November 10, 2005, Introduced by Reps. Byrnes, Hopgood, Clack, Accavitti, Wojno, Miller, Bennett, Whitmer, Gillard, Bieda, Vagnozzi, Leland, Gaffney, Brown, Adamini, Anderson, Williams, Kolb, Angerer, Hune, Stewart, Farrah, Donigan, Green, Polidori, Gonzales, Lemmons, Jr., Alma Smith, Waters, Byrum, Dillon, Jones, Ward and Lemmons, III and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11, 32d, 32l, and 37 (MCL 388.1611, 388.1632d,
388.1632l, and 388.1637), sections 11, 32d, and 37 as amended and
section 32l as added by 2005 PA 155.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) For the fiscal year ending September 30, 2005,
there is appropriated for the public schools of this state and
certain other state purposes relating to education the sum of
$10,907,222,200.00 from the state school aid fund established by
section 11 of article IX of the state constitution of 1963, the sum
of $41,100,000.00 from the proceeds of capitalization of the school
bond loan fund revolving fund, and the sum of $165,200,000.00 from
the general fund. For the fiscal year ending September 30, 2006,
there is appropriated for the public schools of this state and
certain other state purposes relating to education the sum of
$11,257,600,000.00 from the state school aid fund established by
section 11 of article IX of the state constitution of 1963, the sum
of $44,500,000.00 from the proceeds of capitalization of the school
bond
loan fund revolving fund, and the sum of $62,714,000.00
$147,564,000.00 from the general fund. In addition, available
federal funds are appropriated for each fiscal year.
(2) The appropriations under this section shall be allocated
as provided in this act. Money appropriated under this section from
the general fund shall be expended to fund the purposes of this act
before the expenditure of money appropriated under this section
from the state school aid fund. If the maximum amount appropriated
under this section from the state school aid fund for a fiscal year
exceeds the amount necessary to fully fund allocations under this
act from the state school aid fund, that excess amount shall not be
expended in that state fiscal year and shall not lapse to the
general fund, but instead shall be deposited into the school aid
stabilization fund created in section 11a.
(3) If the maximum amount appropriated under this section from
the state school aid fund and the school aid stabilization fund for
a fiscal year exceeds the amount available for expenditure from the
state school aid fund for that fiscal year, payments under sections
11f, 11g, 11j, 22a, 26a, 26b, 31d, 51a(2), 51a(12), 51c, 53a, and
56 shall be made in full. In addition, for districts beginning
operations after 1994-95 that qualify for payments under section
22b, payments under section 22b shall be made so that the
qualifying districts receive the lesser of an amount equal to the
1994-95 foundation allowance of the district in which the district
beginning operations after 1994-95 is located or $5,500.00. The
amount of the payment to be made under section 22b for these
qualifying districts shall be as calculated under section 22a, with
the balance of the payment under section 22b being subject to the
proration otherwise provided under this subsection and subsection
(4). If proration is necessary after 2002-2003, state payments
under each of the other sections of this act from all state funding
sources shall be prorated in the manner prescribed in subsection
(4) as necessary to reflect the amount available for expenditure
from the state school aid fund for the affected fiscal year.
However, if the department of treasury determines that proration
will be required under this subsection, or if the department of
treasury determines that further proration is required under this
subsection after an initial proration has already been made for a
fiscal year, the department of treasury shall notify the state
budget director, and the state budget director shall notify the
legislature at least 30 calendar days or 6 legislative session
days, whichever is more, before the department reduces any payments
under this act because of the proration. During the 30 calendar day
or 6 legislative session day period after that notification by the
state budget director, the department shall not reduce any payments
under this act because of proration under this subsection. The
legislature may prevent proration from occurring by, within the 30
calendar day or 6 legislative session day period after that
notification by the state budget director, enacting legislation
appropriating additional funds from the general fund,
countercyclical budget and economic stabilization fund, state
school aid fund balance, or another source to fund the amount of
the projected shortfall.
(4) If proration is necessary, the department shall calculate
the proration in district and intermediate district payments that
is required under subsection (3) as follows:
(a) The department shall calculate the percentage of total
state school aid allocated under this act for the affected fiscal
year for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(i) for districts by
reducing payments to districts. This reduction shall be made by
calculating an equal dollar amount per pupil as necessary to
recover this percentage of the proration amount and reducing each
district's total state school aid from state sources, other than
payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 51a(2),
51a(12), 51c, and 53a, by that amount.
(c) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(ii) for intermediate
districts by reducing payments to intermediate districts. This
reduction shall be made by reducing the payments to each
intermediate district, other than payments under sections 11f, 11g,
26a, 26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage
basis.
(d) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(iii) for entities other
than districts and intermediate districts by reducing payments to
these entities. This reduction shall be made by reducing the
payments to each of these entities, other than payments under
sections 11j, 26a, and 26b, on an equal percentage basis.
(5) Except for the allocation under section 26a, any general
fund allocations under this act that are not expended by the end of
the state fiscal year are transferred to the school aid
stabilization fund created under section 11a.
Sec. 32d. (1) From the state school aid fund money
appropriated under section 11, there is allocated an amount not to
exceed $72,600,000.00
$145,200,000.00 for 2005-2006 for school
readiness or preschool and parenting program grants to enable
eligible districts, as determined under section 37, to develop or
expand, in conjunction with whatever federal funds may be
available, including, but not limited to, federal funds under title
I of the elementary and secondary education act of 1965, 20 USC
6301 to 6578, chapter 1 of title I of the Hawkins-Stafford
elementary and secondary school improvement amendments of 1988,
Public Law 100-297, and the head start act, 42 USC 9831 to 9852a,
comprehensive compensatory programs designed to do 1 or both of the
following:
(a) Improve the readiness and subsequent achievement of
educationally disadvantaged children as defined by the department
who will be at least 4, but less than 5 years of age, as of
December 1 of the school year in which the programs are offered,
and who show evidence of 2 or more risk factors as defined in the
state board report entitled "children at risk" that was adopted by
the state board on April 5, 1988.
(b) Provide preschool and parenting education programs similar
to those under former section 32b as in effect for 2001-2002.
(2) A comprehensive compensatory program funded under this
section may include an age-appropriate educational curriculum,
nutritional services, health screening for participating children,
a plan for parent and legal guardian involvement, and provision of
referral services for families eligible for community social
services.
(3) In addition to the allocation under subsection (1), from
the general fund money allocated under section 11, there is
allocated an amount not to exceed $200,000.00 for 2005-2006 for a
competitive grant to continue a longitudinal evaluation of children
who have participated in the Michigan school readiness program.
(4) A district receiving a grant under this section may
contract for the provision of the comprehensive compensatory
program and retain for administrative services an amount equal to
not more than 5% of the grant amount. A district may expend not
more than 10% of the total grant amount for administration of the
program.
(5) A grant recipient receiving funds under this section shall
report to the department on the midyear report the number of
children participating in the program who meet the income or other
eligibility criteria specified under section 37(3)(g) and the total
number of children participating in the program. For children
participating in the program who meet the income or other
eligibility criteria specified under section 37(3)(g), grant
recipients shall also report whether or not a parent is available
to provide care based on employment status. For the purposes of
this subsection, "employment status" shall be defined by the
department of human services in a manner consistent with maximizing
the amount of spending that may be claimed for temporary assistance
for needy families maintenance of effort purposes.
Sec. 32l. (1) From the general fund money appropriated in
section 11, there is allocated for 2005-2006 an amount not to
exceed $12,250,000.00
$24,500,000.00 for competitive school
readiness program grants. These grants shall be made available
through a competitive application process as follows:
(a) Any public or private nonprofit legal entity or agency may
apply for a grant under this section. However, a district or
intermediate district may not apply for a grant under this section
unless the district or intermediate district is acting as a fiscal
agent for a child caring organization regulated under 1973 PA 116,
MCL 722.111 to 722.128.
(b) An applicant shall submit an application in the form and
manner prescribed by the department.
(c) The department shall establish a diverse interagency
committee to review the applications. The committee shall be
composed of representatives of the department, appropriate
community, volunteer, and social service agencies and
organizations, and parents.
(d) The superintendent shall award the grants and shall give
priority for awarding the grants based upon the following criteria:
(i) Compliance with the state board-approved early childhood
standards of quality for prekindergarten.
(ii) Active and continuous involvement of the parents or
guardians of the children participating in the program.
(iii) Employment of teachers possessing proper training,
including a valid Michigan teaching certificate with an early
childhood (ZA) endorsement, a valid Michigan teaching certificate
with a child development associate credential, or a bachelor's
degree in child development with a specialization in preschool
teaching, and employment of paraprofessionals possessing proper
training in early childhood development, including an associate's
degree in early childhood education or child development or the
equivalent, or a child development associate (CDA) credential, or
the equivalent, as approved by the state board. A paraprofessional
who does not meet these requirements may be employed for not more
than 2 years while obtaining proper credentials if he or she has
completed at least 1 course in an appropriate training program.
(iv) Evidence of collaboration with the community of providers
in early childhood development programs including documentation of
the total number of children in the community who would meet the
criteria established in subparagraph (vi), and who are being served
by other providers, and the number of children who will remain
unserved by other community early childhood programs if this
program is funded.
(v) The extent to which these funds will supplement other
federal, state, local, or private funds.
(vi) The extent to which these funds will be targeted to
children who will be at least 4, but less than 5, years of age as
of December 1 of the year in which the programs are offered and who
show evidence of 2 or more "at-risk" factors as defined in the
state board report entitled "children at risk" that was adopted by
the state board on April 5, 1988.
(vii) The program offers supplementary day care and thereby
offers full-day programs as part of its early childhood development
program.
(viii) The application contains a plan approved by the
department to conduct and report annual school readiness program
evaluations and continuous improvement plans using criteria
approved by the department. At a minimum, the evaluations shall
include a self-assessment of program quality and assessment of the
gains in educational readiness and progress of the children
participating in the program.
(e) An application shall demonstrate that the program has
established or has joined a multidistrict, multiagency school
readiness advisory committee that is involved in the planning and
evaluation of the program and that provides for the involvement of
parents and appropriate community, volunteer, and social service
agencies and organizations. The advisory committee shall include at
least 1 parent or guardian of a program participant for every 18
children enrolled in the program, with a minimum of 2 parent or
guardian representatives. The advisory committee shall do all of
the following:
(i) Review the mechanisms and criteria used to determine
referrals for participation in the school readiness program.
(ii) Review the health screening program for all participants.
(iii) Review the nutritional services provided to all
participants.
(iv) Review the mechanisms in place for the referral of
families to community social service agencies, as appropriate.
(v) Review the collaboration with and the involvement of
appropriate community, volunteer, and social service agencies and
organizations in addressing all aspects of education disadvantage.
(vi) Review, evaluate, and make recommendations for changes in
the school readiness program.
(2) To be eligible for a grant under this section, a program
shall
demonstrate that more than 50% at least 25% of the
children
participating in the program live with families with a household
income that is less than or equal to 250% of the federal poverty
level.
(3) The superintendent may award grants under this section at
whatever level the superintendent determines appropriate. However,
the amount of a grant under this section, when combined with other
sources of state revenue for this program, shall not exceed
$3,300.00 per participating child or the cost of the program,
whichever is less.
(4) Except as otherwise provided in this subsection, an
applicant that receives a grant under this section for 2005-2006
shall also receive priority for funding under this section for
2006-2007 and 2007-2008. However, after 3 fiscal years of
continuous funding, an applicant is required to compete openly with
new programs and other programs completing their third year. All
grant awards under this section are contingent on the availability
of funds and documented evidence of grantee compliance with early
childhood standards of quality for prekindergarten, as approved by
the state board, and with all operational, fiscal, administrative,
and other program requirements.
Sec. 37. (1) A district is eligible for an allocation under
section 32d if the district meets all of the requirements in
subsections (2), (3), and (4).
(2) The district shall submit a preapplication, in a manner
and on forms prescribed by the department, by a date specified by
the department in the immediately preceding state fiscal year. The
preapplication shall include a comprehensive needs assessment and
community collaboration plan, and shall identify all of the
following:
(a) The estimated total number of children in the community
who meet the criteria of section 32d and how that calculation was
made.
(b) The estimated number of children in the community who meet
the criteria of section 32d and are being served by other early
childhood development programs operating in the community, and how
that calculation was made.
(c) The number of children the district will be able to serve
who meet the criteria of section 32d including a verification of
physical facility and staff resources capacity.
(d) The estimated number of children who meet the criteria of
section 32d who will remain unserved after the district and
community early childhood programs have met their funded
enrollments. The school district shall maintain a waiting list of
identified unserved eligible children who would be served when
openings are available.
(3) The district shall submit a final application for
approval, in a manner and on forms prescribed by the department, by
a date specified by the department. The final application shall
indicate all of the following that apply:
(a) The district complies with the state board approved early
childhood standards of quality for prekindergarten.
(b) The district provides for the active and continuous
participation of parents or guardians of the children in the
program, and describes the district's participation plan as part of
the application.
(c) The district only employs for this program the following:
(i) Teachers possessing proper training. For programs the
district manages itself, a valid teaching certificate and an early
childhood (ZA) endorsement are required. This provision does not
apply to a district that subcontracts with an eligible child
development program. In that situation a teacher must have a valid
Michigan teaching certificate with an early childhood (ZA)
endorsement, a valid Michigan teaching certificate with a child
development associate credential, or a bachelor’s degree in child
development with specialization in preschool teaching.
(ii) Paraprofessionals possessing proper training in early
childhood development, including an associate’s degree in early
childhood education or child development or the equivalent, or a
child development associate (CDA) credential, or the equivalent as
approved by the state board. A paraprofessional who does not meet
these requirements may be employed for not more than 2 years while
obtaining proper credentials if he or she has completed at least 1
course in an appropriate training program.
(d) The district has submitted for approval a program budget
that includes only those costs not reimbursed or reimbursable by
federal funding, that are clearly and directly attributable to the
early childhood readiness program, and that would not be incurred
if the program were not being offered. If children other than those
determined to be educationally disadvantaged participate in the
program, state reimbursement under section 32d shall be limited to
the portion of approved costs attributable to educationally
disadvantaged children.
(e) The district has established a, or has joined a
multidistrict, multiagency, school readiness advisory committee
consisting of, at a minimum, classroom teachers for
prekindergarten, kindergarten, and first grade; parents or
guardians of program participants; representatives from appropriate
community agencies and organizations; the district curriculum
director or equivalent administrator; and, if feasible, a school
psychologist, school social worker, or school counselor. In
addition, there shall be on the committee at least 1 parent or
guardian of a program participant for every 18 children enrolled in
the program, with a minimum of 2 parent or guardian
representatives. The committee shall do all of the following:
(i) Ensure the ongoing articulation of the early childhood,
kindergarten, and first grade programs offered by the district or
districts.
(ii) Review the mechanisms and criteria used to determine
participation in the early childhood program.
(iii) Review the health screening program for all participants.
(iv) Review the nutritional services provided to program
participants.
(v) Review the mechanisms in place for the referral of
families to community social service agencies, as appropriate.
(vi) Review the collaboration with and the involvement of
appropriate community, volunteer, and social service agencies and
organizations in addressing all aspects of educational
disadvantage.
(vii) Review, evaluate, and make recommendations to a local
school readiness program or programs for changes to the school
readiness program.
(f) The district has submitted for departmental approval a
plan to conduct and report annual school readiness program
evaluations and continuous improvement plans using criteria
approved by the department. At a minimum, the evaluations shall
include a self-assessment of program quality and assessment of the
gains in educational readiness and progress of the children
participating in the program.
(g) More
than 50% At least 25% of the children participating
in the program live with families with a household income that is
equal to or less than 250% of the federal poverty level.
(4) A consortium of 2 or more districts shall be eligible for
an allocation under section 32d if the districts designate a single
fiscal agent for the allocation. A district or intermediate
district may administer a consortium described in this subsection.
A consortium shall submit a single preapplication and application
for the children to be served, regardless of the number of
districts participating in the consortium.
(5) With the final application, an applicant district shall
submit to the department a resolution adopted by its board
certifying the number of 4-year-old children who show evidence of
risk factors as described in section 32d who live with families
with a household income that is less than or equal to 250% of the
federal poverty level.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5425(request no.
04646'05).
(b) Senate Bill No.____ or House Bill No. 5424(request no.
04734'05).