June 20, 2013, Introduced by Reps. Oakes, Robinson, Singh, Zemke, Schor, Lipton, Dillon and Kivela and referred to the Committee on Education.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 7, 11, 20, and 22a (MCL 388.1607, 388.1611,
388.1620, and 388.1622a), section 7 as amended by 1996 PA 300,
section 11 as amended by 2012 PA 465, and sections 20 and 22a as
amended by 2012 PA 201.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. Costs for school operating purposes include all
expenditures necessary to carry out the powers and the financial
obligations of the district or intermediate district under the
revised school code.
Sec.
11. (1) Subject to subsection (3), for 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 $10,961,245,600.00
$10,928,614,200.00 from the state school aid fund and the sum of
$282,400,000.00 from the general fund. For the fiscal year ending
September 30, 2014, there is appropriated for the public schools of
this state and certain other state purposes relating to education
the sum of $11,211,382,300.00 from the state school aid fund, the
sum of $156,000,000.00 from the MPSERS retirement obligation reform
reserve fund created under section 147b, and the sum of
$263,000,000.00 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, 2013 and for the fiscal year ending September 30, 2014.
(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.
20. (1) For 2011-2012, and for 2012-2013, 2013-2014, the
basic
foundation allowance is $8,019.00.$8,049.00.
(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 greater
of $6,966.00 or 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) $10.00) 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. Except as otherwise provided in subdivision (h), for
2012-2013,
2013-2014, for a district that had a foundation
allowance for the immediately preceding state fiscal year that was
at least equal to the sum of $7,108.00 plus the total dollar amount
of all adjustments made from 2006-2007 to the immediately preceding
state fiscal year in the lowest foundation allowance among all
districts, but less than the basic foundation allowance for the
immediately preceding state fiscal year, the district shall receive
a foundation allowance in an amount equal to the district's
foundation allowance for the immediately preceding state fiscal
year. However, the foundation allowance for a district that had
less than the basic foundation allowance for the immediately
preceding state fiscal year shall not exceed the basic foundation
allowance for the current state fiscal year.
(b) Except as otherwise provided in this subsection, for a
district that in the immediately preceding state fiscal year had a
foundation allowance in an amount at least equal to the amount of
the basic foundation allowance for the immediately preceding state
fiscal year, the district shall receive a foundation allowance for
2011-2012 in an amount equal to the district's foundation allowance
for
2010-2011, minus $470.00. For 2012-2013, 2013-2014, 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 2012-2013 in an
amount equal to the district's foundation allowance for the
immediately preceding state fiscal year.
(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. For 2012-2013, 2013-2014,
except as otherwise
provided in subdivision (d), 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 immediately
preceding state fiscal year.
(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.
(h) For 2012-2013, for a district that had a foundation
allowance for the 2011-2012 state fiscal year of less than
$6,966.00, the district's foundation allowance is an amount equal
to $6,966.00.
(4) Except as otherwise provided in this subsection, the state
portion of a district's foundation allowance is an amount equal to
the district's foundation allowance or the basic foundation
allowance for the current state fiscal year, whichever is less,
minus the difference between the sum of the product of the taxable
value per membership pupil of all property in the district that is
nonexempt property times the district's certified mills and, for a
district with certified mills exceeding 12, the product of the
taxable value per membership pupil of property in the district that
is commercial personal property times the certified mills minus 12
mills and the quotient of the ad valorem property tax revenue of
the district captured under tax increment financing acts divided by
the district's membership excluding special education pupils. For a
district described in subsection (3)(c), the state portion of the
district's foundation allowance is an amount equal to $6,962.00
plus the difference between the district's foundation allowance for
the current state fiscal year and the district's foundation
allowance for 1998-99, minus the difference between the sum of the
product of the taxable value per membership pupil of all property
in the district that is nonexempt property times the district's
certified mills and, for a district with certified mills exceeding
12, the product of the taxable value per membership pupil of
property in the district that is commercial personal property times
the certified mills minus 12 mills and the quotient of the ad
valorem property tax revenue of the district captured under tax
increment financing acts divided by the district's membership
excluding special education pupils. For a district that has a
millage reduction required under section 31 of article IX of the
state constitution of 1963, the state portion of the district's
foundation allowance shall be calculated as if that reduction did
not occur. For a section 12a district, if school operating taxes
continue to be levied on behalf of the district to satisfy debt
obligations of the dissolved district under section 1211(10) of the
revised school code, MCL 380.1211, the taxable value per membership
pupil of property in the district used for the purposes of this
subsection is $0.00.
(5) The allocation calculated under this section for a pupil
shall be based on the foundation allowance of the pupil's district
of residence. 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) Except as otherwise provided in this subsection, for
pupils in membership, other than special education pupils, in a
public school academy, the allocation calculated under this section
is an amount per membership pupil other than special education
pupils in the public school academy equal to the foundation
allowance of the district in which the public school academy is
located or the state maximum public school academy allocation,
whichever is less. However, a public school academy 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 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) 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, MCL 380.1280c, 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.
(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 lesser of the sum of
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 plus $100.00 or the highest
foundation allowance among the original or affected districts.
(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.
(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.
(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 and for 2012-2013, the index
shall
be 1.00. If a consensus index is
not determined at the
revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(12)
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. This adjustment shall not
be
made after 2011-2012.
(13)
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.
(12) (14)
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. All of the following apply to districts
receiving a foundation allowance adjustment under this subsection:
(a)
Except as otherwise provided in this subsection,
subdivision, 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. For
an individual school or schools operated by a district qualifying
for a foundation allowance adjustment 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. subdivision. 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.
(b) 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.
(c) Notwithstanding subsection (8), for a district that is
formed or reconfigured by consolidation of 2 or more districts, 1
of which received an adjustment under this subsection for 2012-
2013, the resulting district's foundation allowance for 2013-2014
and each succeeding fiscal year shall be adjusted to be an amount
equal to the sum of the resulting district's foundation allowance
as calculated under subsection (8) excluding any adjustment
calculated under this subsection plus [(the original district's
adjustment under this subsection in 2012-2013 times the number of
pupils in the original district's membership for 2012-2013) divided
by the number of pupils in the resulting district's membership for
2013-2014].
(d) Beginning in 2013-2014, for a district that received an
adjustment for the immediately preceding fiscal year and that had a
foundation allowance as adjusted by this subsection for the
immediately preceding fiscal year equal to $6,966.00, the district
shall not receive an adjustment under this section for the current
fiscal year.
(15)
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.
(16)
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.
(13) (17)
Payments to districts, 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.
(14) (18)
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.
(15) (19)
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. For a section 12a district, if school operating taxes are
to be levied on behalf of the district to satisfy debt obligations
of the district under section 1211(10) of the revised school code,
MCL 380.1211, local school operating revenue does not include
school operating taxes levied within the district.
(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)
$10.00) 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 and 2012-2013,
maximum
public school academy allocation means $7,110.00.
(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 and purposes authorized under section 1211(10) of the revised
school code, MCL 380.1211.
(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) "Section 12a district" means a school district under the
governance of the intermediate superintendent as provided under
section 12a of the revised school code, MCL 380.12a.
(o) (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.
(p) (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.
22a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $5,776,000,000.00 for 2011-2012
and
there is allocated an amount not to
exceed $5,712,000,000.00
for
2012-2013 $5,630,000,000.00
for 2012-2013 and there is
allocated an amount not to exceed $5,567,000,000.00 for 2013-2014
for payments to districts and qualifying public school academies to
guarantee each district 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. For a section 12a district, if school
operating taxes are to be levied on behalf of the district to
satisfy debt obligations of the district under section 1211(10) of
the revised school code, MCL 380.1211, taxable value per membership
pupil of all property in the district that is nonexempt property
and taxable value per membership pupil of property in the district
that is commercial personal property is $0.00; ad valorem property
tax revenue of the district captured under tax increment financing
acts is $0.00; and certified mills do not include any mills levied
under that section.
(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. For a section 12a district, if school
operating taxes are to be levied on behalf of the district to
satisfy debt obligations of the district under section 1211(10) of
the revised school code, MCL 380.1211, ad valorem property tax
revenue captured under tax increment financing acts is $0.00.
(3) Beginning in 2003-2004, for pupils in membership in a
qualifying public school academy, 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 an amount equal to the 1994-95 per pupil
payment to the qualifying public school academy under section 20.
(4) A district or qualifying public school academy may use
funds allocated under this section in conjunction with any federal
funds for which the district 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).
(6) (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. For a section 12a
district, if school operating taxes are to be levied on behalf of
the district to satisfy debt obligations of the district under
section 1211(10) of the revised school code, MCL 380.1211, taxable
value per membership pupil is $0.00.
(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. For a section 12a district, if
school operating taxes are to be levied on behalf of the district
to satisfy debt obligations of the district under section 1211(10)
of the revised school code, MCL 380.1211, there are no school
operating taxes for the purposes of this subdivision.
(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) "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 as defined in
section 20.
(k) "Section 12a district" means that term as defined in
section 20.
(l) (k)
"Tax increment financing
acts" means 1975 PA 197, MCL
125.1651 to 125.1681, the tax increment finance authority act, 1980
PA 450, MCL 125.1801 to 125.1830, the local development financing
act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,
or the corridor improvement authority act, 2005 PA 280, MCL
125.2871 to 125.2899.
(m) (l) "Taxable
value per membership pupil" means each of the
following divided by the district's membership:
(i) For the number of mills by which the exemption from the
levy of school operating taxes on a homestead, qualified
agricultural property, qualified forest property, supportive
housing property, industrial personal property, and commercial
personal property may be reduced as provided in section 1211 of the
revised school code, MCL 380.1211, the taxable value of homestead,
qualified agricultural property, qualified forest property,
supportive housing property, industrial personal property, and
commercial personal property for the calendar year ending in the
current state fiscal year. For a section 12a district, if school
operating taxes are to be levied on behalf of the district to
satisfy debt obligations of the district under section 1211(10) of
the revised school code, MCL 380.1211, mills do not include any
mills levied under section 1211(10) of the revised school code, MCL
380.1211.
(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. For a section 12a district, if school operating taxes are to
be levied on behalf of the district to satisfy debt obligations of
the dissolved district under section 1211(10) of the revised school
code, MCL 380.1211, school operating taxes do not include any taxes
levied under section 1211(10) of the revised school code, MCL
380.1211.
Enacting section 1. In accordance with section 30 of article I
of the state constitution of 1963, total state spending on school
aid under article I of the state school aid act of 1979, 1979 PA
94, MCL 388.1601 to 388.1772, as amended by enrolled House Bill No.
4228 of the 97th Legislature and this amendatory act, from state
sources for fiscal year 2013-2014 is estimated at
$11,630,382,300.00 and state appropriations for school aid to be
paid to local units of government for fiscal year 2013-2014 are
estimated at $11,470,124,700.00.
Enacting section 2. This amendatory act takes effect October
1, 2013.
Enacting section 3. This amendatory act does not take effect
unless House Bill No. 4813 of the 97th Legislature is enacted into
law.