November 1, 2011, Introduced by Reps. Tlaib, Liss, Bauer, Rutledge, Ananich, Haugh and Constan and referred to the Committee on Education.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending section 22b (MCL 388.1622b), as amended by 2010 PA 110.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 22b. (1) From the state funds appropriated in section 11,
there
is allocated for 2009-2010 an amount not to exceed
$3,289,000,000.00
and there is allocated for
2010-2011 an amount
not to exceed $3,573,500,000.00 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) In addition to the funds allocated in subsection (1),
there
is allocated an amount estimated at $450,000,000.00 for 2009-
2010
and there is allocated an amount
estimated at $184,256,600.00
for 2010-2011 from the federal funds awarded to this state under
title XIV of the American recovery and reinvestment act of 2009,
Public Law 111-5. These funds shall be distributed in a form and
manner determined by the department based on an equal dollar amount
per the number of membership pupils used to calculate the final
state aid payment of the immediately preceding fiscal year and
shall be expended in a manner prescribed by federal law.
(3) Subject to subsection (4) and section 11, the allocation
to a district under this section shall be an amount equal to the
sum of the amounts calculated under sections 20, 20j, 51a(2),
51a(3), and 51a(12), minus the sum of the allocations to the
district under sections 22a and 51c.
(4) In order to receive an allocation under subsection (1),
each district shall do all of the following:
(a) Administer in each grade level that it operates in grades
1 to 5 a standardized assessment approved by the department of
grade-appropriate basic educational skills. A district may use the
Michigan literacy progress profile to satisfy this requirement for
grades 1 to 3. Also, if the revised school code is amended to
require annual assessments at additional grade levels, in order to
receive an allocation under this section each district shall comply
with that requirement.
(b) Comply with sections 1278a and 1278b of the revised school
code, MCL 380.1278a and 380.1278b.
(c) Furnish data and other information required by state and
federal law to the center and the department in the form and manner
specified by the center or the department, as applicable.
(d) Comply with section 1230g of the revised school code, MCL
380.1230g.
(e) Comply with sections 1502 and 1502a of the revised school
code, MCL 380.1502 and 380.1502a.
(5) Districts are encouraged to use funds allocated under this
section for the purchase and support of payroll, human resources,
and other business function software that is compatible with that
of the intermediate district in which the district is located and
with other districts located within that intermediate district.
(6) From the allocation in subsection (1), the department
shall pay up to $1,000,000.00 in litigation costs incurred by this
state related to commercial or industrial property tax appeals,
including, but not limited to, appeals of classification, that
impact revenues dedicated to the state school aid fund.
(7) From the allocation in subsection (1), the department
shall pay up to $1,000,000.00 in litigation costs incurred by this
state associated with lawsuits filed by 1 or more districts or
intermediate districts against this state. If the allocation under
this section is insufficient to fully fund all payments required
under this section, the payments under this subsection shall be
made in full before any proration of remaining payments under this
section.
(8) It is the intent of the legislature that all
constitutional obligations of this state have been fully funded
under sections 22a, 31d, 51a, and 51c. If a claim is made by an
entity receiving funds under this act that challenges the
legislative determination of the adequacy of this funding or
alleges that there exists an unfunded constitutional requirement,
the state budget director may escrow or allocate from the
discretionary funds for nonmandated payments under this section the
amount as may be necessary to satisfy the claim before making any
payments to districts under subsection (3). 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.
(9) If the local claims review board or a court of competent
jurisdiction makes a final determination that this state is in
violation of section 29 of article IX of the state constitution of
1963 regarding state payments to districts, the state budget
director shall use work project funds under subsection (8) or
allocate from the discretionary funds for nonmandated payments
under this section the amount as may be necessary to satisfy the
amount owed to districts before making any payments to districts
under subsection (3).
(10) If a claim is made in court that challenges the
legislative determination of the adequacy of funding for this
state's constitutional obligations or alleges that there exists an
unfunded constitutional requirement, any interested party may seek
an expedited review of the claim by the local claims review board.
If the claim exceeds $10,000,000.00, this state may remove the
action to the court of appeals, and the court of appeals shall have
and shall exercise jurisdiction over the claim.
(11) If payments resulting from a final determination by the
local claims review board or a court of competent jurisdiction that
there has been a violation of section 29 of article IX of the state
constitution of 1963 exceed the amount allocated for discretionary
nonmandated payments under this section, the legislature shall
provide for adequate funding for this state's constitutional
obligations at its next legislative session.
(12) If a lawsuit challenging payments made to districts
related to costs reimbursed by federal title XIX medicaid funds is
filed against this state, then, for the purpose of addressing
potential liability under such a lawsuit, the state budget director
may place funds allocated under this section in escrow or allocate
money from the funds otherwise allocated under this section, up to
a maximum of 50% of the amount allocated in subsection (1). If
funds are placed in escrow under this subsection, those funds are a
work project appropriation and the funds are carried forward into
the following fiscal year. The purpose of the work project is to
provide for any payments that may be awarded to districts as a
result of the litigation. The work project shall be completed upon
resolution of the litigation. In addition, this state reserves the
right to terminate future federal title XIX medicaid reimbursement
payments to districts if the amount or allocation of reimbursed
funds is challenged in the lawsuit. As used in this subsection,
"title XIX" means title XIX of the social security act, 42 USC 1396
to 1396v.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 96th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5140(request no.
00888'11).
(b) Senate Bill No.____ or House Bill No. 5139(request no.
00889'11).