HOUSE BILL No. 5433

March 8, 2016, Introduced by Rep. Pscholka and referred to the Committee on Appropriations.

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 4, 6, 11, 11a, 11j, 11k, 11m, 15, 18, 19, 20, 20d, 20f, 20g, 21f,

22a, 22b, 22d, 22g, 23a, 24, 24a, 24c, 25f, 25g, 26a, 26b, 26c, 31a, 31d, 31f, 32d,

32p, 35, 35a, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 55, 56, 61a, 61b, 62, 64b, 65, 67,

74, 81, 94, 94a, 95a, 98, 99h, 99s, 101, 102d, 104, 104b, 104c, 107, 147, 147a, 147c,

152a, 166b, 201, 202a, 203, 206, 207a, 207b, 207c, 209, 210b, 217, 219, 220, 222, 224,

225, 226, 229a, 230, 236, 236b, 236c, 237b, 241, 242, 245, 246, 252, 254, 256, 263,

263a, 264, 265, 265a, 267, 268, 269, 270, 274c, 275, 276, 277, 278, 279, 280, 281,

282, 283, 284, and 290 (MCL 388.1604, 388.1606, 388.1611, 388.1611a, 388.1611j,

388.1611k, 388.1611m, 388.1615, 388.1618, 388.1619, 388.1620, 388.1620d, 388.1620f,

388.1620g, 388.1621f, 388.1622a, 388.1622b, 388.1622d, 388.1622g, 388.1623a, 388.1624,

388.1624a, 388.1624c, 388.1625f, 388.1625g, 388.1626a, 388.1626b, 388.1626c,

388.1631a, 388.1631d, 388.1631f, 388.1632d, 388.1632p, 388.1635, 388.1635a, 388.1639,

388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1655,

388.1656, 388.1661a, 388.1661b, 388.1662, 388.1664b, 388.1665, 388.1667, 388.1674,

388.1681, 388.1694, 388.1694a, 388.1695a, 388.1698, 388.1699h, 388.1699s, 388.1701

388.1702d, 388.1704, 388.1704b, 388.1704c, 388.1707, 388.1747, 388.1747a, 388.1747c,

388.1752a, 388.1766b, 388.1801, 388.1802a, 388.1803, 388.1806, 388.1807a, 388.1807b,

388.1807c, 388.1809, 388.1810b, 388.1817, 388.1819, 388.1820, 388.1822, 388.1824,

388.1825, 388.1826, 388.1829a, 388.1830, 388.1836, 388.1836b, 388.1836c, 388.1837b,

388.1841, 388.1842, 388.1845, 388.1846, 388.1852, 388.1854, 388.1856, 388.1863,

388.1863a, 388.1864, 388.1865, 388.1865a, 388.1867, 388.1868, 388.1869, 388.1870,

388.1874c, 388.1875, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881,

388.1882, 388.1883, 388.1884, 388.1890), sections 4, 203, 219, 220, 242, and 254 as

amended and section 237b as added by 2012 PA 201, sections 6, 21f, 31a, 32d, and 107

as amended by 2015 PA 139, sections 11, 11a, 11j, 11k, 11m, 15, 20, 20d, 20f, 20g,

22a, 22b, 22d, 22g, 23a, 24, 24a, 24c, 25f, 26a, 26b, 26c, 31d, 31f, 32p, 39, 39a, 41,

51a, 51c, 51d, 53a, 54, 56, 61a, 62, 64b, 74, 81, 94, 94a, 95a, 98, 99h, 101, 104,

104b, 104c, 147, 147a, 147c, 152a, 201, 206, 207a, 207b, 207c, 209, 210b, 217, 222,

225, 226, 229a, 230, 236, 236b, 236c, 241, 246, 252, 256, 263, 263a, 264, 265, 265a,

267, 268, 269, 270, 276, 277, 278, 279, 280, 281, 282, 283, and 284 as amended and

sections 25g, 35, 35a, 55, 61b, 65, 67, 99s, 102d, 104d, and 274c as added by 2015 PA

85, section 18 as amended by 2015 PA 114, sections 19, 202a, 224, 245, and 275 as

amended by 2014 PA 196, section 166b as amended by 2012 PA 130, section 290 as amended

by 2013 PA 60, and by adding sections 11s, 20j, 21, 54b, 61c, and 78; and to repeal

acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

ARTICLE I

Sec. 4. (1) "Education achievement system" means the achievement authority and

all achievement schools.

(2) "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) "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) "Fiscal year" means the state fiscal year that commences October 1 and

continues through September 30.

(5) ~~"General educational development testing preparation program"~~ "HIGH SCHOOL

EQUIVALENCY TEST" 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~~ THE GED TEST

DEVELOPED BY THE GED TESTING SERVICE, THE TEST ASSESSING SECONDARY COMPLETION (TASC)

DEVELOPED BY CTB/MCGRAW-HILL, THE HISET TEST DEVELOPED BY THE EDUCATION TESTING

SERVICE (ETS), OR ANOTHER COMPARABLE TEST APPROVED BY THE DEPARTMENT.

(6) "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 education 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, the education achievement system, or an

intermediate district the sum of the product of ~~.90~~ .50 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~~

.50 times the final audited count from the supplemental count day for the immediately

preceding school year. ~~A district's, public school academy's, or intermediate~~

~~district's membership shall be adjusted as provided under section 25e for pupils who~~

~~enroll in the district, public school academy, or intermediate district after the~~

~~pupil membership count day.~~ All pupil counts used in this subsection are as determined

by the department and calculated by adding the number of pupils registered for

attendance plus pupils received by transfer and minus pupils lost as defined by rules

promulgated by the superintendent, and as corrected by a subsequent department audit.

For the purposes of this section and section 6a, for a school of excellence that is a

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

is in compliance with section 553a of the revised school code, MCL 380.553a, a pupil's

participation in the cyber school's educational program is considered regular daily

attendance; for the education achievement system, a pupil's participation in ~~an online~~

A VIRTUAL educational program of the education achievement system or of an achievement

school is considered regular daily attendance; and for a district a pupil's

participation in ~~an online~~ A VIRTUAL course as defined in section 21f 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, 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.

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 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 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, 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) To be counted in membership, a pupil shall meet the minimum age requirement

to be eligible to attend school under section 1147 of the revised school code, MCL

380.1147, or shall be enrolled under subsection (3) of that section, and shall be 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.

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

(D) Is considered to be homeless under 42 USC 11302~~, or was counted in membership~~

~~under this subparagraph in 2014-201~~5.

(iii) If a child does not meet the minimum age requirement to be eligible to

attend school for that school year under section 1147 of the revised school code, MCL

380.1147, but will be 5 years of age not later than December 1 of that school year,

the district may count the child in membership for that school year if the parent or

legal guardian has notified the district in writing that he or she intends to enroll

the child in kindergarten for that 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.)~~

HIGH SCHOOL EQUIVALENCY certificate shall not be counted in membership unless the

individual is a student with a disability as defined in R 340.1702 of the Michigan

administrative code. An individual participating in a job training program funded

under former section 107a or a jobs program funded under former section 107b,

administered by the ~~Michigan strategic fund~~ TALENT AND ECONOMIC 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) and section 101. 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 required under section 101, 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 required under

section 101 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 required under section 101, 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 required

under section 101 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. 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 shall be determined

by dividing the number of 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. However, to the extent allowable under

federal law, for a district or public school academy that provides evidence

satisfactory to the department that it used federal title I money in the 2 immediately

preceding school fiscal years to fund full-time kindergarten, full-time equated

memberships for pupils in kindergarten shall be determined by dividing the number of

class hours scheduled and provided per year per kindergarten pupil by a number equal

to 1/2 the number used for determining full-time equated memberships for pupils in

grades 1 to 12. The change in the counting of full-time equated memberships for pupils

in kindergarten that took effect for 2012-2013 is not a mandate.

(s) For a district, a public school academy, or the education achievement system

that has pupils enrolled in a grade level that was not offered by the district, 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 required under section 101 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 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) 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.

(w) 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~~ .50 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~~ .50 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.

(x) 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 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.

(y) Full-time equated memberships for 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

special education pupils who are not enrolled in kindergarten but are receiving early

childhood special education services under R 340.1755 or R 340.1862 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.

(z) 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.

(aa) 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

described in this subdivision was counted in membership 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 the purposes of determining

the district's membership.

(bb) 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.

(cc) 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.

(dd) For a pupil enrolled in a dropout recovery program that meets the

requirements of section 23a, the pupil shall be counted as 1/12 of a full-time equated

membership for each month that the district operating the program reports that the

pupil was enrolled in the program and was in full attendance. However, if the special

membership counting provisions under this subdivision and the operation of the other

membership counting provisions under this subsection result in a pupil being counted

as more than 1.0 FTE in a fiscal year, the payment made for the pupil under sections

22a and 22b shall not be based on more than 1.0 FTE for that pupil, and any portion of

an FTE for that pupil that exceeds 1.0 shall instead be paid under section 25g. The

district operating the program shall report to the center the number of pupils who

were enrolled in the program and were in full attendance for a month not later than

~~the tenth day of the next~~ 30 DAYS AFTER THE END OF THE month. A district shall not

report a pupil as being in full attendance for a month unless both of the following

are met:

(i) A personalized learning plan is in place on or before the first school day of

the month for the first month the pupil participates in the program.

(ii) The pupil meets the district's definition under section 23a of satisfactory

monthly progress for that month or, if the pupil does not meet that definition of

satisfactory monthly progress for that month, the pupil did meet that definition of

satisfactory monthly progress in the immediately preceding month and appropriate

interventions are implemented within 10 school days after it is determined that the

pupil does not meet that definition of satisfactory monthly progress.

(ee) A pupil participating in ~~an online~~ A VIRTUAL course under section 21f shall

be counted in membership in the district enrolling the pupil.

(ff) 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.

(GG) A NONPUBLIC PART-TIME PUPIL ENROLLED IN GRADES 1 TO 12 IN ACCORDANCE WITH

SECTION 166B SHALL BE COUNTED FOR NO MORE THAN 1/3 OF A FULL-TIME EQUATED MEMBERSHIP.

(5) "Public school academy" means that term as defined in section 5 of the

revised school code, MCL 380.5.

(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.

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 750.90h, 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.

(i) A pupil enrolled in the Michigan virtual school, for the pupil's enrollment

in the Michigan virtual 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 OR THE EVERY STUDENT SUCCEEDS

ACT OF 2015, PUBLIC LAW 114-95.

However, if a district educates pupils who reside in another district and if the

primary instructional site for those pupils is established by the educating district

after 2009-2010 and is located within the boundaries of that other district, the

educating district must have the approval of that other district to count those pupils

in membership.

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

(a) Except as provided in subdivision (b), the 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, 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, 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, for the purposes of this article only, a district

that had at least 40,000 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 to the

district of residence. Tuition pupil does not include a pupil who is a special

education pupil, a pupil described in subsection (6)(c) to (p), or a pupil whose

parent or guardian voluntarily enrolls the pupil in a district that is not the pupil's

district of residence. 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.

Sec. 11. (1) ~~For the fiscal year ending September 30, 2015, there is appropriated~~

~~for the public schools of this state and certain other state purposes relating to~~

~~education the sum of $11,814,097,400.00 from the state school aid fund, the sum of~~

~~$18,000,000.00 from the MPSERS retirement obligation reform reserve fund created under~~

~~section 147b, and the sum of $33,700,000.00 from the general fund.~~ For the fiscal year

ending September 30, ~~2016~~ 2017, there is appropriated for the public schools of this

state and certain other state purposes relating to education the sum of

~~$12,078,985,100.00~~ $12,062,479,300.00 from the state school aid fund, THE SUM OF

$72,000,000.00 FROM THE DETROIT PUBLIC SCHOOLS TRUST FUND, and the sum of

~~$45,900,000.00~~ $230,000,000.00 from the general fund. In addition, all other available

federal funds are appropriated ~~each fiscal year~~ for the fiscal ~~years~~ YEAR ending

~~September 30, 2015 and~~ September 30, ~~2016~~ 2017.

(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.

(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 296(2) and state payments in an amount equal to the remainder of the projected

shortfall shall be prorated in the manner provided under section 296(3).

(7) For ~~2015-2016~~ 2016-2017, 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.

Sec. 11j. From the appropriation in section 11, there is allocated an amount not

to exceed $126,500,000.00 for ~~2015-2016~~ 2016-2017 for payments to the school loan bond

redemption fund in the department of treasury on behalf of districts and intermediate

districts. Notwithstanding section 296 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 ~~2015-2016~~ 2016-2017, 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 appropriation in section 11, there is allocated for ~~2014-2015~~

~~an amount not to exceed $0.00 and there is allocated for 2015-2016~~ 2016-2017 an amount

not to exceed ~~$2,000,000.00~~ $3,000,000.00 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. (1) FROM THE GENERAL FUND APPROPRIATION IN SECTION 11, THERE IS

ALLOCATED $10,142,500.00 FOR 2016-2017 FOR THE PURPOSE OF PROVIDING SERVICES AND

PROGRAMS TO CHILDREN WHO RESIDE WITHIN THE BOUNDARIES OF A DISTRICT WITH THE MAJORITY

OF ITS TERRITORY LOCATED WITHIN THE BOUNDARIES OF A CITY IN WHICH A DECLARATION OF

EMERGENCY WAS ISSUED ON JANUARY 5, 2016. IN ADDITION TO THE FUNDING APPROPRIATED IN

SECTION 11, THERE IS APPROPRIATED AND ALLOCATED $100.00 FROM THE FLINT EMERGENCY

RESERVE FUND FOR THE PURPOSES OF THIS SECTION.

(2) FROM THE ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED TO A DISTRICT WHOSE

TERRITORY IS LOCATED OR MOSTLY LOCATED IN A CITY IN WHICH A DECLARATION OF EMERGENCY

WAS ISSUED ON JANUARY 5, 2016 AND THAT HAS A PUPIL MEMBERSHIP OF AT LEAST 5,000, AN

AMOUNT NOT TO EXCEED $1,292,500.00 FOR THE PURPOSE OF EMPLOYING SCHOOL NURSES AND

SCHOOL SOCIAL WORKERS. THE DISTRICT SHALL PROVIDE A REPORT TO THE DEPARTMENT IN A

FORM, MANNER AND FREQUENCY APPROVED BY THE DEPARTMENT. THE DEPARTMENT SHALL PROVIDE A

COPY OF THAT REPORT TO THE GOVERNOR, THE HOUSE AND SENATE SCHOOL AID SUBCOMMITTEES,

THE HOUSE AND SENATE FISCAL AGENCIES AND THE STATE BUDGET DIRECTOR WITHIN 5 DAYS OF

RECEIPT. THE REPORT SHALL PROVIDE THE FOLLOWING INFORMATION:

(A) HOW MANY PERSONNEL WERE HIRED USING THE FUNDS APPROPRIATED IN THIS

SUBSECTION.

(B) A DESCRIPTION OF THE SERVICES PROVIDED TO STUDENTS BY THOSE PERSONNEL.

(B).

(D) ANY OTHER INFORMATION THE DEPARTMENT CONSIDERS NECESSARY TO ENSURE THE

CHILDREN DESCRIBED IN SUBSECTION (1) RECEIVED APPROPRIATE LEVELS AND TYPES OF

SERVICES.

(3) FROM THE ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED TO AN INTERMEDIATE

DISTRICT THAT HAS A CONSTITUENT DISTRICT DESCRIBED IN SUBSECTION (2) AN AMOUNT NOT TO

EXCEED $950,000.00 TO AUGMENT STAFF FOR THE PURPOSE OF PROVIDING ADDITIONAL EARLY

CHILDHOOD SERVICES AND NUTRITIONAL SERVICES TO CHILDREN DESCRIBED IN SUBSECTION (1),

REGARDLESS OF LOCATION OF SCHOOL OF ATTENDANCE. EARLY CHILDHOOD SERVICES MEANS STATE

EARLY ON SERVICES AS DEFINED IN SUBSECTION (4) AND EARLY LITERACY SERVICES. IN

ADDITION, FUNDS ALLOCATED UNDER THIS SUBSECTION MAY ALSO BE EXPENDED TO PROVIDE

INFORMATIONAL RESOURCES TO PARENTS, EDUCATORS AND THE COMMUNITY AND COORDINATE

SERVICES WITH OTHER LOCAL AGENCIES. THE INTERMEDIATE DISTRICT SHALL PROVIDE A REPORT

TO THE DEPARTMENT IN A FORM, MANNER AND FREQUENCY APPROVED BY THE DEPARTMENT. THE

DEPARTMENT SHALL PROVIDE A COPY OF THAT REPORT TO THE GOVERNOR, THE HOUSE AND SENATE

SCHOOL AID SUBCOMMITTEES, THE HOUSE AND SENATE FISCAL AGENCIES AND THE STATE BUDGET

DIRECTOR WITHIN 5 DAYS OF RECEIPT. THE REPORT SHALL PROVIDE THE FOLLOWING INFORMATION:

(A) HOW MANY PERSONNEL WERE HIRED USING THE FUNDS APPROPRIATED IN THIS

SUBSECTION.

(B) A DESCRIPTION OF THE SERVICES PROVIDED TO CHILDREN BY THOSE PERSONNEL.

(D) HOW MANY CHILDREN RECEIVED EACH TYPE OF SERVICE IDENTIFIED IN SUBDIVISIONS

(B) AND (C).

(E) WHAT TYPES OF INFORMATIONAL RESOURCES AND COORDINATION EFFORTS WERE PROVIDED.

(F) ANY OTHER INFORMATION THE DEPARTMENT CONSIDERS NECESSARY TO ENSURE THE

CHILDREN DESCRIBED IN SUBSECTION (1) RECEIVED APPROPRIATE LEVELS AND TYPES OF

SERVICES.

(4) FROM THE ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED $6,400,000.00 TO

INTERMEDIATE DISTRICTS DESCRIBED IN SUBSECTION (3) TO PROVIDE STATE EARLY ON SERVICES

FOR CHILDREN DESCRIBED IN SUBSECTION (1) LESS THAN FOUR YEARS OF AGE AS OF SEPTEMBER

1, 2016. THE DEPARTMENT SHALL ADMINISTER THE STATE EARLY ON SERVICES CONSISTENT WITH

THE DEFINITIONS OF SERVICES CONTAINED IN THE EARLY ON MICHIGAN STATE PLAN; HOWEVER,

ALL CHILDREN LESS THAN FOUR YEARS OF AGE AS OF SEPTEMBER 1, 2016 DESCRIBED IN

SUBSECTION (1) SHALL BE ASSESSED AND EVALUATED AT LEAST TWICE ANNUALLY.

(5) FROM THE ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED $1,500,000.00 TO

INTERMEDIATE DISTRICTS DESCRIBED IN SUBSECTION (3) TO ENROLL CHILDREN DESCRIBED IN

SUBSECTION (1) IN SCHOOL-DAY GREAT START READINESS PROGRAMS, REGARDLESS OF HOUSEHOLD

INCOME ELIGIBILITY REQUIREMENTS CONTAINED IN SECTION 39. THE DEPARTMENT SHALL

ADMINISTER THIS FUNDING CONSISTENT WITH ALL OTHER PROVISIONS OF THE GREAT START

READINESS PROGRAMS CONTAINED IN SECTION 32D AND SECTION 39.

(6) IN ADDITION TO OTHER FUNDING ALLOCATED AND APPROPRIATED IN THIS SECTION,

THERE IS APPROPRIATED AN AMOUNT NOT TO EXCEED $15,000,000.00 FOR STATE RESTRICTED

CONTINGENCY FUNDS. THESE CONTINGENCY FUNDS ARE NOT AVAILABLE FOR EXPENDITURE UNTIL

THEY HAVE BEEN TRANSFERRED TO A SECTION WITHIN THIS ARTICLE UNDER SECTION 393(2) OF

THE MANAGEMENT AND BUDGET ACT, 1984 PA 431, MCL 18.1393.

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, from the proceeds of a loan to

the district under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

141.942, or from the proceeds of millage levied or pledged under section 1211 of the

revised school code, MCL 380.1211. State aid overpayments made in special education or

special education transportation payments may be recovered from subsequent special

education or special education transportation payments, from the proceeds of a loan to

the district under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

141.942, or from the proceeds of millage levied or pledged under section 1211 of the

revised school code, MCL 380.1211.

(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 and may advance payments to the

district otherwise authorized under this article if the district would otherwise

experience a significant hardship in satisfying its financial obligations. ~~For a~~

~~district that is a strict discipline academy established under sections 1311b to 1311m~~

~~of the revised school code, MCL 380.1311b to 380.1311m, and that claimed a hardship in~~

~~2014-2015 because of an overpayment caused by a miscalculation of its pupil membership~~

~~for 2013-2014, the department shall consider the amount of repayment made by the~~

~~district as of the effective date of the amendatory act that added this sentence to~~

~~constitute full repayment and the district is not required to continue making~~

~~repayment for the overpayment that occurred in 2013-2014.~~

(3) If, based on an audit by the department or the department's designee or

because of new or updated information received by the department, the department

determines that the amount paid to a district or intermediate district under this

article for the current fiscal year or a prior fiscal year was incorrect, the

department shall make the appropriate deduction or payment in the district's or

intermediate district's allocation in the next apportionment after the adjustment is

finalized. The deduction or payment shall be calculated according to the law in effect

in the fiscal year in which the incorrect amount was paid. If the district does not

receive an allocation for the fiscal year or if the allocation is not sufficient to

pay the amount of any deduction, the amount of any deduction otherwise applicable

shall be satisfied from the proceeds of a loan to the district under the emergency

municipal loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds of

millage levied or pledged under section 1211 of the revised school code, MCL 380.1211,

as determined by the department.

(4) The department may conduct audits, or may direct audits by designee of the

department, for the current fiscal year and the immediately preceding 3 fiscal years

of all records related to a program for which a district or intermediate district has

received funds under this article.

(5) 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.

(6) In addition to funds appropriated in section 11 for all programs and

services, there is appropriated for ~~2014-2015 and for 2015-2016~~ 2016-2017 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, other supplies, and any other school operating expenditures defined in

section 7. However, not more than 20% of the total amount received by a district under

sections 22a and 22b or received by an intermediate district under section 81 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) A district or intermediate district shall adopt an annual budget in a manner

that complies with the uniform budgeting and accounting act, 1968 PA 2, MCL 141.421 to

141.440a. Within 15 days after a district board adopts its annual operating budget for

the following school fiscal year, or after a district board adopts a subsequent

revision to that budget, the district shall make all of the following available

through a link on its website homepage, or may make the information available through

a link on its intermediate district's website homepage, 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.

(D) All other personnel costs.

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

subcategories:

(A) Instruction.

(B) Support services.

(D) Operations and maintenance.

(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 employees health benefits

act, 2007 PA 106, MCL 124.75.

(v) The district's written policy governing procurement of supplies, materials,

and equipment.

(vi) The district's written policy establishing specific categories of

reimbursable expenses, as described in section 1254(2) of the revised school code, MCL

380.1254.

(vii) Either the district's accounts payable check register for the most recent

school fiscal year or a statement of the total amount of expenses incurred by board

members or employees of the district that were reimbursed by the district for the most

recent school fiscal year.

(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.

(g) Any deficit elimination plan or enhanced deficit elimination plan the

district was required to submit under the revised school code.

(h) Identification of all credit cards maintained by the district as district

credit cards, the identity of all individuals authorized to use each of those credit

cards, the credit limit on each credit card, and the dollar limit, if any, for each

individual's authorized use of the credit card.

(i) Costs incurred for each instance of out-of-state travel by the school

administrator of the district that is fully or partially paid for by the district and

the details of each of those instances of out-of-state travel, including at least

identification of each individual on the trip, destination, and purpose.

(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 purposes of determining the reasonableness of expenditures, whether a

district or intermediate district has received the proper amount of funds under this

article, 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, and at such other times as determined

by the department, at the expense of the district or intermediate district, as

applicable. The audits must be performed 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. A district or

intermediate district shall retain these records for the current fiscal year and from

at least the 3 immediately preceding fiscal years.

(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%.

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 1 each year for

reporting the prior fiscal year data:

(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 1 each fiscal year, each district and intermediate district shall

submit to the center, in a manner prescribed by the center, annual comprehensive

financial data CONSISTENT WITH THE DISTRICT OR INTERMEDIATE DISTRICT’S AUDITED

FINANCIAL STATEMENTS AND 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), OR IF THE DEPARTMENT DETERMINES THAT THE FINANCIAL DATA REQUIRED

UNDER SUBSECTION (5) IS NOT CONSISTENT WITH AUDITED FINANCIAL STATEMENTS, 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.

(11) If a district or intermediate district does not comply with subsection (2),

the department may withhold up to 10% of the total 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 subsection (2). If the district or intermediate district does

not comply with subsection (2) by the end of the fiscal year, the district or

intermediate district forfeits the amount withheld.

(12) Not later than November 1, ~~2015~~ 2016, if a district or intermediate district

offers ~~online~~ VIRTUAL learning under section 21f, the district or intermediate

district shall submit to the department a report that details the per-pupil costs of

operating the ~~online~~ VIRTUAL learning by vendor type. The report shall include at

least all of the following information concerning the operation of ~~online~~ VIRTUAL

learning for the school fiscal year ending June 30, ~~2015~~ 2016:

(a) The name of the district operating the ~~onlin~~e VIRTUAL learning and of each

district that enrolled students in the ~~online~~ VIRTUAL learning.

(b) The total number of students enrolled in the ~~onlin~~e VIRTUAL learning and the

total number of membership pupils enrolled in the ~~online~~ VIRTUAL learning.

~~online~~ VIRTUAL learning, the name of that district.

(d) The district in which the pupil was enrolled before enrolling in the district

offering ~~online~~ VIRTUAL learning.

(e) The number of participating students who had previously dropped out of

school.

(f) The number of participating students who had previously been expelled from

school.

(g) The total cost to enroll a student in the program. This cost shall be

reported on a per-pupil, per-course, per-semester or trimester basis by vendor type.

The total shall include costs broken down by cost for content development, content

licensing, training, ~~online~~ VIRTUAL instruction and instructional support, personnel,

hardware and software, payment to each ~~online~~ VIRTUAL learning provider, and other

costs associated with operating ~~online~~ VIRTUAL learning.

(h) The name of each ~~online~~ VIRTUAL education provider contracted by the district

and the state in which each ~~online~~ VIRTUAL education provider is headquartered.

(13) Not later than March 31, ~~2016~~ 2017, the department shall submit to the house

and senate appropriations subcommittees on state school aid, the state budget

director, and the house and senate fiscal agencies a report summarizing the per-pupil

costs by vendor type of ~~online~~ VIRTUAL courses available under section 21f.

(14) As used in subsections (12) and (13), "vendor type" means the following:

(a) ~~Online~~ VIRTUAL courses provided by the Michigan Virtual University.

(b) ~~Online~~ VIRTUAL courses provided by a school of excellence that is a cyber

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

Michigan public school.

(d) ~~Online~~ VIRTUAL courses created and offered by a district or intermediate

district.

(15) An allocation to a district or another entity under this article is

contingent upon the district's or entity's compliance with this section.

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

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 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 school or district accountability designations as

required by the no child left behind act of 2001, Public Law 107-110 OR THE EVERY

STUDENT SUCCEEDS ACT OF 2015, PUBLIC LAW 114-95, 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.

~~(7) It is the intent of the legislature to implement not later than 2016-2017,~~

~~statewide standard reporting requirements for education data approved by the~~

~~department in conjunction with the center. The department shall work with the center,~~

~~intermediate districts, districts, and other interested stakeholders to develop~~

~~recommendations on the implementation of this policy change. A district or~~

~~intermediate district shall implement the statewide standard reporting requirements~~

~~not later than 2014-2015 or when a district or intermediate district updates its~~

~~education data reporting system, whichever is later.~~

Sec. 20. (1) For ~~2015-2016~~ 2016-2017, both of the following apply:

(a) The basic foundation allowance is $~~8,169.00~~ $8,229.00.

(b) The minimum foundation allowance is ~~$7,391.00~~ $7,511.00.

(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) Except as otherwise provided in this subdivision, for a district that had a

foundation allowance for the immediately preceding state fiscal year that was equal to

the minimum foundation allowance for the immediately preceding state fiscal year, 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 difference between the basic foundation allowance

for the current state fiscal year and basic foundation allowance for the immediately

preceding state fiscal year minus ~~$23.00~~ $20.00) times (the difference between the

district's foundation allowance for the immediately preceding state fiscal year and

the minimum foundation allowance for the immediately preceding state fiscal year)

divided by the difference between the basic foundation allowance for the current state

fiscal year and the minimum 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. ~~For the~~

~~purposes of this subdivision, for 2015-2016, the minimum foundation allowance for the~~

~~immediately preceding state fiscal year shall be considered to be $7,251.00.~~

(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 equal

to the amount of the basic foundation allowance for the immediately preceding state

fiscal year, the district shall receive a foundation allowance for 2015-2016 in an

amount equal to the basic foundation allowance for 2015-2016.

state fiscal year that was greater than the basic foundation allowance for the

immediately preceding state fiscal year, the district's foundation allowance is an

amount equal to the sum of the district's foundation allowance for the immediately

preceding state fiscal year plus the lesser of the increase in the basic foundation

allowance for the current state fiscal year, as compared to the immediately preceding

state fiscal year, or the product of the district's foundation allowance for the

immediately preceding state fiscal year times the percentage increase in the United

States consumer price index in the calendar year ending in the immediately preceding

fiscal year as reported by the May revenue estimating conference conducted under

section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b.

(d) For a district that has a foundation allowance that is not a whole dollar

amount, the district's foundation allowance shall be rounded up to the nearest whole

dollar.

~~(e) For a district that received a payment under section 22c as that section was~~

~~in effect for 2014-2015, the district's 2014-2015 foundation allowance shall be~~

~~considered to have been an amount equal to the sum of the district's actual 2014-2015~~

~~foundation allowance as otherwise calculated under this section plus the per-pupil~~

~~amount of the district's equity payment for 2014-2015 under section 22c as that~~

~~section was in effect for 2014-2015.~~

(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 local portion of the district's foundation allowance

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 local portion of the district's foundation

allowance 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 receiving district, if

school operating taxes continue to be levied on behalf of a dissolved district that

has been attached in whole or in part to the receiving district to satisfy debt

obligations of the dissolved district under section 12 of the revised school code, MCL

380.12, the taxable value per membership pupil of property in the receiving district

used for the purposes of this subsection does not include the taxable value of

property within the geographic area of the dissolved district.

(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. THE CALCULATION UNDER THIS SUBSECTION SHALL TAKE INTO ACCOUNT A

DISTRICT’S PER PUPIL ALLOCATION UNDER SECTION 20J(2).

(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. For pupils in membership, other than

special education pupils, in a public school academy that is a cyber school and is

authorized by a school district, 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 that authorized the public

school academy 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. This subsection does not apply to

a receiving district unless there is a subsequent consolidation or annexation that

affects the district. THE CALCULATION UNDER THIS SUBSECTION SHALL TAKE INTO ACCOUNT A

DISTRICT’S PER PUPIL ALLOCATION UNDER SECTION 20J(2).

(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.

the revenue adjustment factor. 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) 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.

(13) 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.

(14) 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.

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) "Dissolved district" means a district that loses its organization, has its

territory attached to 1 or more other districts, and is dissolved as provided under

section 12 of the revised school code, MCL 380.12.

(f) "Immediately preceding state fiscal year" means the state fiscal year

immediately preceding the current state fiscal year.

(g) "Local portion of the district's foundation allowance" means an amount that

is 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 product of the captured assessed valuation under tax increment

financing acts times the district's certified mills divided by the district's

membership excluding special education pupils).

(h) "Local school operating revenue" means school operating taxes levied under

section 1211 of the revised school code, MCL 380.1211. For a receiving district, if

school operating taxes are to be levied on behalf of a dissolved district that has

been attached in whole or in part to the receiving district to satisfy debt

obligations of the dissolved district under section 12 of the revised school code, MCL

380.12, local school operating revenue does not include school operating taxes levied

within the geographic area of the dissolved district.

(i) "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.

(j) "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 amount of the

difference between the basic foundation allowance for the current state fiscal year

and the basic foundation allowance for the immediately preceding state fiscal year and

[(the amount of the difference between the basic foundation allowance for the current

state fiscal year and the basic foundation allowance for the immediately preceding

state fiscal year minus ~~$23.00~~ $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 minimum foundation allowance for the immediately preceding state

fiscal year) divided by the difference between the basic foundation allowance for the

current state fiscal year and the minimum foundation allowance for the immediately

preceding state fiscal year]. For the purposes of this subdivision, for ~~2015-2016~~

2016-2017, the maximum public school academy allocation is ~~$7,391.00~~ $7,511.00.

(k) "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.

(l) "Nonexempt property" means property that is not a principal residence,

qualified agricultural property, qualified forest property, supportive housing

property, industrial personal property, commercial personal property, or property

occupied by a public school academy.

(m) "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.

(n) "Receiving district" means a district to which all or part of the territory

of a dissolved district is attached under section 12 of the revised school code, MCL

380.12.

(o) "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 of the revised school code, MCL 380.1211.

(p) "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.

(q) "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.

(r) "Taxable value per membership pupil" means taxable value, as certified by the

county treasurer and reported to the department, 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 ~~2015-2016~~ 2016-2017, 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. 20f. (1) From the funds appropriated in section 11, there is allocated an

amount not to exceed $18,000,000.00 for ~~2015-2016~~ 2016-2017 for payments to eligible

districts under this section.

(2) The funding under this subsection is from the allocation under subsection

(1). A district is eligible for funding under this subsection if the district received

a payment under this section as it was in effect for 2013-2014. A district was

eligible for funding in 2013-2014 if the sum of the following was less than $5.00:

(a) The increase in the district's foundation allowance or per-pupil payment as

calculated under section 20 from 2012-2013 to 2013-2014.

(b) The district's equity payment per membership pupil under section 22c for

2013-2014.

divided by the district's membership pupils for 2012-2013 minus the quotient of the

district's allocation under section 147a for 2013-2014 divided by the district's

membership pupils for 2013-2014.

(3) The amount allocated to each eligible district under subsection (2) is an

amount per membership pupil equal to the amount per membership pupil the district

received under this section in 2013-2014.

(4) The funding under this subsection is from the allocation under subsection

(1). A district is eligible for funding under this subsection for ~~2015-2016~~ 2016-2017

if the sum of the following is less than $25.00:

(a) The increase in the district's foundation allowance or per-pupil payment as

calculated under section 20 from 2014-2015 to 2015-2016.

(b) The decrease in the district's best practices per-pupil funding under section

22f from 2014-2015 to 2015-2016.

section 22j from 2014-2015 to 2015-2016.

(d) The quotient of the district's allocation under section 31a for 2015-2016

divided by the district's membership pupils for 2015-2016 minus the quotient of the

district's allocation under section 31a for 2014-2015 divided by the district's

membership pupils for 2014-2015.

(5) The amount allocated to each eligible district under subsection (4) is an

amount per membership pupil equal to $25.00 minus the sum of the following:

(a) The increase in the district's foundation allowance or per-pupil payment as

calculated under section 20 from 2014-2015 to 2015-2016.

(b) The decrease in the district's best practices per-pupil funding under section

22f from 2014-2015 to 2015-2016.

section 22j from 2014-2015 to 2015-2016.

(d) The quotient of the district's allocation under section 31a for 2015-2016

divided by the district's membership pupils for 2015-2016 minus the quotient of the

district's allocation under section 31a for 2014-2015 divided by the district's

membership pupils for 2014-2015.

(6) If the allocation under subsection (1) is insufficient to fully fund payments

under subsections (3) and (5) as otherwise calculated under this section, the

department shall prorate payments under this section on an equal per-pupil basis.

Sec. 20g. (1) From the money appropriated under section 11, there is allocated an

amount not to exceed $2,200,000.00 for ~~2015-2016~~ 2016-2017 for grants to eligible

districts that first received payments under this section in 2013-2014 for transition

costs related to the enrollment of pupils who were previously enrolled in a district

that was dissolved under section 12 of the revised school code, MCL 380.12, allocated

as provided under subsection (3). Payments under this section shall continue for a

total of 4 fiscal years following the dissolution of a district, after which the

payments shall cease.

(2) A receiving school district, as that term is defined in section 12 of the

revised school code, MCL 380.12, is an eligible district under this section.

(3) The amount allocated to each eligible district under this section is an

amount equal to the product of the number of membership pupils enrolled in the

eligible district who were previously enrolled in the dissolved school district in the

school year immediately preceding the dissolution, or who reside in the geographic

area of the dissolved school district and are entering kindergarten, times 10.0% of

the lesser of the foundation allowance of the eligible district as calculated under

section 20 or the basic foundation allowance under section 20(1).

(4) As used in this section, "dissolved school district" means a school district

that has been declared dissolved under section 12 of the revised school code, 1976 PA

451, MCL 380.12.

Sec. 20j. (1) Foundation allowance supplemental payments for 2016-2017 to

districts that in the 2015-2016 fiscal year had a foundation allowance greater than

$8,169.00 shall be calculated under this section.

(2) The per pupil allocation to each district under this section shall be the

difference between the DOLLAR AMOUNT OF THE ADJUSTMENT FROM THE IMMEDIATELY PRECEDING

STATE FISCAL YEAR TO THE CURRENT STATE FISCAL YEAR IN THE BASIC FOUNDATION ALLOWANCE

minus the dollar amount of the adjustment from the immediately preceding fiscal year

to the current state fiscal year in a qualifying district’s foundation allowance.

(3) If a district's local revenue per pupil does not exceed the sum of its

foundation allowance under section 20 plus the per pupil allocation under subsection

(2), the total payment to the district calculated under this section shall be the

product of the per pupil allocation under subsection (2) multiplied by the district's

membership excluding special education pupils. If a district's local revenue per pupil

exceeds the foundation allowance under section 20 but does not exceed the sum of the

foundation allowance under section 20 plus the per pupil allocation under subsection

(2), the total payment to the district calculated under this section shall be the

product of the difference between the sum of the foundation allowance under section 20

plus the per pupil allocation under subsection (2) minus the local revenue per pupil

multiplied by the district's membership excluding special education pupils. If a

district's local revenue per pupil exceeds the sum of the foundation allowance under

section 20 plus the per pupil allocation under subsection (2), there is no payment

calculated under this section for the district.

(4) Payments to districts shall not be made under this section. Rather, the

calculations under this section shall be made and used to determine the amount of

state payments under section 22b.

SEC. 21. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT

NOT TO EXCEED $5,000,000.00 FOR 2016-2017 TO MAKE SUPPLEMENTAL PAYMENTS TO ELIGIBLE

DISTRICTS THAT ARE IDENTIFIED AS BEING AMONG THE LOWEST ACHIEVING 5 PERCENT OF ALL

PUBLIC SCHOOLS IN THIS STATE.

(2) DISTRICTS ARE ELIGIBLE TO RECEIVE THE SUPPLEMENTAL PAYMENTS CALCULATED UNDER

THIS SECTION FOR THREE CONSECUTIVE FISCAL YEARS IF THE FOLLOWING CONDITIONS ARE MET:

(A) THE STATE SCHOOL REFORM/REDESIGN OFFICER HAS APPOINTED A CHIEF EXECUTIVE

OFFICER TO TAKE CONTROL OF ONE OR MORE PUBLIC SCHOOLS IN THE DISTRICT, AS PROVIDED FOR

IN SECTION 1280C(7) OF THE REVISED SCHOOL CODE, MCL 380.1280C, AND THERE IS A HIGH

SCHOOL LOCATED WITHIN THE DISTRICT.

(B) AS DETERMINED BY THE SCHOOL REFORM OFFICE, AN INTERVENTION AGREEMENT MEETING

MINIMALLY THE FOLLOWING CRITERIA HAS BEEN EXECUTED BY THE STATE SCHOOL REFORM/REDESIGN

OFFICER AND THE DISTRICT. THE INTERVENTION AGREEMENT SHALL INCLUDE, BUT IS NOT LIMITED

TO:

(I) THE RIGHTS AND RESPONSIBILITIES OF THE CHIEF EXECUTIVE OFFICER AS LONG AS THE

AGREEMENT IN NO WAY MITIGATES THE AUTHORITY OUTLINED IN APPLICABLE STATUTE INCLUDING

FINANCIAL AND EMPLOYMENT AUTHORITY.

(II) THE ALLOCATION OF SUPPLEMENTAL PAYMENTS DEFINED IN THIS SECTION.

(III) CHIEF EXECUTIVE OFFICER COMPENSATION.

(IV) ROLE OF THE DISTRICT’S BOARD AND OFFICERS DURING THE INTERVENTION TERM.

(V) TERMINATION AND RENEWAL RIGHTS OF THE SCHOOL REFORM OFFICE.

(VI) LIABILITY PROVISIONS FOR THE CHIEF EXECUTIVE OFFICER.

(VII) DISPUTE RESOLUTION PROCESS.

(VIII) LENGTH OF TERM OF AGREEMENT.

(IX) OTHER PROVISIONS AS DETERMINED BY THE SCHOOL REFORM OFFICE FOR SUCCESSFUL

IMPLEMENTATION OF THE CHIEF EXECUTIVE OFFICER INTERVENTION.

(3) THE SUPPLEMENTAL PAYMENT PROVIDED TO A DISTRICT UNDER THIS SECTION SHALL BE

CALCULATED BY MULTIPLYING THE DISTRICT’S FOUNDATION ALLOWANCE BY 20 PERCENT OF THE

HIGH SCHOOL’S PUPIL MEMBERSHIP FOR THE PRIOR FISCAL YEAR. THE SAME DOLLAR AMOUNT SHALL

CONTINUE TO BE AVAILABLE TO THE DISTRICT FOR A MAXIMUM OF THREE YEARS, SUBJECT TO THE

CONDITIONS SPECIFIED IN SUBSECTION (2).

(4) FROM THE ALLOCATION IN SUBSECTION (1), IN ADDITION TO THE SUPPLEMENTAL

PAYMENTS CALCULATED UNDER SUBSECTION (3), THERE IS ALLOCATED AN AMOUNT SUFFICIENT TO

PAY FOR THE APPOINTMENT OF CHIEF EXECUTIVE OFFICERS BY THE STATE SCHOOL

REFORM/REDESIGN OFFICER, AS PROVIDED FOR IN SECTION 1280C(7) OF THE REVISED SCHOOL

CODE, MCL 380,1280C.

(5) FOR THE PURPOSES OF THIS SECTION, A HIGH SCHOOL IS GRADES 9 TO 12.

Sec. 21f. (1) ~~A pupil enrolled in a district in any of grades 6 to 12 is eligible~~

~~to enroll in an online course as provided for in this section.~~ A PRIMARY DISTRICT

SHALL ENROLL AN ELIGIBLE PUPIL IN VIRTUAL COURSES IN ACCORDANCE WITH THE PROVISIONS OF

THIS SECTION. ALL VIRTUAL COURSES OFFERED TO ELIGIBLE PUPILS MUST BE PUBLISHED IN THE

PRIMARY DISTRICT’S CATALOG OF BOARD-APPROVED COURSES OR IN THE STATEWIDE CATALOG OF

VIRTUAL COURSES MAINTAINED BY THE MICHIGAN VIRTUAL UNIVERSITY PURSUANT TO SECTION 98.

THE PRIMARY DISTRICT SHALL ALSO PROVIDE ON ITS PUBLICLY ACCESSIBLE WEBSITE A LINK TO

THE STATEWIDE CATALOG OF VIRTUAL COURSES MAINTAINED BY THE MICHIGAN VIRTUAL

UNIVERSITY.

(2) ~~With the consent of the pupil's parent or legal guardian, a district~~ A

PRIMARY DISTRICT shall enroll an eligible pupil in up to 2 ~~online~~ VIRTUAL courses as

requested by the pupil during an academic term, semester, or trimester. ~~Unless the~~

~~pupil is newly enrolled in the pupil's primary district, the request for online course~~

~~enrollment must be made in the academic term, semester, trimester, or summer preceding~~

~~the enrollment. A district may not establish additional requirements that would~~

~~prohibit a pupil from taking an online course. If a pupil has demonstrated previous~~

~~success with online courses and the school leadership and the pupil's parent or legal~~

~~guardian determine that it is in the best interest of the pupil, a pupil may be~~

~~enrolled in more than 2 online courses in a specific academic term, semester, or~~

~~trimester. Consent of the pupil's parent or legal guardian is not required if the~~

~~pupil is at least age 18 or is an emancipated minor.~~

~~(3) An eligible pupil may enroll in an online course published in the pupil's~~

~~primary district's catalog of online courses described in subsection (7)(a) or the~~

~~statewide catalog of online courses maintained by the Michigan Virtual University~~

~~pursuant to section 98.~~

(3) A PUPIL MAY BE ENROLLED IN MORE THAN 2 VIRTUAL COURSES IN A SPECIFIC ACADEMIC

TERM, SEMESTER, OR TRIMESTER IF ALL OF THE FOLLOWING CONDITIONS ARE MET:

(A) THE PRIMARY DISTRICT HAS DETERMINED THAT IT IS IN THE BEST INTEREST OF THE

PUPIL.

(B) THE PUPIL AGREES WITH THE RECOMMENDATION OF THE PRIMARY DISTRICT.

EDUCATION DEVELOPMENT PLAN, IN A FORM AND MANNER SPECIFIED BY THE DEPARTMENT, THAT IS

KEPT ON FILE BY THE DISTRICT.

(4) ~~A providing district or community college shall determine whether or not it~~

~~has capacity to accept applications for enrollment from nonresident applicants in~~

~~online courses and may use that limit as the reason for refusal to enroll an~~

~~applicant.~~ If the number of ~~nonresident~~ applicants eligible for acceptance in an

~~online~~ A VIRTUAL course does not exceed the capacity of the ~~providing district or~~

~~community college~~ PROVIDER to provide the ~~online~~ VIRTUAL course, the ~~providing~~

~~district or community college~~ PROVIDER shall accept for enrollment all of the

~~nonresident~~ applicants eligible for acceptance. If the number of ~~nonresident~~

applicants exceeds the ~~providing district's or community college's~~ PROVIDER’S capacity

to provide the ~~online~~ VIRTUAL course, the ~~providing district or community college~~

PROVIDER shall use a random draw system, subject to the need to abide by state and

federal antidiscrimination laws and court orders. A PRIMARY DISTRICT THAT IS ALSO A

PROVIDER SHALL DETERMINE WHETHER OR NOT IT HAS THE CAPACITY TO ACCEPT APPLICATIONS FOR

ENROLLMENT FROM NONRESIDENT APPLICANTS IN VIRTUAL COURSES AND MAY USE THAT LIMIT AS

THE REASON FOR REFUSAL TO ENROLL A NONRESIDENT APPLICANT.

(5) A PRIMARY DISTRICT MAY NOT ESTABLISH ADDITIONAL REQUIREMENTS BEYOND THOSE

SPECIFIED IN THIS SUBSECTION THAT WOULD PROHIBIT A PUPIL FROM TAKING A VIRTUAL COURSE.

A pupil's primary district may deny the pupil enrollment in ~~an online~~ A VIRTUAL course

if any of the following apply, as determined by the district:

(A) THE PUPIL IS IN ANY OF GRADES KINDERGARTEN THROUGH 5.

(B) ~~(a)~~ The pupil has previously gained the credits THAT WOULD BE provided from

the completion of the ~~online~~ VIRTUAL course.

(D) ~~(c)~~ The ~~online~~ VIRTUAL course is inconsistent with the remaining graduation

requirements or career interests of the pupil.

(E) ~~(d) The pupil does not possess the prerequisite knowledge and skills to be~~

~~successful in the online course or has demonstrated failure in previous online~~

~~coursework in the same subject.~~ THE PUPIL HAS NOT COMPLETED THE PREREQUISITE

COURSEWORK FOR THE REQUESTED VIRTUAL COURSE OR HAS NOT DEMONSTRATED PROFICIENCY IN THE

PREREQUISITE COURSE CONTENT.

(F) THE PUPIL HAS FAILED A PREVIOUS VIRTUAL COURSE IN THE SAME SUBJECT IN THE 2

MOST RECENT ACADEMIC YEARS.

(G) ~~(e)~~ The ~~online~~ VIRTUAL course is of insufficient quality or rigor. A PRIMARY

district that denies a pupil enrollment REQUEST for this reason shall ~~make a~~

~~reasonable effort to assist the pupil to find an alternative course~~ ENROLL THE PUPIL

IN A VIRTUAL COURSE in the same or a similar subject that THE PRIMARY DISTRICT

DETERMINES is of acceptable rigor and quality.

(H) ~~(f)~~ The cost of the ~~online~~ VIRTUAL course exceeds the amount identified in

subsection ~~(10)~~(9), unless the ~~pupil's parent or legal guardian agrees~~ PUPIL, PARENT,

OR LEGAL GUARDIAN AGREE to pay the cost that exceeds this amount.

(I) ~~(g)~~ ~~The online course enrollment request does not occur within the same~~

~~timelines established by the primary district for enrollment and schedule changes for~~

~~regular courses.~~ THE REQUEST FOR A VIRTUAL COURSE ENROLLMENT WAS NOT MADE IN THE

ACADEMIC TERM, SEMESTER, TRIMESTER, OR SUMMER PRECEDING THE ENROLLMENT. THIS

SUBDIVISION DOES NOT APPLY TO THE REQUEST OF A PUPIL WHO IS NEWLY ENROLLED IN THE

PRIMARY DISTRICT.

(6) If a pupil is denied enrollment in ~~an online~~ A VIRTUAL course by the pupil's

primary district, the PRIMARY DISTRICT SHALL PROVIDE WRITTEN NOTIFICATION TO THE PUPIL

OF THE DENIAL, THE REASON OR REASONS FOR THE DENIAL PURSUANT TO SUBSECTION (5), AND A

DESCRIPTION OF THE APPEAL PROCESS. THE pupil may appeal the denial by submitting a

letter to the superintendent of the intermediate district in which the pupil's primary

district is located. The letter of appeal shall include the reason provided by the

primary district for not enrolling the pupil and the reason why the pupil is claiming

that the enrollment should be approved. The intermediate district superintendent or

designee shall respond to the appeal within 5 days after it is received. If the

intermediate district superintendent or designee determines that the denial of

enrollment does not meet 1 or more of the reasons specified in subsection (5), the

primary district shall ~~allow~~ ENROLL the pupil ~~to enroll~~ in the ~~online~~ VIRTUAL course.

(7) To provide ~~an online~~ A VIRTUAL course TO AN ELIGIBLE PUPIL under this

section, ~~the providing district or intermediate district~~ A PROVIDER shall do all of

the following:

(a) ~~Provide the Michigan Virtual University with the course syllabus in a form~~

~~and method prescribed by the Michigan Virtual University for inclusion in a statewide~~

~~online course catalog. The district or intermediate district shall also provide on its~~

~~publicly accessible website a link to the course syllabi for all of the online courses~~

~~offered by the district or intermediate district and a link to the statewide catalog~~

~~of online courses maintained by the Michigan Virtual University~~. ENSURE THAT THE

VIRTUAL COURSE HAS BEEN PUBLISHED IN THE PUPIL’S PRIMARY DISTRICT’S CATALOG OF BOARD-

APPROVED COURSES OR PUBLISHED IN THE STATEWIDE CATALOG OF ONLINE COURSES MAINTAINED BY

THE MICHIGAN VIRTUAL UNIVERSITY.

(b) Assign to each pupil a teacher of record and provide the primary district

with the ~~personal~~ PERSONNEL identification code ASSIGNED BY THE CENTER for the teacher

of record. IF THE PROVIDER IS A COMMUNITY COLLEGE, THE VIRTUAL COURSE MUST BE TAUGHT

BY AN INSTRUCTOR EMPLOYED BY OR CONTRACTED THROUGH THE PROVIDING COMMUNITY COLLEGE.

to a semester, trimester, or accelerated academic term format.

(D) IF THE VIRTUAL COURSE IS OFFERED TO ELIGIBLE PUPILS IN MORE THAN ONE

DISTRICT, THE FOLLOWING ADDITIONAL REQUIREMENTS MUST ALSO BE MET:

(I) PROVIDE THE MICHIGAN VIRTUAL UNIVERSITY WITH A COURSE SYLLABUS THAT MEETS THE

REQUIREMENTS UNDER SUBSECTION (13)(F) IN A FORM AND MANNER PRESCRIBED BY THE MICHIGAN

VIRTUAL UNIVERSITY FOR INCLUSION IN A STATEWIDE CATALOG OF VIRTUAL COURSES.

(II) ~~(d)~~ Not later than October 1, ~~2015~~ 2016 AND BY OCTOBER 1 OF EACH YEAR

THEREAFTER, provide the Michigan Virtual University with the ~~number of enrollments~~

AGGREGATED COUNT OF ENROLLMENTS FOR in each ~~online~~ VIRTUAL course the ~~district or~~

~~intermediate district~~ ~~provided~~ PROVIDER DELIVERED to pupils pursuant to this section

in DURING the immediately preceding school year, and the number of enrollments in

which the pupil earned 60% or more of the total course points for each ~~online~~ VIRTUAL

course.

~~(8) To provide an online course under this section, a community college shall do~~

~~all of the following:~~

~~(a) Provide the Michigan Virtual University with the course syllabus in a form~~

~~and method prescribed by the Michigan Virtual University for inclusion in a statewide~~

~~online course catalog.~~

~~(b) Offer the online course on an open entry and exit method, or aligned to a~~

~~semester, trimester, or accelerated academic term format.~~

~~(c) Ensure that each online course it provides under this section generates~~

~~postsecondary credit.~~

~~(d) Beginning with October 1, 2016, and by October 1 of each year thereafter,~~

~~provide the Michigan Virtual University with the number of enrollments in each online~~

~~course the community college provided to pupils pursuant to this section in the~~

~~immediately preceding school year, and the number of enrollments in which the pupil~~

~~earned 60% or more of the total course points for each online course.~~

~~(e) Be taught by an instructor employed by or contracted through the community~~

~~college.~~

(8) ~~(9)~~ For any ~~online~~ VIRTUAL course a pupil enrolls in under this section, the

pupil's primary district must assign to the pupil a mentor ~~to monitor the pupil's~~

~~progress during the online course~~ and shall supply the ~~providing district~~ PROVIDER

with the mentor's contact information.

(9) ~~(10)~~ For a pupil enrolled in 1 or more ~~online~~ VIRTUAL courses ~~published in~~

~~the pupil's primary district's catalog of online courses under subsection (7) or in~~

~~the statewide catalog of online courses maintained by the Michigan Virtual University~~,

the primary district shall use foundation allowance or per-pupil funds calculated

under section 20 to pay for the expenses associated with the ~~online~~ VIRTUAL course or

courses. A PRIMARY district is not required to pay toward the cost of ~~an online~~ A

VIRTUAL course an amount that exceeds 6.67% of the minimum foundation allowance for

the current fiscal year as calculated under section 20.

(10) ~~(11) An online~~ A VIRTUAL learning pupil shall have the same rights and

access to technology in his or her primary district's school facilities as all other

pupils enrolled in the pupil's primary district. THE DEPARTMENT SHALL ESTABLISH

STANDARDS FOR HARDWARE, SOFTWARE AND INTERNET ACCESS FOR PUPILS ENROLLED IN MORE THAN

2 VIRTUAL COURSES IN AN ACADEMIC TERM, SEMESTER, OR TRIMESTER TAKEN AT A LOCATION

OTHER THAN A SCHOOL FACILITY. THE PRIMARY DISTRICT SHALL BE RESPONSIBLE FOR PROVIDING

THE PUPIL WITH THE APPROPRIATE HARDWARE, SOFTWARE AND INTERNET ACCESS WITHOUT CHARGE

TO THE PUPIL AND IN ADDITION TO ANY COSTS INCURRED UNDER SUBSECTION (9).

(11) ~~(12)~~ If a pupil successfully completes ~~an online~~ A VIRTUAL course, as

determined by the pupil's primary district, the pupil's primary district shall grant

appropriate academic credit for completion of the course and shall count that credit

toward completion of graduation and subject area requirements. A pupil's school record

and transcript shall identify the ~~online~~ VIRTUAL course title as it appears in the

~~online~~ VIRTUAL course syllabus.

(12) ~~(13)~~ The enrollment of a pupil in 1 or more ~~online~~ VIRTUAL courses shall not

result in a pupil being counted as more than 1.0 full-time equivalent ~~pupils~~ PUPIL

under this article. THE DEPARTMENT SHALL ESTABLISH THE MINIMUM REQUIREMENTS TO COUNT

THE PUPIL IN PUPIL MEMBERSHIP.

~~(14) The portion of the full-time equated pupil membership for which a pupil is~~

~~enrolled in 1 or more online courses under this section shall not be transferred under~~

~~the pupil transfer process under section 25e.~~

(13) ~~(15)~~ As used in this section:

(A) "INSTRUCTOR" AS USED IN THIS SECTION MEANS A PERSON WHO IS EMPLOYED BY OR

CONTRACTED THROUGH A COMMUNITY COLLEGE.

(B) ~~(a)~~ "Mentor" means a professional employee of the primary district who

monitors the pupil's progress, ensures the pupil has access to needed technology, is

available for assistance, and ensures access to the teacher of record. A mentor may

also serve as the teacher of record if THE PRIMARY DISTRICT IS THE PROVIDER FOR THE

VIRTUAL COURSE AND the mentor meets the requirements under subdivision ~~(g)~~(D).

~~(b) "Online course" means a course of study that is capable of generating a~~

~~credit or a grade, that is provided in an interactive Internet-connected learning~~

~~environment, in which pupils are separated from their teachers by time or location, or~~

~~both, and, if the course is provided by a district or intermediate district, in which~~

~~a teacher who holds a valid Michigan teaching certificate that qualifies the teacher~~

~~to teach the course is responsible for providing instruction, determining appropriate~~

~~instructional methods for each pupil, diagnosing learning needs, assessing pupil~~

~~learning, prescribing intervention strategies, reporting outcomes, and evaluating the~~

~~effects of instruction and support strategies.~~

~~(c) "Online course syllabus" means a document that includes all of the following:~~

~~(i) The state academic standards addressed in an online course.~~

~~(ii) The online course content outline.~~

~~(iii) The online course required assessments.~~

~~(iv) The online course prerequisites.~~

~~(v) Expectations for actual instructor contact time with the online learning~~

~~pupil and other pupil-to-instructor communications.~~

~~(vi) Academic support available to the online learning pupil.~~

~~(vii) The online course learning outcomes and objectives.~~

~~(viii) The name of the institution or organization providing the online content.~~

~~(ix) The name of the institution or organization providing the online instructor.~~

~~(x) The course titles assigned by the district or intermediate district and the~~

~~course titles and course codes from the National Center for Education Statistics~~

~~(NCES) school codes for the exchange of data (SCED).~~

~~(xi) The number of eligible nonresident pupils that will be accepted by the~~

~~district or intermediate district in the online course.~~

~~(xii) The results of the online course quality review using the guidelines and~~

~~model review process published by the Michigan Virtual University.~~

~~(d) "Online learning pupil" means a pupil enrolled in 1 or more online courses.~~

the pupil ~~as a full-time equated pupil~~ for pupil membership purposes.

(D) ~~(f) "Providing district"~~ "PROVIDER" means the district, intermediate

district, MICHIGAN VIRTUAL UNIVERSITY, or community college that the primary district

pays to provide the ~~online~~ VIRTUAL course.

(E) ~~(g)~~ "Teacher of record" means a teacher who MEETS ALL OF THE FOLLOWING

REQUIREMENTS: ~~holds a valid Michigan teaching certificate; who, if applicable, is~~

~~endorsed in the subject area and grade of the online course; and is responsible for~~

~~providing instruction, determining instructional methods for each pupil, diagnosing~~

~~learning needs, assessing pupil learning, prescribing intervention strategies,~~

~~reporting outcomes, and evaluating the effects of instruction and support strategies.~~

(I) HOLDS A VALID MICHIGAN TEACHING CERTIFICATE OR A TEACHING PERMIT RECOGNIZED

BY THE DEPARTMENT.

(II) IF APPLICABLE, IS ENDORSED IN THE SUBJECT AREA AND GRADE OF THE VIRTUAL

COURSE.

(III) IS RESPONSIBLE FOR PROVIDING INSTRUCTION, DETERMINING INSTRUCTIONAL METHODS

FOR EACH PUPIL, DIAGNOSING LEARNING NEEDS, ASSESSING PUPIL LEARNING, PRESCRIBING

INTERVENTION STRATEGIES AND MODIFYING LESSONS, REPORTING OUTCOMES, AND EVALUATING THE

EFFECTS OF INSTRUCTION AND SUPPORT STRATEGIES.

(IV) HAS A PERSONNEL IDENTIFICATION CODE PROVIDED BY THE CENTER.

(V) IF THE PROVIDER IS A COMMUNITY COLLEGE, THE VIRTUAL COURSE MUST BE TAUGHT BY

AN INSTRUCTOR EMPLOYED BY OR CONTRACTED THROUGH THE PROVIDING COMMUNITY COLLEGE.

(F) "VIRTUAL COURSE" MEANS A COURSE OF STUDY THAT IS CAPABLE OF GENERATING A

CREDIT OR A GRADE, THAT IS PROVIDED IN AN INTERACTIVE LEARNING ENVIRONMENT WHERE THE

MAJORITY OF THE CURRICULUM IS DELIVERED USING THE INTERNET AND IN WHICH PUPILS MAY BE

SEPARATED FROM THEIR INSTRUCTOR OR TEACHER OF RECORD BY TIME OR LOCATION, OR BOTH.

(G) "VIRTUAL COURSE SYLLABUS" MEANS A DOCUMENT THAT INCLUDES ALL OF THE

FOLLOWING:

(I) AN ALIGNMENT DOCUMENT DETAILING HOW THE COURSE MEETS APPLICABLE STATE

STANDARDS OR, IF THE STATE DOES NOT HAVE STANDARDS, NATIONALLY RECOGNIZED STANDARDS.

(II) THE VIRTUAL COURSE CONTENT OUTLINE.

(III) THE VIRTUAL COURSE REQUIRED ASSESSMENTS.

(IV) THE VIRTUAL COURSE PREREQUISITES.

(V) EXPECTATIONS FOR ACTUAL INSTRUCTOR OR TEACHER OF RECORD CONTACT TIME WITH THE

VIRTUAL LEARNING PUPIL AND OTHER PUPIL-TO-INSTRUCTOR OR TEACHER OF RECORD

COMMUNICATIONS.

(VI) ACADEMIC SUPPORT AVAILABLE TO THE VIRTUAL LEARNING PUPIL.

(VII) THE VIRTUAL COURSE LEARNING OUTCOMES AND OBJECTIVES.

(VIII) THE NAME OF THE INSTITUTION OR ORGANIZATION PROVIDING THE VIRTUAL CONTENT.

(IX) THE NAME OF THE INSTITUTION OR ORGANIZATION PROVIDING THE VIRTUAL INSTRUCTOR

OR TEACHER OF RECORD.

(X) THE COURSE TITLES ASSIGNED BY THE PROVIDER AND THE COURSE TITLES AND COURSE

CODES FROM THE NATIONAL CENTER FOR EDUCATION STATISTICS (NCES) SCHOOL CODES FOR THE

EXCHANGE OF DATA (SCED).

(XI) THE NUMBER OF ELIGIBLE PUPILS THAT WILL BE ACCEPTED BY THE PROVIDER IN THE

VIRTUAL COURSE. PRIMARY DISTRICTS THAT ARE ALSO THE PROVIDER MAY LIMIT THE NUMBER OF

ELIGIBLE PUPILS TO THOSE PUPILS ENROLLED IN THE PRIMARY DISTRICT.

(XII) THE RESULTS OF THE VIRTUAL COURSE QUALITY REVIEW USING THE GUIDELINES AND

MODEL REVIEW PROCESS PUBLISHED BY THE MICHIGAN VIRTUAL UNIVERSITY.

(H) "VIRTUAL LEARNING PUPIL" MEANS A PUPIL ENROLLED IN 1 OR MORE VIRTUAL COURSES.

THE CONSENT OF THE PUPIL’S PARENT OR LEGAL GUARDIAN TO ENROLL IN A VIRTUAL COURSE IS

REQUIRED IF THE PUPIL IS LESS THAN AGE 18, BUT IS NOT REQUIRED IF THE PUPIL IS AT

LEAST AGE 18 OR IS AN EMANCIPATED MINOR.

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

not to exceed ~~$5,377,000,000.00 for 2014-2015 and an amount not to exceed~~

~~$5,281,700,000.00~~ $5,206,000,000.00 for ~~2015-2016~~ 2016-2017 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 receiving district, if school operating taxes are to be levied on behalf

of a dissolved district that has been attached in whole or in part to the receiving

district to satisfy debt obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, taxable value per membership pupil of all property in

the receiving district that is nonexempt property and taxable value per membership

pupil of property in the receiving district that is commercial personal property do

not include property within the geographic area of the dissolved district; ad valorem

property tax revenue of the receiving district captured under tax increment financing

acts does not include ad valorem property tax revenue captured within the geographic

boundaries of the dissolved district under tax increment financing acts; and certified

mills do not include the certified mills of the dissolved district.

(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 receiving

district, if school operating taxes are to be levied on behalf of a dissolved district

that has been attached in whole or in part to the receiving district to satisfy debt

obligations of the dissolved district under section 12 of the revised school code, MCL

380.12, ad valorem property tax revenue captured under tax increment financing acts do

not include ad valorem property tax revenue captured within the geographic boundaries

of the dissolved district under tax increment financing acts.

(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) Except as otherwise provided in this subsection, 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. This

subsection does not apply to a receiving district unless there is a subsequent

consolidation or annexation that affects the district.

(6) Payments under this section are subject to section 25f.

(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.

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 receiving

district, if school operating taxes are to be levied on behalf of a dissolved district

that has been attached in whole or in part to the receiving district to satisfy debt

obligations of the dissolved district under section 12 of the revised school code, MCL

380.12, taxable value per membership pupil does not include the taxable value of

property within the geographic area of the dissolved district.

(e) "Dissolved district" means a district that loses its organization, has its

territory attached to 1 or more other districts, and is dissolved as provided under

section 12 of the revised school code, MCL 380.12.

(f) "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,

commercial personal property, and property occupied by a public school academy 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 receiving district, if school

operating taxes are to be levied on behalf of a dissolved district that has been

attached in whole or in part to the receiving district to satisfy debt obligations of

the dissolved district under section 12 of the revised school code, MCL 380.12, school

operating taxes do not include school operating taxes levied within the geographic

area of the dissolved district.

(g) "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.

(h) "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.

(i) "Nonexempt property" means property that is not a principal residence,

qualified agricultural property, qualified forest property, supportive housing

property, industrial personal property, commercial personal property, or property

occupied by a public school academy.

(j) "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.

(k) "Receiving district" means a district to which all or part of the territory

of a dissolved district is attached under section 12 of the revised school code, MCL

380.12.

(l) "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.

(m) "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.

(n) "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, commercial

personal property, and property occupied by a public school academy 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, commercial personal property, and

property occupied by a public school academy for the calendar year ending in the

current state fiscal year. For a receiving district, if school operating taxes are to

be levied on behalf of a dissolved district that has been attached in whole or in part

to the receiving district to satisfy debt obligations of the dissolved district under

section 12 of the revised school code, MCL 380.12, mills do not include mills within

the geographic area of the dissolved district.

(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 receiving district, if school operating taxes are to be levied on behalf

of a dissolved district that has been attached in whole or in part to the receiving

district to satisfy debt obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, school operating taxes do not include school

operating taxes levied within the geographic area of the dissolved district.

Sec. 22b. (1) From the SCHOOL AID FUND appropriation in section 11, there is

allocated an amount not to exceed ~~$3,440,000,000.00 for 2014-2015 and an amount not to~~

~~exceed $3,728,000,000.00~~ $3,828,000,000.00 for ~~2015-2016~~ 2016-2017, AND FROM THE

DETROIT PUBLIC SCHOOLS TRUST FUND APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN

AMOUNT NOT TO EXCEED $72,000,000.00 FOR 2016-2017 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, 20J, 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) Comply with section 1280b of the revised school code, MCL 380.1280b.

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

380.1278a and 380.1278b.

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 section 21f.

(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.

~~(12) Payments under this section are subject to section 25g.~~

Sec. 22d. (1) From the appropriation in section 11, an amount not to exceed

$5,000,000.00 is allocated for ~~2015-2016~~ 2016-2017 for supplemental payments to rural

districts under this section.

(2) From the allocation under subsection (1), there is allocated for ~~2015-2016~~

2016-2017 an amount not to exceed $957,300.00 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.

following:

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

school building.

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

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

subsection (2) shall be determined under a spending plan developed as provided in this

subsection and approved by the superintendent of public instruction. The spending plan

shall be developed cooperatively by the intermediate superintendents of each

intermediate district in which an eligible district is located. The intermediate

superintendents shall review the financial situation of each eligible district,

determine the minimum essential financial needs of each eligible district, and develop

and agree on a spending plan that distributes the available funding under subsection

(2) to the eligible districts based on those financial needs. The intermediate

superintendents shall submit the spending plan to the superintendent of public

instruction for approval. Upon approval by the superintendent of public instruction,

the amounts specified for each eligible district under the spending plan are allocated

under subsection (2) and shall be paid to the eligible districts in the same manner as

payments under section 22b.

(4) Subject to subsection (6), from the allocation in subsection (1), there is

allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed $4,042,700.00 for payments

under this subsection to districts that have 7.3 or fewer pupils per square mile as

determined by the department.

(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

~~2015-2016~~ 2016-2017 only an amount not to exceed $5,000,000.00 for competitive

assistance grants to districts and intermediate districts.

(2) Funds received under this section may be used for reimbursement of transition

costs associated with the DISSOLUTION, consolidation or annexation of districts or

intermediate districts. Grant funding shall be available for DISSOLUTIONS,

consolidations or annexations that occur on or after June 1, ~~2015~~ 2016. Districts may

spend funds allocated under this section over 3 fiscal years.

Sec. 23a. (1) A dropout recovery program operated by a district qualifies for the

special membership counting provisions of section 6(4)(dd) and the hours and day of

pupil instruction exemption under section 101(12) if the dropout recovery program

meets all of the following:

(a) Enrolls only eligible pupils.

(b) Provides an advocate. An advocate may serve in that role for more than 1

pupil but no more than 50 pupils. An advocate may be employed by the district or may

be provided by an education management organization that is partnering with the

district. Before an individual is assigned to be an advocate for a pupil in the

dropout recovery program, the district shall comply with sections 1230 and 1230a of

the revised school code, MCL 380.1230 and 380.1230a, with respect to that individual.

(d) Monitors the pupil's progress against the written learning plan.

(e) Requires each pupil to make satisfactory monthly progress, as defined by the

district under subsection (2).

(f) Reports the pupil's progress results to the partner district at least

monthly.

(g) The program may be operated on or off a district school campus, but may be

operated using distance learning online only if the program provides a computer and

Internet access for each eligible pupil participating in the program.

(h) Is operated throughout the entire calendar year.

(i) If the district partners with an education management organization for the

program, the education management organization has a dropout recovery program

partnership relationship with at least 1 other district.

(2) A district operating a dropout recovery program under this section shall

adopt a definition of satisfactory monthly progress that is consistent with the

definition of that term under subsection (3).

(3) As used in this section:

(a) "Advocate" means an adult available to meet in person with assigned pupils,

as needed, to conduct social interventions, to proctor final examinations, and to

provide academic and social support to pupils enrolled in the district's dropout

recovery program.

(b) "Education management organization" means a private provider that operates 1

or more other dropout recovery programs that meet the requirements of this section in

partnership with 1 or more districts.

mandatory expulsion provisions in section 1311 or 1311a of the revised school code,

MCL 380.1311 and 380.1311a, a pupil who has been suspended or expelled from school

under a local policy, a pupil who is referred by a court, a pupil who is pregnant or

is a parent, a pupil who was previously a dropout, or a pupil who is determined by the

district to be at risk of dropping out.

(d) "Satisfactory monthly progress" means an amount of progress that is

measurable on a monthly basis and that, if continued for a full 12 months, would

result in the same amount of academic credit being awarded to the pupil as would be

awarded to a general education pupil completing a full school year. Satisfactory

monthly progress may include a lesser required amount of progress for the first 2

months a pupil participates in the program.

(E) FOR PURPOSES OF THIS SECTION, "TEACHER OF RECORD" MEANS A TEACHER WHO HOLDS A

VALID MICHIGAN TEACHING CERTIFICATE; WHO, IF APPLICABLE, IS ENDORSED IN THE SUBJECT

AREA AND GRADE OF THE COURSE; AND IS RESPONSIBLE FOR PROVIDING INSTRUCTION,

DETERMINING INSTRUCTIONAL METHODS FOR EACH PUPIL, DIAGNOSING LEARNING NEEDS, ASSESSING

PUPIL LEARNING, PRESCRIBING INTERVENTION STRATEGIES, REPORTING OUTCOMES, AND

EVALUATING THE EFFECTS OF INSTRUCTION AND SUPPORT STRATEGIES.

(F) ~~(e)~~ "Written learning plan" means a written plan developed in conjunction

with the advocate that includes the plan start and end dates, courses to be taken,

credit to be earned for each course, teacher of record for each course, and advocate

name and contact information.

Sec. 24. (1) From the appropriation in section 11, there is allocated for ~~2015-~~

~~2016~~ 2016-2017 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 health and human services to reside in or to attend a juvenile detention

facility or child caring institution licensed by the department of health and 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 health and human services to reside in

or to attend a juvenile detention facility or child caring institution licensed by the

department of health and 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

article 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 ~~$2,189,800.00~~ $1,328,100.00 for ~~2015-2016~~ 2016-2017 for payments to

intermediate districts for pupils who are placed in juvenile justice service

facilities operated by the department of health and 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 health and human services to ensure

that all funding allocated under this section is utilized by the intermediate district

and department of health and 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 health and 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 ~~$1,497,400.00~~ $1,522,400.00 for ~~2015-2016~~ 2016-2017 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

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. 25f. (1) From the state school aid fund money appropriated in section 11,

there is allocated an amount not to exceed ~~$1,000,000.00~~ $250,000.00 for ~~2015-2016~~

2016-2017 for payments to strict discipline academies established under sections 1311b

to 1311m of the revised school code, MCL 380.1311b to 380.1311m, as provided under

this section.

~~(2) In order to receive funding under this section, a strict discipline academy~~

~~shall first comply with section 25e and use the pupil transfer process under that~~

~~section for changes in enrollment as prescribed under that section.~~

(2)~~(3)~~ The total amount allocated to a strict discipline academy under this

section is an amount equal to the lesser of the strict discipline academy's added cost

or the department's approved per-pupil allocation for the strict discipline academy.

However, the sum of the amounts received by a strict discipline academy under this

section and under section 24 shall not exceed the product of the strict discipline

academy's per-pupil allocation calculated under section 20 multiplied by the strict

discipline academy's full-time equated membership. The department shall allocate funds

to strict discipline academies under this section on a monthly basis. For the purposes

of this subsection:

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

pupils enrolled and in regular daily attendance at a strict discipline academy. Added

cost shall be computed by deducting all other revenue received under this article for

pupils described in this subsection from total costs, as approved by the department,

in whole or in part, for educating those pupils in a strict discipline academy. The

department shall include all costs including, but not limited to, educational costs,

insurance, management fees, technology costs, legal fees, auditing fees, interest,

pupil accounting costs, and any other administrative costs necessary to operate the

program or to comply with statutory requirements. Costs reimbursed by federal funds

are not included.

(b) "Department's approved per-pupil allocation" for a strict discipline academy

shall be determined by dividing the total amount allocated under this subsection for a

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

department to be funded under this subsection for that fiscal year for the strict

discipline academy.

(3)~~(4)~~ Special education pupils funded under section 53a shall not be funded

under this section.

(4)~~(5)~~ If the funds allocated under this section are insufficient to fully fund

the adjustments under subsection (3), payments under this section shall be prorated on

an equal per-pupil basis.

(5)~~(6)~~ Payments to districts under this section shall be made according to the

payment schedule under section 17b.

Sec. 25g. (1) From the state school aid fund money appropriated in section 11,

there is allocated an amount not to exceed ~~$1,000,000.00~~ $250,000.00 for ~~2015-2016~~

2016-2017 for the purposes of this section. If the operation of the special membership

counting provisions under section 6(4)(dd) and the other membership counting

provisions under section 6(4) result in a pupil being counted as more than 1.0 FTE in

a fiscal year, then the payment made for the pupil under sections 22a and 22b shall

not be based on more than 1.0 FTE for that pupil, and that portion of the FTE that

exceeds 1.0 shall be paid under this section in an amount equal to that portion

multiplied by the educating district's foundation allowance or per-pupil payment

calculated under section 20.

(2) Special education pupils funded under section 53a shall not be funded under

this section.

(3) If the funds allocated under this section are insufficient to fully fund the

adjustments under subsection (1), payments under this section shall be prorated on an

equal per-pupil basis.

(4) Payments to districts under this section shall be made according to the

payment schedule under section 17b.

Sec. 26a. From the funds appropriated in section 11, there is allocated an amount

not to exceed ~~$26,300,000.00~~ $20,000,000.00 for ~~2015-2016~~ 2016-2017 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 ~~2015~~ 2016. 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 for ~~2015-~~

~~2016~~ 2016-2017 an amount not to exceed ~~$4,276,800.00~~ $4,405,100.00 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. 26c. (1) From the appropriation in section 11, there is allocated an amount

not to exceed ~~$610,000.00~~ $1,000,000.00 for ~~2015-2016~~ 2016-2017 to the promise zone

fund created in subsection (3).

(2) Funds allocated to the promise zone fund under this section shall be used

solely for payments to eligible districts and intermediate districts that have a

promise zone development plan approved by the department of treasury under section 7

of the Michigan promise zone authority act, 2008 PA 549, MCL 390.1667.

(3) The promise zone fund is created as a separate account within the state

school aid fund to be used solely for the purposes of the Michigan promise zone

authority act, 2008 PA 549, MCL 390.1661 to 390.1679. All of the following apply to

the promise zone fund:

(a) The state treasurer shall direct the investment of the promise zone fund. The

state treasurer shall credit to the promise zone fund interest and earnings from fund

investments.

(b) Money in the promise zone fund at the close of a fiscal year shall remain in

the promise zone fund and shall not lapse to the general fund.

(4) Subject to subsection (2), the state treasurer may make payments from the

promise zone fund to eligible districts and intermediate districts pursuant to the

Michigan promise zone authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

for the purposes of a promise zone authority created under that act.

Sec. 31a. (1) From the state school aid fund money appropriated in section 11,

there is allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed $389,695,500.00 for

payments to eligible districts, eligible public school academies, and the education

achievement system for the purposes of ensuring that pupils are proficient in reading

by the end of grade 3 and that high school graduates are career and college ready and

for the purposes under subsections (7) and (8).

(2) For a district or public school academy, or the education achievement system,

to be eligible to receive funding under this section, other than funding under

subsection (7) or (8), 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, PLUS THE AMOUNT OF

THE DISTRICT’S PER PUPIL ALLOCATION UNDER SECTION 20J(2), must be less than or equal

to the basic foundation allowance under section 20 for the current state fiscal year.

(3) For a district or public school academy that operates grades K to 3, or the

education achievement system, to be eligible to receive funding under this section,

other than funding under subsection (7) or (8), the district or public school academy,

or the education achievement system, must implement, for at least grades K to 3, a

multi-tiered system of supports that is an evidence-based model that uses data-driven

problem solving to integrate academic and behavioral instruction and that uses

intervention delivered to all pupils in varying intensities based on pupil needs. This

multi-tiered system of supports must provide at least all of the following essential

elements:

(a) Implements effective instruction for all learners.

(b) Intervenes early.

the following:

(i) A core curriculum and classroom interventions available to all pupils that

meet the needs of most pupils.

(ii) Targeted group interventions.

(iii) Intense individual interventions.

(d) Monitors pupil progress to inform instruction.

(e) Uses data to make instructional decisions.

(f) Uses assessments including universal screening, diagnostics, and progress

monitoring.

(g) Engages families and the community.

(h) Implements evidence-based, scientifically validated, instruction and

intervention.

(i) Implements instruction and intervention practices with fidelity.

(j) Uses a collaborative problem-solving model.

(4) 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, 42 USC 1751 to 1769, and as reported to the department in the form and

manner prescribed by the department 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, PLUS THE AMOUNT OF THE DISTRICT’S PER PUPIL ALLOCATION UNDER SECTION

20J(2), not to exceed the basic foundation allowance under section 20 for the current

state fiscal year, or of the public school academy's or the education achievement

system's per membership pupil amount calculated under section 20 for the current state

fiscal year. However, 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 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.

(5) 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, mental health, or

counseling services, for at-risk pupils; for school health clinics; and for the

purposes of subsection (6), (7), (8), or (11). 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 (4), 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, the public school

academy, or the education achievement system shall not use any of that money for

administrative costs. 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.

(6) 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.

(7) From the funds allocated under subsection (1), there is allocated for ~~2015-~~

~~2016~~ 2016-2017 an amount not to exceed ~~$3,557,300.00~~ $5,557,300.00 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 health and human services. 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 (12) for that fiscal year. ~~In addition to the funds~~

~~otherwise allocated under this subsection, from the money allocated in subsection (1),~~

~~there is allocated an amount not to exceed $2,000,000.00 for 2015-2016 only for child~~

~~and adolescent health centers to increase access to nurses and behavioral health~~

~~services in schools, using 3 existing school clinics as hubs for services and using~~

~~mobile teams to serve satellite school sites.~~

(8) From the funds allocated under subsection (1), there is allocated for ~~2015-~~

~~2016~~ 2016-2017 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 health and human services. Notwithstanding

section 17b, payments to eligible entities under this subsection shall be paid on a

schedule determined by the department.

(9) 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 a brief description of each program conducted or services

performed 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 or services, the total number of at-risk pupils served by each

of those programs or services, and the data necessary for the department and the

department of health and human services to verify matching funds for the temporary

assistance for needy families program. 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.

(10) 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.

(11) Subject to subsections (6), (7), and (8), a district may use up to 100% of

the funds it receives under this section to implement schoolwide reform in schools

with 40% or more of their pupils identified as at-risk pupils by providing

~~supplemental~~ instructional or noninstructional services consistent with the school

improvement plan.

(12) If necessary, and before any proration required under section 296, 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 (4).

(13) If a district is formed by consolidation after June 1, 1995, and if 1 or

more of the original districts were 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. In addition, if a district is dissolved

pursuant to section 12 of the revised school code, MCL 380.12, the intermediate

district to which the dissolved school district was constituent shall determine the

estimated number of pupils that meet the income eligibility criteria for free

breakfast, lunch, or milk, as described under subsection (4), enrolled in each of the

other districts within the intermediate district and provide that estimate to the

department for the purposes of distributing funds under this section within 60 days

after the school district is declared dissolved.

(14) As used in this section, "at-risk pupil" means a pupil for whom the district

has documentation that the pupil meets any of the following criteria:

(a) Is a victim of child abuse or neglect.

(b) Is a pregnant teenager or teenage parent.

(d) For pupils for whom the results of the state summative assessment have been

received, is a pupil who did not achieve proficiency on the English language arts,

mathematics, science, or social studies content area assessment.

(e) Is a pupil who is at risk of not meeting the district's core academic

curricular objectives in English language arts or mathematics, as demonstrated on

local assessments.

(f) The pupil is enrolled in a priority or priority-successor school, as defined

in the elementary and secondary education act of 2001 flexibility waiver approved by

the United States Department of Education.

(g) In the absence of state or local assessment data, the pupil meets at least 2

of the following criteria, as documented in a form and manner approved by the

department:

(i) The pupil is eligible for free or reduced price breakfast, lunch, or milk.

(ii) The pupil is absent more than 10% of enrolled days or 10 school days during

the school year.

(iii) The pupil is homeless.

(iv) The pupil is a migrant.

(v) The pupil is an English language learner.

(vi) The pupil is an immigrant who has immigrated within the immediately

preceding 3 years.

(vii) The pupil did not complete high school in 4 years and is still continuing

in school as identified in the Michigan cohort graduation and dropout report.

(15) Beginning in 2018-2019, if a district, public school academy, or the

education achievement system does not demonstrate to the satisfaction of the

department that at least 50% of at-risk pupils are ~~reading at grade level~~ PROFICIENT

IN ENGLISH LANGUAGE ARTS by the end of grade 3 as measured by the state assessment for

the immediately preceding school year and demonstrate to the satisfaction of the

department improvement over each of the 3 immediately preceding school years in the

percentage of at-risk pupils that are career- and college-ready as determined by

proficiency on the English language arts, mathematics, and science content area

assessments on the grade 11 summative assessment under section 1279g(2)(a) of the

revised school code, MCL 380.1279g, the district, public school academy, or education

achievement system shall ensure all of the following:

(a) The district, public school academy, or the education achievement system

shall determine the proportion of total at-risk pupils that represents the number of

pupils in grade 3 that are not ~~reading at grade level~~ PROFICIENT IN ENGLISH LANGUAGE

ARTS by the end of grade 3, and the district, public school academy, or the education

achievement system shall expend that same proportion multiplied by 1/2 of its total

at-risk funds under this section on tutoring and other methods of improving grade 3

~~reading levels~~ ENGLISH LANGUAGE ARTS PROFICIENCY.

(b) The district, public school academy, or the education achievement system

shall determine the proportion of total at-risk pupils that represent the number of

pupils in grade 11 that are not career- and college-ready as measured by the student's

score on the English language arts, mathematics, and science content area assessments

on the grade 11 summative assessment under section 1279g(2)(a) of the revised school

code, MCL 380.1279g, and the district, public school academy, or the education

achievement system shall expend that same proportion multiplied by 1/2 of its total

at-risk funds under this section on tutoring and other activities to improve scores on

the college entrance examination portion of the Michigan merit examination.

(16) As used in subsection (15), "total at-risk pupils" means the sum of the

number of pupils in grade 3 that are not reading at grade level by the end of third

grade as measured on the state assessment and the number of pupils in grade 11 that

are not career- and college-ready as measured by the student's score on the English

language arts, mathematics, and science content area assessments on the grade 11

summative assessment under section 1279g(2)(a) of the revised school code, MCL

380.1279g.

(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.

(18) The department shall collaborate with the department of health and human

services to prioritize assigning Pathways to Potential Success coaches to elementary

schools that have a high percentage of pupils in grades K to 3 who are not reading at

grade level.

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

not to exceed $22,495,100.00 for ~~2015-2016~~ 2016-2017 for the purpose of making

payments to districts and other eligible entities under this section.

(2) The amounts allocated from state sources under this section shall be used to

pay the amount necessary to reimburse districts for 6.0127% of the necessary costs of

the state mandated portion of the school lunch programs provided by those districts.

The amount due to each district under this section shall be computed by the department

using the methods of calculation adopted by the Michigan supreme court in the

consolidated cases known as Durant v State of Michigan, Michigan supreme court docket

no. 104458-104492.

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

districts so that each district receives at least 6.0127% of the necessary costs of

operating the state mandated portion of the school lunch program in a fiscal year.

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

that are not required under section 1272a of the revised school code, MCL 380.1272a,

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

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

lunch provided, as determined by the department.

(5) From the federal funds appropriated in section 11, there is allocated for

~~2015-2016~~ 2016-2017 all available federal funding, estimated at $510,000,000.00 for

the national school lunch program and all available federal funding, estimated at

$3,200,000.00 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 ~~$5,625,000.00~~ $2,500,000.00 for ~~2015-2016~~ 2016-2017 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) 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 $243,600,000.00 for ~~2015-2016~~ 2016-

2017. Funds allocated under this section for great start readiness programs shall be

used to provide part-day, school-day, or GSRP/head start blended comprehensive free

compensatory classroom programs designed to improve the readiness and subsequent

achievement of educationally disadvantaged children who meet the participant

eligibility and prioritization guidelines as defined by the department. For a child to

be eligible to participate in a program under this section, the child shall be at

least 4, but less than 5, years of age as of ~~the date specified for determining a~~

~~child's eligibility to attend school under section 1147 of the revised school code,~~

~~MCL 380.1147~~ SEPTEMBER 1 OF THE SCHOOL YEAR IN WHICH PROGRAMS ARE OFFERED AND MEET

PROGRAM ELIGIBILITY.

(2) Funds allocated under subsection (1) shall be allocated to intermediate

districts or consortia of intermediate districts based on the formula in section 39.

An intermediate district or consortium of intermediate districts receiving funding

under this section shall act as the fiduciary for the great start readiness programs.

In order to be eligible to receive funds allocated under this subsection from an

intermediate district or consortium of intermediate districts, a district, a

consortium of districts, or a public or private for-profit or nonprofit legal entity

or agency shall comply with this section and section 39.

(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 ~~2015-2016~~ 2016-2017 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, 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 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.

state, and local resources as applicable.

(d) Physical and dental health and developmental screening services for all

program participants.

(e) Referral services for families of program participants to community social

service agencies, including mental health services, 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 school readiness advisory committee convened as a

workgroup of the great start collaborative 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 and make recommendations regarding the program

components listed in this subsection. The advisory committee also shall make

recommendations to the great start collaborative regarding other community services

designed to improve all children's school readiness.

(i) The ongoing articulation of the kindergarten and first grade programs offered

by the program provider.

(j) Participation in this state's great start to quality process with a rating of

at least 3 stars.

(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) Except as otherwise provided in this subdivision, ensure that at least 90% of

the children participating in an eligible great start readiness program for whom the

intermediate district is receiving funds under this section are children who live with

families with a household income that is equal to or less than 250% of the federal

poverty level. If the intermediate district determines that all eligible children are

being served and that there are no children on the waiting list under section 39(1)(d)

who live with families with a household income that is equal to or less than 250% of

the federal poverty level, the intermediate district may then enroll children who live

with families with a household income that is equal to or less than 300% of the

federal poverty level. The enrollment process shall consider income and risk factors,

such that children determined with higher need are enrolled before children with

lesser need. For purposes of this subdivision, all age-eligible children served in

foster care or who are experiencing homelessness or who have individualized education

plans recommending placement in an inclusive preschool setting shall be considered to

live with families with household income equal to or less than 250% of the federal

poverty level regardless of actual family income AND BE PRIORITIZED WITHIN THE LOWEST

QUINTILE FOR ENROLLMENT.

follows:

(i) Teachers possessing proper training. A lead teacher must have a valid

teaching certificate with an early childhood (ZA or ZS) endorsement or a bachelor's

degree OR HIGHER in child development or early ~~child development~~ CHILDHOOD EDUCATION

with specialization in preschool teaching. However, if an 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 used if the 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~~

EDUCATION, 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 applicant demonstrates to the department that it is unable to fully

comply with this subparagraph after making reasonable efforts to comply, the applicant

may use paraprofessionals who have completed at least 1 course that earns college

credit in early childhood education or child development if the 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. Eligible costs include transportation costs. 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 received by the applicant to serve children

eligible for a federally funded 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~~ DESCRIBED IN SECTION 39 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) For a grant recipient that enrolls pupils in a GSRP/head start blended

program, the grant recipient shall ensure that all head start and GSRP policies and

regulations are applied to the blended slots, with adherence to the highest standard

from either program, to the extent allowable under federal law.

(8) An intermediate district or consortium of intermediate districts receiving a

grant under this section shall designate an early childhood coordinator, and may

provide services directly or may contract with 1 or more districts or public or

private for-profit or nonprofit providers that meet all requirements of ~~subsection (4)~~

SUBSECTIONS (4) AND (5).

(9) Funds received under this section may be retained for administrative services

as follows:

(a) For the portion of the total grant amount for which services are provided

directly by an intermediate district or consortium of intermediate districts, the

intermediate district or consortium of intermediate districts may retain an amount

equal to not more than 7% of that portion of the grant amount.

(b) For the portion of the total grant amount for which services are contracted,

the intermediate district or consortium of intermediate districts receiving the grant

may retain an amount equal to not more than 4% of that portion of the grant amount and

the subrecipients engaged by the intermediate district to provide program services may

retain for administrative services an amount equal to not more than 4% of that portion

of the grant amount.

(10) An intermediate district or consortium of intermediate districts may expend

not more than 2% of the total grant amount for outreach, recruiting, and public

awareness of the program.

(11) Each grant recipient shall enroll children identified under subsection

(5)(b) according to how far the child's household income is below 250% of the federal

poverty level by ranking each applicant child's household income from lowest to

highest and dividing the applicant children into quintiles based on how far the

child's household income is below 250% of the federal poverty level, and then

enrolling children in the quintile with the lowest household income before enrolling

children in the quintile with the next lowest household income until slots are

completely filled. If the grant recipient determines that all eligible children are

being served and that there are no children on the waiting list under section 39(1)(d)

who live with families with a household income that is equal to or less than 250% of

the federal poverty level, the grant recipient may then enroll children who live with

families with a household income that is equal to or less than 300% of the federal

poverty level. The enrollment process shall consider income and risk factors, such

that children determined with higher need are enrolled before children with lesser

need. For purposes of this subdivision, all age-eligible children served in foster

care or who are experiencing homelessness or who have individualized education plans

recommending placement in an inclusive preschool setting shall be considered to live

with families with household income equal to or less than 250% of the federal poverty

level regardless of actual family income AND BE PRIORITIZED WITHIN THE LOWEST QUINTILE

FOR ENROLLMENT.

(12) An intermediate district or consortium of intermediate districts receiving a

grant under this section shall allow parents of eligible children who are residents of

the intermediate district or within the consortium to choose a program operated by or

contracted with another intermediate district or consortium of intermediate districts

and shall ~~pay to the educating intermediate district or consortium the per-child~~

~~amount attributable to each child enrolled pursuant to this sentence, as determined~~

~~under section 39~~ ENTER INTO A WRITTEN AGREEMENT, IN A MANNER PRESCRIBED BY THE

DEPARTMENT.

(13) An intermediate district or consortium of intermediate districts receiving a

grant under this section shall conduct a local process to contract with interested and

eligible public and private for-profit and nonprofit community-based providers that

meet all requirements of subsection (4) for at least 30% of its total slot allocation.

The intermediate district or consortium shall report to the department, in a manner

prescribed by the department, a detailed list of community-based providers by provider

type, including private for-profit, private nonprofit, community college or

university, head start grantee or delegate, and district or intermediate district, and

the number and proportion of its total slot allocation allocated to each provider as

subrecipient. If the intermediate district or consortium is not able to contract for

at least 30% of its total slot allocation, the grant recipient shall notify the

department and, if the department verifies that the intermediate district or

consortium attempted to contract for at least 30% of its total slot allocation and was

not able to do so, then the intermediate district or consortium may retain and use all

of its allocated slots as provided under this section. To be able to use this

exemption, the intermediate district or consortium shall demonstrate to the department

that the intermediate district or consortium increased the percentage of its total

slot allocation for which it contracts with a community-based provider and the

intermediate district or consortium shall submit evidence satisfactory to the

department, and the department must be able to verify this evidence, demonstrating

that the intermediate district or consortium took measures to contract for at least

30% of its total slot allocation as required under this subsection, including, but not

limited to, at least all of the following measures:

(a) The intermediate district or consortium notified each NONPARTICIPATING

licensed child care center located in the service area of the intermediate district or

consortium ~~at least twice~~ regarding the center's eligibility to participate, ~~One of~~

~~these notifications may be made electronically, but at least 1 of these notifications~~

~~shall be made via hard copy through the United States mail. At least 1 of these~~

~~notifications shall be made within 7 days after the intermediate district or~~

~~consortium receives notice from the department of its slot allocations.~~ IN A MANNER

PRESCRIBED BY THE DEPARTMENT.

(b) The intermediate district or consortium provided to each NONPARTICIPATING

licensed child care center located in the service area of the intermediate district or

consortium information regarding great start readiness program requirements and a

description of the application and selection process for community-based providers.

participating families a list of community-based great start readiness program

subrecipients with a great start to quality rating of at least 3 stars.

(14) If an intermediate district or consortium of intermediate districts

receiving a grant under this section fails to submit satisfactory evidence to

demonstrate its effort to contract for at least 30% of its total slot allocation, as

required under subsection (1), the department shall reduce the slots allocated to the

intermediate district or consortium by a percentage equal to the difference between

the percentage of an intermediate district's or consortium's total slot allocation

awarded to community-based providers and 30% of its total slot allocation.

(15) In order to assist intermediate districts and consortia in complying with

the requirement to contract with community-based providers for at least 30% of their

total slot allocation, the department shall do all of the following:

(a) Ensure that a great start resource center or the department provides each

intermediate district or consortium receiving a grant under this section with the

contact information for each licensed child care center located in the service area of

the intermediate district or consortium by March 1 of each year.

(b) Provide, or ensure that an organization with which the department contracts

provides, a community-based provider with a validated great start to quality rating

within 90 days of the provider's having submitted a request and self-assessment.

university, head start grantee or delegate, private for-profit, and private nonprofit

providers are subject to a single great start to quality rating system. The rating

system shall ensure that regulators process all prospective providers at the same pace

on a first-come, first-served basis and shall not allow 1 type of provider to receive

a great start to quality rating ahead of any other type of provider.

(d) Not later than ~~November~~ DECEMBER 1 of each year, compile the results of the

information reported by each intermediate district or consortium under subsection (10)

and report to the legislature a list by intermediate district or consortium with the

number and percentage of each intermediate district's or consortium's total slot

allocation allocated to community-based providers by provider type, including private

for-profit, private nonprofit, community college or university, head start grantee or

delegate, and district or intermediate district.

(16) 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 eligibility criteria under subsection (5)(b) and the

total number of children participating in the program. For children participating in

the program who meet the income 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 health and 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.

(17) 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) "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.

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.

(18) An intermediate district or consortium of intermediate districts receiving

funds under this section shall establish a sliding scale of tuition rates based upon

household income for children participating in an eligible great start readiness

program who live with families with a household income that is more than 250% of the

federal poverty level to be used by all of its providers, as approved by the

department. A grant recipient shall charge tuition according to that sliding scale of

tuition rates on a uniform basis for any child who does not meet the income

eligibility requirements under this section.

(19) From the amount appropriated in subsection (1), there is allocated an amount

not to exceed $10,000,000.00 for reimbursement of transportation costs for children

attending great start readiness programs funded under this section. To receive

reimbursement under this subsection, not later than November 1, ~~2015~~ 2016, a program

funded under this section that provides transportation shall submit to the

intermediate district that is the fiscal agent for the program a projected

transportation budget. The amount of the reimbursement for transportation under this

subsection shall be no more than the projected transportation budget or $150.00

multiplied by the number of slots funded for the program under this section. If the

amount allocated under this subsection is insufficient to fully reimburse the

transportation costs for all programs that provide transportation and submit the

required information, the reimbursement shall be prorated in an equal amount per slot

funded. Payments shall be made to the intermediate district that is the fiscal agent

for each program, and the intermediate district shall then reimburse the program

provider for transportation costs as prescribed under this subsection.

Sec. 32p. (1) From the school aid fund appropriation in section 11, there is

allocated an amount not to exceed $13,400,000.00 to intermediate districts for ~~2015-~~

~~2016~~ 2016-2017 for the purpose of providing early childhood funding to intermediate

school districts to support the activities under subsection (2) and subsection (4),

and to provide early childhood programs for children from birth through age 8. The

funding provided to each intermediate district under this section shall be determined

by the distribution formula established by the department's office of great start to

provide equitable funding statewide. In order to receive funding under this section,

each intermediate district shall provide an application to the office of great start

not later than September 15 of the immediately preceding fiscal year indicating the

activities planned to be provided.

(2) Each intermediate district or consortium of intermediate districts that

receives funding under this section shall convene a local great start collaborative

and a parent coalition. The goal of each great start collaborative and parent

coalition shall be to ensure the coordination and expansion of local early childhood

infrastructure and programs that allow every child in the community to achieve the

following outcomes:

(a) Children born healthy.

(b) Children healthy, thriving, and developmentally on track from birth to third

grade.

entry.

(d) Children prepared to succeed in fourth grade and beyond by reading

proficiently by the end of third grade.

(3) Each local great start collaborative and parent coalition shall convene

workgroups to make recommendations about community services designed to achieve the

outcomes described in subsection (2) and to ensure that its local great start system

includes the following supports for children from birth through age 8:

(a) Physical health.

(b) Social-emotional health.

(d) Parent education.

(e) Early education and care.

(4) From the funds allocated in subsection (1), at least $2,500,000.00 shall be

used for the purpose of providing home visits to at-risk children and their families.

The home visits shall be conducted as part of a locally coordinated, family-centered,

evidence-based, data-driven home visit strategic plan that is approved by the

department. The goals of the home visits funded under this subsection shall be to

improve school readiness, reduce the number of pupils retained in grade level, and

reduce the number of pupils requiring special education services. The department shall

coordinate the goals of the home visit strategic plans approved under this subsection

with other state agency home visit programs in a way that strengthens Michigan's home

visiting infrastructure and maximizes federal funds available for the purposes of at-

risk family home visits.

(5) Not later than December 1 of each year, each intermediate district shall

provide a report to the department detailing the activities actually provided during

the immediately preceding school year and the families and children actually served.

At a minimum, the report shall include an evaluation of the services provided with

additional funding under subsection (4) for home visits, using the goals identified in

subsection (4) as the basis for the evaluation, including the degree to which school

readiness was improved, any change in the number of pupils retained at grade level,

and any change in the number of pupils receiving special education services. The

department shall compile and summarize these reports and submit its summary to the

house and senate appropriations subcommittees on school aid and to the house and

senate fiscal agencies not later than February 15 of each year.

(6) An intermediate district or consortium of intermediate districts that

receives funding under this section may carry over any unexpended funds received under

this section into the next fiscal year and may expend those unused funds through June

30 of 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. 35. (1) The funds allocated under section 35a shall be used for programs to

ensure children are reading at grade level by the end of grade 3. The superintendent

shall designate staff or contracted employees funded under section 35a as critical

shortage. Programs funded under section 35a are intended to ensure that this state

will be in the top 10 most improved states in grade 4 reading proficiency by the 2019

National Assessment of Educational Progress (NAEP) and will be in the top 10 states

overall in grade 4 reading proficiency by 2025.

(2) From the general fund appropriation in section 11, there is allocated to the

department an amount not to exceed $1,000,000.00 for ~~2015-2016~~ 2016-2017 for

implementation costs associated with programs funded under section 35a.

~~(3) From the amount allocated under subsection (2), there is allocated an amount~~

~~not to exceed $100,000.00 for the purpose of performing an evaluation of the pilot~~

~~programs under section 35a(2) in a manner approved by the department. The evaluation~~

~~report shall include at least all of the following:~~

~~(a) A description of the components of the pilot programs that were effective in~~

~~helping parents prepare their children for success in school.~~

~~(b) A description of any barriers that parents and their children encountered~~

~~that prevented them from participating in the pilot programs.~~

~~(c) An assessment of whether these pilot programs should be expanded to other~~

~~locations in the state.~~

Sec. 35a. (1) From the appropriations in section 11, there is allocated for ~~2015-~~

~~2016~~ 2016-2017 for the purposes of this section an amount not to exceed ~~$23,900,000.00~~

~~from the state school aid fund appropriation and an amount not to exceed $1,500,000.00~~

~~from the general fund appropriation~~ $22,900,000.00.

~~(2) From the allocations under subsection (1), there is allocated an amount not~~

~~to exceed $1,000,000.00 for 2015-2016 for the purpose of conducting parent education~~

~~pilot programs for parents of children less than 4 years of age so that children are~~

~~developmentally ready to succeed in school at the time of school entry. All of the~~

~~following apply to programs funded under this subsection:~~

~~(a) The department shall develop a competitive application process and method of~~

~~grant distribution consistent with the provisions of this subsection. The amount of a~~

~~grant award to a pilot program shall be an amount equal to the number of children~~

~~residing in the district or consortium of districts operating the program who are~~

~~younger than 4 years of age as of the date specified for determining a child's~~

~~eligibility to attend school under section 1147 of the revised school code, MCL~~

~~380.1147, multiplied by $120.00 per child or $130,000.00, whichever is less. The~~

~~department shall ensure that grants are awarded in each prosperity region or~~

~~subregion.~~

~~(b) An application for a competitive grant under this subsection shall be~~

~~submitted by an intermediate district on behalf of a district or consortium of~~

~~districts within the intermediate district. The application shall be submitted in a~~

~~form and manner approved by the department and shall contain at least the following~~

~~components:~~

~~(i) A description of the program design including the names of the district or~~

~~consortium of districts that will operate the program, the physical location of the~~

~~program, and the anticipated number of families that will be served.~~

~~(ii) An assurance that the program will be supervised by a teacher who has a~~

~~valid teaching certificate with an early childhood (ZA or ZS) endorsement, a valid~~

~~teaching certificate in career education with both a KH and VH endorsement, a~~

~~bachelor's degree in child development or early child development, or a bachelor's~~

~~degree related to adult learning.~~

~~(iii) An estimate of the number of families residing in the district or~~

~~consortium of districts that will operate the pilot program that have at least 1 child~~

~~less than 4 years of age as of the date specified for determining a child's~~

~~eligibility to attend school under section 1147 of the revised school code, MCL~~

~~380.1147.~~

~~(iv) A description of the public awareness and outreach efforts that will be~~

~~made.~~

~~(v) An assurance that the intermediate district and the district or consortium of~~

~~districts operating the program will provide information in a form and manner as~~

~~approved by the department to allow for an evaluation of the pilot projects.~~

~~(vi) A description of the sliding fee scale that will be established for tuition,~~

~~with fees reduced or waived for those unable to pay.~~

~~(vii) A budget for the program. A program may use not more than 5% of a grant to~~

~~administer the program.~~

~~(c) To be eligible for a grant under this subsection, a program shall provide at~~

~~least 2 hours per week throughout the school year for parents and their eligible~~

~~children to participate in parent education programs and meet at least the following~~

~~minimum requirements:~~

~~(i) Require that parents be physically present in classes with their children or~~

~~be in concurrent classes.~~

~~(ii) Use research-based information to educate parents about the physical,~~

~~cognitive, social, and emotional development of children.~~

~~(iii) Provide structured learning activities requiring interaction between~~

~~children and their parents.~~

~~(iv) Provide structured learning activities for children that promote positive~~

~~interaction with their peers.~~

~~(d) For a child to be eligible to participate in a program under this subsection,~~

~~the child shall be less than 4 years of age as of the date specified for determining a~~

~~child's eligibility to attend school under section 1147 of the revised school code,~~

~~MCL 380.1147.~~

(2) ~~(3)~~ From the allocations under subsection (1), there is allocated an amount

not to exceed $950,000.00 for ~~2015-2016~~ 2016-2017 for professional development

purposes under this subsection. This allocation represents the ~~first~~ SECOND of 2 years

of funding for the purposes of this subsection. All of the following apply to funding

under this subsection:

(a) The department shall award grants to districts to support professional

development for educators in a department-approved research-based training program

related to current state literacy standards for pupils in grades K to 3. The

professional development shall also include training in the use of screening and

diagnostic tools, progress monitoring, and intervention methods used to address

barriers to learning and delays in learning that are diagnosed through the use of

these tools. The department shall determine the amount of the grant awards.

(b) In addition to other methods of professional development delivery, the

department shall collaborate with the Michigan Virtual University to provide this

training online to all educators of pupils in grades K to 3.

and any unexpended funds for ~~2015-2016~~ 2016-2017 are carried forward into ~~2016-2017~~

2017-2018. The purpose of the work project is to continue to implement the

professional development training described in this subsection. The estimated

completion date of the work project is September 30, ~~2017~~ 2018.

(3) ~~(4)~~ From the allocations under subsection (1), there is allocated an amount

not to exceed $1,450,000.00 for ~~2015-2016~~ 2016-2017 for grants under this subsection.

This allocation represents the ~~first~~ SECOND of 2 years of funding. All of the

following apply to grants under this subsection:

(a) The department shall award grants to districts to administer department-

approved screening and diagnostic tools to monitor the development of early literacy

and early reading skills of pupils in grades K to 3 and to support research-based

professional development for educators in administering screening and diagnostic tools

and in data interpretation of the results obtained through the use of those tools for

the purpose of implementing a multi-tiered system of support to improve reading

proficiency among pupils in grades K to 3. The department shall award grants to

eligible districts in an amount determined by the department.

(b) In addition to other methods of professional development delivery, the

department shall collaborate with the Michigan Virtual University to provide this

training online to all educators of pupils in grades K to 3.

and any unexpended funds for ~~2015-2016~~ 2016-2017 are carried forward into ~~2016-2017~~

2017-2018. The purpose of the work project is to continue to implement the

professional development training described in this subsection. The estimated

completion date of the work project is September 30, ~~2017~~ 2018.

(4) ~~(5)~~ From the allocations under subsection (1), there is allocated an amount

not to exceed $3,000,000.00 FOR 2016-2017 for the purpose of providing early literacy

coaches at intermediate districts to assist teachers in developing and implementing

instructional strategies for pupils in grades K to 3 so that pupils are reading at

grade level by the end of grade 3. All of the following apply to funding under this

subsection:

(a) The department shall develop an application process consistent with the

provisions of this subsection. An application shall provide assurances that literacy

coaches funded under this subsection are knowledgeable about at least the following:

(i) Current state literacy standards for pupils in grades K to 3.

(ii) Implementing an instructional delivery model based on frequent use of

formative, screening, and diagnostic tools, known as a multi-tiered system of support,

to determine individual progress for pupils in grades K to 3 so that pupils are

reading at grade level by the end of grade 3.

(iii) The use of data from diagnostic tools to determine the necessary additional

supports and interventions needed by individual pupils in grades K to 3 in order to be

reading at grade level.

(b) From the allocation under this subsection, the department shall award grants

to intermediate districts for the support of early literacy coaches. An intermediate

district must provide matching funds for at least 50% of the cost of the literacy

coach. The department shall provide this funding in the following manner:

(i) Each intermediate district shall be awarded grant funding to support the cost

of 1 early literacy coach in an equal amount per early literacy coach, not to exceed

$37,500.00.

(ii) After distribution of the grant funding under subparagraph (i), the

department shall distribute the remainder of grant funding for additional early

literacy coaches in an amount not to exceed $37,500.00 per early literacy coach. The

number of funded early literacy coaches for each intermediate district shall be based

on the percentage of the total statewide number of pupils in grades K to 3 who meet

the income eligibility standards for the federal free and reduced-price lunch programs

who are enrolled in districts in the intermediate district. For each additional early

literacy coach funded under this subparagraph, the department shall not make an award

to an intermediate district under this subparagraph in an amount that is less than the

amount necessary to pay 1/2 of the total cost of that additional early literacy coach.

and any unexpended funds for ~~2015-2016~~ 2016-2017 are carried forward into ~~2016-2017~~

2017-2018. The purpose of the work project is to continue to provide early literacy

coaches as described in this subsection. The estimated completion date of the work

project is September 30, ~~2017~~ 2018.

(5) ~~(6)~~ From the allocations under subsection (1), there is allocated an amount

not to exceed $17,500,000.00 for ~~2015-2016~~ 2016-2017 to districts that provide

additional instructional time to those pupils in grades K to 3 who have been

identified by using department-approved screening and diagnostic tools as needing

additional supports and interventions in order to be reading at grade level by the end

of grade 3. Additional instructional time may be provided before, during, and after

regular school hours or as part of a year-round balanced school calendar. All of the

following apply to funding under this subsection:

(a) In order to be eligible to receive funding, a district shall demonstrate to

the satisfaction of the department that the district has done all of the following:

(i) Implemented a multi-tiered system of support instructional delivery model

that is an evidence-based model that uses data-driven problem solving to integrate

academic and behavioral instruction and that uses intervention delivered to all pupils

in varying intensities based on pupil needs. The multi-tiered system of supports must

provide at least all of the following essential elements:

(A) Implements effective instruction for all learners.

(B) Intervenes early.

the following:

(I) a A core curriculum and classroom interventions available to all pupils that

meet the needs of most pupils;.

(II) ~~targeted~~ TARGETED group interventions;.

(III)~~and intense~~ INTENSE individual interventions.

(D) Monitors pupil progress to inform instruction.

(E) Uses data to make instructional decisions.

(F) Uses assessments including universal screening, diagnostics, and progress

monitoring.

(G) Engages families and the community.

(H) Implements evidence-based, scientifically validated, instruction and

intervention.

(I) Implements instruction and intervention practices with fidelity.

(J) Uses a collaborative problem-solving model.

(ii) Used department-approved research-based diagnostic tools to identify

individual pupils in need of additional instructional time.

(iii) Used a reading instruction method that focuses on the 5 fundamental

building blocks of reading: phonics, phonemic awareness, fluency, vocabulary, and

comprehension and content knowledge.

(iv) Provided teachers of pupils in grades K to 3 with research-based

professional development in diagnostic data interpretation.

(b) Funding allocated under this subsection shall be distributed to eligible

districts by multiplying the number of full-time-equivalent pupils in grade 1 in the

district by $165.00.

the payments under this subsection, payments under this subsection shall be prorated

on an equal per-pupil basis based on grade 1 pupils.

~~(7) From the general fund money allocated in subsection (1), the department shall~~

~~allocate the amount of $1,000,000.00 for 2015-2016 to the Michigan Education Corps.~~

~~All of the following apply to funding under this subsection:~~

~~(a) By August 1, 2016, the Michigan Education Corps shall provide a report~~

~~concerning its use of the funding to the senate and house appropriations subcommittees~~

~~on state school aid, the senate and house fiscal agencies, and the senate and house~~

~~caucus policy offices on outcomes and performance measures of the Michigan Education~~

~~Corps, including, but not limited to, the degree to which the Michigan Education~~

~~Corps's replication of the Michigan Reading Corps program is demonstrating sufficient~~

~~efficacy and impact. The report must include data pertaining to at least all of the~~

~~following:~~

~~(i) The current impact of the Michigan Reading Corps on this state in terms of~~

~~numbers of children and programs receiving support. This portion of the report shall~~

~~specify the number of children tutored, including dosage and completion, and the~~

~~demographics of those children.~~

~~(ii) Whether the assessments and interventions are implemented with fidelity.~~

~~This portion of the report shall include details on the total number of assessments~~

~~and interventions completed and the range, median, mean, and standard deviation for~~

~~all assessments.~~

~~(iii) Whether the literacy improvement of children participating in the Michigan~~

~~Reading Corps is consistent with expectations. This portion of the report shall detail~~

~~at least all of the following:~~

~~(A) Growth rate by grade level, in comparison to targeted growth rate.~~

~~(B) Average linear growth rates.~~

~~(C) Exit rates.~~

~~(D) Percentage of children who exit who also meet or exceed spring benchmarks.~~

~~(iv) The impact of the Michigan Reading Corps on organizations and stakeholders,~~

~~including, but not limited to, school administrators, internal coaches, and AmeriCorps~~

~~members.~~

~~(b) If the department determines that the Michigan Education Corps has misused~~

~~the funds allocated under this subsection, the Michigan Education Corps shall~~

~~reimburse this state for the amount of state funding misused.~~

~~(8) From the general fund money allocated under subsection (1), there is~~

~~allocated to the department an amount not to exceed $500,000.00 for 2015-2016 for the~~

~~adoption of a certification test to ensure that all newly certificated elementary~~

~~teachers have the skills to deliver evidence-based literacy instruction.~~

Sec. 39. (1) An eligible applicant receiving funds under section 32d shall submit

an application, in a form and manner prescribed by the department, by a date specified

by the department in the immediately preceding state fiscal year. The application

shall include a comprehensive needs assessment using aggregated data from the

applicant's entire service area and a community collaboration plan 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.

~~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 SLOTS WHICH WILL REMAIN UNFILLED AND children who

meet the criteria of section 32d who will remain unserved after the applicant and

community early childhood programs have met their funded enrollments. The applicant

shall maintain a waiting list of identified unserved eligible children who would be

served when openings are available.

(2) After notification of funding allocations, an applicant receiving funds under

section 32d shall also submit an implementation plan for approval, in a form and

manner prescribed by the department, by a date specified by the department, that

details how the 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 applicant in the

following manner: 1/2 of the percentage of the 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 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 applicant under

section 32d shall be determined by multiplying the number of ~~children~~ SLOTS determined

by the formula under subsection (3) or the number of ~~children~~ SLOTS the applicant

indicates it will be able to ~~serve~~ FILL under subsection (1)(c), whichever is less, by

$3,625.00 and shall be distributed among applicants in decreasing order of

concentration of eligible children as determined by the formula under subsection (3).

If the number of ~~children~~ SLOTS an applicant indicates it will be able to ~~serve~~ FILL

under subsection (1)(c) includes children able to be served in a school-day program,

then the ~~number able to be served in~~ SLOTS FOR a school-day program shall be doubled

for the purposes of making this calculation of the lesser of the number of ~~children~~

SLOTS determined by the formula under subsection (3) and the number of ~~children~~ SLOTS

the applicant indicates it will be able to ~~serve~~ FILL under subsection (1)(c) and

determining the amount of the initial allocation to the 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 applicants under section 32d remain after the

initial allocation under subsection (4), the allocation under this subsection shall be

distributed to each eligible 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~~ SLOTS in each

district within the applicant's service area ~~served~~ FILLED in the immediately

preceding fiscal year or the number of ~~children~~ SLOTS the applicant indicates it will

be able to ~~serve~~ FILL under subsection (1)(c), whichever is less, minus the number of

~~children~~ SLOTS for which the applicant received funding in subsection (4) by

$3,625.00.

(6) If funds allocated for eligible applicants under section 32d remain after the

allocations under subsections (4) and (5), remaining funds shall be distributed to

each eligible 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~~ SLOTS the applicant indicates it will be able to ~~serve~~ FILL under subsection

(1)(c) exceeds the number of ~~children~~ SLOTS 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~~ SLOTS the applicant indicates it will be able to

~~serve~~ FILL under subsection (1)(c) less the number of ~~children~~ SLOTS for which funds

have been received under subsections (4) and (5) by $3,625.00 until the funds

allocated for eligible applicants in section 32d are distributed.

~~(7) An applicant that offers supplementary child care funded by funds other than~~

~~those received under 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 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.~~

(7) ~~(8)~~ If, taking into account the total amount to be allocated to the applicant

as calculated under this section, 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 applicant may include additional eligible children but

shall not receive additional funding under section 32d for those children.

Sec. 39a. (1) From the federal funds appropriated in section 11, there is

allocated for ~~2015-2016~~ 2016-2017 to districts, intermediate districts, and other

eligible entities all available federal funding, estimated at ~~$779,076,400.00~~

$821,939,900.00 for the federal programs under the no child left behind act of 2001,

Public Law 107-110 OR THE EVERY STUDENT SUCCEEDS ACT OF 2015, PUBLIC LAW 114-95. These

funds are allocated as follows:

(a) An amount estimated at ~~$5,000,000.00~~ $2,000,000.00 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 $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.

limited English proficient (LEP) children, funded from DED-OESE, language acquisition

state grant funds.

(d) An amount estimated at ~~$10,286,500.00~~ $250,000.00 for the Michigan charter

school subgrant program, funded from DED-OESE, charter school funds.

(e) An amount estimated at $3,000,000.00 for rural and low income schools, funded

from DED-OESE, rural and low income school funds.

(f) An amount estimated at $565,000,000.00 to provide supplemental programs to

enable educationally disadvantaged children to meet challenging academic standards,

funded from DED-OESE, title I, disadvantaged children funds.

(g) An amount estimated at $8,878,000.00 for the purpose of identifying and

serving migrant children, funded from DED-OESE, title I, migrant education funds.