SENATE BILL No. 1255

 

 

April 16, 2008, Introduced by Senators SWITALSKI, SCHAUER and BARCIA 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 and 99c (MCL 388.1611 and 388.1699c), as

 

amended by 2007 PA 137.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 11. (1) For the fiscal year ending September 30, 2008,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,493,064,200.00 $11,511,064,200.00 from the state school aid

 

fund established by section 11 of article IX of the state

 

constitution of 1963 and the sum of $34,909,600.00 $36,909,600.00

 

from the general fund. In addition, available federal funds are

 

appropriated for the fiscal year ending September 30, 2008.


 

     (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, 31f, 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, 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 under subsection (3), 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, 31f,

 

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. 99c. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $0.00 $18,000,000.00 for 2007-2008 for payments to districts

 

under this section for the grants to intermediate districts for

 

middle school mathematics initiative pilot programs. The pilot

 

programs shall be designed to achieve the middle school mathematics

 

standards and benchmarks adopted by the state board and to assist

 

pupils to meet the state high school graduation requirements for

 

mathematics.

 

     (2) The amount of the payment to each district for 2006-2007

 

shall be an equal amount per pupil for each pupil actually enrolled

 

and attending school in the district in grades 6 to 8. Payments to

 

a district under this section for subsequent fiscal years shall be

 

as described in subsection (4). The department shall award grants

 

for pilot programs under this section to intermediate districts on

 

a first-come, first-served basis. The amount of a grant shall not

 

exceed $1,000,000.00. To be eligible for a grant, a pilot program

 

shall meet all of the following:

 

     (a) Shall provide local funding for the pilot program in an

 

amount at least equal to 1/3 of the amount of the grant. An

 

intermediate district may count the value of in-kind services


 

toward meeting this local match requirement.

 

     (b) Shall be conducted by the intermediate district in

 

cooperation with at least 1 other entity, which may include, but is

 

not limited to, another intermediate district, a district, a

 

community college, a state university, a mathematics and science

 

center, or the Michigan virtual university.

 

     (c) Shall be designed to assist pupils to meet the state high

 

school graduation requirements for mathematics.

 

     (3) An intermediate district receiving a grant under this

 

section shall submit an annual evaluation report to the department,

 

in the form and manner prescribed by the department. The report

 

shall include at least a detailed description of each of the

 

programs operated under the pilot program and on the outcomes

 

achieved by pupils in the pilot programs.

 

     (4) Grant funds awarded under this section are intended to be

 

for the first year of 3 years of funding.

 

     (5) From the general fund money appropriated in section 11,

 

there is allocated $2,000,000.00 to the Michigan virtual university

 

to develop and implement online learning resources, including an

 

online diagnostic tool, that are designed to help pupils and

 

teachers address challenging learning concepts and principles in

 

mathematics.

 

     (6) Notwithstanding section 17b, payments under this section

 

may be made pursuant to an agreement with the department.

 

     (7) (3) A district shall use funds received under this section

 

before 2007-2008 for activities and efforts designed to improve

 

pupil performance in mathematics. However, if a district has


 

carried forward unexpended funds received under this section into

 

2007-2008, the district may use those unexpended funds for any

 

purpose.