June 11, 2009, Introduced by Senator CASSIS 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 3, 6, 8b, 18, 18b, 18c, 20, 31a, 51a, 101,
169, and 169b (MCL 388.1603, 388.1606, 388.1608b, 388.1618,
388.1618b, 388.1618c, 388.1620, 388.1631a, 388.1651a, 388.1701,
388.1769, and 388.1769b), sections 3, 6, 18, 18b, 31a, and 51a as
amended by 2008 PA 268, section 8b as amended by 2007 PA 92,
section 18c as added by 2000 PA 297, section 20 as amended by 2008
PA 561, section 101 as amended by 2006 PA 342, and sections 169 and
169b as added by 1996 PA 300, and by adding section 9.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) "Average daily attendance", for the purposes of
complying with federal law, means 92% of the pupils counted in
membership on the pupil membership count day, as defined in section
6(7).
(2) "Board" means the governing body of a district or public
school academy.
(3) "Center" means the center for educational performance and
information created in section 94a.
(4) "Cooperative education program" means a written voluntary
agreement between and among districts to provide certain
educational programs for pupils in certain groups of districts. The
written agreement shall be approved by all affected districts at
least annually and shall specify the educational programs to be
provided and the estimated number of pupils from each district who
will participate in the educational programs.
(5) "Department", except in section 107, means the department
of education.
(6) "District" means a local school district established under
the revised school code or, except in sections 6(4), 6(6), 11n, 13,
20, 22a, 23, 29, 31a, 99j, 99k, 51a(15), 105, and 105c, a public
school academy or neighborhood public school. Except in sections
6(4), 6(6), 11n, 13, 20, 22a, 29, 99j, 99k, 51a(15), 105, and 105c,
district also includes a university school.
(7) "District of residence", except as otherwise provided in
this subsection, means the district in which a pupil's custodial
parent or parents or legal guardian resides. For a pupil described
in section 24b, the pupil's district of residence is the district
in which the pupil enrolls under that section. For a pupil
described in section 6(4)(d), the pupil's district of residence
shall be considered to be the district or intermediate district in
which the pupil is counted in membership under that section. For a
pupil under court jurisdiction who is placed outside the district
in which the pupil's custodial parent or parents or legal guardian
resides, the pupil's district of residence shall be considered to
be the educating district or educating intermediate district.
(8) "District superintendent" means the superintendent of a
district, the chief administrator of a public school academy or
neighborhood public school, or the chief administrator of a
university school.
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, neighborhood public
school, 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. For the purposes of
this section and section 6a, for a neighborhood public school that
is a cyber school and is in compliance with section 538 of the
revised school code, MCL 380.538, a pupil's participation in the
cyber school's educational program is considered regular daily
attendance. 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, neighborhood public school, 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.
(c) A special education pupil educated by the intermediate
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 or
neighborhood public school shall be counted in membership in the
public school academy or neighborhood public school.
(i)
For a new district, university school, or public school
academy, or neighborhood public school 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 or the sponsoring body for a neighborhood public school,
then, in the first school year in which pupils are counted in
membership on the pupil membership count day in the public school
academy or neighborhood public school, 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 or neighborhood public
school 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, neighborhood public
school, 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 to be counted in membership shall be not less than 5
years of age on December 1 and less than 20 years of age on
September 1 of the school year except a special education pupil who
is enrolled and receiving instruction in a special education
program or service approved by the department and not having a high
school diploma 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 or neighborhood public school 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 or neighborhood public school 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 or
neighborhood public school 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 or neighborhood public school
provides instruction for at least 1/2 of the class hours specified
in subdivision (q), the public school academy or neighborhood
public school 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 or neighborhood public school 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 or neighborhood public school
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 or
neighborhood public school.
(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 2009-2010, full-time equated
memberships for pupils enrolled in developmental kindergarten,
prekindergarten, or a similar class intended to be the first of 2
school years before a pupil enters grade 1 shall be determined by
dividing the number of class hours scheduled and provided per year
per kindergarten pupil by the number used for determining full-time
equated memberships for pupils in grades 1 to 12. For 2010-2011,
full-time equated memberships for pupils enrolled 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
60% of the number used for determining full-time equated
memberships for pupils in grades 1 to 12. Beginning in 2011-2012,
full-time equated memberships for pupils enrolled 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
70% of the 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, or neighborhood public school that has pupils enrolled in
a grade level that was not offered by the district, university
school,
or public school academy, or neighborhood public school 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) For 2007-2008 only, 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, or
neighborhood public school that expelled the pupil.
(w) If a pupil was enrolled in a public school academy or
neighborhood public school on the pupil membership count day, if
the public school academy's contract with its authorizing body or
the neighborhood public school's performance contract issued by its
sponsoring body is revoked, or if the public school academy or
neighborhood public school 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 or neighborhood public school
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 or neighborhood public school
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 or neighborhood
public school 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.
(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.
(c) A pupil enrolled in a public school academy, neighborhood
public school, or university 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 that is not a first class district
educates pupils who reside in a first class district and if the
primary instructional site for those pupils is located within the
boundaries of the first class district, the educating district must
have the approval of the first class district to count those pupils
in membership. As used in this subsection, "first class district"
means a district organized as a school district of the first class
under the revised school code.
(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, or neighborhood public school 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, or neighborhood
public school 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) "Neighborhood public school" means a neighborhood public
school established under the revised school code.
(10) (9)
"Rule" means a rule
promulgated pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(11) (10)
"The revised school code"
means 1976 PA 451, MCL
380.1 to 380.1852.
(12) (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.
(13) (12)
"School fiscal year"
means a fiscal year that
commences July 1 and continues through June 30.
(14) (13)
"State board" means the
state board of education.
(15) (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.
(16) (15)
"Supplemental count day"
means the day on which the
supplemental pupil count is conducted under section 6a.
(17) (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.
(18) (17)
"State school aid fund"
means the state school aid
fund established in section 11 of article IX of the state
constitution of 1963.
(19) (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.
(20) (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.
(21) (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.
(22) (21)
"University school" means
an instructional program
operated by a public university under section 23 that meets the
requirements of section 23.
Sec. 8b. (1) The department shall assign a district code to
each public school academy that is authorized under the revised
school code and is eligible to receive funding under this act
within 30 days after a contract is submitted to the department by
the authorizing body of a public school academy. The department
shall assign a district code to each neighborhood public school
that is granted a performance contract under the revised school
code and is eligible to receive funding under this act within 30
days after a performance contract is submitted to the department by
the sponsoring body of a neighborhood public school.
(2) If the department does not assign a district code to a
public school academy or neighborhood public school within the 30-
day period described in subsection (1), the district code the
department shall use to make payments under this act to the newly
authorized public school academy or neighborhood public school
shall be a number that is equivalent to the sum of the last
district code assigned to a public school academy or neighborhood
public school located in the same county as the newly authorized
public school academy or neighborhood public school plus 1.
However, if there is not an existing public school academy or
neighborhood public school located in the same county as the newly
authorized public school academy or neighborhood public school,
then the district code the department shall use to make payments
under this act to the newly authorized public school academy or
neighborhood public school shall be a 5-digit number that has the
county code in which the public school academy or neighborhood
public school is located as its first 2 digits, 9 as its third
digit, 0 as its fourth digit, and 1 as its fifth digit. If the
number of public school academies and neighborhood public schools
in a county grows to exceed 100, the third digit in this 5-digit
number shall then be 8 for the public school academies or
neighborhood public schools in excess of 100.
Sec. 9. Any provision of this act or of a rule promulgated
under this act is subject to waiver by the superintendent under
section 538 of the revised school code, MCL 380.538, for a
neighborhood public school that is a cyber school.
Sec. 18. (1) Except as provided in another section of this
act, each district or other entity shall apply the money received
by the district or entity under this act to salaries and other
compensation of teachers and other employees, tuition,
transportation, lighting, heating, ventilation, water service, the
purchase of textbooks which are designated by the board to be used
in the schools under the board's charge, other supplies, and any
other school operating expenditures defined in section 7. However,
not more than 20% of the total amount received by a district under
article 2 or intermediate district under article 8 may be
transferred by the board to either the capital projects fund or to
the debt retirement fund for debt service. The money shall not be
applied or taken for a purpose other than as provided in this
section. The department shall determine the reasonableness of
expenditures and may withhold from a recipient of funds under this
act the apportionment otherwise due upon a violation by the
recipient.
(2) Within 30 days after a board or intermediate board adopts
its annual operating budget for the following school fiscal year,
or after a board or intermediate board adopts a subsequent revision
to that budget, the district or intermediate district shall make
the budget and subsequent budget revisions available on its
website, or a district may make the information available on its
intermediate district's website, in a form and manner prescribed by
the department.
(3) For the purpose of determining the reasonableness of
expenditures and whether a violation of this act has occurred, the
department shall require that each district and intermediate
district have an audit of the district's or intermediate district's
financial and pupil accounting records conducted at least annually
at the expense of the district or intermediate district, as
applicable, by a certified public accountant or by the intermediate
district superintendent, as may be required by the department, or
in the case of a district of the first class by a certified public
accountant, the intermediate superintendent, or the auditor general
of the city. An intermediate district's annual financial audit
shall be accompanied by the intermediate district's pupil
accounting procedures report. A district's or intermediate
district's annual financial audit shall include an analysis of the
financial and pupil accounting data used as the basis for
distribution of state school aid. The pupil accounting records and
reports, audits, and management letters are subject to requirements
established in the auditing and accounting manuals approved and
published by the department. Except as otherwise provided in this
subsection, a district shall file the annual financial audit
reports with the intermediate district not later than 120 days
after the end of each school fiscal year and the intermediate
district shall forward the annual financial audit reports for its
constituent districts and for the intermediate district, and the
pupil accounting procedures report for the pupil membership count
day and supplemental count day, to the department not later than
November 15 of each year. The annual financial audit reports and
pupil accounting procedures reports shall be available to the
public in compliance with the freedom of information act, 1976 PA
442, MCL 15.231 to 15.246. Not later than December 31 of each year,
the department shall notify the state budget director and the
legislative appropriations subcommittees responsible for review of
the school aid budget of districts and intermediate districts that
have not filed an annual financial audit and pupil accounting
procedures report required under this section for the school year
ending in the immediately preceding fiscal year.
(4) By November 15 of each year, each district and
intermediate district shall submit to the center, in a manner
prescribed by the center, annual comprehensive financial data
consistent with accounting manuals and charts of accounts approved
and published by the department. For an intermediate district, the
report shall also contain the website address where the department
can access the report required under section 620 of the revised
school code, MCL 380.620. The department shall ensure that the
prescribed Michigan public school accounting manual chart of
accounts includes standard conventions to distinguish expenditures
by allowable fund function and object. The functions shall include
at minimum categories for instruction, pupil support, instructional
staff support, general administration, school administration,
business administration, transportation, facilities operation and
maintenance, facilities acquisition, and debt service; and shall
include object classifications of salary, benefits, including
categories for active employee health expenditures, purchased
services, supplies, capital outlay, and other. Districts shall
report the required level of detail consistent with the manual as
part of the comprehensive annual financial report. The department
shall make this information available online to districts and
intermediate districts, and shall include per-pupil amounts spent
on instruction and instructional support service functions, and
indicate how much of those costs were attributable to salaries.
Districts and intermediate districts shall include a link on their
websites to the website where the department posts this
information.
(5) By September 30 of each year, each district and
intermediate district shall file with the department the special
education actual cost report, known as "SE-4096", on a form and in
the manner prescribed by the department.
(6) By October 7 of each year, each district and intermediate
district shall file with the center the transportation expenditure
report, known as "SE-4094", on a form and in the manner prescribed
by the center.
(7) The department shall review its pupil accounting and pupil
auditing manuals at least annually and shall periodically update
those manuals to reflect changes in this act. As part of its annual
review process for 2007, not later than December 31, 2007, the
department shall revise the pupil auditing manual to establish
standardized procedures and processes for auditing pupil exit
statuses and other pupil data used in calculating annual graduation
and pupil dropout rates.
(8) If a district that is a public school academy or
neighborhood public school purchases property using money received
under this act, the public school academy or neighborhood public
school shall retain ownership of the property unless the public
school academy or neighborhood public school sells the property at
fair market value.
(9) If a district or intermediate district does not comply
with subsection (3), (4), (5), or (6), the department shall
withhold all state school aid due to the district or intermediate
district under this act, beginning with the next payment due to the
district or intermediate district, until the district or
intermediate district complies with subsections (3), (4), (5), and
(6). If the district or intermediate district does not comply with
subsections (3), (4), (5), and (6) by the end of the fiscal year,
the district or intermediate district forfeits the amount withheld.
Sec. 18b. (1) Property of a public school academy or
neighborhood public school that was acquired substantially with
funds appropriated under this act shall be transferred to this
state by the public school academy corporation or neighborhood
public school corporation if any of the following occur:
(a) The public school academy or neighborhood public school
has been ineligible to receive funding under this act for 18
consecutive months.
(b) The public school academy's contract or neighborhood
public school's performance contract has been revoked or terminated
for any reason.
(c) The public school academy's contract has not been reissued
by the authorizing body or the neighborhood public school's
performance contract has not been reissued by the sponsoring body.
(2) Property required to be transferred to this state under
this section includes title to all real and personal property,
interests in real or personal property, and other assets owned by
the public school academy corporation or neighborhood public school
corporation that were substantially acquired with funds
appropriated under this act.
(3) The state treasurer, or his or her designee, is authorized
to dispose of property transferred to this state under this
section. Except as otherwise provided in this section, the state
treasurer shall deposit in the state school aid fund any money
included in that property and the net proceeds from the sale of the
property or interests in property, after payment by the state
treasurer of any public school academy or neighborhood public
school debt secured by the property or interest in property.
(4) This section does not impose any liability on this state,
any agency of this state, or an authorizing body for any debt
incurred by a public school academy or neighborhood public school.
(5) As used in this section and section 18c, "authorizing
body" means an authorizing body defined under section 501 or 1311b
of the revised school code, MCL 380.501 and 380.1311b, and
"sponsoring body" means a sponsoring body defined under section 531
of the revised school code, MCL 380.531.
Sec. 18c. Any contract, mortgage, loan, or other instrument of
indebtedness entered into by a public school academy or
neighborhood public school receiving funds under this act and a
third party does not constitute an obligation, either general,
special, or moral, of this state or of an authorizing body or
sponsoring body. The full faith and credit or the taxing power of
this state or any agency of this state, or the full faith and
credit of an authorizing body or sponsoring body, shall not be
pledged for the payment of any contract, mortgage, loan, or other
instrument of indebtedness entered into by a public school academy
or neighborhood public school.
Sec.
20. (1) For 2007-2008, the basic foundation allowance is
$8,433.00.
For 2008-2009, 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 2007-2008, for a district that had a foundation
allowance for 2006-2007, including any adjustment under subdivision
(f), that was at least equal to $7,108.00 but less than $8,385.00,
the district shall receive a foundation allowance in an amount
equal to the sum of the district's foundation allowance for 2006-
2007 plus the difference between $96.00 and [($48.00 minus $20.00)
times (the difference between the district's foundation allowance
for 2006-2007, including any adjustment under subdivision (f), and
$7,108.00) divided by $1,325.00]. Beginning in 2008-2009, 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]. 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, beginning
in 2008-2009, 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.
(c) For a district that in the 1994-95 state fiscal year had a
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.
(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)
For 2007-2008, subject to subsection (7) and section
22b(3)
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 $7,475.00, whichever is less. Beginning in
2008-2009, subject to subsection (7) and section 22b(3) and except
as otherwise provided in this subsection, for pupils in membership,
other than special education pupils, in a public school academy, a
neighborhood public school, 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,
neighborhood public school, 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, neighborhood public school, or university school is
located and the state portion of that district's foundation
allowance, or the state maximum public school academy or
neighborhood public school allocation, whichever is less.
Notwithstanding section 101, for a public school academy or
neighborhood public school 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 or neighborhood public school
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 or
neighborhood public schools located in the district, then the
amount per membership pupil calculated under this section for a
public school academy or neighborhood public school 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 or neighborhood public schools 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 or neighborhood public
school located in the district for forwarding to the public school
academy or neighborhood public school 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 or neighborhood public school, 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.
(c) The index shall be calculated by multiplying the pupil
membership factor by the revenue adjustment factor. However, for
2008-2009, 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, or neighborhood public schools 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.
(c) "Combined state and local revenue per membership pupil"
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 or neighborhood public
school allocation" means the maximum per-pupil allocation as
calculated by adding the highest per-pupil allocation among all
public school academies or neighborhood public schools 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 or neighborhood public
schools 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
or neighborhood public schools) 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 or neighborhood public schools].
(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. 31a. (1) From the state school aid fund money
appropriated in section 11, there is allocated for 2008-2009 an
amount not to exceed $320,350,000.00 for payments to eligible
districts, and
eligible public school academies,
and eligible
neighborhood public schools under this section. Subject to
subsection (14), the amount of the additional allowance under this
section, other than funding under subsection (6) or (7), shall be
based on the number of actual pupils in membership in the district,
or
public school academy, or neighborhood public school who met the
income eligibility criteria for free breakfast, lunch, or milk in
the immediately preceding state fiscal year, as determined under
the Richard B. Russell national school lunch act, 42 USC 1751 to
1769i, and reported to the department by October 31 of the
immediately preceding fiscal year and adjusted not later than
December 31 of the immediately preceding fiscal year. However, for
a public school academy or neighborhood public school that began
operations as a public school academy or neighborhood public school
after the pupil membership count day of the immediately preceding
school year, the basis for the additional allowance under this
section shall be the number of actual pupils in membership in the
public school academy or neighborhood public school who met the
income eligibility criteria for free breakfast, lunch, or milk in
the current state fiscal year, as determined under the Richard B.
Russell national school lunch act.
(2) To be eligible to receive funding under this section,
other
than funding under subsection (6) or (7), a district, or
public school academy, or neighborhood public school that has not
been previously determined to be eligible shall apply to the
department, in a form and manner prescribed by the department, and
a
district, or public school academy, or neighborhood public school
must meet all of the following:
(a)
The sum of the district's, or public school academy's, or
neighborhood public school's combined state and local revenue per
membership pupil in the current state fiscal year, as calculated
under section 20, plus the amount of the district's per pupil
allocation under section 20j(2), is less than or equal to the basic
foundation allowance under section 20 for the current state fiscal
year.
(b)
The district, or public school academy, or neighborhood
public school agrees to use the funding only for purposes allowed
under this section and to comply with the program and
accountability requirements under this section.
(3) Except as otherwise provided in this subsection, an
eligible
district, or eligible public school academy, or eligible
neighborhood public school shall receive under this section for
each
membership pupil in the district, or public school academy, or
neighborhood public school who met the income eligibility criteria
for free breakfast, lunch, or milk, as determined under the Richard
B. Russell national school lunch act and as reported to the
department by October 31 of the immediately preceding fiscal year
and adjusted not later than December 31 of the immediately
preceding fiscal year, an amount per pupil equal to 11.5% of the
sum of the district's foundation allowance or public school
academy's or neighborhood public schools per pupil amount
calculated under section 20, plus the amount of the district's per
pupil allocation under section 20j(2), not to exceed the basic
foundation allowance under section 20 for the current state fiscal
year, or of the public school academy's or neighborhood public
school's per membership pupil amount calculated under section 20
for the current state fiscal year. A public school academy or
neighborhood public school that began operations as a public school
academy or neighborhood public school after the pupil membership
count day of the immediately preceding school year shall receive
under this section for each membership pupil in the public school
academy or neighborhood public school who met the income
eligibility criteria for free breakfast, lunch, or milk, as
determined under the Richard B. Russell national school lunch act
and as reported to the department by October 31 of the current
fiscal year and adjusted not later than December 31 of the current
fiscal year, an amount per pupil equal to 11.5% of the public
school academy's or neighborhood public school's per membership
pupil amount calculated under section 20 for the current state
fiscal year.
(4) Except as otherwise provided in this section, a district,
or
public school academy, or neighborhood public school receiving
funding under this section shall use that money only to provide
instructional programs and direct noninstructional services,
including, but not limited to, medical or counseling services, for
at-risk pupils; for school health clinics; and for the purposes of
subsection (5), (6), or (7). In addition, a district that is a
school
district of the first class or a district, or public school
academy, or neighborhood public school in which at least 50% of the
pupils in membership met the income eligibility criteria for free
breakfast, lunch, or milk in the immediately preceding state fiscal
year, as determined and reported as described in subsection (1),
may use not more than 15% of the funds it receives under this
section
for school security. A district, or public school academy,
or neighborhood public school shall not use any of that money for
administrative costs or to supplant another program or other funds,
except
for funds allocated to the district, or public school
academy, or neighborhood public school under this section in the
immediately preceding year and already being used by the district,
or
public school academy, or neighborhood public school for at-risk
pupils. The instruction or direct noninstructional services
provided under this section may be conducted before or after
regular school hours or by adding extra school days to the school
year and may include, but are not limited to, tutorial services,
early childhood programs to serve children age 0 to 5, and reading
programs as described in former section 32f as in effect for 2001-
2002. A tutorial method may be conducted with paraprofessionals
working under the supervision of a certificated teacher. The ratio
of pupils to paraprofessionals shall be between 10:1 and 15:1. Only
1 certificated teacher is required to supervise instruction using a
tutorial method. As used in this subsection, "to supplant another
program" means to take the place of a previously existing
instructional program or direct noninstructional services funded
from a funding source other than funding under this section.
(5) Except as otherwise provided in subsection (12), a
district, or
public school academy, or
neighborhood public school
that receives funds under this section and that operates a school
breakfast program under section 1272a of the revised school code,
MCL 380.1272a, shall use from the funds received under this section
an
amount, not to exceed $10.00 per pupil for whom the district, or
public school academy, or neighborhood public school receives funds
under this section, necessary to pay for costs associated with the
operation of the school breakfast program.
(6) From the funds allocated under subsection (1), there is
allocated for 2008-2009 an amount not to exceed $4,743,000.00 to
support child and adolescent health centers. These grants shall be
awarded for 5 consecutive years beginning with 2003-2004 in a form
and manner approved jointly by the department and the department of
community health. Each grant recipient shall remain in compliance
with the terms of the grant award or shall forfeit the grant award
for the duration of the 5-year period after the noncompliance.
Beginning in 2004-2005, to continue to receive funding for a child
and adolescent health center under this section a grant recipient
shall ensure that the child and adolescent health center has an
advisory committee and that at least one-third of the members of
the advisory committee are parents or legal guardians of school-
aged children. A child and adolescent health center program shall
recognize the role of a child's parents or legal guardian in the
physical and emotional well-being of the child. Funding under this
subsection shall be used to support child and adolescent health
center services provided to children up to age 21. If any funds
allocated under this subsection are not used for the purposes of
this subsection for the fiscal year in which they are allocated,
those unused funds shall be used that fiscal year to avoid or
minimize any proration that would otherwise be required under
subsection (14) for that fiscal year.
(7) From the funds allocated under subsection (1), there is
allocated for 2008-2009 an amount not to exceed $5,150,000.00 for
the state portion of the hearing and vision screenings as described
in section 9301 of the public health code, 1978 PA 368, MCL
333.9301. A local public health department shall pay at least 50%
of the total cost of the screenings. The frequency of the
screenings shall be as required under R 325.13091 to R 325.13096
and R 325.3271 to R 325.3276 of the Michigan administrative code.
Funds shall be awarded in a form and manner approved jointly by the
department and the department of community health. Notwithstanding
section 17b, payments to eligible entities under this subsection
shall be paid on a schedule determined by the department.
(8)
Each district, or public school academy, or neighborhood
public school receiving funds under this section shall submit to
the department by July 15 of each fiscal year a report, not to
exceed
10 pages, on the usage by the district, or public school
academy, or neighborhood public school of funds under this section,
which report shall include at least a brief description of each
program
conducted by the district, or public school academy, or
neighborhood public school using funds under this section, the
amount of funds under this section allocated to each of those
programs, the number of at-risk pupils eligible for free or reduced
price school lunch who were served by each of those programs, and
the total number of at-risk pupils served by each of those
programs.
If a district, or public school academy, or neighborhood
public school does not comply with this subsection, the department
shall withhold an amount equal to the August payment due under this
section
until the district, or public school academy, or
neighborhood public school complies with this subsection. If the
district, or
public school academy, or
neighborhood public school
does not comply with this subsection by the end of the state fiscal
year, the withheld funds shall be forfeited to the school aid fund.
(9) In order to receive funds under this section, a district,
or
public school academy, or neighborhood public school shall allow
access for the department or the department's designee to audit all
records related to the program for which it receives those funds.
The
district, or public school academy, or neighborhood public
school shall reimburse the state for all disallowances found in the
audit.
(10) Subject to subsections (5), (6), (7), (12), and (13), any
district may use up to 100% of the funds it receives under this
section to reduce the ratio of pupils to teachers in grades K-6, or
any combination of those grades, in school buildings in which the
percentage of pupils described in subsection (1) exceeds the
district's aggregate percentage of those pupils. Subject to
subsections (5), (6), (7), (12), and (13), if a district obtains a
waiver from the department, the district may use up to 100% of the
funds it receives under this section to reduce the ratio of pupils
to teachers in grades K-6, or any combination of those grades, in
school buildings in which the percentage of pupils described in
subsection (1) is at least 60% of the district's aggregate
percentage of those pupils and at least 30% of the total number of
pupils enrolled in the school building. To obtain a waiver, a
district must apply to the department and demonstrate to the
satisfaction of the department that the class size reductions would
be in the best interests of the district's at-risk pupils.
(11)
A district, or public school academy, or neighborhood
public school may use funds received under this section for adult
high school completion, general educational development (G.E.D.)
test preparation, adult English as a second language, or adult
basic education programs described in section 107.
(12) For an individual school or schools operated by a
district, or
public school academy, or
neighborhood public school
receiving funds under this section 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, or public school
academy, or neighborhood public school may submit to the department
an application for flexibility in using the funds received under
this section 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, public
school academy, or neighborhood public school that are designed to
benefit at-risk pupils in the school, but that may be different
from the purposes otherwise allowable under this section. The
department shall approve the application if the department
determines that the purposes identified in the plan are reasonably
designed to benefit at-risk pupils in the school. 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, public school academy,
or neighborhood public school may use the funds identified in the
application for any purpose identified in the plan.
(13)
A district, or public school academy, or neighborhood
public school that receives funds under this section may use funds
it receives under this section to implement and operate an early
intervening program for pupils in grades K to 3 that meets either
or both of the following:
(a) Monitors individual pupil learning and provides specific
support or learning strategies to pupils 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) Provides early intervening strategies using school-wide
systems of academic and behavioral supports and is 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 school-wide 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.
(14) If necessary, and before any proration required under
section 11, the department shall prorate payments under this
section by reducing the amount of the per pupil payment under this
section by a dollar amount calculated by determining the amount by
which the amount necessary to fully fund the requirements of this
section exceeds the maximum amount allocated under this section and
then dividing that amount by the total statewide number of pupils
who met the income eligibility criteria for free breakfast, lunch,
or milk in the immediately preceding fiscal year, as described in
subsection (1).
(15) If a district is formed by consolidation after June 1,
1995, and if 1 or more of the original districts was not eligible
before the consolidation for an additional allowance under this
section, the amount of the additional allowance under this section
for the consolidated district shall be based on the number of
pupils described in subsection (1) enrolled in the consolidated
district who reside in the territory of an original district that
was eligible before the consolidation for an additional allowance
under this section.
(16)
A district, or public school academy, or neighborhood
public school that does not meet the eligibility requirement under
subsection (2)(a) is eligible for funding under this section if at
least
1/4 of the pupils in membership in the district, or public
school academy, or neighborhood public school met the income
eligibility criteria for free breakfast, lunch, or milk in the
immediately preceding state fiscal year, as determined and reported
as described in subsection (1), and at least 4,500 of the pupils in
membership
in the district, or public school academy, or
neighborhood public school met the income eligibility criteria for
free breakfast, lunch, or milk in the immediately preceding state
fiscal year, as determined and reported as described in subsection
(1).
A district, or public school academy, or neighborhood public
school that is eligible for funding under this section
because the
district
it meets the requirements of this subsection shall
receive
under
this section for each membership pupil in the district, or
public school academy, or neighborhood public school who met the
income eligibility criteria for free breakfast, lunch, or milk in
the immediately preceding fiscal year, as determined and reported
as described in subsection (1), an amount per pupil equal to 11.5%
of the sum of the district's foundation allowance or public school
academy's or neighborhood public school's per pupil allocation
under section 20, plus the amount of the district's per pupil
allocation under section 20j(2), not to exceed the basic foundation
allowance under section 20 for the current state fiscal year.
(17) A district that does not meet the eligibility requirement
under subsection (2)(a) is eligible for funding under this section
if at least 75% of the pupils in membership in the district met the
income eligibility criteria for free breakfast, lunch, or milk in
the immediately preceding state fiscal year, as determined and
reported as described in subsection (1), the district receives an
adjustment under section 20(19), and the district does not receive
any state portion of its foundation allowance as calculated under
section 20. A district that is eligible for funding under this
section because the district meets the requirements of this
subsection shall receive under this section for each membership
pupil in the district who met the income eligibility criteria for
free breakfast, lunch, or milk in the immediately preceding fiscal
year, as determined and reported as described in subsection (1), an
amount per pupil equal to 11.5% of the sum of the district's
foundation allowance under section 20, not to exceed the basic
foundation allowance under section 20 for the current state fiscal
year.
(18) As used in this section, "at-risk pupil" means a pupil
for whom the district, public school academy or neighborhood public
school has documentation that the pupil meets at least 2 of the
following criteria: is a victim of child abuse or neglect; is below
grade level in English language and communication skills or
mathematics; is a pregnant teenager or teenage parent; is eligible
for a federal free or reduced-price lunch subsidy; has atypical
behavior or attendance patterns; or has a family history of school
failure, incarceration, or substance abuse. For pupils for whom the
results of at least the applicable Michigan education assessment
program (MEAP) test have been received, at-risk pupil also includes
a pupil who does not meet the other criteria under this subsection
but who did not achieve at least a score of level 2 on the most
recent MEAP English language arts, mathematics, or science test for
which results for the pupil have been received. For pupils for whom
the results of the Michigan merit examination have been received,
at-risk pupil also includes a pupil who does not meet the other
criteria under this subsection but who did not achieve proficiency
on the reading component of the most recent Michigan merit
examination for which results for the pupil have been received, did
not achieve proficiency on the mathematics component of the most
recent Michigan merit examination for which results for the pupil
have been received, or did not achieve basic competency on the
science component of the most recent Michigan merit examination for
which results for the pupil have been received. For pupils in
grades K-3, at-risk pupil also includes a pupil who is at risk of
not meeting the district's, public school academy's, or
neighborhood public school's core academic curricular objectives in
English language arts or mathematics.
Sec. 51a. (1) From the appropriation in section 11, there is
allocated for 2008-2009 an amount not to exceed $1,023,783,000.00
from state sources and all available federal funding under sections
611 to 619 of part B of the individuals with disabilities education
act, 20 USC 1411 to 1419, estimated at $350,700,000.00, plus any
carryover federal funds from previous year appropriations. The
allocations under this subsection are for the purpose of
reimbursing districts and intermediate districts for special
education programs, services, and special education personnel as
prescribed in article 3 of the revised school code, MCL 380.1701 to
380.1766; net tuition payments made by intermediate districts to
the Michigan schools for the deaf and blind; and special education
programs and services for pupils who are eligible for special
education programs and services according to statute or rule. For
meeting the costs of special education programs and services not
reimbursed under this article, a district or intermediate district
may use money in general funds or special education funds, not
otherwise restricted, or contributions from districts to
intermediate districts, tuition payments, gifts and contributions
from individuals, or federal funds that may be available for this
purpose, as determined by the intermediate district plan prepared
pursuant to article 3 of the revised school code, MCL 380.1701 to
380.1766. All federal funds allocated under this section in excess
of those allocated under this section for 2002-2003 may be
distributed in accordance with the flexible funding provisions of
the individuals with disabilities education act, Public Law 108-
446, including, but not limited to, 34 CFR 300.206 and 300.208.
Notwithstanding section 17b, payments of federal funds to
districts, intermediate districts, and other eligible entities
under this section shall be paid on a schedule determined by the
department.
(2) From the funds allocated under subsection (1), there is
allocated the amount necessary, estimated at $224,800,000.00 for
2008-2009, for payments toward reimbursing districts and
intermediate districts for 28.6138% of total approved costs of
special education, excluding costs reimbursed under section 53a,
and 70.4165% of total approved costs of special education
transportation. Allocations under this subsection shall be made as
follows:
(a) The initial amount allocated to a district under this
subsection toward fulfilling the specified percentages shall be
calculated by multiplying the district's special education pupil
membership, excluding pupils described in subsection (12), times
the sum of the foundation allowance under section 20 of the pupil's
district of residence plus the amount of the district's per pupil
allocation under section 20j(2), not to exceed the basic foundation
allowance under section 20 for the current fiscal year, or, for a
special education pupil in membership in a district that is a
public school academy, neighborhood public school, or university
school, times an amount equal to the amount per membership pupil
calculated under section 20(6). For an intermediate district, the
amount allocated under this subdivision toward fulfilling the
specified percentages shall be an amount per special education
membership pupil, excluding pupils described in subsection (12),
and shall be calculated in the same manner as for a district, using
the foundation allowance under section 20 of the pupil's district
of residence, not to exceed the basic foundation allowance under
section 20 for the current fiscal year, and that district's per
pupil allocation under section 20j(2).
(b) After the allocations under subdivision (a), districts and
intermediate districts for which the payments under subdivision (a)
do not fulfill the specified percentages shall be paid the amount
necessary to achieve the specified percentages for the district or
intermediate district.
(3) From the funds allocated under subsection (1), there is
allocated for 2008-2009 the amount necessary, estimated at
$1,600,000.00, to make payments to districts and intermediate
districts under this subsection. If the amount allocated to a
district or intermediate district for a fiscal year under
subsection (2)(b) is less than the sum of the amounts allocated to
the district or intermediate district for 1996-97 under sections 52
and 58, there is allocated to the district or intermediate district
for the fiscal year an amount equal to that difference, adjusted by
applying the same proration factor that was used in the
distribution of funds under section 52 in 1996-97 as adjusted to
the district's or intermediate district's necessary costs of
special education used in calculations for the fiscal year. This
adjustment is to reflect reductions in special education program
operations or services between 1996-97 and subsequent fiscal years.
Adjustments for reductions in special education program operations
or services shall be made in a manner determined by the department
and shall include adjustments for program or service shifts.
(4) If the department determines that the sum of the amounts
allocated for a fiscal year to a district or intermediate district
under subsection (2)(a) and (b) is not sufficient to fulfill the
specified percentages in subsection (2), then the shortfall shall
be paid to the district or intermediate district during the fiscal
year beginning on the October 1 following the determination and
payments under subsection (3) shall be adjusted as necessary. If
the department determines that the sum of the amounts allocated for
a fiscal year to a district or intermediate district under
subsection (2)(a) and (b) exceeds the sum of the amount necessary
to fulfill the specified percentages in subsection (2), then the
department shall deduct the amount of the excess from the
district's or intermediate district's payments under this act for
the fiscal year beginning on the October 1 following the
determination and payments under subsection (3) shall be adjusted
as necessary. However, if the amount allocated under subsection
(2)(a) in itself exceeds the amount necessary to fulfill the
specified percentages in subsection (2), there shall be no
deduction under this subsection.
(5) State funds shall be allocated on a total approved cost
basis. Federal funds shall be allocated under applicable federal
requirements, except that an amount not to exceed $3,500,000.00 may
be allocated by the department for 2008-2009 to districts,
intermediate districts, or other eligible entities on a competitive
grant basis for programs, equipment, and services that the
department determines to be designed to benefit or improve special
education on a statewide scale.
(6) From the amount allocated in subsection (1), there is
allocated an amount not to exceed $2,200,000.00 for 2008-2009 to
reimburse 100% of the net increase in necessary costs incurred by a
district or intermediate district in implementing the revisions in
the administrative rules for special education that became
effective on July 1, 1987. As used in this subsection, "net
increase in necessary costs" means the necessary additional costs
incurred solely because of new or revised requirements in the
administrative rules minus cost savings permitted in implementing
the revised rules. Net increase in necessary costs shall be
determined in a manner specified by the department.
(7) For purposes of this article, all of the following apply:
(a) "Total approved costs of special education" shall be
determined in a manner specified by the department and may include
indirect costs, but shall not exceed 115% of approved direct costs
for section 52 and section 53a programs. The total approved costs
include salary and other compensation for all approved special
education personnel for the program, including payments for social
security and medicare and public school employee retirement system
contributions. The total approved costs do not include salaries or
other compensation paid to administrative personnel who are not
special education personnel as defined in section 6 of the revised
school code, MCL 380.6. Costs reimbursed by federal funds, other
than those federal funds included in the allocation made under this
article, are not included. Special education approved personnel not
utilized full time in the evaluation of students or in the delivery
of special education programs, ancillary, and other related
services shall be reimbursed under this section only for that
portion of time actually spent providing these programs and
services, with the exception of special education programs and
services provided to youth placed in child caring institutions or
juvenile detention programs approved by the department to provide
an on-grounds education program.
(b) Beginning with the 2004-2005 fiscal year, a district or
intermediate district that employed special education support
services staff to provide special education support services in
2003-2004 or in a subsequent fiscal year and that in a fiscal year
after 2003-2004 receives the same type of support services from
another district or intermediate district shall report the cost of
those support services for special education reimbursement purposes
under this act. This subdivision does not prohibit the transfer of
special education classroom teachers and special education
classroom aides if the pupils counted in membership associated with
those special education classroom teachers and special education
classroom aides are transferred and counted in membership in the
other district or intermediate district in conjunction with the
transfer of those teachers and aides.
(c) If the department determines before bookclosing for 2007-
2008 that the amounts allocated for 2007-2008 under subsections
(2), (3), (6), (8), and (12) and sections 53a, 54, and 56 will
exceed expenditures for 2007-2008 under subsections (2), (3), (6),
(8), and (12) and sections 53a, 54, and 56, then for 2007-2008
only, for a district or intermediate district whose reimbursement
for 2007-2008 would otherwise be affected by subdivision (b),
subdivision (b) does not apply to the calculation of the
reimbursement for that district or intermediate district and
reimbursement for that district or intermediate district shall be
calculated in the same manner as it was for 2003-2004. If the
amount of the excess allocations under subsections (2), (3), (6),
(8), and (12) and sections 53a, 54, and 56 is not sufficient to
fully fund the calculation of reimbursement to those districts and
intermediate districts under this subdivision, then the
calculations and resulting reimbursement under this subdivision
shall be prorated on an equal percentage basis.
(d) Reimbursement for ancillary and other related services, as
defined by R 340.1701c of the Michigan administrative code, shall
not be provided when those services are covered by and available
through private group health insurance carriers or federal
reimbursed program sources unless the department and district or
intermediate district agree otherwise and that agreement is
approved by the state budget director. Expenses, other than the
incidental expense of filing, shall not be borne by the parent. In
addition, the filing of claims shall not delay the education of a
pupil. A district or intermediate district shall be responsible for
payment of a deductible amount and for an advance payment required
until the time a claim is paid.
(e) Beginning with calculations for 2004-2005, if an
intermediate district purchases a special education pupil
transportation service from a constituent district that was
previously purchased from a private entity; if the purchase from
the constituent district is at a lower cost, adjusted for changes
in fuel costs; and if the cost shift from the intermediate district
to the constituent does not result in any net change in the revenue
the constituent district receives from payments under sections 22b
and 51c, then upon application by the intermediate district, the
department shall direct the intermediate district to continue to
report the cost associated with the specific identified special
education pupil transportation service and shall adjust the costs
reported by the constituent district to remove the cost associated
with that specific service.
(8) From the allocation in subsection (1), there is allocated
for 2008-2009 an amount not to exceed $15,313,900.00 to
intermediate districts. The payment under this subsection to each
intermediate district shall be equal to the amount of the 1996-97
allocation to the intermediate district under subsection (6) of
this section as in effect for 1996-97.
(9) A pupil who is enrolled in a full-time special education
program conducted or administered by an intermediate district or a
pupil who is enrolled in the Michigan schools for the deaf and
blind shall not be included in the membership count of a district,
but shall be counted in membership in the intermediate district of
residence.
(10) Special education personnel transferred from 1 district
to another to implement the revised school code shall be entitled
to the rights, benefits, and tenure to which the person would
otherwise be entitled had that person been employed by the
receiving district originally.
(11) If a district or intermediate district uses money
received under this section for a purpose other than the purpose or
purposes for which the money is allocated, the department may
require the district or intermediate district to refund the amount
of money received. Money that is refunded shall be deposited in the
state treasury to the credit of the state school aid fund.
(12) From the funds allocated in subsection (1), there is
allocated the amount necessary, estimated at $7,100,000.00 for
2008-2009, to pay the foundation allowances for pupils described in
this subsection. The allocation to a district under this subsection
shall be calculated by multiplying the number of pupils described
in this subsection who are counted in membership in the district
times the sum of the foundation allowance under section 20 of the
pupil's district of residence plus the amount of the district's per
pupil allocation under section 20j(2), not to exceed the basic
foundation allowance under section 20 for the current fiscal year,
or, for a pupil described in this subsection who is counted in
membership in a district that is a public school academy,
neighborhood public school, or university school, times an amount
equal to the amount per membership pupil under section 20(6). The
allocation to an intermediate district under this subsection shall
be calculated in the same manner as for a district, using the
foundation allowance under section 20 of the pupil's district of
residence, not to exceed the basic foundation allowance under
section 20 for the current fiscal year, and that district's per
pupil allocation under section 20j(2). This subsection applies to
all of the following pupils:
(a) Pupils described in section 53a.
(b) Pupils counted in membership in an intermediate district
who are not special education pupils and are served by the
intermediate district in a juvenile detention or child caring
facility.
(c) Emotionally impaired pupils counted in membership by an
intermediate district and provided educational services by the
department of community health.
(13) If it is determined that funds allocated under subsection
(2) or (12) or under section 51c will not be expended, funds up to
the amount necessary and available may be used to supplement the
allocations under subsection (2) or (12) or under section 51c in
order to fully fund those allocations. After payments under
subsections (2) and (12) and section 51c, the remaining
expenditures from the allocation in subsection (1) shall be made in
the following order:
(a) 100% of the reimbursement required under section 53a.
(b) 100% of the reimbursement required under subsection (6).
(c) 100% of the payment required under section 54.
(d) 100% of the payment required under subsection (3).
(e) 100% of the payment required under subsection (8).
(f) 100% of the payments under section 56.
(14) The allocations under subsections (2), (3), and (12)
shall be allocations to intermediate districts only and shall not
be allocations to districts, but instead shall be calculations used
only to determine the state payments under section 22b.
(15) If a public school academy or neighborhood public school
enrolls pursuant to this section a pupil who resides outside of the
intermediate district in which the public school academy or
neighborhood public school is located and who is eligible for
special education programs and services according to statute or
rule, or who is a child with disabilities, as defined under the
individuals with disabilities education act, Public Law 108-446,
the provision of special education programs and services and the
payment of the added costs of special education programs and
services for the pupil are the responsibility of the district and
intermediate district in which the pupil resides unless the
enrolling district or intermediate district has a written agreement
with the district or intermediate district in which the pupil
resides or the public school academy or neighborhood public school
for the purpose of providing the pupil with a free appropriate
public education and the written agreement includes at least an
agreement on the responsibility for the payment of the added costs
of special education programs and services for the pupil.
Sec. 101. (1) To be eligible to receive state aid under this
act, not later than the fifth Wednesday after the pupil membership
count day and not later than the fifth Wednesday after the
supplemental count day, each district superintendent through the
secretary of the district's board shall file with the intermediate
superintendent a certified and sworn copy of the number of pupils
enrolled and in regular daily attendance in the district as of the
pupil membership count day and as of the supplemental count day, as
applicable, for the current school year. In addition, a district
maintaining school during the entire year, as provided under
section 1561 of the revised school code, MCL 380.1561, shall file
with the intermediate superintendent a certified and sworn copy of
the number of pupils enrolled and in regular daily attendance in
the district for the current school year pursuant to rules
promulgated by the superintendent. Not later than the seventh
Wednesday after the pupil membership count day and not later than
the seventh Wednesday after the supplemental count day, the
intermediate district shall transmit to the center revised data, as
applicable, for each of its constituent districts. If a district
fails to file the sworn and certified copy with the intermediate
superintendent in a timely manner, as required under this
subsection, the intermediate district shall notify the department
and state aid due to be distributed under this act shall be
withheld from the defaulting district immediately, beginning with
the next payment after the failure and continuing with each payment
until the district complies with this subsection. If an
intermediate district fails to transmit the data in its possession
in a timely and accurate manner to the center, as required under
this subsection, state aid due to be distributed under this act
shall be withheld from the defaulting intermediate district
immediately, beginning with the next payment after the failure and
continuing with each payment until the intermediate district
complies with this subsection. If a district or intermediate
district does not comply with this subsection by the end of the
fiscal year, the district or intermediate district forfeits the
amount withheld. A person who willfully falsifies a figure or
statement in the certified and sworn copy of enrollment shall be
punished in the manner prescribed by section 161.
(2) To be eligible to receive state aid under this act, not
later than the twenty-fourth Wednesday after the pupil membership
count day and not later than the twenty-fourth Wednesday after the
supplemental count day, an intermediate district shall submit to
the center, in a form and manner prescribed by the center, the
audited enrollment and attendance data for the pupils of its
constituent districts and of the intermediate district. If an
intermediate district fails to transmit the audited data as
required under this subsection, state aid due to be distributed
under this act shall be withheld from the defaulting intermediate
district immediately, beginning with the next payment after the
failure and continuing with each payment until the intermediate
district complies with this subsection. If an intermediate district
does not comply with this subsection by the end of the fiscal year,
the intermediate district forfeits the amount withheld.
(3)
All Except as otherwise
provided in subsection (11), all
of the following apply to the provision of pupil instruction:
(a) Except as otherwise provided in this section, each
district shall provide at least 1,098 hours of pupil instruction.
Except as otherwise provided in this act, a district failing to
comply with the required minimum hours of pupil instruction under
this subsection shall forfeit from its total state aid allocation
an amount determined by applying a ratio of the number of hours the
district was in noncompliance in relation to the required minimum
number of hours under this subsection. Not later than August 1, the
board of each district shall certify to the department the number
of hours of pupil instruction in the previous school year. If the
district did not provide at least the required minimum number of
hours of pupil instruction under this subsection, the deduction of
state aid shall be made in the following fiscal year from the first
payment of state school aid. A district is not subject to
forfeiture of funds under this subsection for a fiscal year in
which a forfeiture was already imposed under subsection (6). Hours
lost because of strikes or teachers' conferences shall not be
counted as days or hours of pupil instruction.
(b) Except as otherwise provided in subdivision (c), a
district not having at least 75% of the district's membership in
attendance on any day of pupil instruction shall receive state aid
in that proportion of 1/180 that the actual percent of attendance
bears to the specified percentage.
(c) Beginning in 2005-2006, at the request of a district that
operates a department-approved alternative education program and
that does not provide instruction for pupils in all of grades K to
12, the superintendent shall grant a waiver for a period of 3
school years from the requirements of subdivision (b) in order to
conduct a pilot study. The waiver shall indicate that an eligible
district is subject to the proration provisions of subdivision (b)
only if the district does not have at least 50% of the district’s
membership in attendance on any day of pupil instruction. Not later
than 2008-2009, the department shall report on the impact of this
waiver on the academic achievement of pupils in these districts to
the state budget director and the senate and house appropriations
subcommittees on state school aid. In order to be eligible for this
waiver, a district must maintain records to substantiate its
compliance with the following requirements during the pilot study:
(i) The district offers the minimum hours of pupil instruction
as required under this section.
(ii) For each enrolled pupil, the district uses appropriate
academic assessments to develop an individual education plan that
leads to a high school diploma.
(iii) The district tests each pupil to determine academic
progress at regular intervals and records the results of those
tests in that pupil’s individual education plan.
(d) The superintendent shall promulgate rules for the
implementation of this subsection.
(4) Except as otherwise provided in this subsection, the first
30 hours for which pupil instruction is not provided because of
conditions not within the control of school authorities, such as
severe storms, fires, epidemics, utility power unavailability,
water or sewer failure, or health conditions as defined by the
city, county, or state health authorities, shall be counted as
hours of pupil instruction. Beginning in 2003-2004, with the
approval of the superintendent of public instruction, the
department shall count as hours of pupil instruction for a fiscal
year not more than 30 additional hours for which pupil instruction
is not provided in a district after April 1 of the applicable
school year due to unusual and extenuating occurrences resulting
from conditions not within the control of school authorities such
as those conditions described in this subsection. Subsequent such
hours shall not be counted as hours of pupil instruction.
(5) A district shall not forfeit part of its state aid
appropriation because it adopts or has in existence an alternative
scheduling program for pupils in kindergarten if the program
provides at least the number of hours required under subsection (3)
for a full-time equated membership for a pupil in kindergarten as
provided under section 6(4).
(6) Not later than April 15 of each fiscal year, the board of
each district shall certify to the department the planned number of
hours of pupil instruction in the district for the school year
ending in the fiscal year. In addition to any other penalty or
forfeiture under this section, if at any time the department
determines that 1 or more of the following has occurred in a
district, the district shall forfeit in the current fiscal year
beginning in the next payment to be calculated by the department a
proportion of the funds due to the district under this act that is
equal to the proportion below the required minimum number of hours
of pupil instruction under subsection (3), as specified in the
following:
(a) The district fails to operate its schools for at least the
required minimum number of hours of pupil instruction under
subsection (3) in a school year, including hours counted under
subsection (4).
(b) The board of the district takes formal action not to
operate its schools for at least the required minimum number of
hours of pupil instruction under subsection (3) in a school year,
including hours counted under subsection (4).
(7) In providing the minimum number of hours of pupil
instruction required under subsection (3), a district shall use the
following guidelines, and a district shall maintain records to
substantiate its compliance with the following guidelines:
(a) Except as otherwise provided in this subsection, a pupil
must be scheduled for at least the required minimum number of hours
of instruction, excluding study halls, or at least the sum of 90
hours plus the required minimum number of hours of instruction,
including up to 2 study halls.
(b) The time a pupil is assigned to any tutorial activity in a
block schedule may be considered instructional time, unless that
time is determined in an audit to be a study hall period.
(c) Except as otherwise provided in this subdivision, a pupil
in grades 9 to 12 for whom a reduced schedule is determined to be
in the individual pupil's best educational interest must be
scheduled for a number of hours equal to at least 80% of the
required minimum number of hours of pupil instruction to be
considered a full-time equivalent pupil. A pupil in grades 9 to 12
who is scheduled in a 4-block schedule may receive a reduced
schedule under this subsection if the pupil is scheduled for a
number of hours equal to at least 75% of the required minimum
number of hours of pupil instruction to be considered a full-time
equivalent pupil.
(d) If a pupil in grades 9 to 12 who is enrolled in a
cooperative education program or a special education pupil cannot
receive the required minimum number of hours of pupil instruction
solely because of travel time between instructional sites during
the school day, that travel time, up to a maximum of 3 hours per
school week, shall be considered to be pupil instruction time for
the purpose of determining whether the pupil is receiving the
required minimum number of hours of pupil instruction. However, if
a district demonstrates to the satisfaction of the department that
the travel time limitation under this subdivision would create
undue costs or hardship to the district, the department may
consider more travel time to be pupil instruction time for this
purpose.
(e) In grades 7 through 12, instructional time that is part of
a junior reserve officer training corps (JROTC) program shall be
considered to be pupil instruction time regardless of whether the
instructor is a certificated teacher if all of the following are
met:
(i) The instructor has met all of the requirements established
by the United States department of defense and the applicable
branch of the armed services for serving as an instructor in the
junior reserve officer training corps program.
(ii) The board of the district or intermediate district
employing or assigning the instructor complies with the
requirements of sections 1230 and 1230a of the revised school code,
MCL 380.1230 and 380.1230a, with respect to the instructor to the
same extent as if employing the instructor as a regular classroom
teacher.
(8)
The Except as otherwise
provided in subsection (11), the
department shall apply the guidelines under subsection (7) in
calculating the full-time equivalency of pupils.
(9) Upon application by the district for a particular fiscal
year, the superintendent may waive for a district the minimum
number of hours of pupil instruction requirement of subsection (3)
for a department-approved alternative education program. If a
district applies for and receives a waiver under this subsection
and complies with the terms of the waiver, for the fiscal year
covered by the waiver the district is not subject to forfeiture
under this section for the specific program covered by the waiver.
If the district does not comply with the terms of the waiver, the
amount of the forfeiture shall be calculated based upon a
comparison of the number of hours of pupil instruction actually
provided to the minimum number of hours of pupil instruction
required under subsection (3).
(10) A district may count up to 38 hours of qualifying
professional development for teachers, including the 5 hours of
online professional development provided by the Michigan virtual
university under section 98, as hours of pupil instruction.
However, if a collective bargaining agreement that provides more
than 38 but not more than 51 hours of professional development for
teachers is in effect for employees of a district as of the
effective date of the 2006 amendatory act that amended this
subsection, then until the fiscal year that begins after the
expiration of that collective bargaining agreement a district may
count up to 51 hours of qualifying professional development for
teachers, including the 5 hours of online professional development
provided by the Michigan virtual university under section 98, as
hours of pupil instruction. A district that elects to use this
exception shall notify the department of its election. As used in
this subsection, "qualifying professional development" means
professional development that is focused on 1 or more of the
following:
(a) Achieving or improving adequate yearly progress as defined
under the no child left behind act of 2001, Public Law 107-110.
(b) Achieving accreditation or improving a school's
accreditation status under section 1280 of the revised school code,
MCL 380.1280.
(c) Achieving highly qualified teacher status as defined under
the no child left behind act of 2001, Public Law 107-110.
(d) Maintaining teacher certification.
(11) Subsections (3) and (8) do not apply to a neighborhood
public school that is a cyber school and is in compliance with
section 538 of the revised school code, MCL 380.538.
Sec. 169. In order for a public school academy or neighborhood
public school to receive state aid under this act, the public
school academy or neighborhood public school shall demonstrate to
the satisfaction of the department that the public school academy
or neighborhood public school has made a good faith effort to
advertise, throughout the entire area of the intermediate district
in which the public school academy or neighborhood public school is
located, that the public school academy or neighborhood public
school is enrolling students and the procedures for applying for
enrollment. The department shall not make any payments to a public
school academy or neighborhood public school until the public
school academy or neighborhood public school supplies evidence
satisfactory to the department demonstrating compliance with this
section. If a public school academy or neighborhood public school
is a successor to a nonpublic school and more than 75% of the
pupils enrolled in the public school academy or neighborhood public
school during its first school year of operation were previously
enrolled in that nonpublic school, there is a rebuttable
presumption that the public school academy or neighborhood public
school did not make the good faith effort required under this
section.
Sec. 169b. A board member of a district, intermediate
district,
public school academy, or neighborhood public
school,
public school academy corporation, or neighborhood public school
corporation shall abstain from voting on any contract in which the
board member has a conflict of interest.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 636
of the 95th Legislature is enacted into law.