SB-0183, As Passed Senate, April 27, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 183

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 3, 6, 11, 11a, 11g, 11j, 11k, 11m, 15, 18, 20,

 

20d, 22a, 22b, 22d, 22e, 24, 24a, 24c, 26a, 31a, 31d, 31f, 32b,

 

32d, 32j, 39, 39a, 40, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81,

 

93, 94a, 98, 99, 101, 104, 107, 109, 147, and 152a (MCL 388.1603,

 

388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k,

 

388.1611m, 388.1615, 388.1618, 388.1620, 388.1620d, 388.1622a,

 

388.1622b, 388.1622d, 388.1622e, 388.1624, 388.1624a, 388.1624c,

 

388.1626a, 388.1631a, 388.1631d, 388.1631f, 388.1632b, 388.1632d,

 

388.1632j, 388.1639, 388.1639a, 388.1640, 388.1651a, 388.1651c,

 

388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662,


 

388.1674, 388.1681, 388.1693, 388.1694a, 388.1698, 388.1699,

 

388.1701, 388.1704, 388.1707, 388.1709, 388.1747, and 388.1752a),

 

sections 3, 6, 11a, 11g, 11k, 15, 18, 20, 20d, 22b, 22d, 24, 24a,

 

31a, 31d, 31f, 32b, 32d, 32j, 39, 51c, 51d, 53a, 54, 61a, 62, 74,

 

98, 99, 101, 107, and 147 as amended by 2010 PA 110, sections 11,

 

11m, 22a, 51a, and 56 as amended and section 152a as added by 2010

 

PA 217, sections 11j, 22e, 24c, 26a, 39a, 81, 94a, and 104 as

 

amended and section 93 as added by 2010 PA 204, section 40 as

 

amended by 2000 PA 297, and section 109 as amended by 1994 PA 283,

 

and by adding sections 12, 22f, and 166f; and to repeal acts and

 

parts of acts.

 

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), 13, 20,

 

22a, 23, 29, 31a, 51a(15), 105, 105c, and 166b, a public school

 

academy. Except in sections 6(4), 6(6), 13, 20, 22a, 29, 51a(15),

 

105, 105c, and 166b, 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

 

the chief administrator of a university school.

 

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

 

district or by an intermediate district for special education

 

pupils from several districts in programs for pupils with autism

 

spectrum disorder, pupils with severe cognitive impairment, pupils

 

with moderate cognitive impairment, pupils with severe multiple


 

impairments, pupils with hearing impairment, pupils with visual

 

impairment, and pupils with physical impairment or other health

 

impairment. Programs for pupils with emotional impairment housed in

 

buildings that do not serve regular education pupils also qualify.

 

Unless otherwise approved by the department, a center program

 

either shall serve all constituent districts within an intermediate

 

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

 

pupils residing in the operating district. In addition, special

 

education center program pupils placed part-time in noncenter

 

programs to comply with the least restrictive environment

 

provisions of section 612 of part B of the individuals with

 

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

 

program pupils for pupil accounting purposes for the time scheduled

 

in either a center program or a noncenter program.

 

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

 

annual completion and pupil dropout rate that is calculated by the

 

center pursuant to nationally recognized standards.

 

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

 

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

 

the district for the immediately preceding school year, adjusted

 

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

 

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

 

credential of equal status.

 

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

 

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

 

intermediate district the sum of the product of .75 .90 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 .10

 

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 school of excellence that is a cyber school, as

 

defined in section 551 of the revised school code, MCL 380.551, and

 

is in compliance with section 553a of the revised school code, MCL

 

380.553a, 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, 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 career and technical education

 

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

 

single district or in an area vocational-technical education

 

program established pursuant to section 690 of the revised school

 

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

 

residence.

 

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

 

in membership in the university school.


 

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

 

counted in membership in the public school academy.

 

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

 

academy beginning its operation after December 31, 1994, membership

 

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

 

determined as follows:

 

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

 

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

 

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

 

daily attendance on the pupil membership count day for the current

 

school year and on the supplemental count day for the current

 

school year, as determined by the department and calculated by

 

adding the number of pupils registered for attendance on the pupil

 

membership count day plus pupils received by transfer and minus

 

pupils lost as defined by rules promulgated by the superintendent,

 

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

 

audited count from the supplemental count day for the current

 

school year, and dividing that sum by 2.

 

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

 

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

 

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

 

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

 

enrolled and in regular daily attendance on the supplemental count

 

day for the current school year.

 

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

 

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

 

in membership on the pupil membership count day in the public


Senate Bill No. 183 as amended April 27, 2011

 

school academy, the determination of the district's membership

 

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

 

preceding supplemental count day any pupils who are counted in the

 

public school academy on that first pupil membership count day who

 

were also counted in the district on the immediately preceding

 

supplemental count day.

 

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

 

or intermediate district operating an extended school year program

 

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

 

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

 

shall be counted.

 

     (l) Pupils 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 as follows:

 

     (i) A special education pupil who is enrolled and receiving

 

instruction in a special education program or service approved by

 

the department, who does not have a high school diploma, and who is

 

less than 26 years of age as of September 1 of the current school

 

year shall be counted in membership.

 

     (ii) A pupil who is determined by the department to meet all of

 

the following may be counted in membership:

 

     (A) Is enrolled in a public school academy or an alternative

 

education high school diploma program, that is primarily focused on

 

educating homeless pupils and that is located in a city with a

 

population of more than <<750,000 500,000>>.

 

     (B) Had dropped out of school for more than 1 year and has re-

 

entered school.


Senate Bill No. 183 as amended April 27, 2011

 

     (C) Is less than 22 years of age as of September 1 of the

 

current school year.

 

     (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 unless the individual is a student with a

 

disability as defined in R 340.1702 of the Michigan administrative

 

code. 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 WORKFORCE

DEVELOPMENT AGENCY>>, or participating

 

in any successor of either of those 2 programs, shall not be

 

counted in membership.

 

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

 

academy is also educated by a district or intermediate district as

 

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

 

in membership only in the public school academy unless a written

 

agreement signed by all parties designates the party or parties in

 

which the pupil shall be counted in membership, and the

 

instructional time scheduled for the pupil in the district or

 

intermediate district shall be included in the full-time equated

 

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

 

receiving instruction in both a public school academy and in a

 

district or intermediate district but not as a part of a

 

cooperative education program, the following apply:

 

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

 

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


 

public school academy shall receive as its prorated share of the

 

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

 

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

 

school academy provides divided by the number of hours specified in

 

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

 

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

 

the district or intermediate district providing the remainder of

 

the hours of instruction.

 

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

 

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

 

district or intermediate district providing the remainder of the

 

hours of instruction shall receive as its prorated share of the

 

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

 

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

 

district or intermediate district provides divided by the number of

 

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

 

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

 

shall be allocated to the public school academy.

 

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

 

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

 

education program shall not be counted in membership if there are

 

also adult education participants being educated in the same

 

program or classroom.

 

     (p) The department shall give a uniform interpretation of

 

full-time and part-time memberships.

 

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

 

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


 

determining full-time equated memberships for pupils who are

 

enrolled in a postsecondary institution, a pupil shall not be

 

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

 

of the effect of his or her postsecondary enrollment, including

 

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

 

district to the pupil.

 

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

 

time 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 same number used for determining full-time equated memberships

 

for pupils in grades 1 to 12.

 

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

 

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

 

offered by the district, university school, or public school

 

academy in the immediately preceding school year, the number of

 

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

 

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

 

daily attendance on the pupil membership count day and the

 

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

 

the department. Membership shall be calculated by adding the number

 

of pupils registered for attendance in that grade level on the

 

pupil membership count day plus pupils received by transfer and

 

minus pupils lost as defined by rules promulgated by the

 

superintendent, and as corrected by subsequent department audit,

 

plus the final audited count from the supplemental count day for

 

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


 

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

 

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

 

written approval of all parties to the cooperative agreement.

 

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

 

determines through the district's alternative or disciplinary

 

education program that the best instructional placement for a pupil

 

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

 

population, if that placement is authorized in writing by the

 

district superintendent and district alternative or disciplinary

 

education supervisor, and if the district provides appropriate

 

instruction as described in this subdivision to the pupil at the

 

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

 

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

 

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

 

district actually provides to the pupil divided by the number of

 

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

 

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

 

be providing appropriate instruction if all of the following are

 

met:

 

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

 

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

 

apart from the general school population under the supervision of a

 

certificated teacher.

 

     (ii) The district provides instructional materials, resources,

 

and supplies, except computers, that are comparable to those

 

otherwise provided in the district's alternative education program.

 

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


 

alternative education program.

 

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

 

pupil's transcript.

 

     (v) A pupil enrolled in an alternative or disciplinary

 

education program described in section 25 shall be counted in

 

membership in the district or public school academy that is

 

educating the pupil.

 

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

 

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

 

with its authorizing body is revoked or the public school academy

 

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

 

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

 

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

 

count day to include the pupil in the count.

 

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

 

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

 

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

 

product of .75 .90 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 .10 times the final audited count from the most

 

recent pupil membership count day or supplemental count day that

 

occurred before suspending operations, as determined by the

 

superintendent.

 

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

 

as otherwise calculated under this subsection, would be less than


 

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

 

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

 

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

 

district's membership shall be considered to be the membership

 

figure calculated under this subdivision. If a district educates

 

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

 

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

 

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

 

determination allowed under this sentence, the department shall

 

include the square mileage of both districts in determining the

 

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

 

purposes of this subdivision. The membership figure calculated

 

under this subdivision is the greater of the following:

 

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

 

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

 

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

 

otherwise calculated under this subsection, and dividing the sum of

 

those 3 membership figures by 3.

 

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

 

otherwise calculated under this subsection.

 

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

 

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

 

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

 

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

 

of the public school academy enrolls and is in regular daily

 

attendance for the next school year to ensure that the district

 

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


 

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

 

the preceding school year.

 

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

 

education pupils who are not enrolled in kindergarten but are

 

enrolled in a classroom program under R 340.1754 of the Michigan

 

administrative code shall be determined by dividing the number of

 

class hours scheduled and provided per year by 450 549. Full-time

 

equated memberships for preprimary-aged special education pupils

 

who are not enrolled in kindergarten but are receiving nonclassroom

 

early childhood special education services under R 340.1755 of the

 

Michigan administrative code shall be determined by dividing the

 

number of hours of service scheduled and provided per year per

 

pupil by 180.

 

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

 

Labor day who is enrolled in an intermediate district program that

 

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

 

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

 

attended by the pupil before Labor day.

 

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

 

membership on the pupil membership count day in a middle college

 

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

 

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

 

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

 

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

 

operating district on the immediately preceding supplemental count

 

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

 

preceding supplemental count for purposes of determining the


 

district's membership.

 

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

 

States Olympic education center may count the pupil in membership

 

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

 

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

 

district of residence pursuant to section 1148(2) of the revised

 

school code, MCL 380.1148, shall be counted in the educating

 

district.

 

     (5) "Public school academy" means that term as defined in 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 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 works at the

 

district or who is the child of a person who worked at the district

 

as of the time the pupil first enrolled in the district but who no

 

longer works at the district due to a workforce reduction. 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 middle college 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.

 

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

 

district of residence pursuant to section 1148(2) of the revised

 

school code, MCL 380.1148.

 

     (o) A pupil who enrolls in a district other than the pupil's

 

district of residence as a result of the pupil's school not making

 

adequate yearly progress under the no child left behind act of

 

2001, Public Law 107-110.

 

     (p) A vocational job training program or alternative high

 

school diploma program operated by a state licensed proprietary

 

school or a nonprofit corporation.

 

     (q) A vocational job training program or alternative high

 

school diploma program operated by a state licensed proprietary

 

school or nonprofit corporation in conjunction with a district.

 

     (r) An alternative education program operated by a district in

 

a city or county jail.

 

     However, if a district educates pupils who reside in another

 

district and if the primary instructional site for those pupils is

 

established by the educating district after 2009-2010 and is

 

located within the boundaries of that other district, the educating


 

district must have the approval of that other district to count

 

those pupils in membership.

 

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

 

district means:

 

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

 

Wednesday after Labor day in October 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 First Wednesday after Labor day.in October.

 

     (iii) Second Wednesday in February.

 

     (iv) Fourth Wednesday in April.

 

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

 

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

 

receiving instruction in all classes for which they are enrolled on

 

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

 

applicable. Except as otherwise provided in this subsection, a

 

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

 

enrolled on the pupil membership count day or supplemental count

 

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

 

consecutive school days immediately following the pupil membership

 

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


 

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

 

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

 

pupil membership count day or supplemental count day and who fails

 

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

 

30 calendar days after the pupil membership count day or

 

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

 

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

 

attendance in a district, intermediate district, or public school

 

academy before the pupil membership count day or supplemental count

 

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

 

membership count day or supplemental count day shall only be

 

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

 

attendance in the district, intermediate district, or public school

 

academy within 45 days after the pupil membership count day or

 

supplemental count day of that particular year. Pupils not counted

 

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

 

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

 

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

 

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

 

qualified substitute teacher are together and instruction is taking

 

place.

 

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

 

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

 

24.328.

 

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

 

380.1852.

 

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


 

district", and "district of the first class" mean a district that

 

had at least 60,000 pupils in membership for the immediately

 

preceding fiscal year.

 

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

 

July 1 and continues through June 30.

 

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

 

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

 

district or intermediate district superintendent, means the

 

superintendent of public instruction described in section 3 of

 

article VIII of the state constitution of 1963.

 

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

 

supplemental pupil count is conducted under section 6a.

 

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

 

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

 

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

 

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

 

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

 

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

 

to attend another school district after the pupil has been assigned

 

to a school district.

 

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

 

established in section 11 of article IX of the state constitution

 

of 1963.

 

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

 

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

 

PA 206, MCL 211.27a.

 

     (19) "Textbook" means a book, electronic book, or other


Senate Bill No. 183 as amended April 27, 2011

 

instructional print or electronic resource that is selected and

 

approved by the governing board of a district and that contains a

 

presentation of principles of a subject, or that is a literary work

 

relevant to the study of a subject required for the use of

 

classroom pupils, or another type of course material that forms the

 

basis of classroom instruction.

 

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

 

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

 

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

 

     (21) "University school" means an instructional program

 

operated by a public university under section 23 that meets the

 

requirements of section 23.

 

     Sec. 11. (1) Subject to subsection (5), (3), for the fiscal

 

year ending September 30, 2011, 2012, there is appropriated for the

 

public schools of this state and certain other state purposes

 

relating to education the sum of $10,937,260,500.00

 

<<$10,528,263,800.00>> from the state school aid fund and the sum of

 

$18,642,400.00 $218,642,400.00 from the general fund. For the

 

fiscal year ending September 30, 2011, there is also appropriated

 

the remaining balance of the federal funding awarded to this state

 

under title XIV of the American recovery and reinvestment act of

 

2009, Public Law 111-5, estimated at $184,256,600.00, to be used

 

solely for the purpose of funding the primary funding formula

 

calculated under section 20, in accordance with federal law. In

 

addition, all other available federal funds , except those

 

otherwise appropriated under section 11p, are appropriated for the

 

fiscal year ending September 30, 2011. 2012.


 

     (2) The appropriations under this section shall be allocated

 

as provided in this act. Money appropriated under this section from

 

the general fund shall be expended to fund the purposes of this act

 

before the expenditure of money appropriated under this section

 

from the state school aid fund. If the maximum amount appropriated

 

under this section from the state school aid fund for a fiscal year

 

exceeds the amount necessary to fully fund allocations under this

 

act from the state school aid fund, that excess amount shall not be

 

expended in that state fiscal year and shall not lapse to the

 

general fund, but instead shall be deposited into the school aid

 

stabilization fund created in section 11a. For 2009-2010 only, if

 

the department determines before bookclosing for the 2009-2010

 

state fiscal year that the maximum amount appropriated under this

 

section from the state school aid fund for 2009-2010 exceeds the

 

amount necessary to fully fund allocations under this act from the

 

state school aid fund for 2009-2010 and that state support for

 

elementary and secondary education for 2009-2010 will fall below

 

the level of support needed to comply with the maintenance of

 

effort provisions under title XIV of the American recovery and

 

reinvestment act of 2009, Public Law 111-5, then there is

 

appropriated for 2009-2010 from the school aid stabilization fund

 

an amount equal to $30,000,000.00 or the amount that the department

 

determines is necessary for the state support for elementary and

 

secondary education to meet the level of support needed to comply

 

with the maintenance of effort provisions under title XIV of the

 

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

 

whichever is greater. The department shall use any funds


 

appropriated under this subsection as follows:

 

     (a) First, to allocate $10,000,000.00 to provide funding to

 

each intermediate district in an amount equal to the product of

 

14.75% multiplied by the amount of funding allocated to that

 

intermediate district under section 81 for 2009-2010 under 2010 PA

 

110.

 

     (b) Second, to allocate the amount necessary, estimated at

 

$10,000,000.00, to provide funding under this subdivision to

 

districts for which the amount of per-pupil funding calculated and

 

allocated under section 11p(2) is less than $154.00. The payment to

 

a district under this subdivision is an amount equal to the

 

difference between $154.00 and the per-pupil funding amount

 

calculated and allocated under section 11p(2) for the district,

 

multiplied by the district's 2010-2011 membership used for the

 

October 2010 payment.

 

     (c) Third, to allocate any remaining funds to reduce the

 

amount of the per-pupil reduction under section 11d(1) for 2009-

 

2010.

 

     (3) If the combined total of the maximum amount appropriated

 

under this section from the state school aid fund and the school

 

aid stabilization fund and the amount appropriated under the public

 

acts making appropriations for community colleges and state

 

universities from the state school aid fund for a fiscal year

 

exceeds the amount available for expenditure from the state school

 

aid fund for that fiscal year, payments under sections 11f, 11g,

 

11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a, 56, and

 

152a shall be made in full. In addition, for districts beginning


 

operations after 1994-95 that qualify for payments under section

 

22b, payments under section 22b shall be made so that the

 

qualifying districts receive the lesser of an amount equal to the

 

1994-95 foundation allowance of the district in which the district

 

beginning operations after 1994-95 is located or $5,500.00. The

 

amount of the payment to be made under section 22b for these

 

qualifying districts shall be as calculated under section 22a, with

 

the balance of the payment under section 22b being subject to the

 

proration otherwise provided under this subsection and subsection

 

(4). If proration is necessary, state payments under each of the

 

other sections of this act from all state funding sources and state

 

appropriations to community colleges and state universities from

 

the state school aid fund shall be prorated in the manner

 

prescribed in subsection (4) as necessary to reflect the amount

 

available for expenditure from the state school aid fund for the

 

affected fiscal year. However, if the department of treasury

 

determines that proration will be required under this subsection,

 

or if the department of treasury determines that further proration

 

is required under this subsection after an initial proration has

 

already been made for a fiscal year, the department of treasury

 

shall notify the state budget director, and the state budget

 

director shall notify the legislature at least 30 calendar days or

 

6 legislative session days, whichever is more, before the

 

department reduces any payments under this act because of the

 

proration. During the 30 calendar day or 6 legislative session day

 

period after that notification by the state budget director, the

 

department shall not reduce any payments under this act because of


 

proration under this subsection. The legislature may prevent

 

proration from occurring by, within the 30 calendar day or 6

 

legislative session day period after that notification by the state

 

budget director, enacting legislation appropriating additional

 

funds from the general fund, countercyclical budget and economic

 

stabilization fund, state school aid fund balance, or another

 

source to fund the amount of the projected shortfall.

 

     (4) If proration is necessary under subsection (3), the

 

department shall calculate the proration in district and

 

intermediate district payments that is required under subsection

 

(3), and the department of treasury shall calculate the proration

 

in community college and state university payments that is required

 

under subsection (3), as follows:

 

     (a) The department and the department of treasury shall

 

calculate the percentage of total state school aid allocated under

 

this act and the public acts making appropriations for community

 

colleges and state universities for the affected fiscal year for

 

each of the following:

 

     (i) Districts.

 

     (ii) Intermediate districts.

 

     (iii) Entities receiving funding under this act other than

 

districts or intermediate districts.

 

     (iv) Community colleges and state universities.

 

     (b) The department shall recover a percentage of the proration

 

amount required under subsection (3) that is equal to the

 

percentage calculated under subdivision (a)(i) for districts by

 

reducing payments to districts. This reduction shall be made by


 

calculating an equal dollar amount per pupil as necessary to

 

recover this percentage of the proration amount and reducing each

 

district's total state school aid from state sources, other than

 

payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,

 

51a(2), 51a(12), 51c, 53a, and 152a, by that amount.

 

     (c) The department shall recover a percentage of the proration

 

amount required under subsection (3) that is equal to the

 

percentage calculated under subdivision (a)(ii) for intermediate

 

districts by reducing payments to intermediate districts. This

 

reduction shall be made by reducing the payments to each

 

intermediate district, other than payments under sections 11f, 11g,

 

26a, 26b, 51a(2), 51a(12), 53a, 56, and 152a, on an equal

 

percentage basis.

 

     (d) The department shall recover a percentage of the proration

 

amount required under subsection (3) that is equal to the

 

percentage calculated under subdivision (a)(iii) for entities

 

receiving funding under this act other than districts and

 

intermediate districts by reducing payments to these entities. This

 

reduction shall be made by reducing the payments to each of these

 

entities, other than payments under sections 11j, 26a, and 26b, on

 

an equal percentage basis.

 

     (e) The department of treasury shall recover a percentage of

 

the proration amount required under subsection (3) that is equal to

 

the percentage calculated under subdivision (a)(iv) for community

 

colleges and state universities that receive funding from the state

 

school aid fund by reducing payments to these community colleges

 

and state universities on an equal percentage basis.


 

     (5) Any general fund allocations under this act that are not

 

expended by the end of the state fiscal year are transferred to the

 

school aid stabilization fund created under section 11a.

 

     Sec. 11a. (1) The school aid stabilization fund is created as

 

a separate account within the state school aid fund established by

 

section 11 of article IX of the state constitution of 1963.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the school aid stabilization fund. The

 

state treasurer shall deposit into the school aid stabilization

 

fund all of the following:

 

     (a) Unexpended and unencumbered state school aid fund revenue

 

for a fiscal year that remains in the state school aid fund as of

 

the bookclosing for that fiscal year.

 

     (b) Money statutorily dedicated to the school aid

 

stabilization fund.

 

     (c) Money appropriated to the school aid stabilization fund.

 

     (3) Money available in the school aid stabilization fund may

 

not be expended without a specific appropriation from the school

 

aid stabilization fund. Money in the school aid stabilization fund

 

shall be expended only for purposes for which state school aid fund

 

money may be expended.

 

     (4) The state treasurer shall direct the investment of the

 

school aid stabilization fund. The state treasurer shall credit to

 

the school aid stabilization fund interest and earnings from fund

 

investments.

 

     (5) Money in the school aid stabilization fund at the close of

 

a fiscal year shall remain in the school aid stabilization fund and


 

shall not lapse to the unreserved school aid fund balance or the

 

general fund.

 

     (6) If the maximum amount appropriated under section 11 from

 

the state school aid fund for a fiscal year exceeds the amount

 

available for expenditure from the state school aid fund for that

 

fiscal year, there is appropriated from the school aid

 

stabilization fund to the state school aid fund an amount equal to

 

the projected shortfall as determined by the department of

 

treasury, but not to exceed available money in the school aid

 

stabilization fund. If the money in the school aid stabilization

 

fund is insufficient to fully fund an amount equal to the projected

 

shortfall, the state budget director shall notify the legislature

 

as required under section 11(3) and state payments in an amount

 

equal to the remainder of the projected shortfall shall be prorated

 

in the manner provided under section 11(4).

 

     (7) For 2010-2011, 2011-2012, in addition to the

 

appropriations in section 11, there is appropriated from the school

 

aid stabilization fund to the state school aid fund the amount

 

necessary to fully fund the allocations under this act.

 

     Sec. 11g. (1) From the appropriation in section 11, there is

 

allocated for this section an amount not to exceed $39,000,000.00

 

for the fiscal year ending September 30, 2011 2012 and for each

 

succeeding fiscal year through the fiscal year ending September 30,

 

2015, after which these payments will cease. These allocations are

 

for paying the amounts described in subsection (3) to districts and

 

intermediate districts, other than those receiving a lump-sum

 

payment under section 11f(2), that were not plaintiffs in the


 

consolidated cases known as Durant v State of Michigan, Michigan

 

supreme court docket no. 104458-104492 and that, on or before March

 

2, 1998, submitted to the state treasurer a waiver resolution

 

described in section 11f. The amounts paid under this section

 

represent offers of settlement and compromise of any claim or

 

claims that were or could have been asserted by these districts and

 

intermediate districts, as described in this section.

 

     (2) This section does not create any obligation or liability

 

of this state to any district or intermediate district that does

 

not submit a waiver resolution described in section 11f. This

 

section and any other provision of this act are not intended to

 

admit liability or waive any defense that is or would be available

 

to this state or its agencies, employees, or agents in any

 

litigation or future litigation with a district or intermediate

 

district regarding these claims or potential claims.

 

     (3) The amount paid each fiscal year to each district or

 

intermediate district under this section shall be 1 of the

 

following:

 

     (a) If the district or intermediate district does not borrow

 

money and issue bonds under section 11i, 1/30 of the total amount

 

listed in section 11h for the district or intermediate district

 

through the fiscal year ending September 30, 2013.

 

     (b) If the district or intermediate district borrows money and

 

issues bonds under section 11i, an amount in each fiscal year

 

calculated by the department of treasury that is equal to the debt

 

service amount in that fiscal year on the bonds issued by that

 

district or intermediate district under section 11i and that will


 

result in the total payments made to all districts and intermediate

 

districts in each fiscal year under this section being no more than

 

the amount appropriated under this section in each fiscal year.

 

     (4) The entire amount of each payment under this section each

 

fiscal year shall be paid on May 15 of the applicable fiscal year

 

or on the next business day following that date. If a district or

 

intermediate district borrows money and issues bonds under section

 

11i, the district or intermediate district shall use funds received

 

under this section to pay debt service on bonds issued under

 

section 11i. If a district or intermediate district does not borrow

 

money and issue bonds under section 11i, the district or

 

intermediate district shall use funds received under this section

 

only for the following purposes, in the following order of

 

priority:

 

     (a) First, to pay debt service on voter-approved bonds issued

 

by the district or intermediate district before the effective date

 

of this section.

 

     (b) Second, to pay debt service on other limited tax

 

obligations.

 

     (c) Third, for deposit into a sinking fund established by the

 

district or intermediate district under the revised school code.

 

     (5) To the extent payments under this section are used by a

 

district or intermediate district to pay debt service on debt

 

payable from millage revenues, and to the extent permitted by law,

 

the district or intermediate district may make a corresponding

 

reduction in the number of mills levied for debt service.

 

     (6) A district or intermediate district may pledge or assign


 

payments under this section as security for bonds issued under

 

section 11i, but shall not otherwise pledge or assign payments

 

under this section.

 

     Sec. 11j. From the appropriation in section 11, there is

 

allocated an amount not to exceed $5,167,800.00 for 2010-2011

 

$93,575,300.00 for 2011-2012 for payments to the school loan bond

 

redemption fund in the department of treasury on behalf of

 

districts and intermediate districts. Notwithstanding section 11 or

 

any other provision of this act, funds allocated under this section

 

are not subject to proration and shall be paid in full.

 

     Sec. 11k. For 2010-2011, 2011-2012, there is appropriated from

 

the general fund to the school loan revolving fund an amount equal

 

to the amount of school bond loans assigned to the Michigan finance

 

authority, not to exceed the total amount of school bond loans held

 

in reserve as long-term assets. As used in this section, "school

 

loan revolving fund" means that fund created in section 16c of the

 

shared credit rating act, 1985 PA 227, MCL 141.1066c.

 

     Sec. 11m. From the appropriations in section 11, there is

 

allocated for 2009-2010 an amount not to exceed $12,000,000.00 and

 

for 2010-2011 there is allocated 2011-2012 an amount not to exceed

 

$45,000,000.00 $20,000,000.00 for fiscal year cash-flow borrowing

 

costs solely related to the state school aid fund established by

 

section 11 of article IX of the state constitution of 1963.

 

     Sec. 12. It is the intent of the legislature to appropriate

 

and allocate for the fiscal year ending September 30, 2013 the same

 

amounts of money from the same sources for the same purposes as are

 

appropriated and allocated under this act for the fiscal year


 

ending September 30, 2012, as adjusted for changes in pupil

 

membership, taxable values, and special education costs.

 

     Sec. 15. (1) If a district or intermediate district fails to

 

receive its proper apportionment, the department, upon satisfactory

 

proof that the district or intermediate district was entitled

 

justly, shall apportion the deficiency in the next apportionment.

 

Subject to subsections (2) and (3), if a district or intermediate

 

district has received more than its proper apportionment, the

 

department, upon satisfactory proof, shall deduct the excess in the

 

next apportionment. Notwithstanding any other provision in this

 

act, state aid overpayments to a district, other than overpayments

 

in payments for special education or special education

 

transportation, may be recovered from any payment made under this

 

act other than a special education or special education

 

transportation payment. State aid overpayments made in special

 

education or special education transportation payments may be

 

recovered from subsequent special education or special education

 

transportation payments.

 

     (2) If the result of an audit conducted by or for the

 

department affects the current fiscal year membership, affected

 

payments shall be adjusted in the current fiscal year. A deduction

 

due to an adjustment made as a result of an audit conducted by or

 

for the department, or as a result of information obtained by the

 

department from the district, an intermediate district, the

 

department of treasury, or the office of auditor general, shall be

 

deducted from the district's apportionments when the adjustment is

 

finalized. At the request of the district and upon the district


 

presenting evidence satisfactory to the department of the hardship,

 

the department may grant up to an additional 4 years for the

 

adjustment if the district would otherwise experience a significant

 

hardship.

 

     (3) If, because of the receipt of new or updated data, the

 

department determines during a fiscal year that the amount paid to

 

a district or intermediate district under this act for a prior

 

fiscal year was incorrect under the law in effect for that year,

 

the department may make the appropriate deduction or payment in the

 

district's or intermediate district's allocation for the fiscal

 

year in which the determination is made. The deduction or payment

 

shall be calculated according to the law in effect in the fiscal

 

year in which the improper amount was paid.

 

     (4) Expenditures made by the department under this act that

 

are caused by the write-off of prior year accruals may be funded by

 

revenue from the write-off of prior year accruals.

 

     (5) In addition to funds appropriated in section 11 for all

 

programs and services, there is appropriated for 2010-2011 2011-

 

2012 for obligations in excess of applicable appropriations an

 

amount equal to the collection of overpayments, but not to exceed

 

amounts available from overpayments.

 

     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 adopts its annual operating

 

budget for the following school fiscal year, or after a board

 

adopts a subsequent revision to that budget, the district shall

 

make all of the following available through a link on its website

 

home page, or may make the information available through a link on

 

its intermediate district's website home page, in a form and manner

 

prescribed by the department:

 

     (a) The annual operating budget and subsequent budget

 

revisions.

 

     (b) Using data that have already been collected and submitted

 

to the department, a summary of district expenditures for the most

 

recent fiscal year for which they are available, expressed in the

 

following 2 pie charts:

 

     (i) A chart of personnel expenditures, broken into the

 

following subcategories:

 

     (A) Salaries and wages.


 

     (B) Employee benefit costs, including, but not limited to,

 

medical, dental, vision, life, disability, and long-term care

 

benefits.

 

     (C) Retirement benefit costs.

 

     (D) All other personnel costs.

 

     (ii) A chart of all district expenditures, broken into the

 

following subcategories:

 

     (A) Instruction.

 

     (B) Support services.

 

     (C) Business and administration.

 

     (D) Operations and maintenance.

 

     (c) Links to all of the following:

 

     (i) The current collective bargaining agreement for each

 

bargaining unit.

 

     (ii) Each health care benefits plan, including, but not limited

 

to, medical, dental, vision, disability, long-term care, or any

 

other type of benefits that would constitute health care services,

 

offered to any bargaining unit or employee in the district.

 

     (iii) The audit report of the audit conducted under subsection

 

(4) for the most recent fiscal year for which it is available.

 

     (iv) The bids required under section 5 of the public employee

 

health benefits act, 2007 PA 106, MCL 124.75.

 

     (d) The total salary and a description and cost of each fringe

 

benefit included in the compensation package for the superintendent

 

of the district and for each employee of the district whose salary

 

exceeds $100,000.00.

 

     (e) The annual amount spent on dues paid to associations.


 

     (f) The annual amount spent on lobbying or lobbying services.

 

As used in this subdivision, "lobbying" means that term as defined

 

in section 5 of 1978 PA 472, MCL 4.415.

 

     (3) For the information required under subsection (2)(a),

 

(2)(b)(i), and (2)(c), an intermediate district shall provide the

 

same information in the same manner as required for a district

 

under subsection (2).

 

     (4) For the purpose of determining the reasonableness of

 

expenditures and whether a violation of this act has occurred, all

 

of the following apply:

 

     (a) 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.

 

     (b) If a district operates in a single building with fewer

 

than 700 full-time equated pupils, if the district has stable

 

membership, and if the error rate of the immediately preceding 2

 

pupil accounting field audits of the district is less than 2%, the

 

district may have a pupil accounting field audit conducted

 

biennially but must continue to have desk audits for each pupil

 

count. The auditor must document compliance with the audit cycle in

 

the pupil auditing manual. As used in this subdivision, "stable


 

membership" means that the district's membership for the current

 

fiscal year varies from the district's membership for the

 

immediately preceding fiscal year by less than 5%.

 

     (c) An intermediate district's annual financial audit shall be

 

accompanied by the intermediate district's pupil accounting

 

procedures report.

 

     (c) (d) 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.

 

     (d) (e) The pupil and financial 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.

 

     (e) (f) Except as otherwise provided in this subsection, a All

 

of the following shall be done not later than November 15 each

 

year:

 

     (i) 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 department.

 

     (ii) The intermediate district shall file the annual financial

 

audit reports for the intermediate district with the department.

 

     (iii) The intermediate district shall forward the annual

 

financial enter the pupil membership 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.in the Michigan student data system.

 

     (f) (g) 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.

 

     (g) (h) Not later than December January 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.

 

     (5) 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.

 

     (6) 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.

 

     (7) 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.

 

     (8) 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.

 

     (9) If a district that is a public school academy purchases

 

property using money received under this act, the public school

 

academy shall retain ownership of the property unless the public

 

school academy sells the property at fair market value.


 

     (10) If a district or intermediate district does not comply

 

with subsections (4), (5), (6), and (7), 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 (4), (5), (6), and

 

(7). If the district or intermediate district does not comply with

 

subsections (4), (5), (6), and (7) by the end of the fiscal year,

 

the district or intermediate district forfeits the amount withheld.

 

     Sec. 20. (1) For 2009-2010 and for 2010-2011, 2011-2012, the

 

basic foundation allowance is $8,489.00 $8,149.00.

 

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

 

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

 

allowance in the amount specified in subsection (1).

 

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

 

of a district's foundation allowance shall be calculated as

 

follows, using in all calculations the total amount of the

 

district's foundation allowance as calculated before any proration:

 

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

 

immediately preceding state fiscal year that was at least equal to

 

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

 

adjustments made from 2006-2007 to the immediately preceding state

 

fiscal year in the lowest foundation allowance among all districts,

 

but less than the basic foundation allowance for the immediately

 

preceding state fiscal year, the district shall receive a

 

foundation allowance in an amount equal to the sum of the

 

district's foundation allowance for the immediately preceding state


 

fiscal year plus the difference between twice the dollar amount of

 

the adjustment from the immediately preceding state fiscal year to

 

the current state fiscal year made in the basic foundation

 

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

 

immediately preceding state fiscal year to the current state fiscal

 

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

 

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

 

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

 

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

 

to the immediately preceding state fiscal year in the lowest

 

foundation allowance among all districts) divided by the difference

 

between the basic foundation allowance for the current state fiscal

 

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

 

adjustments made from 2006-2007 to the immediately preceding state

 

fiscal year in the lowest foundation allowance among all

 

districts]. For 2009-2010 and for 2010-2011, 2011-2012, for a

 

district that had a foundation allowance for the immediately

 

preceding state fiscal year that was at least equal to the sum of

 

$7,108.00 plus the total dollar amount of all adjustments made from

 

2006-2007 to the immediately preceding state fiscal year in the

 

lowest foundation allowance among all districts, but less than the

 

basic foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive a foundation allowance in

 

an amount equal to the district's foundation allowance for the

 

immediately preceding state 2010-2011 fiscal year minus $340.00.

 

However, the foundation allowance for a district that had less than

 

the basic foundation allowance for the immediately preceding state


 

fiscal year shall not exceed the basic foundation allowance for the

 

current state fiscal year.

 

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

 

district that in the immediately preceding state fiscal year had a

 

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

 

the basic foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive a foundation allowance in

 

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

 

for the immediately preceding state 2010-2011 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 minus $340.00.

 

     (c) Except as otherwise provided in this subdivision and

 

subdivision (d), 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. Except as

 

otherwise provided in subdivision (d), for 2011-2012, for a


 

district that in the 1994-1995 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 2010-2011 fiscal year minus $340.00.

 

     (d) If House Bill No. 6212 of the 95th Legislature is enacted

 

into law, then beginning Beginning in 2011-2012, for a district

 

that in the 1994-95 state fiscal year had a foundation allowance

 

greater than $6,500.00 and that had a foundation allowance for the

 

2009-2010 state fiscal year, as otherwise calculated under this

 

section, that was less than the basic foundation allowance, the

 

district's foundation allowance for 2011-2012 and each succeeding

 

fiscal year shall be considered to be an amount equal to the basic

 

foundation allowance.

 

     (e) 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.

 

     (f) 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.

 

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

 

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

 

2007 foundation allowance shall be considered to have been an


 

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

 

foundation allowance as otherwise calculated under this section

 

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

 

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

 

2007.

 

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

 

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

 

the district's foundation allowance or the basic foundation

 

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

 

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

 

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

 

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

 

district with certified mills exceeding 12, the product of the

 

taxable value per membership pupil of property in the district that

 

is commercial personal property times the certified mills minus 12

 

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

 

the district captured under tax increment financing acts divided by

 

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

 

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

 

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

 

plus the difference between the district's foundation allowance for

 

the current state fiscal year and the district's foundation

 

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

 

product of the taxable value per membership pupil of all property

 

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

 

certified mills and, for a district with certified mills exceeding

 

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


 

property in the district that is commercial personal property times

 

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

 

valorem property tax revenue of the district captured under tax

 

increment financing acts divided by the district's membership

 

excluding special education pupils. For a district that has a

 

millage reduction required under section 31 of article IX of the

 

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

 

foundation allowance shall be calculated as if that reduction did

 

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

 

to this state under title XIV of the American recovery and

 

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

 

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

 

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

 

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

 

a public school academy.

 

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

 

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

 

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

 

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

 

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

 

subsection (19), (17), the allocation calculated under this section

 

shall not include the adjustment described in subsection (19).

 

(17). For a pupil enrolled pursuant to section 105 or 105c in a

 

district other than the pupil's district of residence, the

 

allocation calculated under this section shall be based on the

 

lesser of the foundation allowance of the pupil's district of

 

residence or the foundation allowance of the educating district.


 

For a pupil in membership in a K-5, K-6, or K-8 district who is

 

enrolled in another district in a grade not offered by the pupil's

 

district of residence, the allocation calculated under this section

 

shall be based on the foundation allowance of the educating

 

district if the educating district's foundation allowance is

 

greater than the foundation allowance of the pupil's district of

 

residence. The calculation under this subsection shall take into

 

account a district's per pupil allocation under section 20j(2).

 

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

 

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

 

education pupils, in a public school academy or a university

 

school, the allocation calculated under this section is an amount

 

per membership pupil other than special education pupils in the

 

public school academy or university school equal to the foundation

 

allowance of the district in which the public school academy or

 

university school is located or the state maximum public school

 

academy allocation, whichever is less. However, a public school

 

academy or university school that had an allocation under this

 

subsection before 2009-2010 that was 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 shall not have that allocation

 

reduced as a result of the 2010 amendment to this subsection.

 

Notwithstanding section 101, for a public school academy that

 

begins operations after the pupil membership count day, the amount

 

per membership pupil calculated under this subsection shall be


 

adjusted by multiplying that amount per membership pupil by the

 

number of hours of pupil instruction provided by the public school

 

academy after it begins operations, as determined by the

 

department, divided by the minimum number of hours of pupil

 

instruction required under section 101(3). The result of this

 

calculation shall not exceed the amount per membership pupil

 

otherwise calculated under this subsection.

 

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

 

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

 

the district, then the amount per membership pupil calculated under

 

this section for a public school academy located in the district

 

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

 

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

 

property in the district that is nonexempt property times the

 

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

 

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

 

of property in the district that is commercial personal property

 

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

 

valorem property tax revenue of the district captured under tax

 

increment financing acts divided by the district's membership

 

excluding special education pupils, in the school fiscal year

 

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

 

resident pupils in membership in 1 or more public school academies

 

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

 

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

 

described in this subsection shall pay to the authorizing body that

 

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


 

district for forwarding to the public school academy an amount

 

equal to that local school operating revenue per membership pupil

 

for each resident pupil in membership other than special education

 

pupils in the public school academy, as determined by the

 

department.

 

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

 

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

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing 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, supportive housing 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, supportive

 

housing 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, supportive housing 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.

 

     (8) (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).

 

     (9) (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.

 

     (10) (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.

 

     (11) (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

 

2009-2010 and for 2010-2011, 2011-2012, the index shall be 1.00

 

0.95353. 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.

 

     (12) (14) If the principals at the revenue estimating

 

conference reach a consensus on the index described in subsection

 

(13)(c) (11)(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.

 

     (13) (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.

 

     (14) (16) For Subject to subsection (22), 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.

 

     (15) (17) For Subject to subsection (22), 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.

 

     (16) (18) For Subject to subsection (22), 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.

 

     (17) (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. The cumulative total payments

 

resulting from the adjustment under this subsection and allocated

 

under section 22b shall not exceed $100.00.

 

     (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.


 

     (18) (21) For Subject to subsection (22), 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.

 

     (19) (22) For Subject to subsection (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.

 

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

 

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

 

calculations under this section shall be used to determine the

 

amount of state payments under section 22b.

 

     (21) (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.


 

     (22) The cumulative total payments resulting from the

 

adjustments under subsections (14), (15), (16), (18), and (19) and

 

allocated under section 22b shall not exceed $100.00.

 

     (23) (26) 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 allocation", except as

 

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

 

allocation as calculated by adding the highest per-pupil allocation


 

among all public school academies for the immediately preceding

 

state fiscal year plus the difference between twice the dollar

 

amount of the adjustment from the immediately preceding state

 

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

 

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

 

the immediately preceding state fiscal year to the current state

 

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

 

times (the difference between the highest per-pupil allocation

 

among all public school academies for the immediately preceding

 

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

 

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

 

preceding state fiscal year in the lowest per-pupil allocation

 

among all public school academies) divided by the difference

 

between the basic foundation allowance for the current state fiscal

 

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

 

adjustments made from 2006-2007 to the immediately preceding state

 

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

 

school academies]. For 2009-2010 and 2010-2011, 2011-2012, maximum

 

public school academy allocation means $7,580.00 $7,240.00.

 

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

 

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

 

particular calculation is made.

 

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

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, or commercial personal property.

 

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


 

"qualified forest property", "supportive housing property",

 

"industrial personal property", and "commercial personal property"

 

mean those terms as defined in 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. 20d. In making the final determination required under

 

former section 20a of a district's combined state and local revenue

 

per membership pupil in 1993-94 and in making calculations under

 

section 20 for 2010-2011, 2011-2012, the department and the

 

department of treasury shall comply with all of the following:


 

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

 

per membership pupil in the 1994-95 state fiscal year of $6,500.00

 

or more and served as a fiscal agent for a state board designated

 

area vocational education center in the 1993-94 school year, total

 

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

 

pursuant to this act in 1993-94 shall exclude payments made under

 

former section 146 and under section 147 on behalf of the

 

district's employees who provided direct services to the area

 

vocational education center. Not later than June 30, 1996, the

 

department shall make an adjustment under this subdivision to the

 

district's combined state and local revenue per membership pupil in

 

the 1994-95 state fiscal year and the department of treasury shall

 

make a final certification of the number of mills that may be

 

levied by the district under section 1211 of the revised school

 

code, MCL 380.1211, as a result of the adjustment under this

 

subdivision.

 

     (b) If a district had an adjustment made to its 1993-94 total

 

state school aid that excluded payments made under former section

 

146 and under section 147 on behalf of the district's employees who

 

provided direct services for intermediate district center programs

 

operated by the district under article 5, if nonresident pupils

 

attending the center programs were included in the district's

 

membership for purposes of calculating the combined state and local

 

revenue per membership pupil for 1993-94, and if there is a signed

 

agreement by all constituent districts of the intermediate district

 

that an adjustment under this subdivision shall be made, the

 

foundation allowances for 1995-96 and 1996-97 of all districts that


 

had pupils attending the intermediate district center program

 

operated by the district that had the adjustment shall be

 

calculated as if their combined state and local revenue per

 

membership pupil for 1993-94 included resident pupils attending the

 

center program and excluded nonresident pupils attending the center

 

program.

 

     Sec. 22a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $5,796,241,000.00 for 2009-2010

 

and an amount not to exceed $5,764,000,000.00 for 2010-2011

 

$5,673,500,000.00 for 2011-2012 for payments to districts,

 

qualifying university schools, and qualifying public school

 

academies to guarantee each district, qualifying university school,

 

and qualifying public school academy an amount equal to its 1994-95

 

total state and local per pupil revenue for school operating

 

purposes under section 11 of article IX of the state constitution

 

of 1963. Pursuant to section 11 of article IX of the state

 

constitution of 1963, this guarantee does not apply to a district

 

in a year in which the district levies a millage rate for school

 

district operating purposes less than it levied in 1994. However,

 

subsection (2) applies to calculating the payments under this

 

section. Funds allocated under this section that are not expended

 

in the state fiscal year for which they were allocated, as

 

determined by the department, may be used to supplement the

 

allocations under sections 22b and 51c in order to fully fund those

 

calculated allocations for the same fiscal year.

 

     (2) To ensure that a district receives an amount equal to the

 

district's 1994-95 total state and local per pupil revenue for


 

school operating purposes, there is allocated to each district a

 

state portion of the district's 1994-95 foundation allowance in an

 

amount calculated as follows:

 

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

 

portion of a district's 1994-95 foundation allowance is an amount

 

equal to the district's 1994-95 foundation allowance or $6,500.00,

 

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. 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.

 

     (b) For a district that had a 1994-95 foundation allowance

 

greater than $6,500.00, the state payment under this subsection

 

shall be the sum of the amount calculated under subdivision (a)

 

plus the amount calculated under this subdivision. The amount

 

calculated under this subdivision shall be equal to the difference

 

between the district's 1994-95 foundation allowance minus $6,500.00

 

and the current year hold harmless school operating taxes per

 

pupil. If the result of the calculation under subdivision (a) is


 

negative, the negative amount shall be an offset against any state

 

payment calculated under this subdivision. If the result of a

 

calculation under this subdivision is negative, there shall not be

 

a state payment or a deduction under this subdivision. The taxable

 

values per membership pupil used in the calculations under this

 

subdivision are as adjusted by ad valorem property tax revenue

 

captured under tax increment financing acts divided by the

 

district's membership.

 

     (3) Beginning in 2003-2004, for pupils in membership in a

 

qualifying public school academy or qualifying university school,

 

there is allocated under this section to the authorizing body that

 

is the fiscal agent for the qualifying public school academy for

 

forwarding to the qualifying public school academy, or to the board

 

of the public university operating the qualifying university

 

school, an amount equal to the 1994-95 per pupil payment to the

 

qualifying public school academy or qualifying university school

 

under section 20.

 

     (4) A district, qualifying university school, or qualifying

 

public school academy may use funds allocated under this section in

 

conjunction with any federal funds for which the district,

 

qualifying university school, or qualifying public school academy

 

otherwise would be eligible.

 

     (5) For a district that is formed or reconfigured after June

 

1, 2000 by consolidation of 2 or more districts or by annexation,

 

the resulting district's 1994-95 foundation allowance under this

 

section beginning after the effective date of the consolidation or

 

annexation shall be the average of the 1994-95 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

 

in the state fiscal year in which the consolidation takes place who

 

reside in the geographic area of each of the original districts. If

 

an affected district's 1994-95 foundation allowance is less than

 

the 1994-95 basic foundation allowance, the amount of that

 

district's 1994-95 foundation allowance shall be considered for the

 

purpose of calculations under this subsection to be equal to the

 

amount of the 1994-95 basic foundation allowance.

 

     (6) As used in this section:

 

     (a) "1994-95 foundation allowance" means a district's 1994-95

 

foundation allowance calculated and certified by the department of

 

treasury or the superintendent under former section 20a as enacted

 

in 1993 PA 336 and as amended by 1994 PA 283.

 

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

 

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

 

1993-94.

 

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

 

for which a particular calculation is made.

 

     (d) "Current year hold harmless school operating taxes per

 

pupil" means the per pupil revenue generated by multiplying a

 

district's 1994-95 hold harmless millage by the district's current

 

year taxable value per membership pupil.

 

     (e) "Hold harmless millage" means, for a district with a 1994-

 

95 foundation allowance greater than $6,500.00, the number of mills

 

by which the exemption from the levy of school operating taxes on a


 

homestead, qualified agricultural property, qualified forest

 

property, supportive housing property, industrial personal

 

property, and commercial personal property could be reduced as

 

provided in section 1211 of the revised school code, MCL 380.1211,

 

and the number of mills of school operating taxes that could be

 

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

 

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

 

of treasury for the 1994 tax year.

 

     (f) "Homestead", "qualified agricultural property", "qualified

 

forest property", "supportive housing property", "industrial

 

personal property", and "commercial personal property" mean those

 

terms as defined in section 1211 of the revised school code, MCL

 

380.1211.

 

     (g) "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.

 

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

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, or commercial personal property.

 

     (i) "Qualifying public school academy" means a public school

 

academy that was in operation in the 1994-95 school year and is in

 

operation in the current state fiscal year.

 

     (j) "Qualifying university school" means a university school

 

that was in operation in the 1994-95 school year and is in

 

operation in the current fiscal year.

 

     (k) "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.

 

     (l) "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.

 

     (m) "Taxable value per membership pupil" means each of the

 

following divided by the district's membership:

 

     (i) For the number of mills by which the exemption from the

 

levy of school operating taxes on a homestead, qualified

 

agricultural property, qualified forest property, supportive

 

housing property, industrial personal property, and commercial

 

personal property may be reduced as provided in section 1211 of the

 

revised school code, MCL 380.1211, the taxable value of homestead,

 

qualified agricultural property, qualified forest property,

 

supportive housing property, industrial personal property, and

 

commercial personal property for the calendar year ending in the

 

current state fiscal year.

 

     (ii) For the number of mills of school operating taxes that may

 

be levied on all property as provided in section 1211(2) of the

 

revised school code, MCL 380.1211, the taxable value of all

 

property for the calendar year ending in the current state fiscal

 

year.

 

     Sec. 22b. (1) From the state funds appropriated in section 11,


 

there is allocated for 2009-2010 an amount not to exceed

 

$3,289,000,000.00 and there is allocated for 2010-2011 2011-2012 an

 

amount not to exceed $3,573,500,000.00 $3,036,213,200.00 for

 

discretionary nonmandated payments to districts under this section.

 

Funds allocated under this section that are not expended in the

 

state fiscal year for which they were allocated, as determined by

 

the department, may be used to supplement the allocations under

 

sections 22a and 51c in order to fully fund those calculated

 

allocations for the same fiscal year.

 

     (2) In addition to the funds allocated in subsection (1),

 

there is allocated an amount estimated at $450,000,000.00 for 2009-

 

2010 and there is allocated an amount estimated at $184,256,600.00

 

for 2010-2011 from the federal funds awarded to this state under

 

title XIV of the American recovery and reinvestment act of 2009,

 

Public Law 111-5. These funds shall be distributed in a form and

 

manner determined by the department based on an equal dollar amount

 

per the number of membership pupils used to calculate the final

 

state aid payment of the immediately preceding fiscal year and

 

shall be expended in a manner prescribed by federal law.

 

     (2) (3) Subject to subsection (4) (3) and section 11, the

 

allocation to a district under this section shall be an amount

 

equal to the sum of the amounts calculated under sections 20, 20j,

 

51a(2), 51a(3), and 51a(12), minus the sum of the allocations to

 

the district under sections 22a and 51c.

 

     (3) (4) In order to receive an allocation under subsection

 

(1), each district shall do all of the following:

 

     (a) Administer in each grade level that it operates in grades


 

1 to 5 a standardized assessment approved by the department of

 

grade-appropriate basic educational skills. A district may use the

 

Michigan literacy progress profile to satisfy this requirement for

 

grades 1 to 3. Also, if the revised school code is amended to

 

require annual assessments at additional grade levels, in order to

 

receive an allocation under this section each district shall comply

 

with that requirement.

 

     (b) Comply with sections 1278a and 1278b of the revised school

 

code, MCL 380.1278a and 380.1278b.

 

     (c) Furnish data and other information required by state and

 

federal law to the center and the department in the form and manner

 

specified by the center or the department, as applicable.

 

     (d) Comply with section 1230g of the revised school code, MCL

 

380.1230g.

 

     (4) (5) Districts are encouraged to use funds allocated under

 

this section for the purchase and support of payroll, human

 

resources, and other business function software that is compatible

 

with that of the intermediate district in which the district is

 

located and with other districts located within that intermediate

 

district.

 

     (5) (6) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this

 

state related to commercial or industrial property tax appeals,

 

including, but not limited to, appeals of classification, that

 

impact revenues dedicated to the state school aid fund.

 

     (6) (7) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this


 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be

 

made in full before any proration of remaining payments under this

 

section.

 

     (7) (8) It is the intent of the legislature that all

 

constitutional obligations of this state have been fully funded

 

under sections 22a, 31d, 51a, and 51c. 51c, and 152a. If a claim is

 

made by an entity receiving funds under this act that challenges

 

the legislative determination of the adequacy of this funding or

 

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 

discretionary funds for nonmandated payments under this section the

 

amount as may be necessary to satisfy the claim before making any

 

payments to districts under subsection (3). (2). If funds are

 

escrowed, the escrowed funds are a work project appropriation and

 

the funds are carried forward into the following fiscal year. The

 

purpose of the work project is to provide for any payments that may

 

be awarded to districts as a result of litigation. The work project

 

shall be completed upon resolution of the litigation.

 

     (8) (9) If the local claims review board or a court of

 

competent jurisdiction makes a final determination that this state

 

is in violation of section 29 of article IX of the state

 

constitution of 1963 regarding state payments to districts, the

 

state budget director shall use work project funds under subsection

 

(8) (7) or allocate from the discretionary funds for nonmandated


 

payments under this section the amount as may be necessary to

 

satisfy the amount owed to districts before making any payments to

 

districts under subsection (3).(2).

 

     (9) (10) If a claim is made in court that challenges the

 

legislative determination of the adequacy of funding for this

 

state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 

an expedited review of the claim by the local claims review board.

 

If the claim exceeds $10,000,000.00, this state may remove the

 

action to the court of appeals, and the court of appeals shall have

 

and shall exercise jurisdiction over the claim.

 

     (10) (11) If payments resulting from a final determination by

 

the local claims review board or a court of competent jurisdiction

 

that there has been a violation of section 29 of article IX of the

 

state constitution of 1963 exceed the amount allocated for

 

discretionary nonmandated payments under this section, the

 

legislature shall provide for adequate funding for this state's

 

constitutional obligations at its next legislative session.

 

     (11) (12) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX medicaid funds is

 

filed against this state, then, for the purpose of addressing

 

potential liability under such a lawsuit, the state budget director

 

may place funds allocated under this section in escrow or allocate

 

money from the funds otherwise allocated under this section, up to

 

a maximum of 50% of the amount allocated in subsection (1). If

 

funds are placed in escrow under this subsection, those funds are a

 

work project appropriation and the funds are carried forward into


 

the following fiscal year. The purpose of the work project is to

 

provide for any payments that may be awarded to districts as a

 

result of the litigation. The work project shall be completed upon

 

resolution of the litigation. In addition, this state reserves the

 

right to terminate future federal title XIX medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

funds is challenged in the lawsuit. As used in this subsection,

 

"title XIX" means title XIX of the social security act, 42 USC 1396

 

to 1396v.

 

     Sec. 22d. (1) From the appropriation in section 11, an amount

 

not to exceed $2,025,000.00 $4,050,000.00 is allocated for 2010-

 

2011 2011-2012 for additional payments to small, geographically

 

isolated supplemental payments to rural districts under this

 

section.

 

     (2) From the allocation under subsection (1), there is

 

allocated for 2010-2011 2011-2012 an amount not to exceed

 

$750,000.00 $1,500,000.00 for payments under this subsection to

 

districts that meet all of the following:

 

     (a) Operates grades K to 12.

 

     (b) Has fewer than 250 pupils in membership.

 

     (c) Each school building operated by the district meets at

 

least 1 of the following:

 

     (i) Is located in the Upper Peninsula at least 30 miles from

 

any other public school building.

 

     (ii) Is located on an island that is not accessible by bridge.

 

     (3) The amount of the additional funding to each eligible

 

district under subsection (2) shall be determined under a spending


 

plan developed as provided in this subsection and approved by the

 

superintendent of public instruction. The spending plan shall be

 

developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The

 

intermediate superintendents shall review the financial situation

 

of each eligible district, determine the minimum essential

 

financial needs of each eligible district, and develop and agree on

 

a spending plan that distributes the available funding under

 

subsection (2) to the eligible districts based on those financial

 

needs. The intermediate superintendents shall submit the spending

 

plan to the superintendent of public instruction for approval. Upon

 

approval by the superintendent of public instruction, the amounts

 

specified for each eligible district under the spending plan are

 

allocated under subsection (2) and shall be paid to the eligible

 

districts in the same manner as payments under section 22b.

 

     (4) Subject to subsection (6), from the allocation in

 

subsection (1), there is allocated for 2010-2011 2011-2012 an

 

amount not to exceed $1,275,000.00 $2,550,000.00 for payments under

 

this subsection to districts that meet all of the following:

 

     (a) The district has 5.0 or fewer pupils per square mile as

 

determined by the department.

 

     (b) The district has a total square mileage greater than 200.0

 

or is 1 of 2 districts that have consolidated transportation

 

services and have a combined total square mileage greater than

 

200.0.

 

     (5) The funds allocated under subsection (4) shall be

 

allocated on an equal per pupil basis.


 

     (6) A district receiving funds allocated under subsection (2)

 

is not eligible for funding allocated under subsection (4).

 

     Sec. 22e. (1) Beginning in 2008-2009, an amount will be

 

allocated each fiscal year from the appropriation in section 11 for

 

additional payments under this subsection to districts that meet

 

the eligibility requirements under subsection (2). For 2010-2011,

 

2011-2012, there is allocated for this purpose from the

 

appropriation in section 11 an amount not to exceed

 

$1,300,000.00.$700,000.00.

 

     (2) To be eligible for a payment under subsection (1), a

 

district must be determined by the department and the department of

 

treasury to meet all of the following:

 

     (a) The district levies 1 of the following operating millage

 

amounts:

 

     (i) All of the operating millage it is authorized to levy under

 

section 1211 of the revised school code, MCL 380.1211.

 

     (ii) The amount of operating millage it is authorized to levy

 

after a voluntary reduction of its operating millage rate adopted

 

by the board of the district.

 

     (iii) The amount of operating millage it is authorized to levy

 

after a millage reduction required under the limitation of section

 

31 of article IX of the state constitution of 1963, if a ballot

 

question asking for approval to levy millage in excess of the

 

limitation has been rejected in the district.

 

     (b) The district receives a reduced amount of local school

 

operating revenue under section 1211 of the revised school code,

 

MCL 380.1211, as a result of the exemptions of industrial personal


 

property and commercial personal property that were enacted in 2007

 

PA 37.

 

     (c) The district does not receive any state portion of its

 

foundation allowance, as calculated under section 20(4).

 

     (d) The district has 500 or fewer pupils in membership.

 

     (3) Subject to subsection (4), the amount of the additional

 

funding to each eligible district under subsection (1) is the sum

 

of the following and shall be paid to the eligible districts in the

 

same manner as payments under section 22b:

 

     (a) The product of the taxable value of the district's

 

industrial personal property for the calendar year ending in the

 

fiscal year multiplied by the total number of mills the district

 

levies on nonexempt property under section 1211 of the revised

 

school code, MCL 380.1211, for that calendar year.

 

     (b) The product of the taxable value of the district's

 

commercial personal property for the calendar year ending in the

 

fiscal year multiplied by the lesser of 12 mills or the total

 

number of mills the district levies on nonexempt property under

 

section 1211 of the revised school code, MCL 380.1211, for that

 

calendar year.

 

     (4) The amount of the additional funding to an eligible

 

district under subsection (1) for a fiscal year shall not exceed

 

15% of the total amount allocated under subsection (1) for that

 

fiscal year.

 

     (5) If the total amount of the payments calculated under

 

subsection (3) for a fiscal year exceeds the allocation under

 

subsection (1) for that fiscal year, the payment to each district


 

under subsection (1) shall be prorated on an equal percentage

 

basis.

 

     (6) In addition to the amount allocated under subsection (1),

 

for 2010-2011 only there is also allocated from the appropriation

 

in section 11 the amount of $500,000.00 to a district that is

 

eligible for a payment under subsection (1) and that levied 1.8

 

mills in 1993 to finance an operating deficit.

 

     Sec. 22f. From the amount appropriated in section 11, there is

 

allocated an amount not to exceed $200,000,000.00 for 2011-2012 for

 

grants to districts and intermediate districts for the purposes of

 

implementing best practices, retirement reform, tenure appeals,

 

student testing reforms, remedial education at community colleges

 

or state institutions of higher education, or other purposes that

 

will be specified in legislation enacted before the beginning of

 

the 2011-2012 fiscal year. Best practices may include, but are not

 

limited to, rewarding districts and intermediate districts for

 

service sharing, consolidation of administration, performance-based

 

compensation, health care cost containment and premium sharing, and

 

fiscal transparency.

 

     Sec. 24. (1) From the appropriation in section 11, there is

 

allocated for 2010-2011 2011-2012 an amount not to exceed

 

$8,000,000.00 $7,500,000.00 for payments to the educating district

 

or intermediate district for educating pupils assigned by a court

 

or the department of human services to reside in or to attend a

 

juvenile detention facility or child caring institution licensed by

 

the department of human services and approved by the department to

 

provide an on-grounds education program. The amount of the payment


Senate Bill No. 183 as amended April 27, 2011

 

under this section to a district or intermediate district shall be

 

calculated as prescribed under subsection (2).

 

     (2) The total amount allocated under this section shall be

 

allocated by paying to the educating district or intermediate

 

district an amount equal to the lesser of the district's or

 

intermediate district's added cost or the department's approved per

 

pupil allocation for the district or intermediate district. For the

 

purposes of this subsection:

 

     (a) "Added cost" means 100% of the added cost each fiscal year

 

for educating all pupils assigned by a court or the department of

 

human services to reside in or to attend a juvenile detention

 

facility or child caring institution licensed by the department of

 

human services or the <<department of energy, labor, and economic

 

growth WORKFORCE DEVELOPMENT AGENCY>> and approved by the department

to provide an on-grounds

 

education program. Added cost shall be computed by deducting all

 

other revenue received under this act for pupils described in this

 

section from total costs, as approved by the department, in whole

 

or in part, for educating those pupils in the on-grounds education

 

program or in a program approved by the department that is located

 

on property adjacent to a juvenile detention facility or child

 

caring institution. Costs reimbursed by federal funds are not

 

included.

 

     (b) "Department's approved per pupil allocation" for a

 

district or intermediate district shall be determined by dividing

 

the total amount allocated under this section for a fiscal year by

 

the full-time equated membership total for all pupils approved by

 

the department to be funded under this section for that fiscal year


 

for the district or intermediate district.

 

     (3) A district or intermediate district educating pupils

 

described in this section at a residential child caring institution

 

may operate, and receive funding under this section for, a

 

department-approved on-grounds educational program for those pupils

 

that is longer than 181 days, but not longer than 233 days, if the

 

child caring institution was licensed as a child caring institution

 

and offered in 1991-92 an on-grounds educational program that was

 

longer than 181 days but not longer than 233 days and that was

 

operated by a district or intermediate district.

 

     (4) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

     Sec. 24a. From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,751,300.00 for 2009-2010 and

 

there is allocated an amount not to exceed $1,440,000.00

 

$1,197,500,00. for 2010-2011 2011-2012 for payments to intermediate

 

districts for pupils who are placed in juvenile justice service

 

facilities operated by the department of human services. Each

 

intermediate district shall receive an amount equal to the state

 

share of those costs that are clearly and directly attributable to

 

the educational programs for pupils placed in facilities described

 

in this section that are located within the intermediate district's

 

boundaries. The intermediate districts receiving payments under

 

this section shall cooperate with the department of human services

 

to ensure that all funding allocated under this section is utilized

 

by the intermediate district and department of human services for

 

educational programs for pupils described in this section. Pupils


 

described in this section are not eligible to be funded under

 

section 24. However, a program responsibility or other fiscal

 

responsibility associated with these pupils shall not be

 

transferred from the department of human services to a district or

 

intermediate district unless the district or intermediate district

 

consents to the transfer.

 

     Sec. 24c. From the appropriation in section 11, there is

 

allocated an amount not to exceed $742,300.00 for 2010-2011 2011-

 

2012 for payments to districts for pupils who are enrolled in a

 

nationally administered community-based education and youth

 

mentoring program, known as the youth challenge program, that is

 

located within the district and is administered by the department

 

of military and veterans affairs. Both of the following apply to a

 

district receiving payments under this section:

 

     (a) The district shall contract with the department of

 

military and veterans affairs to ensure that all funding allocated

 

under this section is utilized by the district and the department

 

of military and veterans affairs for the youth challenge program.

 

     (b) The district may retain for its administrative expenses an

 

amount not to exceed 3% of the amount of the payment the district

 

receives under this section.

 

     Sec. 26a. From the state school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$26,300,000.00 $13,150,000.00 for 2010-2011 2011-2012 to reimburse

 

districts and intermediate districts pursuant to section 12 of the

 

Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for an

 

estimated 50% of taxes levied in 2010. 2011. The allocations shall


 

be made not later than 60 days after the department of treasury

 

certifies to the department and to the state budget director that

 

the department of treasury has received all necessary information

 

to properly determine the amounts due to each eligible recipient.

 

     Sec. 31a. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated for 2010-2011 2011-

 

2012 an amount not to exceed $317,695,500.00 $312,695,500.00 for

 

payments to eligible districts and eligible public school academies

 

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 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 not later

 

than the fifth Wednesday after the pupil membership count day of

 

the immediately preceding fiscal year and adjusted not later than

 

December 31 of the immediately preceding fiscal year in the form

 

and manner prescribed by the center. However, for a public school

 

academy that began operations as a public school academy 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 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


 

and reported to the department not later than the fifth Wednesday

 

after the pupil membership count day.

 

     (2) To be eligible to receive funding under this section,

 

other than funding under subsection (6) or (7), a district or

 

public school academy 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 must meet all of the following:

 

     (a) The sum of the district's or public school academy'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 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 shall receive

 

under this section for each membership pupil in the district or

 

public school academy 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 not later than the fifth Wednesday after the pupil

 

membership count day 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 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 per membership

 

pupil amount calculated under section 20 for the current state

 

fiscal year. A public school academy that began operations as a

 

public school academy 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 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 not later than the

 

fifth Wednesday after the pupil membership count day 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 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 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 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 20% of the funds it receives under this

 

section for school security. A district or public school academy

 

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 under this section in the

 

immediately preceding year and already being used by the district

 

or public school academy 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 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 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 2010-2011 2011-2012 an amount not to exceed

 

$3,557,300.00 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. 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 1/3 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 2010-2011 2011-2012 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 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 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 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 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 complies with

 

this subsection. If the district or public school academy 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 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 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 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 receiving funds under this

 

section that have been determined by the department to meet the

 

adequate yearly progress standards of the 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 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 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 may use

 

the funds identified in the application for any purpose identified


 

in the plan.

 

     (13) A district or public school academy 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) Except as otherwise provided in subsection (18), a

 

district or public school academy 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 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 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

 

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 or

 

public school academy 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 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) For a district described in subsection (16), the total

 

allocation to the district otherwise due under this section, after

 

any reduction under subsection (14), shall be further reduced by

 

25%.

 

     (16) (19) As used in this section, "at-risk pupil" means a

 

pupil for whom the district 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 core academic

 

curricular objectives in English language arts or mathematics.

 

     Sec. 31d. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $22,495,100.00 for 2010-2011

 

2011-2012 for the purpose of making payments to districts and other

 

eligible entities under this section.

 

     (2) The amounts allocated from state sources under this

 

section shall be used to pay the amount necessary to reimburse

 

districts for 6.0127% of the necessary costs of the state mandated

 

portion of the school lunch programs provided by those districts.

 

The amount due to each district under this section shall be

 

computed by the department using the methods of calculation adopted

 

by the Michigan supreme court in the consolidated cases known as

 

Durant v State of Michigan, Michigan supreme court docket no.

 

104458-104492.

 

     (3) The payments made under this section include all state

 

payments made to districts so that each district receives at least


 

6.0127% of the necessary costs of operating the state mandated

 

portion of the school lunch program in a fiscal year.

 

     (4) The payments made under this section to districts and

 

other eligible entities that are not required under section 1272a

 

of the revised school code, MCL 380.1272a, to provide a school

 

lunch program shall be in an amount not to exceed $10.00 per

 

eligible pupil plus 5 cents for each free lunch and 2 cents for

 

each reduced price lunch provided, as determined by the department.

 

     (5) From the federal funds appropriated in section 11, there

 

is allocated for 2010-2011 2011-2012 all available federal funding,

 

estimated at $400,000,000.00, for the national school lunch program

 

and all available federal funding, estimated at $2,506,000.00, for

 

the emergency food assistance program.

 

     (6) Notwithstanding section 17b, payments to eligible entities

 

other than districts under this section shall be paid on a schedule

 

determined by the department.

 

     (7) In purchasing food for a school lunch program funded under

 

this section, preference shall be given to food that is grown or

 

produced by Michigan businesses if it is competitively priced and

 

of comparable quality.

 

     Sec. 31f. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $9,625,000.00 for 2010-2011 2011-

 

2012 for the purpose of making payments to districts to reimburse

 

for the cost of providing breakfast.

 

     (2) The funds allocated under this section for school

 

breakfast programs shall be made available to all eligible

 

applicant districts that meet all of the following criteria:


 

     (a) The district participates in the federal school breakfast

 

program and meets all standards as prescribed by 7 CFR parts 220

 

and 245.

 

     (b) Each breakfast eligible for payment meets the federal

 

standards described in subdivision (a).

 

     (3) The payment for a district under this section is at a per

 

meal rate equal to the lesser of the district's actual cost or 100%

 

of the statewide average cost of a breakfast served, as determined

 

and approved by the department, less federal reimbursement,

 

participant payments, and other state reimbursement. The statewide

 

average cost shall be determined by the department using costs as

 

reported in a manner approved by the department for the preceding

 

school year.

 

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

 

may be made pursuant to an agreement with the department.

 

     (5) In purchasing food for a school breakfast program funded

 

under this section, preference shall be given to food that is grown

 

or produced by Michigan businesses if it is competitively priced

 

and of comparable quality.

 

     Sec. 32b. (1) From the funds appropriated under section 11,

 

there is allocated an amount not to exceed $6,000,000.00 for 2010-

 

2011 $5,900,000.00 for 2011-2012 for competitive grants to

 

intermediate districts for the creation and continuance of great

 

start communities or other community purposes as identified by the

 

early childhood investment corporation. These dollars may not be

 

expended until both of the following conditions have been met:

 

     (a) The early childhood investment corporation has identified


 

matching dollars of at least an amount equal to the amount of the

 

matching dollars for 2006-2007.

 

     (b) The executive committee of the early childhood investment

 

corporation includes, in addition to the members of the executive

 

committee provided for by the interlocal agreement creating the

 

early childhood investment corporation under the urban cooperation

 

act of 1967, 1967 (Ex Sess) PA 7, MCL 124.510 to 124.512, 4 members

 

appointed by the governor as provided in this subdivision. Not

 

later than 30 days after the convening of a regular legislative

 

session in an odd-numbered year, the speaker of the house of

 

representatives, the house minority leader, the senate majority

 

leader, and the senate minority leader shall each submit to the

 

governor a list of 3 or more individuals as nominees for

 

appointment as members of the executive committee of the early

 

childhood investment corporation. The early childhood investment

 

corporation shall notify each of the legislative leaders of this

 

requirement to submit a list of nominees not later than 30 days

 

before the date that the list is due. Within 60 days of the

 

submission to the governor of nominees by each of the 4 legislative

 

leaders, the governor shall appoint 1 member of the executive

 

committee from each list of nominees submitted by each of the 4

 

legislative leaders. A member appointed under this subdivision

 

shall serve a term as a member of the executive committee through

 

the next regular legislative session unless he or she resigns or is

 

otherwise unable to serve. When a vacancy occurs other than by

 

expiration of a term, the early childhood investment corporation

 

shall notify the legislative leader who originally nominated the


 

member of the vacancy and that legislative leader shall submit to

 

the governor a list of 3 or more individuals as nominees for

 

appointment to fill the vacancy within 30 days after being notified

 

by the early childhood investment corporation of the vacancy. The

 

governor shall make an appointment to fill that vacancy in the same

 

manner as the original appointment not later than 60 days after the

 

date the vacancy occurs.

 

     (2) The early childhood investment corporation shall award

 

grants to eligible intermediate districts in an amount to be

 

determined by the corporation. The early childhood investment

 

corporation shall not retain any money allocated under this section

 

for its own administration of the grant program.

 

     (3) In order to receive funding, each intermediate district

 

applicant shall agree to convene a local great start collaborative

 

to address the availability of the 6 components of a great start

 

system in its communities: physical health, social-emotional

 

health, family supports, basic needs, economic stability and

 

safety, and parenting education and early education and care, to

 

ensure that every child in the community is ready for kindergarten.

 

Specifically, each grant will fund the following:

 

     (a) The completion of a community needs assessment and

 

strategic plan for the creation of a comprehensive system of early

 

childhood services and supports, accessible to all children from

 

birth to kindergarten and their families.

 

     (b) Identification of local resources and services for

 

children with disabilities, developmental delays, or special needs

 

and their families.


 

     (c) Coordination and expansion of infrastructure to support

 

high-quality early childhood and childcare programs.

 

     (d) Evaluation of local programs.

 

     (4) Not later than December 1 of each fiscal year, for the

 

grants awarded under this section for the immediately preceding

 

fiscal year, the department shall provide to the house and senate

 

appropriations subcommittees on state school aid, the state budget

 

director, and the house and senate fiscal agencies a report

 

detailing the amount of each grant awarded under this section, the

 

grant recipients, the activities funded by each grant under this

 

section, and an analysis of each grant recipient's success in

 

addressing the development of a comprehensive system of early

 

childhood services and supports.

 

     (5) An intermediate district receiving funds under this

 

section may carry over any unexpended funds received under this

 

section into the next fiscal year and may expend those unused funds

 

in the next fiscal year. A recipient of a grant shall return any

 

unexpended grant funds to the department in the manner prescribed

 

by the department not later than September 30 of the next fiscal

 

year after the fiscal year in which the funds are received.

 

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

 

may be made pursuant to an agreement with the department.

 

     Sec. 32d. (1) For 2010-2011, 2011-2012, there is allocated to

 

eligible districts for great start readiness programs an amount not

 

to exceed $89,400,000.00 $95,400,000.00 from the state school aid

 

fund money appropriated in section 11. In addition, from the

 

general fund appropriation in section 11, there is allocated for


 

2011-2012 an amount not to exceed $8,875,000.00 for competitive

 

great start readiness program grants. Funds allocated under this

 

section shall be used to provide part-day or full-day comprehensive

 

free compensatory programs designed to do 1 or both of the

 

following:

 

     (a) Improve improve the readiness and subsequent achievement

 

of educationally disadvantaged children as defined by the

 

department who will be at least 4, but less than 5 years of age, as

 

of December 1 of the school year in which the programs are offered,

 

and who show evidence of 2 or more risk factors meet the

 

participant eligibility and prioritization guidelines as defined by

 

the state board.

 

     (b) Provide preschool and parenting education programs similar

 

to those under former section 32b as in effect for 2001-2002.

 

Beginning in 2007-2008, funds spent by a district for programs

 

described in this subdivision shall not exceed the lesser of the

 

amount spent by the district under this subdivision for 2006-2007

 

or the amount spent under this subdivision in any subsequent fiscal

 

year.

 

     (2) To be eligible to receive payments under this section, a

 

district shall comply with this section and section 39. To receive

 

competitive grant payments under this section, an eligible grant

 

recipient shall comply with this section and section 32l.

 

     (3) In addition to the allocation under subsection (1), from

 

the general fund money appropriated under section 11, there is

 

allocated an amount not to exceed $300,000.00 for 2010-2011 2011-

 

2012 for a competitive grant to continue a longitudinal evaluation


 

of children who have participated in great start readiness

 

programs.

 

     (4) To be eligible for funding under this section, a program

 

shall prepare children for success in school through comprehensive

 

part-day or full-day school-day programs that contain all of the

 

following program components, as determined by the department:

 

     (a) Participation in a collaborative recruitment and

 

enrollment process. At a minimum, the process shall include all

 

other funded preschool programs that may serve children in the same

 

geographic area, to assure that each child is enrolled in the

 

program most appropriate to his or her needs and to maximize the

 

use of federal, state, and local funds.

 

     (b) An age-appropriate educational curriculum that is in

 

compliance with the early childhood standards of quality for

 

prekindergarten children adopted by the state board.

 

     (c) Nutritional services for all program participants.

 

     (d) Health and developmental screening services for all

 

program participants.

 

     (e) Referral services for families of program participants to

 

community social service agencies, as appropriate.

 

     (f) Active and continuous involvement of the parents or

 

guardians of the program participants.

 

     (g) A plan to conduct and report annual great start readiness

 

program evaluations and continuous improvement plans using criteria

 

approved by the department.

 

     (h) Participation in a multidistrict, multiagency, school

 

readiness advisory committee that provides for the involvement of


 

classroom teachers, parents or guardians of program participants,

 

and community, volunteer, and social service agencies and

 

organizations, as appropriate. The advisory committee shall review

 

the program components listed in this subsection and make

 

recommendations for changes to the great start readiness program

 

for which it is an advisory committee.

 

     (i) For great start readiness programs operated by a district

 

or consortium of districts, provide for the The ongoing

 

articulation of the early childhood, kindergarten , and first grade

 

programs offered by the district or districts.grant recipient.

 

     (5) An application for funding under this section shall

 

provide for the following, in a form and manner determined by the

 

department:

 

     (a) Ensure compliance with all program components described in

 

subsection (4).

 

     (b) Ensure that more than 75% of the children participating in

 

an eligible great start readiness program are children who live

 

with families with a household income that is equal to or less than

 

300% of the federal poverty level.

 

     (c) Ensure that the applicant only employs qualified personnel

 

for this program, as follows:

 

     (i) Teachers possessing proper training. For programs the

 

district manages itself, managed directly by a district, a valid

 

teaching certificate and an early childhood (ZA) (ZA or ZS)

 

endorsement are required. This provision does not apply to a

 

district or competitive grant recipient that subcontracts with an

 

eligible child development program. In that situation, a teacher


 

must have a valid Michigan teaching certificate with an early

 

childhood (ZA) (ZA or ZS) endorsement, a valid Michigan elementary

 

teaching certificate with a child development associate credential,

 

or a bachelor's degree in child development with specialization in

 

preschool teaching. However, both of the following apply to this

 

subparagraph:

 

     (A) If if a district demonstrates to the department that it is

 

unable to fully comply with this subparagraph after making

 

reasonable efforts to comply, teachers who have significant but

 

incomplete training in early childhood education or child

 

development may be employed by the district if the district

 

provides to the department, and the department approves, a plan for

 

each teacher to come into compliance with the standards in this

 

subparagraph. A teacher's compliance plan must be completed within

 

4 2 years of the date of employment. Progress toward completion of

 

the compliance plan shall consist of at least 2 courses per

 

calendar year.

 

     (B) For a subcontracted program, the department shall consider

 

a teacher with 90 credit hours and at least 4 years' teaching

 

experience in a qualified preschool program to meet the

 

requirements under this subparagraph.

 

     (ii) Paraprofessionals possessing proper training in early

 

childhood development, including an associate's degree in early

 

childhood education or child development or the equivalent, or a

 

child development associate (CDA) credential. , or the equivalent

 

as approved by the state board. However, if a district demonstrates

 

to the department that it is unable to fully comply with this


 

subparagraph after making reasonable efforts to comply, the

 

district may employ paraprofessionals who have completed at least 1

 

course that earns college credit in early childhood education or

 

child development if the district provides to the department, and

 

the department approves, a plan for each paraprofessional to come

 

into compliance with the standards in this subparagraph. A

 

paraprofessional's compliance plan must be completed within 2 years

 

of the date of employment. Progress toward completion of the

 

compliance plan shall consist of at least 2 courses or 60 clock

 

hours of training per calendar year.

 

     (d) Include a program budget that contains only those costs

 

that are not reimbursed or reimbursable by federal funding, that

 

are clearly and directly attributable to the great start readiness

 

program, and that would not be incurred if the program were not

 

being offered. The program budget shall indicate the extent to

 

which these funds will supplement other federal, state, local, or

 

private funds. Funds received under this section shall not be used

 

to supplant any federal funds by the applicant to serve children

 

eligible for a federally funded existing preschool program that has

 

the capacity to serve those children.

 

     (6) For a grant recipient that enrolls pupils in a full-day

 

school-day program funded under this section, each child enrolled

 

in the full-day school-day program shall be counted as 2 children

 

served by the program for purposes of determining the number of

 

children to be served and for determining the amount of the grant

 

award. A grant award shall not be increased solely on the basis of

 

providing a full-day school-day program. As used in this


 

subsection, "full-day program" means a program that operates for at

 

least the same length of day as a district's first grade program

 

for a minimum of 4 days per week, 30 weeks per year. A classroom

 

that offers a full-day program must enroll all children for the

 

full day to be considered a full-day program.

 

     (7) A district, or consortium of districts, or competitive

 

grant recipient receiving a grant under this section may contract

 

with for-profit or nonprofit preschool center providers that meet

 

all requirements of subsection (4) and retain for administrative

 

services an amount equal to not more than 5% of the grant amount. A

 

district, or consortium of districts, or competitive grant

 

recipient may expend not more than 10% of the total grant amount

 

for administration of the program.

 

     (8) Any public or private for-profit or nonprofit legal entity

 

or agency may apply for a competitive grant under this section.

 

However, a district or intermediate district may not apply for a

 

competitive grant under this section unless the district,

 

intermediate district, or consortium of districts or intermediate

 

districts is acting as a local grantee for the federal head start

 

program operating under the head start act, 42 USC 9831 to 9852.

 

     (9) A recipient of funds under this section shall report to

 

the department on the midyear report in a form and manner

 

prescribed by the department the number of children participating

 

in the program who meet the income or other eligibility criteria

 

prescribed by the department and the total number of children

 

participating in the program. For children participating in the

 

program who meet the income or other eligibility criteria specified


 

under subsection (5)(b), a recipient shall also report whether or

 

not a parent is available to provide care based on employment

 

status. For the purposes of this subsection, "employment status"

 

shall be defined by the department of human services in a manner

 

consistent with maximizing the amount of spending that may be

 

claimed for temporary assistance for needy families maintenance of

 

effort purposes.

 

     (10) As used in this section: , "part-day

 

     (a) "Part-day program" means a program that operates at least

 

4 days per week, 30 weeks per year, for at least 3 hours of

 

teacher-child contact time per day but for fewer hours of teacher-

 

child contact time per day than a full-day school-day program. as

 

defined in subsection (6).

 

     (b) "School-day program" means a program that operates for at

 

least the same length of day as a district's first grade program

 

for a minimum of 4 days per week, 30 weeks per year. A classroom

 

that offers a school-day program must enroll all children for the

 

school day to be considered a school-day program.

 

     (11) A district or intermediate district grant recipient

 

receiving funds under this section is encouraged to establish a

 

sliding scale of tuition rates based upon a child's family income

 

for the purpose of expanding eligible programs under this section.

 

A district or intermediate district grant recipient may charge

 

tuition for programs provided under this section according to that

 

sliding scale of tuition rates on a uniform basis for any child who

 

does not meet the program eligibility requirements under this

 

section.


 

     Sec. 32j. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $5,000,000.00 for 2010-2011 2011-

 

2012 for great parents, great start grants to intermediate

 

districts to provide programs for parents with young children. The

 

purpose of these programs is to encourage early mathematics and

 

reading literacy, improve school readiness, reduce the need for

 

special education services, and foster the maintenance of stable

 

families by encouraging positive parenting skills.

 

     (2) To qualify for funding under this section, a program shall

 

provide services to all families with children age 5 or younger

 

residing within the intermediate district who choose to

 

participate, including at least all of the following services:

 

     (a) Providing parents with information on child development

 

from birth to age 5.

 

     (b) Providing parents with methods to enhance parent-child

 

interaction that promote social and emotional development and age-

 

appropriate language, mathematics, and early reading skills for

 

young children; including, but not limited to, encouraging parents

 

to read to their preschool children at least 1/2 hour per day.

 

     (c) Providing parents with examples of learning opportunities

 

to promote intellectual, physical, and social growth of young

 

children, including the acquisition of age-appropriate language,

 

mathematics, and early reading skills.

 

     (d) Promoting access to needed community services through a

 

community-school-home partnership.

 

     (3) To receive a grant under this section, an intermediate

 

district shall submit a plan to the department not later than


 

October 15, 2010 2011 in the form and manner prescribed by the

 

department. The plan shall do all of the following in a manner

 

prescribed by the department:

 

     (a) Provide a plan for the delivery of the program components

 

described in subsection (2) that targets resources based on family

 

need and provides for educators trained in child development to

 

help parents understand their role in their child's developmental

 

process, thereby promoting school readiness and mitigating the need

 

for special education services.

 

     (b) Demonstrate an adequate collaboration of local entities

 

involved in providing programs and services for preschool children

 

and their parents and, where there is a great start collaborative,

 

demonstrate that the planned services are part of the community's

 

great start strategic plan.

 

     (c) Provide a projected budget for the program to be funded.

 

The intermediate district shall provide at least a 20% local match

 

from local public or private resources for the funds received under

 

this section. Not more than 1/2 of this matching requirement, up to

 

a total of 10% of the total project budget, may be satisfied

 

through in-kind services provided by participating providers of

 

programs or services. In addition, not more than 10% of the grant

 

may be used for program administration.

 

     (4) Each intermediate district receiving a grant under this

 

section shall agree to include a data collection system approved by

 

the department. The data collection system shall provide a report

 

by October 15 of each year on the number of children in families

 

with income below 200% of the federal poverty level that received


 

services under this program and the total number of children who

 

received services under this program.

 

     (5) The department or superintendent, as applicable, shall do

 

all of the following:

 

     (a) The superintendent shall approve or disapprove the plans

 

and notify the intermediate district of that decision not later

 

than November 15, 2010. 2011. The amount allocated to each

 

intermediate district shall be at least an amount equal to 100% of

 

the intermediate district's 2009-2010 2010-2011 payment under this

 

section.

 

     (b) The department shall ensure that all programs funded under

 

this section utilize the most current validated research-based

 

methods and curriculum for providing the program components

 

described in subsection (2).

 

     (c) The department shall submit a report to the state budget

 

director and the senate and house fiscal agencies summarizing the

 

data collection reports described in subsection (4) by December 1

 

of each year.

 

     (6) An intermediate district receiving funds under this

 

section shall use the funds only for the program funded under this

 

section. An intermediate district receiving funds under this

 

section may carry over any unexpended funds received under this

 

section into the next fiscal year and may expend those unused funds

 

in the next fiscal year. A recipient of a grant shall return any

 

unexpended grant funds to the department in the manner prescribed

 

by the department not later than September 30 of the next fiscal

 

year after the fiscal year in which the funds are received.


 

     Sec. 39. (1) A district receiving funds under section 32d

 

shall submit a preapplication, in a form and manner prescribed by

 

the department, by a date specified by the department in the

 

immediately preceding state fiscal year. The preapplication shall

 

include a comprehensive needs assessment and community

 

collaboration plan, which is endorsed by the local great start

 

collaborative and is part of the community's great start strategic

 

plan that includes, but is not limited to, great start readiness

 

program and head start providers, and shall identify all of the

 

following:

 

     (a) The estimated total number of children in the community

 

who meet the criteria of section 32d and how that calculation was

 

made.

 

     (b) The estimated number of children in the community who meet

 

the criteria of section 32d and are being served by other early

 

childhood development programs operating in the community, and how

 

that calculation was made.

 

     (c) The number of children the district will be able to serve

 

who meet the criteria of section 32d including a verification of

 

physical facility and staff resources capacity.

 

     (d) The estimated number of children who meet the criteria of

 

section 32d who will remain unserved after the district and

 

community early childhood programs have met their funded

 

enrollments. The school district shall maintain a waiting list of

 

identified unserved eligible children who would be served when

 

openings are available.

 

     (2) A district receiving funds under section 32d shall also


 

submit a final application for approval, in a form and manner

 

prescribed by the department, by a date specified by the

 

department, that details how the district complies with the program

 

components established by the department pursuant to section 32d.

 

     (3) The number of prekindergarten children construed to be in

 

need of special readiness assistance under section 32d shall be

 

calculated for each district in the following manner: 1/2 of the

 

percentage of the district's pupils in grades 1 to 5 who are

 

eligible for free lunch, as determined using the district's pupil

 

membership count as of the pupil membership count day in the school

 

year prior to the fiscal year for which the calculation is made,

 

under the Richard B. Russell national school lunch act, 42 USC 1751

 

to 1769i, shall be multiplied by the average kindergarten

 

enrollment of the district on the pupil membership count day of the

 

2 immediately preceding fiscal years.

 

     (4) Beginning in 2008-2009, the The initial allocation for

 

each fiscal year to each eligible district under section 32d shall

 

be determined by multiplying the number of children determined by

 

the formula under subsection (3) or the number of children the

 

district indicates it will be able to serve under subsection

 

(1)(c), whichever is less, by $3,400.00 and shall be distributed

 

among districts in decreasing order of concentration of eligible

 

children as determined by the formula under subsection (3). If the

 

number of children a district indicates it will be able to serve

 

under subsection (1)(c) includes children able to be served in a

 

full-day school-day program, then the number able to be served in a

 

full-day school-day program shall be doubled for the purposes of


 

making this calculation of the lesser of the number of children

 

determined by the formula under subsection (3) and the number of

 

children the district indicates it will be able to serve under

 

subsection (1)(c) and determining the amount of the initial

 

allocation to the district under section 32d. A district may

 

contract with a head start agency to serve children enrolled in

 

head start with a full-day school-day program by blending head

 

start funds with a part-day great start readiness program

 

allocation. All head start and great start readiness program

 

policies and regulations apply to the blended program.

 

     (5) If funds appropriated allocated for eligible districts in

 

section 32d remain after the initial allocation under subsection

 

(4), the allocation under this subsection shall be distributed to

 

each eligible district under section 32d in decreasing order of

 

concentration of eligible children as determined by the formula

 

under subsection (3). The allocation shall be determined by

 

multiplying the number of children each eligible district served in

 

the immediately preceding fiscal year , including the number of

 

children the district would have served if it had not satisfied all

 

or part of the reduction under section 11d from funding under this

 

section, or the number of children the district indicates it will

 

be able to serve under subsection (1)(c), whichever is less, minus

 

the number of children for which the district received funding in

 

subsection (4) by $3,400.00.

 

     (6) If funds appropriated allocated for eligible districts in

 

section 32d remain after the allocations under subsections (4) and

 

(5), remaining funds shall be distributed to each eligible district


 

under section 32d in decreasing order of concentration of eligible

 

children as determined by the formula under subsection (3). If the

 

number of children the district indicates it will be able to serve

 

under subsection (1)(c) exceeds the number of children for which

 

funds have been received under subsections (4) and (5), the

 

allocation under this subsection shall be determined by multiplying

 

the number of children the district indicates it will be able to

 

serve under subsection (1)(c) less the number of children for which

 

funds have been received under subsections (4) and (5) by $3,400.00

 

until the funds allocated for eligible districts in section 32d are

 

distributed.

 

     (7) If a district is participating in a program under section

 

32d for the first year, the maximum allocation under this section

 

is 32 multiplied by $3,400.00.

 

     (8) A district that offers supplementary day child care funded

 

by funds other than those received under this section and therefore

 

offers full-day programs as part of its early childhood development

 

program shall receive priority in the allocation of funds under

 

section 32d over other eligible districts. As used in this

 

subsection, "full-day program" means a program that provides

 

supplementary child care that totals at least 10 hours of

 

programming per day.

 

     (9) For any district with 315 or more eligible pupils, the

 

number of eligible pupils shall be 65% of the number calculated

 

using the formula under subsection (3). However, none of these

 

districts may have less than 315 pupils for purposes of calculating

 

the tentative allocation for eligible districts under section 32d.


 

     (10) If, taking into account the total amount to be allocated

 

to the district as calculated under this section, a district

 

determines that it is able to include additional eligible children

 

in the great start readiness program without additional funds under

 

section 32d, the district may include additional eligible children

 

but shall not receive additional funding under section 32d for

 

those children.

 

     (11) A consortium of 2 or more districts shall be eligible for

 

an allocation under section 32d if the districts designate a

 

district or intermediate district to serve as the fiscal agent for

 

the consortium's allocation. A consortium shall submit a single

 

application for the total number of children to be served. The

 

consortium may decide, with approval of all consortium members, to

 

serve numbers of children based on the allocation to each district

 

or based on the allocation to the entire consortium, allowing

 

children residing in any district in the consortium to be served by

 

the consortium at any location.

 

     Sec. 39a. (1) From the federal funds appropriated in section

 

11, there is allocated for 2010-2011 2011-2012 to districts,

 

intermediate districts, and other eligible entities all available

 

federal funding, estimated at $761,973,600.00, for the federal

 

programs under the no child left behind act of 2001, Public Law

 

107-110. These funds are allocated as follows:

 

     (a) An amount estimated at $10,808,600.00 to provide students

 

with drug- and violence-prevention programs and to implement

 

strategies to improve school safety, funded from DED-OESE, drug-

 

free schools and communities funds.


 

     (b) An amount estimated at $7,461,800.00 for the purpose of

 

improving teaching and learning through a more effective use of

 

technology, funded from DED-OESE, educational technology state

 

grant funds.

 

     (c) An amount estimated at $109,411,900.00 for the purpose of

 

preparing, training, and recruiting high-quality teachers and class

 

size reduction, funded from DED-OESE, improving teacher quality

 

funds.

 

     (d) An amount estimated at $10,322,300.00 for programs to

 

teach English to limited English proficient (LEP) children, funded

 

from DED-OESE, language acquisition state grant funds.

 

     (e) An amount estimated at $8,550,000.00 for the Michigan

 

charter school subgrant program, funded from DED-OESE, charter

 

school funds.

 

     (f) An amount estimated at $1,760,000.00 for rural and low

 

income schools, funded from DED-OESE, rural and low income school

 

funds.

 

     (g) An amount estimated at $1,000.00 to help schools develop

 

and implement comprehensive school reform programs, funded from

 

DED-OESE, title I and title X, comprehensive school reform funds.

 

     (h) An amount estimated at $517,479,800.00 to provide

 

supplemental programs to enable educationally disadvantaged

 

children to meet challenging academic standards, funded from DED-

 

OESE, title I, disadvantaged children funds.

 

     (i) An amount estimated at $2,152,700.00 for the purpose of

 

providing unified family literacy programs, funded from DED-OESE,

 

title I, even start funds.


 

     (j) An amount estimated at $8,807,200.00 for the purpose of

 

identifying and serving migrant children, funded from DED-OESE,

 

title I, migrant education funds.

 

     (k) An amount estimated at $24,733,200.00 to promote high-

 

quality school reading instruction for grades K-3, funded from DED-

 

OESE, title I, reading first state grant funds.

 

     (l) An amount estimated at $2,849,000.00 for the purpose of

 

implementing innovative strategies for improving student

 

achievement, funded from DED-OESE, title VI, innovative strategies

 

funds.

 

     (m) An amount estimated at $40,050,000.00 for the purpose of

 

providing high-quality extended learning opportunities, after

 

school and during the summer, for children in low-performing

 

schools, funded from DED-OESE, twenty-first century community

 

learning center funds.

 

     (n) An amount estimated at $17,586,100.00 to help support

 

local school improvement efforts, funded from DED-OESE, title I,

 

local school improvement grants.

 

     (2) From the federal funds appropriated in section 11, there

 

is allocated for 2010-2011 to districts, intermediate districts,

 

and other eligible entities all available federal funding,

 

estimated at $32,359,700.00, for the following programs that are

 

funded by federal grants:

 

     (a) An amount estimated at $600,000.00 for acquired

 

immunodeficiency syndrome education grants, funded from HHS

 

center for disease control, AIDS funding.

 

     (b) An amount estimated at $1,814,100.00 to provide services


 

to homeless children and youth, funded from DED-OVAE, homeless

 

children and youth funds.

 

     (c) An amount estimated at $1,445,600.00 for serve America

 

grants, funded from the corporation for national and community

 

service funds.

 

     (d) An amount estimated at $28,500,000.00 for providing career

 

and technical education services to pupils, funded from DED-OVAE,

 

basic grants to states.

 

     (3) To the extent allowed under federal law, the funds

 

allocated under subsection (1)(h), (i), (k), and (n) may be used

 

for 1 or more reading improvement programs that meet at least 1 of

 

the following:

 

     (a) A research-based, validated, structured reading program

 

that aligns learning resources to state standards and includes

 

continuous assessment of pupils and individualized education plans

 

for pupils.

 

     (b) A mentoring program that is a research-based, validated

 

program or a statewide 1-to-1 mentoring program and is designed to

 

enhance the independence and life quality of pupils who are

 

mentally impaired by providing opportunities for mentoring and

 

integrated employment.

 

     (c) A cognitive development program that is a research-based,

 

validated educational service program focused on assessing and

 

building essential cognitive and perceptual learning abilities to

 

strengthen pupil concentration and learning.

 

     (d) A structured mentoring-tutorial reading program for pupils

 

in preschool to grade 4 that is a research-based, validated program


 

that develops individualized educational plans based on each

 

pupil's age, assessed needs, reading level, interests, and learning

 

style.

 

     (4) All federal funds allocated under this section shall be

 

distributed in accordance with federal law and with flexibility

 

provisions outlined in Public Law 107-116, and in the education

 

flexibility partnership act of 1999, Public Law 106-25.

 

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.

 

     (5) For the purposes of applying for federal grants

 

appropriated under this act, the department shall allow an

 

intermediate district to submit a consolidated consortium

 

application on behalf of 2 or more districts with the agreement of

 

those districts as appropriate according to federal rules and

 

guidelines.

 

     (6) As used in this section:

 

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

 

     (b) "DED-OESE" means the DED office of elementary and

 

secondary education.

 

     (c) "DED-OVAE" means the DED office of vocational and adult

 

education.

 

     (d) "HHS" means the United States department of health and

 

human services.

 

     (e) "HHS-ACF" means the HHS administration for children and

 

families.


 

     Sec. 40. The department biennially shall review alternative

 

methods to determine the number of children construed to be in need

 

of special readiness assistance. and shall report not later than

 

November 15 of each even-numbered year its findings and

 

recommendations to the senate and house appropriations

 

subcommittees responsible for district funding and the senate and

 

house committees responsible for education legislation and the

 

state budget director.

 

     Sec. 51a. (1) From the appropriation in section 11, there is

 

allocated for 2009-2010 an amount not to exceed $1,016,342,000.00

 

and there is allocated for 2010-2011 2011-2012 an amount not to

 

exceed $1,057,883,000.00 $991,783,000.00 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 for 2009-2010 and estimated at

 

$385,700,000.00 for 2010-2011, $363,400,000.00, 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 each fiscal year the amount necessary, estimated at

 

$234,780,000.00 for 2009-2010 and estimated at $248,200,000.00 for

 

2010-2011, $245,700,000.00, 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 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 calculated 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 each fiscal year for 2009-2010 and for 2010-2011 for

 

2011-2012 the amount necessary, estimated at $1,329,000.00 for

 

2009-2010 and estimated at $1,400,000.00, for 2010-2011, 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 each fiscal year for 2009-2010 and

 

for 2010-2011 2011-2012 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 $1,750,000.00 for 2009-2010 and

 

an amount not to exceed $2,200,000.00 for 2010-2011 2011-2012 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, sections 51a to 58, 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 a

 

fiscal year that the amounts allocated for that fiscal year under

 

subsections (2), (3), (6), (8), and (12) and sections 53a, 54, and

 

56 will exceed expenditures for that fiscal year under subsections

 

(2), (3), (6), (8), and (12) and sections 53a, 54, and 56, then for

 

a district or intermediate district whose reimbursement for that

 

fiscal year 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


 

each fiscal year for 2009-2010 and for 2010-2011 2011-2012 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 each fiscal year the amount necessary, estimated at

 

$6,200,000.00 for 2009-2010 and estimated at $6,600,000.00 for

 

2010-2011, $6,800,000.00 for 2011-2012, 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 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 Pupils with an emotional

 

impairment 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 enrolls pursuant to this

 

section a pupil who resides outside of the intermediate district in

 

which the public school academy 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 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. 51c. As required by the court in the consolidated cases

 

known as Durant v State of Michigan, Michigan supreme court docket

 

no. 104458-104492, from the allocation under section 51a(1), there

 

is allocated each fiscal year for 2009-2010 and for 2010-2011 2011-

 

2012 the amount necessary, estimated at $702,500,000.00 for 2009-

 

2010 and estimated at $732,100,000.00 for 2010-2011,

 

$668,300,000.00, for payments to reimburse 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. Funds allocated under this

 

section that are not expended in the state fiscal year for which

 

they were allocated, as determined by the department, may be used

 

to supplement the allocations under sections 22a and 22b in order

 

to fully fund those calculated allocations for the same fiscal

 

year.

 

     Sec. 51d. (1) From the federal funds appropriated in section

 

11, there is allocated for 2010-2011 2011-2012 all available

 

federal funding, estimated at $74,000,000.00, for special education

 

programs that are funded by federal grants. All federal funds


 

allocated under this section shall be distributed in accordance

 

with federal law. 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 federal funds allocated under subsection (1), the

 

following amounts are allocated for 2010-2011:2011-2012:

 

     (a) An amount estimated at $15,000,000.00 for handicapped

 

infants and toddlers, funded from DED-OSERS, handicapped infants

 

and toddlers funds.

 

     (b) An amount estimated at $14,000,000.00 for preschool grants

 

(Public Law 94-142), special education-preschool grants (Public Law

 

108-446), funded from DED-OSERS, handicapped preschool incentive

 

individuals with disabilities education act funds.

 

     (c) An amount estimated at $45,000,000.00 for special

 

education programs funded by DED-OSERS, handicapped program,

 

special education-grants to states, individuals with disabilities

 

act funds.

 

     (3) As used in this section, "DED-OSERS" means the United

 

States department of education office of special education and

 

rehabilitative services.

 

     Sec. 53a. (1) For districts, reimbursement for pupils

 

described in subsection (2) shall be 100% of the total approved

 

costs of operating special education programs and services approved

 

by the department and included in the intermediate district plan

 

adopted pursuant to article 3 of the revised school code, MCL

 

380.1701 to 380.1766, minus the district's foundation allowance


 

calculated under section 20. , and minus the amount calculated for

 

the district under section 20j. For intermediate districts,

 

reimbursement for pupils described in subsection (2) 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 under section 20j.

 

     (2) Reimbursement under subsection (1) is for the following

 

special education pupils:

 

     (a) Pupils assigned to a district or intermediate district

 

through the community placement program of the courts or a state

 

agency, if the pupil was a resident of another intermediate

 

district at the time the pupil came under the jurisdiction of the

 

court or a state agency.

 

     (b) Pupils who are residents of institutions operated by the

 

department of community health.

 

     (c) Pupils who are former residents of department of community

 

health institutions for the developmentally disabled who are placed

 

in community settings other than the pupil's home.

 

     (d) Pupils enrolled in a department-approved on-grounds

 

educational program longer than 180 days, but not longer than 233

 

days, at a residential child care institution, if the child care

 

institution offered in 1991-92 an on-grounds educational program

 

longer than 180 days but not longer than 233 days.

 

     (e) Pupils placed in a district by a parent for the purpose of

 

seeking a suitable home, if the parent does not reside in the same

 

intermediate district as the district in which the pupil is placed.


 

     (3) Only those costs that are clearly and directly

 

attributable to educational programs for pupils described in

 

subsection (2), and that would not have been incurred if the pupils

 

were not being educated in a district or intermediate district, are

 

reimbursable under this section.

 

     (4) The costs of transportation shall be funded under this

 

section and shall not be reimbursed under section 58.

 

     (5) Not more than $13,500,000.00 of the allocation for 2010-

 

2011 2011-2012 in section 51a(1) shall be allocated under this

 

section.

 

     Sec. 54. Each intermediate district shall receive an amount

 

per pupil for each pupil in attendance at the Michigan schools for

 

the deaf and blind. The amount shall be proportionate to the total

 

instructional cost at each school. Not more than $1,688,000.00 of

 

the allocation for 2010-2011 2011-2012 in section 51a(1) shall be

 

allocated under this section.

 

     Sec. 56. (1) For the purposes of this section:

 

     (a) "Membership" means for a particular fiscal year the total

 

membership for the immediately preceding fiscal year of the

 

intermediate district and the districts constituent to the

 

intermediate district.

 

     (b) "Millage levied" means the millage levied for special

 

education pursuant to part 30 of the revised school code, MCL

 

380.1711 to 380.1743, including a levy for debt service

 

obligations.

 

     (c) "Taxable value" means the total taxable value of the

 

districts constituent to an intermediate district, except that if a


 

district has elected not to come under part 30 of the revised

 

school code, MCL 380.1711 to 380.1743, membership and taxable value

 

of the district shall not be included in the membership and taxable

 

value of the intermediate district.

 

     (2) From the allocation under section 51a(1), there is

 

allocated an amount not to exceed $39,281,100.00 for 2009-2010 and

 

an amount not to exceed $36,881,100.00 for 2010-2011 2011-2012 to

 

reimburse intermediate districts levying millages for special

 

education pursuant to part 30 of the revised school code, MCL

 

380.1711 to 380.1743. The purpose, use, and expenditure of the

 

reimbursement shall be limited as if the funds were generated by

 

these millages and governed by the intermediate district plan

 

adopted pursuant to article 3 of the revised school code, MCL

 

380.1701 to 380.1766. As a condition of receiving funds under this

 

section, an intermediate district distributing any portion of

 

special education millage funds to its constituent districts shall

 

submit for departmental approval and implement a distribution plan.

 

     (3) Reimbursement for those millages levied in 2008-2009 2010-

 

2011 shall be made in 2009-2010 2011-2012 at an amount per 2008-

 

2009 2010-2011 membership pupil computed by subtracting from

 

$180,600.00 $174,700.00 the 2008-2009 2010-2011 taxable value

 

behind each membership pupil and multiplying the resulting

 

difference by the 2008-2009 2010-2011 millage levied. Reimbursement

 

for those millages levied in 2009-2010 shall be made in 2010-2011

 

at an amount per 2009-2010 membership pupil computed by subtracting

 

from $181,700.00 the 2009-2010 taxable value behind each membership

 

pupil and multiplying the resulting difference by the 2009-2010


 

millage levied.

 

     Sec. 61a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $26,611,300.00 for 2010-2011

 

2011-2012 to reimburse on an added cost basis districts, except for

 

a district that served as the fiscal agent for a vocational

 

education consortium in the 1993-94 school year, and secondary area

 

vocational-technical education centers for secondary-level career

 

and technical education programs according to rules approved by the

 

superintendent. Applications for participation in the programs

 

shall be submitted in the form prescribed by the department. The

 

department shall determine the added cost for each career and

 

technical education program area. The allocation of added cost

 

funds shall be based on the type of career and technical education

 

programs provided, the number of pupils enrolled, and the length of

 

the training period provided, and shall not exceed 75% of the added

 

cost of any program. With the approval of the department, the board

 

of a district maintaining a secondary career and technical

 

education program may offer the program for the period from the

 

close of the school year until September 1. The program shall use

 

existing facilities and shall be operated as prescribed by rules

 

promulgated by the superintendent.

 

     (2) Except for a district that served as the fiscal agent for

 

a vocational education consortium in the 1993-94 school year,

 

districts and intermediate districts shall be reimbursed for local

 

career and technical education administration, shared time career

 

and technical education administration, and career education

 

planning district career and technical education administration.


 

The definition of what constitutes administration and reimbursement

 

shall be pursuant to guidelines adopted by the superintendent. Not

 

more than $800,000.00 of the allocation in subsection (1) shall be

 

distributed under this subsection.

 

     Sec. 62. (1) For the purposes of this section:

 

     (a) "Membership" means for a particular fiscal year the total

 

membership for the immediately preceding fiscal year of the

 

intermediate district and the districts constituent to the

 

intermediate district or the total membership for the immediately

 

preceding fiscal year of the area vocational-technical program.

 

     (b) "Millage levied" means the millage levied for area

 

vocational-technical education pursuant to sections 681 to 690 of

 

the revised school code, MCL 380.681 to 380.690, including a levy

 

for debt service obligations incurred as the result of borrowing

 

for capital outlay projects and in meeting capital projects fund

 

requirements of area vocational-technical education.

 

     (c) "Taxable value" means the total taxable value of the

 

districts constituent to an intermediate district or area

 

vocational-technical education program, except that if a district

 

has elected not to come under sections 681 to 690 of the revised

 

school code, MCL 380.681 to 380.690, the membership and taxable

 

value of that district shall not be included in the membership and

 

taxable value of the intermediate district. However, the membership

 

and taxable value of a district that has elected not to come under

 

sections 681 to 690 of the revised school code, MCL 380.681 to

 

380.690, shall be included in the membership and taxable value of

 

the intermediate district if the district meets both of the


 

following:

 

     (i) The district operates the area vocational-technical

 

education program pursuant to a contract with the intermediate

 

district.

 

     (ii) The district contributes an annual amount to the operation

 

of the program that is commensurate with the revenue that would

 

have been raised for operation of the program if millage were

 

levied in the district for the program under sections 681 to 690 of

 

the revised school code, MCL 380.681 to 380.690.

 

     (2) From the appropriation in section 11, there is allocated

 

an amount not to exceed $9,000,000.00 each fiscal year for 2009-

 

2010 and for 2010-2011 2011-2012 to reimburse intermediate

 

districts and area vocational-technical education programs

 

established under section 690(3) of the revised school code, MCL

 

380.690, levying millages for area vocational-technical education

 

pursuant to sections 681 to 690 of the revised school code, MCL

 

380.681 to 380.690. The purpose, use, and expenditure of the

 

reimbursement shall be limited as if the funds were generated by

 

those millages.

 

     (3) Reimbursement for the millages levied in 2008-2009 2010-

 

2011 shall be made in 2009-2010 2011-2012 at an amount per 2008-

 

2009 2010-2011 membership pupil computed by subtracting from

 

$191,000.00 $190,400.00 the 2008-2009 2010-2011 taxable value

 

behind each membership pupil and multiplying the resulting

 

difference by the 2008-2009 2010-2011 millage levied. Reimbursement

 

for the millages levied in 2009-2010 shall be made in 2010-2011 at

 

an amount per 2009-2010 membership pupil computed by subtracting


Senate Bill No. 183 as amended April 27, 2011

 

from $194,700.00 the 2009-2010 taxable value behind each membership

 

pupil and multiplying the resulting difference by the 2009-2010

 

millage levied.

 

     Sec. 74. (1) From the amount appropriated in section 11, there

 

is allocated an amount not to exceed $3,028,500.00 for 2009-2010

 

and there is allocated an amount not to exceed $2,058,800.00

 

<<$3,154,600.00>> for 2010-2011 2011-2012 for the purposes of this

 

section.

 

     (2) From the allocation in subsection (1), there is allocated

 

for each fiscal year the amount necessary for payments to state

 

supported colleges or universities and intermediate districts

 

providing school bus driver safety instruction pursuant to section

 

51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The

 

payments shall be in an amount determined by the department not to

 

exceed 75% of the actual cost of instruction and driver

 

compensation for each public or nonpublic school bus driver

 

attending a course of instruction. For the purpose of computing

 

compensation, the hourly rate allowed each school bus driver shall

 

not exceed the hourly rate received for driving a school bus.

 

Reimbursement compensating the driver during the course of

 

instruction shall be made by the department to the college or

 

university or intermediate district providing the course of

 

instruction.

 

     (3) From the allocation in subsection (1), there is allocated

 

each fiscal year the amount necessary to pay the reasonable costs

 

of nonspecial education auxiliary services transportation provided

 

pursuant to section 1323 of the revised school code, MCL 380.1323.


Senate Bill No. 183 as amended April 27, 2011

 

Districts funded under this subsection shall not receive funding

 

under any other section of this act for nonspecial education

 

auxiliary services transportation.

 

     <<(4) From the funds allocated in subsection (1), there is

 

allocated an amount not to exceed $1,403,500.00 for 2009-2010 and

 

an amount not to exceed $433,800.00 for 2010-2011 $1,529,600.00 FOR

2011-2012 for reimbursement

 

to districts and intermediate districts for costs associated with

 

the inspection of school buses and pupil transportation vehicles by

 

the department of state police as required under section 715a of

 

the Michigan vehicle code, 1949 PA 300, MCL 257.715a, and section

 

39 of the pupil transportation act, 1990 PA 187, MCL 257.1839. The

 

department of state police shall prepare a statement of costs

 

attributable to each district for which bus inspections are

 

provided and submit it to the department and to each affected

 

district in a time and manner determined jointly by the department

 

and the department of state police. The department shall reimburse

 

each district and intermediate district for costs detailed on the

 

statement within 30 days after receipt of the statement. Districts

 

for which services are provided shall make payment in the amount

 

specified on the statement to the department of state police within

 

45 days after receipt of the statement. The total reimbursement of

 

costs under this subsection shall not exceed the amount allocated

 

under this subsection. Notwithstanding section 17b, payments to

 

eligible entities under this subsection shall be paid on a schedule

 

prescribed by the department.>>

 

     Sec. 81. (1) Except as otherwise provided in this section,

 

from the appropriation in section 11, there is allocated for 2010-


 

2011 2011-2012 to the intermediate districts the sum necessary, but

 

not to exceed $65,376,800.00 $62,108,000.00, to provide state aid

 

to intermediate districts under this section. Except as otherwise

 

provided in this section, there shall be allocated to each

 

intermediate district for 2010-2011 2011-2012 an amount equal to

 

80% 95% of the amount allocated under this subsection for 2008-

 

2009. 2010-2011. Funding provided under this section shall be used

 

to comply with requirements of this act and the revised school code

 

that are applicable to intermediate districts, and for which

 

funding is not provided elsewhere in this act, and to provide

 

technical assistance to districts as authorized by the intermediate

 

school board.

 

     (2) Intermediate districts receiving funds under this section

 

shall collaborate with the department to develop expanded

 

professional development opportunities for teachers to update and

 

expand their knowledge and skills needed to support the Michigan

 

merit curriculum.

 

     (3) From the allocation in subsection (1), there is allocated

 

to an intermediate district, formed by the consolidation or

 

annexation of 2 or more intermediate districts or the attachment of

 

a total intermediate district to another intermediate school

 

district or the annexation of all of the constituent K-12 districts

 

of a previously existing intermediate school district which has

 

disorganized, an additional allotment of $3,500.00 each fiscal year

 

for each intermediate district included in the new intermediate

 

district for 3 years following consolidation, annexation, or

 

attachment.


 

     (4) During a fiscal year, the department shall not increase an

 

intermediate district's allocation under subsection (1) because of

 

an adjustment made by the department during the fiscal year in the

 

intermediate district's taxable value for a prior year. Instead,

 

the department shall report the adjustment and the estimated amount

 

of the increase to the house and senate fiscal agencies and the

 

state budget director not later than June 1 of the fiscal year, and

 

the legislature shall appropriate money for the adjustment in the

 

next succeeding fiscal year.

 

     (5) In order to receive funding under this section, an

 

intermediate district shall do all of the following:

 

     (a) Demonstrate to the satisfaction of the department that the

 

intermediate district employs at least 1 person who is trained in

 

pupil counting procedures, rules, and regulations.

 

     (b) Demonstrate to the satisfaction of the department that the

 

intermediate district employs at least 1 person who is trained in

 

rules, regulations, and district reporting procedures for the

 

individual-level student data that serves as the basis for the

 

calculation of the district and high school graduation and dropout

 

rates.

 

     (c) Comply with sections 1278a and 1278b of the revised school

 

code, MCL 380.1278a and 380.1278b.

 

     (d) Furnish data and other information required by state and

 

federal law to the center and the department in the form and manner

 

specified by the center or the department, as applicable.

 

     (e) Comply with section 1230g of the revised school code, MCL

 

380.1230g.


 

     (f) Comply with section 761 of the revised school code, MCL

 

380.761.

 

     (6) If the amount of the allocation to intermediate districts

 

under subsection (1) is reduced in a fiscal year after 2010-2011

 

from the amount of that allocation for 2010-2011, that reduced

 

allocation shall not result in an intermediate district's

 

allocation being less than the funding actually received by or paid

 

on behalf of the intermediate district for the 1994-95 fiscal year

 

under former section 146a(1) and section 147(1), as those sections

 

were in effect for the 1994-95 fiscal year.

 

     Sec. 93. From the general fund money appropriated in section

 

11, there is allocated for 2010-2011 2011-2012 an amount not to

 

exceed $1,500,000.00 $3,607,300.00 to the library of Michigan for

 

state aid to libraries payments to help support the provision of

 

the Michigan electronic library in public schools and public

 

libraries. The library of Michigan shall distribute the payments to

 

libraries under this section in an amount equal to 25.0% of the

 

allocation each library received under the state aid to libraries

 

appropriation enacted under 2009 PA 115.

 

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

 

in the department of technology, management, and budget the center

 

for educational performance and information. The center shall do

 

all of the following:

 

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

 

and federal law from districts, intermediate districts, and

 

postsecondary institutions.

 

     (b) Create, maintain, and enhance this state's statewide


 

longitudinal data system and ensure that it meets the requirements

 

of subsection (6).(4).

 

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

 

order to reduce the administrative burden on reporting entities,

 

including, but not limited to, electronic transcript services.

 

     (d) Create, maintain, and enhance this state's web-based

 

educational portal to provide information to school leaders,

 

teachers, researchers, and the public in compliance with all

 

federal and state privacy laws. Data shall include, but are not

 

limited to, all of the following:

 

     (i) Data sets that link teachers to student information,

 

allowing districts to assess individual teacher impact on student

 

performance and consider student growth factors in teacher and

 

principal evaluation systems.

 

     (ii) Data access or, if practical, data sets, provided for

 

regional data warehouses that, in combination with local data, can

 

improve teaching and learning in the classroom.

 

     (iii) Research-ready data sets for researchers to perform

 

research that advances this state's educational performance.

 

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

 

policymakers to make informed policy decisions.

 

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

 

allow them to assess allocation of resources and the return on

 

their investment in the education system of this state.

 

     (g) Other functions as assigned by the state budget director.

 

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

 

information from districts, intermediate districts, or


 

postsecondary institutions as required under state or federal law

 

shall make arrangements with the center to ensure that the state

 

department, officer, or agency is in compliance with subsection

 

(1). This subsection does not apply to information collected by the

 

department of treasury under the uniform budgeting and accounting

 

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

 

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

 

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to

 

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

 

380.1351a.

 

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

 

committee to provide advice to the director. The CEPI advisory

 

committee shall consist of the following members:

 

     (a) One representative from the house fiscal agency.

 

     (b) One representative from the senate fiscal agency.

 

     (c) One representative from the state budget office.

 

     (d) One representative from the state education agency.

 

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

 

labor, and economic growth and the department of treasury.

 

     (f) Three representatives from intermediate school districts.

 

     (g) One representative from each of the following educational

 

organizations:

 

     (i) Michigan association of school boards.

 

     (ii) Michigan association of school administrators.

 

     (iii) Michigan school business officials.

 

     (h) One representative representing private sector firms

 

responsible for auditing school records.


 

     (i) Other representatives as the state budget director

 

determines are necessary.

 

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

 

shall provide advice to the director of the center regarding the

 

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

 

but not limited to:

 

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

 

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

 

manner possible.

 

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

 

collection system.

 

     (c) Recommending timelines for the implementation and ongoing

 

collection of data.

 

     (d) Establishing and maintaining data definitions, data

 

transmission protocols, and system specifications and procedures

 

for the efficient and accurate transmission and collection of data.

 

     (e) Establishing and maintaining a process for ensuring the

 

reasonable accuracy of the data.

 

     (f) Establishing and maintaining state and model local

 

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

 

privacy policies related to individual student data. These privacy

 

policies shall ensure that a student's social security number is

 

not released to the public for any purpose.

 

     (g) Working with stakeholders to develop a state research

 

agenda.

 

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

 

or the director of the center.


 

     (3) (5) The center may enter into any interlocal agreements

 

necessary to fulfill its functions.

 

     (4) (6) The center shall ensure that the statewide

 

longitudinal data system required under subsection (1)(b) meets all

 

of the following:

 

     (a) Includes data at the individual student level from

 

preschool through postsecondary education and into the workforce.

 

     (b) Supports interoperability by using standard data

 

structures, data formats, and data definitions to ensure linkage

 

and connectivity in a manner that facilitates the exchange of data

 

among agencies and institutions within the state and between

 

states.

 

     (c) Enables the matching of individual teacher and student

 

records so that an individual student may be matched with those

 

teachers providing instruction to that student.

 

     (d) Enables the matching of individual teachers with

 

information about their certification and the institutions that

 

prepared and recommended those teachers for state certification.

 

     (e) Enables data to be easily generated for continuous

 

improvement and decision-making, including timely reporting to

 

parents, teachers, and school leaders on student achievement.

 

     (f) Ensures the reasonable quality, validity, and reliability

 

of data contained in the system.

 

     (g) Provides this state with the ability to meet federal and

 

state reporting requirements.

 

     (h) For data elements related to preschool through grade 12

 

and postsecondary, meets all of the following:


 

     (i) Contains a unique statewide student identifier that does

 

not permit a student to be individually identified by users of the

 

system, except as allowed by federal and state law.

 

     (ii) Contains student-level enrollment, demographic, and

 

program participation information.

 

     (iii) Contains student-level information about the points at

 

which students exit, transfer in, transfer out, drop out, or

 

complete education programs.

 

     (iv) Has the capacity to communicate with higher education data

 

systems.

 

     (i) For data elements related to preschool through grade 12

 

only, meets all of the following:

 

     (i) Contains yearly test records of individual students for

 

assessments approved by DED-OESE for accountability purposes under

 

section 1111(b) of the elementary and secondary education act of

 

1965, 20 USC 6311, including information on individual students not

 

tested, by grade and subject.

 

     (ii) Contains student-level transcript information, including

 

information on courses completed and grades earned.

 

     (iii) Contains student-level college readiness test scores.

 

     (j) For data elements related to postsecondary education only:

 

     (i) Contains data that provide information regarding the extent

 

to which individual students transition successfully from secondary

 

school to postsecondary education, including, but not limited to,

 

all of the following:

 

     (A) Enrollment in remedial coursework.

 

     (B) Completion of 1 year's worth of college credit applicable


 

to a degree within 2 years of enrollment.

 

     (ii) Contains data that provide other information determined

 

necessary to address alignment and adequate preparation for success

 

in postsecondary education.

 

     (5) (7) From the general fund appropriation in section 11,

 

there is allocated an amount not to exceed $3,621,100.00 for 2010-

 

2011 $3,701,700.00 for 2011-2012 to the department of technology,

 

management, and budget to support the operations of the center. In

 

addition, from the federal funds appropriated in section 11 there

 

is allocated for 2010-2011 2011-2012 the amount necessary,

 

estimated at $10,067,800.00 for 2010-2011, $2,893,200.00, to

 

support the operations of the center. The center shall cooperate

 

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

 

compliance with federal law and is maximizing opportunities for

 

increased federal funding to improve education in this state.

 

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

 

(5), there is allocated for 2010-2011 2011-2012 an amount not to

 

exceed $850,000.00 funded from the competitive grants of DED-OESE,

 

title II, educational technology funds for the purposes of this

 

subsection. Not later than November 30 of each fiscal year, the

 

department shall award a single grant to an eligible partnership

 

that includes an intermediate district with at least 1 high-need

 

local school district and the center.

 

     (7) (9) In addition to the amount allocated under subsection

 

(7) (5) there is also allocated from the general fund money

 

appropriated in section 11 for 2010-2011 2011-2012 an additional

 

amount not to exceed $1,800,000.00 for the purpose of establishing


 

a longitudinal data system as provided under this section in

 

compliance with the assurance provided to the federal department of

 

education in order to receive state fiscal stabilization funds. In

 

addition, there is allocated for 2010-2011 from the state school

 

aid fund money appropriated under section 11 an amount not to

 

exceed $8,440,000.00 to support the efforts of districts to match

 

individual teacher and student records. The funds shall be

 

distributed to districts in an amount and manner determined by the

 

center.

 

     (8) (10) From the federal funds allocated in subsection (7),

 

(5), there is allocated for 2010-2011 2011-2012 an amount not to

 

exceed $242,000.00 to support the efforts of postsecondary

 

institutions to comply with the requirements of this state's

 

statewide longitudinal data system. The funds shall be distributed

 

to postsecondary institutions in an amount and manner determined by

 

the center.

 

     (9) (11) The center and the department shall work

 

cooperatively to develop a cost allocation plan that pays for

 

center expenses from the appropriate federal fund and state

 

restricted fund revenues.

 

     (10) (12) Funds allocated under this section that are not

 

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

 

carried forward to a subsequent fiscal year and are appropriated

 

for the purposes for which the funds were originally allocated.

 

     (11) (13) The center may bill departments as necessary in

 

order to fulfill reporting requirements of state and federal law.

 

The center may also enter into agreements to supply custom data,


 

analysis, and reporting to other principal executive departments,

 

state agencies, local units of government, and other individuals

 

and organizations. The center may receive and expend funds in

 

addition to those authorized in subsection (7) (5) to cover the

 

costs associated with salaries, benefits, supplies, materials, and

 

equipment necessary to provide such data, analysis, and reporting

 

services.

 

     (12) (14) As used in this section:

 

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

 

office of elementary and secondary education.

 

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

 

educational agency as defined in the enhancing education through

 

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

 

107-110.

 

     (c) "State education agency" means the department.

 

     Sec. 98. (1) From the general fund money appropriated in

 

section 11, there is allocated an amount not to exceed

 

$1,687,500.00 for 2010-2011 $1,437,500.00 for 2011-2012 to provide

 

a grant to the Michigan virtual university for the development,

 

implementation, and operation of the Michigan virtual high school;

 

to provide professional development opportunities for educators;

 

and to fund other purposes described in this section. In addition,

 

from the federal funds appropriated in section 11, there is

 

allocated for 2010-2011 2011-2012 an amount estimated at

 

$2,700,000.00.

 

     (2) The Michigan virtual high school shall have the following

 

goals:


 

     (a) Significantly expand curricular offerings for high schools

 

across this state through agreements with districts or licenses

 

from other recognized providers.

 

     (b) Create statewide instructional models using interactive

 

multimedia tools delivered by electronic means, including, but not

 

limited to, the internet, digital broadcast, or satellite network,

 

for distributed learning at the high school level.

 

     (c) Provide pupils with opportunities to develop skills and

 

competencies through online learning.

 

     (d) Grant high school diplomas through a dual enrollment

 

method with districts.

 

     (e) Act as a broker for college level equivalent courses, as

 

defined in section 1471 of the revised school code, MCL 380.1471,

 

and dual enrollment courses from postsecondary education

 

institutions.

 

     (f) Maintain the accreditation status of the Michigan virtual

 

high school from recognized national and international accrediting

 

entities.

 

     (3) The Michigan virtual high school course offerings shall

 

include, but are not limited to, all of the following:

 

     (a) Information technology courses.

 

     (b) College level equivalent courses, as defined in section

 

1471 of the revised school code, MCL 380.1471.

 

     (c) Courses and dual enrollment opportunities.

 

     (d) Programs and services for at-risk pupils.

 

     (e) General education development test preparation courses for

 

adjudicated youth.


 

     (f) Special interest courses.

 

     (g) Professional development programs that teach Michigan

 

educators how to develop and deliver online instructional services.

 

     (4) From the federal funds allocated in subsection (1), there

 

is allocated for 2010-2011 2011-2012 an amount estimated at

 

$1,700,000.00 from DED-OESE, title II, improving teacher quality

 

funds for a grant to the Michigan virtual university for the

 

purpose of this subsection. With the approval of the department,

 

the Michigan virtual university shall coordinate the following

 

activities related to DED-OESE, title II, improving teacher quality

 

funds in accordance with federal law:

 

     (a) Develop, and assist districts in the development and use

 

of, proven, innovative strategies to deliver intensive professional

 

development programs that are both cost-effective and easily

 

accessible, such as strategies that involve delivery through the

 

use of technology, peer networks, and distance learning.

 

     (b) Encourage and support the training of teachers and

 

administrators to effectively integrate technology into curricula

 

and instruction.

 

     (c) Coordinate the activities of eligible partnerships that

 

include higher education institutions for the purposes of providing

 

professional development activities for teachers,

 

paraprofessionals, and principals as defined in federal law.

 

     (d) Offer teachers opportunities to learn new skills and

 

strategies for developing and delivering instructional services.

 

     (e) Provide online professional development opportunities for

 

educators to update and expand knowledge and skills needed to


 

support the Michigan merit curriculum core content standards and

 

credit requirements.

 

     (5) The Michigan virtual university shall offer at least 200

 

hours of online professional development for classroom teachers

 

under this section each fiscal year beginning in 2006-2007 without

 

charge to the teachers or to districts or intermediate districts.

 

     (6) From the federal funds appropriated in subsection (1),

 

there is allocated for 2010-2011 2011-2012 an amount estimated at

 

$1,000,000.00 from the DED-OESE, title II, educational technology

 

grant funds to support e-learning and virtual school initiatives

 

consistent with the goals contained in the United States national

 

educational technology plan issued in January 2005. These funds

 

shall be used to support activities designed to build the capacity

 

of the Michigan virtual university and shall not be used to

 

supplant other funding. Not later than November 30, 2010, 2011,

 

from the funds allocated in this subsection, the department shall

 

award a single grant of $1,000,000.00 to a consortium or

 

partnership established by the Michigan virtual university that

 

meets the requirements of this subsection. To be eligible for this

 

funding, a consortium or partnership established by the Michigan

 

virtual university shall include at least 1 intermediate district

 

and at least 1 high-need local district. All of the following apply

 

to this funding:

 

     (a) An eligible consortium or partnership must demonstrate the

 

following:

 

     (i) Prior success in delivering online courses and

 

instructional services to K-12 pupils throughout this state.


 

     (ii) Expertise in designing, developing, and evaluating online

 

K-12 course content.

 

     (iii) Experience in maintaining a statewide help desk service

 

for pupils, online teachers, and other school personnel.

 

     (iv) Knowledge and experience in providing technical assistance

 

and support to K-12 schools in the area of online education.

 

     (v) Experience in training and supporting K-12 educators in

 

this state to teach online courses.

 

     (vi) Demonstrated technical expertise and capacity in managing

 

complex technology systems.

 

     (vii) Experience promoting twenty-first century learning skills

 

through the use of online technologies.

 

     (b) The Michigan virtual university, which operates the

 

Michigan virtual high school, shall perform the following tasks

 

related to this funding:

 

     (i) Strengthen its capacity by pursuing activities, policies,

 

and practices that increase the overall number of Michigan virtual

 

high school course enrollments and course completions by at-risk

 

students.

 

     (ii) Examine the curricular and specific course content needs

 

of middle and high school students in the areas of mathematics and

 

science.

 

     (iii) Design, develop, and acquire online courses and related

 

supplemental resources aligned to state standards to create a

 

comprehensive and rigorous statewide catalog of online courses and

 

instructional services.

 

     (iv) Continue to evaluate and conduct pilot programs for new


 

and innovative online tools, resources, and courses.

 

     (v) Evaluate existing online teaching and learning practices

 

and develop continuous improvement strategies to enhance student

 

achievement.

 

     (vi) Develop, support, and maintain the technology

 

infrastructure and related software required to deliver online

 

courses and instructional services to students statewide.

 

     (7) If a home-schooled or nonpublic school student is a

 

resident of a district that subscribes to services provided by the

 

Michigan virtual high school, the student may use the services

 

provided by the Michigan virtual high school to the district

 

without charge to the student beyond what is charged to a district

 

pupil using the same services.

 

     (8) Not later than December 1, 2010, the Michigan virtual

 

university shall provide a report to the house and senate

 

appropriations subcommittees on state school aid, the state budget

 

director, the house and senate fiscal agencies, and the department

 

that includes at least all of the following information related to

 

the Michigan virtual high school for the preceding state fiscal

 

year:

 

     (a) A list of the Michigan schools served by the Michigan

 

virtual high school.

 

     (b) A list of online course titles available to Michigan

 

schools.

 

     (c) The total number of online course enrollments and

 

information on registrations and completions by course.

 

     (d) The overall course completion rate percentage.


 

     (e) A summary of DED-OESE, title IIA, teacher quality grant

 

and DED-OESE, title IID, education technology grant expenditures.

 

     (f) Identification of unmet educational needs that could be

 

addressed by the Michigan virtual high school.

 

     (8) (9) As used in this section:

 

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

 

office of elementary and secondary education.

 

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

 

agency as defined in the enhancing education through technology

 

part of the no child left behind act of 2001, Public Law 107-110.

 

     (c) "State education agency" means the department.

 

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

 

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

 

$2,515,000.00 for 2010-2011 and from the general fund appropriation

 

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

 

$110,000.00 for 2010-2011 $2,525,000.00 for 2011-2012 to support

 

the activities and programs of mathematics and science centers and

 

for other purposes as described in this section. In addition, from

 

the federal funds appropriated in section 11, there is allocated

 

for 2010-2011 2011-2012 an amount estimated at $5,249,300.00 from

 

DED-OESE, title II, mathematics and science partnership grants.

 

     (2) Within a service area designated locally, approved by the

 

department, and consistent with the comprehensive master plan for

 

mathematics and science centers developed by the department and

 

approved by the state board, an established mathematics and science

 

center shall provide 2 or more of the following 6 basic services,

 

as described in the master plan, to constituent districts and


 

communities: leadership, pupil services, curriculum support,

 

community involvement, professional development, and resource

 

clearinghouse services.

 

     (3) The department shall not award a state grant under this

 

section to more than 1 mathematics and science center located in a

 

designated region as prescribed in the 2007 master plan unless each

 

of the grants serves a distinct target population or provides a

 

service that does not duplicate another program in the designated

 

region.

 

     (4) As part of the technical assistance process, the

 

department shall provide minimum standard guidelines that may be

 

used by the mathematics and science center for providing fair

 

access for qualified pupils and professional staff as prescribed in

 

this section.

 

     (5) Allocations under this section to support the activities

 

and programs of mathematics and science centers shall be continuing

 

support grants to all 33 established mathematics and science

 

centers. Each established mathematics and science center that was

 

funded in 2009-2010 the immediately preceding fiscal year shall

 

receive state funding in an amount equal to 100% of the amount it

 

was allocated under this subsection for 2009-2010. the immediately

 

preceding fiscal year. If a center declines state funding or a

 

center closes, the remaining money available under this section

 

shall be distributed to the remaining centers, as determined by the

 

department.

 

     (6) From the funds allocated in subsection (1), there is

 

allocated for 2010-2011 2011-2012 an amount not to exceed


 

$750,000.00 in a form and manner determined by the department to

 

those centers able to provide curriculum and professional

 

development support to assist districts in implementing the

 

Michigan merit curriculum components for mathematics and science.

 

Funding under this subsection is in addition to funding allocated

 

under subsection (5).

 

     (7) In order to receive state or federal funds under this

 

section, a grant recipient shall allow access for the department or

 

the department's designee to audit all records related to the

 

program for which it receives such funds. The grant recipient shall

 

reimburse the state for all disallowances found in the audit.

 

     (8) Not later than September 30, 2013, the department shall

 

reevaluate and update the comprehensive master plan described in

 

subsection (1).

 

     (9) The department shall give preference in awarding the

 

federal grants allocated in subsection (1) to eligible existing

 

mathematics and science centers.

 

     (10) In order to receive state funds under this section, a

 

grant recipient shall provide at least a 10% local match from local

 

public or private resources for the funds received under this

 

section.

 

     (11) Not later than July 1 of each year, a mathematics and

 

science center that receives funds under this section shall report

 

to the department in a form and manner prescribed by the department

 

on the following performance measures:

 

     (a) Statistical change in pre- and post-assessment scores for

 

students who enrolled in mathematics and science activities


 

provided to districts by the mathematics and science center.

 

     (b) Statistical change in pre- and post-assessment scores for

 

teachers who enrolled in professional development activities

 

provided by the mathematics and science center.

 

     (12) (11) As used in this section:

 

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

 

     (b) "DED-OESE" means the DED office of elementary and

 

secondary education.

 

     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 shall submit

 

to the center and the intermediate superintendent, in the form and

 

manner prescribed by the center, 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 submit

 

to the center and the intermediate superintendent, in the form and

 

manner prescribed by the center, 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 sixth Wednesday after the pupil membership count

 

day and not later than the seventh Wednesday after the supplemental

 

count day, the district shall certify the data in a form and manner

 

prescribed by the center and file the certified data with the


 

intermediate superintendent. If a district fails to submit and

 

certify the attendance data, as required under this subsection, the

 

center 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 a district does not comply with

 

this subsection by the end of the fiscal year, the 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 submit 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) 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 and, beginning in 2010-

 

2011, the required minimum number of days of pupil instruction. For

 

2010-2011 and for 2011-2012, the required minimum number of days of

 

pupil instruction is 165. Beginning in 2012-2013, the required

 

minimum number of days of pupil instruction is 170. However,

 

beginning in 2010-2011, a district shall not provide fewer days of

 

pupil instruction than the district provided for 2009-2010. A

 

district may apply for a waiver under subsection (9) from the

 

requirements of this subdivision.

 

     (b) Except as otherwise provided in this act, a district

 

failing to comply with the required minimum hours and days 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 or days the district was in noncompliance in

 

relation to the required minimum number of hours and days under

 

this subsection. Not later than August 1, the board of each

 

district shall certify to the department the number of hours and,

 

beginning in 2010-2011, days of pupil instruction in the previous

 

school year. If the district did not provide at least the required

 

minimum number of hours and days 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).


 

     (c) Hours or days lost because of strikes or teachers'

 

conferences shall not be counted as hours or days of pupil

 

instruction.

 

     (d) If a collective bargaining agreement that provides a

 

complete school calendar is in effect for employees of a district

 

as of October 19, 2009, and if that school calendar is not in

 

compliance with this subsection, then this subsection does not

 

apply to that district until after the expiration of that

 

collective bargaining agreement.

 

     (e) Except as otherwise provided in subdivision (f), 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.

 

     (f) 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

 

may grant a waiver from the requirements of subdivision (e) in

 

order to conduct a pilot study. The waiver shall indicate that an

 

eligible district is subject to the proration provisions of

 

subdivision (e) only if the district does not have at least 50% of

 

the district's membership in attendance on any day of pupil

 

instruction. 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.

 

     (g) The superintendent shall promulgate rules for the

 

implementation of this subsection.

 

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

 

6 days or the equivalent number of 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 and days of pupil

 

instruction. With the approval of the superintendent of public

 

instruction, the department shall count as hours and days of pupil

 

instruction for a fiscal year not more than 6 additional days or

 

the equivalent number of 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 or days shall not be counted as hours or days

 

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 and days 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

 

and days 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 and days of pupil instruction

 

under subsection (3) in a school year, including hours and days

 

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 and days of pupil instruction under subsection (3) in a

 

school year, including hours and days counted under subsection (4).

 

     (7) In providing the minimum number of hours and days 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) 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 and days of pupil instruction requirement of


 

subsection (3) for a department-approved alternative education

 

program or another innovative program approved by the department,

 

including a 4-day school week. 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

 

and days of pupil instruction actually provided to the minimum

 

number of hours and days of pupil instruction required under

 

subsection (3). Pupils enrolled in a department-approved

 

alternative education program under this subsection shall be

 

reported to the center in a form and manner determined by the

 

center.

 

     (10) A district may count up to 38 hours of qualifying

 

professional development for teachers as hours of pupil

 

instruction. Professional development provided online is allowable

 

and encouraged, as long as the instruction has been approved by the

 

district. The department shall issue a list of approved online

 

professional development providers, which shall include the

 

Michigan virtual university. 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 October 1, 2006, 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 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) Integrating technology into classroom instruction.

 

     (e) Maintaining teacher certification.

 

     (11) Subsections (3) and (8) do not apply to a school of

 

excellence that is a cyber school, as defined in section 551 of the

 

revised school code, MCL 380.551, and is in compliance with section

 

553a of the revised school code, MCL 380.553a.

 

     (12) The department shall study the actual costs of providing

 

distance learning or other alternative instructional delivery that

 

is being used in this state and shall report on its findings to the

 

house and senate fiscal agencies and the office of the state budget

 

not later than September 10, 2012. Upon request by the department,

 

a school of excellence described in subsection (11), the Michigan

 

virtual university, or a school that receives a seat time waiver

 

from the department under this section shall submit to the

 

department any data requested by the department for the purposes of


 

this study.

 

     Sec. 104. (1) In order to receive state aid under this act, a

 

district shall comply with sections 1249, 1278a, 1278b, 1279,

 

1279g, and 1280b of the revised school code, MCL 380.1249,

 

380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970

 

PA 38, MCL 388.1081 to 388.1086, except that a district shall not

 

conduct any state testing for pupils in grade 9. Subject to

 

subsection (2), from the state school aid fund money appropriated

 

in section 11, there is allocated for 2010-2011 2011-2012 an amount

 

not to exceed $40,194,400.00 $35,194,400.00 for payments on behalf

 

of districts for costs associated with complying with those

 

provisions of law. In addition, from the federal funds appropriated

 

in section 11, there is allocated for 2010-2011 2011-2012 an amount

 

estimated at $3,250,000.00 $8,250,000.00, funded from DED-OSERS,

 

section 504 of part B of the individuals with disabilities

 

education act, Public Law 94-142, plus any carryover federal funds

 

from previous year appropriations, for the purposes of complying

 

with the federal no child left behind act of 2001, Public Law 107-

 

110.

 

     (2) The results of each test administered as part of the

 

Michigan educational assessment program, including tests

 

administered to high school students, shall include an item

 

analysis that lists all items that are counted for individual pupil

 

scores and the percentage of pupils choosing each possible

 

response.

 

     (3) All federal funds allocated under this section shall be

 

distributed in accordance with federal law and with flexibility


 

provisions outlined in Public Law 107-116, and in the education

 

flexibility partnership act of 1999, Public Law 106-25.

 

     (4) Notwithstanding section 17b, payments on behalf of

 

districts, intermediate districts, and other eligible entities

 

under this section shall be paid on a schedule determined by the

 

department.

 

     (5) As used in this section:

 

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

 

     (b) "DED-OSERS" means the DED office of special education and

 

rehabilitative services.

 

     Sec. 107. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $22,000,000.00 for 2010-2011

 

2011-2012 for adult education programs authorized under this

 

section. Funds appropriated under this section are restricted for

 

adult education programs as authorized under this section only. A

 

recipient of funds under this section shall not use those funds for

 

any other purpose.

 

     (2) To be eligible for funding under this section, a program

 

shall employ certificated teachers and qualified administrative

 

staff and shall offer continuing education opportunities for

 

teachers to allow them to maintain certification.

 

     (3) To be eligible to be a participant funded under this

 

section, a person shall be enrolled in an adult basic education

 

program, an adult English as a second language program, a general

 

educational development (G.E.D.) test preparation program, a job or

 

employment related program, or a high school completion program,

 

that meets the requirements of this section, and shall meet either


 

of the following, as applicable:

 

     (a) If the individual has obtained a high school diploma or a

 

general educational development (G.E.D.) certificate, the

 

individual meets 1 of the following:

 

     (i) Is less than 20 years of age on September 1 of the school

 

year and is enrolled in the Michigan career and technical

 

institute.

 

     (ii) Is less than 20 years of age on September 1 of the school

 

year, is not attending an institution of higher education, and is

 

enrolled in a job or employment-related program through a referral

 

by an employer.

 

     (iii) Is enrolled in an English as a second language program.

 

     (iv) Is enrolled in a high school completion program.

 

     (b) If the individual has not obtained a high school diploma

 

or G.E.D. certificate, the individual meets 1 of the following:

 

     (i) Is at least 20 years of age on September 1 of the school

 

year.

 

     (ii) Is at least 16 years of age on September 1 of the school

 

year, has been permanently expelled from school under section

 

1311(2) or 1311a of the revised school code, MCL 380.1311 and

 

380.1311a, and has no appropriate alternative education program

 

available through his or her district of residence.

 

     (4) Except as otherwise provided in subsection (5), from the

 

amount allocated under subsection (1), at least $21,800,000.00 the

 

money allocated under this section shall be distributed as follows:

 

     (a) For districts and consortia that received payments for

 

2009-2010 2010-2011 under this section, the amount allocated to


 

each for 2010-2011 2011-2012 shall be based on the number of

 

participants served by the district or consortium for 2010-2011,

 

2011-2012, using the amount allocated per full-time equated

 

participant under subsection (7), up to a maximum total allocation

 

under this subsection in an amount equal to 100% of the amount the

 

district or consortium received for 2009-2010 2010-2011 under this

 

section before any reallocations made for 2009-2010 2010-2011 under

 

subsection (5).

 

     (b) A district or consortium that received funding in 2009-

 

2010 2010-2011 under this section may operate independently of a

 

consortium or join or form a consortium for 2010-2011. 2011-2012.

 

The allocation for 2010-2011 2011-2012 to the district or the newly

 

formed consortium under this subsection shall be determined by the

 

department and shall be based on the proportion of the amounts that

 

are attributable to the district or consortium that received

 

funding in 2009-2010. 2010-2011. A district or consortium described

 

in this subdivision shall notify the department of its intention

 

with regard to 2010-2011 2011-2012 by October 1, 2010. 2011.

 

     (c) If a district had a declaration of financial emergency in

 

place under the local government fiscal responsibility act, 1990 PA

 

72, MCL 141.1201 to 141.1291, and that declaration was revoked

 

during 2005, the district may operate a program under this section

 

independently of a consortium or may join or form a consortium to

 

operate a program under this section. The allocation for 2010-2011

 

2011-2012 to the district or the newly formed consortium under this

 

subsection shall be determined by the department and shall be based

 

on the proportion of the amounts that are attributable to the


 

district or consortium that received funding in 2009-2010 2010-2011

 

or, for a district for which a declaration of financial emergency

 

was revoked during 2005, based on the amount the district received

 

under this section using a 3-year average of the 3 most recent

 

fiscal years the district received funding under this section. A

 

district or consortium described in this subdivision shall notify

 

the department of its intention with regard to 2010-2011 2011-2012

 

by October 1, 2010. 2011.

 

     (5) A district that operated an adult education program in

 

2009-2010 2010-2011 and does not intend to operate a program in

 

2010-2011 2011-2012 shall notify the department by October 1, 2010

 

2011 of its intention. The money intended to be allocated under

 

this section to a district that does not operate a program in 2010-

 

2011 2011-2012 and the unspent money originally allocated under

 

this section to a district or consortium that subsequently operates

 

a program at less than the level of funding allocated under

 

subsection (4) and any other unallocated money under this section

 

shall instead be proportionately reallocated to the other districts

 

described in subsection (4)(a) that are operating an adult

 

education program in 2010-2011 2011-2012 under this section.

 

     (6) From the amount allocated under subsection (1), up to a

 

maximum of $200,000.00 shall be allocated for not more than 1 grant

 

not to exceed $200,000.00 for expansion of an existing innovative

 

community college program that focuses on educating adults. Grants

 

may be used for program operating expenses such as staffing, rent,

 

equipment, and other expenses. To be eligible for this grant

 

funding, a program must meet the following criteria:


 

     (a) Collaborates with local districts and businesses to

 

determine area academic needs and to promote the learning

 

opportunities.

 

     (b) Is located off-campus in an urban residential setting with

 

documented high poverty and low high school graduation rates.

 

     (c) Provides general educational development (G.E.D.) test

 

preparation courses and workshops.

 

     (d) Provides developmental courses taught by college faculty

 

that prepare students to be successful in college-level courses.

 

     (e) Uses learning communities to allow for shared, rather than

 

isolated, learning experiences.

 

     (f) Provides on-site tutoring.

 

     (g) Provides access to up-to-date technology, including

 

personal computers.

 

     (h) Partners with a financial institution to provide financial

 

literacy education.

 

     (i) Assists students in gaining access to financial aid.

 

     (j) Provides on-site academic advising to students.

 

     (k) Provides vouchers for reduced G.E.D. testing costs.

 

     (l) Partners with local agencies to provide referrals for

 

social services as needed.

 

     (m) Enrolls participants as students of the community college.

 

     (n) Partners with philanthropic and business entities to

 

provide capital funding.

 

     (6) (7) The amount allocated under this section per full-time

 

equated participant is $2,850.00 for a 450-hour program. The amount

 

shall be proportionately reduced for a program offering less than


 

450 hours of instruction.

 

     (7) (8) An adult basic education program or an adult English

 

as a second language program operated on a year-round or school

 

year basis may be funded under this section, subject to all of the

 

following:

 

     (a) The program enrolls adults who are determined by a

 

department-approved assessment, in a form and manner prescribed by

 

the department, to be below ninth grade level in reading or

 

mathematics, or both, or to lack basic English proficiency.

 

     (b) The program tests individuals for eligibility under

 

subdivision (a) before enrollment and upon completion of the

 

program in compliance with the state-approved assessment policy.

 

     (c) A participant in an adult basic education program is

 

eligible for reimbursement until 1 of the following occurs:

 

     (i) The participant's reading and mathematics proficiency are

 

assessed at or above the ninth grade level.

 

     (ii) The participant fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction.

 

     (d) A funding recipient enrolling a participant in an English

 

as a second language program is eligible for funding according to

 

subsection (12) (11) until the participant meets 1 of the

 

following:

 

     (i) The participant is assessed as having attained basic

 

English proficiency as determined by a department-approved

 

assessment.

 

     (ii) The participant fails to show progress on 2 successive


 

department-approved assessments after having completed at least 450

 

hours of instruction. The department shall provide information to a

 

funding recipient regarding appropriate assessment instruments for

 

this program.

 

     (8) (9) A general educational development (G.E.D.) test

 

preparation program operated on a year-round or school year basis

 

may be funded under this section, subject to all of the following:

 

     (a) The program enrolls adults who do not have a high school

 

diploma.

 

     (b) The program shall administer a G.E.D. pre-test approved by

 

the department before enrolling an individual to determine the

 

individual's potential for success on the G.E.D. test, and shall

 

administer a post-test upon completion of the program in compliance

 

with the state-approved assessment policy.

 

     (c) A funding recipient shall receive funding according to

 

subsection (12) (11) for a participant, and a participant may be

 

enrolled in the program until 1 of the following occurs:

 

     (i) The participant passes the G.E.D. test.

 

     (ii) The participant fails to show progress on 2 successive

 

department-approved assessments used to determine readiness to take

 

the G.E.D. test after having completed at least 450 hours of

 

instruction.

 

     (9) (10) A high school completion program operated on a year-

 

round or school year basis may be funded under this section,

 

subject to all of the following:

 

     (a) The program enrolls adults who do not have a high school

 

diploma.


 

     (b) The program tests participants described in subdivision

 

(a) before enrollment and upon completion of the program in

 

compliance with the state-approved assessment policy.

 

     (c) A funding recipient shall receive funding according to

 

subsection (12) (11) for a participant in a course offered under

 

this subsection until 1 of the following occurs:

 

     (i) The participant passes the course and earns a high school

 

diploma.

 

     (ii) The participant fails to earn credit in 2 successive

 

semesters or terms in which the participant is enrolled after

 

having completed at least 900 hours of instruction.

 

     (10) (11) A job or employment-related adult education program

 

operated on a year-round or school year basis may be funded under

 

this section, subject to all of the following:

 

     (a) The program enrolls adults referred by their employer who

 

are less than 20 years of age, have a high school diploma, are

 

determined to be in need of remedial mathematics or communication

 

arts skills and are not attending an institution of higher

 

education.

 

     (b) An individual may be enrolled in this program and the

 

grant recipient shall receive funding according to subsection (12)

 

(11) until 1 of the following occurs:

 

     (i) The individual achieves the requisite skills as determined

 

by department-approved assessment instruments administered at least

 

after every 90 hours of attendance.

 

     (ii) The individual fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of


 

instruction. The department shall provide information to a funding

 

recipient regarding appropriate assessment instruments for this

 

program.

 

     (11) (12) A funding recipient shall receive payments under

 

this section in accordance with the following:

 

     (a) Ninety percent for enrollment of eligible participants.

 

     (b) Ten percent for completion of the adult basic education

 

objectives by achieving an increase of at least 1 grade level of

 

proficiency in reading or mathematics; for achieving basic English

 

proficiency, as defined by the department in the adult education

 

guidebook; for obtaining a G.E.D. or passage of 1 or more

 

individual G.E.D. tests; for attainment of a high school diploma or

 

passage of a course required for a participant to attain a high

 

school diploma; or for completion of the course and demonstrated

 

proficiency in the academic skills to be learned in the course, as

 

applicable.

 

     (12) (13) As used in this section, "participant" means the sum

 

of the number of full-time equated individuals enrolled in and

 

attending a department-approved adult education program under this

 

section, using quarterly participant count days on the schedule

 

described in section 6(7)(b).

 

     (13) (14) A person who is not eligible to be a participant

 

funded under this section may receive adult education services upon

 

the payment of tuition. In addition, a person who is not eligible

 

to be served in a program under this section due to the program

 

limitations specified in subsection (8), (9), (10), or (11) (7),

 

(8), (9), or (10) may continue to receive adult education services


 

in that program upon the payment of tuition. The tuition level

 

shall be determined by the local or intermediate district

 

conducting the program.

 

     (14) (15) An individual who is an inmate in a state

 

correctional facility shall not be counted as a participant under

 

this section.

 

     (15) (16) A district shall not commingle money received under

 

this section or from another source for adult education purposes

 

with any other funds of the district. A district receiving adult

 

education funds shall establish a separate ledger account for those

 

funds. This subsection does not prohibit a district from using

 

general funds of the district to support an adult education or

 

community education program.

 

     (16) (17) A district or intermediate district receiving funds

 

under this section may establish a sliding scale of tuition rates

 

based upon a participant's family income. A district or

 

intermediate district may charge a participant tuition to receive

 

adult education services under this section from that sliding scale

 

of tuition rates on a uniform basis. The amount of tuition charged

 

per participant shall not exceed the actual operating cost per

 

participant minus any funds received under this section per

 

participant. A district or intermediate district may not charge a

 

participant tuition under this section if the participant's income

 

is at or below 200% of the federal poverty guidelines published by

 

the United States department of health and human services.

 

     (17) (18) In order to receive funds under this section, a

 

district shall furnish to the department, in a form and manner


Senate Bill No. 183 as amended April 27, 2011

 

determined by the department, all information needed to administer

 

this program and meet federal reporting requirements; shall allow

 

the department or the department's designee to review all records

 

related to the program for which it receives funds; and shall

 

reimburse the state for all disallowances found in the review, as

 

determined by the department.

 

     (18) (19) All intermediate district participant audits of

 

adult education programs shall be performed pursuant to the adult

 

education participant auditing and accounting manuals published by

 

the department.

 

     (19) (20) As used in this section, "department" means the

 

<<department of energy, labor, and economic growth WORKFORCE

DEVELOPMENT AGENCY>>.

 

     Sec. 109. (1) Subject to subsection (2), in order to receive

 

funds under this act, each district or intermediate district shall

 

provide appropriate instructional services, as determined by the

 

district or intermediate district, to an enrolled pupil who is

 

certified by the pupil's attending physician as having a medical

 

condition that requires the pupil to be hospitalized or confined to

 

his or her home during regular school hours and that is expected to

 

require the hospitalization or confinement for a period longer than

 

5 school days. The district or intermediate district may provide

 

the services itself or may contract with an intermediate district,

 

a hospital, a treatment center, or another district to provide the

 

services. In choosing a provider for the instructional services,

 

the district or intermediate district shall consider which of those

 

potential providers is best able to deliver the appropriate

 

instructional services. The district or intermediate district shall


 

pay reasonable costs as agreed upon between the district or

 

intermediate district and the provider for services provided to a

 

pupil under this section.

 

     (2) A district or intermediate district is required to provide

 

instructional services under subsection (1) to a pupil placed in a

 

hospital, treatment center, or other treatment facility without the

 

district's or intermediate district's prior knowledge only if the

 

district or intermediate district is notified of the pupil's

 

placement by the hospital, treatment center, facility, or the

 

pupil's parent or legal guardian. Upon being notified, the district

 

or intermediate district shall make arrangements to provide

 

instructional services under subsection (1) within 3 school days

 

after being notified.

 

     (3) Not later than October 15 of each odd numbered year, the

 

The department shall prepare and distribute to each district and

 

intermediate district make available on its website a written

 

explanation of the operation of this section and the respective

 

duties of all affected parties. The department shall provide a copy

 

of the explanation to any other person upon request.

 

     Sec. 147. The allocation for 2010-2011 2011-2012 and for 2012-

 

2013 for the public school employees' retirement system pursuant to

 

the public school employees retirement act of 1979, 1980 PA 300,

 

MCL 38.1301 to 38.1408, shall be made using the entry age normal

 

cost actuarial method and risk assumptions adopted by the public

 

school employees retirement board and the department of technology,

 

management, and budget. The For public school employees who first

 

worked for a public school reporting unit before July 1, 2010, the


 

annual level percentage of payroll contribution rate is estimated

 

at 19.41% for the 2010-2011 state 15.96% for pension and at 8.50%

 

for retiree health care for the 2011-2012 fiscal year. For public

 

school employees who first worked for a public school reporting

 

unit on or after July 1, 2010, the annual level percentage of

 

payroll contribution rate is estimated at 14.73% for pension and

 

8.50% for retiree health care for the 2011-2012 fiscal year. For

 

public school employees who first worked for a public school

 

reporting unit before July 1, 2010, the annual level percentage of

 

payroll contribution rate is estimated at 18.62% for pension and

 

8.75% for retiree health care for the 2012-2013 fiscal year. For

 

public school employees who first worked for a public school

 

reporting unit on or after July 1, 2010, the annual level

 

percentage of payroll contribution rate is estimated at 17.39% for

 

pension and 8.75% for retiree health care for the 2012-2013 fiscal

 

year. The portion of the contribution rate assigned to districts

 

and intermediate districts for each fiscal year is all of the total

 

percentage points. This contribution rate reflects an amortization

 

period of 27 26 years for 2010-2011. However, the contribution rate

 

for 2010-2011 may be reduced by an amount approved by the public

 

school employees' retirement system board if reforms in the public

 

school employees' retirement system are enacted and in effect by

 

December 31, 2010. 2011-2012. The public school employees'

 

retirement system board shall notify each district and intermediate

 

district by February 28 of each fiscal year of the estimated

 

contribution rate for the next fiscal year.

 

     Sec. 152a. (1) As required by the court in the consolidated


Senate Bill No. 183 as amended April 27, 2011

 

cases known as Adair v State of Michigan, Michigan supreme court

 

docket nos. 137424 and 137453, from the state school aid fund money

 

appropriated in section 11 there is allocated for 2010-2011 2011-

 

2012 an amount not to exceed $25,624,500.00 $34,064,500.00 to be

 

used solely for the purpose of paying necessary costs related to

 

the state-mandated collection, maintenance, and reporting of data

 

to this state.

 

     (2) From the allocation in subsection (1), the department

 

shall make payments to districts and intermediate districts in an

 

equal amount per pupil based on the total number of pupils in

 

membership in each district and intermediate district. The

 

department shall not make any adjustment to these payments after

 

the final installment payment under section 17b is made.

 

     <<sec. 166f. (1) beginning in 2011-2012, if a district or

 

intermediate district offers a medical benefit plan to its employees, a

 

district or intermediate district is encouraged to review the costs of

 

its medical benefit plans and consider additional employee cost sharing

 

for those plans.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Senate Bill No. 183 as amended April 27, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


senate Bill No. 183 as amended April 27, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

>>

 

     Enacting section 1. In accordance with section 30 of article I

 

of the state constitution of 1963, total state spending on school

 

aid in this amendatory act from state sources for fiscal year 2011-

 

2012 is estimated at <<$10,746,906,200.00>> and state appropriations

 

for school aid to be paid to local units of government for fiscal

 

year 2011-2012 are estimated at <<$10,591,203,100.00>>.

 

     Enacting section 2. <<

 

    

 

           >> Sections 11d, 11p, 20j, 20k, 26b, 29, 32c, 41, 64, 65, 92,

 

99i, 99p, 158b, 166c, 171, and 172 of the state school aid act of

 

1979, 1979 PA 94, MCL 388.1611d, 388.1611p, 388.1620j, 388.1620k,

 

388.1626b, 388.1629, 388.1632c, 388.1641, 388.1664, 388.1665,


Senate Bill No. 183 as amended April 27, 2011

 

388.1692, 388.1699i, 388.1699p, 388.1766c, 388.1758b, 388.1771, and

 

388.1772<<, are repealed>>.

 

     <<

 

                                                >>

 

     Enacting section 3. This amendatory act takes effect October

 

1, 2011.