HOUSE BILL No. 5636

December 1, 2009, Introduced by Rep. Melton and referred to the Committee on Education.

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 6, 20, and 94a (MCL 388.1606, 388.1620, and

388.1694a), as amended by 2009 PA 121.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 6. (1) "Center program" means a program operated by a

district or intermediate district for special education pupils from

several districts in programs for pupils with autism spectrum

disorder, pupils with severe cognitive impairment, pupils with

moderate cognitive impairment, pupils with severe multiple

impairments, pupils with hearing impairment, pupils with visual

impairment, and pupils with physical impairment or other health

impairment. Programs for pupils with emotional impairment housed in

buildings that do not serve regular education pupils also qualify.

Unless otherwise approved by the department, a center program

either shall serve all constituent districts within an intermediate

district or shall serve several districts with less than 50% of the

pupils residing in the operating district. In addition, special

education center program pupils placed part-time in noncenter

programs to comply with the least restrictive environment

provisions of section 612 of part B of the individuals with

disabilities education act, 20 USC 1412, may be considered center

program pupils for pupil accounting purposes for the time scheduled

in either a center program or a noncenter program.

(2) "District and high school graduation rate" means the

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

(3) "District and high school graduation report" means a

report of the number of pupils, excluding adult participants, in

the district for the immediately preceding school year, adjusted

for those pupils who have transferred into or out of the district

or high school, who leave high school with a diploma or other

credential of equal status.

(4) "Membership", except as otherwise provided in this act,

means for a district, public school academy, university school, or

intermediate district the sum of the product of .75 times the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the pupil membership

count day for the current school year, plus the product of .25

times the final audited count from the supplemental count day for

the immediately preceding school year. All pupil counts used in

this subsection are as determined by the department and calculated

by adding the number of pupils registered for attendance plus

pupils received by transfer and minus pupils lost as defined by

rules promulgated by the superintendent, and as corrected by a

subsequent department audit. The amount of the foundation allowance

for a pupil in membership is determined under section 20. In making

the calculation of membership, all of the following, as applicable,

apply to determining the membership of a district, public school

academy, university school, or intermediate district:

(a) Except as otherwise provided in this subsection, and

pursuant to subsection (6), a pupil shall be counted in membership

in the pupil's educating district or districts. An individual pupil

shall not be counted for more than a total of 1.0 full-time equated

membership.

(b) If a pupil is educated in a district other than the

pupil's district of residence, if the pupil is not being educated

as part of a cooperative education program, if the pupil's district

of residence does not give the educating district its approval to

count the pupil in membership in the educating district, and if the

pupil is not covered by an exception specified in subsection (6) to

the requirement that the educating district must have the approval

of the pupil's district of residence to count the pupil in

membership, the pupil shall not be counted in membership in any

district.

district shall be counted in membership in the intermediate

district.

(d) A pupil placed by a court or state agency in an on-grounds

program of a juvenile detention facility, a child caring

institution, or a mental health institution, or a pupil funded

under section 53a, shall be counted in membership in the district

or intermediate district approved by the department to operate the

program.

(e) A pupil enrolled in the Michigan schools for the deaf and

blind shall be counted in membership in the pupil's intermediate

district of residence.

(f) A pupil enrolled in a vocational education program

supported by a millage levied over an area larger than a single

district or in an area vocational-technical education program

established pursuant to section 690 of the revised school code, MCL

380.690, shall be counted only in the pupil's district of

residence.

(g) A pupil enrolled in a university school shall be counted

in membership in the university school.

(h) A pupil enrolled in a public school academy shall be

counted in membership in the public school academy.

(i) For a new district, university school, or public school

academy beginning its operation after December 31, 1994, membership

for the first 2 full or partial fiscal years of operation shall be

determined as follows:

(i) If operations begin before the pupil membership count day

for the fiscal year, membership is the average number of full-time

equated pupils in grades K to 12 actually enrolled and in regular

daily attendance on the pupil membership count day for the current

school year and on the supplemental count day for the current

school year, as determined by the department and calculated by

adding the number of pupils registered for attendance on the pupil

membership count day plus pupils received by transfer and minus

pupils lost as defined by rules promulgated by the superintendent,

and as corrected by a subsequent department audit, plus the final

audited count from the supplemental count day for the current

school year, and dividing that sum by 2.

(ii) If operations begin after the pupil membership count day

for the fiscal year and not later than the supplemental count day

for the fiscal year, membership is the final audited count of the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the supplemental count

day for the current school year.

(j) If a district is the authorizing body for a public school

academy, then, in the first school year in which pupils are counted

in membership on the pupil membership count day in the public

school academy, the determination of the district's membership

shall exclude from the district's pupil count for the immediately

preceding supplemental count day any pupils who are counted in the

public school academy on that first pupil membership count day who

were also counted in the district on the immediately preceding

supplemental count day.

(k) In a district, public school academy, university school,

or intermediate district operating an extended school year program

approved by the superintendent, a pupil enrolled, but not scheduled

to be in regular daily attendance on a pupil membership count day,

shall be counted.

(l) ~~Pupils~~ Until 2010-2011, to be counted in membership a pupil

shall be ~~not less than~~ at least 5 years of age on December 1 and

less than 20 years of age on September 1 of the school year. ~~except~~

For 2010-2011, to be counted in membership a pupil shall be at

least 5 years of age on November 1, 2010 and less than 20 years of

age on September 1, 2010. For 2011-2012, to be counted in

membership a pupil shall be at least 5 years of age on October 1,

2011 and less than 20 years of age on September 1, 2011. Beginning

with 2012-2013, to be counted in membership a pupil shall be at

least 5 years of age and less than 20 years of age on September 1

of the school year. However, a special education pupil who is

enrolled and receiving instruction in a special education program

or service approved by the department, ~~and not having~~ who does not

have a high school diploma, and who is less than 26 years of age as

of September 1 of the current school year shall be counted in

membership.

(m) An individual who has obtained a high school diploma shall

not be counted in membership. An individual who has obtained a

general educational development (G.E.D.) certificate shall not be

counted in membership. An individual participating in a job

training program funded under former section 107a or a jobs program

funded under former section 107b, administered by the Michigan

strategic fund or the department of energy, labor, and economic

growth, or participating in any successor of either of those 2

programs, shall not be counted in membership.

(n) If a pupil counted in membership in a public school

academy is also educated by a district or intermediate district as

part of a cooperative education program, the pupil shall be counted

in membership only in the public school academy unless a written

agreement signed by all parties designates the party or parties in

which the pupil shall be counted in membership, and the

instructional time scheduled for the pupil in the district or

intermediate district shall be included in the full-time equated

membership determination under subdivision (q). However, for pupils

receiving instruction in both a public school academy and in a

district or intermediate district but not as a part of a

cooperative education program, the following apply:

(i) If the public school academy provides instruction for at

least 1/2 of the class hours specified in subdivision (q), the

public school academy shall receive as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the public

school academy provides divided by the number of hours specified in

subdivision (q) for full-time equivalency, and the remainder of the

full-time membership for each of those pupils shall be allocated to

the district or intermediate district providing the remainder of

the hours of instruction.

(ii) If the public school academy provides instruction for less

than 1/2 of the class hours specified in subdivision (q), the

district or intermediate district providing the remainder of the

hours of instruction shall receive as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the

district or intermediate district provides divided by the number of

hours specified in subdivision (q) for full-time equivalency, and

the remainder of the full-time membership for each of those pupils

shall be allocated to the public school academy.

(o) An individual less than 16 years of age as of September 1

of the current school year who is being educated in an alternative

education program shall not be counted in membership if there are

also adult education participants being educated in the same

program or classroom.

(p) The department shall give a uniform interpretation of

full-time and part-time memberships.

(q) The number of class hours used to calculate full-time

equated memberships shall be consistent with section 101(3). In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution, a pupil shall not be

considered to be less than a full-time equated pupil solely because

of the effect of his or her postsecondary enrollment, including

necessary travel time, on the number of class hours provided by the

district to the pupil.

(r) Except as otherwise provided in this subdivision, full-

time equated memberships for pupils in kindergarten shall be

determined by dividing the number of class hours scheduled and

provided per year per kindergarten pupil by a number equal to 1/2

the number used for determining full-time equated memberships for

pupils in grades 1 to 12. Beginning in 2012-2013, for a district or

public school academy that is required to provide a full school day

kindergarten program under section 1147(3) of the revised school

code, MCL 380.1147, full-time equated memberships for pupils in

kindergarten shall be determined by dividing the number of class

hours scheduled and provided per year per kindergarten pupil by the

same number used for determining full-time equated memberships for

pupils in grades 1 to 12.

(s) For a district, university school, or public school

academy that has pupils enrolled in a grade level that was not

offered by the district, university school, or public school

academy in the immediately preceding school year, the number of

pupils enrolled in that grade level to be counted in membership is

the average of the number of those pupils enrolled and in regular

daily attendance on the pupil membership count day and the

supplemental count day of the current school year, as determined by

the department. Membership shall be calculated by adding the number

of pupils registered for attendance in that grade level on the

pupil membership count day plus pupils received by transfer and

minus pupils lost as defined by rules promulgated by the

superintendent, and as corrected by subsequent department audit,

plus the final audited count from the supplemental count day for

the current school year, and dividing that sum by 2.

(t) A pupil enrolled in a cooperative education program may be

counted in membership in the pupil's district of residence with the

written approval of all parties to the cooperative agreement.

(u) If, as a result of a disciplinary action, a district

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

is in the pupil's home or otherwise apart from the general school

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

pupil's home or otherwise apart from the general school population,

the district may count the pupil in membership on a pro rata basis,

with the proration based on the number of hours of instruction the

district actually provides to the pupil divided by the number of

hours specified in subdivision (q) for full-time equivalency. For

the purposes of this subdivision, a district shall be considered to

be providing appropriate instruction if all of the following are

met:

(i) The district provides at least 2 nonconsecutive hours of

instruction per week to the pupil at the pupil's home or otherwise

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies, except computers, that are comparable to those

otherwise provided in the district's alternative education program.

(iii) Course content is comparable to that in the district's

alternative education program.

(iv) Credit earned is awarded to the pupil and placed on the

pupil's transcript.

(v) A pupil enrolled in an alternative or disciplinary

education program described in section 25 shall be counted in

membership in the district or public school academy that is

educating the pupil.

(w) If a pupil was enrolled in a public school academy on the

pupil membership count day, if the public school academy's contract

with its authorizing body is revoked or the public school academy

otherwise ceases to operate, and if the pupil enrolls in a district

within 45 days after the pupil membership count day, the department

shall adjust the district's pupil count for the pupil membership

count day to include the pupil in the count.

(x) For a public school academy that has been in operation for

at least 2 years and that suspended operations for at least 1

semester and is resuming operations, membership is the sum of the

product of .75 times the number of full-time equated pupils in

grades K to 12 actually enrolled and in regular daily attendance on

the first pupil membership count day or supplemental count day,

whichever is first, occurring after operations resume, plus the

product of .25 times the final audited count from the most recent

pupil membership count day or supplemental count day that occurred

before suspending operations, as determined by the superintendent.

(y) If a district's membership for a particular fiscal year,

as otherwise calculated under this subsection, would be less than

1,550 pupils and the district has 4.5 or fewer pupils per square

mile, as determined by the department, and, beginning in 2007-2008,

if the district does not receive funding under section 22d(2), the

district's membership shall be considered to be the membership

figure calculated under this subdivision. If a district educates

and counts in its membership pupils in grades 9 to 12 who reside in

a contiguous district that does not operate grades 9 to 12 and if 1

or both of the affected districts request the department to use the

determination allowed under this sentence, the department shall

include the square mileage of both districts in determining the

number of pupils per square mile for each of the districts for the

purposes of this subdivision. The membership figure calculated

under this subdivision is the greater of the following:

(i) The average of the district's membership for the 3-fiscal-

year period ending with that fiscal year, calculated by adding the

district's actual membership for each of those 3 fiscal years, as

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

(ii) The district's actual membership for that fiscal year as

otherwise calculated under this subsection.

(z) If a public school academy that is not in its first or

second year of operation closes at the end of a school year and

does not reopen for the next school year, the department shall

adjust the membership count of the district in which a former pupil

of the public school academy enrolls and is in regular daily

attendance for the next school year to ensure that the district

receives the same amount of membership aid for the pupil as if the

pupil were counted in the district on the supplemental count day of

the preceding school year.

(aa) Full-time equated memberships for preprimary-aged special

education pupils who are not enrolled in kindergarten but are

enrolled in a classroom program under R 340.1754 of the Michigan

administrative code shall be determined by dividing the number of

class hours scheduled and provided per year by 450. Full-time

equated memberships for preprimary-aged special education pupils

who are not enrolled in kindergarten but are receiving nonclassroom

services under R 340.1755 of the Michigan administrative code shall

be determined by dividing the number of hours of service scheduled

and provided per year per pupil by 180.

(bb) A pupil of a district that begins its school year after

Labor day who is enrolled in an intermediate district program that

begins before Labor day shall not be considered to be less than a

full-time pupil solely due to instructional time scheduled but not

attended by the pupil before Labor day.

(cc) For the first year in which a pupil is counted in

membership on the pupil membership count day in a middle college

program described in section 64, the membership is the average of

the full-time equated membership on the pupil membership count day

and on the supplemental count day for the current school year, as

determined by the department. If a pupil was counted by the

operating district on the immediately preceding supplemental count

day, the pupil shall be excluded from the district's immediately

preceding supplemental count for purposes of determining the

district's membership.

(dd) A district that educates a pupil who attends a United

States Olympic education center may count the pupil in membership

regardless of whether or not the pupil is a resident of this state.

(5) "Public school academy" means a public school academy,

urban high school academy, or strict discipline academy operating

under the revised school code.

(6) "Pupil" means a person in membership in a public school. A

district must have the approval of the pupil's district of

residence to count the pupil in membership, except approval by the

pupil's district of residence is not required for any of the

following:

(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in

accordance with section 166b.

(b) A pupil receiving 1/2 or less of his or her instruction in

a district other than the pupil's district of residence.

school.

(d) A pupil enrolled in a district other than the pupil's

district of residence under an intermediate district schools of

choice pilot program as described in section 91a or former section

91 if the intermediate district and its constituent districts have

been exempted from section 105.

(e) A pupil enrolled in a district other than the pupil's

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

(f) A pupil who has made an official written complaint or

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

the pupil's district of residence that the pupil has been the

victim of a criminal sexual assault or other serious assault, if

the official complaint either indicates that the assault occurred

at school or that the assault was committed by 1 or more other

pupils enrolled in the school the pupil would otherwise attend in

the district of residence or by an employee of the district of

residence. A person who intentionally makes a false report of a

crime to law enforcement officials for the purposes of this

subdivision is subject to section 411a of the Michigan penal code,

1931 PA 328, MCL 750.411a, which provides criminal penalties for

that conduct. As used in this subdivision:

(i) "At school" means in a classroom, elsewhere on school

premises, on a school bus or other school-related vehicle, or at a

school-sponsored activity or event whether or not it is held on

school premises.

(ii) "Serious assault" means an act that constitutes a felony

violation of chapter XI of the Michigan penal code, 1931 PA 328,

MCL 750.81 to 750.90g, or that constitutes an assault and

infliction of serious or aggravated injury under section 81a of the

Michigan penal code, 1931 PA 328, MCL 750.81a.

(g) A pupil whose district of residence changed after the

pupil membership count day and before the supplemental count day

and who continues to be enrolled on the supplemental count day as a

nonresident in the district in which he or she was enrolled as a

resident on the pupil membership count day of the same school year.

(h) A pupil enrolled in an alternative education program

operated by a district other than his or her district of residence

who meets 1 or more of the following:

(i) The pupil has been suspended or expelled from his or her

district of residence for any reason, including, but not limited

to, a suspension or expulsion under section 1310, 1311, or 1311a of

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(ii) The pupil had previously dropped out of school.

(iii) The pupil is pregnant or is a parent.

(iv) The pupil has been referred to the program by a court.

(v) The pupil is enrolled in an alternative or disciplinary

education program described in section 25.

(i) A pupil enrolled in the Michigan virtual high school, for

the pupil's enrollment in the Michigan virtual high school.

(j) A pupil who is the child of a person who is employed by

the district. As used in this subdivision, "child" includes an

adopted child, stepchild, or legal ward.

(k) An expelled pupil who has been denied reinstatement by the

expelling district and is reinstated by another school board under

section 1311 or 1311a of the revised school code, MCL 380.1311 and

380.1311a.

(l) A pupil enrolled in a district other than the pupil's

district of residence in a program described in section 64 if the

pupil's district of residence and the enrolling district are both

constituent districts of the same intermediate district.

(m) A pupil enrolled in a district other than the pupil's

district of residence who attends a United States Olympic education

center.

However, if a district educates pupils who reside in another

district and if the primary instructional site for those pupils is

established by the educating district after 2009-2010 and is

located within the boundaries of that other district, the educating

district must have the approval of that other district to count

those pupils in membership.

(7) "Pupil membership count day" of a district or intermediate

district means:

(a) Except as provided in subdivision (b), the fourth

Wednesday after Labor day each school year or, for a district or

building in which school is not in session on that Wednesday due to

conditions not within the control of school authorities, with the

approval of the superintendent, the immediately following day on

which school is in session in the district or building.

(b) For a district or intermediate district maintaining school

during the entire school year, the following days:

(i) Fourth Wednesday in July.

(ii) Fourth Wednesday after Labor day.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

(8) "Pupils in grades K to 12 actually enrolled and in regular

daily attendance" means pupils in grades K to 12 in attendance and

receiving instruction in all classes for which they are enrolled on

the pupil membership count day or the supplemental count day, as

applicable. Except as otherwise provided in this subsection, a

pupil who is absent from any of the classes in which the pupil is

enrolled on the pupil membership count day or supplemental count

day and who does not attend each of those classes during the 10

consecutive school days immediately following the pupil membership

count day or supplemental count day, except for a pupil who has

been excused by the district, shall not be counted as 1.0 full-time

equated membership. A pupil who is excused from attendance on the

pupil membership count day or supplemental count day and who fails

to attend each of the classes in which the pupil is enrolled within

30 calendar days after the pupil membership count day or

supplemental count day shall not be counted as 1.0 full-time

equated membership. In addition, a pupil who was enrolled and in

attendance in a district, intermediate district, or public school

academy before the pupil membership count day or supplemental count

day of a particular year but was expelled or suspended on the pupil

membership count day or supplemental count day shall only be

counted as 1.0 full-time equated membership if the pupil resumed

attendance in the district, intermediate district, or public school

academy within 45 days after the pupil membership count day or

supplemental count day of that particular year. Pupils not counted

as 1.0 full-time equated membership due to an absence from a class

shall be counted as a prorated membership for the classes the pupil

attended. For purposes of this subsection, "class" means a period

of time in 1 day when pupils and a certificated teacher or legally

qualified substitute teacher are together and instruction is taking

place.

(9) "Rule" means a rule promulgated pursuant to the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328.

(10) "The revised school code" means 1976 PA 451, MCL 380.1 to

380.1852.

(11) "School district of the first class", "first class school

district", and "district of the first class", except in subsection

(6), mean a district that had at least 60,000 pupils in membership

for the immediately preceding fiscal year.

(12) "School fiscal year" means a fiscal year that commences

July 1 and continues through June 30.

(13) "State board" means the state board of education.

(14) "Superintendent", unless the context clearly refers to a

district or intermediate district superintendent, means the

superintendent of public instruction described in section 3 of

article VIII of the state constitution of 1963.

(15) "Supplemental count day" means the day on which the

supplemental pupil count is conducted under section 6a.

(16) "Tuition pupil" means a pupil of school age attending

school in a district other than the pupil's district of residence

for whom tuition may be charged. Tuition pupil does not include a

pupil who is a special education pupil or a pupil described in

subsection (6)(c) to (m). A pupil's district of residence shall not

require a high school tuition pupil, as provided under section 111,

to attend another school district after the pupil has been assigned

to a school district.

(17) "State school aid fund" means the state school aid fund

established in section 11 of article IX of the state constitution

of 1963.

(18) "Taxable value" means the taxable value of property as

determined under section 27a of the general property tax act, 1893

PA 206, MCL 211.27a.

(19) "Textbook" means a book that is selected and approved by

the governing board of a district and that contains a presentation

of principles of a subject, or that is a literary work relevant to

the study of a subject required for the use of classroom pupils, or

another type of course material that forms the basis of classroom

instruction.

(20) "Total state aid" or "total state school aid" means the

total combined amount of all funds due to a district, intermediate

district, or other entity under all of the provisions of this act.

(21) "University school" means an instructional program

operated by a public university under section 23 that meets the

requirements of section 23.

Sec. 20. (1) For 2009-2010, the basic foundation allowance is

$8,489.00.

(2) The amount of each district's foundation allowance shall

be calculated as provided in this section, using a basic foundation

allowance in the amount specified in subsection (1).

(3) Except as otherwise provided in this section, the amount

of a district's foundation allowance shall be calculated as

follows, using in all calculations the total amount of the

district's foundation allowance as calculated before any proration:

(a) For a district that had a foundation allowance for the

immediately preceding state fiscal year that was at least equal to

the sum of $7,108.00 plus the total dollar amount of all

adjustments made from 2006-2007 to the immediately preceding state

fiscal year in the lowest foundation allowance among all districts,

but less than the basic foundation allowance for the immediately

preceding state fiscal year, the district shall receive a

foundation allowance in an amount equal to the sum of the

district's foundation allowance for the immediately preceding state

fiscal year plus the difference between twice the dollar amount of

the adjustment from the immediately preceding state fiscal year to

the current state fiscal year made in the basic foundation

allowance and [(the dollar amount of the adjustment from the

immediately preceding state fiscal year to the current state fiscal

year made in the basic foundation allowance minus $20.00) times

(the difference between the district's foundation allowance for the

immediately preceding state fiscal year and the sum of $7,108.00

plus the total dollar amount of all adjustments made from 2006-2007

to the immediately preceding state fiscal year in the lowest

foundation allowance among all districts) divided by the difference

between the basic foundation allowance for the current state fiscal

year and the sum of $7,108.00 plus the total dollar amount of all

adjustments made from 2006-2007 to the immediately preceding state

fiscal year in the lowest foundation allowance among all

districts]. For 2009-2010, for a district that had a foundation

allowance for the immediately preceding state fiscal year that was

at least equal to the sum of $7,108.00 plus the total dollar amount

of all adjustments made from 2006-2007 to the immediately preceding

state fiscal year in the lowest foundation allowance among all

districts, but less than the basic foundation allowance for the

immediately preceding state fiscal year, the district shall receive

a foundation allowance in an amount equal to the district's

foundation allowance for the immediately preceding state fiscal

year. However, the foundation allowance for a district that had

less than the basic foundation allowance for the immediately

preceding state fiscal year shall not exceed the basic foundation

allowance for the current state fiscal year.

(b) Except as otherwise provided in this subsection, for a

district that in the immediately preceding state fiscal year had a

foundation allowance in an amount at least equal to the amount of

the basic foundation allowance for the immediately preceding state

fiscal year, the district shall receive a foundation allowance in

an amount equal to the sum of the district's foundation allowance

for the immediately preceding state fiscal year plus the dollar

amount of the adjustment from the immediately preceding state

fiscal year to the current state fiscal year in the basic

foundation allowance.

foundation allowance greater than $6,500.00, the district's

foundation allowance is an amount equal to the sum of the

district's foundation allowance for the immediately preceding state

fiscal year plus the lesser of the increase in the basic foundation

allowance for the current state fiscal year, as compared to the

immediately preceding state fiscal year, or the product of the

district's foundation allowance for the immediately preceding state

fiscal year times the percentage increase in the United States

consumer price index in the calendar year ending in the immediately

preceding fiscal year as reported by the May revenue estimating

conference conducted under section 367b of the management and

budget act, 1984 PA 431, MCL 18.1367b.

(d) For a district that has a foundation allowance that is not

a whole dollar amount, the district's foundation allowance shall be

rounded up to the nearest whole dollar.

(e) For a district that received a payment under section 22c

as that section was in effect for 2001-2002, the district's 2001-

2002 foundation allowance shall be considered to have been an

amount equal to the sum of the district's actual 2001-2002

foundation allowance as otherwise calculated under this section

plus the per pupil amount of the district's equity payment for

2001-2002 under section 22c as that section was in effect for 2001-

2002.

(f) For a district that received a payment under section 22c

as that section was in effect for 2006-2007, the district's 2006-

2007 foundation allowance shall be considered to have been an

amount equal to the sum of the district's actual 2006-2007

foundation allowance as otherwise calculated under this section

plus the per pupil amount of the district's equity payment for

2006-2007 under section 22c as that section was in effect for 2006-

2007.

(4) Except as otherwise provided in this subsection, the state

portion of a district's foundation allowance is an amount equal to

the district's foundation allowance or the basic foundation

allowance for the current state fiscal year, whichever is less,

minus the difference between the sum of the product of the taxable

value per membership pupil of all property in the district that is

nonexempt property times the district's certified mills and, for a

district with certified mills exceeding 12, the product of the

taxable value per membership pupil of property in the district that

is commercial personal property times the certified mills minus 12

mills and the quotient of the ad valorem property tax revenue of

the district captured under tax increment financing acts divided by

the district's membership excluding special education pupils. For a

district described in subsection (3)(c), the state portion of the

district's foundation allowance is an amount equal to $6,962.00

plus the difference between the district's foundation allowance for

the current state fiscal year and the district's foundation

allowance for 1998-99, minus the difference between the sum of the

product of the taxable value per membership pupil of all property

in the district that is nonexempt property times the district's

certified mills and, for a district with certified mills exceeding

12, the product of the taxable value per membership pupil of

property in the district that is commercial personal property times

the certified mills minus 12 mills and the quotient of the ad

valorem property tax revenue of the district captured under tax

increment financing acts divided by the district's membership

excluding special education pupils. For a district that has a

millage reduction required under section 31 of article IX of the

state constitution of 1963, the state portion of the district's

foundation allowance shall be calculated as if that reduction did

not occur. For the purposes of state law, federal funding awarded

to this state under title XIV of the American recovery and

reinvestment act of 2009, Public Law 111-5, that is appropriated

under section 11 and allocated under section 22b, is considered to

be part of the state portion of a district's foundation allowance

and is considered to be part of the total state school aid paid to

a public school academy.

(5) The allocation calculated under this section for a pupil

shall be based on the foundation allowance of the pupil's district

of residence. However, for a pupil enrolled in a district other

than the pupil's district of residence, if the foundation allowance

of the pupil's district of residence has been adjusted pursuant to

subsection (19), the allocation calculated under this section shall

not include the adjustment described in subsection (19). For a

pupil enrolled pursuant to section 105 or 105c in a district other

than the pupil's district of residence, the allocation calculated

under this section shall be based on the lesser of the foundation

allowance of the pupil's district of residence or the foundation

allowance of the educating district. For a pupil in membership in a

K-5, K-6, or K-8 district who is enrolled in another district in a

grade not offered by the pupil's district of residence, the

allocation calculated under this section shall be based on the

foundation allowance of the educating district if the educating

district's foundation allowance is greater than the foundation

allowance of the pupil's district of residence. The calculation

under this subsection shall take into account a district's per

pupil allocation under section 20j(2).

(6) Subject to subsection (7) and except as otherwise provided

in this subsection, for pupils in membership, other than special

education pupils, in a public school academy or a university

school, the allocation calculated under this section is an amount

per membership pupil other than special education pupils in the

public school academy or university school equal to the sum of the

local school operating revenue per membership pupil other than

special education pupils for the district in which the public

school academy or university school is located and the state

portion of that district's foundation allowance, or the state

maximum public school academy allocation, whichever is less.

However, for a public school academy that is authorized under a

contract issued by the district in which the public school academy

is located, for pupils in membership, other than special education

pupils, in the public school academy, the allocation calculated

under this section is an amount per membership pupil other than

special education pupils in the public school academy equal to the

sum of the local school operating revenue per membership pupil

other than special education pupils for that district and the state

portion of that district's foundation allowance. Notwithstanding

section 101, for a public school academy that begins operations

after the pupil membership count day, the amount per membership

pupil calculated under this subsection shall be adjusted by

multiplying that amount per membership pupil by the number of hours

of pupil instruction provided by the public school academy after it

begins operations, as determined by the department, divided by the

minimum number of hours of pupil instruction required under section

101(3). The result of this calculation shall not exceed the amount

per membership pupil otherwise calculated under this subsection.

(7) If more than 25% of the pupils residing within a district

are in membership in 1 or more public school academies located in

the district, then the amount per membership pupil calculated under

this section for a public school academy located in the district

shall be reduced by an amount equal to the difference between the

sum of the product of the taxable value per membership pupil of all

property in the district that is nonexempt property times the

district's certified mills and, for a district with certified mills

exceeding 12, the product of the taxable value per membership pupil

of property in the district that is commercial personal property

times the certified mills minus 12 mills and the quotient of the ad

valorem property tax revenue of the district captured under tax

increment financing acts divided by the district's membership

excluding special education pupils, in the school fiscal year

ending in the current state fiscal year, calculated as if the

resident pupils in membership in 1 or more public school academies

located in the district were in membership in the district. In

order to receive state school aid under this act, a district

described in this subsection shall pay to the authorizing body that

is the fiscal agent for a public school academy located in the

district for forwarding to the public school academy an amount

equal to that local school operating revenue per membership pupil

for each resident pupil in membership other than special education

pupils in the public school academy, as determined by the

department.

(8) If a district does not receive an amount calculated under

subsection (9); if the number of mills the district may levy on a

principal residence, qualified agricultural property, qualified

forest property, industrial personal property, and commercial

personal property under section 1211 of the revised school code,

MCL 380.1211, is 0.5 mills or less; and if the district elects not

to levy those mills, the district instead shall receive a separate

supplemental amount calculated under this subsection in an amount

equal to the amount the district would have received had it levied

those mills, as determined by the department of treasury. A

district shall not receive a separate supplemental amount

calculated under this subsection for a fiscal year unless in the

calendar year ending in the fiscal year the district levies the

district's certified mills on property that is nonexempt property.

(9) For a district that had combined state and local revenue

per membership pupil in the 1993-94 state fiscal year of more than

$6,500.00 and that had fewer than 350 pupils in membership, if the

district elects not to reduce the number of mills from which a

principal residence, qualified agricultural property, qualified

forest property, industrial personal property, and commercial

personal property are exempt and not to levy school operating taxes

on a principal residence, qualified agricultural property,

qualified forest property, industrial personal property, and

commercial personal property as provided in section 1211 of the

revised school code, MCL 380.1211, and not to levy school operating

taxes on all property as provided in section 1211(2) of the revised

school code, MCL 380.1211, there is calculated under this

subsection for 1994-95 and each succeeding fiscal year a separate

supplemental amount in an amount equal to the amount the district

would have received per membership pupil had it levied school

operating taxes on a principal residence, qualified agricultural

property, qualified forest property, industrial personal property,

and commercial personal property at the rate authorized for the

district under section 1211 of the revised school code, MCL

380.1211, and levied school operating taxes on all property at the

rate authorized for the district under section 1211(2) of the

revised school code, MCL 380.1211, as determined by the department

of treasury. If in the calendar year ending in the fiscal year a

district does not levy the district's certified mills on property

that is nonexempt property, the amount calculated under this

subsection will be reduced by the same percentage as the millage

actually levied compares to the district's certified mills.

(10) Subject to subsection (4), for a district that is formed

or reconfigured after June 1, 2002 by consolidation of 2 or more

districts or by annexation, the resulting district's foundation

allowance under this section beginning after the effective date of

the consolidation or annexation shall be the average of the

foundation allowances of each of the original or affected

districts, calculated as provided in this section, weighted as to

the percentage of pupils in total membership in the resulting

district who reside in the geographic area of each of the original

or affected districts. The calculation under this subsection shall

take into account a district's per pupil allocation under section

20j(2).

(11) Each fraction used in making calculations under this

section shall be rounded to the fourth decimal place and the dollar

amount of an increase in the basic foundation allowance shall be

rounded to the nearest whole dollar.

(12) State payments related to payment of the foundation

allowance for a special education pupil are not calculated under

this section but are instead calculated under section 51a.

(13) To assist the legislature in determining the basic

foundation allowance for the subsequent state fiscal year, each

revenue estimating conference conducted under section 367b of the

management and budget act, 1984 PA 431, MCL 18.1367b, shall

calculate a pupil membership factor, a revenue adjustment factor,

and an index as follows:

(a) The pupil membership factor shall be computed by dividing

the estimated membership in the school year ending in the current

state fiscal year, excluding intermediate district membership, by

the estimated membership for the school year ending in the

subsequent state fiscal year, excluding intermediate district

membership. If a consensus membership factor is not determined at

the revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

(b) The revenue adjustment factor shall be computed by

dividing the sum of the estimated total state school aid fund

revenue for the subsequent state fiscal year plus the estimated

total state school aid fund revenue for the current state fiscal

year, adjusted for any change in the rate or base of a tax the

proceeds of which are deposited in that fund and excluding money

transferred into that fund from the countercyclical budget and

economic stabilization fund under the management and budget act,

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

total school aid fund revenue for the current state fiscal year

plus the estimated total state school aid fund revenue for the

immediately preceding state fiscal year, adjusted for any change in

the rate or base of a tax the proceeds of which are deposited in

that fund. If a consensus revenue factor is not determined at the

revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

membership factor by the revenue adjustment factor. However, for

2009-2010, the index shall be 1.00. If a consensus index is not

determined at the revenue estimating conference, the principals of

the revenue estimating conference shall report their estimates to

the house and senate subcommittees responsible for school aid

appropriations not later than 7 days after the conclusion of the

revenue conference.

(14) If the principals at the revenue estimating conference

reach a consensus on the index described in subsection (13)(c), the

lowest foundation allowance among all districts for the subsequent

state fiscal year shall be at least the amount of that consensus

index multiplied by the lowest foundation allowance among all

districts for the immediately preceding state fiscal year.

(15) If at the January revenue estimating conference it is

estimated that pupil membership, excluding intermediate district

membership, for the subsequent state fiscal year will be greater

than 101% of the pupil membership, excluding intermediate district

membership, for the current state fiscal year, then it is the

intent of the legislature that the executive budget proposal for

the school aid budget for the subsequent state fiscal year include

a general fund/general purpose allocation sufficient to support the

membership in excess of 101% of the current year pupil membership.

(16) For a district that had combined state and local revenue

per membership pupil in the 1993-94 state fiscal year of more than

$6,500.00, that had fewer than 7 pupils in membership in the 1993-

94 state fiscal year, that has at least 1 child educated in the

district in the current state fiscal year, and that levies the

number of mills of school operating taxes authorized for the

district under section 1211 of the revised school code, MCL

380.1211, a minimum amount of combined state and local revenue

shall be calculated for the district as provided under this

subsection. The minimum amount of combined state and local revenue

for 1999-2000 shall be $67,000.00 plus the district's additional

expenses to educate pupils in grades 9 to 12 educated in other

districts as determined and allowed by the department. The minimum

amount of combined state and local revenue under this subsection,

before adding the additional expenses, shall increase each fiscal

year by the same percentage increase as the percentage increase in

the basic foundation allowance from the immediately preceding

fiscal year to the current fiscal year. The state portion of the

minimum amount of combined state and local revenue under this

subsection shall be calculated by subtracting from the minimum

amount of combined state and local revenue under this subsection

the sum of the district's local school operating revenue and an

amount equal to the product of the sum of the state portion of the

district's foundation allowance plus the amount calculated under

section 20j times the district's membership. As used in this

subsection, "additional expenses" means the district's expenses for

tuition or fees, not to exceed the basic foundation allowance for

the current state fiscal year, plus a room and board stipend not to

exceed $10.00 per school day for each pupil in grades 9 to 12

educated in another district, as approved by the department.

(17) For a district in which 7.75 mills levied in 1992 for

school operating purposes in the 1992-93 school year were not

renewed in 1993 for school operating purposes in the 1993-94 school

year, the district's combined state and local revenue per

membership pupil shall be recalculated as if that millage reduction

did not occur and the district's foundation allowance shall be

calculated as if its 1994-95 foundation allowance had been

calculated using that recalculated 1993-94 combined state and local

revenue per membership pupil as a base. A district is not entitled

to any retroactive payments for fiscal years before 2000-2001 due

to this subsection.

(18) For a district in which an industrial facilities

exemption certificate that abated taxes on property with a state

equalized valuation greater than the total state equalized

valuation of the district at the time the certificate was issued or

$700,000,000.00, whichever is greater, was issued under 1974 PA

198, MCL 207.551 to 207.572, before the calculation of the

district's 1994-95 foundation allowance, the district's foundation

allowance for 2002-2003 is an amount equal to the sum of the

district's foundation allowance for 2002-2003, as otherwise

calculated under this section, plus $250.00.

(19) For a district that received a grant under former section

32e for 2001-2002, the district's foundation allowance for 2002-

2003 and each succeeding fiscal year shall be adjusted to be an

amount equal to the sum of the district's foundation allowance, as

otherwise calculated under this section, plus the quotient of 100%

of the amount of the grant award to the district for 2001-2002

under former section 32e divided by the number of pupils in the

district's membership for 2001-2002 who were residents of and

enrolled in the district. Except as otherwise provided in this

subsection, a district qualifying for a foundation allowance

adjustment under this subsection shall use the funds resulting from

this adjustment for at least 1 of grades K to 3 for purposes

allowable under former section 32e as in effect for 2001-2002, and

may also use these funds for an early intervening program described

in subsection (20). For an individual school or schools operated by

a district qualifying for a foundation allowance under this

subsection that have been determined by the department to meet the

adequate yearly progress standards of the federal no child left

behind act of 2001, Public Law 107-110, in both mathematics and

English language arts at all applicable grade levels for all

applicable subgroups, the district may submit to the department an

application for flexibility in using the funds resulting from this

adjustment that are attributable to the pupils in the school or

schools. The application shall identify the affected school or

schools and the affected funds and shall contain a plan for using

the funds for specific purposes identified by the district that are

designed to reduce class size, but that may be different from the

purposes otherwise allowable under this subsection. The department

shall approve the application if the department determines that the

purposes identified in the plan are reasonably designed to reduce

class size. If the department does not act to approve or disapprove

an application within 30 days after it is submitted to the

department, the application is considered to be approved. If an

application for flexibility in using the funds is approved, the

district may use the funds identified in the application for any

purpose identified in the plan.

(20) An early intervening program that uses funds resulting

from the adjustment under subsection (19) shall meet either or both

of the following:

(a) Shall monitor individual pupil learning for pupils in

grades K to 3 and provide specific support or learning strategies

to pupils in grades K to 3 as early as possible in order to reduce

the need for special education placement. The program shall include

literacy and numeracy supports, sensory motor skill development,

behavior supports, instructional consultation for teachers, and the

development of a parent/school learning plan. Specific support or

learning strategies may include support in or out of the general

classroom in areas including reading, writing, math, visual memory,

motor skill development, behavior, or language development. These

would be provided based on an understanding of the individual

child's learning needs.

(b) Shall provide early intervening strategies for pupils in

grades K to 3 using schoolwide systems of academic and behavioral

supports and shall be scientifically research-based. The strategies

to be provided shall include at least pupil performance indicators

based upon response to intervention, instructional consultation for

teachers, and ongoing progress monitoring. A schoolwide system of

academic and behavioral support should be based on a support team

available to the classroom teachers. The members of this team could

include the principal, special education staff, reading teachers,

and other appropriate personnel who would be available to

systematically study the needs of the individual child and work

with the teacher to match instruction to the needs of the

individual child.

(21) For a district that levied 1.9 mills in 1993 to finance

an operating deficit, the district's foundation allowance shall be

calculated as if those mills were included as operating mills in

the calculation of the district's 1994-1995 foundation allowance. A

district is not entitled to any retroactive payments for fiscal

years before 2006-2007 due to this subsection. A district receiving

an adjustment under this subsection shall not receive more than

$800,000.00 for a fiscal year as a result of this adjustment.

(22) For a district that levied 2.23 mills in 1993 to finance

an operating deficit, the district's foundation allowance shall be

calculated as if those mills were included as operating mills in

the calculation of the district's 1994-1995 foundation allowance. A

district is not entitled to any retroactive payments for fiscal

years before 2006-2007 due to this subsection. A district receiving

an adjustment under this subsection shall not receive more than

$500,000.00 for a fiscal year as a result of this adjustment.

(23) Payments to districts, university schools, or public

school academies shall not be made under this section. Rather, the

calculations under this section shall be used to determine the

amount of state payments under section 22b.

(24) If an amendment to section 2 of article VIII of the state

constitution of 1963 allowing state aid to some or all nonpublic

schools is approved by the voters of this state, each foundation

allowance or per pupil payment calculation under this section may

be reduced.

(25) As used in this section:

(a) "Certified mills" means the lesser of 18 mills or the

number of mills of school operating taxes levied by the district in

1993-94.

(b) "Combined state and local revenue" means the aggregate of

the district's state school aid received by or paid on behalf of

the district under this section and the district's local school

operating revenue.

means the district's combined state and local revenue divided by

the district's membership excluding special education pupils.

(d) "Current state fiscal year" means the state fiscal year

for which a particular calculation is made.

(e) "Immediately preceding state fiscal year" means the state

fiscal year immediately preceding the current state fiscal year.

(f) "Local school operating revenue" means school operating

taxes levied under section 1211 of the revised school code, MCL

380.1211.

(g) "Local school operating revenue per membership pupil"

means a district's local school operating revenue divided by the

district's membership excluding special education pupils.

(h) "Maximum public school academy allocation", except as

otherwise provided in this subdivision, means the maximum per-pupil

allocation as calculated by adding the highest per-pupil allocation

among all public school academies for the immediately preceding

state fiscal year plus the difference between twice the dollar

amount of the adjustment from the immediately preceding state

fiscal year to the current state fiscal year made in the basic

foundation allowance and [(the dollar amount of the adjustment from

the immediately preceding state fiscal year to the current state

fiscal year made in the basic foundation allowance minus $20.00)

times (the difference between the highest per-pupil allocation

among all public school academies for the immediately preceding

state fiscal year and the sum of $7,108.00 plus the total dollar

amount of all adjustments made from 2006-2007 to the immediately

preceding state fiscal year in the lowest per-pupil allocation

among all public school academies) divided by the difference

between the basic foundation allowance for the current state fiscal

year and the sum of $7,108.00 plus the total dollar amount of all

adjustments made from 2006-2007 to the immediately preceding state

fiscal year in the lowest per-pupil allocation among all public

school academies]. For 2009-2010, maximum public school academy

allocation means $7,580.00.

(i) "Membership" means the definition of that term under

section 6 as in effect for the particular fiscal year for which a

particular calculation is made.

(j) "Nonexempt property" means property that is not a

principal residence, qualified agricultural property, qualified

forest property, industrial personal property, or commercial

personal property.

(k) "Principal residence", "qualified agricultural property",

"qualified forest property", "industrial personal property", and

"commercial personal property" mean those terms as defined in

section 7dd of the general property tax act, 1893 PA 206, MCL

211.7dd, and section 1211 of the revised school code, MCL 380.1211.

(l) "School operating purposes" means the purposes included in

the operation costs of the district as prescribed in sections 7 and

18.

(m) "School operating taxes" means local ad valorem property

taxes levied under section 1211 of the revised school code, MCL

380.1211, and retained for school operating purposes.

(n) "Tax increment financing acts" means 1975 PA 197, MCL

125.1651 to 125.1681, the tax increment finance authority act, 1980

PA 450, MCL 125.1801 to 125.1830, the local development financing

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

or the corridor improvement authority act, 2005 PA 280, MCL

125.2871 to 125.2899.

(o) "Taxable value per membership pupil" means taxable value,

as certified by the department of treasury, for the calendar year

ending in the current state fiscal year divided by the district's

membership excluding special education pupils for the school year

ending in the current state fiscal year.

Sec. 94a. (1) There is created within the office of the state

budget director in the department of management and budget the

center for educational performance and information. The center

shall do all of the following:

(a) Coordinate the collection of all data required by state

and federal law from all entities receiving funds under this act.

(b) Collect data in the most efficient manner possible in

order to reduce the administrative burden on reporting entities.

reliability of the data and the collection process.

(d) Develop state and model local data collection policies,

including, but not limited to, policies that ensure the privacy of

individual student data. State privacy policies shall ensure that

student social security numbers are not released to the public for

any purpose.

(e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

(f) Provide reports to the citizens of this state to allow

them to assess allocation of resources and the return on their

investment in the education system of this state.

(g) Assist all entities receiving funds under this act in

complying with audits performed according to generally accepted

accounting procedures.

(h) To the extent funding is available, coordinate the

electronic exchange of student records using a unique

identification numbering system among entities receiving funds

under this act and postsecondary institutions for students

participating in public education programs from preschool through

postsecondary education.

(i) Work toward the development and implementation of a system

that links individual pupil performance data, using the unique

student identifier for each pupil, with each of the pupil's

individual teachers and school principals. If necessary to

accomplish this, the center shall develop a unique identification

system for teachers and school principals.

(j) ~~(i)~~ Other functions as assigned by the state budget

director.

(2) Each state department, officer, or agency that collects

information from districts or intermediate districts as required

under state or federal law shall make arrangements with the center,

and with the districts or intermediate districts, to have the

center collect the information and to provide it to the department,

officer, or agency as necessary. To the extent that it does not

cause financial hardship, the center shall arrange to collect the

information in a manner that allows electronic submission of the

information to the center. Each affected state department, officer,

or agency shall provide the center with any details necessary for

the center to collect information as provided under this

subsection. This subsection does not apply to information collected

by the department of treasury under the uniform budgeting and

accounting act, 1968 PA 2, MCL 141.421 to 141.440a; the revised

municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the

school bond qualification, approval, and loan act, 2005 PA 92, MCL

388.1921 to 388.1939; or section 1351a of the revised school code,

MCL 380.1351a.

(3) The state budget director shall appoint a CEPI advisory

committee, consisting of the following members:

(a) One representative from the house fiscal agency.

(b) One representative from the senate fiscal agency.

director.

(d) One representative from the state education agency.

(e) One representative each from the department of energy,

labor, and economic growth and the department of treasury.

(f) Three representatives from intermediate school districts.

(g) One representative from each of the following educational

organizations:

(i) Michigan association of school boards.

(ii) Michigan association of school administrators.

(iii) Michigan school business officials.

(h) One representative representing private sector firms

responsible for auditing school records.

(i) Other representatives as the state budget director

determines are necessary.

(4) The CEPI advisory committee appointed under subsection (3)

shall provide advice to the director of the center regarding the

management of the center's data collection activities, including,

but not limited to:

(a) Determining what data is necessary to collect and maintain

in order to perform the center's functions in the most efficient

manner possible.

(b) Defining the roles of all stakeholders in the data

collection system.

collection of data.

(d) Establishing and maintaining data definitions, data

transmission protocols, and system specifications and procedures

for the efficient and accurate transmission and collection of data.

(e) Establishing and maintaining a process for ensuring the

reasonable accuracy of the data.

(f) Establishing and maintaining state and model local

policies related to data collection, including, but not limited to,

privacy policies related to individual student data.

(g) Ensuring the data is made available to state and local

policymakers and citizens of this state in the most useful format

possible.

(h) Other matters as determined by the state budget director

or the director of the center.

(5) The center may enter into any interlocal agreements

necessary to fulfill its functions.

(6) From the general fund appropriation in section 11, there

is allocated an amount not to exceed $3,486,100.00 for 2009-2010 to

the department of management and budget to support the operations

of the center and the development and implementation of a

comprehensive longitudinal data collection management and reporting

system that includes student-level data. The center shall cooperate

with the state education agency to ensure that this state is in

compliance with federal law and is maximizing opportunities for

increased federal funding to improve education in this state. To

the extent that funding under this section allows, the center shall

collect data necessary to maximize federal funding under the

American recovery and reinvestment act of 2009, Public Law 111-5,

and other federal statutes, including data necessary to implement a

P-20 longitudinal data system. In addition, from the federal funds

appropriated in section 11 for 2009-2010, there is allocated the

amount necessary, estimated at $2,793,200.00, in order to fulfill

federal reporting requirements.

(7) From the federal funds allocated in subsection (6), there

is allocated for 2009-2010 an amount not to exceed $750,000.00

funded from the competitive grants of DED-OESE, title II,

educational technology funds for the purposes of this subsection.

Not later than November 30, 2008, the department shall award a

single grant to an eligible partnership that includes an

intermediate district with at least 1 high-need local school

district and the center.

(8) The center and the department shall work cooperatively to

develop a cost allocation plan that pays for center expenses from

the appropriate federal fund revenues.

(9) Funds allocated under this section that are not expended

in the fiscal year in which they were allocated may be carried

forward to a subsequent fiscal year.

(10) The center may bill departments as necessary in order to

fulfill reporting requirements of state and federal law. The center

may also enter into agreements to supply custom data, analysis, and

reporting to other principal executive departments, state agencies,

local units of government, and other individuals and organizations.

The center may receive and expend funds in addition to those

authorized in subsection (6) to cover the costs associated with

salaries, benefits, supplies, materials, and equipment necessary to

provide such data, analysis, and reporting services.

(11) As used in this section:

(a) "DED-OESE" means the United States department of education

office of elementary and secondary education.

(b) "High-need local school district" means a local

educational agency as defined in the enhancing education through

technology part of the no child left behind act of 2001, Public Law

107-110.