27 who were served by each of those programs, and the total number
1 of at-risk pupils served by each of those programs. If a
2 district or public school academy does not comply with this
3 subsection, the department shall withhold an amount equal to the
4 August payment due under this section until the district or
5 public school academy complies with this subsection. If the
6 district or public school academy does not comply with this
7 subsection by the end of the state fiscal year, the withheld
8 funds shall be forfeited to the school aid fund.
9 (8) In order to receive funds under this section, a district
10 or public school academy shall allow access for the department or
11 the department's designee to audit all records related to the
12 program for which it receives those funds. The district or
13 public school academy shall reimburse the state for all
14 disallowances found in the audit.
15 (9) Subject to subsections (5), (6), and (11), any district
16 may use up to 100% of the funds it receives under this section to
17 reduce the ratio of pupils to teachers in grades K-6, or any
18 combination of those grades, in school buildings in which the
19 percentage of pupils described in subsection (1) exceeds the
20 district's aggregate percentage of those pupils. Subject to
21 subsections (5), (6), and (11), if a district obtains a waiver
22 from the department, the district may use up to 100% of the funds
23 it receives under this section to reduce the ratio of pupils to
24 teachers in grades K-6, or any combination of those grades, in
25 school buildings in which the percentage of pupils described in
26 subsection (1) is at least 60% of the district's aggregate
27 percentage of those pupils and at least 30% of the total number
1 of pupils enrolled in the school building. To obtain a waiver, a
2 district must apply to the department and demonstrate to the
3 satisfaction of the department that the class size reductions
4 would be in the best interests of the district's at-risk pupils.
5 (10) A district or public school academy may use funds
6 received under this section for adult high school completion,
7 general education educational
development (G.E.D.) test
8 preparation, adult English as a second language, or adult basic
9 education programs described in section 107.
10 (11) For an individual school or schools operated by a
11 district or public school academy receiving funds under this
12 section that have been determined by the department to meet the
13 adequate yearly progress standards of the federal no child left
14 behind act of 2001,
Public Law 107-110, 115 Stat. 1425, in both
15 mathematics and English language arts at all applicable grade
16 levels for all applicable subgroups, the district or public
17 school academy may submit to the department an application for
18 flexibility in using the funds received under this section that
19 are attributable to the pupils in the school or schools. The
20 application shall identify the affected school or schools and the
21 affected funds and shall contain a plan for using the funds for
22 specific purposes identified by the district that are designed to
23 benefit at-risk pupils in the school, but that may be different
24 from the purposes otherwise allowable under this section. The
25 department shall approve the application if the department
26 determines that the purposes identified in the plan are
27 reasonably designed to benefit at-risk pupils in the school. If
1 the department does not act to approve or disapprove an
2 application within 30 days after it is submitted to the
3 department, the application is considered to be approved. If an
4 application for flexibility in using the funds is approved, the
5 district may use the funds identified in the application for any
6 purpose identified in the plan.
7 (12) If necessary, and before any proration required under
8 section 11, the department shall prorate payments under this
9 section by reducing the amount of the per pupil payment under
10 this section by a dollar amount calculated by determining the
11 amount by which the amount necessary to fully fund the
12 requirements of this section exceeds the maximum amount allocated
13 under this section and then dividing that amount by the total
14 statewide number of pupils who met the income eligibility
15 criteria for free breakfast, lunch, or milk in the immediately
16 preceding fiscal year, as described in subsection (1).
17 (13) If a district is formed by consolidation after June 1,
18 1995, and if 1 or more of the original districts was not eligible
19 before the consolidation for an additional allowance under this
20 section, the amount of the additional allowance under this
21 section for the consolidated district shall be based on the
22 number of pupils described in subsection (1) enrolled in the
23 consolidated district who reside in the territory of an original
24 district that was eligible before the consolidation for an
25 additional allowance under this section.
26 (14) A district or public school academy that does not meet
27 the eligibility requirement under subsection (2)(a) is eligible
1 for funding under this section if at least 1/4 of the pupils in
2 membership in the district or public school academy met the
3 income eligibility criteria for free breakfast, lunch, or milk in
4 the immediately preceding state fiscal year, as determined and
5 reported as described in subsection (1), and at least 4,500 of
6 the pupils in membership in the district or public school academy
7 met the income eligibility criteria for free breakfast, lunch, or
8 milk in the immediately preceding state fiscal year, as
9 determined and reported as described in subsection (1). A
10 district or public school academy that is eligible for funding
11 under this section because the district meets the requirements of
12 this subsection shall receive under this section for each
13 membership pupil in the district or public school academy who met
14 the income eligibility criteria for free breakfast, lunch, or
15 milk in the immediately preceding fiscal year, as determined and
16 reported as described in subsection (1), an amount per pupil
17 equal to 11.5% of the sum of the district's foundation allowance
18 or public school academy's per pupil allocation under section 20,
19 plus the amount of the district's per pupil allocation under
20 section 20j(2), not to exceed $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 minus $200.00.
24 (15) As used in this section, "at-risk pupil" means a pupil
25 for whom the district has documentation that the pupil meets at
26 least 2 of the following criteria: is a victim of child abuse or
27 neglect; is below grade level in English language and
1 communication skills or mathematics; is a pregnant teenager or
2 teenage parent; is eligible for a federal free or reduced-price
3 lunch subsidy; has atypical behavior or attendance patterns; or
4 has a family history of school failure, incarceration, or
5 substance abuse. For pupils for whom the results of at least the
6 applicable Michigan education assessment program (MEAP) test have
7 been received, at-risk pupil also includes a pupil who does not
8 meet the other criteria under this subsection but who did not
9 achieve at least a score
of moderate level 2 on the most recent
10 MEAP reading English
language arts, mathematics, or science
11 test for which results
for the pupil have been received. , did
12 not achieve at least a
score of moderate on the most recent MEAP
13 mathematics test for
which results for the pupil have been
14 received, or did not
achieve at least a score of novice on the
15 most recent MEAP
science test for which results for the pupil
16 have been received. For pupils in grades K-3, at-risk pupil also
17 includes a pupil who is at risk of not meeting the district's
18 core academic curricular
objectives in English language ,
19 communication skills, arts or mathematics.
20 Sec. 31d. (1) From the appropriations in section 11, there
21 is allocated an amount
not to exceed $18,315,000.00 for
22 2002-2003 and an
amount not to exceed $21,300,000.00 for
23 2003-2004 $21,095,000.00 for 2004-2005 for the purpose
of making
24 payments to districts and other eligible entities under this
25 section.
26 (2) The amounts allocated from state sources under this
27 section shall be used to pay the amount necessary to reimburse
1 districts for 6.0127% of the necessary costs of the state
2 mandated portion of the school lunch programs provided by those
3 districts. The amount due to each district under this section
4 shall be computed by the department using the methods of
5 calculation adopted by the Michigan supreme court in the
6 consolidated cases known as Durant v State of Michigan, Michigan
7 supreme court docket no. 104458-104492.
8 (3) The payments made under this section include all state
9 payments made to districts so that each district receives at
10 least 6.0127% of the necessary costs of operating the state
11 mandated portion of the school lunch program in a fiscal year.
12 (4) The payments made under this section to districts and
13 other eligible entities that are not required under section 1272a
14 of the revised school code, MCL 380.1272a, to provide a school
</