SB-0961, As Passed Senate, April 25, 2012
SUBSTITUTE FOR
SENATE BILL NO. 961
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 3, 4, 6, 11, 11a, 11g, 11j, 11k, 11m, 12, 15,
18, 18c, 19, 20, 20d, 22a, 22b, 22d, 24, 24a, 24c, 25, 26a, 26b,
31a, 31d, 31f, 32d, 39, 39a, 51a, 51c, 51d, 53a, 54, 56, 61a, 62,
74, 81, 93, 94a, 98, 99, 101, 102, 104, 107, 147, 147a, 147b, and
152a (MCL 388.1603, 388.1604, 388.1606, 388.1611, 388.1611a,
388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1612, 388.1615,
388.1618, 388.1618c, 388.1619, 388.1620, 388.1620d, 388.1622a,
388.1622b, 388.1622d, 388.1624, 388.1624a, 388.1624c, 388.1625,
388.1626a, 388.1626b, 388.1631a, 388.1631d, 388.1631f, 388.1632d,
388.1639, 388.1639a, 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, 388.1702,
388.1704, 388.1707, 388.1747, 388.1747a, 388.1747b, and 388.1752a),
sections 3, 19, and 101 as amended by 2010 PA 110, section 4 as
amended by 2008 PA 268, sections 6, 11, 11a, 11m, 22a, 22b, 24a,
24c, 26b, 51a, 51c, 74, and 104 as amended by 2012 PA 29, sections
11g, 11k, 15, 18, 20, 20d, 22d, 24, 31a, 32d, 39, 39a, 51d, 54, 56,
61a, 81, 93, 94a, 98, 99, 107, 147, and 152a as amended sections
12, 147a, and 147b as added by 2011 PA 62, sections 11j, 26a, 31d,
31f, 53a, and 62 as amended by 2011 PA 299, section 18c as added by
2000 PA 297, section 25 as amended by 2011 PA 322, and section 102
as amended by 2010 PA 204, and by adding sections 11s, 11t, 11u,
22g, 22i, 32p, 95, and 104c; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) "Achievement authority" means that term as defined
in part 7c of the revised school code, MCL 380.771 to 380.778.
(2) "Achievement school" means a public school within the
education achievement system operated, managed, authorized,
established, or overseen by the achievement authority.
(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).
(4) (2)
"Board" means the governing
body of a district or
public school academy.
(5) (3)
"Center" means the center
for educational performance
and information created in section 94a.
(6) (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.
(7) (5)
"Department", except in
section 107, means the
department of education.
(8) (6)
"District" means a local
school district established
under the revised school code or, except in sections 6(4), 6(6),
11r,
13, 20, 22a, 23, 29, 31a, 51a(15),
51a(14), 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.Except in sections
6(4), 6(6), 6(8), 6(19), 13,
20, 22a, 31a, 105, 105c, and 166b, district also includes the
education achievement system.
(9) (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.
(10) (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.chancellor of the
achievement authority.
Sec. 4. (1) "Education achievement system" means that term as
defined in part 7c of the revised school code, MCL 380.771 to
380.778.
(2)
(1) "Elementary pupil" means a pupil in
membership in
grades K to 8 in a district not maintaining classes above the
eighth grade or in grades K to 6 in a district maintaining classes
above the eighth grade. For the purposes of calculating universal
service fund (e-rate) discounts, "elementary pupil" includes
children enrolled in a preschool program operated by a district in
its facilities.
(3) (2)
"Extended school year"
means an educational program
conducted by a district in which pupils must be enrolled but not
necessarily in attendance on the pupil membership count day in an
extended year program. The mandatory clock hours shall be completed
by each pupil not more than 365 calendar days after the pupil's
first day of classes for the school year prescribed. The department
shall prescribe pupil, personnel, and other reporting requirements
for the educational program.
(4) (3)
"Fiscal year" means the
state fiscal year that
commences October 1 and continues through September 30.
(5) (4)
"General educational
development testing preparation
program" means a program that has high school level courses in
English language arts, social studies, science, and mathematics and
that prepares a person to successfully complete the general
educational development (GED) test.
(6) (5)
"High school pupil" means
a pupil in membership in
grades 7 to 12, except in a district not maintaining grades above
the eighth grade.
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
article,
means for a district, a public school academy, university
school,
the education achievement
system, or an intermediate
district the sum of the product of .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 .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, or for
the education achievement system, a pupil's participation in the
cyber school's educational program or in an online educational
program of the education achievement system or of an achievement
school 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,
a public school academy, university school, the education
achievement system, or an 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.
(g) (h)
A pupil enrolled in a public school
academy shall be
counted in membership in the public school academy.
(h) A pupil enrolled in an achievement school shall be counted
in membership in the education achievement system.
(i) For a new district , university school, or public school
academy beginning its operation after December 31, 1994, or for the
education achievement system or an achievement school, membership
for the first 2 full or partial fiscal years of operation shall be
determined as follows:
(i) If operations begin before the pupil membership count day
for the fiscal year, membership is the average number of full-time
equated pupils in grades K to 12 actually enrolled and in regular
daily attendance on the pupil membership count day for the current
school year and on the supplemental count day for the current
school year, as determined by the department and calculated by
adding the number of pupils registered for attendance on the pupil
membership count day plus pupils received by transfer and minus
pupils lost as defined by rules promulgated by the superintendent,
and as corrected by a subsequent department audit, plus the final
audited count from the supplemental count day for the current
school year, and dividing that sum by 2.
(ii) If operations begin after the pupil membership count day
for the fiscal year and not later than the supplemental count day
for the fiscal year, membership is the final audited count of the
number of full-time equated pupils in grades K to 12 actually
enrolled and in regular daily attendance on the supplemental count
day for the current school year.
(j) If a district is the authorizing body for a public school
academy, then, in the first school year in which pupils are counted
in membership on the pupil membership count day in the public
school academy, the determination of the district's membership
shall exclude from the district's pupil count for the immediately
preceding supplemental count day any pupils who are counted in the
public school academy on that first pupil membership count day who
were also counted in the district on the immediately preceding
supplemental count day.
(k)
In a district, a public school academy, university school,
the education achievement system, or an 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 500,000.
(B) Had dropped out of school for more than 1 year and has re-
entered school.
(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 pupil 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 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 or the education achievement system is also educated by a
district or intermediate district as part of a cooperative
education program, the pupil shall be counted in membership only in
the public school academy or the education achievement system
unless a written agreement signed by all parties designates the
party or parties in which the pupil shall be counted in membership,
and the instructional time scheduled for the pupil in the district
or intermediate district shall be included in the full-time equated
membership determination under subdivision (q). However, for pupils
receiving instruction in both a public school academy or the
education achievement system and in a district or intermediate
district but not as a part of a cooperative education program, the
following apply:
(i) If the public school academy or the education achievement
system provides instruction for at least 1/2 of the class hours
specified in subdivision (q), the public school academy or the
education achievement system shall receive as its prorated share of
the full-time equated membership for each of those pupils an amount
equal to 1 times the product of the hours of instruction the public
school academy or the education achievement system provides divided
by the number of hours specified in subdivision (q) for full-time
equivalency, and the remainder of the full-time membership for each
of those pupils shall be allocated to the district or intermediate
district providing the remainder of the hours of instruction.
(ii) If the public school academy or the education achievement
system provides instruction for less than 1/2 of the class hours
specified in subdivision (q), the district or intermediate district
providing the remainder of the hours of instruction shall receive
as its prorated share of the full-time equated membership for each
of those pupils an amount equal to 1 times the product of the hours
of instruction the district or intermediate district provides
divided by the number of hours specified in subdivision (q) for
full-time equivalency, and the remainder of the full-time
membership for each of those pupils shall be allocated to the
public school academy or the education achievement system.
(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)
Full-time equated memberships for pupils in kindergarten
Senate Bill No. 961 as amended April 25, 2012
shall
be determined by dividing the number of class hours scheduled
and
provided per year per kindergarten pupil by a number equal to
1/2
the number used for determining full-time equated memberships
for
pupils in grades 1 to 12. However, beginning Beginning in 2012-
2013, full-time equated memberships for pupils in kindergarten
shall
be determined by dividing the number of class instructional
hours scheduled and provided per year per kindergarten pupil by the
same number used for determining full-time equated memberships for
pupils in grades 1 to 12. The change in the counting of full-time
equated memberships for pupils in kindergarten that takes effect in
2012-2013 is not <<A MANDATE AND IS NOT>> intended to jeopardize federal
title I <<FUNDS THAT ARE>> used for
kindergarten funding. It is the intent of the legislature that
federal title I funding will continue to be available to districts
to fund full-day kindergarten.
(s)
For a district, university school, or a public school
academy, or the education achievement system that has pupils
enrolled in a grade level that was not offered by the district,
university
school, or the public school academy, or the education
achievement system 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 the
public school academy, or the
education achievement system 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
or the education achievement system within 45 days after the pupil
membership count day, the department shall adjust the district's or
the education achievement system'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 .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 .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 or the education
achievement system 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 or the education
achievement system receives the same amount of membership aid for
the pupil as if the pupil were counted in the district or the
education achievement system on the supplemental count day of the
preceding school year.
(aa)
Full-time equated memberships for preprimary-aged special
education pupils who are not enrolled in kindergarten but are
enrolled in a classroom program under R 340.1754 of the Michigan
administrative code shall be determined by dividing the number of
class hours scheduled and provided per year by 450. Full-time
equated
memberships for preprimary-aged special education pupils
who are not enrolled in kindergarten but are receiving 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, 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, a public school academy, or the education
achievement system 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 or the education achievement system.
(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.the education achievement system.
(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 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 pupil enrolled in a district other than the pupil's
district of residence as a qualifying pupil under section 22h(2).
(q) A pupil enrolled in 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, if the pupil's district of residence does not
offer a vocational job training program or alternative high school
diploma program. As used in this subdivision, "state-licensed
proprietary school" means licensed under the proprietary schools
act, 1943 PA 148, MCL 395.101 to 395.103.
(r) A pupil enrolled in an alternative education program
operated by a district in a city or county jail, if the pupil's
district of residence does not offer a vocational job training
program or alternative high school diploma program.
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 unless the district is educating pupils
in an alternative or vocational education program and the pupil's
district of residence does not offer an alternative or vocational
education program.
(7) "Pupil membership count day" of a district or intermediate
district means:
(a) Except as provided in subdivision (b), the first Wednesday
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) First Wednesday 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, an intermediate district, or a public
school academy, or the education achievement system before the
pupil membership count day or supplemental count day of a
particular year but was expelled or suspended on the pupil
membership count day or supplemental count day shall only be
counted as 1.0 full-time equated membership if the pupil resumed
attendance
in the district, intermediate district, or public school
academy, or education achievement system 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
instructional print or electronic resource that is selected and
approved by the governing board of a district or, for an
achievement school, by the chancellor of the achievement authority
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
article.
(21)
"University school" means an instructional program
operated
by a public university under section 23 that meets the
Senate Bill No. 961 as amended April 25, 2012
requirements
of section 23.
Sec. 11. (1) Subject to subsection (3), for the fiscal year
ending September 30, 2012, there is appropriated for the public
schools of this state and certain other state purposes relating to
education
the sum of $10,967,333,600.00 $10,944,333,600.00
from the
state school aid fund and the sum of $118,642,400.00 from the
general
fund. In addition, all other available federal funds,
except those otherwise appropriated under section 11p, are
appropriated for the fiscal year ending September 30, 2012. Subject
to subsection (3), for the fiscal year ending September 30, 2013,
there is appropriated for the public schools of this state and
certain other state purposes relating to education the sum of
<<$10,715,091,400.00>> from the state school aid fund and the sum of
$296,516,400.00 from the general fund. In addition, all available
federal funds are appropriated for the fiscal year ending September
30, 2013.
(2) The appropriations under this section shall be allocated
as provided in this article. Money appropriated under this section
from the general fund shall be expended to fund the purposes of
this article before the expenditure of money appropriated under
this section from the state school aid fund.
(3) Any general fund allocations under this article 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 2011-2012, 2012-2013, 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 article.
(8)
Effective on the effective date of this subsection,
February 24, 2012, in addition to any amounts otherwise deposited
into the school aid stabilization fund, there is transferred from
the state school aid fund to the school aid stabilization fund an
amount equal to $100,000,000.00.
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, 2012 2013, 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 article 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 $2,837,800.00 for 2010-2011 and
an
amount not to exceed $93,575,300.00 for 2011-2012
$120,390,000.00 for 2012-2013 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 2011-2012, 2012-2013,
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 2011-2012 2012-2013 an amount not to exceed
$8,500,000.00
$10,000,000.00 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. 11s. From the school aid funds appropriated in section
11, there is allocated for 2012-2013 an amount not to exceed
$6,000,000.00 to the education reserve fund. The education reserve
fund is created as a separate account within the state school aid
fund. Funds shall not be appropriated from the education reserve
fund until the enactment of a statue amending this section that
provides for an appropriation from the education reserve fund and
specifies the purpose or purposes of appropriations from the
education reserve fund.
Sec. 11t. It is the intent of the legislature to enact
legislation as necessary to change the name of the state school aid
fund to the "comprehensive education fund".
Sec. 11u. It is the intent of the legislature to examine the
existing structure of funding under this article and to determine
to what extent, if any, categorical funding under this article may
instead be used for funding foundation allowances and other basic
per pupil payments.
Sec. 12. It is the intent of the legislature to appropriate
and
allocate for the fiscal year ending September 30, 2013 2014 the
same amounts of money from the same sources for the same purposes
as are appropriated and allocated under this article for the fiscal
year
ending September 30, 2012, 2013,
as adjusted for changes in
pupil membership, taxable values, special education costs, and
available revenue. These adjustments will be determined after the
January 2012 consensus revenue estimating conference.
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
article, 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
article 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 article
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 2011-2012 2012-
2013 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
article, each district or other entity shall apply the money
received by the district or entity under this article 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 or
intermediate district under this article 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 article 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 article 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) 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) 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) 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 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 enter the pupil membership
audit reports for its constituent districts and for the
intermediate district, for the pupil membership count day and
supplemental count day, in the Michigan student data system.
(f) 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) Not later than 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.
(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 article.
(9) If a district that is a public school academy purchases
property using money received under this article, 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 article, 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. 18c. Any contract, mortgage, loan, or other instrument of
indebtedness entered into by a public school academy, the
achievement authority, or an achievement school receiving funds
under this act and a third party does not constitute an obligation,
either general, special, or moral, of this state or of an
authorizing body. The full faith and credit or the taxing power of
this state or any agency of this state, or the full faith and
credit of an authorizing body, shall not be pledged for the payment
of any contract, mortgage, loan, or other instrument of
indebtedness entered into by a public school academy, the
achievement authority, or an achievement school.
Sec. 19. (1) A district or intermediate district shall comply
with all applicable reporting requirements specified in state and
federal law. Data provided to the center, in a form and manner
prescribed by the center, shall be aggregated and disaggregated as
required by state and federal law. In addition, a district or
intermediate district shall cooperate with all measures taken by
the
center to comply with the provisions of the American recovery
and
reinvestment act of 2009, Public Law 111-5, requiring the
establishment
of establish and maintain a statewide P-20
longitudinal data system.
(2) Each district shall furnish to the center not later than 5
weeks after the pupil membership count day and by June 30 of the
school fiscal year ending in the fiscal year, in a manner
prescribed by the center, the information necessary for the
preparation of the district and high school graduation report. This
information shall meet requirements established in the pupil
auditing manual approved and published by the department. The
center shall calculate an annual graduation and pupil dropout rate
for each high school, each district, and this state, in compliance
with nationally recognized standards for these calculations. The
center shall report all graduation and dropout rates to the senate
and house education committees and appropriations committees, the
state budget director, and the department not later than 30 days
after the publication of the list described in subsection (6).
(3) By the first business day in December and by June 30 of
each year, a district shall furnish to the center, in a manner
prescribed by the center, information related to educational
personnel as necessary for reporting required by state and federal
law.
(4) By June 30 of each year, a district shall furnish to the
center, in a manner prescribed by the center, information related
to safety practices and criminal incidents as necessary for
reporting required by state and federal law.
(5) If a district or intermediate district fails to meet the
requirements of this section, the department shall withhold 5% of
the total funds for which the district or intermediate district
qualifies
under this act article until the district or intermediate
district complies with all of those subsections. If the district or
intermediate district does not comply with all of those subsections
by the end of the fiscal year, the department shall place the
amount withheld in an escrow account until the district or
intermediate district complies with all of those subsections.
(6) Before publishing a list of schools or districts
determined to have failed to make adequate yearly progress as
required by the no child left behind act of 2001, Public Law 107-
110, the department shall allow a school or district to appeal that
determination. The department shall consider and act upon the
appeal within 30 days after it is submitted and shall not publish
the list until after all appeals have been considered and decided.
Sec.
20. (1) For 2011-2012, 2012-2013,
the basic foundation
allowance
is $8,019.00.$8,135.00.
(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 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 2010-2011, minus $470.00. 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 for
2011-2012 in an amount equal to the district's foundation allowance
for 2010-2011, minus $470.00.
(c) Except as otherwise provided in 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 district's foundation allowance for the 2010-2011 fiscal
year minus $470.00.
(d) 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.
(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 (15), the allocation calculated under this section shall
not include the adjustment described in subsection (15). 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.
(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 article, 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. However, this adjustment does not apply to an
achievement school.
(8) Except as otherwise provided in this subsection, for
pupils attending an achievement school and in membership in the
education achievement system, other than special education pupils,
the allocation calculated under this section is an amount per
membership pupil other than special education pupils equal to the
foundation allowance of the district in which the achievement
school is located, not to exceed the basic foundation allowance.
Notwithstanding section 101, for an achievement school that begins
operation 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 achievement school after
it begins operations, as determined by the department, divided by
the minimum number of hours of pupil instruction required under
section 101(3). The result of this calculation shall not exceed the
amount per membership pupil otherwise calculated under this
subsection. For the purposes of this subsection, if a public school
is transferred from a district to the state school reform/redesign
district or the achievement authority under section 1280c of the
revised school code, that public school is considered to be an
achievement school within the education achievement system and not
a school that is part of a district, and a pupil attending that
public school is considered to be in membership in the education
achievement system and not in membership in the district that
operated the school before the transfer.
(9) (8)
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.
(10) (9)
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.
(11) (10)
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.
(12) (11)
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
2011-2012,
the index shall be 0.93575. 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)
If the principals at the revenue estimating conference
reach
a consensus on the index described in subsection (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) 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. A district receiving an adjustment under this
subsection shall not receive as a result of this adjustment an
amount that exceeds 50% of the amount the district received as a
result
of this adjustment for 2010-2011. 2011-2012. This adjustment
shall
not be made after 2011-2012.2012-2013.
(14) 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. A district receiving
an adjustment under this subsection shall not receive as a result
of this adjustment an amount that exceeds 50% of the amount the
district received as a result of this adjustment for 2010-2011.
This adjustment shall not be made after 2011-2012.
(15) 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
Senate Bill No. 961 as amended April 25, 2012
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. A district receiving an adjustment
under this subsection shall not receive as a result of this
adjustment an amount that exceeds <<68.5%>> of the amount the
district received as a result of this adjustment for 2010-2011.
This
adjustment shall not be made after 2011-2012.2012-2013.
(16) 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. A
district receiving an adjustment under this subsection shall not
receive as a result of this adjustment an amount that exceeds 50%
of the amount the district received as a result of this adjustment
for 2010-2011. This adjustment shall not be made after 2011-2012.
(17) 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. A
district receiving an adjustment under this subsection shall not
receive as a result of this adjustment an amount that exceeds 50%
of the amount the district received as a result of this adjustment
for 2010-2011. This adjustment shall not be made after 2011-2012.
(18)
Payments to districts, university schools, or public
school academies, or the education achievement system 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.
(19) 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.
(20) 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 2011-2012, 2012-2013,
maximum public school
academy
allocation means $7,110.00.$7,323.00.
(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 2011-2012 and 2012-2013, 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 $5,769,000,000.00 for 2011-2012
and there is allocated an amount not to exceed $5,707,000,000.00
for
2012-2013 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) Subject to conditions set forth in this subsection, from
the allocation in subsection (1), there is allocated for 2011-2012
only an amount not to exceed $6,000,000.00 for payments to
districts that meet the eligibility requirements under this
subsection, for the reduction in school operating revenues
resulting from a settlement or other disposition of appeals
described in subdivision (a). A payment may only be made under this
subsection if a settlement agreement is signed by all applicable
parties. Payments made under this subsection shall be in accordance
with the settlement agreement. All of the following apply to
payments under this subsection:
(a) To be eligible for a payment under this subsection, a
district shall be determined by the department and the department
of treasury to meet all of the following:
(i) The district does not receive any state portion of its
foundation allowance, as calculated under section 20(4).
(ii) Before January 1, 2011, the owner of a natural-gas-powered
power plant located in a renaissance zone within the district's
geographic boundaries for 2009 and 2010 appealed to the Michigan
tax tribunal an order of the state tax commission for tax years
2009 and 2010 pursuant to section 154 of the general property tax
act, 1893 PA 206, MCL 211.154, and appealed to the state tax
commission the 2011 classification and valuation of the power
plant.
(iii) The district received a reduced amount of local school
operating revenue for tax years 2009, 2010, and 2011 as a result of
the exemptions of industrial personal property and commercial
personal property under section 1211 of the revised school code,
MCL 380.1211.
(iv) A settlement agreement has been signed to resolve the
Michigan tax tribunal appeal described in subparagraph (ii) and a
memorandum of understanding that stipulates terms of the settlement
has been executed by the parties.
(b) A payment made under this subsection shall be in addition
to renaissance zone reimbursement amounts paid in the 2009-2010 and
2010-2011 state fiscal years under section 26a to districts
eligible for payment under this subsection. The 2009-2010 and 2010-
2011 state fiscal year payments under section 26a to a district
receiving a payment under this subsection shall not be reduced as a
result of the reduction to the district's 2009 and 2010 taxable
value of real property under the appeals described in subdivision
(a)(ii).
(7) 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.
(j) (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.
(k) (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.
(l) (m)
"Taxable value per membership
pupil" means each of the
following divided by the district's membership:
Senate Bill No. 961 as amended April 25, 2012
(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 2011-2012 an amount not to exceed
$3,052,000,000.00 and there is allocated for 2012-2013 an amount
not to exceed <<$3,344,800,000.00>> 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) Subject to subsection (3) and section 296, the allocation
to a district under this section shall be an amount equal to the
sum of the amounts calculated under sections 20, 51a(2), 51a(3),
and 51a(11), minus the sum of the allocations to the district under
sections 22a and 51c.
(3) 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) 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) 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) 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) It is the intent of the legislature that all
constitutional obligations of this state have been fully funded
under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made by
an entity receiving funds under this article 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 (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) 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 (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 (2).
(9) 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) 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) 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 is allocated each fiscal year for 2011-
2012 and for 2012-2013 for supplemental payments to rural districts
under this section.
(2) From the allocation under subsection (1), there is
allocated each fiscal year for 2011-2012 and for 2012-2013 an
amount not to exceed $750,000.00 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 each fiscal year for 2011-2012
and for 2012-2013 an amount not to exceed $1,275,000.00 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. 22g. (1) From the funds appropriated in section 11, there
is allocated for 2012-2013 only an amount not to exceed
$10,000,000.00 for competitive assistance grants to districts and
intermediate districts. Money allocated in this section represents
a portion of the year-end state school aid fund balance for 2011-
2012.
(2) Funds received under this section may be used for
reimbursement of transition costs associated with the consolidation
of operations or services between 2 or more districts, the
consolidation of operations or services between 1 or more districts
and 1 or more municipalities, or the consolidation of districts or
intermediate districts. Grant funding shall be available for
consolidations that occur on or after June 1, 2012. The department
shall develop an application process and method of grant
distribution.
Sec. 22i. (1) From the funds appropriated under section 11,
there is appropriated for 2012-2013 an amount not to exceed
$40,000,000.00 for the purpose of pupil performance grants under
this section. In order to be eligible to receive a grant under this
section, a district shall comply with all of the following:
(a) A district offering any of grades 2 to 11 shall test each
pupil in each grade in both reading and math during a fall test
window established annually by the department, and shall administer
a supplemental test in reading and math during a spring test window
established annually by the department.
(b) The tests administered under subdivision (a) shall be
administered using a computer adaptive testing process that
provides immediate feedback to the pupil and teacher regarding the
pupil's academic level and progress.
(2) In order to be eligible for pupil performance grant
funding in math, a district must demonstrate, on a districtwide
basis, that pupils tested in grades 2 to 11 under subsection (1)(a)
and (b) demonstrate gains that exceed normative growth within the
standard error of measure between the 2 test dates under subsection
(1)(a). If a district asserts that it demonstrates this growth, the
district shall submit to the department, not later than the third
Friday in May, auditable data to that effect and shall indicate the
number of pupils tested.
(3) In order to be eligible for pupil performance grant
funding in reading, a district must demonstrate, on a districtwide
basis, that pupils tested in grades 2 to 11 under subsection (1)(a)
and (b) demonstrate gains that exceed normative growth within the
standard error of measure between the 2 test dates under subsection
(1)(a). If a district asserts that it demonstrates this growth, the
district shall submit to the department, not later than the third
Friday of May, auditable data to that effect and shall indicate the
number of pupils tested.
(4) The department shall compile, review, and verify the
district test results submitted by districts under subsection (2)
and subsection (3). The department shall distribute funding
allocated under subsection (1) to all eligible districts on an
equal per-pupil basis, using the number of pupils tested in the
eligible districts as the basis for distributing equal per-pupil
payments.
(5) As used in this section, "gains that exceed normative
growth within the standard error of measure" means, for all pupils
tested in grades 2 to 11 under subsection (1)(a) and (b), that the
district's percentage of pupils exceeding normative growth is at
least 51%.
Sec. 24. (1) From the appropriation in section 11, there is
allocated each fiscal year for 2011-2012 and for 2012-2013 an
amount not to exceed $8,000,000.00 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 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 licensing and regulatory
affairs 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 $2,114,800.00 for 2011-2012 and
there is allocated an amount not to exceed $2,135,800.00 for 2012-
2013 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 $765,600.00 for 2011-2012 and an
amount not to exceed $1,500,000.00 for 2012-2013 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. 25. (1) If a pupil is enrolled in an alternative
education program operated by an intermediate district or district
for the purpose of educating pupils who have been expelled from
school or referred from the court, and if the pupil is counted in
membership in another intermediate district or district, the
intermediate district or district operating the alternative
education program shall report the enrollment information to the
department and to the district in which the pupil is counted in
membership, and the intermediate district or district in which the
pupil is counted in membership shall pay to the intermediate
district or district operating the alternative education program an
amount equal to the amount of the foundation allowance or per pupil
payment as calculated under section 20 for the intermediate
district or district in which the pupil is counted in membership,
prorated according to the number of days of the school year ending
in the fiscal year the pupil is educated in the alternative
education program compared to the number of days of the school year
ending in the fiscal year the pupil was actually enrolled in the
intermediate district or district in which the pupil is counted in
membership. The foundation allowance or per pupil payment shall be
adjusted by the pupil's full-time equated status as affected by the
membership definition under section 6(4). If an intermediate
district or district does not make the payment required under this
section within 30 days after receipt of the report, the department
shall calculate the amount owed, shall deduct that amount from the
remaining state school aid payments to the intermediate district or
district for that fiscal year under this act, and shall pay that
amount to the intermediate district or district operating the
alternative education program. The intermediate district or
district in which the pupil is counted in membership and the
intermediate district or district operating the alternative
education program shall provide to the department all information
the department requires to enforce this section.
(2) If a pupil is enrolled in a strict discipline academy for
pupils who have been expelled or suspended from school or otherwise
placed in a strict discipline academy as described in section 1311g
of the revised school code, MCL 380.1311g, and if the pupil is
counted in membership in another district or intermediate district,
the strict discipline academy shall report the enrollment
information to the department and to the district or intermediate
district in which the pupil is counted in membership. Upon receipt
of enrollment information under this subsection indicating that a
pupil has enrolled in a strict discipline academy as described in
this subsection, the department shall do both of the following:
(a) Adjust the membership calculation for the district or
intermediate district in which the pupil was counted in membership
so that the district's or intermediate district's membership is
prorated to allow the district or intermediate district to receive
for each school day in which the pupil was enrolled in the district
an amount equal to 1/180 of the foundation allowance or per pupil
payment as calculated under section 20 for the district or
intermediate district. The foundation allowance or per pupil
payment shall be adjusted by the pupil's full-time equated status
as affected by the membership definition under section 6(4).
(b) Include in the calculation of state school aid for the
strict discipline academy for each school day in which the pupil is
enrolled in the strict discipline academy, not to exceed a number
of school days equal to the difference between 180 and the number
of school days in which the pupil was reported under this section
as previously enrolled in 1 or more other districts or intermediate
districts, an amount equal to 1/180 of the per pupil payment as
calculated under section 20 for the strict discipline academy. The
per pupil payment shall be adjusted by the pupil's full-time
equated status as affected by the membership definition under
section 6(4).
(3) The changes in calculation of state school aid required
under subsection (2) shall take effect as of the date that the
pupil enrolls in the strict discipline academy, and the department
shall base all subsequent payments under this act for the fiscal
year to the affected districts or intermediate districts and for
the strict discipline academy, as applicable, on this recalculation
of state school aid.
(4) If a pupil enrolls in a strict discipline academy as
described in subsection (2), if adjustments are made in
calculations pursuant to subsection (2) due to that enrollment, and
if the pupil subsequently ceases to be enrolled in the strict
discipline academy, the strict discipline academy shall notify the
department of the last date of the pupil's enrollment in the strict
discipline academy and the number of days the pupil was enrolled in
the strict discipline academy.
(5) If a pupil enrolls in a strict discipline academy as
described in subsection (2), the district or intermediate district
in which the pupil is counted in membership and the strict
discipline academy shall provide to the department all information
the department requires to comply with this section.
(6)
The changes in the requirements under this section that
are
contained in subsections (2) to (5) apply beginning with
payments
made for the 2011-2012 fiscal year.
Sec. 26a. From the state school aid fund appropriation in
section 11, there is allocated an amount not to exceed
$22,932,000.00
for 2010-2011 and an amount not to exceed
$26,300,000.00 each fiscal year for 2011-2012 and for 2012-2013 to
reimburse districts and intermediate districts pursuant to section
12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692,
for taxes levied in 2011 or 2012, as applicable. 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. 26b. (1) From the appropriation in section 11, there is
allocated each fiscal year for 2011-2012 and for 2012-2013 an
amount not to exceed $1,838,000.00 for payments to districts,
intermediate districts, and community college districts for the
portion of the payment in lieu of taxes obligation that is
attributable to districts, intermediate districts, and community
college districts pursuant to section 2154 of the natural resources
and environmental protection act, 1994 PA 451, MCL 324.2154.
(2) If the amount appropriated under this section is not
sufficient to fully pay obligations under this section, payments
shall be prorated on an equal basis among all eligible districts,
intermediate districts, and community college districts.
Sec. 31a. (1) From the state school aid fund money
appropriated in section 11, there is allocated each fiscal year for
2011-2012 and for 2012-2013 an amount not to exceed $317,695,500.00
for
payments to eligible districts, and eligible public school
academies, and the education achievement system under this section.
Subject to subsection (14), the amount of the additional allowance
under this section, other than funding under subsection (6) or (7),
shall be based on the number of actual pupils in membership in the
district or public school academy or the education achievement
system 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, or
for an achievement school that began operations as an achievement
school, after the pupil membership count day of the immediately
preceding school year, the basis for the additional allowance under
this section shall be the number of actual pupils in membership in
the public school academy or the education achievement system 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 or the education achievement system shall apply to the
department, in a form and manner prescribed by the department, and
a district or public school academy or the education achievement
system must meet all of the following:
(a) The sum of the district's or public school academy's or
the education achievement system's combined state and local revenue
per membership pupil in the current state fiscal year, as
calculated under section 20, is less than or equal to the basic
foundation allowance under section 20 for the current state fiscal
year.
(b) The district or public school academy or the education
achievement system agrees to use the funding only for purposes
allowed under this section and to comply with the program and
accountability requirements under this section.
(3) Except as otherwise provided in this subsection, an
eligible district or eligible public school academy or the
education achievement system shall receive under this section for
each membership pupil in the district or public school academy or
the education achievement system 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 the
public school academy's or the education achievement system's per
pupil amount calculated under section 20, not to exceed the basic
foundation allowance under section 20 for the current state fiscal
year, or of the public school academy's or the education
achievement system'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, or an
achievement school that began operations as an achievement school,
after the pupil membership count day of the immediately preceding
school year shall receive under this section for each membership
pupil in the public school academy or in the education achievement
system 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 or the education achievement
system's per membership pupil amount calculated under section 20
for the current state fiscal year.
(4) Except as otherwise provided in this section, a district
or public school academy, or the education achievement system,
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), or the
education achievement system if it meets this requirement, may use
not more than 20% of the funds it receives under this section for
school
security. A district, or the
public school academy, or the
education achievement system shall not use any of that money for
administrative costs or to supplant another program or other funds,
except for funds allocated to the district or public school academy
or the education achievement system under this section in the
immediately preceding year and already being used by the district
or public school academy or the education achievement system 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, or the education
achievement system if it operates a school breakfast program, shall
use from the funds received under this section an amount, not to
exceed $10.00 per pupil for whom the district or public school
academy or the education achievement system 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 each fiscal year for 2011-2012 and for 2012-2013 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 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 each fiscal year for 2011-2012 and for 2012-2013 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 and the education achievement system shall
submit to the department by July 15 of each fiscal year a report,
not to exceed 10 pages, on the usage by the district or public
school academy or the education achievement system of funds under
this section, which report shall include at least a brief
description of each program conducted by the district or public
school academy or the education achievement system 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
Senate Bill No. 961 as amended April 25, 2012
each of those programs, and the total number of at-risk pupils
served by each of those programs. If a district or public school
academy or the education achievement system does not comply with
this subsection, the department shall withhold an amount equal to
the August payment due under this section until the district or
public school academy or the education achievement system complies
with this subsection. If the district or public school academy or
the education achievement system does not comply with this
subsection by the end of the state fiscal year, the withheld funds
shall be forfeited to the school aid fund.
(9) In order to receive funds under this section, a district
or public school academy or the education achievement system shall
allow access for the department or the department's designee to
audit all records related to the program for which it receives
those funds. The district or public school academy or the education
achievement system 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-6K-12>>,
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-6K-12>>, or any combination of those grades,
in
school buildings in which the percentage of pupils described in
subsection (1) is at least 60% of the district's aggregate
percentage of those pupils and at least 30% of the total number of
pupils enrolled in the school building. To obtain a waiver, a
district must apply to the department and demonstrate to the
satisfaction of the department that the class size reductions would
be in the best interests of the district's at-risk pupils.
(11) A district or public school academy or the education
achievement system 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 or the education achievement system 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 or the education achievement system 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 use
not more than 20% of the funds it
receives under this section for specific alternative purposes
identified by the district or public school academy or the
education achievement system 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.If a district or
public school academy or the education achievement system uses
funds for alternative purposes allowed under the flexibility
provisions under this subsection, the district or public school
academy or the education achievement system shall maintain
documentation of the amounts used for those alternative purposes
and shall make that information available to the department upon
request.
(13) A district or public school academy that receives funds
under this section or the education achievement system 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) 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, or social studies 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.
(17) A district or public school academy that receives funds
under this section or the education achievement system may use
funds received under this section to provide an anti-bullying or
crisis intervention program.
Sec. 31d. (1) From the appropriations in section 11, there is
allocated
an amount not to exceed $21,627,100.00 for 2010-2011 and
an
amount not to exceed $22,495,100.00 each fiscal year for 2011-
2012 and for 2012-2013 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 each fiscal year for 2011-2012 and for 2012-2013 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 $3,800,000.00 for 2010-2011 and
an
amount not to exceed $9,625,000.00 each fiscal year for 2011-
2012 and for 2012-2013 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.
32d. (1) For 2011-2012, From
the funds appropriated in
section 11, there is allocated to eligible intermediate districts
and consortia of intermediate districts for great start readiness
programs
an amount not to exceed $104,275,000.00 from the state
school
aid fund money appropriated in section 11. $105,400,000.00
for 2012-2013. Funds allocated under this section shall be used to
provide
part-day, or full-day school-day, or GSRP/head start
blended comprehensive free compensatory classroom 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 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) Funds allocated under this section shall be allocated to
intermediate districts or consortia of intermediate districts. An
intermediate district or consortium of intermediate districts
receiving funding under this section shall act as the fiduciary for
the
great start readiness programs. For 2011-2012, 2012-2013, the
fiduciary intermediate districts and consortia of intermediate
districts
shall allocate the funding under this section as follows:
(a)
An amount not to exceed $95,400,000.00 allocated to
intermediate districts and consortia of intermediate districts as
directed by the department based on the formula in section 39. In
order to be eligible to receive funds allocated under this
subdivision from an intermediate district or consortium of
intermediate districts, a district or consortium of districts shall
comply with this section and section 39.
(b)
An amount not to exceed $8,875,000.00 allocated in grants
to
competitive great start readiness programs as directed by the
department
based on the grant award process in section 32l. In order
to
be eligible to receive funds allocated under this section from
an
intermediate district or consortium of intermediate districts, a
competitive
great start readiness program 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 2011-2012 2012-
2013 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
school-day, or GSRP/head
start blended 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 annually
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) The ongoing articulation of the kindergarten and first
grade programs offered by the program provider.
(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 uses qualified
personnel for this program, as follows:
(i) Teachers possessing proper training. For programs managed
directly
by an a district or intermediate district, a valid
teaching certificate and an early childhood (ZA or ZS) endorsement
are
required. This provision does not apply to an a district,
intermediate district, or competitive program 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 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, if an intermediate district applicant
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
intermediate
district used if the intermediate district applicant
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
2 years of the date of employment. Progress toward completion of
the compliance plan shall consist of at least 2 courses per
calendar year.
(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. However, if an
intermediate
district applicant demonstrates to the department that
it is unable to fully comply with this subparagraph after making
reasonable
efforts to comply, the intermediate district applicant
may
employ use paraprofessionals who have completed at least 1
course that earns college credit in early childhood education or
child
development if the intermediate district applicant 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 school-day
program funded under this section, each child enrolled in the
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
school-day program.
(7) An intermediate district or consortium of intermediate
districts 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.
An intermediate district, consortium of intermediate districts, or
competitive grant program 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 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:
(a) "GSRP/head start blended program" means a part-day program
funded under this section and a head start program, which are
combined for a school-day program.
(b)
(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 school-day program.
(c) (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 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 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.
(12)
Beginning with 2012-2013, it is the intent of the
legislature
The department shall develop
a plan for a multiyear
phased-in approach to transfer funding for great start readiness
programs under this section into an early childhood block grant
program, along with funding for great start collaboratives under
section 32b and funding for great parents, great start programs
under section 32j. The early childhood block grant program will
allocate funds to intermediate districts and consortia of
intermediate districts to act as fiduciaries and provide
administration of regional early childhood programs in conjunction
with their regional great start collaborative to improve program
quality, evaluation, and efficiency for early childhood programs.
The department shall work with intermediate districts, districts,
great start collaboratives, and the early childhood investment
corporation to establish a revised funding formula, application
process,
program criteria, and data reporting requirements. for
2012-2013.
Not later than January 1, 2012, the department shall
report
to the legislature its recommendations for the revisions
required
under this subsection.
Sec. 32p. (1) From the school aid fund appropriation in
section 11, there is allocated an amount not to exceed
$19,775,000.00 for 2012-2013 for the purpose of providing early
childhood funding to intermediate school districts in block grants.
The funding provided to each intermediate district under this
section shall be equal to the sum of all funding allocated under
former sections 32b, 32j, and 32l, as those sections were in effect
for 2011-2012 plus section 32d(2)(b) as that subdivision was in
effect for 2011-2012. In order to receive funding under this
section, each intermediate district shall provide an application to
the office of great start not later than August 15, 2012,
indicating the activities planned to be provided and children
served under the block grant.
(2) Each intermediate district or consortium of intermediate
districts that receives funding under this section shall convene a
local great start collaborative to address the availability of the
following 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. The goal of a local great start
collaborative is to ensure that every child in the community is
ready for kindergarten. Each local great start collaborative shall
ensure the coordination and expansion of infrastructure or
programming to support high-quality early childhood and childcare
programs.
(3) Not later than December 1, 2013, each intermediate
district shall provide a report to the department, the house and
senate appropriations subcommittees on school aid, and the house
and senate fiscal agencies detailing the activities actually
provided during 2012-2013 and the children actually served. The
block grants allocated under this section implement legislative
intent language for this purpose enacted in 2011 PA 62.
(4) An intermediate district or consortium of intermediate
districts that receives funding under this section may carry over
any unexpended funds received under this section for a fiscal year
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 An
eligible applicant receiving funds
from
an intermediate district or consortium of intermediate
districts
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
using aggregated data from the applicant's entire service area and
a
community collaboration plan ,
which that 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 applicant 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 applicant
and community early childhood programs have met their funded
enrollments.
The school district applicant
shall maintain a waiting
list of identified unserved eligible children who would be served
when openings are available.
(2)
A district An applicant receiving funds from an
intermediate
district or consortium of intermediate districts 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 applicant 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 applicant
in the following manner: 1/2
of
the percentage of the district's applicant's pupils in grades
1
to 5 in all districts served by the applicant 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
districts served by the
applicant on the pupil membership
count day of the 2 immediately preceding fiscal years.
(4) The initial allocation for each fiscal year to each
eligible
district applicant 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
applicant indicates it will be able to serve under subsection
(1)(c), whichever is less, by $3,400.00 and shall be distributed
among
districts applicant in decreasing order of concentration of
eligible children as determined by the formula under subsection
(3).
If the number of children a district an applicant indicates it
will be able to serve under subsection (1)(c) includes children
able to be served in a school-day program, then the number able to
be served in a 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 applicant indicates it will be able to serve
under subsection (1)(c) and determining the amount of the initial
allocation
to the district applicant under section 32d. A district
may contract with a head start agency to serve children enrolled in
head start with a 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 allocated for eligible districts applicants in
section 32d remain after the initial allocation under subsection
(4), the allocation under this subsection shall be distributed to
each
eligible district applicant
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 within
the applicant's service area served in the immediately preceding
fiscal
year or the number of children the district applicant
indicates it will be able to serve under subsection (1)(c),
whichever is less, minus the number of children for which the
district
applicant received funding in subsection (4) by $3,400.00.
(6)
If funds allocated for eligible districts applicants in
section 32d remain after the allocations under subsections (4) and
(5),
remaining funds shall be distributed to each eligible district
applicant 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 applicant 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 applicant
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 applicants 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.
(7) (8)
A district An applicant that offers supplementary
child
care funded by funds other than those received under this
section 32d 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.
applicants. 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.
(8) (10)
If, taking into account the total
amount to be
allocated
to the district applicant as calculated under this
section,
a district an applicant determines that it is able to
include additional eligible children in the great start readiness
program
without additional funds under section 32d, the district
applicant 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 2011-2012 2012-2013 to districts,
intermediate districts, and other eligible entities all available
federal
funding, estimated at $761,973,600.00, $812,328,500.00, 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 $250,000.00 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 $111,111,900.00 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 $12,200,000.00 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 $10,286,500.00 for
the Michigan charter school subgrant program, funded from DED-OESE,
charter school funds.
(f)
An amount estimated at $1,760,000.00 $2,393,500.00 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.
(g) (h)
An amount estimated at $517,479,800.00
$591,500,000.00
to provide supplemental programs to enable educationally
disadvantaged children to meet challenging academic standards,
funded from DED-OESE, title I, disadvantaged children funds.
(h) (i)
An amount estimated at $2,152,700.00
$250,000.00 for
the purpose of providing unified family literacy programs, funded
from DED-OESE, title I, even start funds.
(i) (j)
An amount estimated at $8,807,200.00
$8,878,000.00 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.
(j) (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.
(k) (n)
An amount estimated at $17,586,100.00
$24,600,000.00
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 2011-2012 2012-2013
to districts, intermediate
districts, and other eligible entities all available federal
funding,
estimated at $32,359,700.00, $33,514,100.00
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 $2,600,000.00 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) (1)(g), (h),
and (k) 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 article, the department shall allow an
intermediate district to submit a 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. 51a. (1) From the appropriation in section 11, there is
allocated for 2011-2012 an amount not to exceed $954,769,100.00 and
there is allocated an amount not to exceed $990,269,100.00 for
2012-2013 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
$363,400,000.00 for 2011-2012 and estimated at $365,000,000.00 for
2012-2013, 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 other entities, or federal funds
that may be available for this purpose, as determined by the
intermediate district plan prepared pursuant to article 3 of the
revised school code, MCL 380.1701 to 380.1766. All federal funds
allocated under this section in excess of those allocated under
this section for 2002-2003 may be distributed in accordance with
the flexible funding provisions of the individuals with
disabilities education act, Public Law 108-446, including, but not
limited to, 34 CFR 300.206 and 300.208. Notwithstanding section
17b, payments of federal funds to districts, intermediate
districts, and other eligible entities under this section shall be
paid on a schedule determined by the department.
(2) From the funds allocated under subsection (1), there is
allocated the amount necessary, estimated at $247,000,000.00 for
2011-2012 and estimated at $257,300,000.00 for 2012-2013, 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 (11), times
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, 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) or, for a pupil
described in this subsection who is counted in membership in the
education achievement system, times an amount equal to the amount
per membership pupil under section 20(7). 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 (11), 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.
(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 2011-2012 and for 2012-2013 an
amount not to exceed $1,000,000.00 to make payments to districts
and intermediate districts under this subsection. If the amount
allocated to a district or intermediate district for a fiscal year
under subsection (2)(b) is less than the sum of the amounts
allocated to the district or intermediate district for 1996-97
under sections 52 and 58, there is allocated to the district or
intermediate district for the fiscal year an amount equal to that
difference, adjusted by applying the same proration factor that was
used in the distribution of funds under section 52 in 1996-97 as
adjusted to the district's or intermediate district's necessary
costs of special education used in calculations for the fiscal
year. This adjustment is to reflect reductions in special education
program operations or services between 1996-97 and subsequent
fiscal years. Adjustments for reductions in special education
program operations or services shall be made in a manner determined
by the department and shall include adjustments for program or
service shifts.
(4) If the department determines that the sum of the amounts
allocated for a fiscal year to a district or intermediate district
under subsection (2)(a) and (b) is not sufficient to fulfill the
specified percentages in subsection (2), then the shortfall shall
be paid to the district or intermediate district during the fiscal
year beginning on the October 1 following the determination and
payments under subsection (3) shall be adjusted as necessary. If
the department determines that the sum of the amounts allocated for
a fiscal year to a district or intermediate district under
subsection (2)(a) and (b) exceeds the sum of the amount necessary
to fulfill the specified percentages in subsection (2), then the
department shall deduct the amount of the excess from the
district's
or intermediate district's payments under this act
article 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 2011-2012 and
for 2012-2013 to districts, intermediate districts, or other
eligible entities on a competitive grant basis for programs,
equipment, and services that the department determines to be
designed to benefit or improve special education on a statewide
scale.
(6) From the amount allocated in subsection (1), there is
allocated an amount not to exceed $2,200,000.00 each fiscal year
for 2011-2012 and for 2012-2013 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 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
Senate Bill No. 961 as amended April 25, 2012
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 article. 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), and (11) and sections 53a, 54, and 56
will exceed expenditures for that fiscal year under subsections
(2), (3), (6), and (11) 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),
Senate Bill No. 961 as amended April 25, 2012
and (11) 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) 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.
(9) 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.
(10) 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.
(11) From the funds allocated in subsection (1), there is
allocated the amount necessary, estimated at $5,000,000.00 for
2011-2012 and estimated at $4,800,000.00 for 2012-2013, 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 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, 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) or, for a
pupil described in this subsection who is counted in membership in
the education achievement system, times an amount equal to the
amount per membership pupil under section 20(7). 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. 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) Pupils with an emotional impairment counted in membership
by an intermediate district and provided educational services by
the department of community health.
(12) If it is determined that funds allocated under subsection
(2) or (11) 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 (11) or under section 51c in
order to fully fund those allocations. After payments under
subsections (2) and (11) 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 payments under section 56.
(13) The allocations under subsections (2), (3), and (11)
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.
(14) 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 2011-2012 and for 2012-2013 the
amount necessary, estimated at $647,500,000.00 for 2011-2012 and
estimated at $672,900,000.00 for 2012-2013, 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 each fiscal year 2011-2012 and for 2012-
2013 all available federal funding, estimated at $74,000,000.00
each fiscal year, 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 each fiscal year for 2011-2012 and
for 2012-2013:
(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), funded from DED-OSERS, handicapped preschool
incentive funds.
(c) An amount estimated at $45,000,000.00 for special
education programs funded by DED-OSERS, handicapped program,
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. 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.
(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 $12,300,000.00 of the allocation for 2010-
2011
and not more than $13,500,000.00 of
the allocation for 2011-
2012 and for 2012-2013 in section 51a(1) shall be allocated for
each fiscal year 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 2011-2012 and for 2012-2013 in section 51a(1)
shall be allocated for each fiscal year 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 $36,881,100.00 each fiscal year
for 2011-2012 and for 2012-2013 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 2010-2011 shall
be made in 2011-2012 at an amount per 2010-2011 membership pupil
computed by subtracting from $174,700.00 the 2010-2011 taxable
value behind each membership pupil and multiplying the resulting
difference by the 2010-2011 millage levied. Reimbursement for those
millages levied in 2011-2012 shall be made in 2012-2013 at an
amount per 2011-2012 membership pupil computed by subtracting from
$169,200.00 the 2011-2012 taxable value behind each membership
pupil and multiplying the resulting difference by the 2011-2012
millage levied.
Sec. 61a. (1) From the appropriation in section 11, there is
allocated an amount not to exceed $26,611,300.00 each fiscal year
for 2011-2012 and for 2012-2013 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 $8,693,000.00 for 2010-2011 and an amount
not
to exceed $9,000,000.00 each fiscal year for 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 2010-2011 shall
be made in 2011-2012 at an amount per 2010-2011 membership pupil
computed by subtracting from $190,400.00 the 2010-2011 taxable
value behind each membership pupil and multiplying the resulting
difference by the 2010-2011 millage levied. Reimbursement for those
millages levied in 2011-2012 shall be made in 2012-2013 at an
amount per 2011-2012 membership pupil computed by subtracting from
$186,600.00 the 2011-2012 taxable value behind each membership
pupil and multiplying the resulting difference by the 2011-2012
millage levied.
Sec. 74. (1) From the amount appropriated in section 11, there
is allocated an amount not to exceed $3,233,900.00 for 2011-2012
and an amount not to exceed $3,259,900.00 for 2012-2013 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.
Districts funded under this subsection shall not receive funding
under any other section of this article for nonspecial education
auxiliary services transportation.
(4) From the funds allocated in subsection (1), there is
allocated an amount not to exceed $1,608,900.00 for 2011-2012 and
an amount not to exceed $1,634,900.00 for 2012-2013 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 an
intermediate district serving as fiduciary
in a time and manner determined jointly by the department and the
department
of state police. The Upon
review and approval of the
statement
of cost, the department shall reimburse
forward to the
designated intermediate district serving as fiduciary the amount of
the reimbursement on behalf of each district and intermediate
district
for costs detailed on the statement within 30 45 days
after
receipt of the statement. Districts for which services are
provided
The designated intermediate
district 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 each
fiscal year for 2011-2012 and for 2012-2013 to the intermediate
districts the sum necessary, but not to exceed $62,108,000.00 each
fiscal year, to provide state aid to intermediate districts under
this section.
(2) Except as otherwise provided in this section, there shall
be
allocated to each intermediate district for 2011-2012 2012-2013
an
amount equal to 95% 100% of the amount allocated to the
intermediate
district under this subsection for 2010-2011.
2011-
2012. Funding provided under this section shall be used to comply
with requirements of this article and the revised school code that
are applicable to intermediate districts, and for which funding is
not provided elsewhere in this article, and to provide technical
assistance to districts as authorized by the intermediate school
board.
(3) (2)
Intermediate districts receiving
funds under this
section
subsection (2) 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.
(4) (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.
(5) (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.
(6) (5)
In order to receive funding under this
section,
subsection (2), 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 accounting and
auditing 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.
(7) In addition to the allocation in subsection (1), there is
allocated for 2012-2013 an amount not to exceed $2,000,000.00 for
incentive payments to each intermediate district that meets best
practices as determined by the department under this subsection.
The amount of the incentive payment is an amount equal to 3.2% of
the amount allocated to the intermediate district under subsection
(2). An intermediate district is eligible for an incentive payment
under this subsection if the intermediate district satisfies at
least 4 of the following requirements not later than June 1, 2013:
(a) The intermediate district enters into an agreement with
the department to do all of the following:
(i) Develop a service consolidation plan in 2012-3013 to reduce
operating costs that is in compliance with guidelines that were
developed by the department for former section 11d as that section
was in effect for 2010-2011.
(ii) Implement the service consolidation plan in 2013-2014 and
report to the department not later than February 1, 2014 on the
intermediate district's progress in implementing the service
consolidation plan.
(b) The intermediate district has obtained competitive bids on
the provision of 1 or more noninstructional services for the
intermediate district or its constituent districts with a value of
at least $50,000.00.
(c) The intermediate district develops a technology plan in
accordance with department policy on behalf of all constituent
districts within the intermediate district that integrates
technology into the classroom and prepares teachers to use digital
technologies as part of the instructional program of each of its
constituent districts.
(d) The intermediate district provides to parents and
community members a dashboard or report card demonstrating the
intermediate district's efforts to manage its finances responsibly.
The dashboard or report card shall include at least all of the
following for the 3 most recent school years for which the data are
available:
(i) A list of services offered by the intermediate district
that are shared by other local or intermediate districts and a list
of the districts or intermediate districts that participate.
(ii) The total cost savings to local or other intermediate
districts that share services with the intermediate district.
(iii) The number and percentage of teachers in the intermediate
district service area that are trained to integrate technology into
the classroom.
(iv) The total funds received from levying special education
and vocational education millages, and the number of special
education and vocational education pupils served with those
dollars.
(v) The number and percentage of individualized education
programs developed for special education pupils that contain
academic goals.
(e) The intermediate district works in a consortium with 1 or
more other intermediate districts to develop information management
system requirements and bid specifications that can be used as
statewide models. At a minimum, these specifications shall address
pupil management systems for both general and special education,
learning management tools, and business services.
Sec. 93. From the general fund money appropriated in section
11, there is allocated each fiscal year for 2011-2012 and for 2012-
2013 an amount not to exceed $1,304,300.00 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 pursuant to the state aid
to public libraries act, 1977 PA 89, MCL 397.551 to 397.576.
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 P-20
longitudinal data system and ensure that it meets the requirements
of subsection (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 center may enter into any interlocal agreements
necessary to fulfill its functions.
(4)
The center shall ensure that the statewide P-20
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) From the general fund appropriation in section 11, there
is allocated an amount not to exceed $5,768,700.00 for 2011-2012
and an amount not to exceed $9,218,400.00 for 2012-2013 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 each fiscal year for
2011-2012 and for 2012-2013 the amount necessary, estimated at
$2,893,200.00 and estimated at $193,500.00 for 2012-2013, to
support the operations of the center and to establish a P-20
longitudinal data system as provided under this section in
compliance with the assurance provided to the United States
department of education in order to receive state fiscal
stabilization
funds. The center shall cooperate with the state
education
agency department 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)
From the federal funds allocated in subsection (5), there
is
allocated for 2011-2012 2012-2013
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.for
competitive grants to
support collaborative efforts on the P-20 longitudinal data system.
All of the following apply to grants awarded under this subsection:
(a) The center shall award competitive grants to eligible
intermediate districts or a consortium of intermediate districts
based on criteria established by the center.
(b) Activities funded under the grant shall support the P-20
longitudinal data system portal and may include portal hosting,
hardware and software acquisition, maintenance, enhancements, user
support and related materials, and professional learning tools and
activities aimed at improving the utility of the P-20 longitudinal
data system.
(c) An applicant that received a grant under this subsection
for the immediately preceding fiscal year shall receive priority
for funding under this section. However, after 3 fiscal years of
continuous funding, an applicant is required to compete openly with
new applicants.
(7)
From the federal funds allocated in subsection (5), there
is
allocated for 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.
(8)
The center and the department shall work cooperatively to
develop
a cost allocation plan that pays for center expenses from
the
appropriate federal fund and state restricted fund revenues.
(7) (9)
Funds allocated under this section
that are not
expended in the fiscal year in which they were allocated may be
carried forward to a subsequent fiscal year and are appropriated
for the purposes for which the funds were originally allocated.
(8) (10)
The center may bill departments as
necessary in order
to fulfill reporting requirements of state and federal law. The
center may also enter into agreements to supply custom data,
analysis, and reporting to other principal executive departments,
state agencies, local units of government, and other individuals
and organizations. The center may receive and expend funds in
addition to those authorized in subsection (5) to cover the costs
associated with salaries, benefits, supplies, materials, and
equipment necessary to provide such data, analysis, and reporting
services.
(9) (11)
As used in this section:
(a) "DED-OESE" means the United States department of education
office of elementary and secondary education.
(b)
"High-need local school district" means a local
educational
agency as defined in the enhancing education through
technology
part of the no child left behind act of 2001, Public Law
107-110.
(b) (c)
"State education agency"
means the department.
Sec. 95. (1) From the funds appropriated in section 11, there
is allocated an amount not to exceed $1,750,000.00 for 2012-2013
and an amount not to exceed $500,000.00 for 2013-2014 for grants to
districts to support professional development and maintain inter-
rater reliability for principals and assistant principals in a
training program for implementing educator evaluations as required
under section 1249 of the revised school code, MCL 380.1249.
(2) For 2012-13, all districts may apply for funding under
this section. Beginning in 2013-2014, priority will be given to
districts that have new building administrators who have not
previously received training in training programs funded under this
section.
(3) The department shall approve funding under this section
for districts that implement professional development programs that
are consistent with the particular district's teacher evaluation
tools and that meet all of the following:
(a) Contain instructional content on methods of evaluating
teachers consistently across multiple grades and subjects.
(b) Include training on evaluation observation that is focused
on reliability and bias awareness and that instills skills needed
for consistent, evidence-based observations.
(c) Incorporate the use of videos of actual lessons for
applying rubrics and consistent scoring.
(d) Align with recommendations of the governor's council on
educator effectiveness.
(e) Provide ongoing support to maintain inter-rater
reliability.
(4) The department shall award grants to eligible districts in
an amount not to exceed $350.00 per participant.
(5) A district receiving funds under this section shall use
the funds only for training programs under this section.
(6) As used in this section, "inter-rater reliability" means a
consistency of measurement from different evaluators independently
applying the same evaluation criteria to the same classroom
observation.
Sec. 98. (1) From the general fund money appropriated in
section 11, there is allocated an amount not to exceed
$1,687,500.00
$4,387,500.00 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
2012-2013 for the purposes described in this section. In
addition,
from the federal funds appropriated in section 11, there
is
allocated for 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.
(2) The Michigan virtual university shall establish the center
for online learning research and innovation. The center for online
learning research and innovation shall do all of the following:
(a) Support and accelerate innovation in education through the
following activities:
(i) Test, evaluate, and recommend as appropriate new
technology-based instructional tools and resources.
(ii) Research, design, and recommend online and blended
education delivery models for use by pupils and teachers that
include age-appropriate multimedia instructional content.
(iii) Research, design, and recommend competency-based online
assessments.
(iv) Research, develop, and recommend annually to the
department criteria by which cyber schools and online course
providers should be monitored and evaluated to ensure a quality
education for their pupils.
(v) Based on pupil completion and performance data reported to
the department or the center for educational performance and
information from cyber schools and other online course providers
operating in this state, analyze the effectiveness of online
learning delivery models in preparing pupils to be college- and
career-ready and publish a report that highlights enrollment
totals, completion rates, and the overall impact on pupils. The
report shall be submitted to the house and senate appropriations
subcommittees on state school aid, the state budget director, the
house and senate fiscal agencies, and the department not later than
December 31, 2013.
(vi) Design professional development services for teachers,
school administrators, and school board members to learn how to
effectively integrate new technologies and online learning into
curricula and instruction.
(vii) Identify and share best practices for implementing online
and blended education delivery models with intermediate districts,
districts, and public school academies to accelerate the adoption
of innovative education delivery models statewide.
(b) Provide leadership for this state's system of online and
blended learning education by doing the following activities:
(i) Develop and report policy recommendations to the governor
and the legislature that accelerate the expansion of effective
online learning in this state's schools.
(ii) Provide a clearinghouse for research reports, academic
studies, evaluations, and other information related to online
learning.
(iii) Promote and distribute the most current instructional
design standards and guidelines for online teaching.
(iv) In collaboration with the department and interested
colleges and universities in this state, recommend to the
superintendent guidelines and standards for a new teacher
endorsement credential related to effective online and blended
instruction.
(v) Pursue public/private partnerships that include districts
to study and implement competency-based technology-rich online
learning models.
(vi) Convene focus groups and conduct annual surveys of
teachers, administrators, pupils, parents, and others to identify
barriers and opportunities related to online learning.
(vii) Produce an annual consumer awareness report for schools
and parents about effective online education providers and
education delivery models, performance data, cost structures, and
research trends.
(3) Subject to the provisions of this subsection, from the
funds allocated in subsection (1), there is allocated an amount not
to exceed $500,000.00 for fiscal year 2012-2013 to the Michigan
virtual school operated by the Michigan virtual university to
conduct and report on a year-long pilot study of a new performance-
based funding model for the Michigan virtual school. The purpose of
the pilot study is to determine the merits of a payment system for
online instructional programs based on pupil performance rather
than solely on enrollment and attendance factors. All of the
following apply to the pilot study and the funding under this
subsection:
(a) The Michigan virtual school shall randomly select a
minimum of 1,000 of its qualifying online course enrollments for
inclusion in the pilot study. The Michigan virtual school shall
issue a refund or credit to districts for all online course
enrollments included in the pilot study.
(b) The Michigan virtual school shall report to the department
the number of online course enrollments in the pilot study that
meet the following conditions:
(i) The pupil successfully completed the online course as
measured by assessments aligned to the course content and earned a
grade or credit from the district or public school academy in which
the pupil is enrolled.
(ii) The online course is taught by a Michigan certificated
teacher certified in the subject area in which the course is being
offered.
(iii) Where applicable, the online course is aligned with
Michigan curriculum standards.
(iv) The online course curriculum contains periodic online
pupil assessments.
(v) Pupils have access to the appropriate technology hardware
and software necessary to take the online course.
(vi) Parents or guardians and pupils have secure online access
to review periodic pupil progress and performance data.
(vii) The online instructor is available to interact with
parents or guardians and pupils using electronic communications.
(c) The department shall pay to Michigan virtual school from
the funding under this subsection an amount not to exceed the
equivalent of 1/12 of the state's minimum per pupil foundation
allowance for each online course enrollment included in the pilot
study that meets the conditions of subdivision (b) in the next
school aid payment after the report is received by the department.
(4) In order for the Michigan virtual university to receive
any funds allocated under this section, the Michigan virtual school
must maintain its accreditation status from recognized national and
international accrediting entities.
(5) (3)
The Michigan virtual high school
may offer online
course
offerings shall include, but are in addition to those
offered in the pilot study described in subsection (4), including,
but 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.for teachers, school administrators, other
school
employees, and school board members.
(4)
From the federal funds allocated in subsection (1), there
is
allocated for 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 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, 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.
(6) (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.
(7) (8)
Not later than December 1 of each
fiscal year, 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 districts
served by the
Michigan virtual high school.
(b)
A list of online course titles available to Michigan
schools.districts.
(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.
(e) An analysis of the results of the pilot study described in
subsection (4), including, but not limited to:
(i) A list of the districts that were selected to be part of
the pilot study.
(ii) The number of successful online course completions.
(iii) A list of the courses offered in the pilot study and the
completion rates for each course.
(iv) Identification of opportunities and barriers that must be
addressed in order to apply online learning performance funding
based on successful completions rather than enrollment and
attendance for online learning offerings statewide.
(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.
(a) "Blended learning" means a hybrid instructional delivery
model where pupils are provided face-to-face instruction, in part
at a supervised school facility away from home and in part through
computer-based and internet-connected learning environments with
some degree of pupil control over time, location, and pace of
instruction.
(b) "Cyber school" means a full-time online instructional
program for pupils that may or may not require attendance at a
physical school location.
(c) "Online instructional program" means a course of study
that generates a credit or a grade, provided in an interactive
computer-based and internet-connected learning environment, in
which pupils are separated from their teachers by time or location,
or both, and in which a Michigan certificated teacher is
Senate Bill No. 961 as amended April 25, 2012
responsible for providing direct instruction, diagnosing learning
needs, assessing pupil learning, prescribing intervention
strategies, reporting outcomes, and evaluating the effects of
instruction and support strategies.
Sec.
99. (1) From the state school aid fund money funds
appropriated
in section 11, there is allocated an amount not to
exceed
$2,515,000.00 for 2011-2012 and from the general fund
appropriation
in section 11, there is allocated an amount not to
exceed
$110,000.00 for 2011-2012 an
amount not to exceed
$2,625,000.00 << >> for 2011-2012 and <<AN AMOUNT NOT
TO EXCEED $2,725,000.00>> for 2012-2013 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 each fiscal year for 2011-2012 and for 2012-2013 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
Senate Bill No. 961 as amended April 25, 2012
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 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 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 each fiscal year for 2011-2012 and for 2012-2013 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) From the funds allocated in subsection (1), there is allocated for 2012-2013 an amount not to exceed $100,000.00 in a
form and manner determined by the department to a single
mathematics and science center that is a participant in the
Michigan STEM partnership. Funding under this subsection is
in addition to funding allocated under subsection (5) and shall
be used for connecting mathematics and science centers for science, technology, engineering, and mathematics purposes.>>
Senate Bill No. 961 as amended April 25, 2012
<<(7)(8)>> 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)(9)>> Not later
than September 30, 2013, the department shall
reevaluate and update the comprehensive master plan described in
subsection (1).
<<(9)(10)>> The
department shall give preference in awarding the
federal grants allocated in subsection (1) to eligible existing
mathematics and science centers.
<<(10)(11)>> 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)(12)>> 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)(13)>> 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 article 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,
article, 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 article 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, article, 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 article
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. school. 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. 102. (1) A district or intermediate district receiving
money under this act shall not adopt or operate under a deficit
budget, and a district or intermediate district shall not incur an
operating deficit in a fund during a school fiscal year. A district
or intermediate district that has an existing deficit fund balance,
that incurs a deficit fund balance in the most recently completed
school fiscal year, or that adopts a current year budget that
projects a deficit fund balance shall not be allotted or paid a
further sum under this act until the district or intermediate
district submits to the department for approval a budget for the
current school fiscal year and a plan to eliminate the district's
or intermediate district's deficit not later than the end of the
second school fiscal year after the deficit was incurred or the
budget projecting a deficit was adopted. Withheld state aid
payments shall be released after the department approves the
deficit reduction plan and ensures that the budget for the current
school fiscal year is balanced. After the department approves a
district's or intermediate district's deficit reduction plan, the
district or intermediate district shall post the deficit
elimination plan on the district's or intermediate district's
website.
(2) Not later than March 1 of each year, the department shall
prepare a report of deficits incurred or projected by districts and
intermediate districts in the immediately preceding fiscal year and
the progress made in reducing those deficits and submit the report
to the standing committees of the legislature responsible for K-12
education legislation, the appropriations subcommittees of the
legislature responsible for K-12 education appropriations, the
house and senate fiscal agencies, the state treasurer, and the
state budget director. The department shall also submit interim
reports concerning district and intermediate district deficits as
necessary.
(3) The amount of the permissible deficit for each school
fiscal year shall not exceed the amount of state aid reduced by an
executive order during that school fiscal year.
(4) A district or intermediate district that has an existing
deficit fund balance, that incurs a deficit fund balance in the
most recently completed school fiscal year, or that adopts a
current year budget that projects a deficit fund balance shall
submit to the department a monthly monitoring report on revenue and
expenditures in a form and manner prescribed by the department and
shall post these reports on its website.
(5) If a district or intermediate district is not able to
comply with the provisions of this section, the district or
intermediate district shall submit to the department a plan to
eliminate its deficit. Upon approval of the plan submitted, the
superintendent of public instruction may continue allotment and
payment of funds under this act, extend the period of time in which
a district or intermediate district has to eliminate its deficit,
and set special conditions that the district or intermediate
district must meet during the period of the extension. After the
department approves a district's or intermediate district's deficit
reduction plan under this subsection, the district or intermediate
district shall post the deficit elimination plan on the district's
or intermediate district's website.
(6) For the purposes of this section, "deficit fund balance"
means that term as defined in the Michigan public school accounting
manual published by the department.
Sec. 104. (1) In order to receive state aid under this
article, 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. Subject to subsection (2), from
the state school aid fund money appropriated in section 11, there
is
allocated for 2011-2012 2012-2013
an amount not to exceed
$35,194,400.00
$26,694,400.00 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 2011-2012 2012-2013
an amount estimated at
$8,250,000.00, funded from DED-OESE, title VI, state assessment
funds, and 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-OESE" means the DED office of elementary and
secondary education.
(c) "DED-OSERS" means the DED office of special education and
rehabilitative services.
Sec. 104c. From the state school aid fund money appropriated
in section 11, there is allocated for 2012-2013 an amount not to
exceed $18,000,000.00 for the purpose of providing every district
with access to a computer-adaptive test for each student enrolled
in the district. The computer-adaptive test provided shall be the
test that is chosen through a request for proposal process
undertaken by the department of education and that is determined as
the sole provider of the test. The computer-adaptive test chosen by
the department shall provide at least the following:
(a) Internet-delivered, standards-based assessment using a
computer-adaptive model to target the instructional level of each
pupil.
(b) Unlimited testing opportunities throughout the 2012-2013
school year.
(c) Valid and reliable diagnostic assessment data.
(d) Adjustment of testing difficulty based on previous answers
to test questions.
(e) Immediate feedback to pupils and teachers.
Sec. 107. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $22,000,000.00 for 2011-2012
2012-2013 for adult education programs authorized under this
section. Funds allocated 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), the money
allocated under this section shall be distributed as follows:
(a) For districts and consortia that received payments for
2010-2011
2011-2012 under this section, the amount allocated to
each
for 2011-2012 2012-2013 shall be based on the number of
participants
served by the district or consortium for 2011-2012,
2012-2013, 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 100.9% of the amount
the
district or consortium received for 2010-2011 2011-2012 under
this
section before any reallocations made for 2010-2011 2011-2012
under subsection (5).
(b)
A district or consortium that received funding in 2010-
2011
2011-2012 under this section may operate independently of a
consortium
or join or form a consortium for 2011-2012. 2012-2013.
The
allocation for 2011-2012 2012-2013
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 2010-2011. 2011-2012. A district or consortium described
in this subdivision shall notify the department of its intention
with
regard to 2011-2012 2012-2013
by October 1, 2011.2012.
(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 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 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 2011-2012 by October 1,
2011.
(5) A district that operated an adult education program in
2010-2011
2011-2012 and does not intend to operate a program in
2011-2012
2012-2013 shall notify the department by October 1, 2011
2012 of its intention. The money intended to be allocated under
this
section to a district that does not operate a program in 2011-
2012
2012-2013 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 2011-2012 2012-2013
under this section.
(6) 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) 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 (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) 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 (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) 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 (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) 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) The program tests participants described in subdivision
(a) before enrollment and upon completion of the program in
compliance with the department-approved assessment policy.
(c) (b) An individual may be enrolled in this program and
the
grant recipient shall receive funding according to subsection (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) 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) 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) 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 (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) An individual who is an inmate in a state correctional
facility shall not be counted as a participant under this section.
(15) 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) 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) In order to receive funds under this section, a district
shall furnish to the department, in a form and manner 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) 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)
As used in this section, "department" means the workforce
development
agency.Michigan strategic
fund.
Sec.
147. The allocation for 2010-2011 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. 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 15.96%
18.62%
for pension and at 8.50% 8.75% for
retiree health care for
the
2011-2012 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 14.73% 17.39
% for pension and 8.50% 8.75% for
retiree
health care for the 2011-2012 2012-2013
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% 22.46% for pension
and
8.75% for retiree health care for the 2012-2013 2013-2014
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%
21.19% for pension and 8.75% for retiree health care for
the
2012-2013
2013-2014 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 26 years for
2011-2012.
2012-2013. 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. 147b. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $133,000,000.00 $110,000,000.00
for 2011-2012 only for the purposes of this section. The money
allocated in this section represents a portion of the year-end
school aid fund balance for 2010-2011. Money allocated under this
section shall be deposited in the MPSERS retirement obligation
reform reserve fund.
(2) The MPSERS retirement obligation reform reserve fund is
created as a separate account within the state school aid fund. The
state treasurer may receive money or other assets from any source
for deposit into the MPSERS retirement obligation reform reserve
fund. The state treasurer shall direct the investment of the MPSERS
retirement obligation reform reserve fund. The state treasurer
shall credit to the MPSERS retirement obligation reform reserve
fund interest and earnings from the MPSERS retirement obligation
reform reserve fund. Money in the MPSERS retirement obligation
reform reserve fund at the close of the fiscal year shall remain in
the MPSERS retirement obligation reform reserve fund and shall not
lapse to the state school aid fund or to the general fund. The
department of treasury shall be the administrator of the MPSERS
retirement obligation reform reserve fund for auditing purposes.
(3)
It is the intent of the legislature that the speaker of
the
house of representatives or the senate majority leader, or
both,
shall convene a workgroup to examine retirement obligations
and
potential reforms to the Michigan public school employees'
retirement
system established under the public school employees
retirement
act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408. The
chair
of the senate appropriations committee and chair of the house
appropriations
committee, or his or her designee, each shall be a
member
of the workgroup, and the workgroup shall report to the
speaker
of the house of representatives or the senate majority
leader,
as applicable, by February 1, 2012, on reforms identified,
timelines
for implementing reforms, and estimated costs and savings
of
the identified reforms.The
funding allocated under subsection
(1) shall be designated as a work project for the purpose of paying
the employer cost of implementing proposed section 91a of Senate
Bill No. 1040 of the 96th Legislature, until the reserve fund has a
balance of $0.00. The work project has an estimated completion date
of September 30, 2017.
Sec. 152a. (1) As required by the court in the consolidated
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 2011-2012 an
amount not to exceed $34,064,500.00 and an amount not to exceed
$38,000,500.00 for 2012-2013 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
Senate Bill No. 961 as amended April 25, 2012
department shall not make any adjustment to these payments after
the final installment payment under section 17b is made.
Enacting section 1. (1) In accordance with section 30 of
article I of the state constitution of 1963, under article I of the
state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1896,
as amended by this amendatory act and by 2011 PA 62 and 2011 PA
299, total state spending on school aid from state sources for
fiscal year 2011-2012 is estimated at $11,062,976,000.00 and state
appropriations for school aid to be paid to local units of
government for fiscal year 2012-2013 are estimated at
$10,821,769,500.00.
(2) In accordance with section 30 of article I of the state
constitution of 1963, under article I of the state school aid act
of 1979, 1979 PA 94, MCL 388.1601 to 388.1896, as amended by this
amendatory act, total state spending on school aid from state
sources for fiscal year 2012-2013 is estimated at
<<$11,011,607,800.00>> and state appropriations for school aid to be
paid to local units of government for fiscal year 2012-2013 are
estimated at <<$10,855,311,900.00>>.
Enacting section 2. Sections 11p, 22e, 22f, 32b, 32g, 32j, 32l,
40, and 147a of the state school aid act of 1979, 1979 PA 94, MCL
388.1611p, 388.1622e, 388.1622f, 388.1632b, 388.1632g, 388.1632j,
388.1632l, 388.1640, and 388.1747a, are repealed effective October
1, 2012.
Enacting section 3. (1) Except as otherwise provided in
subsection (2), this amendatory act takes effect October 1, 2012.
(2) Sections 11, 99, and 147b of the state school aid act of
1979, 1979 PA 94, MCL 388.1611, 388.1699, and 388.1747b, as amended
by this amendatory act, take effect upon enactment of this
amendatory act.