SB-1069, As Passed Senate, March 31, 2004
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, 39a, 41, 41a, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 74,
81, 94a, 98, 98b, 99, 101, 104a, 107, 147, 152, 158b, 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, 388.1639a, 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, 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 and 152 as amended by 2000 PA 297, section 26 as
amended by 1997 PA 93, section 32f as amended by 2002 PA 521,
section 94a as amended by 2003 PA 180, and section 158b as added
by 1994 PA 283, and by adding section 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.
15 (5)
"Department", except in sections 67, 68, section 107,
1 and 108, means the department of education.
2 (6) "District" means a local school district established
3 under the revised school code, a local act school district, or,
4 except in sections 6(4),
6(6), 13, 20, 22a, 23, 31a, 32f, 105,
5 and 105c, a public school academy. Except in sections 6(4),
6 6(6), 13, 20, 22a, 105, and 105c, district also includes a
7 university school.
8 (7) "District of residence", except as otherwise provided in
9 this subsection, means the district in which a pupil's custodial
10 parent or parents or legal guardian resides. For a pupil
11 described in section 24b, the pupil's district of residence is
12 the district in which the pupil enrolls under that section. For
13 a pupil described in section 6(4)(d), the pupil's district of
14 residence shall be considered to be the district or intermediate
15 district in which the pupil is counted in membership under that
16 section. For a pupil under court jurisdiction who is placed
17 outside the district in which the pupil's custodial parent or
18 parents or legal guardian resides, the pupil's district of
19 residence shall be considered to be the educating district or
20 educating intermediate district.
21 (8) "District superintendent" means the superintendent of a
22 district, the chief administrator of a public school academy, or
23 the chief administrator of a university school.
24 Sec. 4. (1) "Elementary pupil" means a pupil in membership
25 in grades K to 8 in a district not maintaining classes above the
26 eighth grade or in grades K to 6 in a district maintaining
27 classes above the eighth grade.
1 (2) "Extended school year" means an educational program
2 conducted by a district in which pupils must be enrolled but not
3 necessarily in attendance on the pupil membership count day in an
4 extended year program. The mandatory days of student instruction
5 and prescribed clock hours shall be completed by each pupil not
6 more than 365 calendar days after the pupil's first day of
7 classes for the school year prescribed. The department shall
8 prescribe pupil, personnel, and other reporting requirements for
9 the educational program.
10 (3) "Fiscal year" means the state fiscal year which commences
11 October 1 and continues through September 30.
12 (4) "General educational development testing preparation
13 program" means a program that has high school level courses in
14 writing skills English language arts, social studies,
science,
15 reading skills, and mathematics and that prepares a person to
16 successfully complete the general educational development (GED)
17 test.
18 (5) "High school pupil" means a pupil in membership in grades
19 7 to 12, except in a district not maintaining grades above the
20 eighth grade.
21 Sec. 6. (1) "Center program" means a program operated by a
22 district or intermediate district for special education pupils
23 from several districts in programs for the autistically impaired,
24 trainable mentally impaired, severely mentally impaired, severely
25 multiply impaired, hearing impaired, physically and otherwise
26 health impaired, and visually impaired. Programs for emotionally
27 impaired pupils housed in buildings that do not serve regular
1 education pupils also qualify. Unless otherwise approved by the
2 department, a center program either shall serve all constituent
3 districts within an intermediate district or shall serve several
4 districts with less than 50% of the pupils residing in the
5 operating district. In addition, special education center
6 program pupils placed part-time in noncenter programs to comply
7 with the least restrictive environment provisions of section 612
8 of part B of the individuals with disabilities education act,
9 title VI of Public
Law 91-230, 20 U.S.C. USC
1412, may be
10 considered center program pupils for pupil accounting purposes
11 for the time scheduled in either a center program or a noncenter
12 program.
13 (2) "District and high school graduation rate" means the
14 annual completion and pupil dropout rate that is calculated by
15 the center pursuant to nationally recognized standards.
16 (3) "District and high school graduation report" means a
17 report of the number of pupils, excluding migrant and adult, in
18 the district for the immediately preceding school year, adjusted
19 for those pupils who have transferred into or out of the district
20 or transferred to alternative programs, who leave high school
21 with a diploma or other credential of equal status.
22 (4) "Membership", except as otherwise provided in this act,
23 means for a district, public school academy, university school,
24 or intermediate district the sum of the product of .8 times the
25 number of full-time equated pupils in grades K to 12 actually
26 enrolled and in regular daily attendance on the pupil membership
27 count day for the current school year, plus the product of .2
1 times the final audited count from the supplemental count day for
2 the immediately preceding school year. All pupil counts used in
3 this subsection are as determined by the department and
4 calculated by adding the number of pupils registered for
5 attendance plus pupils received by transfer and minus pupils lost
6 as defined by rules promulgated by the superintendent, and as
7 corrected by a subsequent department audit. The amount of the
8 foundation allowance for a pupil in membership is determined
9 under section 20. In making the calculation of membership, all
10 of the following, as applicable, apply to determining the
11 membership of a district, public school academy, university
12 school, or intermediate district:
13 (a) Except as otherwise provided in this subsection, and
14 pursuant to subsection (6), a pupil shall be counted in
15 membership in the pupil's educating district or districts. An
16 individual pupil shall not be counted for more than a total of
17 1.0 full-time equated membership.
18 (b) If a pupil is educated in a district other than the
19 pupil's district of residence, if the pupil is not being educated
20 as part of a cooperative education program, if the pupil's
21 district of residence does not give the educating district its
22 approval to count the pupil in membership in the educating
23 district, and if the pupil is not covered by an exception
24 specified in subsection (6) to the requirement that the educating
25 district must have the approval of the pupil's district of
26 residence to count the pupil in membership, the pupil shall not
27 be counted in membership in any district.
1 (c) A special education pupil educated by the intermediate
2 district shall be counted in membership in the intermediate
3 district.
4 (d) A pupil placed by a court or state agency in an
5 on-grounds program of a juvenile detention facility, a child
6 caring institution, or a mental health institution, or a pupil
7 funded under section 53a, shall be counted in membership in the
8 district or intermediate district approved by the department to
9 operate the program.
10 (e) A pupil enrolled in the Michigan schools for the deaf and
11 blind shall be counted in membership in the pupil's intermediate
12 district of residence.
13 (f) A pupil enrolled in a vocational education program
14 supported by a millage levied over an area larger than a single
15 district or in an area vocational-technical education program
16 established pursuant to section 690 of the revised school code,
17 MCL 380.690, shall be counted only in the pupil's district of
18 residence.
19 (g) A pupil enrolled in a university school shall be counted
20 in membership in the university school.
21 (h) A pupil enrolled in a public school academy shall be
22 counted in membership in the public school academy.
23 (i) For a new district, university school, or public school
24 academy beginning its operation after December 31, 1994,
25 membership for the first 2 full or partial fiscal years of
26 operation shall be determined as follows:
27 (i) If operations begin before the pupil membership count day
1 for the fiscal year, membership is the average number of
2 full-time equated pupils in grades K to 12 actually enrolled and
3 in regular daily attendance on the pupil membership count day for
4 the current school year and on the supplemental count day for the
5 current school year, as determined by the department and
6 calculated by adding the number of pupils registered for
7 attendance on the pupil membership count day plus pupils received
8 by transfer and minus pupils lost as defined by rules promulgated
9 by the superintendent, and as corrected by a 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 (ii) If operations begin after the pupil membership count day
14 for the fiscal year and not later than the supplemental count day
15 for the fiscal year, membership is the final audited count of the
16 number of full-time equated pupils in grades K to 12 actually
17 enrolled and in regular daily attendance on the supplemental
18 count day for the current school year.
19 (j) If a district is the authorizing body for a public school
20 academy, then, in the first school year in which pupils are
21 counted in membership on the pupil membership count day in the
22 public school academy, the determination of the district's
23 membership shall exclude from the district's pupil count for the
24 immediately preceding supplemental count day any pupils who are
25 counted in the public school academy on that first pupil
26 membership count day who were also counted in the district on the
27 immediately preceding supplemental count day.
1 (k) In a district, public school academy, university school,
2 or intermediate district operating an extended school year
3 program approved by the superintendent, a pupil enrolled, but not
4 scheduled to be in regular daily attendance on a pupil membership
5 count day, shall be counted.
6 (l) Pupils to be counted in membership shall be not less than
7 5 years of age on December 1 and less than 20 years of age on
8 September 1 of the school year except a special education pupil
9 who is enrolled and receiving instruction in a special education
10 program or service approved by the department and not having a
11 high school diploma who is less than 26 years of age as of
12 September 1 of the current school year shall be counted in
13 membership.
14 (m) An individual who has obtained a high school diploma
15 shall not be counted in membership. An individual who has
16 obtained a general education development (G.E.D.) certificate
17 shall not be counted in membership. An individual participating
18 in a job training program funded under former section 107a or a
19 jobs program funded under former section 107b, administered by
20 the Michigan
strategic fund or the department of career
21 development labor and economic growth, or participating in
any
22 successor of either of those 2 programs, shall not be counted in
23 membership.
24 (n) If a pupil counted in membership in a public school
25 academy is also educated by a district or intermediate district
26 as part of a cooperative education program, the pupil shall be
27 counted in membership only in the public school academy unless a
1 written agreement signed by all parties designates the party or
2 parties in which the pupil shall be counted in membership, and
3 the instructional time scheduled for the pupil in the district or
4 intermediate district shall be included in the full-time equated
5 membership determination under subdivision (q). However, for
6 pupils receiving instruction in both a public school academy and
7 in a district or intermediate district but not as a part of a
8 cooperative education program, the following apply:
9 (i) If the public school academy provides instruction for at
10 least 1/2 of the class hours specified in subdivision (q), the
11 public school academy shall receive as its prorated share of the
12 full-time equated membership for each of those pupils an amount
13 equal to 1 times the product of the hours of instruction the
14 public school academy provides divided by the number of hours
15 specified in subdivision (q) for full-time equivalency, and the
16 remainder of the full-time membership for each of those pupils
17 shall be allocated to the district or intermediate district
18 providing the remainder of the hours of instruction.
19 (ii) If the public school academy provides instruction for
20 less than 1/2 of the class hours specified in subdivision (q),
21 the district or intermediate district providing the remainder of
22 the hours of instruction shall receive as its prorated share of
23 the full-time equated membership for each of those pupils an
24 amount equal to 1 times the product of the hours of instruction
25 the district or intermediate district provides divided by the
26 number of hours specified in subdivision (q) for full-time
27 equivalency, and the remainder of the full-time membership for
1 each of those pupils shall be allocated to the public school
2 academy.
3 (o) An individual less than 16 years of age as of September 1
4 of the current school year who is being educated in an
5 alternative education program shall not be counted in membership
6 if there are also adult education participants being educated in
7 the same program or classroom.
8 (p) The department shall give a uniform interpretation of
9 full-time and part-time memberships.
10 (q) The number of class hours used to calculate full-time
11 equated memberships shall be consistent with section 101(3). In
12 determining full-time equated memberships for pupils who are
13 enrolled in a postsecondary institution, a pupil shall not be
14 considered to be less than a full-time equated pupil solely
15 because of the effect of his or her postsecondary enrollment,
16 including necessary travel time, on the number of class hours
17 provided by the district to the pupil.
18 (r) Full-time equated memberships for pupils in kindergarten
19 shall be determined by dividing the number of class hours
20 scheduled and provided per year per kindergarten pupil by a
21 number equal to 1/2 the number used for determining full-time
22 equated memberships for pupils in grades 1 to 12.
23 (s) For a district, university school, or public school
24 academy that has pupils enrolled in a grade level that was not
25 offered by the district, university school, or public school
26 academy in the immediately preceding school year, the number of
27 pupils enrolled in that grade level to be counted in membership
1 is the average of the number of those pupils enrolled and in
2 regular daily attendance on the pupil membership count day and
3 the supplemental count day of the current school year, as
4 determined by the department. Membership shall be calculated by
5 adding the number of pupils registered for attendance in that
6 grade level on the pupil membership count day plus pupils
7 received by transfer and minus pupils lost as defined by rules
8 promulgated by the superintendent, and as corrected by subsequent
9 department audit, plus the final audited count from the
10 supplemental count day for the current school year, and dividing
11 that sum by 2.
12 (t) A pupil enrolled in a cooperative education program may
13 be counted in membership in the pupil's district of residence
14 with the written approval of all parties to the cooperative
15 agreement.
16 (u) If, as a result of a disciplinary action, a district
17 determines through the district's alternative or disciplinary
18 education program that the best instructional placement for a
19 pupil is in the pupil's home, if that placement is authorized in
20 writing by the district superintendent and district alternative
21 or disciplinary education supervisor, and if the district
22 provides appropriate instruction as described in this subdivision
23 to the pupil at the pupil's home, the district may count the
24 pupil in membership on a pro rata basis, with the proration based
25 on the number of hours of instruction the district actually
26 provides to the pupil divided by the number of hours specified in
27 subdivision (q) for full-time equivalency. For the purposes of
1 this subdivision, a district shall be considered to be providing
2 appropriate instruction if all of the following are met:
3 (i) The district provides at least 2 nonconsecutive hours of
4 instruction per week to the pupil at the pupil's home under the
5 supervision of a certificated teacher.
6 (ii) The district provides instructional materials,
7 resources, and supplies, except computers, that are comparable to
8 those otherwise provided in the district's alternative education
9 program.
10 (iii) Course content is comparable to that in the district's
11 alternative education program.
12 (iv) Credit earned is awarded to the pupil and placed on the
13 pupil's transcript.
14 (v) A pupil enrolled in an alternative or disciplinary
15 education program described in section 25 shall be counted in
16 membership in the district or public school academy that expelled
17 the pupil.
18 (w) If a pupil was enrolled in a public school academy on the
19 pupil membership count day, if the public school academy's
20 contract with its authorizing body is revoked or the public
21 school academy otherwise ceases to operate, and if the pupil
22 enrolls in a district within 45 days after the pupil membership
23 count day, the department shall adjust the district's pupil count
24 for the pupil membership count day to include the pupil in the
25 count.
26 (x) For a public school academy that has been in operation
27 for at least 2 years and that suspended operations for at least 1
1 semester and is resuming operations, membership is the sum of the
2 product of .8 times the number of full-time equated pupils in
3 grades K to 12 actually enrolled and in regular daily attendance
4 on the first pupil membership count day or supplemental count
5 day, whichever is first, occurring after operations resume, plus
6 the product of .2 times the final audited count from the most
7 recent pupil membership count day or supplemental count day that
8 occurred before suspending operations, as determined by the
9 superintendent.
10 (y) If a district's membership for a particular fiscal year,
11 as otherwise calculated under this subsection, would be less than
12 1,550 pupils and the district has 4.5 or fewer pupils per square
13 mile, as determined by the department, the district's membership
14 shall be considered to be the membership figure calculated under
15 this subdivision. If a district educates and counts in its
16 membership pupils in grades 9 to 12 who reside in a contiguous
17 district that does not operate grades 9 to 12 and if 1 or both of
18 the affected districts request the department to use the
19 determination allowed under this sentence, the department shall
20 include the square mileage of both districts in determining the
21 number of pupils per square mile for each of the districts for
22 the purposes of this subdivision. The membership figure
23 calculated under this subdivision is the greater of the
24 following:
25 (i) The average of the district's membership for the
26 3-fiscal-year period ending with that fiscal year, calculated by
27 adding the district's actual membership for each of those 3
1 fiscal years, as otherwise calculated under this subsection, and
2 dividing the sum of those 3 membership figures by 3.
3 (ii) The district's actual membership for that fiscal year as
4 otherwise calculated under this subsection.
5 (z) If a public school academy that is not in its first or
6 second year of operation closes at the end of a school year and
7 does not reopen for the next school year, the department shall
8 adjust the membership count of the district in which a former
9 pupil of the public school academy enrolls and is in regular
10 daily attendance for the next school year to ensure that the
11 district receives the same amount of membership aid for the pupil
12 as if the pupil were counted in the district on the supplemental
13 count day of the preceding school year.
14 (5) "Public school academy" means a public school academy,
15 urban high school academy, or strict discipline academy operating
16 under the revised school code.
17 (6) "Pupil" means a person in membership in a public school.
18 A district must have the approval of the pupil's district of
19 residence to count the pupil in membership, except approval by
20 the pupil's district of residence shall not be required for any
21 of the following:
22 (a) A nonpublic part-time pupil enrolled in grades 1 to 12 in
23 accordance with section 166b.
24 (b) A pupil receiving 1/2 or less of his or her instruction
25 in a district other than the pupil's district of residence.
26 (c) A pupil enrolled in a public school academy or university
27 school.
1 (d) A pupil enrolled in a district other than the pupil's
2 district of residence under an intermediate district schools of
3 choice pilot program as described in section 91a or former
4 section 91 if the intermediate district and its constituent
5 districts have been exempted from section 105.
6 (e) A pupil enrolled in a district other than the pupil's
7 district of residence but
within the same intermediate district
8 if the educating
district enrolls nonresident pupils if
the
9 pupil was enrolled in accordance with section 105 or 105c.
10 (f) A pupil
enrolled in a district other than the pupil's
11 district of residence
if the pupil has been continuously enrolled
12 in the educating
district since a school year in which the pupil
13 enrolled in the
educating district under section 105 or 105c and
14 in which the educating
district enrolled nonresident pupils in
15 accordance with
section 105 or 105c.
16 (f) (g) A
pupil who has made an official written complaint
17 or whose parent or legal guardian has made an official written
18 complaint to law enforcement officials and to school officials of
19 the pupil's district of residence that the pupil has been the
20 victim of a criminal sexual assault or other serious assault, if
21 the official complaint either indicates that the assault occurred
22 at school or that the assault was committed by 1 or more other
23 pupils enrolled in the school the pupil would otherwise attend in
24 the district of residence or by an employee of the district of
25 residence. A person who intentionally makes a false report of a
26 crime to law enforcement officials for the purposes of this
27 subdivision is subject to section 411a of the Michigan penal
1 code, 1931 PA 328, MCL 750.411a, which provides criminal
2 penalties for that conduct. As used in this subdivision:
3 (i) "At school" means in a classroom, elsewhere on school
4 premises, on a school bus or other school-related vehicle, or at
5 a school-sponsored activity or event whether or not it is held on
6 school premises.
7 (ii) "Serious assault" means an act that constitutes a felony
8 violation of chapter XI of the Michigan penal code, 1931 PA 328,
9 MCL 750.81 to 750.90g, or that constitutes an assault and
10 infliction of serious or aggravated injury under section 81a of
11 the Michigan penal code, 1931 PA 328, MCL 750.81a.
12 (h) A pupil
enrolled in a district located in a contiguous
13 intermediate district,
as described in section 105c, if the
14 educating district
enrolls those nonresident pupils in accordance
15 with section 105c.
16 (g) (i) A
pupil whose district of residence changed after
17 the pupil membership count day and before the supplemental count
18 day and who continues to be enrolled on the supplemental count
19 day as a nonresident in the district in which he or she was
20 enrolled as a resident on the pupil membership count day of the
21 same school year.
22 (h) (j) A
pupil enrolled in an alternative education
23 program operated by a district other than his or her district of
24 residence who meets 1 or more of the following:
25 (i) The pupil has been suspended or expelled from his or her
26 district of residence for any reason, including, but not limited
27 to, a suspension or expulsion under section 1310, 1311, or 1311a
1 of the revised school code, MCL 380.1310, 380.1311, and
2 380.1311a.
3 (ii) The pupil had previously dropped out of school.
4 (iii) The pupil is pregnant or is a parent.
5 (iv) The pupil has been referred to the program by a court.
6 (i) (k) A
pupil enrolled in the Michigan virtual high
7 school, for the pupil's enrollment in the Michigan virtual high
8 school.
9 However, if a district that is not a first class district
10 educates pupils who reside in a first class district and if the
11 primary instructional site for those pupils is located within the
12 boundaries of the first class district, the educating district
13 must have the approval of the first class district to count those
14 pupils in membership. As used in this subsection, "first class
15 district" means a district organized as a school district of the
16 first class under the revised school code.
17 (7) "Pupil membership count day" of a district or
18 intermediate district means:
19 (a) Except as provided in subdivision (b), the fourth
20 Wednesday in September each school year.
21 (b) For a district or intermediate district maintaining
22 school during the entire school year, the following days:
23 (i) Fourth Wednesday in July.
24 (ii) Fourth Wednesday in September.
25 (iii) Second Wednesday in February.
26 (iv) Fourth Wednesday in April.
27 (8) "Pupils in grades K to 12 actually enrolled and in
1 regular daily attendance" means pupils in grades K to 12 in
2 attendance and receiving instruction in all classes for which
3 they are enrolled on the pupil membership count day or the
4 supplemental count day, as applicable. A pupil who is absent
5 from any of the classes in which the pupil is enrolled on the
6 pupil membership count day or supplemental count day and who does
7 not attend each of those classes during the 10 consecutive school
8 days immediately following the pupil membership count day or
9 supplemental count day, except for a pupil who has been excused
10 by the district, shall not be counted as 1.0 full-time equated
11 membership. In addition, a pupil who is excused from attendance
12 on the pupil membership count day or supplemental count day and
13 who fails to attend each of the classes in which the pupil is
14 enrolled within 30 calendar days after the pupil membership count
15 day or supplemental count day shall not be counted as 1.0
16 full-time equated membership. Pupils not counted as 1.0
17 full-time equated membership due to an absence from a class shall
18 be counted as a prorated membership for the classes the pupil
19 attended. For purposes of this subsection, "class" means a
20 period of time in 1 day when pupils and a certificated teacher or
21 legally qualified substitute teacher are together and instruction
22 is taking place.
23 (9) "Rule" means a rule promulgated pursuant to the
24 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
25 24.328.
26 (10) "The revised school code" means 1976 PA 451, MCL 380.1
27 to 380.1852.
1 (11) "School fiscal year" means a fiscal year that commences
2 July 1 and continues through June 30.
3 (12) "State board" means the state board of education.
4 (13) "Superintendent", unless the context clearly refers to a
5 district or intermediate district superintendent, means the
6 superintendent of public instruction described in section 3 of
7 article VIII of the state constitution of 1963.
8 (14) "Supplemental count day" means the day on which the
9 supplemental pupil count is conducted under section 6a.
10 (15) "Tuition pupil" means a pupil of school age attending
11 school in a district other than the pupil's district of residence
12 for whom tuition may be charged. Tuition pupil does not include
13 a pupil who is a special education pupil or a pupil described in
14 subsection (6)(d) to (k)
(i). A pupil's district of residence
15 shall not require a high school tuition pupil, as provided under
16 section 111, to attend another school district after the pupil
17 has been assigned to a school district.
18 (16) "State school aid fund" means the state school aid fund
19 established in section 11 of article IX of the state constitution
20 of 1963.
21 (17) "Taxable value" means the taxable value of property as
22 determined under section 27a of the general property tax act,
23 1893 PA 206, MCL 211.27a.
24 (18) "Textbook" means a book that is selected and approved by
25 the governing board of a district and that contains a
26 presentation of principles of a subject, or that is a literary
27 work relevant to the study of a subject required for the use of
1 classroom pupils, or another type of course material that forms
2 the basis of classroom instruction.
3 (19) "Total state aid" or "total state school aid" means the
4 total combined amount of all funds due to a district,
5 intermediate district, or other entity under all of the
6 provisions of this act.
7 (20) "University school" means an instructional program
8 operated by a public university under section 23 that meets the
9 requirements of section 23.
10 Sec. 11. (1) For the fiscal year ending September 30,
11 2004 2005, there is appropriated for the public
schools of this
12 state and certain other state purposes relating to education the
13 sum of $10,962,387,100.00
$11,033,722,200.00 from the state
14 school aid fund established by section 11 of article IX of the
15 state constitution of
1963 and the sum of $327,700,000.00
16 $138,600,000.00 from the
general fund. For the fiscal year
17 ending September 30, 2003, from loan repayments deposited to the
18 general fund pursuant
to section 4 of 1961 PA 112, MCL 388.984,
19 on the settlement
date, as determined under section 9c of 1961 PA
20 108, MCL 388.959c,
there is appropriated from the general fund to
21 the state school aid
fund the amount determined by the state
22 treasurer to equal the
difference between the outstanding amount
23 of general obligation
debt incurred pursuant to 1961 PA 112, MCL
24 388.981 to 388.985,
and the outstanding amount of loans under
25 1961 PA 108, MCL
388.951 to 388.963, as reduced in accordance
26 with section 9c(1) of
1961 PA 108, MCL 388.959c. In addition,
27 for the fiscal year
ending September 30, 2003, there is
1 appropriated from the
general fund to the state school aid fund
2 an amount equal to the
amount of all school bond loan fund
3 repayments received by
the state treasurer from June 1,
2003
4 through December 21, 2003, determined by the state treasurer not
5 to have been paid from
proceeds of bonds of the school district
6 and representing the
difference between the outstanding amount of
7 general obligation
debt incurred by this state under 1961 PA 112,
8 MCL 388.981 to
388.985, and the outstanding amount of loans under
9 1961 PA 108, MCL
388.951 to 388.963, at the time of repayment.
10 Funds appropriated to
the state school aid fund from the general
11 fund from loan
repayments received as described in this
12 subsection shall be
expended within 90 days of deposit within the
13 state school aid fund.
In addition, available federal funds
are
14 appropriated for each
of those fiscal years the fiscal year
15 ending September 30, 2005.
16 (2) The appropriations under this section shall be allocated
17 as provided in this act. Money appropriated under this section
18 from the general fund shall be expended to fund the purposes of
19 this act before the expenditure of money appropriated under this
20 section from the state school aid fund. If the maximum amount
21 appropriated under this section from the state school aid fund
22 for a fiscal year exceeds the amount necessary to fully fund
23 allocations under this act from the state school aid fund, that
24 excess amount shall not be expended in that state fiscal year and
25 shall not lapse to the general fund, but instead shall be
26 deposited into the school aid stabilization fund created in
27 section 11a.
1 (3) If the maximum amount appropriated under this section
2 from the state school aid fund and the school aid stabilization
3 fund for a fiscal year exceeds the amount available for
4 expenditure from the state school aid fund for that fiscal year,
5 payments under sections 11f, 11g, 11j, 22a, 26a, 31d, 51a(2),
6 and 51a(12), 51c, 53a, and 56 shall be made
in full. In
7 addition, for districts beginning operations after 1994-95 that
8 qualify for payments under section 22b, payments under section
9 22b shall be made so that the qualifying districts receive the
10 lesser of an amount equal to the 1994-95 foundation allowance of
11 the district in which the district beginning operations after
12 1994-95 is located or $5,500.00. The amount of the payment to be
13 made under section 22b for these qualifying districts shall be as
14 calculated under section 22a, with the balance of the payment
15 under section 22b being subject to the proration otherwise
16 provided under this
subsection and subsection (4). For any If
17 proration is necessary after 2002-2003, state payments under each
18 of the other sections of this act from all state funding sources
19 shall be prorated in the manner prescribed in subsection (4) as
20 necessary to reflect the amount available for expenditure from
21 the state school aid fund for the affected fiscal year. However,
22 if the department of treasury determines that proration will be
23 required under this subsection, the department of treasury shall
24 notify the state budget director, and the state budget director
25 shall notify the legislature at least 30 calendar days or 6
26 legislative session days, whichever is more, before the
27 department reduces any payments under this act because of the
1 proration. During the 30 calendar day or 6 legislative session
2 day period after that notification by the state budget director,
3 the department shall not reduce any payments under this act
4 because of proration under this subsection. The legislature may
5 prevent proration from occurring by, within the 30 calendar day
6 or 6 legislative session day period after that notification by
7 the state budget director, enacting legislation appropriating
8 additional funds from the general fund, countercyclical budget
9 and economic stabilization fund, state school aid fund balance,
10 or another source to fund the amount of the projected shortfall.
11 (4) For any If
proration is necessary, after 2002-2003,
12 the department shall calculate the proration in district and
13 intermediate district payments that is required under subsection
14 (3) as follows:
15 (a) The department shall calculate the percentage of total
16 state school aid allocated under this act for the affected fiscal
17 year for each of the following:
18 (i) Districts.
19 (ii) Intermediate districts.
20 (iii) Entities other than districts or intermediate
21 districts.
22 (b) The department shall recover a percentage of the
23 proration amount required under subsection (3) that is equal to
24 the percentage calculated under subdivision (a)(i) for districts
25 by reducing payments to districts. This reduction shall be made
26 by calculating an equal dollar amount per pupil as necessary to
27 recover this percentage of the proration amount and reducing each
1 district's total state school aid from state sources, other than
2 payments under sections 11f, 11g, 22a, 26a, 31d, 51a(2), 51a(12),
3 51c, 53a, and 56, by that amount.
4 (c) The department shall recover a percentage of the
5 proration amount required under subsection (3) that is equal to
6 the percentage calculated under subdivision (a)(ii) for
7 intermediate districts by reducing payments to intermediate
8 districts. This reduction shall be made by reducing the payments
9 to each intermediate district, other than payments under sections
10 11f, 11g, 22a, 31d, 26a,
51a(2), 51a(12), 51c, 53a, and 56,
11 on an equal percentage basis.
12 (d) The department shall recover a percentage of the
13 proration amount required under subsection (3) that is equal to
14 the percentage calculated under subdivision (a)(iii) for entities
15 other than districts and intermediate districts by reducing
16 payments to these entities. This reduction shall be made by
17 reducing the payments to each of these entities, other than
18 payments under section 11j, on an equal percentage basis.
19 (5) Except for the allocation under section 26a, any general
20 fund allocations under this act that are not expended by the end
21 of the state fiscal year are transferred to the state school aid
22 fund.
23 Sec. 11b. From the general fund money appropriated in
24 section 11, there is
allocated for 2003-2004 2004-2005 the sum
25 of $67,600,000.00 $5,000,000.00
for deposit into the school aid
26 stabilization fund created in section 11a.
27 Sec. 11f. (1) From the appropriations under section 11,
1 there is allocated for the purposes of this section an amount not
2 to exceed $32,000,000.00 for the fiscal year ending September 30,
3 2004 2005 and for each succeeding fiscal year through
the
4 fiscal year ending September 30, 2008. Payments under this
5 section will cease after September 30, 2008. These allocations
6 are for paying the amounts described in subsection (4) to
7 districts and intermediate districts, other than those receiving
8 a lump sum payment under subsection (2), that were not plaintiffs
9 in the consolidated cases known as Durant v State of Michigan,
10 Michigan supreme court docket no. 104458-104492 and that, on or
11 before March 2, 1998, submitted to the state treasurer a board
12 resolution waiving any right or interest the district or
13 intermediate district has or may have in any claim or litigation
14 based on or arising out of any claim or potential claim through
15 September 30, 1997 that is or was similar to the claims asserted
16 by the plaintiffs in the consolidated cases known as Durant v
17 State of Michigan. The waiver resolution shall be in form and
18 substance as required under subsection (7). The state treasurer
19 is authorized to accept such a waiver resolution on behalf of
20 this state. The amounts described in this subsection represent
21 offers of settlement and compromise of any claim or claims that
22 were or could have been asserted by these districts and
23 intermediate districts, as described in this subsection.
24 (2) In addition to any other money appropriated under this
25 act, there was appropriated from the state school aid fund an
26 amount not to exceed $1,700,000.00 for the fiscal year ending
27 September 30, 1999. This appropriation was for paying the
1 amounts described in this subsection to districts and
2 intermediate districts that were not plaintiffs in the
3 consolidated cases known as Durant v State of Michigan; that, on
4 or before March 2, 1998, submitted to the state treasurer a board
5 resolution waiving any right or interest the district or
6 intermediate district had or may have had in any claim or
7 litigation based on or arising out of any claim or potential
8 claim through September 30, 1997 that is or was similar to the
9 claims asserted by the plaintiffs in the consolidated cases known
10 as Durant v State of Michigan; and for which the total amount
11 listed in section 11h and paid under this section was less than
12 $75,000.00. For a district or intermediate district qualifying
13 for a payment under this subsection, the entire amount listed for
14 the district or intermediate district in section 11h was paid in
15 a lump sum on November 15, 1998 or on the next business day
16 following that date. The amounts paid under this subsection
17 represent offers of settlement and compromise of any claim or
18 claims that were or could have been asserted by these districts
19 and intermediate districts, as described in this subsection.
20 (3) This section does not create any obligation or liability
21 of this state to any district or intermediate district that does
22 not submit a waiver resolution described in this section. This
23 section, any other provision of this act, and section 353e of the
24 management and budget act, 1984 PA 431, MCL 18.1353e, are not
25 intended to admit liability or waive any defense that is or would
26 be available to this state or its agencies, employees, or agents
27 in any litigation or future litigation with a district or
1 intermediate district.
2 (4) The amount paid each fiscal year to each district or
3 intermediate district under subsection (1) shall be 1/20 of the
4 total amount listed in section 11h for each listed district or
5 intermediate district that qualifies for a payment under
6 subsection (1). The amounts listed in section 11h and paid in
7 part under this subsection and in a lump sum under subsection (2)
8 are offers of settlement and compromise to each of these
9 districts or intermediate districts to resolve, in their
10 entirety, any claim or claims that these districts or
11 intermediate districts may have asserted for violations of
12 section 29 of article IX of the state constitution of 1963
13 through September 30, 1997, which claims are or were similar to
14 the claims asserted by the plaintiffs in the consolidated cases
15 known as Durant v State of Michigan. This section, any other
16 provision of this act, and section 353e of the management and
17 budget act, 1984 PA 431, MCL 18.1353e, shall not be construed to
18 constitute an admission of liability to the districts or
19 intermediate districts listed in section 11h or a waiver of any
20 defense that is or would have been available to the state or its
21 agencies, employees, or agents in any litigation or future
22 litigation with a district or intermediate district.
23 (5) The entire amount of each payment under subsection (1)
24 each fiscal year shall be paid on November 15 of the applicable
25 fiscal year or on the next business day following that date.
26 (6) Funds paid to a district or intermediate district under
27 this section shall be used only for textbooks, electronic
1 instructional material, software, technology, infrastructure or
2 infrastructure improvements, school buses, school security,
3 training for technology, or to pay debt service on voter-approved
4 bonds issued by the district or intermediate district before the
5 effective date of this section. For intermediate districts only,
6 funds paid under this section may also be used for other
7 nonrecurring instructional expenditures including, but not
8 limited to, nonrecurring instructional expenditures for
9 vocational education, or for debt service for acquisition of
10 technology for academic support services. Funds received by an
11 intermediate district under this section may be used for projects
12 conducted for the benefit of its constituent districts at the
13 discretion of the intermediate board. To the extent payments
14 under this section are used by a district or intermediate
15 district to pay debt service on debt payable from millage
16 revenues, and to the extent permitted by law, the district or
17 intermediate district may make a corresponding reduction in the
18 number of mills levied for that debt service.
19 (7) The resolution to be adopted and submitted by a district
20 or intermediate district under this section and section 11g shall
21 read as follows:
22 "Whereas, the board of ____________________ (name of district
23 or intermediate district) desires to settle and compromise, in
24 their entirety, any claim or claims that the district (or
25 intermediate district) has or had for violations of section 29 of
26 article IX of the state constitution of 1963, which claim or
27 claims are or were similar to the claims asserted by the
1 plaintiffs in the consolidated cases known as Durant v State of
2 Michigan, Michigan supreme court docket no. 104458-104492.
3 Whereas, the district (or intermediate district) agrees to
4 settle and compromise these claims for the consideration
5 described in sections 11f and 11g of the state school aid act of
6 1979, 1979 PA 94, MCL 388.1611f and 388.1611g, and in the amount
7 specified for the district (or intermediate district) in
8 section 11h of the state school aid act of 1979, 1979 PA 94,
9 MCL 388.1611h.
10 Whereas, the board of _______________ (name of district or
11 intermediate district) is authorized to adopt this resolution.
12 Now, therefore, be it resolved as follows:
13 1. The board of ____________________ (name of district or
14 intermediate district) waives any right or interest it may have
15 in any claim or potential claim through September 30, 1997
16 relating to the amount of funding the district or intermediate
17 district is, or may have been, entitled to receive under the
18 state school aid act of 1979, 1979 PA 94, MCL 388.1601 to
19 388.1772, or any other source of state funding, by reason of the
20 application of section 29 of article IX of the state constitution
21 of 1963, which claims or potential claims are or were similar to
22 the claims asserted by the plaintiffs in the consolidated cases
23 known as Durant v State of Michigan, Michigan supreme court
24 docket no. 104458-104492.
25 2. The board of ____________________ (name of district or
26 intermediate district) directs its secretary to submit a
27 certified copy of this resolution to the state treasurer no later
1 than 5 p.m. eastern standard time on March 2, 1998, and agrees
2 that it will not take any action to amend or rescind this
3 resolution.
4 3. The board of ____________________ (name of district or
5 intermediate district) expressly agrees and understands that, if
6 it takes any action to amend or rescind this resolution, the
7 state, its agencies, employees, and agents shall have available
8 to them any privilege, immunity, and/or defense that would
9 otherwise have been available had the claims or potential claims
10 been actually litigated in any forum.
11 4. This resolution is contingent on continued payments by
12 the state each fiscal year as determined under sections 11f and
13 11g of the state school aid act of 1979, 1979 PA 94,
14 MCL 388.1611f and 388.1611g. However, this resolution shall be
15 an irrevocable waiver of any claim to amounts actually received
16 by the school district or intermediate school district under
17 sections 11f and 11g of the state school aid act of 1979.".
18 Sec. 11g. (1) From the general fund appropriation in
19 section 11, there is allocated an amount not to exceed
20 $141,000.00 each
fiscal year for the fiscal year ending
21 September 30, 2003, for the fiscal year ending September 30,
22 2004, and for the fiscal year ending September 30, 2005. There
23 is allocated an amount
not to exceed $34,200,000.00
24 $35,000,000.00 for each succeeding fiscal year through the fiscal
25 year ending September 30, 2013. Payments under this section will
26 cease after September 30, 2013. These allocations are for paying
27 the amounts described in subsection (3) to districts and
1 intermediate districts, other than those receiving a lump sum
2 payment under section 11f(2), that were not plaintiffs in the
3 consolidated cases known as Durant v State of Michigan, Michigan
4 supreme court docket no. 104458-104492 and that, on or before
5 March 2, 1998, submitted to the state treasurer a waiver
6 resolution described in section 11f. The amounts paid under this
7 section represent offers of settlement and compromise of any
8 claim or claims that were or could have been asserted by these
9 districts and intermediate districts, as described in this
10 section.
11 (2) This section does not create any obligation or liability
12 of this state to any district or intermediate district that does
13 not submit a waiver resolution described in section 11f. This
14 section, any other provision of this act, and section 353e of the
15 management and budget act, 1984 PA 431, MCL 18.1353e, are not
16 intended to admit liability or waive any defense that is or would
17 be available to this state or its agencies, employees, or agents
18 in any litigation or future litigation with a district or
19 intermediate district regarding these claims or potential
20 claims.
21 (3) The amount paid each fiscal year to each district or
22 intermediate district under this section shall be the sum of the
23 following:
24 (a) 1/30 of the total amount listed in section 11h for the
25 district or intermediate district.
26 (b) If the district or intermediate district borrows money
27 and issues bonds under section 11i, an additional amount in each
1 fiscal year calculated by the department of treasury that, when
2 added to the amount described in subdivision (a), will cause the
3 net present value as of November 15, 1998 of the total of the 15
4 annual payments made to the district or intermediate district
5 under this section, discounted at a rate as determined by the
6 state treasurer, to equal the amount of the bonds issued by that
7 district or intermediate district under section 11i and that will
8 result in the total payments made to all districts and
9 intermediate districts in each fiscal year under this section
10 being no more than the amount appropriated under this section in
11 each fiscal year.
12 (4) The entire amount of each payment under this section each
13 fiscal year shall be paid on May 15 of the applicable fiscal year
14 or on the next business day following that date. If a district
15 or intermediate district borrows money and issues bonds under
16 section 11i, the district or intermediate district shall use
17 funds received under this section to pay debt service on bonds
18 issued under section 11i. If a district or intermediate district
19 does not borrow money and issue bonds under section 11i, the
20 district or intermediate district shall use funds received under
21 this section only for the following purposes, in the following
22 order of priority:
23 (a) First, to pay debt service on voter-approved bonds issued
24 by the district or intermediate district before the effective
25 date of this section.
26 (b) Second, to pay debt service on other limited tax
27 obligations.
1 (c) Third, for deposit into a sinking fund established by the
2 district or intermediate district under the revised school code.
3 (5) To the extent payments under this section are used by a
4 district or intermediate district to pay debt service on debt
5 payable from millage revenues, and to the extent permitted by
6 law, the district or intermediate district may make a
7 corresponding reduction in the number of mills levied for debt
8 service.
9 (6) A district or intermediate district may pledge or assign
10 payments under this section as security for bonds issued under
11 section 11i, but shall not otherwise pledge or assign payments
12 under this section.
13 Sec. 11j. From the appropriation in section 11, there is
14 allocated an amount not
to exceed $28,300,000.00 $41,100,000.00
15 for 2003-2004 2004-2005
for payments to the school loan bond
16 redemption fund in the department of treasury on behalf of
17 districts and intermediate districts.
18 Sec. 13. Except as otherwise provided in this act, the
19 apportionments and limitations of the apportionments made under
20 this act shall be made on the membership and number of teachers
21 and other professionals approved by the superintendent employed
22 as of the pupil membership count day of each year and on the
23 taxable value and the operating millage of each district for the
24 calendar year. In addition, a district maintaining school during
25 the entire year, as provided in section 1561 of the revised
26 school code, MCL
380.1561, shall count memberships and teachers
27 educational personnel pursuant to rules promulgated by the
1 superintendent and shall report to the center as required by
2 state and federal law.
3 Sec. 15. (1) If a district or intermediate district fails
4 to receive its proper apportionment, the department, upon
5 satisfactory proof that the district or intermediate district was
6 entitled justly, shall
apportion the deficiency in the remaining
7 apportionments next apportionment. Subject to subsections
(2)
8 and (3), if a district or intermediate district has received more
9 than its proper apportionment, the department, upon satisfactory
10 proof, shall deduct the
excess in the remaining apportionments
11 next apportionment. Notwithstanding any other provision in this
12 act, state aid overpayments to a district, other than
13 overpayments in payments for special education or special
14 education transportation, may be recovered from any payment made
15 under this act other than a special education or special
16 education transportation payment. State aid overpayments made in
17 special education or special education transportation payments
18 may be recovered from subsequent special education or special
19 education transportation payments.
20 (2) If the result of an audit conducted by or for the
21 department affects the current fiscal year membership, affected
22 payments shall be adjusted in the current fiscal year. A
23 deduction due to an adjustment made as a result of an audit
24 conducted by or for the department, or as a result of information
25 obtained by the department from the district, an intermediate
26 district, the department of treasury, or the office of auditor
27 general, shall be deducted from the district's apportionments
1 within the next fiscal year after the fiscal year in which the
2 adjustment is finalized. At the request of the district and upon
3 the district presenting evidence satisfactory to the department
4 of the hardship, the department may grant up to an additional 4
5 years for the adjustment if the district would otherwise
6 experience a significant hardship.
7 (3) If, because of the receipt of new or updated data, the
8 department determines during a fiscal year that the amount paid
9 to a district or intermediate district under this act for a prior
10 fiscal year was incorrect under the law in effect for that year,
11 the department may make the appropriate deduction or payment in
12 the district's or intermediate district's allocation for the
13 fiscal year in which the determination is made. The deduction or
14 payment shall be calculated according to the law in effect in the
15 fiscal year in which the improper amount was paid.
16 (4) Expenditures made by the department under this act that
17 are caused by the write-off of prior year accruals may be funded
18 by revenue from the write-off of prior year accruals.
19 Sec. 18a. Grant funds awarded and allotted to a district,
20 or intermediate district, or other entity, unless
otherwise
21 specified in this act, shall be expended by the grant recipient
22 before the end of the school fiscal year immediately following
23 the fiscal year in which the funds are received. If a grant
24 recipient does not expend the funds received under this act
25 before the end of the fiscal year in which the funds are
26 received, the grant recipient shall submit a report to the
27 department not later than November 1 after the fiscal year in
1 which the funds are received indicating whether it expects to
2 expend those funds during the fiscal year in which the report is
3 submitted. A recipient of a grant shall return any unexpended
4 grant funds to the department in the manner prescribed by the
5 department not later than September 30 after the fiscal year in
6 which the funds are received.
7 Sec. 19. (1) A district shall comply with any requirements
8 of sections 1204a, 1277, 1278, and 1280 of the revised school
9 code, MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly
10 referred to as "public act 25 of 1990" that are not also required
11 by the no child left
behind act of 2001, Public Law 107-110, 115
12 Stat. 1425, as determined by the department.
13 (2) Each district and intermediate district shall provide to
14 the department, in a form and manner prescribed by the
15 department, information necessary for the development of an
16 annual progress report on the required implementation of sections
17 1204a, 1277, 1278, and 1280 of the revised school code,
18 MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly
19 referred to as "public act 25 of 1990".
20 (3) A district or intermediate district shall comply with all
21 applicable reporting requirements specified in state and federal
22 law. Data provided to the center, in a form and manner
23 prescribed by the center, shall be aggregated and disaggregated
24 as required by state and federal law.
25 (4) Each district shall furnish to the center not later than
26 7 weeks after the pupil membership count day, in a manner
27 prescribed by the center, the information necessary for the
1 preparation of the district and high school graduation report.
2 The center shall calculate an annual graduation and pupil dropout
3 rate for each high school, each district, and this state, in
4 compliance with nationally recognized standards for these
5 calculations. The center shall report all graduation and dropout
6 rates to the senate and house education committees and
7 appropriations committees, the state budget director, and the
8 department not later than June 1 of each year.
9 (5) A district shall furnish to the center, in a manner
10 prescribed by the center, information related to educational
11 personnel as necessary for reporting required by state and
12 federal law.
13 (6) A district shall furnish to the center, in a manner
14 prescribed by the center, information related to safety practices
15 and criminal incidents as necessary for reporting required by
16 state and federal law.
17 (7) (6) If
a district or intermediate district fails to
18 meet the requirements of
subsection (2), (3), (4), or (5), or
19 (6), the department shall withhold 5% of the total funds for
20 which the district or intermediate district qualifies under this
21 act until the district or intermediate district complies with all
22 of those subsections. If the district or intermediate district
23 does not comply with all of those subsections by the end of the
24 fiscal year, the department shall place the amount withheld in an
25 escrow account until the district or intermediate district
26 complies with all of those subsections.
27 (8) (7) If
a school in a district is not accredited under
1 section 1280 of the revised school code, MCL 380.1280, or is not
2 making satisfactory progress toward meeting the standards for
3 that accreditation, the department shall withhold 5% of the total
4 funds for which the district qualifies under this act that are
5 attributable to pupils attending that school. The department
6 shall place the amount withheld from a district under this
7 subsection in an escrow account and shall not release the funds
8 to the district until the district submits to the department a
9 plan for achieving accreditation for each of the district's
10 schools that are not accredited under section 1280 of the revised
11 school code, MCL 380.1280, or are not making satisfactory
12 progress toward meeting the standards for that accreditation.
13 (9) (8) Before
publishing a list of schools or districts
14 determined to have failed to make adequate yearly progress as
15 required by the federal no child left behind act of 2001, Public
16 Law 107-110, 115 Stat. 1425, the department shall allow a school
17 or district to appeal that determination. The department shall
18 consider and act upon the appeal within 30 days after it is
19 submitted and shall not publish the list until after all appeals
20 have been considered and decided.
21 Sec. 20. (1) For 2002-2003
and for 2003-2004 2004-2005,
22 the basic foundation allowance is $6,700.00 per membership
23 pupil.
24 (2) The amount of each district's foundation allowance shall
25 be calculated as provided in this section, using a basic
26 foundation allowance in the amount specified in subsection (1).
27 (3) Except as otherwise provided in this section, the amount
1 of a district's foundation allowance shall be calculated as
2 follows, using in all calculations the total amount of the
3 district's foundation allowance as calculated before any
4 proration:
5 (a) Except as otherwise provided in this subsection, for a
6 district that in the immediately preceding state fiscal year had
7 a foundation allowance in an amount at least equal to the amount
8 of the basic foundation allowance for the immediately preceding
9 state fiscal year, the district shall receive a foundation
10 allowance in an amount equal to the sum of the district's
11 foundation allowance for the immediately preceding state fiscal
12 year plus the dollar amount of the adjustment from the
13 immediately preceding state fiscal year to the current state
14 fiscal year in the basic foundation allowance. However, for
15 2002-2003, the foundation allowance for a district under this
16 subdivision is an amount equal to the sum of the district's
17 foundation allowance for the immediately preceding state fiscal
18 year plus $200.00.
19 (b) For a district that in the 1994-95 state fiscal year had
20 a foundation allowance greater than $6,500.00, the district's
21 foundation allowance is an amount equal to the sum of the
22 district's foundation allowance for the immediately preceding
23 state fiscal year plus the lesser of the increase in the basic
24 foundation allowance for the current state fiscal year, as
25 compared to the immediately preceding state fiscal year, or the
26 product of the district's foundation allowance for the
27 immediately preceding state fiscal year times the percentage
1 increase in the United States consumer price index in the
2 calendar year ending in the immediately preceding fiscal year as
3 reported by the May revenue estimating conference conducted under
4 section 367b of the management and budget act, 1984 PA 431,
5 MCL 18.1367b. For 2002-2003, for a district that in the 1994-95
6 state fiscal year had a foundation allowance greater than
7 $6,500.00, the district's foundation allowance is an amount equal
8 to the sum of the district's foundation allowance for the
9 immediately preceding state fiscal year plus the lesser of
10 $200.00 or the product of the district's foundation allowance for
11 the immediately preceding state fiscal year times the percentage
12 increase in the United States consumer price index in the
13 calendar year ending in the immediately preceding fiscal year as
14 reported by the May revenue estimating conference conducted under
15 section 367b of the management and budget act, 1984 PA 431,
16 MCL 18.1367b.
17 (c) For a district that has a foundation allowance that is
18 not a whole dollar amount, the district's foundation allowance
19 shall be rounded up to the nearest whole dollar.
20 (d) For a district that received a payment under former
21 section 22c for 2001-2002, the district's 2001-2002 foundation
22 allowance shall be considered to have been an amount equal to the
23 sum of the district's actual 2001-2002 foundation allowance as
24 otherwise calculated under this section plus the per pupil amount
25 of the district's equity payment for 2001-2002 under former
26 section 22c.
27 (4) Except as otherwise provided in this subsection, the
1 state portion of a district's foundation allowance is an amount
2 equal to the district's foundation allowance or $6,500.00,
3 whichever is less, minus the difference between the product of
4 the taxable value per membership pupil of all property in the
5 district that is not a principal residence or qualified
6 agricultural property times the lesser of 18 mills or the number
7 of mills of school operating taxes levied by the district in
8 1993-94 and the quotient of the ad valorem property tax revenue
9 of the district captured under 1975 PA 197, MCL 125.1651 to
10 125.1681, the tax increment finance authority act, 1980 PA 450,
11 MCL 125.1801 to 125.1830, the local development financing act,
12 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield
13 redevelopment financing act, 1996 PA 381, MCL 125.2651 to
14 125.2672, divided by the district's membership excluding special
15 education pupils. For a district described in subsection (3)(b),
16 the state portion of the district's foundation allowance is an
17 amount equal to $6,962.00 plus the difference between the
18 district's foundation allowance for the current state fiscal year
19 and the district's foundation allowance for 1998-99, minus the
20 difference between the product of the taxable value per
21 membership pupil of all property in the district that is not a
22 principal residence or qualified agricultural property times the
23 lesser of 18 mills or the number of mills of school operating
24 taxes levied by the district in 1993-94 and the quotient of the
25 ad valorem property tax revenue of the district captured under
26 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance
27 authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local
1 development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,
2 or the brownfield redevelopment financing act, 1996 PA 381,
3 MCL 125.2651 to 125.2672, divided by the district's membership
4 excluding special education pupils. For a district that has a
5 millage reduction required under section 31 of article IX of the
6 state constitution of 1963, the state portion of the district's
7 foundation allowance shall be calculated as if that reduction did
8 not occur. The $6,500.00 amount prescribed in this subsection
9 shall be adjusted each year by an amount equal to the dollar
10 amount of the difference between the basic foundation allowance
11 for the current state fiscal year and $5,000.00, minus $200.00.
12 (5) The allocation calculated under this section for a pupil
13 shall be based on the foundation allowance of the pupil's
14 district of residence. However, for a pupil enrolled in a
15 district other than the pupil's district of residence, if the
16 foundation allowance of the pupil's district of residence has
17 been adjusted pursuant to subsection (19), the allocation
18 calculated under this section shall not include the adjustment
19 described in subsection (18). For a pupil enrolled pursuant to
20 section 105 or 105c in a district other than the pupil's district
21 of residence, the allocation calculated under this section shall
22 be based on the lesser of the foundation allowance of the pupil's
23 district of residence or the foundation allowance of the
24 educating district. For a pupil in membership in a K-5, K-6, or
25 K-8 district who is enrolled in another district in a grade not
26 offered by the pupil's district of residence, the allocation
27 calculated under this section shall be based on the foundation
1 allowance of the educating district if the educating district's
2 foundation allowance is greater than the foundation allowance of
3 the pupil's district of residence. The calculation under this
4 subsection shall take into account a district's per pupil
5 allocation under section 20j(2).
6 (6) Subject to subsection (7) and section 22b(3) and except
7 as otherwise provided in this subsection, for pupils in
8 membership, other than special education pupils, in a public
9 school academy or a university school, the allocation calculated
10 under this section is an amount per membership pupil other than
11 special education pupils in the public school academy or
12 university school equal to the sum of the local school operating
13 revenue per membership pupil other than special education pupils
14 for the district in which the public school academy or university
15 school is located and the state portion of that district's
16 foundation allowance, or the sum of the basic foundation
17 allowance under subsection (1) plus $300.00, whichever is less.
18 Notwithstanding section 101(2), for a public school academy that
19 begins operations in
2002-2003 or 2003-2004, as applicable,
20 after the pupil membership count day, the amount per membership
21 pupil calculated under this subsection shall be adjusted by
22 multiplying that amount per membership pupil by the number of
23 hours of pupil instruction provided by the public school academy
24 after it begins operations, as determined by the department,
25 divided by the minimum number of hours of pupil instruction
26 required under section 101(3). The result of this calculation
27 shall not exceed the amount per membership pupil otherwise
1 calculated under this subsection.
2 (7) If more than 25% of the pupils residing within a district
3 are in membership in 1 or more public school academies located in
4 the district, then the amount per membership pupil calculated
5 under this section for a public school academy located in the
6 district shall be reduced by an amount equal to the difference
7 between the product of the taxable value per membership pupil of
8 all property in the district that is not a principal residence or
9 qualified agricultural property times the lesser of 18 mills or
10 the number of mills of school operating taxes levied by the
11 district in 1993-94 and the quotient of the ad valorem property
12 tax revenue of the district captured under 1975 PA 197,
13 MCL 125.1651 to 125.1681, the tax increment finance authority
14 act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development
15 financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the
16 brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651
17 to 125.2672, divided by the district's membership excluding
18 special education pupils, in the school fiscal year ending in the
19 current state fiscal year, calculated as if the resident pupils
20 in membership in 1 or more public school academies located in the
21 district were in membership in the district. In order to receive
22 state school aid under this act, a district described in this
23 subsection shall pay to the authorizing body that is the fiscal
24 agent for a public school academy located in the district for
25 forwarding to the public school academy an amount equal to that
26 local school operating revenue per membership pupil for each
27 resident pupil in membership other than special education pupils
1 in the public school academy, as determined by the department.
2 (8) If a district does not receive an amount calculated under
3 subsection (9); if the number of mills the district may levy on a
4 principal residence and qualified agricultural property under
5 section 1211(1) of the revised school code, MCL 380.1211, is 0.5
6 mills or less; and if the district elects not to levy those
7 mills, the district instead shall receive a separate supplemental
8 amount calculated under this subsection in an amount equal to the
9 amount the district would have received had it levied those
10 mills, as determined by the department of treasury. A district
11 shall not receive a separate supplemental amount calculated under
12 this subsection for a fiscal year unless in the calendar year
13 ending in the fiscal year the district levies 18 mills or the
14 number of mills of school operating taxes levied by the district
15 in 1993, whichever is less, on property that is not a principal
16 residence or qualified agricultural property.
17 (9) For a district that had combined state and local revenue
18 per membership pupil in the 1993-94 state fiscal year of more
19 than $6,500.00 and that had fewer than 350 pupils in membership,
20 if the district elects not to reduce the number of mills from
21 which a principal residence and qualified agricultural property
22 are exempt and not to levy school operating taxes on a principal
23 residence and qualified agricultural property as provided in
24 section 1211(1) of the revised school code, MCL 380.1211, and not
25 to levy school operating taxes on all property as provided in
26 section 1211(2) of the revised school code, MCL 380.1211, there
27 is calculated under this subsection for 1994-95 and each
1 succeeding fiscal year a separate supplemental amount in an
2 amount equal to the amount the district would have received per
3 membership pupil had it levied school operating taxes on a
4 principal residence and qualified agricultural property at the
5 rate authorized for the district under section 1211(1) of the
6 revised school code, MCL 380.1211, and levied school operating
7 taxes on all property at the rate authorized for the district
8 under section 1211(2) of the revised school code, MCL 380.1211,
9 as determined by the department of treasury. If in the calendar
10 year ending in the fiscal year a district does not levy 18 mills
11 or the number of mills of school operating taxes levied by the
12 district in 1993, whichever is less, on property that is not a
13 principal residence or qualified agricultural property, the
14 amount calculated under this subsection will be reduced by the
15 same percentage as the millage actually levied compares to the 18
16 mills or the number of mills levied in 1993, whichever is less.
17 (10) Subject to subsection (4), for a district that is formed
18 or reconfigured after June 1, 2002 by consolidation of 2 or more
19 districts or by annexation, the resulting district's foundation
20 allowance under this section beginning after the effective date
21 of the consolidation or annexation shall be the average of the
22 foundation allowances of each of the original or affected
23 districts, calculated as provided in this section, weighted as to
24 the percentage of pupils in total membership in the resulting
25 district who reside in the geographic area of each of the
26 original or affected districts.
27 (11) Each fraction used in making calculations under this
1 section shall be rounded to the fourth decimal place and the
2 dollar amount of an increase in the basic foundation allowance
3 shall be rounded to the nearest whole dollar.
4 (12) State payments related to payment of the foundation
5 allowance for a special education pupil are not calculated under
6 this section but are instead calculated under section 51a.
7 (13) To assist the legislature in determining the basic
8 foundation allowance for the subsequent state fiscal year, each
9 revenue estimating conference conducted under section 367b of the
10 management and budget act, 1984 PA 431, MCL 18.1367b, shall
11 calculate a pupil membership factor, a revenue adjustment factor,
12 and an index as follows:
13 (a) The pupil membership factor shall be computed by dividing
14 the estimated membership in the school year ending in the current
15 state fiscal year, excluding intermediate district membership, by
16 the estimated membership for the school year ending in the
17 subsequent state fiscal year, excluding intermediate district
18 membership. If a consensus membership factor is not determined
19 at the revenue estimating conference, the principals of the
20 revenue estimating conference shall report their estimates to the
21 house and senate subcommittees responsible for school aid
22 appropriations not later than 7 days after the conclusion of the
23 revenue conference.
24 (b) The revenue adjustment factor shall be computed by
25 dividing the sum of the estimated total state school aid fund
26 revenue for the subsequent state fiscal year plus the estimated
27 total state school aid fund revenue for the current state fiscal
1 year, adjusted for any change in the rate or base of a tax the
2 proceeds of which are deposited in that fund and excluding money
3 transferred into that fund from the countercyclical budget and
4 economic stabilization fund under section 353e of the management
5 and budget act, 1984 PA 431, MCL 18.1353e, by the sum of the
6 estimated total school aid fund revenue for the current state
7 fiscal year plus the estimated total state school aid fund
8 revenue for the immediately preceding state fiscal year, adjusted
9 for any change in the rate or base of a tax the proceeds of which
10 are deposited in that fund. If a consensus revenue factor is not
11 determined at the revenue estimating conference, the principals
12 of the revenue estimating conference shall report their estimates
13 to the house and senate subcommittees responsible for school aid
14 appropriations not later than 7 days after the conclusion of the
15 revenue conference.
16 (c) The index shall be calculated by multiplying the pupil
17 membership factor by the revenue adjustment factor. However, for
18 2003-2004 only 2004-2005, the index shall be 1.00. If a
19 consensus index is not determined at the revenue estimating
20 conference, the principals of the revenue estimating conference
21 shall report their estimates to the house and senate
22 subcommittees responsible for school aid appropriations not later
23 than 7 days after the conclusion of the revenue conference.
24 (14) If the principals at the revenue estimating conference
25 reach a consensus on the index described in subsection (13)(c),
26 the basic foundation allowance for the subsequent state fiscal
27 year shall be at least the amount of that consensus index
1 multiplied by the basic foundation allowance specified in
2 subsection (1).
3 (15) If at the January revenue estimating conference it is
4 estimated that pupil membership, excluding intermediate district
5 membership, for the subsequent state fiscal year will be greater
6 than 101% of the pupil membership, excluding intermediate
7 district membership, for the current state fiscal year, then it
8 is the intent of the legislature that the executive budget
9 proposal for the school aid budget for the subsequent state
10 fiscal year include a general fund/general purpose allocation
11 sufficient to support the membership in excess of 101% of the
12 current year pupil membership.
13 (16) For a district that had combined state and local revenue
14 per membership pupil in the 1993-94 state fiscal year of more
15 than $6,500.00, that had fewer than 7 pupils in membership in the
16 1993-94 state fiscal year, that has at least 1 child educated in
17 the district in the current state fiscal year, and that levies
18 the number of mills of school operating taxes authorized for the
19 district under section 1211 of the revised school code,
20 MCL 380.1211, a minimum amount of combined state and local
21 revenue shall be calculated for the district as provided under
22 this subsection. The minimum amount of combined state and local
23 revenue for 1999-2000 shall be $67,000.00 plus the district's
24 additional expenses to educate pupils in grades 9 to 12 educated
25 in other districts as determined and allowed by the department.
26 The minimum amount of combined state and local revenue under this
27 subsection, before adding the additional expenses, shall increase
1 each fiscal year by the same percentage increase as the
2 percentage increase in the basic foundation allowance from the
3 immediately preceding fiscal year to the current fiscal year.
4 The state portion of the minimum amount of combined state and
5 local revenue under this subsection shall be calculated by
6 subtracting from the minimum amount of combined state and local
7 revenue under this subsection the sum of the district's local
8 school operating revenue and an amount equal to the product of
9 the sum of the state portion of the district's foundation
10 allowance plus the amount calculated under section 20j times the
11 district's membership. As used in this subsection, "additional
12 expenses" means the district's expenses for tuition or fees, not
13 to exceed $6,500.00 as adjusted each year by an amount equal to
14 the dollar amount of the difference between the basic foundation
15 allowance for the current state fiscal year and $5,000.00, minus
16 $200.00, plus a room and board stipend not to exceed $10.00 per
17 school day for each pupil in grades 9 to 12 educated in another
18 district, as approved by the department.
19 (17) For a district in which 7.75 mills levied in 1992 for
20 school operating purposes in the 1992-93 school year were not
21 renewed in 1993 for school operating purposes in the 1993-94
22 school year, the district's combined state and local revenue per
23 membership pupil shall be recalculated as if that millage
24 reduction did not occur and the district's foundation allowance
25 shall be calculated as if its 1994-95 foundation allowance had
26 been calculated using that recalculated 1993-94 combined state
27 and local revenue per membership pupil as a base. A district is
1 not entitled to any retroactive payments for fiscal years before
2 2000-2001 due to this subsection.
3 (18) For a district in which an industrial facilities
4 exemption certificate that abated taxes on property with a state
5 equalized valuation greater than the total state equalized
6 valuation of the district at the time the certificate was issued
7 or $700,000,000.00, whichever is greater, was issued under 1974
8 PA 198, MCL 207.551 to 207.572, before the calculation of the
9 district's 1994-95 foundation allowance, the district's
10 foundation allowance for 2002-2003 is an amount equal to the sum
11 of the district's foundation allowance for 2002-2003, as
12 otherwise calculated under this section, plus $250.00.
13 (19) For a district that received a grant under former
14 section 32e for
2001-2002, the district's foundation allowance
15 for 2002-2003 shall be
adjusted to be an amount equal to the sum
16 of the district's
foundation allowance, as otherwise calculated
17 under this section,
plus the quotient of the amount of the grant
18 award to the district
for 2001-2002 under former section 32e
19 divided by the
district's membership for 2001-2002, and the
20 district's foundation
allowance for 2003-2004 2002-2003 and
21 each succeeding fiscal year shall be adjusted to be an amount
22 equal to the sum of the district's foundation allowance, as
23 otherwise calculated under this section, plus the quotient of
24 100% of the amount of the grant award to the district for
25 2001-2002 under former section 32e divided by the number of
26 pupils in the district's membership for 2001-2002 who were
27 residents of and enrolled in the district. Except as otherwise
1 provided in this subsection, a district qualifying for a
2 foundation allowance adjustment under this subsection shall use
3 the funds resulting from this adjustment for at least 1 of grades
4 K to 3 for purposes allowable under former section 32e as in
5 effect for 2001-2002. For an individual school or schools
6 operated by a district qualifying for a foundation allowance
7 under this subsection that have been determined by the department
8 to meet the adequate yearly progress standards of the federal no
9 child left behind act of 2001, Public Law 107-110, 115
10 Stat. 1425, in both mathematics and English language arts at all
11 applicable grade levels for all applicable subgroups, the
12 district may submit to the department an application for
13 flexibility in using the funds resulting from this adjustment
14 that are attributable to the pupils in the school or schools.
15 The application shall identify the affected school or schools and
16 the affected funds and shall contain a plan for using the funds
17 for specific purposes identified by the district that are
18 designed to reduce class size, but that may be different from the
19 purposes otherwise allowable under this subsection. The
20 department shall approve the application if the department
21 determines that the purposes identified in the plan are
22 reasonably designed to reduce class size. If the department does
23 not act to approve or disapprove an application within 30 days
24 after it is submitted to the department, the application is
25 considered to be approved. If an application for flexibility in
26 using the funds is approved, the district may use the funds
27 identified in the application for any purpose identified in the
1 plan.
2 (20) For a district that is a qualifying school district with
3 a school reform board in place under part 5a of the revised
4 school code, MCL 380.371 to 380.376, the district's foundation
5 allowance for 2002-2003 shall be adjusted to be an amount equal
6 to the sum of the district's foundation allowance, as otherwise
7 calculated under this section, plus the quotient of
8 $15,000,000.00 divided by the district's membership for
9 2002-2003. If a district ceases to meet the requirements of this
10 subsection, the department shall adjust the district's foundation
11 allowance in effect at that time based on a 2002-2003 foundation
12 allowance for the district that does not include the 2002-2003
13 adjustment under this subsection. This subsection only applies
14 for 2002-2003 and 2003-2004. Beginning in 2004-2005, the
15 foundation allowance of a district that received an adjustment
16 under this subsection for 2002-2003 and 2003-2004 shall be
17 calculated as if those adjustments did not occur.
18 (21) Payments to districts, university schools, or public
19 school academies shall not be made under this section. Rather,
20 the calculations under this section shall be used to determine
21 the amount of state payments under section 22b.
22 (22) If an amendment to section 2 of article VIII of the
23 state constitution of 1963 allowing state aid to some or all
24 nonpublic schools is approved by the voters of this state, each
25 foundation allowance or per pupil payment calculation under this
26 section may be reduced.
27 (23) As used in this section:
1 (a) "Combined state and local revenue" means the aggregate of
2 the district's state school aid received by or paid on behalf of
3 the district under this section and the district's local school
4 operating revenue.
5 (b) "Combined state and local revenue per membership pupil"
6 means the district's combined state and local revenue divided by
7 the district's membership excluding special education pupils.
8 (c) "Current state fiscal year" means the state fiscal year
9 for which a particular calculation is made.
10 (d) "Immediately preceding state fiscal year" means the state
11 fiscal year immediately preceding the current state fiscal year.
12 (e) "Local school operating revenue" means school operating
13 taxes levied under section 1211 of the revised school code,
14 MCL 380.1211.
15 (f) "Local school operating revenue per membership pupil"
16 means a district's local school operating revenue divided by the
17 district's membership excluding special education pupils.
18 (g) "Membership" means the definition of that term under
19 section 6 as in effect for the particular fiscal year for which a
20 particular calculation is made.
21 (h) "Principal residence" and "qualified agricultural
22 property" mean those terms as defined in section 7dd of the
23 general property tax act, 1893 PA 206, MCL 211.7dd.
24 (i) "School operating purposes" means the purposes included
25 in the operation costs of the district as prescribed in
26 sections 7 and 18.
27 (j) "School operating taxes" means local ad valorem property
1 taxes levied under section 1211 of the revised school code,
2 MCL 380.1211, and retained for school operating purposes.
3 (k) "Taxable value per membership pupil" means taxable value,
4 as certified by the department of treasury, for the calendar year
5 ending in the current state fiscal year divided by the district's
6 membership excluding special education pupils for the school year
7 ending in the current state fiscal year.
8 Sec. 21b. (1) Subject to subsections (2) and (3), a
9 district shall use funds
received under section 20 or, beginning
10 in 2000-2001, under section 22a or 22b to support the attendance
11 of a district pupil at an eligible postsecondary institution
12 under the postsecondary enrollment options act, 1996 PA 160,
13 MCL 388.511 to 388.524, or under the career and technical
14 preparation act, 2000 PA 258, MCL 388.1901 to 388.1913.
15 (2) To the extent required under subsection (3), a district
16 shall pay tuition and mandatory course fees, material fees, and
17 registration fees required by an eligible postsecondary
18 institution for enrollment in an eligible course. A district
19 also shall pay any late fees charged by an eligible postsecondary
20 institution due to the district's failure to make a required
21 payment according to the timetable prescribed by the
22 postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to
23 388.524, or the career and technical preparation act, 2000 PA
24 258, MCL 388.1901 to 388.1913. A district is not required to pay
25 transportation costs, parking costs, or activity fees.
26 (3) A district shall pay to the eligible postsecondary
27 institution on behalf of an eligible student an amount equal to
1 the lesser of the amount of the eligible charges described in
2 subsection (2) or the prorated percentage of the state portion of
3 the foundation allowance paid or calculated, as applicable, on
4 behalf of that eligible student under section 20, with the
5 proration based on the proportion of the school year that the
6 eligible student attends the postsecondary institution. A
7 district may pay more money to an eligible postsecondary
8 institution on behalf of an eligible student than required under
9 this section and the postsecondary enrollment options act, 1996
10 PA 160, MCL 388.511 to 388.524, or the career and technical
11 preparation act, 2000 PA 258, MCL 388.1901 to 388.1913, and may
12 use local school operating revenue for that purpose. An eligible
13 student is responsible for payment of the remainder of the costs
14 associated with his or her postsecondary enrollment that exceed
15 the amount the district is required to pay under this section and
16 the postsecondary enrollment options act, 1996 PA 160,
17 MCL 388.511 to 388.524, or the career and technical preparation
18 act, 2000 PA 258, MCL 388.1901 to 388.1913, and that are not paid
19 by the district. As used in this subsection, "local school
20 operating revenue" means that term as defined in section 20.
21 (4) As used in this section, "eligible course", "eligible
22 student", and "eligible postsecondary institution" mean those
23 terms as defined in section 3 of the postsecondary enrollment
24 options act, 1996 PA 160, MCL 388.511 to 388.524, or in section 3
25 of the career and technical preparation act, 2000 PA 258, MCL
26 388.1903, as applicable.
27 Sec. 22a. (1) From the appropriation in section 11, there
1 is allocated an amount
not to exceed $6,816,000,000.00
2 $6,765,300,000.00 for 2003-2004 and an amount not to exceed
3 $6,693,000,000.00 for 2004-2005 for payments to districts,
4 qualifying university schools, and qualifying public school
5 academies to guarantee each district, qualifying university
6 school, and qualifying public school academy an amount equal to
7 its 1994-95 total state and local per pupil revenue for school
8 operating purposes under section 11 of article IX of the state
9 constitution of 1963. Pursuant to section 11 of article IX of
10 the state constitution of 1963, this guarantee does not apply to
11 a district in a year in which the district levies a millage rate
12 for school district operating purposes less than it levied in
13 1994. However, subsection (2) applies to calculating the
14 payments under this section. Funds allocated under this section
15 that are not expended in the state fiscal year for which they
16 were allocated, as determined by the department, may be used to
17 supplement the allocations under sections 22b and 51c in order to
18 fully fund those calculated allocations for the same fiscal
19 year.
20 (2) To ensure that a district receives an amount equal to the
21 district's 1994-95 total state and local per pupil revenue for
22 school operating purposes, there is allocated to each district a
23 state portion of the district's 1994-95 foundation allowance in
24 an amount calculated as follows:
25 (a) Except as otherwise provided in this subsection, the
26 state portion of a district's 1994-95 foundation allowance is an
27 amount equal to the district's 1994-95 foundation allowance or
1 $6,500.00, whichever is less, minus the difference between the
2 product of the taxable value per membership pupil of all property
3 in the district that is not a homestead or qualified agricultural
4 property times the lesser of 18 mills or the number of mills of
5 school operating taxes levied by the district in 1993-94 and the
6 quotient of the ad valorem property tax revenue of the district
7 captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax
8 increment finance authority act, 1980 PA 450, MCL 125.1801 to
9 125.1830, the local development financing act, 1986 PA 281,
10 MCL 125.2151 to 125.2174, or the brownfield redevelopment
11 financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by
12 the district's membership. For a district that has a millage
13 reduction required under section 31 of article IX of the state
14 constitution of 1963, the state portion of the district's
15 foundation allowance shall be calculated as if that reduction did
16 not occur.
17 (b) For a district that had a 1994-95 foundation allowance
18 greater than $6,500.00, the state payment under this subsection
19 shall be the sum of the amount calculated under subdivision (a)
20 plus the amount calculated under this subdivision. The amount
21 calculated under this subdivision shall be equal to the
22 difference between the district's 1994-95 foundation allowance
23 minus $6,500.00 and the current year hold harmless school
24 operating taxes per pupil. If the result of the calculation
25 under subdivision (a) is negative, the negative amount shall be
26 an offset against any state payment calculated under this
27 subdivision. If the result of a calculation under this
1 subdivision is negative, there shall not be a state payment or a
2 deduction under this subdivision. The taxable values per
3 membership pupil used in the calculations under this subdivision
4 are as adjusted by ad valorem property tax revenue captured under
5 1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance
6 authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local
7 development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,
8 or the brownfield redevelopment financing act, 1996 PA 381,
9 MCL 125.2651 to 125.2672, divided by the district's membership.
10 (3) For Beginning
in 2003-2004, for pupils in membership in
11 a qualifying public school academy or qualifying university
12 school, there is
allocated under this section for 2003-2004 to
13 the authorizing body that is the fiscal agent for the qualifying
14 public school academy for forwarding to the qualifying public
15 school academy, or to the board of the public university
16 operating the qualifying university school, an amount equal to
17 the 1994-95 per pupil payment to the qualifying public school
18 academy or qualifying university school under section 20.
19 (4) A district, qualifying university school, or qualifying
20 public school academy may use funds allocated under this section
21 in conjunction with any federal funds for which the district,
22 qualifying university school, or qualifying public school academy
23 otherwise would be eligible.
24 (5) For a district that is formed or reconfigured after
25 June 1, 2000 by consolidation of 2 or more districts or by
26 annexation, the resulting district's 1994-95 foundation allowance
27 under this section beginning after the effective date of the
1 consolidation or annexation shall be the average of the 1994-95
2 foundation allowances of each of the original or affected
3 districts, calculated as provided in this section, weighted as to
4 the percentage of pupils in total membership in the resulting
5 district in the state fiscal year in which the consolidation
6 takes place who reside in the geographic area of each of the
7 original districts. If an affected district's 1994-95 foundation
8 allowance is less than the 1994-95 basic foundation allowance,
9 the amount of that district's 1994-95 foundation allowance shall
10 be considered for the purpose of calculations under this
11 subsection to be equal to the amount of the 1994-95 basic
12 foundation allowance.
13 (6) As used in this section:
14 (a) "1994-95 foundation allowance" means a district's 1994-95
15 foundation allowance calculated and certified by the department
16 of treasury or the superintendent under former section 20a as
17 enacted in 1993 PA 336 and as amended by 1994 PA 283.
18 (b) "Current state fiscal year" means the state fiscal year
19 for which a particular calculation is made.
20 (c) "Current year hold harmless school operating taxes per
21 pupil" means the per pupil revenue generated by multiplying a
22 district's 1994-95 hold harmless millage by the district's
23 current year taxable value per membership pupil.
24 (d) "Hold harmless millage" means, for a district with a
25 1994-95 foundation allowance greater than $6,500.00, the number
26 of mills by which the exemption from the levy of school operating
27 taxes on a homestead and qualified agricultural property could be
1 reduced as provided in section 1211(1) of the revised school
2 code, MCL 380.1211, and the number of mills of school operating
3 taxes that could be levied on all property as provided in section
4 1211(2) of the revised school code, MCL 380.1211, as certified by
5 the department of treasury for the 1994 tax year.
6 (e) "Homestead" means that term as defined in section 1211 of
7 the revised school code, MCL 380.1211.
8 (f) "Membership" means the definition of that term under
9 section 6 as in effect for the particular fiscal year for which a
10 particular calculation is made.
11 (g) "Qualified agricultural property" means that term as
12 defined in section 1211 of the revised school code,
13 MCL 380.1211.
14 (h) "Qualifying public school academy" means a public school
15 academy that was in operation in the 1994-95 school year and is
16 in operation in the current state fiscal year.
17 (i) "Qualifying university school" means a university school
18 that was in operation in the 1994-95 school year and is in
19 operation in the current fiscal year.
20 (j) "School operating taxes" means local ad valorem property
21 taxes levied under section 1211 of the revised school code,
22 MCL 380.1211, and retained for school operating purposes.
23 (k) "Taxable value per membership pupil" means each of the
24 following divided by the district's membership:
25 (i) For the number of mills by which the exemption from the
26 levy of school operating taxes on a homestead and qualified
27 agricultural property may be reduced as provided in section
1 1211(1) of the revised school code, MCL 380.1211, the taxable
2 value of homestead and qualified agricultural property for the
3 calendar year ending in the current state fiscal year.
4 (ii) For the number of mills of school operating taxes that
5 may be levied on all property as provided in section 1211(2) of
6 the revised school code, MCL 380.1211, the taxable value of all
7 property for the calendar year ending in the current state fiscal
8 year.
9 Sec. 22b. (1) From the appropriation in section 11, there
10 is allocated an amount
not to exceed $2,881,000,000.00 for
11 2003-2004 $2,905,000,000.00 for 2004-2005 for
discretionary
12 nonmandated payments to districts under this section. Funds
13 allocated under this section that are not expended in the state
14 fiscal year for which they were allocated, as determined by the
15 department, may be used to supplement the allocations under
16 sections 22a and 51c in order to fully fund those calculated
17 allocations for the same fiscal year.
18 (2) Subject to subsection (3) and section 11, the allocation
19 to a district under this section shall be an amount equal to the
20 sum of the amounts calculated under sections 20, 20j, 51a(2),
21 51a(3), and 51a(12), minus the sum of the allocations to the
22 district under sections 22a and 51c.
23 (3) In order to receive an allocation under this section,
24 each district shall administer in each grade level that it
25 operates in grades 1 to 5 a standardized assessment approved by
26 the department of grade-appropriate basic educational skills. A
27 district may use the Michigan literacy progress profile to
1 satisfy this requirement for grades 1 to 3. Also, if the revised
2 school code is amended to require annual assessments at
3 additional grade levels, in order to receive an allocation under
4 this section each district shall comply with that requirement.
5 (4) From the allocation in subsection (1), the department
6 shall expend funds to
pay for necessary costs associated with
7 resolving matters
pending in federal court impacting payments to
8 districts, including,
but not limited to, expert witness fees.
9 Beginning in
2001-2002, from the allocation in subsection (1),
10 the department shall
also pay up to $1,000,000.00 in
litigation
11 costs incurred by this state associated with lawsuits filed by 1
12 or more districts or intermediate districts against this state.
13 If the allocation under this section is insufficient to fully
14 fund all payments required under this section, the payments under
15 this subsection shall be made in full before any proration of
16 remaining payments under this section.
17 (5) It is the intent of the legislature that all
18 constitutional obligations of this state have been fully funded
19 under sections 22a, 31d, 51a, and 51c. If a claim is made by an
20 entity receiving funds under this act that challenges the
21 legislative determination of the adequacy of this funding or
22 alleges that there exists an unfunded constitutional requirement,
23 the state budget director may escrow or allocate from the
24 discretionary funds for nonmandated payments under this section
25 the amount as may be necessary to satisfy the claim before making
26 any payments to districts under subsection (2). If funds are
27 escrowed, the escrowed funds are a work project appropriation and
1 the funds are carried forward into the following fiscal year.
2 The purpose of the work project is to provide for any payments
3 that may be awarded to districts as a result of litigation. The
4 work project shall be completed upon resolution of the
5 litigation.
6 (6) If the local claims review board or a court of competent
7 jurisdiction makes a final determination that this state is in
8 violation of section 29 of article IX of the state constitution
9 of 1963 regarding state payments to districts, the state budget
10 director shall use work project funds under subsection (5) or
11 allocate from the discretionary funds for nonmandated payments
12 under this section the amount as may be necessary to satisfy the
13 amount owed to districts before making any payments to districts
14 under subsection (2).
15 (7) If a claim is made in court that challenges the
16 legislative determination of the adequacy of funding for this
17 state's constitutional obligations or alleges that there exists
18 an unfunded constitutional requirement, any interested party may
19 seek an expedited review of the claim by the local claims review
20 board. If the claim exceeds $10,000,000.00, this state may
21 remove the action to the court of appeals, and the court of
22 appeals shall have and shall exercise jurisdiction over the
23 claim.
24 (8) If payments resulting from a final determination by the
25 local claims review board or a court of competent jurisdiction
26 that there has been a violation of section 29 of article IX of
27 the state constitution of 1963 exceed the amount allocated for
1 discretionary nonmandated payments under this section, the
2 legislature shall provide for adequate funding for this state's
3 constitutional obligations at its next legislative session.
4 (9) If a lawsuit challenging payments made to districts
5 related to costs reimbursed by federal title XIX medicaid funds
6 is filed against this state during 2001-2002, 2002-2003, or
7 2003-2004, 50% of the amount allocated in subsection (1) not
8 previously paid out for 2002-2003, 2003-2004, and each succeeding
9 fiscal year is a work project appropriation and the funds are
10 carried forward into the following fiscal year. The purpose of
11 the work project is to provide for any payments that may be
12 awarded to districts as a result of the litigation. The work
13 project shall be completed upon resolution of the litigation. In
14 addition, this state reserves the right to terminate future
15 federal title XIX medicaid reimbursement payments to districts if
16 the amount or allocation of reimbursed funds is challenged in the
17 lawsuit. As used in this subsection, "title XIX" means title XIX
18 of the social security
act, chapter 531, 49 Stat. 620, 42
19 U.S.C. USC 1396 to 1396r-6 and 1396r-8 to 1396v.
20 Sec. 24. (1) Subject to subsection (2), from the
21 appropriation in section
11, there is allocated each fiscal year
22 for 2002-2003, and for
2003-2004 for 2004-2005 to
the educating
23 district or intermediate district an amount equal to 100% of the
24 added cost each fiscal year for educating all pupils assigned by
25 a court or the family independence agency to reside in or to
26 attend a juvenile detention facility or child caring institution
27 licensed by the family
independence agency or the department of
1 consumer and industry
services and approved by the
department to
2 provide an on-grounds education program. The total amount to be
3 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
5 2004-2005. For the purposes of this section, "added cost" shall
6 be computed by deducting all other revenue received under this
7 act for pupils described in this section from total costs, as
8 approved by the department, in whole or in part, for educating
9 those pupils in the on-grounds education program or in a program
10 approved by the department that is located on property adjacent
11 to a juvenile detention facility or child caring institution.
12 Costs reimbursed by federal funds are not included. For
13 2003-2004 only a particular fiscal year, for an on-grounds
14 education program or a program located on property adjacent to a
15 juvenile detention facility or child caring institution that was
16 not in existence at the time the allocations under this section
17 were approved, the department shall give approval for only that
18 portion of the educating district's or intermediate district's
19 total costs that will not prevent the allocated amounts under
20 this section from first being applied to 100% of the added cost
21 of the programs that were in existence at the time the
22 preliminary allocations under this section were approved for that
23 fiscal year.
24 (2) A district or intermediate district educating pupils
25 described in this section at a residential child caring
26 institution may operate, and receive funding under this section
27 for, a department-approved on-grounds educational program for
1 those pupils that is longer than 181 days, but not longer than
2 233 days, if the child caring institution was licensed as a child
3 caring institution and offered in 1991-92 an on-grounds
4 educational program that was longer than 181 days but not longer
5 than 233 days and that was operated by a district or intermediate
6 district.
7 (3) Special education pupils funded under section 53a shall
8 not be funded under this section.
9 (4) The
department shall appoint a committee to study and
10 make recommendations
concerning issues related to the education
11 of pupils under this
section, including, but not limited to,
12 pupil counts, cost
controls, and the number and type of eligible
13 programs under this
section. The committee may include, but is
14 not limited to,
appointees from 1 or more adjudicated youth
15 educators
associations, the house fiscal agency, the senate
16 fiscal agency, the
department of management and budget, the
17 family independence
agency, the department of corrections, the
18 court system, and the
department. Not later than May
15, 2004,
19 the committee shall
submit its recommendations to the house and
20 senate appropriations
subcommittees responsible for this act and
21 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. From the general fund appropriation in section
4 11, there is allocated an
amount not to exceed $29,960,000.00
5 for 2003-2004 $36,200,000.00 for 2004-2005 to reimburse
6 districts, intermediate districts, and the state school aid fund
7 pursuant to section 12 of the Michigan renaissance zone act, 1996
8 PA 376, MCL 125.2692, for
taxes levied in 2003 2004 or for
9 payments to districts as reimbursement for interest paid as a
10 result of property tax refunds. This reimbursement shall be
11 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 Sec. 31a. (1) From
the state school aid fund money
20 appropriated appropriation in section 11, there is
allocated for
21 2003-2004 2004-2005 an amount not to exceed $314,200,000.00
22 $304,300,000.00 for payments to eligible districts and eligible
23 public school academies under this section. Subject to
24 subsection (12), the amount of the additional allowance under
25 this section shall be based on the number of actual pupils in
26 membership in the district or public school academy who met the
27 income eligibility criteria for free breakfast, lunch, or milk in
1 the immediately preceding state fiscal year, as determined under
2 the Richard B. Russell
national school lunch act, chapter 281,
3 60 Stat. 230, 42 U.S.C. USC 1751 to 1753, 1755
to 1761,
4 1762a, 1765 to 1766a,
1769, 1769b to 1769c, and 1769f to 1769h,
5 and reported to the department by October 31 of the immediately
6 preceding fiscal year and adjusted not later than December 31 of
7 the immediately preceding fiscal year. However, for a public
8 school academy that began operations as a public school academy
9 after the pupil membership count day of the immediately preceding
10 school year, the basis for the additional allowance under this
11 section shall be the number of actual pupils in membership in the
12 public school academy who met the income eligibility criteria for
13 free breakfast, lunch, or milk in the current state fiscal year,
14 as determined under the Richard B. Russell national school lunch
15 act.
16 (2) To be eligible to receive funding under this section,
17 other than funding under subsection (6), a district or public
18 school academy that has not been previously determined to be
19 eligible shall apply to the department, in a form and manner
20 prescribed by the department, and a district or public school
21 academy must meet all of the following:
22 (a) The sum of the district's or public school academy's
23 combined state and local revenue per membership pupil in the
24 current state fiscal year, as calculated under section 20, plus
25 the amount of the district's per pupil allocation under section
26 20j(2), is less than or equal to $6,500.00 adjusted by the dollar
27 amount of the difference between the basic foundation allowance
1 under section 20 for the current state fiscal year and $5,000.00,
2 minus $200.00.
3 (b) The district or public school academy agrees to use the
4 funding only for purposes allowed under this section and to
5 comply with the program and accountability requirements under
6 this section.
7 (3) Except as otherwise provided in this subsection, an
8 eligible district or eligible public school academy shall receive
9 under this section for each membership pupil in the district or
10 public school academy who met the income eligibility criteria for
11 free breakfast, lunch, or milk, as determined under the Richard
12 B. Russell national school lunch act and as reported to the
13 department by October 31 of the immediately preceding fiscal year
14 and adjusted not later than December 31 of the immediately
15 preceding fiscal year, an amount per pupil equal to 11.5% of the
16 sum of the district's foundation allowance or public school
17 academy's per pupil amount calculated under section 20, plus the
18 amount of the district's per pupil allocation under section
19 20j(2), not to exceed $6,500.00 adjusted by the dollar amount of
20 the difference between the basic foundation allowance under
21 section 20 for the current state fiscal year and $5,000.00, minus
22 $200.00, or of the public school academy's per membership pupil
23 amount calculated under section 20 for the current state fiscal
24 year. A public school academy that began operations as a public
25 school academy after the pupil membership count day of the
26 immediately preceding school year shall receive under this
27 section for each membership pupil in the public school academy
1 who met the income eligibility criteria for free breakfast,
2 lunch, or milk, as determined under the Richard B. Russell
3 national school lunch act and as reported to the department by
4 October 31 of the current fiscal year and adjusted not later than
5 December 31 of the current fiscal year, an amount per pupil equal
6 to 11.5% of the public school academy's per membership pupil
7 amount calculated under section 20 for the current state fiscal
8 year.
9 (4) Except as otherwise provided in this section, a district
10 or public school academy receiving funding under this section
11 shall use that money only to provide instructional programs and
12 direct noninstructional services, including, but not limited to,
13 medical or counseling services, for at-risk pupils; for school
14 health clinics; and for the purposes of subsection (5) or (6). A
15 district or public school academy shall not use any of that money
16 for administrative costs or to supplant another program or other
17 funds, except for funds allocated to the district or public
18 school academy under this section in the immediately preceding
19 year and already being used by the district or public school
20 academy for at-risk pupils. The instruction or direct
21 noninstructional services provided under this section may be
22 conducted before or after regular school hours or by adding extra
23 school days to the school year and may include, but are not
24 limited to, tutorial services, early childhood programs to serve
25 children age 0 to 5, and reading programs as described in former
26 section 32f as in effect for 2001-2002. A tutorial method may be
27 conducted with paraprofessionals working under the supervision of
1 a certificated teacher. The ratio of pupils to paraprofessionals
2 shall be between 10:1 and 15:1. Only 1 certificated teacher is
3 required to supervise instruction using a tutorial method. As
4 used in this subsection, "to supplant another program" means to
5 take the place of a previously existing instructional program or
6 direct noninstructional services funded from a funding source
7 other than funding under this section.
8 (5) Except as otherwise provided in subsection (11), a
9 district or public school academy that receives funds under this
10 section and that operates a school breakfast program under
11 section 1272a of the revised school code, MCL 380.1272a, shall
12 use from the funds received under this section an amount, not to
13 exceed $10.00 per pupil for whom the district or public school
14 academy receives funds under this section, necessary to operate
15 the school breakfast program.
16 (6) From the funds allocated under subsection (1), there is
17 allocated beginning
with 2003-2004 for 2004-2005 an amount not
18 to exceed $3,743,000.00 to support teen health centers. These
19 grants shall be awarded for 3 consecutive years beginning with
20 2003-2004 in a form and manner approved jointly by the department
21 and the department of community health. Each grant recipient
22 shall remain in compliance with the terms of the grant award or
23 shall forfeit the grant award for the duration of the 3-year
24 period after the noncompliance. If any funds allocated under
25 this subsection are not used for the purposes of this subsection
26 for the fiscal year in which they are allocated, those unused
27 funds shall be used that fiscal year to avoid or minimize any
1 proration that would otherwise be required under subsection (12)
2 for that fiscal year.
3 (7) Each district or public school academy receiving funds
4 under this section shall submit to the department by July 15 of
5 each fiscal year a report, not to exceed 10 pages, on the usage
6 by the district or public school academy of funds under this
7 section, which report shall include at least a brief description
8 of each program conducted by the district or public school
9 academy using funds under this section, the amount of funds under
10 this section allocated to each of those programs, the number of
11 at-risk pupils eligible for free or reduced price school lunch
12 who were served by each of those programs, and the total number
13 of at-risk pupils served by each of those programs. If a
14 district or public school academy does not comply with this
15 subsection, the department shall withhold an amount equal to the
16 August payment due under this section until the district or
17 public school academy complies with this subsection. If the
18 district or public school academy does not comply with this
19 subsection by the end of the state fiscal year, the withheld
20 funds shall be forfeited to the school aid fund.
21 (8) In order to receive funds under this section, a district
22 or public school academy shall allow access for the department or
23 the department's designee to audit all records related to the
24 program for which it receives those funds. The district or
25 public school academy shall reimburse the state for all
26 disallowances found in the audit.
27 (9) Subject to subsections (5), (6), and (11), any district
1 may use up to 100% of the funds it receives under this section to
2 reduce the ratio of pupils to teachers in grades K-6, or any
3 combination of those grades, in school buildings in which the
4 percentage of pupils described in subsection (1) exceeds the
5 district's aggregate percentage of those pupils. Subject to
6 subsections (5), (6), and (11), if a district obtains a waiver
7 from the department, the district may use up to 100% of the funds
8 it receives under this section to reduce the ratio of pupils to
9 teachers in grades K-6, or any combination of those grades, in
10 school buildings in which the percentage of pupils described in
11 subsection (1) is at least 60% of the district's aggregate
12 percentage of those pupils and at least 30% of the total number
13 of pupils enrolled in the school building. To obtain a waiver, a
14 district must apply to the department and demonstrate to the
15 satisfaction of the department that the class size reductions
16 would be in the best interests of the district's at-risk pupils.
17 (10) A district or public school academy may use funds
18 received under this section for adult high school completion,
19 general education development (G.E.D.) test preparation, adult
20 English as a second language, or adult basic education programs
21 described in section 107.
22 (11) For an individual school or schools operated by a
23 district or public school academy receiving funds under this
24 section that have been determined by the department to meet the
25 adequate yearly progress standards of the federal no child left
26 behind act of 2001,
Public Law 107-110, 115 Stat. 1425, in both
27 mathematics and English language arts at all applicable grade
1 levels for all applicable subgroups, the district or public
2 school academy may submit to the department an application for
3 flexibility in using the funds received under this section that
4 are attributable to the pupils in the school or schools. The
5 application shall identify the affected school or schools and the
6 affected funds and shall contain a plan for using the funds for
7 specific purposes identified by the district that are designed to
8 benefit at-risk pupils in the school, but that may be different
9 from the purposes otherwise allowable under this section. The
10 department shall approve the application if the department
11 determines that the purposes identified in the plan are
12 reasonably designed to benefit at-risk pupils in the school. If
13 the department does not act to approve or disapprove an
14 application within 30 days after it is submitted to the
15 department, the application is considered to be approved. If an
16 application for flexibility in using the funds is approved, the
17 district may use the funds identified in the application for any
18 purpose identified in the plan.
19 (12) If necessary, and before any proration required under
20 section 11, the department shall prorate payments under this
21 section by reducing the amount of the per pupil payment under
22 this section by a dollar amount calculated by determining the
23 amount by which the amount necessary to fully fund the
24 requirements of this section exceeds the maximum amount allocated
25 under this section and then dividing that amount by the total
26 statewide number of pupils who met the income eligibility
27 criteria for free breakfast, lunch, or milk in the immediately
1 preceding fiscal year, as described in subsection (1).
2 (13) If a district is formed by consolidation after June 1,
3 1995, and if 1 or more of the original districts was not eligible
4 before the consolidation for an additional allowance under this
5 section, the amount of the additional allowance under this
6 section for the consolidated district shall be based on the
7 number of pupils described in subsection (1) enrolled in the
8 consolidated district who reside in the territory of an original
9 district that was eligible before the consolidation for an
10 additional allowance under this section.
11 (14) A district or public school academy that does not meet
12 the eligibility requirement under subsection (2)(a) is eligible
13 for funding under this section if at least 1/4 of the pupils in
14 membership in the district or public school academy met the
15 income eligibility criteria for free breakfast, lunch, or milk in
16 the immediately preceding state fiscal year, as determined and
17 reported as described in subsection (1), and at least 4,500 of
18 the pupils in membership in the district or public school academy
19 met the income eligibility criteria for free breakfast, lunch, or
20 milk in the immediately preceding state fiscal year, as
21 determined and reported as described in subsection (1). A
22 district or public school academy that is eligible for funding
23 under this section because the district meets the requirements of
24 this subsection shall receive under this section for each
25 membership pupil in the district or public school academy who met
26 the income eligibility criteria for free breakfast, lunch, or
27 milk in the immediately preceding fiscal year, as determined and
1 reported as described in subsection (1), an amount per pupil
2 equal to 11.5% of the sum of the district's foundation allowance
3 or public school academy's per pupil allocation under section 20,
4 plus the amount of the district's per pupil allocation under
5 section 20j(2), not to exceed $6,500.00 adjusted by the dollar
6 amount of the difference between the basic foundation allowance
7 under section 20 for the current state fiscal year and $5,000.00,
8 minus $200.00.
9 (15) As used in this section, "at-risk pupil" means a pupil
10 for whom the district has documentation that the pupil meets at
11 least 2 of the following criteria: is a victim of child abuse or
12 neglect; is below grade level in English language and
13 communication skills or mathematics; is a pregnant teenager or
14 teenage parent; is eligible for a federal free or reduced-price
15 lunch subsidy; has atypical behavior or attendance patterns; or
16 has a family history of school failure, incarceration, or
17 substance abuse. For pupils for whom the results of at least the
18 applicable Michigan education assessment program (MEAP) test have
19 been received, at-risk pupil also includes a pupil who does not
20 meet the other criteria under this subsection but who did not
21 achieve at least a score
of moderate level 2 on the most recent
22 MEAP reading English
language arts, mathematics, or science
23 test for which results
for the pupil have been received. , did
24 not achieve at least a
score of moderate on the most recent MEAP
25 mathematics test for
which results for the pupil have been
26 received, or did not
achieve at least a score of novice on the
27 most recent MEAP
science test for which results for the pupil
1 have been received. For pupils in grades K-3, at-risk pupil also
2 includes a pupil who is at risk of not meeting the district's
3 core academic curricular
objectives in English language ,
4 communication skills, arts or mathematics.
5 Sec. 31d. (1) From the appropriations in section 11, there
6 is allocated an amount
not to exceed $18,315,000.00 for
7 2002-2003 and an
amount not to exceed $21,300,000.00 for
8 2003-2004 $21,095,100.00 for 2004-2005 for the purpose
of making
9 payments to districts and other eligible entities under this
10 section.
11 (2) The amounts allocated from state sources under this
12 section shall be used to pay the amount necessary to reimburse
13 districts for 6.0127% of the necessary costs of the state
14 mandated portion of the school lunch programs provided by those
15 districts. The amount due to each district under this section
16 shall be computed by the department using the methods of
17 calculation adopted by the Michigan supreme court in the
18 consolidated cases known as Durant v State of Michigan, Michigan
19 supreme court docket no. 104458-104492.
20 (3) The payments made under this section include all state
21 payments made to districts so that each district receives at
22 least 6.0127% of the necessary costs of operating the state
23 mandated portion of the school lunch program in a fiscal year.
24 (4) The payments made under this section to districts and
25 other eligible entities that are not required under section 1272a
26 of the revised school code, MCL 380.1272a, to provide a school
27 lunch program shall be in an amount not to exceed $10.00 per
1 eligible pupil plus 5 cents for each free lunch and 2 cents for
2 each reduced price lunch provided, as determined by the
3 department.
4 (5) From the federal funds appropriated in section 11, there
5 is allocated for 2003-2004
2004-2005 all available federal
6 funding, estimated at $272,125,000.00, for the national school
7 lunch program and all available federal funding, estimated at
8 $2,506,000.00, for the emergency food assistance program.
9 (6) Notwithstanding section 17b, payments to eligible
10 entities other than districts under this section shall be paid on
11 a schedule determined by the department.
12 Sec. 32c. (1) From the general fund appropriation in
13 section 11, there is allocated an amount not to exceed
14 $250,000.00 for 2003-2004
2004-2005 to the department for
15 grants for community-based collaborative prevention services
16 designed to promote marriage and foster positive parenting
17 skills; improve parent/child interaction, especially for children
18 0-3 years of age; promote access to needed community services;
19 increase local capacity to serve families at risk; improve school
20 readiness; and support healthy family environments that
21 discourage alcohol, tobacco, and other drug use. The allocation
22 under this section is to fund secondary prevention programs as
23 defined by the children's trust fund for the prevention of child
24 abuse and neglect.
25 (2) The funds allocated under subsection (1) shall be
26 distributed through a joint request for proposals process
27 established by the department in conjunction with the children's
1 trust fund and the state's interagency systems reform workgroup.
2 Projects funded with grants awarded under this section shall meet
3 all of the following:
4 (a) Be secondary prevention initiatives and voluntary to
5 consumers. This appropriation is not intended to serve the needs
6 of children for whom and families in which neglect or abuse has
7 been substantiated.
8 (b) Demonstrate that the planned services are part of a
9 community's integrated comprehensive family support strategy
10 endorsed by the local multi-purpose collaborative body.
11 (c) Provide a 25% local match, of which not more than 10% may
12 be in-kind services, unless this requirement is waived by the
13 interagency systems reform workgroup.
14 (3) Notwithstanding section 17b, payments under this section
15 may be made pursuant to an agreement with the department.
16 (4) Not later than January 30 of the next fiscal year, the
17 department shall prepare and submit to the governor and the
18 legislature an annual report of outcomes achieved by the
19 providers of the community-based collaborative prevention
20 services funded under this section for a fiscal year.
21 Sec. 32d. (1) From the state school aid fund money
22 appropriated under section 11, there is allocated an amount not
23 to exceed $72,600,000.00
for 2003-2004 $70,600,000.00 for
24 2004-2005 for school
readiness or preschool and parenting
25 program grants to enable eligible districts, as determined
under
26 section 37, to develop or expand, in conjunction with whatever
27 federal funds may be available, including, but not limited to,
1 federal funds under title I of the elementary and secondary
2 education act of 1965, Public
Law 89-10, 108 Stat. 3519, 20
3 U.S.C. 20 USC 6301 to 6304, 6311 to 6339, 6361 to
6368, 6371 to
4 6376, 6381 to 6383,
6391 to 6399, 6421 to 6472, 6491 to 6494,
5 6511 to 6518, 6531 to
6537, 6551 to 6561i, and 6571 to 6578,
6 chapter 1 of title I of the Hawkins-Stafford elementary and
7 secondary school improvement amendments of 1988, Public Law
8 89-10, 102 Stat. 140 100-297, and the head start act,
9 subchapter B of
chapter 8 of subtitle A of title VI of the
10 omnibus budget
reconciliation act of 1981, Public Law 97-35, 42
11 U.S.C. 42 USC 9831 to 9835, 9836 to 9844, 9846,
and 9848 to
12 9852 9852a, comprehensive compensatory programs
designed to do
13 1 or both of the
following: (a) Improve improve
the readiness
14 and subsequent achievement of educationally disadvantaged
15 children as defined by the department who will be at least 4, but
16 less than 5 years of age, as of December 1 of the school year in
17 which the programs are offered, and who show evidence of 2 or
18 more risk factors as defined in the state board report entitled
19 "children at risk" that was adopted by the state board on April
20 5, 1988.
21 (b) Provide
preschool and parenting education programs
22 similar to those under
former section 32b as in effect for
23 2001-2002.
24 (2) A comprehensive compensatory program funded under this
25 section may include an age-appropriate educational curriculum,
26 nutritional services, health screening for participating
27 children, a plan for parent and legal guardian involvement, and
1 provision of referral services for families eligible for
2 community social services.
3 (3) In addition to the allocation under subsection (1), from
4 the general fund money allocated under section 11, there is
5 allocated an amount not
to exceed $200,000.00 for 2003-2004 for
6 the purposes of
subsection (4). (4) From the general fund
7 allocation in
subsection (3), there is allocated for 2003-2004 an
8 amount not to exceed
$200,000.00 2004-2005 for a
competitive
9 grant to continue a longitudinal evaluation of children who have
10 participated in the Michigan school readiness program.
11 (4) (5) A
district receiving a grant under this section
12 may contract for the provision of the comprehensive compensatory
13 program and retain for administrative services an amount equal to
14 not more than 5% of the grant amount.
15 (5) (6) A
grant recipient receiving funds under this
16 section shall report to the department no later than October 15
17 of each year the number of children participating in the program
18 who meet the income or other eligibility criteria specified under