June 25, 2009, Introduced by Rep. Cushingberry and referred to the Committee on Education.
A bill to amend 1990 PA 72, entitled
"Local government fiscal responsibility act,"
by amending section 33 (MCL 141.1233), as amended by 2002 PA 408.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 33. (1) The superintendent of public instruction may
determine that a school district has a serious financial problem if
he or she finds that 1 or more of the following conditions exist:
(a) The school district ended the most recently completed
school fiscal year with a deficit in 1 or more of its funds and the
superintendent of public instruction has not approved a deficit
elimination plan within 3 months after the district's deadline for
submission of its annual financial statement.
(b) The school board of the school district adopts a
resolution declaring that the school district is in a financial
emergency.
(c) The superintendent of public instruction receives a
petition containing specific allegations of school district
financial distress signed by a number of registered electors
residing within the school district equal to not less than 10% of
the total vote cast for all candidates for governor within the
school district at the last preceding election at which a governor
was elected. Petitions shall not be filed under this subdivision
within 60 days before any election of the school district.
(d) The superintendent of public instruction receives a
written request, from a creditor of the school district with an
undisputed claim against the school district, to find the school
district has a serious financial problem. The superintendent of
public instruction may honor this request only if the claim remains
unpaid 6 months after its due date, the claim exceeds the greater
of $10,000.00 or 1% of the annual general fund budget of the school
district, and the creditor notifies the school district in writing
at least 30 days before he or she requests the superintendent of
public instruction to find that the school district has a serious
financial problem.
(e) The superintendent of public instruction receives written
notification from a trustee, paying agent, note or bondholder, or
the state treasurer of a violation of 1 or more of the school
district's bond or note covenants.
(f) The superintendent of public instruction receives a
resolution from either the senate or the house of representatives
requesting a review under this section of the financial condition
of the school district.
(g) The school district is in violation of the conditions of
an order issued pursuant to, or as a requirement of, former 1943 PA
202, the revenue bond act of 1933, 1933 PA 94, MCL 141.101 to
141.140, the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821, or any other law governing the issuance of
bonds or notes.
(h) The school district is in violation of the requirements of
sections 17 to 20 of the uniform budgeting and accounting act, 1968
PA 2, MCL 141.437 to 141.440.
(i) The school district fails to provide an annual financial
report or audit that conforms with the minimum procedures and
standards of the state board and is required under the revised
school code, 1976 PA 451, MCL 380.1 to 380.1852, and the state
school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772.
(j) A court has ordered an additional tax levy without the
prior approval of the school board of the school district.
(k) The superintendent of public instruction determines that
both of the following apply to 1 or more of the schools operated by
the school district:
(i) The school has been unaccredited for 4 consecutive years
under section 1280 of the revised school code, 1976 PA 451, MCL
380.1280, or has failed to achieve the federal pupil performance
standard for 4 or more consecutive years. As used in this
subparagraph, "failed to achieve the federal pupil performance
standard" means that the department has determined that the school
has failed to achieve adequate yearly progress under the no child
left behind act of 2001, Public Law 107-110, or has failed to meet
a successor federal standard that the superintendent of public
instruction has identified as being a standard established by the
federal government that is based on pupil performance and is
required to be met in order to receive full federal funding.
(ii) The percentage of all pupils enrolled in the school who
scored at least "proficient" on the most recent Michigan education
assessment program assessments or Michigan merit examination, as
applicable, for which results are available was less than 35% in
both mathematics and English language arts.
(2) Upon determining that a school district has a serious
financial problem, the superintendent of public instruction shall
notify the governor and the state board of that determination and
of the basis for and findings supporting the determination.