May 4, 2006, Introduced by Reps. Ward, Farhat and Palsrok 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 11 (MCL 388.1611), as amended 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 from
the general fund. In addition, available federal funds are
appropriated for each fiscal year.
(2) In addition to the general fund money appropriated under
subsection (1), for the fiscal year ending September 30, 2007,
there is appropriated from the general fund for the public schools
of this state and certain other state purposes relating to
education as provided under this act an amount equal to 20% of the
net revenue in the state lottery fund and any money or interest
generated by the state lottery fund and share of common cash that
was deposited for the 2005-2006 fiscal year in the state school aid
fund under section 41 of the McCauley-Traxler-Law-Bowman-McNeely
lottery act, 1972 PA 239, MCL 432.41.
(3) In addition to the general fund money appropriated under
subsection (1), for the fiscal year ending September 30, 2008,
there is appropriated from the general fund for the public schools
of this state and certain other state purposes relating to
education as provided under this act an amount equal to 40% of the
net revenue in the state lottery fund and any money or interest
generated by the state lottery fund and share of common cash that
was deposited for the 2005-2006 fiscal year in the state school aid
fund under section 41 of the McCauley-Traxler-Law-Bowman-McNeely
lottery act, 1972 PA 239, MCL 432.41.
(4) In addition to the general fund money appropriated under
subsection (1), for the fiscal year ending September 30, 2009,
there is appropriated from the general fund for the public schools
of this state and certain other state purposes relating to
education as provided under this act an amount equal to 60% of the
net revenue in the state lottery fund and any money or interest
generated by the state lottery fund and share of common cash that
was deposited for the 2005-2006 fiscal year in the state school aid
fund under section 41 of the McCauley-Traxler-Law-Bowman-McNeely
lottery act, 1972 PA 239, MCL 432.41.
(5) In addition to the general fund money appropriated under
subsection (1), for the fiscal year ending September 30, 2010,
there is appropriated from the general fund for the public schools
of this state and certain other state purposes relating to
education as provided under this act an amount equal to 80% of the
net revenue in the state lottery fund and any money or interest
generated by the state lottery fund and share of common cash that
was deposited for the 2005-2006 fiscal year in the state school aid
fund under section 41 of the McCauley-Traxler-Law-Bowman-McNeely
lottery act, 1972 PA 239, MCL 432.41.
(6) In addition to the general fund money appropriated under
subsection (1), for the fiscal year ending September 30, 2011 and
for succeeding fiscal years, there is appropriated each fiscal year
from the general fund for the public schools of this state and
certain other state purposes relating to education as provided
under this act an amount equal to 100% of the net revenue in the
state lottery fund and any money or interest generated by the state
lottery fund and share of common cash that was deposited for the
2005-2006 fiscal year in the state school aid fund under section 41
of the McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA
239, MCL 432.41.
(7)
(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.
(8) (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) (9). 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) (9) 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.
(9) (4)
If proration is necessary, the department shall
calculate the proration in district and intermediate district
payments
that is required under subsection
(3) (8) 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) (8)
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) (8)
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) (8)
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.
(10) (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.
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) House Bill No. 4947.
(b) Senate Bill No. 895.
(c) Senate Bill No. 896.
(d) Senate Bill No. 897.
(e) Senate Bill No. 898.