HOUSE BILL No. 4657

 

April 21, 2005, Introduced by Reps. Hansen, Booher, Brown, Garfield, Casperson, Kolb, Elsenheimer, Wenke, Green, Jones, Pearce and Moore and referred to the Committee on Appropriations.

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending section 15 (MCL 388.1615), as amended by 2004 PA 351.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 15. (1) If a district or intermediate district fails to

 

receive its proper apportionment, the department, upon satisfactory

 

proof that the district or intermediate district was entitled

 

justly, shall apportion the deficiency in the next apportionment.

 

Subject to subsections (2) and (3), if a district or intermediate

 

district has received more than its proper apportionment, the

 

department, upon satisfactory proof, shall deduct the excess in the

 

next apportionment. Notwithstanding any other provision in this

 

act, state aid overpayments to a district, other than overpayments

 

in payments for special education or special education


 

transportation, may be recovered from any payment made under this

 

act other than a special education or special education

 

transportation payment. State aid overpayments made in special

 

education or special education transportation payments may be

 

recovered from subsequent special education or special education

 

transportation payments.

 

     (2) If the result of an audit conducted by or for the

 

department affects the current fiscal year membership, affected

 

payments shall be adjusted in the current fiscal year. A deduction

 

due to an adjustment made as a result of an audit conducted by or

 

for the department, or as a result of information obtained by the

 

department from the district, an intermediate district, the

 

department of treasury, or the office of auditor general, shall be

 

deducted from the district's apportionments within the next fiscal

 

year after the fiscal year in which the adjustment is finalized. At

 

the request of the district and upon the district presenting

 

evidence satisfactory to the department of the hardship, the

 

department may grant  up to an additional 4 years  an additional

 

period of time for the adjustment if the district would otherwise

 

experience a significant hardship. This additional period of time

 

shall not exceed the greater of 4 years or a number of years equal

 

to the number of fiscal years for which the adjustment is being

 

made.

 

     (3) If, because of the receipt of new or updated data, the

 

department determines during a fiscal year that the amount paid to

 

a district or intermediate district under this act for a prior

 

fiscal year was incorrect under the law in effect for that year,


 

the department may make the appropriate deduction or payment in the

 

district's or intermediate district's allocation for the fiscal

 

year in which the determination is made. The deduction or payment

 

shall be calculated according to the law in effect in the fiscal

 

year in which the improper amount was paid.

 

     (4) Expenditures made by the department under this act that

 

are caused by the write-off of prior year accruals may be funded by

 

revenue from the write-off of prior year accruals.